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FCC clears the way for Bell Canada/Ziply fiber growth

FCC Clears the Way for Cross-Border Broadband Expansion by Bell Canada and Ziply Fiber

The U.S. Federal Communications Commission (FCC) has approved a critical regulatory step that opens the door for intensified cross-border collaboration in fiber-optic infrastructure. In a move poised to accelerate broadband development in underserved regions, the FCC granted approval for Bell Canada’s indirect ownership stake in U.S.-based Ziply Fiber. Bell, a telecommunications leader in Canada, and Ziply, a regional fiber provider operating across the Pacific Northwest, now have the green light to align their resources and strategies. This ruling marks a decisive moment in North American broadband growth, setting the stage for increased competition, infrastructure investment, and high-speed internet expansion across international borders.

Rising Demand, Uneven Access: Why Broadband Innovation Can’t Wait

The Digital Surge and the Bandwidth Bottleneck

Hybrid work models, remote learning, e-commerce expansion—these shifts have escalated the demand for high-speed Internet across North America. According to the International Telecommunication Union (ITU), global Internet traffic surged by 40% in 2021 alone, driven largely by video streaming, cloud computing, and data-intensive applications. In the U.S. and Canada, average household data consumption now exceeds 500 GB per month, according to OpenVault’s Broadband Insights Report.

While urban hubs experience gigabit speeds and fiber rollouts, the digital backbone hasn’t scaled evenly. Capacity struggles are frequent, outages are disruptive, and consumer expectations have outpaced legacy copper infrastructure. In this rapidly digitizing landscape, meeting bandwidth needs with scalable infrastructure has become a non-negotiable.

Disconnected Landscapes: Barriers in Rural and Underserved Communities

Hundreds of communities across North America remain stuck with download speeds under the FCC’s broadband benchmark of 25 Mbps. In its 2022 Broadband Deployment Report, the FCC estimated that 14.5 million Americans lack access to fixed terrestrial broadband with adequate speeds—most of them in rural areas. North of the border, Canada’s CRTC reported that only 59% of rural households had access to 50/10 Mbps Internet in 2020, compared to 90% coverage in urban areas.

Low-density populations, high deployment costs, and rugged terrain obstruct traditional private-sector investment. These areas often depend on public-private partnerships, grants, and policy support for infrastructure upgrades. Without intervention, these communities face prolonged economic and educational disadvantages directly tied to digital exclusion.

Fiber Optics: The Backbone of Future-Proof Connectivity

No other medium currently matches the performance ceiling of fiber optics. Offering symmetrical speeds, ultralow latency, and high reliability, fiber networks support gigabit and multigigabit services with virtually no degradation over distance. The FTTH Council North America reports that fiber-connected homes have grown to over 60 million across the U.S. and Canada combined, a 23% year-on-year increase as of Q4 2023.

Unlike copper or wireless solutions, fiber infrastructure scales with demand. It’s capable of supporting emerging technologies—from 5G backhaul and smart cities to cloud-native enterprise applications—without major reinvestment. As the core enabler of modern connectivity, fiber optics doesn't just meet today’s demands; it shapes the digital economy for decades to come.

So, What Happens Next?

Broadband innovation has moved from a competitive advantage to a national imperative. With both Bell Canada and Ziply Fiber poised for network expansion, backed by regulatory clearance, the momentum now shifts to execution. The infrastructure exists. The technology is available. The need is immediate. The stage is set for transformation.

Inside FCC Approval: What It Means for Bell Canada and Ziply Fiber

The FCC's Role in Shaping U.S. Telecommunications

The Federal Communications Commission (FCC) regulates interstate and international communications across radio, television, wire, satellite, and cable in the United States. This oversight extends to infrastructure development, spectrum allocation, foreign ownership, and service quality standards. By controlling entry into U.S. telecommunications markets, the FCC directly influences which companies operate, how they expand, and under what conditions they interact with American networks and consumers.

Any foreign investment or acquisition in U.S. telecom entities requires prior FCC approval under Section 214 of the Communications Act of 1934. This step ensures the transaction aligns with the public interest and national security objectives, often involving interagency review with the Department of Justice, Department of Homeland Security, and others.

