The reasoning behind BCE’s merger mania

Our vision at BCE is simple: To bring the world to Canadians and Canadians to the world through communications. That’s ambitious. But a vision must be powerful and far-reaching. This voyage will transform us, as well. Because to realize our vision, we must become the leading broad-based Canadian communications company in the Internet economy with the appropriate global footprint for connectivity and growth. Our Internet strategy is the tool that makes this possible. The three dimensions of our Internet strategy are connectivity, content and commerce. And like our vision, this strategy boasts the advantage of simplicity. Each of the Bell companies, as well as our recent acquisitions, reinforce one or the other of these three dimensions. Connectivity is the first link between our customers and the Internet. Whether by telephone, cellular service, our IP broadband network or satellite, consumers and companies can connect to the Internet using whatever access method suits them. Already, more than 900,000 subscribers across the country are using Sympatico service, including over 160,000 with high-speed connectivity. With the explosion of wireless communications and the Internet, Bell Mobility is in a privileged position. If the trend holds, Internet users will be turning to wireless access in very significant numbers. In fact, 30% of Bell Mobility subscribers have adopted our Data to Go and Mobile Browser services. And it is not hard to imagine the impact of such a trend on Bell Mobility’s business, especially through e-commerce and the Sympatico portal. Teleglobe I could hardly talk about connectivity without talking about Teleglobe, a mainstay of our Internet strategy and, above all, a key element of the long-term development of BCE and the Bell companies as a whole. Teleglobe is an international connectivity network. For BCE, this acquisition is a crucially important step in enabling the world to be in touch with Canadians and enabling Canadians to connect to the entire planet. In this age of globalization and e-commerce, it would be unthinkable for BCE not to have this capacity. BCE has the resources to make this transaction a success. It has the means; it has installed a first-class management team; and it has a steadfast determination to succeed. Within two or three years, Teleglobe will become a jewel in the BCE crown, making a substantial contribution to the group’s development and revenue and to the achievement of its goals. The second driving force of our Internet strategy is content. Connectivity and content are part of BCE’s raison d’être, given the critical need to secure content to supply our web-based properties. We want to do more than simply operate a network; we want to sustain it. The acquisition of CTV is fully in line with this strategy. It enables BCE to become a frontline player in the converging broadcast and new media sectors. It nicely rounds out BCE’s investments in Sympatico-Lycos and Bell ExpressVu. With CTV, BCE has significantly increased its access to original and distinctive content that will allow us to create unique destinations and experiences for web surfers through the Sympatico-Lycos portal and urban event sites. E-commerce Connectivity and content naturally lead us to talk about e-commerce, the third axis of our Internet strategy. The flagbearers of the BCE colours in this field are BCE Emergis and CGI. BCE Emergis (provides) integrated business-to-business — or B2B — e-commerce services. CGI offers a wide range of corporate ser-vices in the information technology sector. For the future, we remain resolutely focused on the Internet economy, while pursuing our three strategic goals: to increase Internet connectivity; to expand and enrich Canadian content for our Internet and entertainment services; and to consolidate our e-commerce leadership position in Canada. Jean Monty is chair and CEO of BCE Inc. The above is an edited excerpt of his speech to the Canadian Club in Montreal on September 11.

The reasoning behind BCE’s merger mania

News | 09/25/2000 4:00 am EDT

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