- Fibre deployment to Churchill homes and businesses to
deliver Gigabit Internet speeds, Canada's best TV service
- The fastest broadband access to the latest online services for residents, support for tourism, business innovation and
economic growth in the Polar Bear Capital of the World
CHURCHILL, MB, Aug. 29, 2016 /CNW Telbec/ - BCE Inc. (Bell) (TSX,
NYSE: BCE) and Manitoba Telecom Services Inc. (MTS) (TSX: MBT) today announced plans to expand broadband communications
infrastructure in the town of Churchill, including the introduction of next-generation Gigabit
Fibe Internet and Fibe TV services.
Part of the Bell MTS plan to invest $1 billion over 5 years to accelerate fibre and wireless
broadband communications services in Manitoba, the Churchill
infrastructure project will greatly enhance connectivity in the community and support innovation and economic development,
including in the region's growing international tourism industry with high-speed connections for Churchill resorts, hotels and lodges.
Located at the edge of the Arctic on Hudson's Bay, Churchill is a northern transportation hub
also known as the Polar Bear Capital of the World, attracting thousands of tourists from around the world each year for polar bear,
beluga whale and bird watching and as one of the best places to experience the Northern Lights.
"The upgrade to world-class broadband services will be a welcome and much needed addition to our community," said Michael Spence, Mayor of Churchill. "This innovative and critical piece of
infrastructure will greatly enhance tourism, support regional health care, and provide additional supports for our young people
through education and expanded research. In addition, the upgraded technology will support future opportunities for Canada's only
Arctic Seaport."
"Bell MTS is proud to contribute to the Churchill community. We plan to deliver world-class
communications services throughout Manitoba, from more remote communities like Churchill to the largest urban centres, all of which will benefit from the social, economic and innovation
opportunities enabled by advanced broadband networks like Fibe and mobile LTE," said Wade Oosterman,
Bell's Group President and Chief Brand Officer.
"Broadband communications infrastructure plays a vital role in attracting new businesses, residents and visitors by supporting
enhanced connectivity, security and development opportunities for everyone in the community. This Bell MTS service expansion will
help bring the world to Churchill, and Churchill to the world,"
said Patricia Solman, Senior Vice President, Network and Field Services for MTS.
"Our government welcomes investments that will enhance the safety and efficiency of trade, travel and tourism opportunities for
our province," said Minister Cullen, Minister of Growth, Enterprise and Trade. "We are optimistic that today's commitment by Bell
MTS will provide new opportunities for the diversification of business opportunities throughout the region."
"Today`s announcement is a positive step forward for rural Manitoba," said Chuck Davidson, President, and CEO of the Manitoba Chambers of Commerce. "Improved broadband is an issue facing
too many rural communities in our province. Providing rural businesses with the tools to be competitive will help them grow their
business and open up new opportunities. Bell MTS understands the importance of connecting people and is taking an important step
towards addressing rural concerns."
"This is an exciting development for Churchill," said Colin
Ferguson, President and CEO of Travel Manitoba. "Visitors from our international markets are looking for the kind of 'bucket
list' experiences that Churchill has to offer. World-class communications go hand in hand with
world-class tourism products."
Bell MTS: Better together, better for Manitobans
On May 2, Bell announced the acquisition of MTS in a transaction valued at approximately
$3.9 billion as well as a 5-year, $1 billion commitment to expand
broadband fibre and wireless communications services in Manitoba following the closing of the
transaction, expected in late 2016 or early 2017. The Bell MTS investment plan includes the rollout of:
- Gigabit Fibe Internet service, with average Internet speeds up to 20 times faster than those currently offered to MTS
customers.
- Fibe TV, the broadband television service renowned for its content and service innovation and ranked by consumers as the best
television service in Canada.
- Bell's award-winning LTE wireless network, offering average data speeds twice as fast as those currently available to MTS
customers.
In addition to the Churchill service expansion announced here today, Bell and MTS have also
announced plans for continuous broadband wireless coverage along Highway 75 in southern Manitoba
and the expansion of mobile and wireline broadband networks in northern Manitoba, including along
Highway 6 to Thompson, in Flin Flon and in 5 small indigenous
communities.
Following Bell's acquisition of MTS, the combined company's Manitoba operations will be known
as Bell MTS. Winnipeg will become headquarters for Bell's entire Western
Canada team, which will grow to 6,900 people in Manitoba, Saskatchewan, Alberta and British Columbia
with the addition of MTS's 2,700 Manitoba employees.
Caution concerning forward-looking statements
This news release contains forward-looking statements and information (collectively, the "forward-looking statements")
including, but not limited to those relating to a statutory plan of arrangement under section 185 of The Corporations Act
(Manitoba), pursuant to which, among other things, BCE intends to acquire all of the issued and
outstanding common shares of MTS (the Arrangement), the expected timing of, and certain strategic, operational and financial
benefits expected to result from, the Arrangement, our network deployment and capital investment plans in Manitoba, our business outlook, objectives, plans and strategic priorities, information concerning MTS and
BCE, and other statements that are not historical facts.
