BCE Sells Tower Stakes to Fund AI Data Centers Due in 2027
BCE is monetizing a 49.9% stake in its wireless tower subsidiary to La Caisse for CAD 2.45 billion, funding its Bell AI Fabric data center expansion that won't generate EBITDA until 2027. The company
BCE Sells Tower Stakes to Fund AI Data Centers Due in 2027
NEW YORK, November 11, BCE Inc. (BCE) is selling a stake in its most predictable recurring-revenue asset, wireless towers, to fund an AI data center bet that will not generate a dollar of EBITDA until 2027, while core wireless revenue is still declining. La Caisse's CAD 2.45 billion purchase of 49.9% of Bell TowerCo positions the proceeds as growth capital, not debt relief.
The Numbers
- Q3 2026 adjusted EPS CA$0.74, down CAD 0.05 year-over-year; beat consensus by 5.7% despite higher depreciation and amortization
- Bell AI Fabric: 300 MW contracted in Saskatchewan, targeting more than CAD 500 million EBITDA; first data hall expected H1 2027
- Net debt CAD 39.6 billion at 3.7x leverage; BCE targets 3.5x by that same deadline
Spending Tower Proceeds Before the Deal Closes
The La Caisse transaction, closing in the first quarter, hands BCE CAD 2.45 billion, but CFO Curtis Millen was clear the proceeds fund growth, not debt reduction, leaving the 3.7x leverage to drift toward 3.5x on its own timetable. BCE, which sells wireless plans, Bell Fibe TV, cloud services, and fiber internet under the Bell brand to residential, enterprise, and government customers, retains TowerCo control with towers staying on its consolidated balance sheet. CEO Mirko Bibic's "we get a contract, then we build" approach aims to separate Bell AI Fabric from speculative construction, but the CAD 500 million EBITDA target depends entirely on 300 megawatts of Saskatchewan capacity operating on schedule.
Wireless Revenue Won't Recover Until AI Construction Peaks
Wireless service revenue fell 1.3% year-over-year in Q3 2026, a decline rooted in regulatory fee changes and the deliberate addition of lower-ARPU government customers rather than churn. Early signs are positive: monthly recurring rates on new postpaid activations rose roughly 11% year-over-year, and postpaid churn fell to 1.06%, its best third-quarter reading since 2022. Management put the recovery at mid-next-year at the earliest, which means peak AI construction spending and peak wireless pressure land in the same window. Q3 headline revenue grew 2.2%, yet BCE's organic rate was 0.9%, with Ziply Fiber carrying the rest.
HOW BCE STACKS UP, data at publish
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| BCE | $20.2B | 11.3x | -7.6% |
| TU | $14.0B | 16.3x | -40.6% |
| BNS | $112.7B | 13.7x | +38.8% |
| CM | $105.1B | 14.3x | +35.1% |
| BMO | $120.0B | 14.7x | +37.9% |
| RCI | $18.2B | 10.2x | -11.5% |
When Both Bets Either Pay or Break
Until construction peaks and wireless recovers, investors must bridge a gap: elevated capex, a wireless segment not yet recovering, and CAD 39.6 billion in net debt before AI data center revenue arrives. The bull case rests on contracted capacity and three earnings beats in the last four quarters. The checkpoint is Q4 2026 free cash flow, when Bell AI Fabric construction accelerates; if FCF holds through the capex step-up, the path stays intact. If leverage does not trend toward that target, the AI EBITDA promise is a 2028 story.
Model it with the DCF calculator, or run the free BCE Inc. deep-dive.
Basis Report is independent research for informational purposes. It is not investment advice and not a recommendation to buy or sell any security.
Basis Report is independent research for informational purposes. It is not investment advice and not a recommendation to buy or sell any security.
BCE confirmed La Caisse will purchase a 49.9% stake in its newly formed wireless tower business for CAD 2.45 billion, with proceeds earmarked for a CAD 5 billion AI data center build in Saskatchewan — yet management acknowledged the first data hall will not come online until at least mid-2027, and the company's core wireless revenue is still contracting even as new subscriber pricing rises roughly 11%.
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