SaskTel Release Risk Assessment Report
Press Release
June 20, 2016
SaskTel today released its high level risk assessment report regarding the potential impacts the BCE/MTS transaction may have on SaskTel. The review was completed by Mark H. Goldberg & Associates Inc., an independent third party.
The analysis of the risks for SaskTel, which are identified in the report, will become part of the strategic planning process that SaskTel undertakes annually. As part of that process, the Corporation also develops strategies to mitigate identified risks.
“The report provides an excellent high level assessment of the potential impacts this transaction may have on SaskTel,” said Ron Styles, SaskTel President and CEO. “It is also worth noting that some of the risks in the report are not new to the corporation; however, those risks may increase due to this acquisition.”
The following are the key risks that are outlined in detail in the report, which can be found in its entirety at www.sasktel.com/about-us/company-info:
- The possibility that reduced numbers of facilities-based carriers in Manitoba could lead Federal government policy makers to create incentives for additional wireless competition to develop through lower costs for new entrant spectrum or other measures. Such measures could reduce the costs for competitors and increase costs or restrict capacity expansion for SaskTel.
- The further concentration of the market in Manitoba could see removal of the four carriers objective by the Federal government, possibly enabling Shaw to sell its acquired WIND Mobile business or partner with other telecoms. If Shaw launches a competitive mobile service, there is a risk that SaskTel’s consumer communications services will face significant pressure from a second bundled service package in Saskatchewan.
- There is a risk the establishment of Winnipeg as a western headquarters for Bell could lead to an erosion of SaskTel’s share of the Saskatchewan business market.
- There is a risk that Rogers will look to replace its lost partnership with MTS by developing retail partnerships with cable companies in Manitoba and Saskatchewan. This would improve the competitive positions of Rogers, as well as local cable companies.
- For the reasons identified in the report, there is a risk that SaskTel’s net income will be unable to support the level of dividends that have been returned to the province in recent years.
Styles added, “SaskTel has been extremely successful in the highly competitive communications industry for decades and we will continue to work hard to develop and implement a successful strategic business plan that meets the needs of Saskatchewan residents.”
About SaskTel
SaskTel is the leading Information and Communications Technology (ICT) provider in Saskatchewan, with over $1.2 billion in annual revenue and approximately 1.4 million customer connections including over 614,000 wireless accesses, 404,000 wireline network accesses, 266,000 Internet accesses and 107,000 maxTV™ subscribers. SaskTel and its wholly-owned subsidiaries offer a wide range of ICT products and services including competitive voice, data and Internet services, wireless data services, maxTV services, data centre services, cloud-based services, security monitoring services, advertising services, and international software and consulting services. SaskTel and its wholly-owned subsidiaries have a workforce of approximately 4,000 full-time equivalent employees (FTEs). Visit SaskTel at www.sasktel.com.
For media inquiries only, please contact:
Darcee MacFarlane, Vice-President, Corporate and Government Relations
Phone: 306.777.4441
Email: darcee.macfarlane@sasktel.com
IBF3
