MLSE Deal
In a deal to separate the tie between the 2 companies, Rogers Communication is now the majority owner of Maple Leaf Sports & Entertainment (MLSE), buying out the stake of its rival Bell Canada Enterprises (BCE) for $4.7B.
MLSE is the company that owns the Toronto Maple Leafs and Toronto Raptors and was until now co-owned by both Rogers and Bells, which can be described as a duopoly on communications services in their regions.
The deal is pending regulator and league approval. It also included access to content rights for the Toronto Maple Leafs and Toronto Raptors on TSN for the next 20 years.
“The Rogers and Bell co-ownership of MLSE was extremely unusual, likening it to “Coke and Pepsi owning a team together.
While the buyout might not make any immediate difference to fans, “what it should mean is that Rogers will spend like the Yankees and Dodgers and Lakers,” said Kaplan.
Cary Kaplan – President of Cosmo Sports Entertainment in Toronto on CBC
If the deal is concluded, Rogers will own 75% of MSLE, MLSE chair Larry Tanenbaum 20%, and the Canadian pension fund Ontario Municipal Employees Retirement System (OMERS) 5%.
The stock price reaction was muted for Rogers, with not much change in the news.
The same can be said for Bell, although it was received a little bit more warmly by the market.
Bell declared that it is selling its ownership stake to reduce its debt and “support its ongoing transformation” from a telecommunications firm to a tech company.
More Than Just TV Channels
Both companies are well known for their telecommunication offers through various mass media channels and are among the largest companies in Canada. However, they are also innovative companies diversifying their technology portfolio through direct investments, venture branches, and partnerships.
Overall, this deal is part of a consolidation of the telecom industry landscape in Canada, with both Bell and Rogers having made significant acquisitions and massive investments to evolve into full-fledged tech companies at the edge of connectivity and AI technologies.
In the long term, this should give them an edge in managing the transition toward ubiquitous IoT and connectivity.
Bell’s Innovations
Bell + Mila For AI Innovation
The AI research Institute Mila, based in Montreal and with 1,200 specialized researchers in machine learning signed with Bell in January 2024 an 18-month deal to improve customer experience and business performance.
For example, this extends to MyBell, an app letting Bell’s customers manage all their bills, accounts, services, etc. online.
“Becoming an AI leader is key to our transition from a traditional telco to a tech services leader. Working with a global leader like Mila right here in Montréal is a great opportunity for Bell to benefit from leading-edge researchers, advance our AI and Cloud expertise, further improve the customer experience, and establish our role as a technology services leader.”
Michel Richer, Senior VP – Enterprise Solutions, Data Engineering & AI at Bell Canada
Green Initiatives
Bell is also working on reducing its environmental impact. One such initiative is green cooling systems for IT.
The company is reducing its energy consumption and greenhouse gas emissions through multiple methods:
- Increasing computer rooms’ temperature from 24°Cto 30°C – 35°C.
- Using a CO2 thermosiphon to remove the need for energy-intensive pumps and harmful halocarbon gasses.
- Evaporative condensers.
This led to a 40% reduction in energy consumption, as well as an improved safety profile.
Cloud Computing
In May 2024, Bell acquired FX Innovation, a Montréal-based provider of cloud-based workflow automation for businesses.
It also signed a multi-year strategic agreement with ServiceNow that will be implemented by FX Innovation. The goals will be to:
- Create an AI-optimized experience to automate scheduling, better meet customer requests, and reduce drive time.
- Enhanced customer support to streamline order management, case management, and incident response processes.
- Speed up service deliveries to enable customers to get their needs met in a matter of hours or days versus weeks.
5G
Bell’s 5G and 5G+ network is one of Canada’s largest.
The 5G+ network will be deployed in limited areas of Toronto and Kitchener-Waterloo, and aims for peak theoretical download speeds of up to 4Gbps in select areas, with field test download speeds reaching 2Gbps. This makes it the fastest 5G network in Canada.
It also offers private 5G networks in partnership with Megalab for the mining industry, Cisco, and the PIER.
Bell Ventures
This branch of the BCE Group launched in 2022 is investing in early-stage tech companies relevant to Bell’s innovation strategy.
Source: Bell Venture
This includes for example:
- AST SpaceMobile, a space-based 5G cellular broadband solution.
- Gatikand BeWhere in logistics and inventory management.
- Sanctuary AI, a general-purpose humanoid robot.
- Tiny Mile, a small delivery robot solution.
- Innovation-focused funds, like Boreal Ventures(deeptech), Climate Innovation Capital (climate tech), DTCP (digital infrastructure), ScaleUp Ventures (early Canadian startups), Venture Reality Fund (VR, XR & AI), and McRock Capital (Industrial IoT).
Bimcor
Bimcor, a wholly owned subsidiary of Bell Canada, currently manages over $30 billion invested in a wide range of public and private financial assets, mainly on behalf of pension funds of Bell Canada and its various subsidiaries and affiliates.
It is one of the largest private-sector pension fund managers in Canada.
Roger’s Innovations
5G & High-Speed Telecommunications
Besides the ongoing “classical” 5G deployment, Rogers is also collaborating with CableLabs to use cable network infrastructure for 5G connectivity.
This “10G” technology allows for speeds up to 10 times faster than today with enhanced reliability and minimal latency.
This follows the acquisition by Rogers of Shaw in 2023, a cable telecommunication company, which made it the largest deal in Canadian telecom history.
In 2023, Rogers invested $3.9B to upgrade its network, especially on 5G and cable networks, with a total of $19B in the past 10 years.
This brought 5G services to new areas spanning 20,000 square kilometers and expanded the cable network to reach 90,000 more homes, making Rogers’ 5G network the largest in Canada.
Rogers also offers private 5G networks to companies operating in oil & gas, mining, utilities, logistics, etc, for example, Kirkland Lake’s gold mine is fully connected mine.
Space-Based Telecom
Rogers signed in 2023 an agreement with Elon Musk’s SpaceX (and its subsidiary Starlink) to bring satellite-to-phone coverage to Canada.
The companies plan to start with satellite coverage for SMS text and will eventually provide voice and data across the country’s most remote wilderness, national parks, and rural highways that are unconnected today.
“In the future, these investments will deliver wireless connectivity, including access to 911, to even the most remote areas.”
Tony Staffieri – President and CEO of Rogers
Not content to work with SpaceX, Rogers is also collaborating with Lynk Global for the same objective, ensuring the quick deployment of this capacity in Canada’s remote regions.
AI
Since 2022, Rogers pledged to invest C$10B in AI solutions to prevent further outages.
It is partnering with Comcast to use its built-in AI, cloud, and edge computing technology. This should identify network and service issues, improve performance, and increase the reliability of services like gaming, video conferencing, and 4K video.
The company is also using AI to help optimize traffic problems, optimizing traffic lights, lane management, and safety through AI, remote control, and the Virtual Management Center (VMC).
It is even looking at AI-managed radio, with SonicAI “beta testing their Radio GPT technology.”
“Where it makes sense, we have the AI voice identify themselves as AI to our listeners. The introduction of testing AI components on some of our radio stations is additive to and augments around our existing on-air radio talent.”
Wildfire detection
Rogers & SenseNet are using Roger’s 5G network in Alberta and British Columbia to connect gas sensors, smoke detection cameras, and AI algorithms to spot and detect early wildfires.
Rogers is also collaborating on wildfire detection with the University of British Columbia and BC Wildfire Service by using 5G sensors like the 5G-powered Pano AI cameras on wireless towers in Kelowna and Prince George.