Is Bell Canada A Good Stock To Buy Right Now?

Bell Canada (TSX: BCE, NYSE: BCE) is the second largest telecommunications company in Canada. With dual listing in Toronto Stock Exchange (TSX) and New York Stock Exchange (NYSE), BCE is the second largest telecommunications company in Canada, with over 9 million combined prepaid and postpaid subscribers as of December 31, 2020. BCE shares listed in the NYSE have gained 23.3% over the past year, and 6.1% year-to-date. Following the release of the company’s impressive earnings report which surpassed analyst expectations, BCE has gained 3.9% over the past month. 

BCE and 5G – First Mover Advantage 

The telecom giant is at the forefront in the 5G race prevailing in the Canadian markets. It launched the largest 5G wireless network in Canada in June 2020, with availability across four cities. The company’s 5G coverage is 6 times greater than its existing LTE coverage and is compatible with a wide range of 5G enabled smartphones. Moreover, BCE has partnered with equipment manufacturing companies Nokia Corporation and Ericsson to expand its network to the remote areas in the country. It also partnered with Western University to research and the applications of the next generation technology across agriculture, manufacturing, and transportation industries, among others. 

In addition to these developments, BCE has committed C$1-C$1.20 billion investment to double its existing 5G network over the next two years. The company aims to add up to 900,000 wireless and fiber rural home internet network connections over this period. The company’s 5G investment is on top of its annual spending amount of C$4 billion. BCE’s hefty investments in the budding 5G space should allow it to cement its position as a leading player in the highly competitive economy. 

Also, BCE’s investments are expected to be backed by Federal and State governments, as its 5G portfolio and projected infrastructure investments are expected to contribute approximately C$2 billion annually towards the GDP of the country. 

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Disclaimer: All the information in this article - is published in good faith and for general information purpose only. Hashtag Investing does not make any warranties about the completeness, ...

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