adplus-dvertising
Connect with us

News

BCE signs deal to buy U.S. fibre internet provider Ziply Fiber for $5 billion

Published

 on

BCE Inc.’s share price took a hit in midday trading on Monday after the company announced it has signed a deal to buy U.S. fibre internet provider Ziply Fiber for about $5 billion in cash.

Shares in the company were trading at $40.37, down $4.44 or around 9.9 per cent.

BCE said Monday the deal will extend Bell’s fibre footprint to the United States, adding approximately 1.3 million fibre locations.

In addition to the purchase price, BCE will assume about $2 billion in net debt as part of the transaction.

“This acquisition marks a bold milestone in Bell’s history as we lean into our fibre expertise and expand our reach beyond our Canadian borders,” BCE chief executive Mirko Bibic said in a statement.

“By bringing together Bell and Ziply Fiber’s exceptional talent, we’ll accelerate our growth while continuing to deliver significant value for our customers and shareholders.”

Based in Kirkland, Wash., Ziply Fiber offers fibre internet service in the U.S. Pacific Northwest, including Washington, Oregon, Idaho and Montana.

“This acquisition enhances our growth strategy with the scale and experience of one of North America’s leading fibre operators,” Ziply Fiber chief executive Harold Zeitz said.

Once the deal has closed, Ziply Fiber is expected to operate as a separate business unit and will continue to be headquartered in Kirkland.

BCE said it will use about $4.2 billion in net proceeds from the sale of its stake in Maple Leaf Sports & Entertainment to help pay for the deal.

The company also said it plans to pause dividend growth until its dividend payout and net debt leverage ratios are tracking toward its target policy ranges.

Scotiabank analyst Maher Yaghi called the move “perplexing” for BCE, noting the costs to load customers, along with capital expenses, are high for fibre operators in the U.S.

“Investors in Canadian telecom are in the sector for dividends and not in it to get growth; they can get it elsewhere,” Yaghi said in a note.

He compared the transaction with Verizon Communications Inc.’s announcement in September that it would acquire fibre internet provider Frontier Communications in a US$20-billion deal.

Verizon said at the time that the deal would add 2.2 million fibre subscribers and extend its network reach to 25 million premises across 31 states and Washington, D.C.

“Convergence is the big theme in the U.S. currently. It will be interesting to see how BCE will supplement its acquired business to sell converged services,” Yaghi said.

“We certainly understand the impetus by Verizon to acquire Frontier given the geographic overlap on wireless but are having a hard time seeing the same potential synergistic potential with BCE’s move at this time.”

BCE’s acquisition is expected to close in the second half of 2025, subject to customary closing conditions and regulatory approvals.

While the transaction seems “expensive at first glance,” Desjardins analyst Jerome Dubreuil noted it involves “what appears to be a high-quality asset,” with BCE likely motivated by the need to boost telecom growth long-term.

“BCE is reinforcing its position as a North American fibre leader and will look to accelerate growth by gaining exposure to a new fibre-building platform in a market where customer penetration lags that in Canada and with a long runway of deployment potential,” Dubreuil said.

But he added the move likely sends a “negative signal” when it comes to Canadian telecom prospects, as BCE and its two largest competitors, Rogers Communications Inc. and Telus Corp., have directed “a large portion of recent investments away from the sector.”

BCE has previously outlined its intention to cut spending on its fibre network build in Canada in response to regulatory decisions it opposes.

In particular, the company said last year it would reduce its network spend by $1.1 billion in 2024 and 2025. That came in response to the CRTC’s mandate for large telephone companies that own fibre internet networks to give competitors access to their networks for a fee.

Bell has said that direction diminished the business case for it to invest in its domestic network.

This report by The Canadian Press was first published Nov. 4, 2024.

Companies in this story: (TSX:BCE)



Source link

Continue Reading

News

Trump names Brendan Carr, senior GOP leader at FCC, to lead the agency

Published

 on

WEST PALM BEACH, Fla. (AP) — President-elect Donald Trump on Sunday named Brendan Carr, the senior Republican on the Federal Communications Commission, as the new chairman of the agency tasked with regulating broadcasting, telecommunications and broadband.

Carr is a longtime member of the commission and served previously as the FCC’s general counsel. He has been unanimously confirmed by the Senate three times and was nominated by both Trump and President Joe Biden to the commission.

The FCC is an independent agency that is overseen by Congress, but Trump has suggested he wanted to bring it under tighter White House control, in part to use the agency to punish TV networks that cover him in a way he doesn’t like.

Carr has of late embraced Trump’s ideas about social media and tech. Carr wrote a section devoted to the FCC in “ Project 2025,” a sweeping blueprint for gutting the federal workforce and dismantling federal agencies in a second Trump administration produced by the conservative Heritage Foundation.

Trump has claimed he doesn’t know anything about Project 2025, but many of its themes have aligned with his statements.

Carr said in a statement congratulating Trump on his win that he believed “the FCC will have an important role to play reining in Big Tech, ensuring that broadcasters operate in the public interest, and unleashing economic growth.”

“Commissioner Carr is a warrior for Free Speech, and has fought against the regulatory Lawfare that has stifled Americans’ Freedoms, and held back our Economy,” Trump said in a statement on Sunday. “He will end the regulatory onslaught that has been crippling America’s Job Creators and Innovators, and ensure that the FCC delivers for rural America.”

The five-person commission has a 3-2 Democratic majority until next year, when Trump gets to appoint a new member.

Carr has made appearances on Fox News Channel, including when he slammed Democratic Vice President Kamala Harris ’ appearance on “ Saturday Night Live” the weekend before the election — charging that the network didn’t offer equal time to Trump.

