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MTS sold to Bell

PT1001
Joined: Dec 2013
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PT1001
Joined: Dec 2013
Posts: 779

MTS sold to Bell
5/2/2016 at 7:59 AM

MTS has been acquired by Bell Canada.

http://www.cbc.ca/news/canada/manitoba/manitoba-telecom-services-sells-allstream-business-for-465m-1.3330947
achuckrey
Joined: Jun 2011
Posts: 906

achuckrey
Joined: Jun 2011
Posts: 906

:.:
5/2/2016 at 8:17 AM

That's an old article from November about allstream to Zayo holdings. Here is the one about bell buying MTS.

http://www.cbc.ca/beta/news/business/bce-buys-manitoba-telecom-1.3561982

BillJ76
Joined: Dec 2015
Posts: 44

Joined: Dec 2015

Posts: 44

Shares

5/2/2016 at 9:14 AM

perhaps said "Has to be spproved by CRTC

Be interesting to see what happens with the value of shares a lot of Mts employees purchased shares

Maybe we will get improved cell service "

"BCE is offering $40 per share in cash or equity for the Winnipeg-based company's stock. MTS shareholders can elect to receive either cash or shares in BCE in exchange for handing over their shares in the company."

ultraguy
Joined: Jul 2005
Posts: 1096

ultraguy
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Posts: 1096

.
5/2/2016 at 9:27 AM

Get ready for price hikes. Cell plans in other provinces are around 50% higher because of a lack of local competition.
Adam

Joined: Mar 2005
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Adam
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Posts: 15663

MTS
5/2/2016 at 9:58 AM

Wow, that's a landscape shifter though wouldn't say a complete surprise as there have been rumours as long as I can remember!

Questions I'd have that folks may or may not have found answers to in stories elsewhere?...

- The cell network that most folks use today is shared by MTS and Rogers. Not sure what the exact agreement is or how long-term its in place, but how does this transition to being Bell and Rogers sharing the network long-term?

- Existing Bell and Telus subscribers get roaming access to the MTS/Rogers network. What kind of doors does this potentially open for existing Bell customers?

- What kind of roaming and cell plan doors does this open for current MTS customers?

- The MTS brand has a lot of history and clout in the province. Does it get phased out in favour of Bell, or is it kept in some way. Going to guess it in some way follows the footprint of Bell Aliant out East going by the reference to "Bell MTS" at this link http://www.winnipegfreepress.com/canada/newsalertbce-to-buy-manitoba-telecom-in-friendly-deal-worth-39-billion-377782931.html ?

- Locally Bell owns two radio stations. Possible synergies on the way?

- Does this set off any other kinds of sales/acquisitions? Sasktel looking awfully lonely now...

- Re stock, Bell is offering to pay quite a bit more than what it's traded at for quite some time. Closing price yesterday was $32.84, a substantial pop today to the $38ish its trading at right now (15%+).

- 1/3 of MTS stores will be sold to Telus. Wonder what if any local effect we might see from that?
pudds
Joined: Jun 2010
Posts: 247

pudds
Joined: Jun 2010
Posts: 247

.
5/2/2016 at 10:44 AM

This is bad.

In a perfect world, the CRTC would block this acquisition, but unfortunately, they've done nothing to stop the lack of competition in larger markets like Ontario, so I suspect it's fairly unlikely that we'll see them stop this takeover.

Manitoba has had one of the better cell phone and internet markets in Canada (along with Saskatchewan and Quebec), thanks to the competition provided by MTS. In southern Ontario, where no regional providers exist, "The Big 3" (Bell, Telus and Rogers) control the market with strikingly similar plans and jacked up rates.

Compare for example, the Rogers "Share Everything Plan":

Ontario - Unlimited Canada-wide calling, unlimited texting and 1 GB of data. $80.

Manitoba - Unlimited Canada-wide calling, unlimited texting and 2 GB of data. $50

How about internet?

MTS's mid-tier plan is 25 mbps, for $67 per month with no cap.

