Canadian telco BCE has offered commitments to obtain approval from Canadian telecoms regulator CRTC for its US$3.41bn acquisition of Quebecois media firm Astral Media agreed in March.
BCE has offered to sell 10 radio stations across the country. The…
Canadian telco BCE has offered commitments to obtain approval from Canadian telecoms regulator CRTC for its US$3.41bn acquisition of Quebecois media firm Astral Media agreed in March.
BCE has offered to sell 10 radio stations across the country. The telco also pledged to contribute C$200m, including C$96m to develop domestic programming and C$61m to support and develop Canadian radio initiatives and talent. The investments are in line with CRTC policy that dictates that when a Canadian broadcasting licence is bought from another broadcaster, the buyer has to invest in the media industry. This effective tax, which should be 10% of the purchase price, is designed to offset the negative effects that industry consolidation can create for consumers.
However, C$40m of those “tangible benefits” has been earmarked for Northwestel, an operator in Canada’s remote north and a wholly owned subsidiary of BCE.
The money to Northwestel would go towards modernising its network, but the CRTC has previously ordered Northwestel to improve its systems. Local media reports suggest the regulator has subsidised the operator for years while the company has failed to upgrade its systems.
Canadian Prime Minister Stephen Harper appointed the CRTC’s new chairman, Jean-Pierre Blais, last month – how he handles BCE’s proposed remedies and investments is being touted as a bellwether case for his chairmanship.
A final verdict from the CRTC is not expected until mid-October at the earliest. The deal must also get the green light from Canada’s antitrust regulator the Competition Bureau.
