Bell takeover of MTS receives final approval

BCE Inc. cleared its final regulatory hurdle Wednesday to acquire Manitoba Telecom Services Inc., but it will have to transfer thousands of customers to another company to maintain competition in the province’s telecom sector.

The Competition Bureau and Innovation, Science and Economic Development Canada gave the green light to the $3.9-billion deal, which had already been approved by MTS shareholders. The deal, first announced last May, is set to close March 17.

The approval comes with a new requirement. Bell (TSX:BCE) and MTS (TSX:MBT) will have to transfer to Xplornet Communications Inc. — a privately held New Brunswick Internet service provider new to the wireless industry — more than 2500 MHz of wireless spectrum currently held by MTS, 24,700 wireless customers and six retail stores.

The measure is aimed at easing concerns from some Manitoba politicians and consumer groups that prices will rise and jobs will be cut once MTS — one of the country’s last regional carriers — is folded into Bell.

A top executive at Bell said Wednesday the deal will maintain competition and also lead to improved service, because Bell has promised to invest $1 billion over five years to improve Internet and wireless speeds and coverage in Manitoba.

“Internet services in Manitoba are 20 times slower than they are in the other parts of the country where Bell operates,” said Mirko Bibic, an executive vice-president and Bell’s chief legal and regulatory officer.