BCE, Bell Canada the plunging phone company

More bad news for BCE.. The past False, misleading advertisements, bad management, Download cappings, have all lead to this. Shares of BCE tumbled $13.10, or 34 per cent, to $25.25, trimming 102 points from the S&P/TSX composite index, after accounting firm KPMG said it couldn’t certify the solvency of the company before the Dec. 11 deadline for the deal to close. A group of private equity investors led by the Ontario Teachers Pension Plan agreed to pay $42.50 a share for BCE in the biggest leveraged buyout of all time. But the subsequent stock market crash, four quarters of declining profits, and a ballooning pension fund deficit have pushed the value of the company so low, it might not be able to service the mountain of debt that would replace shareholder equity after the buyout. http://www.canada.com/vancouversun/news/business/story.html?id=2d87f9bc-b646-4762-947d-514ef7fc32d0   http://www.theglobeandmail.com/servlet/story/LAC.20081128.RVOX28/TPStory/Business

BCE says Teachers’ buyout ‘unlikely to proceed’ if solvency opinion not improved Wed Nov 26, 5:48 PM MONTREAL – Bell Canada’s roller coaster ride to privatization may finally crash under the weight of its prospective massive debt after an accounting firm raised serious doubt that the world’s largest leveraged corporate buyout could succeed. I am always amazed how they had wrongfully thought they could continue to abuse their own customers and next get away with it still too.. they had wrongfully failed to use profits to upgrade their old, obsolete phone lines, equipment too.. as a result lost many customers to the cable ISP too. They now really do not deserve any Business bail out by the taxpayers or the government.

Bell has always had it’s spin doctors spin, lying..  “But still “It’s getting hard to figure out the upside on the BCE story   It’s very difficult to say what’s priced into the stock, but make sure you know the risks before you pile into BCE. There may be some hidden ones. And there might be some positive surprises too.  Before the announcement of this deal, the shares traded between $26 and $28. The stock is trading at about $25 now.  The cable companies are doing better…  Then there’s the competitive landscape. It’s ferocious out there, with well-funded cable, VoIP and new wireless entrants moving in with their elbows high.  There are three sources of potentially good news. The first is that BCE upgrades its land line network and makes inroads into television. That’s hard to bank on and, even if you do, it’s tough to figure out the upside. The second is the network-sharing agreement with Telus, which should yield strong returns. And finally, there’s “Belus.” Most of us find it hard to believe that the Competition Bureau would let a merger with Telus happen, or that it would let the merged entity cherry pick its divestitures…   If none of these scenarios moves you, though, you’re probably better investing in the cable companies. As illustrated in this space not long ago, they are walloping the telcos because they generally have better technology. Where broadband goes, in the words of research firm Sandford Bernstein, so voice and video follow. In Canada, Rogers has mobile and Shaw is poised to move in. They’re more expensive, true, but in the long term, they seem to have more promise.”

A recent report by KPMG, acting as valuation firm, found that the amount of debt involved in the privatization of BCE (BCE), the parent of Bell Canada, would essentially render the company insolvent. As a result, the parties have called off the deal.
      

Dec 11, 2008 BCE’s shares have fallen by almost half since Teachers’ made its C$42.75-a-share bid. BCE dropped 59 cents, or 2.6 percent, to C$22.43 at 12:50 p.m. in Toronto.The stock fell 34 percent on Nov. 26 on concern that KPMG was unlikely to bless the deal because of the C$34 billion in bonds and loans needed to finance the purchase. The company hired PricewaterhouseCoopers LLP in an unsuccessful effort to persuade KPMG to change its opinion.  .  BCE lost 72,000 home-phone lines last quarter as customers switched to wireless lines or to cable companies such as Rogers. BCE’s wireless unit, which makes up a quarter of sales, grew at less than half the rate of Rogers’s mobile unit. BCE must also realistically decide whether to invest in the much need fiber-optic lines for its home customers and whether it should provide Internet- based TV service to compete with the cable firms too http://www.bloomberg.com/apps/news?pid=20601082&sid=ayi6TCn22gaQ&refer=canada

BCE takes low road as deal fails For all BCE’s protests, the world’s largest leverage buyout just failed because lawyers for the telecom company inserted a requirement in the deal that stated BCE needed to get a favourable solvency opinion. When KPMG, a reputable accounting firm, weighed in with a final opinion that  BCE didn’t meet solvency standards, the deal died. OnceBCE agreed to a buyout, they muffed the job of closing the deal.
http://www.theglobeandmail.com/servlet/story/RTGAM.20081211.WBstreetwise20081211113644/WBStory/WBstreetwise

 

 

 

