Canadian Telecom Firms link mobile subscriber slowdown to immigration policies

Key Takeaways

• Canadian telecoms cite immigration cuts as the top reason for slowing new mobile subscriber growth in 2024 and 2025.
• Rogers saw new mobile subscribers drop from 61,000 to 34,000 year-over-year due to fewer newcomers.
• Permanent resident targets reduced to 395,000 in 2025 and 380,000 in 2026, impacting telecom markets directly.

Canadian telecom firms are experiencing a notable slowdown in acquiring new mobile subscribers, and they point directly to recent immigration policies as a leading cause. Top companies such as BCE, Rogers, and Telus say changes made to immigration policy at the federal level have slowed down population growth. As a result, fewer new people are moving to Canada 🇨🇦, leading to a shrinking pool of potential mobile subscribers. This article looks at the reasons for this change, its wider effects, and how the industry is reacting in the face of these challenges.

What Happened: Immigration Policies Shift and Its Effect

Toward the end of 2024, the Canadian government made important decisions on immigration. The number of people allowed to become permanent residents each year dropped from an earlier target of 500,000 down to 395,000 for 2025, and just 380,000 for 2026. These cuts were not limited to permanent residents—caps were also placed on international student visas. Decision-makers said these steps were needed to help with housing shortages and rising costs, but it also meant fewer newcomers entered Canada 🇨🇦 than before.

For Canadian telecom firms, these changes were deeply felt. These companies rely heavily on newcomer growth to add new mobile subscribers each year. Analysis from VisaVerge.com suggests that a growing population—specifically driven by newcomers—has been a main driver of new cell phone users across the country. When you have fewer new residents, you also see a slow-down in new mobile account sign-ups.

Immigration Cuts—The Concrete Impact

Several telecom firms have been clear about the effect. Rogers Communications saw their net additions of new mobile subscribers drop steeply at the start of 2025. They added just 34,000 users, compared to 61,000 at the same time last year. The company blamed the drop on fewer immigrants moving to the country.

Mirko Bibic, CEO of Bell, made public comments about the slowdown beginning as early as the second half of 2024. “That’s largely a function of federal government policies around newcomers to Canada,” Bibic explained, pointing the finger directly at changes in how many new immigrants can enter each year. The company expects new signups for mobile service to remain low for the rest of 2025.

Industry experts agree. At least one major telecom provider may not see any real growth in new customers for 2025—and could even report fewer net subscribers. These trends are traced straight back to fewer people moving to Canada 🇨🇦 under the new immigration policies.

How Immigration Fuels Telecom Growth

Canada 🇨🇦 has a long-standing history of strong population growth through immigration, which in turn has supported economic growth and consumer markets. For Canadian telecom firms, newcomers are a vital part of their customer base. Many immigrants, and international students in particular, sign up for new phone plans shortly after arriving in the country. This constant flow of new arrivals has been a predictable and essential driver for the telecom business.

Mobile subscriber counts are closely tied to the number of people in the country. A larger number of immigrants leads to higher demand for phones and wireless plans. With immigration now being limited, telecom executives warn that the pool of potential new customers is shrinking.

Let’s break this down:

• Fewer permanent residents: With targets dropping to 395,000 and 380,000, there are almost 120,000 fewer new permanent residents over two years than earlier plans.
• Student visa caps: Limiting the number of international students places further pressure on the young adult segment—one of the strongest groups for mobile plan purchases.
• Direct impact: For every new arrival who does not enter Canada 🇨🇦, that is one less potential mobile subscriber, as most need reliable communication soon after arriving.

This link between immigration and mobile subscriber growth is straightforward, and the data from telecom firms backs it up.

Other Pressures in the Market

While the main worry for many Canadian telecom firms right now comes from the immigration slowdown, other challenges exist too. New tariffs, supply chain issues, and tough market competition all add stress to the sector.

Still, executives single out reduced immigration—and the resulting slower population growth—as the biggest single issue for their bottom line. Simply put, the pool of people who might buy a wireless plan isn’t growing as quickly, so sales growth struggles.

Let’s look at some of these other problems:

• Tariffs: Tariffs can increase the cost of imported equipment, but recent reports say telecom firms do not expect a major blow from tariffs. The immediate pain from lacking new subscribers is stronger.
• Supply Chain Issues: Getting the hardware and technology needed for maintaining and improving networks can be tricky given ongoing global supply delays. Still, this is a secondary worry compared to subscriber growth.
• High Competition: The market has grown even more competitive in recent years, especially after big mergers such as Rogers and Shaw. This has led to lower prices and more options for customers, but tougher business for the telecoms as they fight for every new signup.

Even with all these factors at play, the consistent company message remains: the biggest challenge to revenue and business growth is the smaller number of new people moving to Canada 🇨🇦.

Summary Table: Factors Influencing Subscriber Growth

Here’s a simple look at what’s affecting subscriber numbers for Canadian telecom firms:

You can see that immigration policies lead the list as the single largest factor.

Telecom Industry’s Response to Population Slowdown

Canadian telecom firms are not standing still in the face of these changes. Companies have already started to change how they do business as they try to make up for fewer new mobile subscribers. Here’s how:

• Promotions and Discounts: Firms are offering more sales and discounted plans, especially near the end of each business quarter. The idea is to encourage hesitant buyers—those who might be thinking of switching or those holding off—to take the plunge.
• Retaining Existing Customers: With fewer new people to attract, telecoms are working harder to keep their current customers. They focus on improving customer service, locking customers in with better deals, or special features.
• Cost-Cutting and Asset Sales: With industry growth stalling and the high cost of national projects like the 5G network, some companies are looking to sell assets or cut costs wherever possible to maintain profits.
• Shifting Business Focus: Some firms may shift more attention from wireless to internet, TV, or business service customers, as growth in wireless slows sharply.

