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The MTS building in downtown Winnipeg is seen in this file photo.Joe Bryksa/The Canadian Press

Canada's broadcast regulator has signed off on BCE Inc.'s $3.1-billion deal to acquire Manitoba Telecom Services Inc. but more challenging government approvals still remain outstanding.

The Canadian Radio-television and Telecommunications Commission approved BCE's application to take control of MTS's licence to provide television services in Winnipeg and surrounding areas.

The regulator was careful to note in its ruling on Tuesday that this review is not the end of the story for the deal, which would see the country's largest communications company acquire one of just a handful of remaining regional telecom players.

"The commission exclusively reviewed the change in ownership of the licensed [broadcast distributor]," it stated. "The authorization in this decision is not sufficient, in and of itself, for BCE to go ahead with the broader transaction, which requires authorizations from other entities."

The companies are still waiting for the Competition Bureau and the federal Department of Innovation, Science and Economic Development to complete their reviews of the deal, which was announced in May.

The CRTC's approval relates only to MTS's television distribution business and was relatively straightforward because BCE does not currently operate a "terrestrial" – or wired – television service in the province (although it does have a licence to offer satellite TV services).

The change in control does not alter the number of terrestrial television providers and the CRTC noted that cable operator Shaw Communications Inc. will continue to be the largest in the province and BCE will not be the only provider in any given market.

The CRTC noted that BCE intends to continue investing in community television programming and also that BCE plans to make improvements to the IPTV (Internet protocol television) product offered to MTS customers.

"We continue to make progress toward uniting Bell and MTS as we work with federal regulators to complete the remaining transaction approvals," BCE chief executive officer George Cope said in a statement Tuesday.

BCE said in the statement that the deal is expected to close early next year. The companies have already received court approval for the deal and MTS shareholders have voted to approve the transaction.

But the remaining approvals are more controversial because they relate largely to the state of wireless competition in the province. If the deal closes as proposed, it will reduce the number of players to three, going against a major push by the government to promote fourth wireless alternatives in every part of the country.

The Competition Bureau has gone to court to compel Rogers Communications Inc. and Telus Corp. – the other two national wireless carriers in addition to BCE – to provide detailed information on their own cellular businesses in four provinces.

In late November, Taylor Bildstein, a spokeswoman for the bureau, said she could not comment on whether the competition watchdog would seek more information.

"It is difficult to say how long a particular review will take, as the bureau evaluates the steps that need to be taken on a case-by-case basis," she said regarding timing. "As always, we work to complete our reviews as expeditiously as possible."

ISED is also looking at the deal and could raise concerns over BCE exceeding "caps" on spectrum ownership in certain frequency bands once it acquires MTS. It is possible the government could require the company to divest some of its airwaves before approving the deal.

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SymbolName% changeLast
BCE-T
BCE Inc
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BCE-N
BCE Inc
-0.29%34.16
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Rogers Communication
+0.05%41.22

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