A recent report published by the Conference Board of Canada suggests that 2010 may prove to be a difficult year for Canada’s telecommunications providers. While Canada’s IT services industry survived the recession relatively unscathed, rising costs and weak price increases may limit future profit growth.
“New products, such as smartphones and digital TV, and the growing use of wireless services helped the telecom industry through the recession,” said Maxim Armstrong, an Economist with the Conference Board.
“As the economy rebounds, growth in demand for industry services will accelerate. However, competition will limit price increases for both telecoms and computer services firms. New entrants into the Canadian wireless market are also forcing telephone service providers to control escalating costs and make investments in new technologies.”
Learn more about the Conference Board report from The Toronto Star and Newswire.