Forward-looking statements are typically identified by the words assumption, goal, guidance, objective,
outlook, project, strategy, target and other similar expressions or future or conditional verbs such as
aim, anticipate, believe, could, expect, intend, may, plan, seek,
should, strive and will. All such forward-looking statements are made pursuant to the "safe harbour"
provisions of applicable Canadian securities laws and of the United States Private Securities Litigation Reform Act of 1995.
Forward-looking statements, by their very nature, are subject to inherent risks and uncertainties and are based on several
assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially
from our expectations expressed in or implied by such forward-looking statements. As a result, we cannot guarantee that any
forward-looking statement will materialize and we caution you against relying on any of these forward-looking statements. The
forward-looking statements contained in this news release describe our expectations at the date of this news release and,
accordingly, are subject to change after such date. Except as may be required by Canadian securities laws, we do not undertake any
obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new
information, future events or otherwise. Forward-looking statements are provided herein for the purpose of giving information about
the Arrangement and its expected impact, including our network deployment and capital investment plans in Manitoba. Readers are cautioned that such information may not be appropriate for other purposes.
Completion and timing of the Arrangement are subject to a number of conditions precedent and termination rights, some of which are
outside MTS' and BCE's control, including, without limitation, receipt of the required regulatory approvals, the operation and
performance of the MTS business in the ordinary course until closing of the Arrangement, the absence of a material adverse effect,
including no award being in force, which would result in a material adverse effect and no action being pending or threatened (other
than frivolous or vexatious actions) against or involving MTS or its subsidiaries that, if decided against MTS or its subsidiaries,
would result in a material adverse effect, and compliance by MTS with various other covenants contained in the arrangement
agreement between MTS and BCE dated May 1, 2016, all of which are subject to important risks,
uncertainties and assumptions. There can be no certainty, nor can MTS or BCE provide any assurance, that all conditions precedent
to the Arrangement will be satisfied or waived and that the Arrangement will occur, or, if satisfied or waived, when they will be
satisfied or waived. If the Arrangement is not completed, the market price of MTS' common shares may be materially adversely
affected. Moreover, a substantial delay in obtaining the required regulatory approvals or the presence of an award or action that
would result in a material adverse effect could result in a prolonged extension of the outside closing date. The Arrangement could
be modified, restructured or terminated. There can also be no assurance that the strategic, operational or financial benefits
expected to result from the proposed transaction, as well as our network deployment and capital investment plans in Manitoba, will be realized. The nature and value of capital investments planned to be made in Manitoba over 5 years assume completion of the Arrangement as well as our ability to access or generate the
necessary sources of capital. However, there can be no assurance that the Arrangement will be completed or that the required
sources of capital will be available with the result that the actual capital investments made by us in Manitoba during such period could materially differ from current expectations.
For additional information on assumptions and risks underlying certain forward-looking statements made in this news release
relating, in particular, to our network deployment and capital investment plans, please consult BCE's 2015 Annual MD&A dated
March 3, 2016 (included in the BCE 2015 Annual Report) as updated in BCE's 2016 First and Second
Quarter MD&As dated April 27, 2016 and August 3, 2016,
respectively, filed by BCE with the Canadian provincial securities regulatory authorities (available at Sedar.com) and with the
U.S. Securities and Exchange Commission (available at SEC.gov). These documents are also available at BCE.ca. Additional information is also available in the Risks and uncertainties section of MTS's
2015 annual MD&A and MD&A for Q1 and Q2 of 2016, each of which are available at www.mts.ca/aboutus and on Sedar.com.
About MTS
At MTS, we're proud to be Manitoba's leading information and communications technology
provider. We're dedicated to delivering a full suite of services for Manitobans – Internet, Wireless, TV, Phone Service and
Security Systems plus a full suite of Information Solutions, including Unified Cloud and Managed Services.
We live where we work and actively give back to organizations that strengthen our communities. Through MTS Future First, we
provide sponsorships, grants and scholarships, value-in-kind support and volunteer commitment in Manitoba.
MTS Inc. is wholly owned by Manitoba Telecom Services Inc. (TSX: MBT). For more on MTS' products and services, visit mts.ca. For investor information, visit mts.ca/aboutus.
About Bell
Canada's largest communications company, Bell provides consumer, business and government customers with a comprehensive
and innovative suite of broadband wireless, TV, Internet and business communication services from Bell
Canada and Bell Aliant. Bell Media is Canada's premier multimedia company with leading assets in television, radio, out of
home and digital media. Founded in Montréal in 1880, Bell is wholly owned by BCE Inc. (TSX, NYSE: BCE). To learn more, please visit
BCE.ca or Bell.ca.
The Bell Let's Talk initiative promotes Canadian mental health with national awareness and anti-stigma campaigns like Bell Let's
Talk Day and significant Bell funding of community care and access, research, and workplace initiatives. To learn more, please
visit Bell.ca/LetsTalk.
Media inquiries:
Bell
Michelle Michalak
416-215-3021
michelle.michalak@bell.ca
MTS
Greg Burch
204-958-3230
media.relations@mts.ca
Investor inquiries:
BCE
Thane Fotopoulos
514-870-4619
thane.fotopoulos@bell.ca
MTS
Brenda McInnes
204-941-6205
investor.relations@mts.ca
SOURCE Bell Canada
