BCE reports 2009 third quarter results

This news release contains forward-looking statements. For a description
of the related risk factors and assumptions please see the section
entitled "Caution Concerning Forward-Looking Statements" later in this
release.

- Net earnings applicable to common shares of $558 million, up
$310 million year-over-year
- Bell operating income growth of 26% driven by lower restructuring
charges and EBITDA(1) growth of 1.5%
- Healthy cash from operating activities of $1.5 billion; Free cash
flow(2) of $649 million adds to strong liquidity position
- Record Q3 wireless postpaid net activations and industry-leading TV
net activations

MONTREAL, Nov. 12 /PRNewswire-FirstCall/ - BCE Inc. (TSX, NYSE: BCE), Canada's
largest communications company, today reported BCE and Bell results for the
third quarter of 2009.
Bell reported revenue and EBITDA growth in line with its increased financial
guidance; healthy free cash flow; an increase in net earnings applicable to
common shares to $558 million, or $0.72 per share, this quarter compared to
$248 million, or $0.31 per share, in Q3 2008; and strong wireless and video
net subscriber activations. These results demonstrate continued progress in
the execution of Bell's 5 Strategic Imperatives - Improve Customer Service,
Accelerate Wireless, Leverage Wireline Momentum, Invest in Broadband Networks
and Services, and Achieve a Competitive Cost Structure.
"Our strategic progress this quarter makes clear that Bell is fundamentally
transforming as a customer-focused competitor," said George Cope, President
and CEO of BCE and Bell Canada. "Even in a challenging economic and
competitive environment, the Bell team's ongoing execution of our strategic
imperatives moves us forward every day toward achieving our goal: For Bell to
be recognized by customers as Canada's leading communications company."
"We have real momentum in both our wireless and wireline businesses, with Bell
TV leading the industry in net TV activations and Bell Wireless achieving a
record number of third-quarter postpaid net activations. Thanks to effective
operational management, including increased customer winbacks and better
service execution during the busy move season, we also improved residential
local line losses 3% and doubled the number of Bell Bundle customers
year-over-year." Mr. Cope said.
Bell's momentum is accelerating with the launch this month of the fastest and
largest wireless network in Canada, which was completed on budget and ahead of
schedule; ongoing investment in service operations and in Bell's leading-edge
IP networks for business and residential customers; and a continuing and
earnest focus on driving out costs across the business.
"Our results this quarter showed good financial discipline throughout the
business," said Siim Vanaselja, Chief Financial Officer of BCE and Bell
Canada. "In a challenging economic cycle, we have continued to focus on
improving the cost structure of our operations by implementing efficiency
initiatives to deliver sustained improvement in the profitability of our
business. Our work to drive out costs has enabled us to sustain margins, even
with incremental pension costs and ongoing pressures from the current economic
climate."
"While we continue to make significant capital investment for long-term
growth, we have also maintained substantial cash balances and accessed the
debt capital markets on attractive terms earlier this year, enabling us to
readily fund all of our remaining 2010 debt maturities. With a cash balance of
approximately $1.2 billion, consistently healthy free cash flow generation,
and access to $1.4 billion in committed credit facilities, we maintain a
strong balance sheet and liquidity position that is well aligned to growing
our business and delivering shareholder value through our dividend growth
model." Mr. Vanaselja said.
Bell's operating revenues increased by 1.2% this quarter, to $3,788 million,
as higher product revenues from the acquisitions of The Source and the
remaining 50% of the equity of Virgin Mobile Canada (Virgin) not already owned
by Bell and growth in video revenues more than offset declines in local and
access, long distance, and wireline data revenues.
Bell's operating income increased by 25.9% to $583 million due to higher
EBITDA and lower restructuring and other costs. Bell's EBITDA grew by 1.5% to
$1,448 million as higher revenues and cost reductions more than offset the
impact of higher pension expense and a significant increase in wireless
subscriber activations. Excluding year-over-year increased pension costs,
EBITDA growth would have been 2.9%. Bell's EBITDA margin grew slightly this
quarter to 38.2% from 38.1% last year.
The Bell Wireless segment had record Q3 gross activations of 501,000 new
subscribers and total net activations of 135,000. Postpaid net activations of
122,000 were a Q3 record. The 15.4% year-over-year increase in total net
activations was driven by the success of new handsets, devices, services and
applications.
Bell Wireless operating revenues increased by 0.3% this quarter with service
revenues declining by 0.6% and product revenues increasing by 1.9%. Bell
Wireless operating income and EBITDA grew by 4.7% and 0.2% respectively.
Blended ARPU(3) decreased by $2.50 to $52.13 year-over-year but improved
sequentially over the previous quarter by $1.67. The year-over-year decline
this quarter is representative of the impact of economic pressures on customer
usage, competitive moves and lower roaming revenues, which more than offset
data revenue growth of 33%.
In the Bell Wireline segment, retail residential NAS losses improved for an
eighth consecutive quarter but total Residential NAS declined by 77,000 this
quarter, or by 6.9% more than last year, due to higher wholesale customer
deactivations. Business NAS declined by 26,000 this quarter compared to no
change last year, reflecting business customer disconnections and fewer new
installations. Video subscribers increased by 40,000 and high-speed Internet
subscribers increased by 22,000 this quarter.
Bell Wireline operating revenues increased by 1.0% as video and equipment and
other revenue growth more than offset declines in local and access, long
distance and data revenues. Equipment and other revenues increased by 78.5%
due to the acquisition of The Source at the start of the quarter. Bell
Wireline operating income increased by 83.2% as a result of higher EBITDA and
lower restructuring and other costs. Bell Wireline EBITDA increased by 2.1%
due to higher revenues and cost reductions.
Bell invested $589 million of capital this quarter, or 4.1% more than in Q3 of
last year. Capital expenditures supported Bell's strategic imperatives with
focused investment on enhancing its wireless networks, including the recently
announced deployment of an HSPA 3G network, and the continuing expansion of
the wireline broadband network, including the Fibre-to-the-node (FTTN) program
and Fibre to multiple dwelling units (MDUs).
BCE's cash flows from operating activities this quarter was $1,537 million, or
6.8% lower than the same period last year due to higher pension contributions
and a decrease in working capital. Free cash flow was $649 million this
quarter compared to $86 million in the same period last year despite lower
cash flows from operating activities. Free cash flow in Q3 2008 included the
non-recurring expenditure of $741 million for Advanced Wireless Services
spectrum licences.
BCE's net earnings applicable to common shares this quarter were $558 million,
or $0.72 per share, compared to $248 million, or $0.31 per share, for the same
period last year. EPS(4) this quarter included the favourable resolution of
past tax positions, lower restructuring and other costs, and the impact of
fewer outstanding BCE common shares as a result of share purchases made
through the normal course issuer bid completed in May. BCE's Adjusted EPS was
$0.84 this quarter, or 40.0% higher than last year.