Bell's "Fibe 25" (also 25 mbps), is $69.95 per month, with a 125 GB monthly cap.

Better make sure you're happy with your current packages, because you're going to want to hang on to them for as long as you can while they get grandfathered in. You can bet money that if this acquisition goes though, none of them will be available this time next year.

Stay strong, Westman Cable, you're our only hope for good internet now.
Adam

Joined: Mar 2005
Posts: 15663

Adam
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Competition
5/2/2016 at 11:06 AM

The effect on competition and rates is definitely the elephant in the room that regulators are going to have to wrestle with.
Anyone that's had a conversation with someone in Alberta/BC/Ontario about their cell phone rates knows that we really truly do have it good in Manitoba and this effectively reduces the province from four major carriers to three. Stories out there of people that moved to Alberta but kept their Manitoba plan because of just how much they're saving. It would be hard to blame anyone that's a little skeptical about the end effect on rates we pay no matter who your carrier is.

FWIW, re the link below the topic of competition was brought up with Bell's CEO. Quote noted is that he feels "The market will remain just as competitive and maybe even more as a result of this".
http://business.financialpost.com/investing/market-moves/bce-to-buy-manitoba-telecom-services-in-3-9-billion-deal

Also worth noting from the link above that it's Bell's intent to make Winnipeg its Western Canadian HQ.

On the other side of the coin, when it comes to MTS I keep going back to their original access to iPhone as an example of how they were being hindered by being a smaller regional carrier. Took quite a while to eventually get a deal to offer iPhone while the larger carriers were selling it for quite some time. Having Bell behind them would put the kibosh on that kind of disadvantage with whatever tech evolutions there are going forward and hopefully for customers give the

Edited by Adam, 2016-05-02 11:17:57
Adam

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Posts: 15663

Adam
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Release
5/2/2016 at 11:48 AM

an opinion piece that suspects increases in the province are "likely":
http://www.michaelgeist.ca/2016/05/why-bells-plan-to-buy-mts-could-kill-the-governments-fourth-wireless-carrier-strategy/

and the official press release on the deal, which includes info on $1B in investments by Bell that are planned in Manitoba over five years. Does confirm that Manitoba operations would be known as Bell MTS:
http://www.newswire.ca/news-releases/bce-announces-agreement-to-acquire-manitoba-telecom-services-mts-577781571.html

Doug
Joined: Mar 2005
Posts: 6888

Doug

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Posts: 6888

Bad?

5/2/2016 at 1:55 PM

pudds said "This is bad.

In a perfect world, the CRTC would block this acquisition, but unfortunately, they've done nothing to stop the lack of competition in larger markets like Ontario, so I suspect it's fairly unlikely that we'll see them stop this takeover.

Manitoba has had one of the better cell phone and internet markets in Canada (along with Saskatchewan and Quebec), thanks to the competition provided by MTS. In southern Ontario, where no regional providers exist, "The Big 3" (Bell, Telus and Rogers) control the market with strikingly similar plans and jacked up rates.

Compare for example, the Rogers "Share Everything Plan":

Ontario - Unlimited Canada-wide calling, unlimited texting and 1 GB of data. $80.

Manitoba - Unlimited Canada-wide calling, unlimited texting and 2 GB of data. $50

How about internet?

MTS's mid-tier plan is 25 mbps, for $67 per month with no cap.

Bell's "Fibe 25" (also 25 mbps), is $69.95 per month, with a 125 GB monthly cap.

Better make sure you're happy with your current packages, because you're going to want to hang on to them for as long as you can while they get grandfathered in. You can bet money that if this acquisition goes though, none of them will be available this time next year.

Stay strong, Westman Cable, you're our only hope for good internet now. "

Maybe. Yet unless you lives in Winnipeg Kr Brandon overall I think not.

Manitoba has a lame aresed internet connection.
http://www.cantechletter.com/2016/05/western-canada-lags-behind-east-internet-speeds-says-study/

It seems we may be five bucks or more cheaper on some plans from Rogers or whoever because of MTS but we are about the slowest web wise because of if I think.

