- Innovation Alley sponsorship supports Manitoba's digital economy with the fastest
Internet and wireless services for Winnipeg's unique downtown community of
students, creators and entrepreneurs
- Innovation Alley to be the Winnipeg launch point for Gigabit Fibe
Internet and LTE-Advanced wireless, part of the Bell MTS plan to
invest $1 billion over 5 years to
accelerate broadband communications services throughout
Manitoba
WINNIPEG, Sept. 27, 2016 /CNW/ - BCE Inc. (Bell) (TSX,
NYSE: BCE) and Manitoba Telecom Services Inc. (MTS) (TSX: MBT)
today announced a transformative investment in Manitoba's digital economy with plans to bring
the most advanced broadband and wireless services available to
Innovation Alley, the growing community of innovators,
entrepreneurs and artists in downtown Winnipeg.
Innovation Alley is a hub for innovators, entrepreneurs,
students and artists covering 4 city blocks in Winnipeg's West Exchange District.
Entrepreneurs with creative ideas can access the office space,
technology, mentoring and other resources available at Innovation
Alley, which is aligned with community economic development agency
North Forge Technology Exchange. The Innovation Alley cluster has
helped dozens of Manitoba
companies start and succeed in the digital innovation economy,
attracting tens of millions of dollars in private sector
investment, driving hundreds of millions of dollars in sales, and
creating hundreds of skilled jobs.
With this new 3-year Bell MTS sponsorship, Innovation Alley will
be the launch point for deployment of Gigabit Fibe Internet and
LTE-Advanced wireless following the closing of the Bell MTS
transaction. These broadband enhancements for Innovation Alley are
part of the Bell MTS plan to invest $1
billion over 5 years to accelerate broadband communications
services throughout Manitoba.
"We are taking our relationship with Innovation Alley to an
entirely new level with this announcement," said Jay Forbes, President and CEO of MTS. "Providing
state-of-the-art communications services and connectivity to this
community of entrepreneurs and artists will support the continued
growth and success of Innovation Alley. We are proud to continue
our long history of supporting both our community and
innovation."
"As a burgeoning centre of technology development and
opportunity, Innovation Alley is a key driver of Manitoba's growing digital economy," said
George Cope, President and CEO of
BCE Inc. and Bell Canada. "Bell is
delighted to join with MTS to enable the students, creators and
entrepreneurs of Innovation Alley to build even more Manitoba success stories with the power of
Canada's best broadband networks and services behind them."
"Technology companies in Manitoba are coming out of the gate looking
well beyond local markets to build distribution, talent, and
customers. Our companies need best-in-class technology backbone to
compete on the world stage, which is exactly what Bell MTS is
delivering," said Chris Johnson, CEO
of Permission Click, a global tech start-up with its head office on
Innovation Alley. "The Bell MTS injection into the entrepreneurial
and innovation space goes well beyond infrastructure; leading by
example, they are showing our community the importance of investing
in a future where new startup companies will get further, faster,
growing the sector and our economy as a whole."
"Cutting edge companies require world class networks and digital
infrastructure," said Jeff Ryzner
President of North Forge Technology Exchange. "Bell MTS have
announced transformational investments that will accelerate the
rate of growth of the innovation economy in Winnipeg, and attract more entrepreneurs,
generate more ideas and foster even greater collaboration within
our exciting startup community. This collaboration will grow from
the heart of Winnipeg and extend
to Manitoba's borders and
beyond."
"Our government understands the importance of fostering an
environment where the strengths and abilities of entrepreneurs can
flourish," said Brian Pallister,
Premier of Manitoba. "We welcome
investments in technology and innovation like those announced today
which will provide Manitoba
start-ups and businesses the opportunity to capitalize on new
opportunities."
"One of Winnipeg's best kept
secrets continues to be our emerging innovation and technology
sectors," said Mayor Brian Bowman.
"Innovation and technology fuel economic growth, and this historic
investment will help build Winnipeg for the future. Innovation Alley
demonstrates how our city is home to great ideas and people, and
with this investment from Bell and MTS, our entrepreneurs will have
additional tools to help them take on the world, break new ground,
and continue to achieve international success and recognition."
"Winnipeg continues to emerge
as a home to world-class innovation and development. Today's
agreement announced by Bell MTS and the Innovation Alley community
will help continue the momentum that is building in Winnipeg," said Dayna Spiring, President &
CEO, Economic Development Winnipeg. "The creative force of
Innovation Alley will scale to new heights thanks to Bell and MTS
and the powerful next generation communications technology they
will bring to customers right across Manitoba. This technology rollout will have a
significant impact on the innovation community in Winnipeg and across the entire provincial
economy."
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, and 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, offering access speeds up to 20 faster than
those currently available in Manitoba; Fibe TV, Canada's best TV service as
rated by consumers nationwide; and Bell's award-winning LTE
wireless network, acknowledged internationally as Canada's fastest
mobile service.
In addition to the support for the Innovation Alley community
announced today, Bell and MTS have also announced plans for
deployment of advanced broadband services to the town of
Churchill, 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
Jeremy Sawatzky
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