Canada’s major telecom operators are grappling with their weakest mobile subscriber growth in four years, a slump they attribute directly to the federal government’s tightening of immigration policy. According to financial results released this quarter, BCE, Rogers Communications, and Telus collectively added just 54,000 net mobile subscribers—the lowest figure since the onset of the COVID-19 pandemic.
For years, Canada’s telcos have relied heavily on new arrivals to fuel their customer base. International students, temporary workers, and newly landed immigrants have consistently driven strong six-figure subscriber increases each quarter. That trend, however, is rapidly changing.
In response to mounting pressure on public services such as healthcare and housing, the Canadian government has made a decisive shift in immigration targets for 2025. The number of new permanent residents has been capped at 395,000—a 21% reduction compared to 2024. Similarly, international student admissions are expected to drop by 10% to around 305,900, while the intake of temporary foreign workers is being cut by 16% to 367,750.
The policy pivot, designed to reduce strain on national infrastructure, has had an immediate ripple effect on the telecom industry. Without the steady influx of newcomers, the pool of potential mobile service customers has shrunk dramatically.
This shift has been particularly damaging for BCE and Rogers, both of which are dealing with growing debt burdens and declining revenues. BCE responded to its financial pressures by slashing its dividend by 56%—the first time it has reduced shareholder payouts since 2009. Stock prices for both companies have also fallen to decade lows, signaling investor unease over the uncertain subscriber growth outlook.
While the long-term impact of the immigration reforms remains to be seen, industry analysts warn that telecom operators will need to adjust their growth strategies. Reliance on population growth through immigration has been a cornerstone of their business model. With that pillar weakening, telcos may be forced to turn their focus inward—improving customer retention, boosting average revenue per user, or investing in new digital services.
As Canada’s demographic dynamics shift, the country’s telecom giants must now navigate an evolving landscape without the growth cushion that high immigration levels once provided.
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