It could be argued small market and big province. Yet that applies to Saskatchewan and the territories . Rural Manitoba internet sucks plain and simple. Will Bell fix it? I doubt it but the old publicly owned MTS or the recently sold one's service record was sad. Bell can do no worse.

ultraguy
Joined: Jul 2005
Posts: 1096

ultraguy
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.
5/2/2016 at 2:56 PM

It's more like a 30% difference, not five bucks.

That internet speed study is questionable. It basically measures what people buy, not what's available. If Manitobans only buy slow internet, then the study will reflect that. Most people that I know are perfectly happy with their 10Mbps plans, even though there are faster plans available.

pudds
Joined: Jun 2010
Posts: 247

pudds

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Posts: 247

5/2/2016 at 4:28 PM

ultraguy said "It's more like a 30% difference, not five bucks.

That internet speed study is questionable. It basically measures what people buy, not what's available. If Manitobans only buy slow internet, then the study will reflect that. Most people that I know are perfectly happy with their 10Mbps plans, even though there are faster plans available. "

It's much more than a $5 difference, we pay $30 less for better service when it comes to cell phone plans.

I won't argue that our rural internet service is poor, but if you're expecting Bell to come in and improve the situation, I think you'll be disappointed.

Here's an article discussing the situation in rural Ontario, from just last year:

http://tvo.org/article/current-affairs/the-next-ontario/rural-ontarios-still-using-dial-up-speed-internet-heres-why

It will probably sound pretty familiar to anyone living in rural Manitoba.

Doug
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Posts: 6888

Doug

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Posts: 6888

plan

5/2/2016 at 6:07 PM

I understand it is more than five. Yet whatever deal you could weasel out of whoever Manitoba pricing through Rogers and I think Virgin and Bell on had a 5 further discount because we lived in Manitoba. A Rogers rep once told me why. Mandated?

Anyways because we had MTS we received great pricing on Cells. That will be gone soon .

Net speeds still is based on many things but numbers do not lie. That chart I linked to may not persuade some.

I will say the rural area around Westman has poor service.

JR
Joined: Nov 2007
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JR
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...
5/2/2016 at 7:03 PM

I just hope that my Rogers plan gets grandfathered so I can continue it month-to-month when my contract expires. I currently pay about $200 per month for 3 lines, each of which has unlimited everything and share a 15GB pool of data per month. Compare that to the single line 15GB plan in Ontario that goes for $155 per month (my base single line plan is $80). The loss of MTS is going to really hurt Manitoba cell phone users. I just might have to get a new "address" in SK and a phone number there WHEN the rate hike comes.
Adam

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Posts: 15663

Adam
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Posts: 15663

Regional differences
5/2/2016 at 7:09 PM

Link below is a real good look at regional disparities in pricing. For comparable 5GB talk and text plans, Winnipeg averages 65.76 vs 107.50 national average in 2015!
http://www.cbc.ca/beta/news/canada/manitoba/mts-bell-manitoba-plan-cost-rate-price-1.3562832

Edited by Adam, 2016-05-02 19:10:57
3wildboyz
Joined: May 2007
Posts: 1027

3wildboyz
Joined: May 2007
Posts: 1027

Cell....
5/2/2016 at 7:29 PM

I know whenever I have had to call Rogers customer service to inquire about my plan, they are shocked to see what we get in Manitoba for what we pay. They al wished they had the same opportunities. I am assuming this is to keep them competitive with MTS, and we may see that change if MTS plans change significantly.

As for Internet, we pay for the Lightning 50 plan and are lucky to get 20 MbPs download speed.
JessieJay
Joined: Mar 2016
Posts: 796

JessieJay
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Posts: 796

Rogers
5/2/2016 at 8:25 PM

uh oh. I wonder what it will cost me a year from now when I need to upgrade my phone. and I do need to upgrade it-this one I have has some quirks. I have the same plan as JR except 2 phones and the rocket stick. I pay $170 with taxes i:ncluded.

