BCE Inc. has injected $158 million into Telesat Canada by acquiring all outstanding common shares in the Ottawa-based satellite communications company. BCE previously held 58 percent of the common equity in the parent company that owns 100 percent of the common shares of Telesat. Telesat is undertaking ventures that will significantly expand satellite services in North America and beyond.
"Today, BCE is signaling its confidence in the continued
growth and profitability of Telesat," said Jean Monty, BCE's
president and chief operating officer. "As one of the world's
most experienced satellite operators, Telesat is poised to prosper
in the newly competitive global telecommunications marketplace.
BCE's ownership will provide Telesat with access to the capital it
needs to bring satellite solutions to customers in Canada and
around the world."
"BCE's investment means a more competitive Telesat in
what is becoming a more competitive worldwide market for satellite
services," said Larry Boisvert, Telesat's president and CEO.
"Because Telesat is Canada's flagship satellite carrier, this is
very good news for the entire industry and the jobs and investment
it supports right here in Canada."
In the fall of 1998, Telesat plans to launch its Nimiq direct broadcast satellite, which will bring expanded direct-to-home television services to Canadians from coast-to-coast. Telesat has also recently announced plans to
launch its new Anik F series of fixed satellites starting in 2000.
BCE's commitment to Telesat's growth strategy and the synergies with BCE's other investments will be important assets to Telesat as it pursues these and other exciting opportunities.
About
BCE is Canada's largest telecommunications company. The
BCE group includes: Bell Canada, the principal supplier of
communications services in Ontario and Quebec; Nortel (Northern
Telecom), a global leader in the design and building of
telecommunications networks; Bell Canada International, a leading
supplier of telecommunications services in markets outside of
Canada; BCE Mobile, a provider of wireless services in Ontario and
Quebec under the Bell Mobility banner; and Tele-Direct, a Yellow
Pages(TM) directory publisher operating in Canada and
internationally. BCE's shares are traded in Canada, the United
States and in Europe.
Backgrounder — Telesat Canada
Telesat is a world leader in satellite communications and
systems management. Created in 1969, the Company made history
with the launch of Anik A1 in 1972 the world's first commercial
domestic communications satellite placed in geostationary orbit.
Telesat's headquarters are in Gloucester (near Ottawa),
Ontario, Canada, where the majority of its almost 500 employees
are located; the remainder are located in sales offices and
satellite communications centres across Canada, with several teams
of employees on international assignments around the world.
Telesat owns and operates two dual-band Anik E
satellites, both launched in 1991. Anik E1 is used primarily for
business telecommunications services, while Anik E2 is a broadcast
communications satellite carrying the bulk of Canada's television
signals. Telesat will launch Nimiq, the country's first direct
broadcast satellite in late 1998, bringing an unprecedented range
of television choice to Canadians from coast to coast.
Poised to start offering its telecommunications and
broadcast services internationally, Telesat is now finalizing
plans for its next generation of fixed service satellites, and is
investigating how best to provide interactive multimedia services
to customers in Canada and beyond.