What Approval Was Granted?

In its latest decision, the FCC approved an application allowing Bell Canada to increase ownership in Northwest Fiber, LLC—better known commercially as Ziply Fiber. Specifically, the agency greenlit the transfer of control from current stakeholders to Bell Canada, raising its equity interest substantially.

This approval followed the FCC’s team telecom review process, where national security and law enforcement agencies analyze foreign telecom investments. After a thorough evaluation, all clearances were issued, marking a pivotal point in Bell Canada’s cross-border strategy. The action formalized Bell Canada's position as a majority owner, providing legal grounds to shift financial, strategic, and operational authority over Ziply Fiber.

How This Changes the Game for Bell Canada

The implications stretch beyond simple ownership. With the FCC’s decision, Bell Canada gains expanded rights to operate telecommunications facilities, provide broadband and voice services, and participate in service funding mechanisms like the Connect America Fund—directly through Ziply Fiber’s infrastructure footprint within the U.S.

Operating under this approval, Bell can now deploy capital and innovation at scale, bypassing hurdles typically faced by foreign entities. It also means that Ziply Fiber’s activities fall under Bell’s North American network plans, potentially integrating service models, procurement strategies, and engineering resources across borders.

This move creates structural alignment between Canadian expertise in fiber builds and the aggressive broadband goals of underserved U.S. markets. Without the FCC’s formal approval, none of these synergies would be legally possible.

Bell Canada's Strategic Playbook for North American Expansion

Targeting Growth Beyond Borders

Bell Canada aims to deepen its reach into the U.S. broadband market, with a specific focus on the Pacific Northwest. By extending its fiber footprint through Ziply Fiber, Bell positions itself to compete directly with American telecom heavyweights while reinforcing its robust infrastructure in Canada. The goal isn't incremental market share; it's significant foothold acquisition in growth-ready regions underserved by legacy providers.

This cross-border strategy reflects Bell's long-term vision: to become a North American connectivity powerhouse. With growing bandwidth demands driven by AI, remote work, content streaming, and cloud services, the move addresses both short-term demand spikes and long-cycle infrastructure value creation.

The Ziply Fiber Investment: Strategic, Timed, and Calculated

In early 2024, Bell Capital—an investment entity associated with BCE Inc.—led a $500 million equity investment in Ziply Fiber. The transaction, supported by the Federal Communications Commission (FCC), cleared regulatory pathways that had previously limited cross-border telecom consolidation. Ziply, which already manages over 6,000 route miles of fiber in Washington, Oregon, Idaho, and Montana, now gains capital and strategic guidance to aggressively scale network coverage.

This was not a speculative bet. Bell used performance metrics, fiber adoption rates, and capacity forecasts to time market entry. Ziply’s focus on last-mile delivery complements Bell’s deep experience in network engineering and large-scale technology rollouts.

Post-Clearance: Momentum in Motion

FCC regulatory clearance unlocked immediate operational synergies. Portability of capital, access to shared vendor networks, and strategic insights from Bell’s Canadian markets are being leveraged to accelerate deployment in the U.S. Within weeks of the announcement, Ziply initiated expansion projects into Spokane metro suburbs and eastern Oregon corridor towns.

On the macro level, institutional investors responded as well—telecom analysts from RBC and CIBC adjusted their models, projecting a mid-double-digit IRR from this stake over a 5- to 7-year horizon. Commercial clients now view Bell-Ziply as a binational fiber solution—particularly attractive for data-heavy operations like datacenters and AI model hosting farms located in Oregon and Washington.

Ziply Fiber's Network Growth and Vision

From Regional Service to Expansive Footprint

Ziply Fiber emerged in 2020, when investment firm WaveDivision Capital partnered with Searchlight Capital to acquire Frontier Communications' Pacific Northwest assets. That acquisition included over 1.7 million residential and business customers across Washington, Oregon, Idaho, and Montana. In just four years, Ziply extended its fiber-based high-speed internet service to over 170 communities, reaching more than 2.5 million locations by mid-2024.

