Communications firm performing well despite tough VoIP solutions competition

Bell Canada Enterprises (BCE) has posted strong financial results for the third quarter of 2011, but continues to come under pressure from VoIP solutions providers.

The firm, which is Canada's largest communications company, posted an 18.5 per cent increase in adjusted net earnings attributable to common shareholders, which came in at $724 million (£451 million)

Adjusted earnings per share rose 14.8 per cent to 93c and chief financial officer at Bell Canada and BCE Siim Vanaselja noted results of net earnings growth of 41.4 per cent and over $1 billion of free cash flow" during the quarter had been achieved by "healthy operating metrics" and efficient cost management.

BCE said in its earnings report that it is anticipating current levels of competition in the landline phone market from cable companies and VoIP providers to continue in the coming quarters.

Telecoms firms may see VoIP providers as a greater threat in the long term, as deputy chairman of the Federation of Communication Services Dave Dadds recently argued the technology is "here to stay".