PSP Invests More Than $1.5B in Fiber Infrastructure Joint Venture With BCE

Canadian pension investment manager Public Sector Pension Investment Board has agreed to invest more than $1.5 billion in a joint venture with BCE Inc., Canada’s largest communications company. The companies plan to develop fiber optic infrastructure in underserved markets in the U.S.  

The joint venture, called Network FiberCo, aims to be a wholesale network provider focusing on “last-mile” fiber deployment outside the current service areas of fiber-optic internet provider Ziply Fiber, which BCE is currently in the process of acquiring.  

According to the companies’ announcement, FiberCo aims to develop approximately 1 million fiber locations passed in Ziply Fiber’s existing states and will target development of up to 5 million additional locations. This potentially allows Ziply Fiber to reach up to 8 million total fiber locations.   

Network FiberCo will have its own non-recourse debt financing, which the companies expect to account for the majority of its capital over time, while BCE and PSP Investments will proportionately fund the equity required to support the joint venture’s fiber expansion plans.  

Under the terms of the deal, which is expected to close in the second half of 2025, PSP Investments will own 51% of FiberCo through its High Inflation Correlated Infrastructure Portfolio. The pension investment manager developed the strategy to invest in North American infrastructure assets with defensive, predictable and inflation-linked cash flows.  

Meanwhile, Ziply Fiber will own the remaining 49% equity stake in the joint venture. However, this is on the condition that BCE closes its C$7 billion ($5.1 billion) acquisition of Ziply Fiber, which was announced in November 2024.  

According to the terms of BCE’s acquisition of Ziply Fiber, BCE will assume 100% ownership of Ziply Fiber’s existing operations, while Ziply will continue to operate its existing network. Additionally, Ziply Fiber will be the exclusive internet service provider to locations passed by Network FiberCo. 

“This commitment by PSP Investments will generate inflation linked and downside protected returns,” PSP Investments President and CEO Deborah Orida said in a statement. “PSP Investments has been an investor in Ziply Fiber, and this partnership, leveraging our global infrastructure experience, aligns perfectly with our strategy and strengthens our diversified portfolio.”  

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Tags: BCE, Canada, Deborah Orida, Infrastructure, Network FiberCo, Pension, PSP Investments, Ziply Fiber