Bell Purchase of MTS

[CoryB]

Figured we should start a thread to contain the discussion of the Bell (BCE) purchase of MTS.

The top concern from consumers is what this will mean for wireless. Currently the popular MTS Flat Rate wireless data plan is $86.50 a month (before discounts) while the comparable Bell wireless plan is $165 a month, a 52% increase. While that MTS plan might be a little higher as it includes unlimited voice and national calling it was selected to best match the Bell plan.

Bell is also planning a $1 billion investment in infrastructure upgrades over five years once the deal closes. This is announced as bringing fiber to the home (ftth) and LTE-Advanced. No specific details of the rollout where announced though. As these upgrades are designed to drive more revenue they will likely focus on pockets with higher average annual incomes first and move to lower income levels over time.

The purchase also includes a transfer of one-third of the MTS wireless customers to Telus. No details on how customers will be selected for this part of the deal has been announced.

Part of the deal proposes to make Winnipeg the western headquarters for Bell MTS West. It is not known what impact this will have on office space. Separate from the existing MTS offices in downtown Winnipeg there is generally a lot of office space available for lease. It is thought that any increases in staff levels would not warrant the construction of a new office. If anything the new company might add additional leased space in an existing or already proposed building near the existing MTS campus.

The final part worth mentioning is the sale is agreed to by both Bell and MTS however it is subject to three separate approvals: the Competition Bureau (part of Industry Canada), a separate review by Industry Canada regarding wireless spectrum ownership, and the CRTC as telecommunication services are a regulated industry in Canada and fall under them.

The deal is expected to close is six to nine months, pending approval from the three regulator reviews.