In a move signaling BCE's ambitions beyond Canada, CEO Mirko Bibic announced earlier this week that the telecom giant will acquire Ziply Fiber, the leading fibre provider in the U.S. Pacific Northwest, in a $5 billion deal.

This acquisition, which will expand BCE’s fibre footprint into the U.S. market, marks a strategic push to grow BCE’s position as North America's third-largest fibre internet provider. In this exclusive interview, Bibic shares insights on the deal's rationale, what it means for BCE’s growth trajectory, and how the move reflects a shift in BCE’s strategy, including the decision to pause dividend growth and focus on new markets.

“International growth is not only good for customers, shareholders and employees, it is also good for Canada. We are home to many innovative and ambitious companies that have the talent and expertise to compete on the global stage—and we should be proud of this.”

BCE CEO Mirko Bibic

M&W: The acquisition of Ziply Fiber came as a surprise to markets and analysts—in part because it defies some common perceptions about how Canadian telecoms do business or should be doing business. For example, you've been criticized for relying heavily on dividends at the expense of growth. How do you respond to that, and do you agree the Ziply Fiber acquisition defies these notions?

Bibic: The acquisition of Ziply Fiber marks a historic milestone for Bell, one that enhances long-term growth, while increasing our scale, diversifying our operating footprint and establishing an operating platform for further expansion opportunities. Fibre expansion into the U.S. is right on strategy for us, and core to what Bell does really well. By seizing this opportunity, we will accelerate subscriber and revenue growth for Bell and generate long term, sustainable value for our customers and shareholders everywhere.

M&W: You’ve noted that entering the U.S. market signals a new level of ambition for BCE. How do you think Canadian policymakers should view this move?

Bibic: Entering the U.S. market will allow BCE to continue to scale and grow. I think most policymakers want to see important Canadian companies like BCE grow both here and abroad. International growth is not only good for customers, shareholders and employees, it is also good for Canada. We are home to many innovative and ambitious companies that have the talent and expertise to compete on the global stage—and we should be proud of this.

M&W: Some might wonder if this significant capital investment in the U.S. could have been directed toward expanding fibre access in Canada. Given the regulatory landscape here, was that a realistic option? How did U.S. market conditions play into the decision to invest there?

Bibic: Since I became CEO in 2020, millions of Canadians have gained access to our fibre networks thanks to BCE’s historic $22 billion accelerated capital expenditure program. Today we serve over 7.7 million Canadian homes and businesses with Bell pure fibre Internet. As we soon complete our five-year accelerated rollout, we intend to reach 8.3 million locations in Canada by the end of next year. We will continue to build out our fibre network here at home while also seizing upon growth opportunities like Ziply Fiber that are core to our business. At the end of the day, we will continue to allocate our shareholders’ capital responsibly and in areas where there is a sustainable business case for a reasonable return on investment.

M&W: Some pundits and policymakers say you should not be protected by Canada’s foreign ownership restrictions. Do you agree and would you prefer those restrictions be lifted? If the latter, could you discuss how lifting or adjusting these rules could benefit companies like BCE?

Bibic: Our acquisition of Ziply Fiber is proof positive that Bell is not looking to benefit from regulatory protections or ownership restrictions. We will compete with anyone be it here in Canada or abroad. The key is for public policy to create long-term investment stability through regulatory certainty and symmetry. This in turn enables access to capital, which allows businesses like Bell to plan for and execute on growth strategies like our accelerated fibre build out in Canada, and most recently our expansion into the U.S. fibre market. In this increasingly competitive global market, having greater access to international capital would help make Canadian companies stronger, especially when it comes to continued investments in the networks that Canadians rely on.

M&W: Where do you envision BCE’s next major investments?

Bibic: Our immediate priority is to complete this game changing acquisition of Ziply Fiber while continuing our transformation journey here at home. Along with our historic investments in building fibre networks, we are modernizing and putting customers first with a simpler and more personal approach, growing digital media at scale and creating a tech services organization by partnering with best-in-class cloud and tech platforms. In the enterprise market, we have recently made several strategic acquisitions that advance our goal to be the best systems integrator and managed services partner for our customers, with a particular focus on cloud services, workflow automation and security services. Looking ahead, we will continue to invest in key growth areas and strategic opportunities on both sides of the border where there is a reasonable return on investment.

