Bell Canada loses bid for Frontier Communications after $20 billion offer from Verizon
- Bell Canada sought to expand its presence in the U.S. telecom market by acquiring Frontier Communications.
- Verizon ultimately won the auction for Frontier with a $20 billion offer, outbidding Bell's attempts.
- The acquisition of Ziply Fiber indicates Bell's ongoing commitment to growth in the U.S. despite investor concerns.
In 2023, Bell Canada made a significant push towards expanding its operations in the U.S. telecom market. The Montreal-based company spent six months trying to acquire Frontier Communications, America’s largest pure-play fibre provider but ultimately lost out to Verizon, which made a successful bid of $20 billion. Following this setback, Bell acquired Ziply Fiber for $5 billion as part of its expansion strategy. The telecom firm had intended to leverage its fiber expertise in a market where internet infrastructure is less developed than in Canada. However, Bell faced skepticism from investors, evidenced by a 9% stock drop upon announcing the Ziply acquisition, which also included a pause on common-share dividend increases. Experts suggested Bell's plans would need to navigate significant competition in a rapidly evolving landscape, particularly from fixed wireless services gaining traction in the U.S.