Financial Highlights
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($ millions except per share amounts) Q3 2009 Q3 2008 % change
(unaudited)
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Bell(i) Operating Revenues $3,788 $3,742 1.2%
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Bell EBITDA $1,448 $1,427 1.5%
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Bell Operating Income $583 $463 25.9%
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BCE Operating Revenues $4,457 $4,437 0.5%
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BCE EBITDA $1,801 $1,769 1.8%
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BCE Operating Income $782 $667 17.2%
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BCE Cash Flows From
Operating Activities $1,537 $1,649 (6.8%)
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Free Cash Flow $649 $86 n.m.
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BCE Net Earnings Applicable to
Common Shares $558 $248 n.m.
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BCE EPS $0.72 $0.31 n.m.
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BCE Adjusted EPS $0.84 $0.60 40.0%
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(i) Bell includes the Bell Wireless and Bell Wireline segments.
n.m.: not meaningful

BCE's operating revenues increased by 0.5% to $4,457 million this quarter as
higher revenues at Bell were partly offset by lower revenues at Bell Aliant.
BCE's operating income increased by 17.2% to $782 million this quarter, as
higher operating income at Bell was partly offset by lower operating income at
Bell Aliant. BCE's EBITDA increased 1.8% to $1,801 million this quarter due to
EBITDA growth at Bell and Bell Aliant.

