Ziply Fiber, BCE Holding Seek FCC Merger Approval

WASHINGTON, Dec. 10, 2024 – Canada’s largest telecom giant has submitted plans to join forces with the Pacific Northwest’s largest fiber provider.

Ziply Fiber and Bell Canada’s BCE Holding Corporation have filed a joint Section 214 application with the Federal Communications Commission, seeking approval for BCE Holding’s $5 billion acquisition of Ziply Fiber. The deal includes $3.65 billion in cash and $1.46 billion in assumed net debt calculated in U.S. dollars.

Ziply Fiber, based in Kirkland, Wash., serves over 1.3 million locations across Washington, Oregon, Idaho, and Montana. This acquisition marks Bell Canada’s first major expansion into the U.S. market, adding Ziply’s fiber footprint to Bell’s existing 9 million locations in Canada. Together, the companies plan to exceed 12 million fiber locations by 2028.

“The proposed transaction will result in significant public interest benefits for Ziply Fiber’s customers by combining Ziply’s strong and demonstrated commitment to the localities in which it operates with Bell Canada’s deep history and success in deploying fiber and other telecommunications infrastructure,” the 36-page joint application stated. 

Ziply said Bell was recognized in the filing for delivering Canada’s fastest Internet and wireless services, including in rural and hard-to-reach areas, such as Indigenous communities north of the Arctic Circle. 

“Bell Canada has experience with rural and geographically difficult buildouts, in some circumstances completing them with minimal or no financial assistance from the government,” the filing added. 

The FCC must approve the transfer of Rural Digital Opportunity Fund and Connect America Fund II support, along with Section 214 service authorizations.

The companies assured regulators the deal would not affect competition, customers, or Ziply’s existing regulatory obligations, and that Bell will honor Ziply’s commitments under U.S. national security agreements.