Clearly you cannot trust too often crooked Bell or the CRTC . Why is Bell allowed to control stuff that isn’t theirs?  ” However I do have a problem with wholesalers, customers not being able to use the full speed of a network. After all, they pay for the full speed when getting it from the phone companies. They should get the full speed.  ”  Bell’s known poor acts, actions deserve all kinds of vilification.  What a completely asinine company Bell is. I will never, ever deal with them again. Worst company I’ve ever encountered, what stupid business practices. ” Bell’s actions too often are still motivated by a desire to undermine competition  and increase their customer base seems too often as well to lose more customers.. “Bell and Rogers caused a lot of the problem themselves, with selling so called “unlimited” packages, only to find new applications use more bandwidth than they have available ot had deployed. “
“It is not just about the price too,   Bell can be real jerks to its customers. I used to be one until I got sick of their lack of customer service, etc., and even having 2 provides Bell and Rogers/local cable provider essentially in Ontario will NOT decrease prices. Look at the current cell-phone market as an indirect example of how low competition keeps prices high. ” ” and are they Bell and the others going to put unadvertised cap on how much we could download because basically the can to meet their advertised speeds due to their bolster, too often inadequate support structures, equipment too..” Bottom line is that when it comes to telecommunications and especially high speed internet, no one can be trusted, for  the fact is that ISP   – Cable, Telco etc – on their own will not invest in faster networks and bigger coverage areas because of the costs, and the main Corporate desire not to offer a service but a false desire  to make maximum profits with a minimum of capital investment. Services will evolve but at a slower pace until competitors are forced to invest in their own infrastrucuture.

Basically motivated by greed, increasing the profits. Bait and switch,  Misleading advertising, Unfair and Restrictive business trade practices seem to be a common thing in the Internet Service Providers  industry too, especially since generally the ISP are unregulated both by the Courts and the governments. It is a sad reality that even what is advertised is also next what the customer next consistently gets.

The Canadian Radio-television and Telecommunications Commission on Thursday issued a decision ordering Canada’s big phone companies, including Bell, Telus Corp., MTS Allstream Inc., SaskTel and Bell Aliant, to offer the same internet speeds to smaller wholesale customers as they themselves sell on a retail basis.” Service speed is an important competitive attribute, with rates differing significantly by speed and speed often being a major differentiation point from a marketing standpoint,” the CRTC ruled.

Under existing CRTC regulations, the big phone companies are required to rent out their networks to smaller service providers, who then sell internet access to their own customers. The rules boost the number of competitors selling internet access to the public, and thus keep prices down and service levels up. The regulations, however, have only applied to older infrastructure based in phone companies’ centralized office buildings.

Recently, phone companies have been pushing their networks out of those buildings by putting new equipment into streetside cabinets in an effort to boost their customers’ internet speeds. Smaller internet service providers haven’t had regulated access to those cabinets, however, which means they have been limited to selling slower speeds than those offered by the big phone companies.

In Quebec, for example, Bell has been selling internet connections with download speeds around 16 megabits per second while small ISPs have topped out at less than half that. The phone companies will only be required to offer faster speeds to wholesale ISPs when they sell them on a retail basis in a given area. Smaller ISPs will therefore have to request the faster connections from the phone companies. Bell, Telus and the others have 45 days to file with the CRTC the proposed rates they intend to charge the small ISPs for faster services. The rates will have to represent the actual cost of the service, plus “a reasonable mark-up,” the regulator said.

..the CRTC launched a larger inquiry into how much control large network owners such as Bell, Telus, Rogers Communications Inc. and Shaw Communications Inc., should have over the internet connections they sell to customers.” http://www.cbc.ca/technology/story/2008/12/12/tech-crtc.html
 
 “The CRTC has had a “cosy” relationship with Bell for as long as I can remember. It is obvious it continues. Short of replacing all the Commissioners with officials elected by net users this will never change. Time for a “revolution” IMO.” ” I really wonder who we have in charge of the CRTC. I would prefer a 13 year old nerd that has the slightest clue about the new hype of the Internet, ”
 
” Net neutrality is one of the most significant “sleeper” issues that will confront the people of Canada over the next decade. Just as we have demanded regulation for our road traffic and public utilities, we will demand fair access to our data services and even to each other.  “
 
“Indeed, it is important not to lose sight of how much has changed in the past year. In the fall of 2007, net neutrality was viewed as a fringe issue in Canada without much political traction. In the span of 12 months, there has been a major CRTC case, the Angus bill, a rally on Parliament Hill, a more vocal business community supporting net neutrality and a gradual shift of this issue into the political mainstream. ”  http://www.thestar.com/sciencetech/article/542156  http://www.neutrality.ca/
  
  
 Telecom dinosaurs are like the Big Three auto makers… act now to avoid more future tax funded bailouts.
 
 
Do continue here  below  to often read about bad Bell.. http://thenonconformer.wordpress.com/tag/bell/
 

 

Advertisements
Next Post
Leave a comment

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: