BCE (Bell Canada Enterprises) revealed that it is in talks with Telus to merge into a single company worth over CAD$50 billion. “TELUS believes the combination of the two businesses would represent a compelling strategic and financial opportunity for all BCE and TELUS stakeholders. It would be an all Canadian solution for both immediate and long-term value creation, whilst ensuring a vibrant player continues in this increasingly competitive industry,” said Darren Entwistle, President and CEO, TELUS.
If the two companies were to merge, they would hold about a 60 percent marketshare with about 10 million wireless customers. A merger would also further reduce the number of national wireless carriers down to two (Bell/Telus and Rogers), a concern that the Canadian Radio-television and Telecommunications Commission will likely look at closely before deciding to approve or reject to the merger. One option could be to let the two companies merge but have them divest themselves of a mobility division.
I have a feeling that such a merger would do absolutely nothing to reduce the high costs that we pay for wireless service here. But I would love to be proven wrong!