Also a prolific writer of op-eds, Carr wrote in an opinion piece for The Wall Street Journal last month decrying an FCC decision to revoke a federal award for Elon Musk’s satellite service, Starlink. He said the move couldn’t be explained “by any objective application of the facts, the law or sound policy.”

“In my view, it amounted to nothing more than regulatory lawfare against one of the left’s top targets: Mr. Musk,” Carr wrote.

The Canadian Press. All rights reserved.



Source link

Continue Reading

News

Trudeau touts carbon levy to global audience |

Published

 on

Prime Minister Justin Trudeau is defending his embattled carbon-pricing program on the world stage, and he argues that misinformation is threatening environmental progress. He spoke at a conference held by the anti-poverty group Global Citizen, ahead of the G20 leaders summit in Brazil, and said fighting climate change is not in conflict with affordability. (Nov. 17, 2024)



Source link

Continue Reading

News

BYU quarterback Jake Retzlaff brings touchdowns and Jewish teachings to predominantly Mormon school

Published

 on

PROVO, Utah (AP) — Shortly after sunset on Saturday, Rabbi Chaim Zippel clasped an overflowing cup of wine and a tin of smelling spices as he marked the end of the Sabbath with a small Jewish congregation at his home near Provo, which doubles as the county’s only synagogue.

The conclusion of the ceremony known as Havdalah set off a mad dash to change into blue and white fan gear and drive to the football stadium at nearby Brigham Young University, the Utah private school run by The Church of Jesus Christ of Latter-day Saints.

Zippel never expected to become a BYU fan, or even a football follower, but that changed when the school where 98.5% of students belong to the faith known widely as the Mormon church added its first Jewish quarterback to the roster.

With Jake Retzlaff at the helm, the Cougars won nine straight games in what was shaping up to be a storied season before a loss Saturday against the Kansas Jayhawks ended their undefeated run. Even so, BYU — ranked No. 14 in the AP Top 25 — could end the season at the top of the Big 12 Conference with a chance to make the College Football Playoff.

Retzlaff has earned a hero’s embrace by rabbis and others in Provo’s tiny but tight-knit Jewish community while also becoming a favorite of the broader BYU fan base that lovingly calls him the “BYJew.”

One of just three Jewish students in a student body of 35,000, the quarterback and team co-captain who worked his way into the starting lineup has used his newfound stardom to teach others about his own faith while taking steps to learn more about Judaism for himself.

“I came here thinking I might not fit in with the culture, so this will be a place where I can just focus on school and football,” Retzlaff told The Associated Press. “But I found that, in a way, I do fit. People are curious. And when everybody around you is so faith-oriented, it makes you want to explore your faith more.”

The junior college transfer from Corona, California, formed a fast friendship with the Utah rabbi when he came to BYU in 2023. The two began studying Judaism fundamentals each week in the campus library, which would help Retzlaff speak confidently about his faith in public and in his many required religion classes.

BYU undergraduates must take classes about the Book of Mormon, the gospel of Jesus Christ and the faith’s core belief that families can be together forever if marriages are performed in temples. Retzlaff said he was surprised to find many references to the Jewish people in the Book of Mormon. Some classmates and fans have even called him “the chosen one,” referring to both his success on the field and a Latter-day Saint belief that members of the Jewish faith are God’s chosen people.

“It’s a lot of respect, honestly. They’re putting me on a mantel sometimes, and I’m like, ‘Whoa guys, I don’t know about that,'” he said with a laugh.

Retzlaff, 21, has embraced becoming an ambassador for his faith in college football and in a state where only 0.2% of residents are Jewish. The redshirt junior wears a silver Star of David necklace on campus and attends dinners on Shabbat, the Jewish day of rest, at the rabbi’s house during the offseason.

He led Utah County’s first public Hanukkah menorah lighting last year at Provo’s historic courthouse, brought a kosher food truck to a team weight training and wrapped tefillin with Zippel in the BYU stadium. The tefillin ritual performed by Jewish men involves strapping black boxes containing Torah verses to the arm and forehead as a way of connecting to God.

“I told Jake, I said, after doing this here, after connecting to God on your terms inside the stadium, no amount of pressure will ever get to you,” Zippel said. “I think there’s no greater example of finding your corner of the world where you’re supposed to make your impact and making that impact.”

Retzlaff is affiliated with the Reform denomination of Judaism, which melds Jewish tradition with modern sensibilities, often prioritizing altruistic values and personal choice over a strict interpretation of Jewish law. He plays football on Friday nights and Saturdays during Shabbat and says sports have become a way to connect with his faith and to inspire young Jewish athletes.

Among them is Hunter Smith, a 14-year-old high school quarterback from Chicago who flew to Utah with his dad, brother and a group of Jewish friends to watch Retzlaff play. The brothers sported Retzlaff’s No. 12 jerseys, and their father Cameron wore a “BYJew” T-shirt depicting Retzlaff emerging from a Star of David, the most recognizable symbol of the faith.

“Being the only Jewish quarterback in my area that I know of, I feel like I get to pave my own path in a way,” Smith said during Saturday’s game. “Jake’s the only Jewish quarterback in college football, so he’s someone I can relate to and is like a role model for me, someone I can really look up to.”

When Retzlaff lit Provo’s giant menorah last December, Zippel said he was touched to hear the quarterback speak about the importance of his visibility at a time when some Jewish students didn’t feel safe expressing their religious identity on their own campuses amid heightened antisemitism in the United States.

His presence has been especially impactful for BYU alumna Malka Moya, 30, who had struggled to navigate her intersecting identities on the campus as someone who is both Jewish and a Latter-day Saint.

“Jake feels very comfortable wearing his Star of David all the time,” said Moya, who lives near Provo. “I haven’t always been very comfortable with expressing my Jewish identity. But, more recently, I feel like if he can do it, I can do it.”



Source link

Continue Reading

Trending