BCE TAKES ON ASTRAL DEAL OPPONENTS
PLEDGES SPENDING
BCEInc. is hitting back at detractors of the telecommunications giant’s proposed takeover of Astral Media Inc., most notably Quebecor Inc.
The country’s biggest communications firm issued a release Wednesday saying it would pour tens of millions of dollars into Quebec’s broadcast industry as part of the $3.38-billion deal.
BCE also said it had no plans to relocate Montrealbased Astral out of the province, which is a core market for BCE’s Bell Canada Inc.
“Bell is shaking up the communications industry here in Quebec and right across Canada with a strategy of intense investment,” it said.
Bell said it will commit $80million to French-language programming and would provide a 5% incremental boost to content investment annually.
To win approval for the change of ownership of Astral’s broadcast licences, Bell must make financial commitments based on the value of each TV and radio property, with the so-called “tangible benefits” flowing into Canadian content production and other initiatives.
The release was issued a day after national wireless competitor Telus Corp. voiced its opposition of the deal, joining other corporate, consumer and political interests who have condemned the transaction.
Last week, Quebecor Inc., Cogeco Cable Inc. and EastLink launched saynotobell.ca, a campaign to rally public support against the takeover, which was announced in March.
The deal requires regulatory approval by the Canadian Radio-television and Telecommunications Commission as well as the Competition Bureau.
In submissions filed with regulators, such consumer groups as Public Interest Advocacy Centre and Quebec watchdog Option Consommateurs have also criticized the deal, which would cement Bell Media’s position as the largest television company in Canada and Bell as the biggest of the big integrated telecom/media conglomerates.
The companies and consumer groups worry Bell will use its heft to drastically lift costs for access to Bell content, or withhold key programming on traditional or new platforms such as wireless to drive subscribers to its services.
George Cope, Bell’s CEO, said in the release it was open for business. “Our competitors know that we’re ready and willing to make this great new content available to all their customers too,” he said.
Bell swiped at Quebecor in the release, suggesting the cable and media firm was Quebec’s real “giant,” owning a greater audience share in that province then a combined Bell-Astral would. It’s ownership of other media assets alongside its TVA broadcast network, such as publishing, give the “self-described ‘ communications giant’ ” the biggest slice of market share in the province across media.
The tie-up has not escaped political scrutiny in Quebec, headed toward a Sept. 4 election. Parti Québecois officials have also come out against the transaction.