bell Canada and PSP Investments Launch Network FiberCo
Bell Canada Enterprises (BCE) and the Public Sector Pension Investment Board (PSP Investments) have teamed up to form a new company called Network FiberCo. This venture aims to enhance fiber infrastructure in the United States, following BCE's recent acquisition of Ziply Fiber.
Expanding Fiber Networks in Underserved Areas
BCE states that Network FiberCo will accelerate the development of fiber networks in areas that lack adequate service. The focus will be on expanding Ziply Fiber’s reach, targeting an notable goal of “8 million fiber passings.” To achieve this, Network fiberco plans to add 1 million more fiber passings.Ownership Structure of Network FiberCo
In this partnership, BCE will hold a 49 percent stake in Network FiberCo through its ownership of Ziply Fiber. PSP Investments will own the remaining 51 percent via its High Inflation Correlated Infrastructure Portfolio (HICI).
Strategic move into U.S.Broadband Market
The creation of Network FiberCo marks a notable step for BCE as it enters the U.S.broadband market. Mirko Bibic, President and CEO of BCE and Bell Canada, emphasized that this proclamation is crucial for BCE’s strategy to grow its fiber network. He noted that combining PSP Investments’ financial strength wiht Ziply fiber creates an efficient platform for expanding their presence in the U.S.
Recent Acquisition Details
Last November, BCE acquired Ziply Fiber for $5 billion using proceeds from selling its stake in Maple Leaf Sports and Entertainment earlier that fall. this significant investment sparked criticism towards Bell Canada and led to a decline in BCE’s stock prices.Criticism Over Job Cuts Amid Expansion Plans
Some critics expressed concern over Bell's decision to invest heavily in the U.S., especially given recent layoffs within Canada. Many were frustrated by what they saw as misplaced priorities during ongoing trade tensions under President Donald Trump’s governance.
This strategic partnership between Bell canada Enterprises and PSP Investments aims not only at enhancing connectivity but also at addressing gaps where service is lacking across various communities in America.
