Converging networks: Network test results caught our attention

Canadian and U.S. morning comments

September 19, 2017

It has been a while since we have done a deep dive into network quality. Although network quality and test results do not necessarily affect near-term results, we believe network quality is one the most important leading indicators for medium- to long-term wireless subscriber share, average revenue per user (ARPU), margins, and capex. In late August, we took a snapshot of the Canadian wireless networks using Open Signal’s app. Last week, PCMag published its annual network tests. The results were similar. In this edition of Converging Networks, we highlight some of our results and the implications for capex and potential for network sharing in Canada.

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Proposed tax changes for small business

The Ritcey Report

September 14, 2017

An educational overview

In July of this year, Finance Minister Bill Morneau introduced a number of tax proposals affecting small business owners. In the interest of clarity, I want to offer a non-judgmental overview of these proposals, including some commentary expressed – as might be expected – by small business groups uncomfortable with the legislation.

An overview

In a nutshell, the government’s small business tax proposals include limiting a corporation’s ability to convert income into capital gains and dividends, halting business owners from lowering their tax rate by sprinkling money to family members regardless of their involvement in the business through dividends or by paying them salaries, and restricting the ability for private corporations to recover taxes through passive investments.

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