At launch, the company inherited a mix of outdated copper infrastructure and limited fiber coverage. Ziply prioritized overhauling the existing network, shifting aggressively toward fiber-optic deployment. The company invested over $500 million in infrastructure during its first three years, with a focused approach to increasing symmetrical gigabit-speed access across small towns and suburban areas often overlooked by larger providers.

Legacy Systems, New Promise

Before its transition, many of Ziply’s service areas relied heavily on DSL connections, operating through aging central offices and last-mile copper lines. This arrangement limited download speeds to under 20 Mbps for many customers and nearly always capped upload speeds at under 2 Mbps. The gap between legacy capability and modern demand became a clear vector for network reinvention.

To modernize the system, Ziply launched a deep build-out strategy. They began replacing copper lines with fiber-optic connections, bringing speeds up to 5 Gbps down and 1 Gbps up in dozens of new markets by 2023. These upgrades enabled the launch of streaming, remote work, and cloud-based business services in markets where such capabilities had previously been impractical.

Accelerated Expansion Under New Regulatory Clarity

The FCC’s clearance of the Bell Canada-Ziply deal removes institutional obstacles to foreign investment and opens the door to aggressive scaling. With Bell Canada and existing investors providing additional capital and strategic leadership, Ziply now targets deployment in more than 350 communities by the end of 2025 — doubling its current market presence.

This new phase of growth hinges not just on scale, but on depth. Ziply aims to overbuild legacy markets with 100% fiber coverage, offer multi-gig plans consistently, and reduce maintenance downtime through fiber-overbuild designs. Their vision includes not just expanding service, but actively transforming the digital quality-of-life for mid-market and rural consumers.

Scaling Up: How FCC Approval Drives U.S. Broadband Infrastructure Forward

Alignment with National Broadband Goals

The Federal Communications Commission's decision to clear Bell Canada and Ziply Fiber’s expansion aligns directly with the Biden administration’s broadband development objectives. The Infrastructure Investment and Jobs Act (IIJA) of 2021 earmarked $65 billion for broadband expansion, targeting the elimination of digital deserts across the country. Private-sector scaling, as seen with this cross-border collaboration, adds momentum to federal programs by injecting capital and technological expertise into deployment efforts.

Pushing Fiber Deeper Into Underserved Regions

Ziply Fiber has prioritized deploying fiber infrastructure in areas long neglected by national ISPs. Following FCC clearance, the company can now accelerate its rollout across the Pacific Northwest and potentially deeper into interior states. States like Idaho, Montana, and Eastern Oregon—where population density challenges traditional ROI models for telecoms—stand to see new fiber miles laid. This supports recent NTIA and U.S. Department of Commerce datasets showing that as of 2023, over 24 million Americans still lack access to fixed terrestrial broadband at speeds of 25/3 Mbps.

Affordability, Speed, and Accessibility Gains

When fiber enters a market, the effects are measurable. According to the Federal Reserve Bank of Richmond, each 10% increase in broadband availability correlates with a 1.2% increase in minimum wage growth. Ziply Fiber’s presence will push incumbents to match speed and price, driving competition that lowers median costs per megabit. Rural and tier-two markets can expect gigabit speeds, symmetrical upload/download capabilities, and latency suitable for cloud computing and digital education.

Residents in expanded service areas may also become eligible for programs like the Affordable Connectivity Program (ACP), further reducing household broadband costs. With Ziply Fiber already offering plans under $20/month in some pilot zones, affordability shifts from policy goal to community reality.

Redrawing the Competitive Lines in U.S. Telecom

A Shift in the Landscape

Bell Canada's deeper footprint into U.S. telecommunications, catalyzed by recent FCC approval, introduces a new dynamic into an already crowded field. Previously dominated by legacy providers such as Comcast, AT&T, and Charter, the market is now recalibrating to accommodate cross-border competition with the added presence of Ziply Fiber. This isn’t a symbolic move—it’s structural. Every new mile of fiber infrastructure deployed by either Ziply or Bell Canada represents a physical reshaping of market share potential in the Pacific Northwest and beyond.