I don't care about MTS being gone but I won't be happy if it makes Rogers go up.
elkcip
Joined: Oct 2009
Posts: 122

elkcip
Joined: Oct 2009
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service
5/2/2016 at 8:47 PM

Does anyone have a bell phone?? How is their service?
ultraguy
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Posts: 1096

ultraguy
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.liuo8787
5/2/2016 at 9:39 PM

The deal still has to be approved by government, CTRC, etc. It will probably be 2017 before Bell gets permission to purchase the shares.
braid
Joined: Apr 2010
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braid
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and
5/2/2016 at 11:34 PM

Wait for it.....an exodus of jobs heading out of Brandon...
NI937
Joined: Apr 2015
Posts: 33

NI937
Joined: Apr 2015
Posts: 33

What about FTTH?
5/3/2016 at 1:01 AM

With Bell acquiring MTS, would they possibly offer fiber-to-the-home plans? Just ran a speed test of my internet on speedtest.net and getting 11.50/DL and 1.94/UL. I was expecting around 29mbps or slightly more.

BillJ76
Joined: Dec 2015
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BillJ76

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Posts: 44

...

5/3/2016 at 8:13 AM

ChrisDA said "

JR said "I just hope that my Rogers plan gets grandfathered so I can continue it month-to-month when my contract expires. I currently pay about $200 per month for 3 lines, each of which has unlimited everything and share a 15GB pool of data per month. Compare that to the single line 15GB plan in Ontario that goes for $155 per month (my base single line plan is $80). The loss of MTS is going to really hurt Manitoba cell phone users. I just might have to get a new "address" in SK and a phone number there WHEN the rate hike comes. "

You don't need a sk address to join sasktel. I have it and mb address. Never lived in sask. Service is better then mts ever was. "

lol what? Sasktel doesn't have a network in Manitoba. If you are roaming in Manitoba with a Sasktel phone you are still on the MTS network.

Adam

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Adam

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Bell/Mts

5/3/2016 at 8:13 AM

perhaps said "Says Bell is offering 40 per share to shareholders
Auntie has shares but hasn't received any offers from Bell
Anyone know if they are sending out offers to purchase to shareholders "

She won't have received anything yet. MTS has negotiated the deal and is recommending shareholders approve but there will still be more details coming along with opportunity to vote. This is from toward the end of the Bell press release:
[i]"A proxy circular will be prepared and mailed to MTS shareholders in the coming weeks providing important information about the transaction. MTS shareholders are expected to vote on the transaction in late June."[/i]

Not sure how the timing would work but assuming all goes through there will be a choice whether to receive $40 per share or the equivalent value in Bell shares. Good thing about the latter is that like MTS, Bell has been known to maintain a quite fat dividend... 4.66% as of close yesterday. MTS is suspending their dividend but at current price with this recent run up it worked out to 3.43%.. Granted if you've held MTS longer term you might've become accustomed to 5%+

Also someone above asked about upgraded internet speeds. This from the release section about investments they intend to make:
[i]"Gigabit Fibe Internet availability, delivering Internet speeds on average up to 20 times faster than those currently offered to MTS customers, within 12 months after the transaction closes."[/i]
So when you account for how long this deal could take to be voted on, clear regulator, etc you could be looking at 2 years before internet upgrades... And that assumes Brandon doesn't have the typical wait while Winnipeg is setup first.

ultraguy
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ultraguy
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.
5/3/2016 at 8:38 AM

MTS already offers Fiber to the Home. Most likely, Bell is just going to up the max speed for those homes from the current 250Mbps to gigabit. MTS could have already been planning to do it. I doubt that Bell is going to start replacing copper lines any faster than MTS was.
ajax11
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ajax11
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when
5/4/2016 at 5:16 PM

Does anyone know when this will take affect?

JR
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Joined: Nov 2007

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...