Bell Wireless Segment

While the weaker economy and ongoing competitive actions impacted revenue
growth and ARPU, Bell Wireless delivered record third-quarter gross
activations and postpaid net activations, which should well position the
company for improved performance in the future.

- Total Bell Wireless operating revenues increased by 0.3% to
$1,178 million this quarter as growth in wireless data revenues and
increased product sales more than offset the impact of lower ARPU.
- The acquisition of the remaining 50% of Virgin was completed on
July 1, 2009. Accordingly, beginning in Q3 2009, wireless ARPU, churn
and cost of acquisition reflect 100% of Virgin's results. For prior
periods, these metrics have been reported on a pro forma basis to
reflect 100% of Virgin's results.
- On a pro forma basis, postpaid ARPU decreased by $3.98 to $64.09 due to
customer migration to lower rate plans, lower usage and lower roaming
revenues as customers reacted to a weaker economy, while prepaid ARPU
decreased by $0.48 to $18.36. Blended ARPU decreased by $2.50 to
$52.13.
- Bell Wireless operating income grew by 4.7% to $354 million this
quarter as a result of higher EBITDA and lower restructuring and other
costs. Bell Wireless EBITDA increased by 0.2% to $475 million this
quarter due to modest revenue growth and lower operating expenses.
- EBITDA margins on wireless service revenues increased to 45.0% this
quarter from 44.6% last year.
- Total gross activations were 501,000 this quarter, or 14.1% higher than
last year, reflecting the success of new handsets and turbo sticks and
enhanced data services and applications.
- Total net activations were 135,000 this quarter, or 15.4% higher than
last year. Postpaid net activations were 122,000 this quarter, or 8.0%
higher than last year. Prepaid net activations were 13,000 compared to
net activations of 4,000 a year ago.
- The Bell Wireless client base grew by 4.0% year-over-year to reach
6,707,000 at the end of the quarter.
- On a pro forma basis, postpaid, prepaid and blended churn increased
year-over-year. Postpaid churn increased to 1.3% from 1.1% last year
and prepaid churn increased to 3.5% from 3.1%. Blended churn increased
to 1.8% from 1.7%.
- On a pro forma basis, cost of acquisition decreased to $320 per gross
activation this quarter, or 15.3% lower than last year.

Bell Wireline Segment

The Bell Wireline segment delivered EBITDA growth and solid video and
high-speed Internet subscriber gains.

- Bell Wireline operating revenues increased by 1.0% to $2,659 million
this quarter as product revenue growth from the acquisition of The
Source and video revenue growth were partly offset by decreases in
local and access, long distance and data revenues.
- Bell Wireline operating income increased by 83.2% to $229 million this
quarter as higher EBITDA and lower restructuring and other costs more
than offset higher depreciation and amortization of intangible assets.
Bell Wireline EBITDA increased by 2.1% this quarter, to $973 million,
due to higher revenues and cost reductions.
- Local and access revenues declined by 6.0% to $783 million this quarter
due to ongoing residential and business NAS erosion.
- Total NAS declined by 103,000 this quarter compared to a decline of
72,000 last year. On a year-over-year basis, total NAS declined by
5.8%. Business NAS declined by 26,000 this quarter compared to no
change last year reflecting business customer disconnections and fewer
new installations in Ontario and Quebec. Retail residential NAS losses
improved for an eighth consecutive quarter due to growth in customer
winbacks. Although retail residential NAS losses improved, total
Residential NAS declined by 77,000 this quarter, or by 6.9% more than
last year, due to higher wholesale customer deactivations.
- Long distance revenues declined by 9.0% to $264 million this quarter
due mainly to ongoing residential and business NAS erosion, pricing
pressures in the business market, and the increased adoption of
unlimited or large block of time plans by residential customers.
- Data revenues decreased by 2.4% to $892 million this quarter as a
decline in data equipment sales to business customers and lower legacy
data revenues more than offset higher residential Internet revenues.
- High-speed Internet customer subscribers grew by 1.9% compared to last
year. There were 22,000 net activations this quarter compared to 33,000
last year. The year-over-year decrease in net activations is due to an
increase in business customer deactivations and fewer wholesale net
activations as a result of the weaker economy.
- Video revenues were $400 million this quarter, or 10.2% higher than
last year due largely to an ARPU increase of $4.15 to $69.35. ARPU
increased as a result of customer upgrades to higher-priced programming
packages, driven partly by the increased adoption of premium set-top
boxes.
- Video EBITDA was $83 million this quarter, or 9.2% higher than last
year, due to higher ARPU and a larger customer base.
- Total video subscribers increased by 40,000 this quarter compared to an
increase of 7,000 last year. At the end of the quarter, the video
subscriber base reached a total of 1,924,000.
- Video subscriber churn remained stable at 1.4%.
- Equipment and other revenues increased by 78.5% to $241 million due to
the acquisition of The Source at the start of the quarter.

