The Federal Communications Commission (FCC) has officially approved Bell Canada’s proposed $3.65 billion (CA$5 billion) acquisition of U.S.-based internet provider Ziply Fiber, marking a major milestone in BCE Inc.’s expansion into the American broadband market.
In a public notice issued Monday, the FCC confirmed that the deal poses no risk to competition, citing a lack of geographic service overlap between Bell Canada and Ziply Fiber. The Commission further stated that the transaction is likely to deliver public interest benefits, especially in underserved rural communities.
The FCC praised the potential of the deal to expand high-speed fiber access by leveraging Bell Canada’s advanced infrastructure expertise. It also acknowledged BCE Holding’s commitment to meeting all federal high-cost support obligations, suggesting improved deployment timelines and connectivity reach.
Originally announced in November 2024, the acquisition supports Bell’s strategy to increase scale, diversify its operational footprint, and unlock new growth opportunities in the U.S. fiber internet market.
To finance the purchase, BCE plans to utilize approximately CA$4.2 billion in net proceeds from the planned sale of its stake in Maple Leaf Sports & Entertainment, with the remaining funds coming from a dividend reinvestment and stock purchase plan. If needed, a term loan facility will act as a backup funding mechanism.
Ziply Fiber currently serves over 1.3 million fiber-connected locations across four U.S. states, with plans to exceed 3 million within four years. The acquisition is expected to accelerate that expansion.
In May, BCE and the Public Sector Pension Investment Board (PSP Investments) announced the formation of a strategic partnership to launch Network FiberCo, a new wholesale network provider. PSP Investments has agreed to potentially invest up to $1.5 billion into the joint effort to further drive infrastructure development through Ziply Fiber.
This transaction significantly enhances BCE’s North American presence and is expected to influence valuations across the telecom sector, including Verizon’s pending $20 billion acquisition of Frontier Communications.
