Core Viewpoint - BCE Inc. and PSP Investments have formed a strategic partnership, Network FiberCo, to enhance fibre infrastructure development in underserved U.S. markets through Ziply Fiber, with a potential investment exceeding US$1.5 billion from PSP Investments [2][3][4] Strategic Partnership Highlights - Network FiberCo aims to deploy last-mile fibre outside of Ziply Fiber's current service areas, potentially reaching up to 8 million total fibre passings [3][7] - BCE will hold a 49% equity stake in Network FiberCo, while PSP Investments will own 51%, contingent on the completion of BCE's acquisition of Ziply Fiber [7] - The partnership is expected to improve BCE's free cash flow generation and strengthen EBITDA accretion over the long term [4][5] Market Opportunity - The U.S. fibre broadband market presents significant growth potential, with lower penetration rates compared to Canada and favorable construction costs for large-scale deployment [7] - Network FiberCo plans to develop approximately 1 million fibre passings in existing states and target an additional 5 million passings [7] Operational Structure - Upon completion of the acquisition, BCE will own 100% of Ziply Fiber, which will continue its existing operations and fibre-to-the-home strategy [11] - Ziply Fiber will serve as the exclusive Internet service provider for locations passed by Network FiberCo [11] Financial Aspects - The partnership is designed to be capital-efficient, with non-recourse debt financing anticipated to cover the majority of Network FiberCo's capital needs over time [7][8] - PSP Investments' commitment is expected to generate inflation-linked and downside-protected returns, aligning with its mission to support Canadian public sector pensions [5]