The Globe and Mail reports in its Saturday edition that analysts see Canadian telcos facing a pricing war, raising concerns over whether investors should be relying on the traditionally stable and dividend-rich sector. The Globe's David Berman writes that the cautious outlooks come when share prices for the likes of BCE and Telus have tumbled from their recent highs, pushing dividend yields to levels that offer a decent cushion against a further downturn. Curiously, the telcos were not weighed down in the weeks after Rogers Communications completed its takeover of Shaw Communications in early April. Now, even Rogers's share price has fallen more than 12 per cent over this period. One possible culprit behind the sell-off: Both BCE and Telus reported lower first-quarter profits at the start of May. A second culprit: Bond yields have remained stubbornly high amid persistent inflation. Some analysts are turning their attention to a third, and somewhat more troublesome, threat: a price war for smart phone services. Freedom is undercutting competitors with wireless plans for as low as $39 a month -- $50 for a beefier plan with more data -- and competitors are responding with price cuts to some of their wireless brands.