BCE: Firm Will Successfully Navigate Requirement to Offer Wholesale Access to Its Fiber Network

The Canada Radio-television and Telecommunications Commission announced an initial decision requiring telecom companies to allow resellers access to fiber networks in much of Ontario and Quebec. A review is ongoing, and although we expect mandatory fiber wholesaling to survive the final decision, we expect specifics to evolve. BCE is the only telecom firm materially impacted in Ontario and Quebec. BCE immediately announced that it would reduce fiber capital spending by $1 billion over the next two years. After considering the various ramifications of the CRTC’s decision, we are not changing our CAD 65 fair value estimate.