The acquisition, which is expected to close in 2024 subject to regulatory approval and other conditions, would see the BCE Inc. subsidiary take over Outfront Media's 9,325 advertising displays in Canada.
Dwayne Winseck, a professor at Carleton University’s School of Journalism and Communication, said the move would increase Bell's share of the $622-million out-of-home advertising market in Canada from around 20 to 35 per cent. He said 5G networks require thousands of small antennae to be placed in relatively close proximity to one another throughout service areas, which means companies need to be able to access key site locations such as street furniture and buildings.
He said if that's the case, then regulatory approval of the transaction should be conditional upon a transparent and open wholesale access regime"so that control over street furniture does not become one more arrow in BCE's quiver used to hobble mobile wireless competition." "The synergy between Outfront's established expertise and our commitment to driving innovation will provide clients with tremendous opportunities on a true coast-to-coast footprint."
"The Outfront platform involves a higher mix of traditional outdoor signage compared to Astral, which consists of a lot of metro and airport signage as well as so-called street furniture ," Shine said in a note to investors on Monday.
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