SAINT JOHN – A little over a month ago, at least one financial analyst at Bell Canada Enterprises investors’ day wondered why the company – which had just announced a new income trust was being made from its regional lines (think small communities in Ontario and Quebec) – didn’t fold it into the existing Bell Nordiq Income Trust.
Today, BCE took that suggestion one step further and combined its ownership in Bell Nordiq, those aforementioned regional lines – and Aliant – to form one of North America’s largest regional telecommunications service providers
The new regional telecom services provider, a consolidated income trust, will have 3.4 million lines in Ontario, Quebec and Atlantic Canada. In the news release this morning, the company said changes will be seamless for customers and there will be no changes in services or prices.
Branding is still to be determined, "but it will include a B-E-L-L in it," said CEO Michael Sabia.
Part of the deal will see Bell acquire Aliant Mobility, strengthening its national wireless strategy.
"With a dedicated management team that combines the skills of Bell and Aliant, and with offices in Atlantic Canada, in Ontario and in Quebec, our customers will benefit from a team located close to them and focused on their specific regional needs," said Michael Sabia, president and CEO of BCE. "In addition, this larger trust will be able to leverage its size, scale and greater geographic reach to maintain a high quality telecom infrastructure throughout its service area."
"This new entity, which is double the size of the current Aliant, secures a key role for a business headquartered in Atlantic Canada as a leading provider of wireline communications, including broadband and the latest in value-added products and services, across eastern Canada and regions of Ontario and Quebec," said Jay Forbes, President and Chief Executive Officer of Aliant.
Given the fact the companies have at least three television strategies now (Aliant’s DSL TV, Bell ExpressVu and Bell Canada’s upcoming IPTV product), will the TV strategy be affected? In a word, no.
"Nothing is changing on the TV side: ExpressVu will continue to be sold throughout the trust’s territory, just as it is today, and Aliant’s IPTV roll-out will continue as planned," said a Bell spokesperson.
– Greg O’Brien
