Bell Canada Enterprises (BCE) and the Public Sector Pension Investment Board (PSP Investments) have announced the creation of Network FiberCo, which will develop fibre infrastructure in the U.S. through its recent acquisition of Ziply Fiber.
According to BCE, the new company will speed up the creation of fibre networks in underdeveloped communities across the U.S. These communities will mainly be areas to expand Ziply Fiber’s service area, enabling the company to reach “8 million fibre passings.” Network FibreCo will develop 1 million additional fibre passings, allowing Ziply Fiber to achieve the 8 million mark.
BCE, through Ziply Fiber, will own a 49 per cent stake in the new organization, with PSP investments owning 51 percent through its High Inflation Correlated Infrastructure Portfolio (HICI).
Bell called the formation of Network FiberCo a “strategic entry into the U.S. broadband market,” with Mirko Bibic, President and CEO of BCE and Bell Canada, stating that “Today’s announcement represents a pivotal step in BCE’s fibre growth strategy.” Bibic also said, “By bringing PSP Investments’ financial resources and acumen to Ziply Fiber, we are creating a scalable, capital-efficient platform to fund U.S. fibre footprint expansion.”
Back in November, BCE Inc. purchased Ziply Fiber for $5 billion, using funds from the sale of its share in Maple Leaf Sports and Entertainment (MLSE) early last fall. This multi-billion-dollar investment in the Washington-based organization caused backlash for Bell Canada and a dip in BCE’s share prices. Scotiabank Analyst Maher Yagi called the move “perplexing.”
Some of the backlash concerned Bell’s recent string of layoffs in Canada, with some expressing frustration over Bell choosing to invest in the U.S. amid ongoing tensions due to President Donald Trump’s trade war.
Source: BCE
MobileSyrup may earn a commission from purchases made via our links, which helps fund the journalism we provide free on our website. These links do not influence our editorial content. Support us here.