These strategies are likely to become more important if immigration limits remain in place over the next few years.

Wider Economic Effects Beyond Telecom

While the immediate concern for Canadian telecom firms is about mobile subscriber slowing, these trends have effects for the wider economy too. Fewer new arrivals impact not just telecoms but other consumer sectors—retail, education, banking, housing and more. Immigrants and international students bring fresh demand for all sorts of goods and services.

But the slowdown in mobile subscriber growth is perhaps one of the clearest early signs of how quickly new immigration policies can change the business mood and outlook. As telecoms have to fight harder for fewer new customers, this could trigger more competition, slimmer profit margins, and possibly even job cuts over time—a pattern seen in other slow-growth economies.

For the general Canadian 🇨🇦 public, this could mean better deals in the short run as telecom firms fight to keep or attract the customers already here. However, if the market remains tough, some firms may choose to invest less in new technology or coverage areas, which could affect service quality in the long run.

Industry Voices: What Are Executives Saying?

Company bosses have not been shy about making their frustration with new immigration policies public. Below are some recent statements:

• Bell CEO Mirko Bibic: Said they started to feel the effect in late 2024 and expect it to continue through all of 2025. He notes, “That’s largely a function of federal government policies around newcomers to Canada.”
• Rogers Communications: Blamed a sharp drop in new customer sign-ups directly on fewer immigrants, specifically pointing to the decline from 61,000 to 34,000 in just one year.
• Analysts: Warn that at least one major company could end up with flat or even negative subscriber growth, a worrying sign for what once was a booming industry.

These comments show just how closely telecom executives are tying their business outlook—and growth plans—directly to immigration policies.

Historical Context: How Did We Get Here?

Canada 🇨🇦 has built up a strong and steady reputation for welcoming millions of newcomers over the years. Immigration has been the main driver of population growth for decades, helping to make the market for mobile and wireless services strong and growing.

Previous immigration targets—aiming for around 500,000 new permanent residents a year—gave telecom firms and other businesses confidence in annual growth. The latest cuts, dropping new targets to just under 400,000 a year for the next two years, represent a sharp change in direction.

Similarly, Canada 🇨🇦 has been one of the world’s top destinations for international students, many of whom need mobile plans as soon as they land to call home, register for school, and find jobs. With fewer student visas issued, telecom firms are missing out on what was once a reliable new customer stream.

This recent policy change marks a break with decades of population-first planning, and telecom firms may need to rethink their long-term business models unless immigration numbers bounce back.

What This Means for Telecom Customers and Newcomers

With fewer new arrivals from abroad, Canadian telecom firms are doing more to hold on to their current customers. That’s good news if you’re already a customer or planning to switch, as you may find better deals, more value for your money, or promotional rates.

For immigrants, international students, and temporary workers still moving to Canada 🇨🇦, the demand for mobile service is still strong. But with total numbers down, newcomers will remain a critical focus for telecom companies, who are likely to keep targeting offers and advertising at this group.

It’s important for both industry watchers and the public to keep track of these changes. If population growth doesn’t pick up, the industry could see a flattening or shrinking of the total mobile subscriber base—a first for a country that has seen steady growth for decades.

If you’re interested in more data, reports from the Canadian Radio-television and Telecommunications Commission offer deeper statistics and trends about telecom industry changes and consumer demand patterns.

A Look Ahead: The Future for Canadian Telecom Firms

The changes brought by recent immigration policies have forced Canadian telecom firms to adapt fast. The link between immigration and mobile subscriber growth is simple: fewer newcomers means fewer new customers for wireless plans. With lower permanent resident targets and student visa caps, the industry can’t count on population growth to fuel profits any longer.

Going forward, how strongly the telecom sector recovers may depend largely on the next move in immigration policy. If targets are raised again, and more newcomers arrive, business could rebound. If not, expect more cost cuts, tougher competition, and a greater focus on keeping current clients happy.

Anyone interested in the official details and rules for Canada’s immigration programs can visit the Government of Canada’s immigration website for further information.

To sum up, Canadian telecom firms are facing real and direct challenges from recently changed immigration policies. Whether that means more promotional deals for consumers or slower advances in wireless technology, it’s a story worth following for everyone who depends on, or works in, the country’s mobile phone market.

Learn Today

Permanent Resident → A person allowed to live and work in Canada indefinitely but who isn’t a Canadian citizen.
Student Visa → Authorization allowing international students to legally study in Canada for a specified period.
Mobile Subscriber → An individual or entity with an active mobile phone service account with a telecom provider.
Tariffs → Government-imposed taxes or duties on imported goods, impacting equipment costs for telecom companies.
5G Network → The fifth generation of cellular network technology, enabling faster data speeds and more reliable wireless communications.

This Article in a Nutshell

Canada’s top telecom firms are feeling the impact of stricter immigration policies, as lower newcomer numbers lead to shrinking mobile subscriber growth. Reduced immigration targets and student visa limits cut into crucial customer pools. This has forced telecoms to offer better deals and intensify retention efforts as industry growth slows markedly.
— By VisaVerge.com

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