Bell’s purchase of MTS gets CRTC approval

Hey there, time traveller!
This article was published 20/12/2016 (3249 days ago), so information in it may no longer be current.

The Canadian Radio-television and Telecommunications Commission has approved the transfer of ownership of MTS’s TV broadcasting licence to BCE as part of the process of the compnay’s $3.9 billion purchase of MTS.

The approval by the CRTC only deals with the so-called broadcasting distribution undertaking (BDU) and does not address the broader telecommunications competitive or wireless spectrum issues of the deal.

The broader transaction still needs Competition Bureau and Innovation, Science and Economic Development Canada approval before it is able to close.

In its decision, the CRTC said, “The Commission finds that the transaction does not raise concerns with respect to Commission policies, regulations and the service’s conditions of licence. Further, the added functionalities of Bell Fibe TV and Bell’s commitment to invest in infrastructure improvements in Manitoba will benefit the broadcasting system as a whole.”

Interventions from the Manitoba branch of the Consumers’ Association of Canada expressed concerns that the transaction would “significantly reduce competition in Manitoba, and therefore reduce choice.” The Public Interest Advocacy Centre said that “there is evidence that vertically integrated BDUs have less of an incentive to offer customers options that promote choice, flexibility and ultimately, affordability.”

On Screen Manitoba, an organization that represents Manitoba’s media production industry, requested that there should be a provision requiring Bell to support the development, production and distribution of Manitoba-made content.

But the CRTC said that there are six BDUs in Manitoba, with Shaw being the largest in the province, so the transaction is consistent with the CRTC’s diversity of voices policy.

It said the BDU market share distribution in Manitoba, the availability of a $25 entry-level service as well as pick-and-pay and small package options, “are sufficient to ensure that consumers in Manitoba continue to have choices in television service providers and in packaging options for programming services.”

In light of Bell’s stated commitment to community television in Manitoba, “the Commission will not impose additional requirements on Bell to support the development, production and distribution of Manitoba-made content.”

Those who expressed their support for the transfer noted Bell’s intention to invest in infrastructure in Manitoba and the technological features of Bell’s television service, Bell Fibe TV, not currently offered by MTS, such as up to 320 hours of HD storage capacity, restart of live shows and a look-back functions of up to 30 hours.

In a release this morning MTS chief executive officer, Jay Forbes, said, “We are pleased to receive the CRTC’s decision and will continue to work with Bell to obtain the two remaining regulatory approvals… We remain optimistic that we will secure the necessary approvals from the Competition Bureau and Innovation, Science and Economic Development Canada along the timelines set forth from the outset, and continue to be excited about the benefits the new Bell MTS partnership will bring Manitobans.”

martin.cash@freepress.mb.ca