SaskTel has reported a net income $127.4-million and operating revenues just under $1.3-billion for the fiscal year ending March 31, 2019.
“SaskTel is working diligently to ensure that Saskatchewan residents have access to a world-class communications infrastructure by continuing to invest in advanced and comprehensive broadband networks throughout the province,” Minister Responsible for SaskTel Don Morgan said in a news release. “SaskTel will continue to implement state-of-the-art network capabilities and enhance coverage across Saskatchewan to provide both rural and urban customers with consistent and high-quality broadband connections to service their ever-increasing bandwidth consumption.”
The province says SaskTel’s strong net income is a result of increased wireless adoption, a resurgence in internet growth and growth in the managing services portfolio.
At the same time the economic environment, regional wireless pricing, changing consumer behavior, increasing competition, and revenue declines from legacy wireline services continue to be challenges impacting SaskTel’s overall growth.
President and CEO Doug Burnett said the market share on wireless cell coverage Sasktel holds has slipped a bit.
“On the wireless side, we actually grew by a number of subscribers, but our market share slipped by about 1.5%, so we’re today in the vicinity of 62-63% of the market.”
Burnett said Sasktel has not seen a decrease in cable subscriptions.
“That is the national trend, but in Saskatchewan we actually saw an increase in our overall take-rate on MaxTV and Max Stream.”
Despite the net income in the 2018-19 fiscal year, the provincial NDP has some concerns with how Sasktel is being run by the provincial government.
One concern they have is the potential use of Hauwei technology when expanding the network to 5G, with the Sask Party government unable to provide a cost in doing so.
Sasktel critic Warren McCall said the province knew the risks of being in business with the Chinese tech giant years ago.
“It’s now being punted to whatever happens with the federal government’s decision and again, there’s some very different positions in terms of the federal parties, and what will happen in the (federal) election,” McCall said. “At very least, they should have some consideration in terms of what this means, dollars and cents, for the people of Saskatchewan (and) what the options are.”
Another concern the NDP has is with the pending bargaining that is taking place between Sasktel and Unifor, which is the union that represents about three thousand employees.
Sasktel critic Warren McCall said when it comes to bargaining, that is the time to show workers what they are worth to the company.
“Last I knew, I don’t think there was a prince’s ransom being asked for at the bargaining table, so in terms of making sure the workers are paid a competitive wage in an industry and a sector that is highly competitive and always changing, that human capital is tremendously important.”
Sasktel’s net income was $15-million higher than what it was the year before.