Bell Aliant
| Aliant | |
| Company type | Public TSX: BA.UN |
|---|---|
| Industry | Communications Services |
| Founded | 1999 |
| Headquarters | Saint John, NB |
Key people | Stephen Wetmore (President and CEO) |
 $2.1 billion CAD (2005)[1] | |
Number of employees | 8,900 (2005)[1] |
| Parent | Bell Canada |
| Website | bell.aliant.ca |
Bell Aliant Regional Communications is a communications company providing services primarily in rural areas throughout eastern Canada, as Aliant in Atlantic Canada and as Bell in central Canada. It is publicly traded through the Bell Aliant Regional Communications Income Fund (TSX: BA.UN), an income trust.
Bell Canada presently owns 73.5% of the group, to be reduced to 45% at some later point following a share distribution to existing shareholders of Bell's parent company, BCE. However, Bell will continue to exercise management control. Shareholders of the former Aliant Inc. received shares representing 26.5% of the firm.
History
The current firm is the successor to Aliant Inc., formed from the 1999 merger of Maritime Telephone and Telegraph Company (MTT), Island Telecom, Bruncor (parent of NBTel), and NewTel Enterprises (parent of NewTel Communications), then the four main incumbent telephone companies in Nova Scotia, Prince Edward Island, New Brunswick and Newfoundland and Labrador respectively. Aliant was approximately 53% owned by Bell Canada.
On March 7, 2006, Bell and Aliant announced plans to merge Aliant's operations into those of Bell. Specifically, Aliant's "high growth" wireless and retail (DownEast) networks would be folded into Bell's wholly-owned Bell Mobility and Bell World operations, respectively. Aliant, under a new income trust structure, would acquire Bell's "regional" landline operations (i.e. outside of major city centres) in Ontario and Quebec. The transaction was completed on July 7, 2006.
The purpose was to separate out the more stable (or low-growth) parts of Bell's holdings, i.e. wireline operations in markets with relatively little competition, to satisfy investors. The restructuring is not expected to have any effect on end consumers in terms of existing pricing or bundling practices. Meanwhile, Bell Canada proper continues to have full control over its wireless and satellite/cable operations throughout Canada, as well as wireline operations in major centres such as Toronto, Ottawa, Montreal, and surrounding areas.
Bell Aliant has also assumed Bell's 63.4% interests in both NorthernTel and Télébec, the remainder in both cases being owned by the Bell Nordiq Income Fund. Both firms continue to operate their own wireless networks.
Until 1999, Aliant Communications was the name of a small telephone company serving Lincoln, Nebraska and area, which was acquired that year by ALLTEL. Following this acquisition, Aliant Communications adopted the ALLTEL brand and transferred its rights in the Aliant name to the then-new Canadian entity.
Operations
Currently, the company operates as "Aliant" in Atlantic Canada and as "Bell" in Ontario and Quebec. Similarly, the former Aliant wireless and retail networks continue to use the "Aliant" brand in Atlantic Canada, albeit now under the direct control of Bell.
In Atlantic Canada, Aliant's services include high-speed and dial-up internet access, wireline telephone service, and IPTV cable television. Its main rivals are the region's incumbent cable providers - EastLink (N.S. / P.E.I.), Rogers Communications (N.B. / N.L.), and Persona (rural N.L.).
Services in Ontario and Quebec are similar, except that Bell Canada itself retains responsbility for any IPTV services there.
See also
External links
References
- ^ a b "Aliant Inc. 2005 Annual Information Form" (PDF). Retrieved 2006-07-11.
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