BC Tel

BC Tel was the principal telephone company serving British Columbia, Canada, for most of the twentieth century. Its corporate origins date to 1904, when the Vernon & Nelson Telephone Company took over the Victoria & Esquimalt Telephone Company and the New Westminster & Burrard Inlet Telephone Company and changed its name to the British Columbia Telephone Company Limited. The company obtained a federal charter in 1916 and dropped the word “Limited” from its name. For much of its history, BC Tel operated within Canada’s regulated regional telephone-company structure. It provided local telephone service throughout British Columbia and developed long-distance, radio-telephone, wire-photo, and other communications capabilities. In areas where conventional wired infrastructure was difficult to build, the company used radio systems and operated through the North-West Telephone Company, a subsidiary chartered in 1929. This regional network model allowed BC Tel to extend communications service across a geographically varied province, including remote and coastal areas. The company’s ownership and corporate structure changed several times. Theodore Gary & Company acquired a substantial interest in BC Telephone in 1926 through the Anglo-Canadian Telephone Company. After Theodore Gary was combined with General Telephone and Electronics in 1955, GTE became a majority owner of BC Telephone. In 1954, BC Telephone also purchased the federal government telephone system west of the Rocky Mountains, with the resulting operations divided between BC Telephone and the North-West Telephone Company. The North-West Telephone Company was formally merged back into its parent in 1961. BC Tel expanded beyond conventional telephone operations during the period of technological and regulatory change that followed the 1970s. In 1979, it acquired Automatic Electric Canada and created AEL Microtel, later shortened to Microtel. It also established BTE—Business Terminal Equipment in 1982 to compete in the increasingly open telephone-equipment market. In 1985, BC Tel formed BC Cellular as competition entered the cellular telephone business. The same year, Canadian long-distance service was opened to competition after regulatory changes by the Canadian Radio-television and Telecommunications Commission. In 1993, BC Telephone reorganized under the holding company BC Telecom Inc. and adopted BC Tel as its legal and commercial name. During the 1990s, the company faced a substantially changed competitive environment, shaped by telecommunications deregulation and rivalry among fixed-line, cellular, and other transmission technologies. BC Tel subsequently combined with Telus, the telephone operating company based in Alberta. The transaction was described as a merger of equals and was completed in the late 1990s; references commonly identify the combination as occurring in 1998 or 1999. The resulting organization initially used the name BCT.Telus and became Canada’s second-largest telecommunications company after Bell. It was later rebranded as Telus, with headquarters in Burnaby, British Columbia. BC Tel therefore no longer operates as an independent telecommunications brand, although its infrastructure, corporate history, and regional operating legacy form part of Telus’s Canadian business history.

BC Tel’s history began in 1904, when the Vernon & Nelson Telephone Company took control of the Victoria & Esquimalt Telephone Company and the New Westminster & Burrard Inlet Telephone Company. The acquiring company changed its name to the British Columbia Telephone Company Limited, establishing the corporate identity that would become the dominant telephone operator in the province. A federal charter followed in 1916, after which the company dropped “Limited” from its name. The company developed within Canada’s system of regional telephone monopolies. In 1926, Theodore Gary & Company acquired a significant interest in BC Telephone through the Anglo-Canadian Telephone Company. The following year, BC Telephone participated in Canada’s first coast-to-coast radio broadcast for the Diamond Jubilee. In 1929, it obtained a charter for the North-West Telephone Company, a subsidiary intended to serve locations where wired connections were difficult. Radio telephony was used experimentally to connect Powell River and Campbell River across approximately 80 kilometres of water. BC Telephone’s network faced serious physical challenges. A severe 1935 storm damaged approximately 1,500 poles and 700 miles of wire in the Fraser Valley and left 1,800 Victoria telephones out of service. The trans-Canada toll line was not restored until February 10. In 1939, during the royal visit, photographs were transmitted from Vancouver through wire-photo service, illustrating the company’s role in introducing communications technologies beyond ordinary voice calls. In April 1954, BC Telephone purchased the federal government telephone system west of the Rockies. The resulting operations were divided between BC Telephone and the North-West Telephone Company. When Theodore Gary was merged with General Telephone and Electronics in 1955, GTE became a 50.2 percent owner of BC Telephone. The North-West Telephone Company was eventually merged into its parent in January 1961. BC Tel diversified during the late twentieth century. Its 1979 acquisition of Automatic Electric Canada led to the formation of AEL Microtel, subsequently shortened to Microtel. In 1982, the company created BTE—Business Terminal Equipment to compete in the newly deregulated equipment market. It entered cellular service through BC Cellular in 1985. That same year, the CRTC restored competition in long-distance telephone service, weakening the protected operating model that had characterized the company’s earlier decades. A corporate reorganization in 1993 placed the business under the holding company BC Telecom Inc. and changed the legal name to BC Tel. During the 1990s, deregulation and competition between fixed-line and cellular technologies transformed the Canadian telecommunications industry. BC Tel ultimately combined with Telus, the Alberta telephone operator. The transaction is variously dated to 1998 and 1999 in descriptions of the merger and its implementation. The combined company initially used the name BCT.Telus and soon adopted Telus as its brand. It was headquartered in Burnaby, British Columbia, and became Canada’s second-largest telecommunications company after Bell. BC Tel ceased to exist as an independent operating brand, but its provincial network and organizational history became part of Telus.

