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Bell Canada Invests


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									Bell Canada Invests $100 million in McCaw’s Clearwire, forms
       Bell Canada, one of Canada’s largest telecommunications providers
engaged in a join venture with the US Seattle based Clearwire Corp. Bell will
manage internet and telephone services delivered over Clearwire’s wireless
broadband services in the US, Canada and beyond. The deal also involves the
management of voice-over internet Protocol within the US, a service that Bell
already provides to some Canadian corporations. Clearwire was actively seeking
a partner on a global market but chose Bell because they feel they are the best.
Although Clearwire Corp. initiated this partnership it is speculated that this
relationship is a result of an earlier takeover of Microcell by Bell’s main
competitor Rogers Communications.

        This is an interesting story because it involves one of Canada’s major
corporations and the techniques used to expand into other markets. Mergers and
acquisitions is a controversial topic for shareholders especially when it involves
large firms such as Bell. The way that Bell chose to enter into the market is
interesting because they are such a large firm. It would be expected that a
company such as Bell would make a bigger more risky move such as an
acquisition versus a joint venture. Although this is a small move into the
American market, it opens the door to opportunity for the firm in a less risk mode
of entry for the shareholders.

        This story deals with modes of entry into foreign markets as well as
competition of firms on a global market, and distribution alternatives that go
beyond domestic strategies. Joint ventures are just one of many modes of entry
that firms can use to enter into foreign markets. This is an important topic that we
have researched for the purpose of our own comp report of foreign expansion.
Although there was only minor mention of Bell Canada’s competitor Rogers
Communication, the made it clear that they are both now competing not just at a
domestic level but at a global level. It shows that international expansion is
becoming more necessary to compete even with domestic competition. The
article highlights the benefits to Bell Canada from making this partnership. They
are able to expand there distribution network not only into the US, but it also
provides opportunity outside of North America. It is a good example of
international expansion via distribution channels.

Leslie McMillan

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