Q: Since it is very difficult to maintain or increase market share in mobile telephony. Isn’t it a good idea to turn to fiber optic network like with the recent acquisition of Zippy Fiber to maintain a stable source of income and free cash flow?
In your answer dated Nov 19, you write`` it seems to have lost its way a bit, with selling assets to pay down debt and then making a big acquisition. ``
Your view on this would be appreciated.
Thanks
Yves
In your answer dated Nov 19, you write`` it seems to have lost its way a bit, with selling assets to pay down debt and then making a big acquisition. ``
Your view on this would be appreciated.
Thanks
Yves
5i Research Answer:
We didn't mean to confuse there. We meant from an investor credibility standpoint. We think the acquisition itself is decent. It adds diversification, cash flow, new customers and some growth potential. It's just the timing that is off. BCE had specifically stated it wants to reduce debt, and then goes and spends $4 billion. It was starting to get some traction in cutting costs, and then adds more, potentially. It stated that the dividend would not grow and then spends billions. The stock is at a decade+ low and investors are worried about the dividend. We just think all of this could have been handled a bit better.