1. 1998Merger with Telus

   BC Tel combined with Telus in a transaction described as a merger of equals; the resulting organization later adopted the Telus name.

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2. 1993BC Telecom reorganization

   The company reorganized under BC Telecom Inc. and adopted BC Tel as its legal name.

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3. 1985Long-distance competition restored

   The CRTC restored competition in Canadian long-distance service, and BC Tel formed BC Cellular.

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4. 1982BTE formed

   BC Telephone established BTE—Business Terminal Equipment to compete in telephone equipment.

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5. 1979Microtel business created

   The acquisition of Automatic Electric Canada resulted in AEL Microtel, later renamed Microtel.

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6. 1961North-West Telephone Company consolidated

   The subsidiary was formally merged into BC Telephone.

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7. 1954Federal western telephone system acquired

   BC Telephone purchased the federal telephone system west of the Rocky Mountains.

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8. 1929North-West Telephone Company chartered

   A subsidiary was created to use radio telephony in regions that could not readily be reached by wire.

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9. 1916Federal charter granted

   The company received a federal charter and removed “Limited” from its name.

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10. 1904British Columbia Telephone Company established

    The Vernon & Nelson Telephone Company took over two regional telephone companies and adopted the name British Columbia Telephone Company Limited.

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Former regulated regional telecommunications operator serving British Columbia, later expanded into equipment and cellular communications before becoming part of Telus.

• Local telephone serviceFixed-line telecommunications1904

  BC Tel’s core business was the provision of local telephone connections throughout British Columbia. Its network formed the provincial fixed-line infrastructure used by residential, commercial, and institutional customers during the company’s period as the region’s principal telephone operator.

• Long-distance telephone serviceVoice telecommunications

  Long-distance calling was an important part of BC Tel’s traditional telephone operations. The service was provided within a regulated regional-carrier environment until Canadian regulatory changes restored competition in long-distance service in 1985.

• Radio telephonyWireless telecommunications1929

  Through the North-West Telephone Company, BC Telephone used radio telephony to connect locations that were difficult to reach with conventional wire. An early experiment linked Powell River and Campbell River across approximately 80 kilometres of water.

• MicrotelTelecommunications equipment1979

  BC Telephone created AEL Microtel after acquiring Automatic Electric Canada in 1979. The business was later shortened to Microtel and represented the company’s expansion from network operation into telecommunications equipment.

• BTE—Business Terminal EquipmentTelecommunications equipment1982

  Formed in 1982, BTE was intended to compete in the newly deregulated business-terminal-equipment field. Its creation reflected BC Tel’s effort to participate in equipment markets as regulation opened new areas to competition.

• BC CellularMobile telecommunications1985

  BC Cellular was established in 1985 as BC Tel’s entry into the emerging cellular telephone business. It was part of the company’s response to the growing importance of wireless transmission and competition with fixed-line networks.

