Acquisition by Bell
On May 2, 2016, BCE Inc. announced that it would acquire MTS in a $3.9 billion all-stock deal, paying $40 per share and assuming $800 million in debt. Following the closure of this purchase pending regulatory approval, the company will operate as Bell MTS, a subsidiary of Bell Canada; the acquisition was expected to be closed in late 2016 to early 2017. Bell committed to investing $1 billion over five years into expanding broadband service in Manitoba, and upgrading MTS's infrastructure to support new services, including Bell Fibe and LTE-Advanced. Bell will also base its Western Canadian operations out of Bell MTS in Winnipeg, increasing its staff to 6,900 employees. As a condition of the sale, Bell agreed to divest one-third of MTS Mobility's wireless subscribers and MTS retail locations to Telus; the divestment aimed to give the three national carriers (Bell, Rogers, and Telus) a roughly equal market share in Manitoba.[28][29][30]
The deal faced criticism for the possibility that it would result in a higher cost of services. Due to the market positioning of MTS as a fourth major wireless carrier in the region, the three major national carriers have historically offered lower prices in Manitoba to remain competitive. As such, with the removal of a competitor, there would no longer be an incentive to do so.[30][28] A similar business climate exists in Saskatchewan, where the three national carriers must compete against the dominant, government-owned regional carrier SaskTel.[31] A survey by the Angus Reid Institute found that 61% of those surveyed moderately or strongly disapproved of the deal.[32]
On December 20, 2016, the CRTC approved the sale of MTS's broadcast distribution undertakings to Bell.[33] On February 15, 2017, the deal was approved by the Competition Bureau and Innovation, Science and Economic Development Canada. To relieve concerns over the reduction of wireless competition in Manitoba post-merger, Bell additionally agreed to divest 24,700 customers, 6 retail locations, and wireless spectrum to rural internet provider Xplornet so it may launch its own competing wireless business. Bell will provide Xplornet with "expedited access" to its towers for five years, as well as roaming and handset stock. This aspect of the deal will maintain the presence of four competing wireless providers in Manitoba, with the fourth being a new entrant to the market.[34][35]
The acquisition closed on March 17, 2017; at this time, Dan McKeen (who led the integration of Bell Aliant into the company's national operations) was installed as the new head of the division, replacing the outgoing Jay Forbes. Along with the closure of the deal, Bell launched LTE service in Churchill, Manitoba.[36] Bell stated that it intended to maintain MTS's existing wireless pricing structure for at least a year after the closure of the acquisition.[35] Rates for all other Bell MTS services were raised in September 2017.[37] The MTS Centre was renamed to Bell MTS Place on May 30, 2017, following Bell Canada’s acquisition of MTS.[38]
In October 2018, Bell MTS began to integrate its wireless subscribers into the national Bell Mobility business.[39]
In late August 2019, Bell MTS announced that it will no longer serve some rural communities with wireless Internet service via the "rural Internet program" because of a decrease in wholesale fees mandated by the CRTC.[40]
On June 15, 2021, following the expiration of Bell MTS’ naming rights, True North Sports & Entertainment, the operator of Bell MTS Place, announced that the naming rights to the arena had been sold to Canada Life under a 10-year agreement.[41]
