The satellite and wireless broadband provider Xplornet Communications has agreed to acquire 40 MHz of 700 MHz, AWS-1 and 2500 MHz spectrum from MTS. Bell/MTS will provide network roaming for Xplornet for up to three years, and once Xplornet's network is up and running, it will take over 24,700 customers and six shops from MTS as well.
While financial terms of this deal were not disclosed, BCE's other major concession will see it collect CAD 300 million from Telus for the sale of around a quarter of MTS's postpaid subscribers and another 13 shops. The sale is expected to close on 01 April, and customers will be migrated to Telus in the following months. Telus and Bell already cooperate on network sharing in rural areas of Manitoba.
As a result of the concessions BCE received approval from Innovation, Science and Economic Development Canada and the Competition Bureau for its CAD 3.9 billion acquisition of MTS. The takeover is expected to close on 17 March. Bell said it still expects to be the largest mobile provider in Manitoba, with over 470,000 customers on a pro forma basis.
Bell also increased its target for cost synergies from the deal, to CAD 100 million compared to CAD 50 million when the takeover was first announced in May 2016. The additional savings result from reduced roaming and network sharing, network backhaul and wholesale costs; increased wholesale revenue; Bell's volume-based purchasing advantages; and other operational efficiencies. The company said it will update its financial guidance for the takeover at its Q1 report in late April.