5/4/2016 at 5:41 PM

I know about that, but the plan I have with Rogers is better than what I can get on MTS or Sasktel. That's why I'd need the SK address - to keep a reasonably priced plan with Rogers.

Adam

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Adam
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When/if
5/4/2016 at 7:54 PM

At this point it's technically "if" rather than "when" since shareholders and federal regulators have to approve. They're saying they expect everything to close late this year or early next year if everything goes as expected. Until that point it's business as usual at all MTS stores including all local ones.
bailes
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bailes
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MTS
5/4/2016 at 8:53 PM

Has anyone thought what this might mean to the employees of MTS and what their future might hold? MTS has a lot of employees. Can't imagine what's going through their minds right now!
JR
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JR
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...
5/10/2016 at 6:44 PM

This deal isn't done yet and really shouldn't happen. The promise by Bell to invest $1B over 5 years is equal to the current MTS infrastructure spending of about $200M per year. There is no benefit to users here, and the deal would effectively cut off Rogers cell subscribers who currently have access to the modern MTS 4G LTE service.

There is also the matter of data caps, both in broadband and cell service. Currently, MTS is one of the few companies in Canada to offer unlimited bandwidth. Bell has made an obscene amount of money on "overage" charges in other parts of the country due to its data caps. Here's a quote from an article I've linked at the end of this post:

[i]... in markets that go from 4 to 3 wireless carriers, not only do prices tend to rise steeply but data caps become smaller and the cost of data on a per GB basis far higher.[/i]

This is a fairly complete and sourced analysis as to why the purchase of MTS by BCE would be bad for Manitobans:

https://dwmw.wordpress.com/2016/05/10/why-bells-bid-to-buy-mts-is-bad-news/

Doug
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Doug

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win/win.

5/10/2016 at 8:34 PM

JR said "This deal isn't done yet and really shouldn't happen. The promise by Bell to invest $1B over 5 years is equal to the current MTS infrastructure spending of about $200M per year. There is no benefit to users here, and the deal would effectively cut off Rogers cell subscribers who currently have access to the modern MTS 4G LTE service.

There is also the matter of data caps, both in broadband and cell service. Currently, MTS is one of the few companies in Canada to offer unlimited bandwidth. Bell has made an obscene amount of money on "overage" charges in other parts of the country due to its data caps. Here's a quote from an article I've linked at the end of this post:

[i]... in markets that go from 4 to 3 wireless carriers, not only do prices tend to rise steeply but data caps become smaller and the cost of data on a per GB basis far higher.[/i]

This is a fairly complete and sourced analysis as to why the purchase of MTS by BCE would be bad for Manitobans:

https://dwmw.wordpress.com/2016/05/10/why-bells-bid-to-buy-mts-is-bad-news/ "

I think it is mostly win/win.

There may be a few jobs lost but many if not all of those will slide over to the completion. Rogers will now need to build up infrastructure. More jobs in the short term.

New towers? People to maintain them etc.

I have heavily used WGMG/MTS/and Rogers . Caps have never been a issue. Speed though yes and MTS just never has been in the game with rural internet.

MTS just is not big enough for the new internet of things. Hardware upgrades needed will require a bigger revenue stream than MTS can get with our small population base and pretty big land mass.

Maybe Sasktel and MTS together might of.

Simonwalcal
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Simonwalcal

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...

5/11/2016 at 3:03 AM

bailes said "Has anyone thought what this might mean to the employees of MTS and what their future might hold? MTS has a lot of employees. Can't imagine what's going through their minds right now! "

I would be more concerned with the Bell employees myself.

Im guessing that most involved in the landline based services will just be transitioned. Same with most of the cell network techs.
The question for me would be what happens to the redindant staff. Some equipment in the current belus footprint is likley to be eliminated, thus for its mantinence personelle. Same goes for the store staff.

Then again, its may not be all that bad. If you can sell tech, there are plenty of options in and out of the carriers. And being the size of Bell, maybe a transfer elsewhere would be possible.