The FCC approved Bell Canada’s, the subsidiary of Montréal, Québec headquartered BCE, Inc. (NYSE: BCE), $5 billion purchase of Ziply Fiber. In February, the FCC sought public input on the deal. In its approval, the agency said it didn’t receive any comments nor petitions to oppose the transaction.
The Wireline Competition Bureau, Office of International Affairs (OIA), and Wireless Telecommunications Bureau (WTB) all had a hand in the approval. The OIA granted the applications and a restated petition for a declaratory ruling regarding the transfer of control of the international section 214 authorizations. WTB consented to the transfer of control of licensees’ common carrier wireless licenses and noncommon carrier wireless licenses to BCE Holding.
The FCC also granted a petition by the NTIA, on behalf of the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector. The committee had no objection to the transaction.
Northwest Fiber Holdco, a Delaware limited liability holding company, does not hold any FCC authorizations, but has continuously operated certain of its wholly-owned subsidiaries as licensees in Washington State, Oregon, Idaho, and Montana using the trade name Ziply Fiber. Ziply Fiber’s primary service offerings are fiber internet and phone for residential and enterprise customers. Licensees provide incumbent local exchange carrier (LEC) and competitive LEC services and FCC wireless license holders.
Bell Canada, a Canadian corporation, is Canada’s largest telephone and telecommunications company. Bell Canada provides facilities-based and non-facilities-based telecommunications, broadband Internet access services, and other IP-based communications services, throughout Canada.
The applicants told the FCC that certain of BCE Holding’s wholly-owned subsidiaries hold telecommunications authorizations from the Commission; however, these subsidiaries do not provide any facilities-based telecommunications services. They assured the agency that, post-consummation, there will be no geographic overlap in their operating territories.
The companies signed their agreement for the transaction in late 2023. Bell Canada is set to acquire Ziply’s 1.3 million-location footprint in the Pacific Northwest in the Canadian firm’s first foray into American fiber. Bell Canada has a 9 million-location footprint in Canada, and is looking to expand to 12 million in North America with the addition of Ziply, according to Broadband Breakfast.
Following the acquisition, Bell Canada told the FCC it intends to conduct an internal restructuring to simplify the holding structure of Ziply Fiber below BCE Holding. The applicants assert that all entities involved in the restructuring will be U.S.-organized companies.
In its approval, the FCC found there are no “likely potential transaction-related public interest harms.” The agency also determined the proposed transaction would not result in less competition or consumer choice because Bell Canada and Ziply Fiber have no geographic overlap in their operating territories and otherwise do not compete.
By Leslie Stimson, Inside Towers Washington Bureau Chief
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