“Our acquisition of Ziply Fiber is proof positive that Bell is not looking to benefit from regulatory protections or ownership restrictions. We will compete with anyone be it here in Canada or abroad. ”

— BCE CEO MIRKO BIBC

M&W: BCE’s decision to maintain the dividend is a departure from its traditional model. What would you say to Canadian policymakers or investors who might be surprised by this shift? How does it fit into a long-term strategy of balancing returns with sustainable growth?

Bibic: Our decision to maintain the dividend at its current level throughout 2025 is part of a responsible capital allocation strategy focused on driving growth and creating long-term, sustainable value for our shareholders. As the steward of an iconic Canadian company, our job as management is to generate growth and position Bell for success for decades to come. This is at the core of our U.S. fibre expansion, our accelerated Canadian fibre build and our ongoing transformation to put customers first through investments in modernization and simplification.

M&W: How does the regulatory framework in Canada differ from the U.S. in terms of market flexibility and investment freedom? Is it a more predictable market from a regulatory standpoint?

Bibic: Our decision to acquire Ziply Fiber is all about accelerating growth. With 50 per cent of U.S. households still without fibre access, the U.S. market offers significant growth opportunities that align with our core business while giving us greater geographic diversity. In the U.S., the costs to build fibre networks are lower, the regulatory environment is more predictable and there is no mandated fibre network access. Along with the growth potential, these aspects create a strong business case to build fibre in the U.S., in addition to rolling out more fibre in Canada where we can expect to see a reasonable return on investment.

M&W: You’ve argued that Canada has a stronger telecommunications infrastructure than the U.S. How does BCE plan to leverage this experience in building out Ziply Fiber’s network?

Bibic: In Canada, 75 per cent of households have access to fibre compared with only 50 per cent of households in the U.S. We are much faster and advanced in delivering the fastest Internet speeds at low prices than in the U.S. At Bell, fibre is the future. Back in 2010, Bell recognized that to remain competitive and sustainable in the years to come, we needed to replace our legacy copper networks with fibre. In 2020, we began to accelerate our fibre build and today millions of Canadians have access to the best broadband technology available. Today, fibre continues to be at the core of Bell’s purpose, and we see that same sense of purpose in Ziply Fiber’s culture.

M&W: While BCE focuses on growth, Canadian consumers are increasingly concerned about affordability in telecommunications. How does this U.S. acquisition fit into BCE’s strategy for addressing those concerns at home?

Bibic: The combination of Bell and Ziply Fiber will offer enhanced value for customers in both Canada and the U.S. as demand for faster, more reliable Internet and data services increases. Since 2020, Bell has invested $22 billion to expand our networks, which is advancing how Canadians connect with each other and the world. We made these historic investments over the same period when prices for cellular services declined by over 45 per cent and prices for Internet services fell by nearly seven per cent. We value our customers’ business, and we will continue to offer plans, bundles and new promotions that suit their needs, including for customers who are looking for affordable options.

M&W: The market reacted sharply to the Ziply Fiber acquisition, with BCE’s stock seeing a significant dip. What’s your perspective on the market’s response, and do you think this reflects concerns around the acquisition timing or broader industry trends?

Bibic: We made this acquisition for long-term growth, and we are allocating capital responsibly without compromising total shareholder return. The acquisition of Ziply Fiber will in large part be financed with proceeds from our recent sale of our stake in MLSE for $4.2 billion. The sale of MLSE and subsequent redeployment of that capital was the right thing to do at this point in our evolution. It allows us to move capital away from an asset that was not contributing to our bottom line and use it to fund significant growth in our core fibre business without materially increasing our debt leverage. At the same time, we maintained access to valuable sports content. The business case for the Ziply Fiber acquisition is very attractive, especially when you consider the market opportunity in the U.S. Northwest. Ziply Fiber plans to reach more than three million locations in the next four years and the company has few competitors that offer similarly fast Internet speeds. The benefits will become clear. This is a game changing move that will drive growth.