Telcos Point to Immigration Policies as Key Factor in Sluggish Subscriber Growth
Canadian Telecom Struggles Linked to immigration Changes
Subscriber Growth Declines
The major telecom companies in Canada are pointing to immigration policies as a reason for their slow subscriber growth.Bell, Rogers, and Telus reported fewer then 54,000 new mobile subscribers in the first quarter of the year. this figure marks the lowest growth rate seen in four years.
Government Policy Adjustments
In October, former Prime Minister Justin Trudeau announced a meaningful cut of about 20% in the number of permanent residents allowed into Canada for 2025 and 2026. During the COVID-19 pandemic,Canada had welcomed many immigrants to help fill labor shortages. However, Trudeau admitted that his government did not find the right balance last year due to pressures on housing and healthcare systems from a growing population.
Impact on subscriber Numbers
With fewer newcomers entering Canada, it is logical that this would lead to slower growth in mobile subscriptions. Additionally,it’s significant to note that telecom providers have been increasing their prices recently. Higher costs could deter potential customers from signing up for new services.
Pricing Strategies Affecting Market Dynamics
Quebecor, which operates Freedom Mobile and Videotron, reported gaining 54,000 new wireless customers during Q1 2025—almost half of all new activations across Canada during this period. This increase was largely due to Freedom Mobile offering lower prices compared to its competitors. While immigration changes may play a role in subscriber numbers, pricing strategies appear crucial as well.
Future Immigration Plans under New Leadership
Mark Carney has taken over as Prime Minister and has indicated plans for continued limits on immigration levels. Shortly after his election victory, Carney stated one of his main goals is reducing immigration rates back down to “sustainable levels.” He aims to cap temporary workers and international students at five percent of Canada's total population by 2028; currently set at 7.3 percent.
Conclusion
The challenges faced by Canadian telecom companies highlight how interconnected various factors can be—from government policies on immigration affecting market dynamics—to pricing strategies influencing consumer behavior.
