BCE adds a provider

Article Excerpt

BCE INC., $59.87, is a buy. The company (Toronto symbol BCE; Shares outstanding: 911.9 million; Market cap: $55.5 billion; TSINetwork Rating: Above Average; Dividend yield: 6.2%) is Canada’s largest traditional telephone service provider. The telecom also offers wireless services and high-speed Internet access to consumers and businesses. That’s in addition to owning TV and radio stations. BCE has now agreed to acquire Ottawa-based Distributel Communications Limited for an undisclosed amount. This privately held firm provides Internet access services in Ontario, Quebec, British Columbia and Alberta. The purchase will bolster BCE’s plan to expand its high-speed Internet and TV services to more areas. However, the deal could face strong regulatory opposition as Distributel currently leases space on BCE’s networks and re-sells it to consumers and businesses at lower rates. If regulators approve the deal, BCE plans to operate Distributel as a separate entity rather than integrate it into the larger system. BCE Inc. is still a buy. buy…