Comparisons to Industry Averages and a Close Competitor
We chose to compare Telus to Rogers because both companies are part of the “Big 3” telecom organizations in Canada (Bell being the largest of the three). Although Telus and Rogers are similar in size, they are slightly different in terms of market share and subscribers. In fact, according to the Canadian Radio-television and Telecommunications Commission, Telus has a market share of 28% and Rogers has 33% in the wireless subscription market in 2013 (CRTC, 2015). Moreover, Telus currently has 8.4 million subscribers, while Rogers has 9.9 million subscribers. Despite the difference in subscriber count, Telus and Rogers consolidated financial data were very similar in 2015.
Note. Refer to Table 4 for calculations of averages and percentages when examining comparisons All dollar value amounts are in millions (USD)
In terms of operating revenue, Telus’ revenue is $9,016 whereas the industry average is $9,650. This results in Telus being in close proximity to the industry average, thus implying that it is on par with its competitors. Also, even though Telus and Rogers have a difference in market share by 5% and subscribers by 1.5 million, their operating revenues are closely similar ($9,016 and $9,766 respectively). Based on our findings, Telus appears to be a suitable investment. In …show more content…
By improving their products and services, “industry players that operate widespread, reliable and robust networks will be able to charge a premium for their services” (Petrillo, 2016). As the market leaders maintain their dominant market shares, it would be difficult for new competitors to remain in the industry due to “the capital-intensive nature of operating nationally [which] will likely limit national competition to the industry’s largest three carriers” (Petrillo,
We chose to compare Telus to Rogers because both companies are part of the “Big 3” telecom organizations in Canada (Bell being the largest of the three). Although Telus and Rogers are similar in size, they are slightly different in terms of market share and subscribers. In fact, according to the Canadian Radio-television and Telecommunications Commission, Telus has a market share of 28% and Rogers has 33% in the wireless subscription market in 2013 (CRTC, 2015). Moreover, Telus currently has 8.4 million subscribers, while Rogers has 9.9 million subscribers. Despite the difference in subscriber count, Telus and Rogers consolidated financial data were very similar in 2015.
Note. Refer to Table 4 for calculations of averages and percentages when examining comparisons All dollar value amounts are in millions (USD)
In terms of operating revenue, Telus’ revenue is $9,016 whereas the industry average is $9,650. This results in Telus being in close proximity to the industry average, thus implying that it is on par with its competitors. Also, even though Telus and Rogers have a difference in market share by 5% and subscribers by 1.5 million, their operating revenues are closely similar ($9,016 and $9,766 respectively). Based on our findings, Telus appears to be a suitable investment. In …show more content…
By improving their products and services, “industry players that operate widespread, reliable and robust networks will be able to charge a premium for their services” (Petrillo, 2016). As the market leaders maintain their dominant market shares, it would be difficult for new competitors to remain in the industry due to “the capital-intensive nature of operating nationally [which] will likely limit national competition to the industry’s largest three carriers” (Petrillo,