• 1998Merge with TelusM&A

  Deregulation and competition between fixed-line and cellular technologies changed the economics and strategic requirements of regional telephone operators.

  What changed. BC Tel combined with Telus, the Alberta telephone operating company, in a transaction described as a merger of equals.

  Aftermath. The combined company initially used the name BCT.Telus, became Canada’s second-largest telecommunications company after Bell, and subsequently adopted the Telus brand. The merger is also described in some accounts as being completed in 1999.

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• 1993Reorganize under BC Telecom and adopt BC TelStrategy

  The company was restructuring as the Canadian telecommunications sector moved toward greater competition and technological convergence.

  What changed. BC Telephone reorganized under the holding company BC Telecom Inc. and changed its legal name to BC Tel.

  Aftermath. BC Tel became the principal public-facing identity before its later combination with Telus.

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• 1985Enter cellular telecommunicationsStrategy

  Wireless transmission was becoming an important alternative and complement to fixed-line telephone service.

  What changed. BC Telephone formed BC Cellular to compete in the cellular telephone business.

  Aftermath. The move broadened BC Tel’s operating scope beyond traditional wired telephone services.

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• 1979Acquire Automatic Electric Canada and create MicrotelM&A

  BC Telephone sought to broaden its activities beyond regulated telephone-network operations.

  What changed. The company acquired Automatic Electric Canada and formed AEL Microtel, later renamed Microtel.

  Aftermath. The transaction established a telecommunications-equipment activity within the wider BC Telephone group.

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• 1929Use radio telephony for remote and coastal connectionsStrategy

  Parts of British Columbia were difficult to serve with conventional wired telephone infrastructure, particularly across water and in remote areas.

  What changed. BC Telephone obtained a charter for the North-West Telephone Company and used radio telephony, including an experimental connection between Powell River and Campbell River.

  Aftermath. The subsidiary became part of BC Telephone when it was formally merged into the parent in 1961.

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• 1998BC Tel and Telus combine

  BC Tel merged with Alberta-based Telus in a transaction described as a merger of equals, creating Canada’s second-largest telecommunications company after Bell.

  M&A
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• 1993BC Telephone reorganizes as BC Telecom and adopts BC Tel

  The company reorganized under the holding company BC Telecom Inc. and changed its legal name to BC Tel.

  Leadership change
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• 1985Long-distance telephone competition returns in Canada

  The CRTC restored competition in Canadian long-distance telephone service, changing the operating environment for incumbent regional carriers.

  Regulation
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• 1985BC Cellular is formed

  BC Tel created BC Cellular to compete in the emerging cellular telephone market.

  Product launch
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• 1982BC Tel establishes a business-equipment unit

  BTE—Business Terminal Equipment was formed to compete in the newly deregulated telephone-equipment field.

  Other
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• 1979BC Telephone enters telephone equipment manufacturing

  The company acquired Automatic Electric Canada and formed AEL Microtel, later known simply as Microtel.

  M&A
  Source
• 1961North-West Telephone Company merges into its parent

  The North-West Telephone Company was formally consolidated with BC Telephone.

  M&A
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• 1955GTE becomes majority owner of BC Telephone

  Following the combination of Theodore Gary and General Telephone and Electronics, GTE became a 50.2 percent owner of BC Telephone.

  M&A
  Source
• 1954BC Telephone purchases the federal telephone system west of the Rockies

  The federal government telephone system west of the Rocky Mountains was purchased and its operations were divided between BC Telephone and the North-West Telephone Company.

  M&A
  Source
• 1929North-West Telephone Company created for difficult-to-reach areas

  BC Telephone established a subsidiary intended to use radio telephony in parts of British Columbia where wired connections were impractical.

  Other
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• 1916BC Telephone receives a federal charter

  The company obtained a federal charter and removed “Limited” from its name.

  Other
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• 1904BC Telephone Company adopts its original provincial operating identity

  The Vernon & Nelson Telephone Company took over two regional telephone companies and changed its name to the British Columbia Telephone Company Limited.

  Other
  Source

1. BC Tel