Tuesday, March 3, 2009

Bell Buys 'The Source' With A Good Reason

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The recent announcement from Bell Canada would be buying retail electronics chain 'The Source' from the now defunct Circuit City for a price that has not been disclosed, has many speculating that it has more to do than selling Bell services but more like quashing the competition. Currently The Source sells Rogers cell phone service and digital cable boxes as well as StarChoice satellite TV systems.

This approach may work well East of Lake of the Woods but for those areas in Western Canada where there is no Bell Mobility cell phone service, what if any cell phone service will available at the Source? It would be a very cold day in you-know-where when a Bell owned 'The Source' stores sells Telus Mobility service. It would most likely that service for cell phones sold at 'The Source' would be provided by half owned by Bell, Virgin Mobile.

There isn't too many acquisitions in the corporate world that happen without some kind of hidden motive, and this just happens to be one of them simply because Bell's motive is anything but hidden.

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