Pressure on Incumbent ISPs

The entry of these new players into regions historically controlled by one or two ISPs increases the likelihood of market fragmentation. This leads to direct consequences for incumbents:

In areas where Ziply Fiber already has a presence—such as Washington, Oregon, Idaho, and Montana—the looming collaboration with Bell Canada may act as a multiplier for competition by reinforcing service availability with robust capital backing. Existing ISPs will have to adjust not only their infrastructure plans but also their customer service models, response times, and promotional offerings.

The Consumer Equation: More Choices, Realigned Prices

For consumers, the immediate benefit is obvious: choice. Households in previously underserved pockets will soon evaluate alternatives, possibly for the first time. But beyond availability, pricing structures are also up for review. The introduction of a price-sensitive carrier like Ziply Fiber—whose standard 1Gbps plan costs about $60 per month without data caps or contracts—forces competitors to reconsider tiered pricing, installation fees, and contract terms.

As more fiber routes come online and overlapping service zones emerge, price elasticity in broadband markets will increase. Smaller ISPs may respond by bundling services more aggressively, while larger providers could adopt promotional locking prices or limited-time offers to counter subscriber loss. In short, newly intensified competition is poised to redistribute market influence more equitably across provider types and sizes.

Broadband Access for Everyone: Closing the Digital Divide in Rural America

Addressing Digital Inequity Head-On

When the FCC cleared the way for Bell Canada and Ziply Fiber's partnership, it opened new opportunities for tackling one of broadband's most persistent challenges: rural and underserved connectivity. This collaboration isn't just about network expansion—it's a targeted effort to eliminate digital inequity in regions that have long been left behind.

Through coordinated investment and infrastructure development, Bell and Ziply are focusing efforts on areas where current internet service is either slow, unreliable, or non-existent. Rural broadband gaps impact education, healthcare, and local economies. With fiber-optic deployments pushing deeper into these geographies, that dynamic is poised to change.

Fiber vs Cable vs Fixed Wireless: What Works Where?

Technology choices matter, especially in areas with difficult terrain, sparse populations, or aging communications infrastructure. Here's how the leading technologies stack up in rural America:

In the Bell-Ziply framework, fiber represents the end goal. Ziply's existing footprint across Idaho, Montana, Oregon, and Washington relies heavily on fiber deployment. With Bell's technical and financial backing, the reach of that fiber can be extended further into the rural Northwest and potentially replicated in strategic U.S. markets.

Collaborations in Hard-to-Reach Terrain

Deploying advanced networks in remote regions of the Pacific Northwest requires more than capital—it demands local knowledge, regulatory coordination, and terrain-specific engineering. Bell brings decades of experience managing remote infrastructure across Canada's vast geography. By integrating their approach with Ziply’s regional assets and operations teams, the partners can accelerate buildouts where others have stalled.

Projects already underway include fiber installations in communities where previous providers relied solely on DSL or satellite. For example, new fiber lines in northern Idaho and central Oregon are replacing outdated copper, bringing speeds of up to 2 Gbps to homes and schools that previously lacked adequate internet entirely.

This hands-on execution in non-metro areas shows how the Bell-Ziply alignment is more than policy—it’s a boots-on-the-ground initiative reshaping how network infrastructure gets prioritized and deployed across underserved America.

Cross-Border Telecommunications: A New Era

Strengthening Canada-U.S. Collaboration

FCC clearance for Bell Canada's involvement alongside Ziply Fiber signals a structural shift in how telecommunications companies align operations across national borders. This move sharpens the trajectory toward deeper collaboration between Canadian and U.S. network operators. Bell’s position as a major Canadian entity entering active participation in U.S. broadband expansion marks a tangible step toward an integrated North American telecom framework.

Strategic partnerships like this allow telcos to pool capital, share infrastructure innovations, and leverage economies of scale. As network demands surge—driven by data-intensive applications, cloud computing, and 5G—synergies between geographically adjacent players offer operational efficiency and accelerated deployment timelines.

