BCE boosts spending as 5G, fibre networks take hold

BCE Inc. says it’s spending heavily on infrastructure to meet rising data demands as more customers switch to the 5G and fibre networks.

The higher capacity systems and plans are in turn leading to more revenue, company chief executive Mirko Bibic said on an earnings conference call Thursday.

“Customers using 5G handsets with 5G plans are definitely consuming significantly more data, and therefore, the monthly recurring revenue is higher from that base of customers.”

The company is expecting to see a similar trend as it continues to roll out its fibre network for wireline customers, he said.

Montreal-based BCE, along with its big telco competitors, have ramped up infrastructure spending in recent years with the company’s total peaking at about $5 billion this year before it starts to drop next year, Bibic said.

The company is aiming to reach up to 900,000 more homes and businesses this year with direct fibre connections as well as expand its 5G network.