Quote:
Originally Posted by Nathan
True. And it also makes its profit charging some of the lowest rates in Canada. Were SaskTel to up their prices (the big 3 would definitely love to charge rates similar to what they do elsewhere), it would basically be pure extra profit, so even using current profitability as a valuation variable is a little flawed.
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As my friend said to me (paraphrasing):
"So the government wants to sell Sasktel since it would get a large one-time windfall which they claim would eclipse Sasktel's current long-term outlook for profit. However, rates would probably double for Saskatchewan consumers, and match the rest of Canada. So, instead of selling, why not just force Sasktel to double their rates and keep the profit in the province? If Sasktel's rates were the same as Bell or Rogers in AB/ON, then there's no calculation that is possible that would make it a good idea to sell it."
But the reason for any possible sale
isn't to make Saskatchewan money (or save money), as I think we know. It's to sell publicly-paid for assets to private interests which also coincidentally happen to donate to the political class. It's an endless cycle of companies donating to politicians, politicians doing things that benefit those companies, and then politicians getting board/lobbyist positions at those companies after.