Navigating Regulatory Complexities

Cross-border telecommunications ventures encounter a layered regulatory architecture. On the U.S. side, entities such as the FCC must vet foreign ownership interests with scrutiny, especially when infrastructure concerns national backbone access or spectrum control. The 2024 clearance granted to Bell Canada affirms compliance with the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector—often referred to as Team Telecom.

Canada operates within a complementary—but distinct—framework through the Canadian Radio-television and Telecommunications Commission (CRTC), which regulates foreign investment thresholds and interconnection obligations. Harmonizing these regulatory dimensions requires detailed reciprocity assessments, bilateral data-sharing frameworks, and secure routing protocols that align with both national priorities.

Toward a Unified North American Digital Backbone

With Bell Canada and Ziply Fiber now structurally aligned under FCC authorization, inter-market network continuity becomes feasible at scale. This partnership lays groundwork for a long-term continental telecom architecture in which fiber backbones, peering agreements, and service standards converge across the border.

The long-term outlook includes potential for cross-border QoS (Quality of Service) agreements, mutual roaming on fixed wireless and fiber-access tiers, and joint spectrum usage ideation. As fiber-optic buildouts reach northern border regions of the U.S. and southern Ontario, the technical and policy frameworks developed here could serve as models for future public-private telecom integration efforts.

Are we seeing the first movements toward a continent-wide broadband grid? The building blocks are now visibly aligning: cross-regulatory approval, infrastructure cooperation, and capital commitment from legacy telcos and regional ISPs alike. Bell Canada and Ziply Fiber’s joint trajectory offers a time-stamped case study in 21st-century telecom evolution between neighbors no longer separated by data boundaries.

Pushing the Frontier: Fiber-Optic Internet and Future Networks

Innovations Driving the Next Generation of Connectivity

Fiber-optic technology has moved far beyond the early days of trenching cables and basic data transmission. Today's deployments leverage micro-trenching techniques, advanced optical distribution networks (ODNs), and wavelength-division multiplexing (WDM) to boost scalability. Dense wavelength-division multiplexing (DWDM), specifically, amplifies capacity by transmitting multiple data signals over a single fiber — each on its own light wavelength. DWDM networks today can sustain bandwidths of up to 400 Gbps per channel, allowing providers to scale rapidly without laying new lines.

Bell Canada and Ziply Fiber are deploying gigabit passive optical networks (GPON) and 10-gigabit capable symmetrical passive optical networks (XGS-PON). These standards deliver symmetrical upload and download speeds — a necessity as data creation increasingly shifts upstream with cloud storage, remote work, and real-time collaboration. By using these technologies, their networks support residential, enterprise, and wholesale customers with minimal latency and near-zero packet loss.

5G Synergies and Preparing for Future Networks

Fiber and 5G are complementary, not competitive. Every deployed 5G small cell or macro tower requires backhaul — and fiber provides the low-latency, high-capacity infrastructure to keep up with ultra-dense applications like IoT, autonomous vehicles, and edge computing. Both Bell and Ziply are integrating their fiber networks into 5G transport layers, utilizing multi-access edge computing (MEC) to decentralize data processing. This reduces latency from over 50 milliseconds to under 10 milliseconds in many cases, supporting use cases such as VR conferencing or industrial automation.

Beyond 5G, the architecture also anticipates 6G, which aims for peak data rates of 1 Tbps and sub-millisecond latency. The groundwork laid today — high-core count fiber, software-defined networking (SDN), and scalable optical network terminals (ONTs) — will allow Bell-Ziply to make that transition through layer upgrades rather than full rebuilds.

Tech-Led Market Differentiation

With the FCC regulatory barriers lowered, Bell Canada and Ziply Fiber are seizing the opportunity to carve out a leadership position defined by technology rather than territory. Their infrastructure doesn't just meet current demand — it anticipates where digital behavior is heading. From zero-trust network architectures to end-to-end encryption over photonic layers, their approach pivots from reactive to proactive engineering.

This tech-first positioning distinguishes Bell-Ziply from legacy telecom strategies that lean on regulatory arbitrage or scale through acquisitions. Instead, they present a case study in building fibers not just to homes, but directly into the future of networked life.