Bell to Enhance Western Canada Internet Access by Expanding Fibre Service on Telus Network

Basio badr

ago 18 hours

Bell to Enhance Western Canada Internet Access by Expanding Fibre Service on Telus Network

Bell Canada is set to enhance internet access in Western Canada through an expansion of its fibre service. This initiative marks the company’s first entry into the region, utilizing a government-mandated fibre-sharing framework to reach millions of potential customers on the Telus network.

Bell’s Strategic Expansion into Western Canada

This expansion is part of Bell’s broader strategy unveiled during its recent Investor Day. The company plans to roll out these services in the upcoming weeks, aiming to offer competitive bundles that include mobile wireless and television streaming services.

New Opportunities for Customers

Bell CEO Mirko Bibic emphasized the consumer-centric approach of this rollout. The company aims to protect and grow its wireless subscriber base while ensuring financial discipline for its investors.

Investor Day Insights

First Investor Day in over a decade.
Discussed growth momentum and sustainable expansion plans.
Updated revenue targets for the Bell Business Markets division to $1.5 billion by 2028.

Financial Growth Projections

Bell also reported significant growth in its specialized divisions. The company anticipates annual growth rates of:

11% at Bell Cyber
33% at Bell AI Fabric
40% at Ateko, its consulting brand

These segments allow for capital-light operations, with a substantial investment of $300 million dedicated to expanding compute capacity.

Addressing Investor Concerns

This year, Bell focused on assuaging investor worries regarding spending and debt. The company cut its dividend in half and partnered with PSP Investments. This collaboration will help share the financial burden of expanding its U.S. internet holdings.

Stock Performance and Leverage Goals

BCE’s stock situation has stabilized, but concerns remain due to a 36% drop in 2024. As part of its financial strategy, the company plans to achieve a manageable debt-to-EBITDA ratio of 3.5 by the end of 2027.

Future Asset Management

Bell identified $7 billion in non-core assets for divestiture, including:

Sale of its $4.7 billion stake in Maple Leaf Sports & Entertainment.
Planned sale of NorthwesTel for $1 billion.
Legacy home-security business sale for up to $170 million.

These moves are crucial for achieving its financial objectives and ensuring a robust position in the market. The company is also considering further asset sales to reach its targets.

Challenges Ahead

One potential challenge is the funding status of Indigenous coalition Sixty North Unity, the designated buyer for NorthwesTel. As of June, the coalition was still seeking financial support, including possible federal loan guarantees.

In conclusion, Bell Canada is poised for strategic growth in the Western Canadian market, leveraging existing infrastructure and aiming for financial stability while expanding its services.