The Financial Post reports in its Tuesday edition that BCE's proposed $3.9-billion acquisition of Manitoba Tel could signal the end of an era of federal policy prioritizing four wireless carriers in every market. The Post's Claire Brownell writes that BCE announced the agreement to buy Manitoba's largest teleco Monday, planning to make Winnipeg its new Western Canadian headquarters, if the deal closes. Around 50 per cent of Manitoba's wireless subscribers are MTS customers, with Rogers serving about 30 per cent, and BCE and Telus picking up the remainder with about 10 per cent each.
To help assuage potential regulatory concerns, BCE plans to sell about one-third of MTS's and Bell's Manitoba wireless subscribers to Telus, making the market share a more even split among the three national providers. The companies argue this will increase their incentive to compete on both price and network investment, but the deal would still reduce the number of major wireless carriers in the province to three from four.
Martin Masse at the Montreal Economic Institute said Ottawa's response to the deal will be a test of how much has changed under the Liberals. Mr. Masse says the feds should "stop obsessing about a fourth player."
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