SaskTel is facing increasing regulatory and competitive pressures, as revealed in its year-end data report. The Saskatchewan-based telecommunications provider saw revenue growth slow to 2.1% in the fiscal year, down from 3.4% the previous year, while its market share in the province's wireless segment dropped by 1.5 percentage points to 58.2%, according to the company's financial statements released June 24.
Regulatory challenges mount
The Canadian Radio-television and Telecommunications Commission (CRTC) has implemented new wholesale rates for internet services, reducing SaskTel's ability to profit from third-party access. "The regulatory landscape continues to evolve, and we are adapting our strategy accordingly," said SaskTel CEO Doug Burnett in a statement. The company also faces potential changes to spectrum licensing rules that could increase costs.
Competition intensifies
New entrants like Rogers Communications and Telus have expanded their presence in Saskatchewan, offering aggressive pricing and bundling options. SaskTel's wireline revenue declined by 3.8% as customers switched to competitors' fiber-optic networks. The company's data usage per customer grew 22%, but average revenue per user (ARPU) remained flat at $62.50 per month.
Impact on operations
SaskTel has responded by investing $180 million in network upgrades, including 5G expansion and rural broadband. However, capital expenditures rose to 28% of revenue, up from 24% in the prior year. The company reported a net income of $245 million, a 4.2% decrease from $256 million. "We are focused on efficiency and innovation to maintain our competitive edge," Burnett added. The pressures are expected to persist as the CRTC reviews further regulatory changes in 2027.
