According to a release from Bell, it has entered into discussions to explore the possibility of a business combination with TELUS.
I can certainly understand the desire for both sides to glean information. What would a business combination look like that could survive a review from the Competition Bureau?
The consumer wireline assets are relatively isolated geographically with little if any overlap. On the enterprise side, Bell and TELUS are each others’ most significant competitors. Would Allstream or Rogers need to be part of the deal to spin out the ‘out-of-territory’ enterprise assets?
And what about wireless? A business combination would create the largest carrier in all markets, in the most lucrative, fastest growing segment of the industry. How would this kind of combination pass scrutiny from the perspective of a lessening of competition.
Within the context of the AWS auction consultation, there are so many questions about whether 3 national facilities-based carriers provide sufficient competition. A market contraction may lead many to consider a very different conclusion.