With increasing digitization powered by 5G rollouts, the Canadian telecommunication industry is set to expand in the foreseeable future. Given this fact, investors are increasingly allocating funds to this sector to hedge against inflation in the global market.
However, to make this strategy effective, it is essential to invest in a stock that investors can buy and hold for the long run. In this regard, they should check out BCE Inc. (TSX:BCE). It is one of the largest telecommunication companies in Canada, dealing in wired and wireless internet and cable connections. The telecom primarily operates in three segments – Bell Media, Bell Wireline, and Bell Wireless.
Here are some reasons why investors can consider purchasing this stock.
Bell Canada completes FX Innovation buyout
As of June 2, the Canadian telecommunication giant has completed the acquisition of FX Innovation. The firm specializes in providing cloud management and workflow automation services in Canada and internationally.
Coupled with Bell’s fibre network and 5G resources, FX’s expertise in cloud services will enable the former to deliver integrated multi-cloud solutions to a vast array of Canadian businesses. Experts say that this collaboration will allow both entities to scale their operations and provide better value to their clients.
Kinesso signs a deal with BCE to utilize its connected TV audience solution
Earlier in May, it was announced that Kinesso has partnered with BCE to be one of the first users of the latter’s Connected TV audience solution. This software leverages Bell Media’s proprietary audience segments and will enable Kinesso to target a larger portion of the market.
Additionally, surveys indicate that Connected TV viewership has grown three times in the last two years. But, with the rise in viewing options, the fragmentation of the industry is also rising in tandem. This makes it increasingly difficult for advertisers to launch their campaigns.
However, with BCE’s advanced solution, marketing organizations can get a unified audience solution, with which they can target consumers based on their media consumption, location, financial indicators, and more.
This creates a bigger scope for agencies like Kinesso to increase their return on investment while creating a larger market share for Bell Media.
BCE launches 5G+ services in Manitoba
Bell launched 5G+ services in Manitoba earlier in April. This move has enabled consumers in Winnipeg, St. Andrews, and Headingley to enjoy the fastest network speeds in the country, along with a superior mobile experience.
With service expansion, BCE is now offering 5G+ coverage to approximately 40% of the Canadian market. Thus, for investors looking for a broader way to play 5G growth in Canada, BCE is increasingly looking like the best option.
BCE has strong expansion plans in effect, which can help scale its business to new heights. Thus, investors should consider adding this telecom stock to their portfolios for diversification as well as long-term capital appreciation.