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With increasing digitization driven by 5G rollouts, Canada’s telecommunications industry is set to expand in the near future. Due to this fact, investors are increasingly allocating funds to this sector to counter inflation in the global market.
However, to make this strategy effective, it is important to invest in a stock that investors can buy and hold for the long term. In this regard, they should be checked BCE Inc. (TSX:BCE). It is one of Canada’s largest telecommunications companies, managing 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 may consider buying this stock.
Bell Canada completes purchase of FX Innovation
As of June 2, the Canadian telecommunications giant completed the acquisition of FX Innovation. The company specializes in providing cloud management services and workflow automation in Canada and internationally.
Combined with Bell’s fiber network and 5G resources, FX’s expertise in cloud services will enable the former to deliver integrated multi-cloud solutions to many Canadian businesses. Experts say this collaboration will allow both entities to scale their operations and provide better value to their clients.
Kinesso has signed an agreement with BCE to deploy its connected TV audience solution
Earlier in May, it was announced that Kinesso had partnered with BCE to become one of the first users of the latter’s Connected TV audience solution. This software uses Bell Media’s proprietary audience segments and enables Kinesso to target a larger portion of the market.
In addition, surveys show that Connected TV viewership has grown three times in the past two years. However, with the increase in viewing options, the fragmentation of the industry has also increased in parallel. This makes it difficult for advertisers to launch their campaigns.
However, with BCE’s advanced solution, marketing organizations get a unified audience solution, where they can target consumers based on their media consumption, location, financial indicators, and more.
This creates greater scope for agencies like Kinesso to increase their return on investment while creating greater market share for Bell Media.
BCE launches 5G+ services in Manitoba
Bell launched 5G+ services in Manitoba in early April. This move 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 now offers 5G+ coverage to approximately 40% of the Canadian market. So, for investors looking for a broader way to play the growth of 5G in Canada, BCE is increasingly looking like the best option.
Bottom line
BCE has strong plans to expand its impact, which will help grow its business to new heights. Therefore, investors should consider adding this telecom stock to their portfolios for diversification as well as long-term capital appreciation.