Bell is officially expanding into the United States after regulators approved its takeover of Ziply Fiber, a regional internet provider based in the Pacific Northwest.
The decision came from the U.S. Federal Communications Commission (FCC) last week, which announced it would allow Bell’s U.S. arm, BCE Holding Corporation, to acquire Ziply’s parent company, Northwest Fiber Holdco.
The $5 billion deal, which was announced last fall, had to pass FCC review because it involves telecommunications infrastructure that crosses international borders.
In its public memo, the FCC said “the applicants contend that because Bell Canada and Ziply Fiber have no geographic overlap in their operating territories and otherwise do not compete, the proposed transaction will not result in any reduction in competition or choice for consumers.”
Ziply runs high-speed fibre internet and phone services in Washington, Oregon, Idaho, and Montana. Bell will now fully own the company, but Ziply will continue operating under its own name and management.
“Leveraging Bell Canada’s expertise gained while deploying fiber in geographically difficult locations in Canada will help Ziply Fiber meet its fiber buildout plans,” said the FCC.
The FCC also approved foreign ownership in Ziply Fiber above the usual 25% limit, since Bell is a Canadian company.
Bell has agreed to take over all of Ziply’s obligations tied to U.S. federal funding programs like the Rural Digital Opportunity Fund (RDOF). That includes finishing planned fibre internet rollouts in rural communities. The FCC made it clear that Bell will be on the hook for any missed deadlines or problems, even if those started before the deal.
The U.S. government’s national security and trade agencies reviewed the deal too. They signed off on it after Bell agreed to certain conditions outlined in a confidential agreement submitted in May.
With the approval in hand, Bell is now set to expand its reach beyond our borders, a rare move for a Canadian telecom in the U.S. market. Analysts have called the deal “perplexing” so let’s see how this one plays out.
Want to see more of our stories on Google?
P.S. Want to keep this site truly independent? Support us by buying us a beer, treating us to a coffee, or shopping through Amazon here. Links in this post are affiliate links, so we earn a tiny commission at no charge to you. Thanks for supporting independent Canadian media!
Weird because Bell already has a whopping $39.2 billion in total debt…
Why is Bell adding even more to their massive debt to expand into the northwestern USA, when they don't even offer home services in western Canada? What is the motive here? I can only assume it's something unscrupulous or nefarious given their track record.
I guess nobody told them it's "elbows in your face" time….
Can't you guess why it's more profitable to invest in US these days?
Except Manitoba. They have presence in Manitoba.
USA get rdy to get screwed with bills that go up every month without any explanation and a condescending customer service that hangs up on you!🤡
Bell cannot mess with FCC what they do to us at home in Canada there good old friend CRTC giving them easy ride have a beer with them. can’t pull this stunt on FCC.
CRTC doesn’t gives a damn about Canadian lets the big 3 run Canada’s market there way monopoly sector.
And if they try to mess mislead, American customers with breaking the rules put by FCC’s policy. Its gonna rude of awakening.
Can’t mess with Americans customer if Bell increase price FCC will be doing penalties on Bell
Bell is not playing in the sandbox anymore. They’re playing in the backyard of the American big leagues.