PSP Investments and BCE Inc. announced today their plans to form a strategic partnership aimed at accelerating the development of fiber infrastructure in the United States. The partnership will result in the creation of a new wholesale network provider, Network FiberCo, with an investment of up to $1.5 billion.

The partnership is part of BCE's ongoing effort to expand its fiber infrastructure portfolio, with plans to leverage Ziply Fiber, a fiber internet provider in the Pacific Northwest of the U.S. BCE intends to acquire Ziply Fiber, a move first announced in November 2024. PSP Investments, one of Canada's largest pension investors, will contribute approximately $1.5 billion to support the new venture, strengthening the partnership's ability to scale fiber deployment across key markets.

Deborah Orida, President and CEO of PSP Investments, expressed enthusiasm for the partnership, noting, "We are pleased to partner with BCE, a longstanding Canadian champion of innovation and connectivity, to support the development of fiber infrastructure in Ziply Fiber's target markets. This partnership will generate sustainable, inflation-linked returns, contributing to our mission of supporting the retirement of those who protect and serve Canada."

Network FiberCo will focus on the last-mile fiber deployment in areas outside of Ziply Fiber’s existing service regions, potentially reaching up to 8 million fiber passings. The company aims to develop 1 million fiber passings in Ziply Fiber’s current states and up to an additional 5 million passings in new areas. This will position Ziply Fiber as a key player in enhancing connectivity in underserved communities.

Harold Zeitz, CEO of Ziply Fiber, shared, "This strategic partnership aligns perfectly with Ziply Fiber's mission to improve connectivity in the communities we serve. We are combining our operational expertise with BCE's scale and PSP Investments' financial strength to accelerate fiber deployment and drive long-term growth."

Under the terms of the agreement, BCE will hold a 49% equity stake in Network FiberCo through Ziply Fiber, while PSP Investments will own the remaining 51%, contingent upon the completion of BCE’s acquisition of Ziply Fiber. The joint venture is expected to be a scalable, capital-efficient platform, designed to fund the expansion of BCE’s U.S. fiber footprint.

Mirko Bibic, President and CEO of BCE and Bell Canada, commented, “Today’s announcement marks a pivotal step in BCE’s fiber growth strategy. With PSP Investments’ financial resources, we are well-positioned to accelerate our fiber expansion in the U.S., creating a more robust platform to enhance connectivity across North America.”

The transaction is expected to close in the second half of 2025, subject to customary closing conditions.

Legal teams from Simpson Thacher & Bartlett LLP advised PSP Investments, while Skadden Arps Slate Meagher & Flom LLP represented BCE in this landmark partnership.