- Bell to reduce planned network investment by over $1 billion in 2024-25, including a minimum of
$500 to $600
million next year as a direct result of the CRTC
decision
- CRTC decision leaves access to high-speed fibre Internet at
risk for millions of Canadians in rural, suburban and urban
communities
MONTRÉAL, Nov. 6, 2023
/CNW/ - Bell today announced its intention to reduce capital
expenditures by over $1 billion in
2024-25, including a minimum of $500
to $600 million in 2024, money the
company had planned to invest in bringing high-speed fibre Internet
to hundreds of thousands of additional homes and businesses in
rural, suburban and urban communities.
This reduction is in addition to Bell decreasing its 2023
capital expenditure budget by $100
million in anticipation of the CRTC decision to
unrelentingly pursue wholesale access at the expense of critical
network investment.
Bell's fibre network is now available to over seven million
homes and businesses. Prior to the CRTC's decision, Bell's
near-term plan was to build high-speed fibre to nine million
locations by the end of 2025. Bell will now re-consider pending
builds in all communities where it had planned to expand, and will
reduce its 2025 build target from nine million to 8.3 million
locations.
Rolling back fibre network expansion is a direct result of the
CRTC's decision. Today's decision forces Bell to open up its fibre
network in Ontario and
Quebec but does not mandate access
to fibre-to-the-premises networks in western Canada where there are
over three million fibre locations passed. If the intent of the
decision is to benefit consumers then it is arbitrary and
capricious to leave western Canadian consumers behind. When Bell
enters a community with high-speed fibre Internet, it increases
competition, and customers benefit from better service, better
value and lower prices.
"When others scaled back investment at the onset of the COVID-19
pandemic, Bell leaned in and accelerated our annual capital
expenditures to historic levels to provide Canadians with the
reliable connectivity that they needed. Since 2020, we have
invested over $18 billion in our
networks and expanded high-speed fibre Internet to over three
million homes and businesses across Québec, Ontario, Atlantic
Canada and Manitoba. When
public policy conditions in telecommunications support major
investments and job creation, Canadians in small and large
communities benefit directly from the best network technology
available."
- Mirko
Bibic, President and Chief Executive Officer, BCE and
Bell Canada
Bell's network expansion over the past four years has brought
high-speed fibre Internet to hundreds of communities in Québec,
Ontario, Atlantic Canada and Manitoba. Despite
this industry-leading investment, more than five million locations
on Bell's roadmap still do not have access to fibre technology.
Today's CRTC decision jeopardizes Bell's fibre network expansion to
many of these households and businesses.
Bell's fibre network delivers the world's fastest Internet
technology and helps bridge the digital divide, enabling people and
businesses in communities small and large to thrive. These private
sector investments in connectivity depend on the right public
policy conditions. By encouraging investment, the federal
government could provide more households and businesses of all
sizes access to high-speed Internet services and address
placed-based disparities that currently exist in this country.
Facts
- $1 billion invested in broadband
and 5G networks over one year generates an estimated $2 billion in economic activity and supports over
7,000 jobs at Bell and throughout our Canadian supply
chain.1
- Bell's pure fibre Internet and Wi-Fi was ranked the fastest in
Canada in Ookla's Q1-Q2 Speedtest
Awards report, the biannual analysis of wireline and wireless
performance across the country.2
- Bell Fibe delivers the world's fastest Internet technology with
reliable speeds multiple times faster than what cable competitors
offer.
- In 2022, we introduced Bell Gigabit Fibe 3.0, offering
symmetrical download and upload speeds of up to three gigabits per
second.
- On October 31, 2023, Bell MTS
launched Bell Gigabit Fibe 3.0 in Manitoba, bringing the fastest Internet speeds
to Manitobans in eligible areas.
- Bell Gigabit Fibe 8.0, now available in eligible areas of
Ontario, delivers download speeds
five times faster than cable technology and upload speeds 250 times
faster than cable technology.
Caution Concerning Forward-Looking
Statements
Certain statements made in this news release are forward-looking
statements, including statements relating to the expected reduction
in Bell's planned fibre network expansion and capital expenditures
following the CRTC's decision mandating Bell to provide resellers
with access to its fibre-to-the-premises network and the impacts
expected to result therefrom, our business outlook, objectives,
plans and strategic priorities, and other statements that are not
historical facts. All such forward-looking statements are made
pursuant to the "safe harbour" provisions of applicable Canadian
securities laws and of the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements are
subject to inherent risks and uncertainties and are based on
several assumptions which give rise to the possibility that actual
results or events could differ materially from our expectations.
These statements are not guarantees of future performance or
events, and we caution you against relying on any of these
forward-looking statements. The forward-looking statements
contained in this news release describe our expectations at the
date of this news release and, accordingly, are subject to change
after such date. Except as may be required by applicable securities
laws, we do not undertake any obligation to update or revise any
forward-looking statements contained in this news release, whether
as a result of new information, future events or otherwise. For
additional information on assumptions and risks underlying certain
of our forward-looking statements made in this news release, please
consult BCE Inc.'s (BCE) 2022 Annual MD&A dated March 2,
2023, BCE's 2023 First, Second and Third Quarter MD&As dated
May 3, 2023, August 2, 2023 and November 1, 2023 and BCE's news release
dated November 2, 2023 announcing its financial results
for the third quarter of 2023, filed by BCE with the Canadian
provincial securities regulatory authorities (available
at Sedarplus.ca) and with the U.S. Securities and Exchange
Commission (available at SEC.gov). These documents
are also available at BCE.ca.
About Bell
Bell is Canada's largest communications company,3
providing advanced broadband wireless, TV, Internet, media and
business communication services throughout the country. Founded in
Montréal in 1880, Bell is wholly owned by BCE Inc. To learn more,
please visit Bell.ca or BCE.ca.
Through Bell for Better, we are investing to create a better
today and a better tomorrow by supporting the social and economic
prosperity of our communities. This includes the Bell Let's Talk
initiative, which promotes Canadian mental health with national
awareness and anti-stigma campaigns like Bell Let's Talk Day and
significant Bell funding of community care and access, research and
workplace leadership initiatives throughout the country. To learn
more, please visit Bell.ca/LetsTalk.
Media inquiries
media@bell.ca
Investor inquiries
Richard Bengian
richard.bengian@bell.ca
_______________________________
|
1 Estimate calculated on the basis of
Table 36-10-0594-01, Input-output multipliers, detail level, from
Statistics Canada for the Communication engineering construction
industry.
|
2 Based
on analysis by Ookla® of Speedtest
Intelligence® data for Q1–Q2 2023.
|
3 Based
on total revenue and total combined customer
connections.
|
SOURCE Bell Canada