In a strategic move to expand its presence in the U.S. broadband market, Bell Canada, a subsidiary of BCE, has announced its acquisition of Ziply Fiber, a leading fiber-to-the-home (FTTH) provider based in the Pacific Northwest, for approximately $3.65 billion. This acquisition marks a significant step for Bell Canada as it solidifies its footprint in the rapidly expanding fiber market in the United States, particularly in underserved rural and suburban regions.
Strengthening Bell Canada’s Fiber Strategy
The acquisition of Ziply Fiber will enable Bell Canada to leverage Ziply’s extensive fiber network in states like Washington, Oregon, Idaho, and Montana. As demand for high-speed internet access grows, Bell Canada’s investment underscores its long-term strategy to expand fiber-based services and reach more households, schools, and businesses with FTTH technology.
Mirko Bibic, CEO of Bell Canada, commented on the acquisition: “This move reinforces our commitment to growth in the fiber market, where connectivity is essential for thriving communities and robust economic development. Ziply Fiber’s established network in the Pacific Northwest is a natural fit for our expansion into U.S. markets, especially as we work to bridge digital divides in underserved areas.”
Expanding the Fiber-to-the-Home Market in the U.S.
Ziply Fiber, established in 2020 after acquiring assets from Frontier Communications, has quickly become a primary broadband provider in the Pacific Northwest, where its fiber services are often the primary high-speed option in rural and suburban regions. This acquisition will add approximately 1.6 million new locations across Washington, Oregon, Idaho, and Montana to Bell Canada’s fiber portfolio. Ziply’s network will be instrumental in helping Bell Canada meet the rising demand for high-speed, reliable internet connections in both residential and business markets.
According to the Fiber Broadband Association, fiber broadband penetration in the U.S. has grown unprecedentedly in recent years, driven by increased remote work, online learning, and demand for high-quality streaming services. By acquiring Ziply Fiber, Bell Canada is positioning itself to capture a share of this growing market.
“The U.S. FTTH market has seen substantial growth, and Bell Canada’s acquisition of Ziply Fiber is a clear indication of their commitment to being part of this evolution,” said analyst Mark Reynolds of Broadband Market Watch. “This acquisition provides Bell with access to a substantial network and supports its expansion strategy in a market ripe for fiber deployment.”
Addressing Connectivity Gaps in Rural and Suburban Communities
One of the primary benefits of the acquisition is the potential to enhance internet access in rural and underserved areas, a longstanding challenge in the Pacific Northwest. Ziply Fiber has focused on deploying fiber in communities with limited high-speed options, making it a valuable asset for Bell Canada’s portfolio.
Ziply’s CEO, Harold Zeitz, stated, “Our team is proud of our work to bring high-quality fiber internet to underserved communities in the Northwest. Partnering with Bell Canada will help us accelerate our mission to expand fiber access to even more people and businesses in the region.”
Industry experts have highlighted that this acquisition could set a precedent for future investments in rural fiber networks. “The acquisition of Ziply Fiber by a major Canadian telecom like Bell indicates that rural fiber networks in the U.S. are becoming attractive investment opportunities, especially as demand for reliable, high-speed connections continues to rise,” telecom strategist Linda Carr of Telecom Insights explained.
Regulatory Review and Future Steps
While the acquisition has been announced, it remains subject to regulatory approval from both Canadian and U.S. authorities. Bell Canada expects the deal to close within the next year, contingent on completing necessary reviews by the Federal Communications Commission (FCC) and other regulatory bodies.
Bell Canada plans to continue Ziply Fiber’s mission of expanding fiber access, focusing on rural connectivity and bridging digital divides. Following the completion of the acquisition, Bell intends to accelerate Ziply’s fiber buildout in these areas to ensure high-speed broadband reaches even more homes and businesses in the Northwest.
A Broader Shift in the Telecom Landscape
The acquisition of Ziply Fiber is part of a broader shift in the North American telecom industry, where major players are increasingly investing in FTTH to meet consumer demands and future-proof their networks. By expanding into the U.S., Bell Canada joins other major Canadian telecoms exploring cross-border investments to capitalize on growth opportunities in U.S. markets.
As FTTH becomes more central to digital infrastructure, Bell Canada’s acquisition could signal a new wave of investment by international companies in U.S. fiber assets. Experts predict that such acquisitions may increase competition in the broadband industry, pushing other providers to accelerate fiber deployment and expand into underserved regions.
References:
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Bell Canada. (2024, November). Bell Canada to acquire Ziply Fiber in $3.65 billion deal. Retrieved from https://www.bce.ca
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Fiber Broadband Association. (2023). Fiber broadband expansion in the U.S.. Retrieved from https://www.fiberbroadband.org
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Reynolds, M. (2024, November). Analysis of Bell Canada’s U.S. fiber expansion strategy. Broadband Market Watch.
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Carr, L. (2024, November). Implications of cross-border acquisitions in the U.S. fiber market. Telecom Insights.