Bell Aliant Regional Communications

Bell Aliant's revenues decreased to $786 million this quarter, or by 3.2%, due
to lower local and access, long distance and equipment and other revenues.
Bell Aliant's operating income decreased by 2.5%, to $199 million, due to
lower revenues and higher restructuring and other costs partly offset by cost
containment initiatives.

Common Share Dividend

BCE's Board of Directors has declared a quarterly dividend of $0.405 per
common share, payable on January 15, 2010 to shareholders of record at the
close of business on December 15, 2009.

Outlook

BCE confirmed its increased financial guidance for 2009 as follows:

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Increased 2009 Current
Guidance provided Expectation
on August 6
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Bell(i)
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Revenue Growth 1% - 2% Low end of range
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EBITDA(ii) Growth 1% - 2% On track
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Capital Intensity 15% - 16% On track
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BCE
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Adjusted EPS $2.40 - $2.50 High end of range
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Free Cash Flow(iii) $1,750 M - $1,900 M On track
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(i) Bell's 2009 financial guidance for revenue, EBITDA and capital
intensity is exclusive of Bell Aliant.
(ii) EBITDA includes pension expense
(iii) The most comparable Canadian GAAP financial measure is cash flows
from operating activities. For 2009, BCE expects to generate
approximately $1,750 million to $1,900 million in free cash flow.
This amount reflects expected BCE cash flows from operating
activities of approximately $4.9 billion to $5.1 billion.

Call with Financial Analysts

BCE will hold a conference call for financial analysts to discuss its third
quarter results on Thursday, November 12 at 8:00 a.m. (Eastern). Media are
welcome to participate on a listen-only basis. To participate, please dial
(416) 340-8018 or toll-free 1-866-223-7781 shortly before the start of the
call. A replay will be available for one week by dialing (416) 695-5800 or
1-800-408-3053 and entering pass code 8037862#.
There will also be a live audio webcast of the call available on BCE's website
at: http://www.bce.ca/en/news/eventscalendar/webcasts/2009/20091112/. The mp3
file will be available for download on this page later in the day.

Notes

The information contained in this news release is unaudited.

(1) The term EBITDA (earnings before interest, taxes, depreciation and
amortization of intangible assets) does not have any standardized
meaning according to Canadian GAAP. It is therefore unlikely to be
comparable to similar measures presented by other companies. We
define EBITDA as operating revenues less cost of revenue and selling,
general and administrative expenses, meaning it represents operating
income before depreciation, amortization of intangible assets and
restructuring and other. We use EBITDA, among other measures, to
assess the operating performance of our ongoing businesses without
the effects of depreciation, amortization of intangible assets and
restructuring and other. We exclude these items because they affect
the comparability of our financial results and could potentially
distort the analysis of trends in business performance. We exclude
depreciation and amortization of intangible assets because it largely
depends on the accounting methods and assumptions a company uses, as
well as non-operating factors such as the historical cost of capital
assets. Excluding restructuring and other does not imply they are
non-recurring. EBITDA allows us to compare our operating performance
on a consistent basis. We believe that certain investors and analysts
use EBITDA to measure a company's ability to service debt and to meet
other payment obligations, or as a common measurement to value
companies in the telecommunications industry. The most comparable
Canadian GAAP financial measure is operating income. The following
tables are reconciliations of operating income to EBITDA on a
consolidated basis for BCE, Bell and for our Bell Wireline and Bell
Wireless segments.

($ millions)

BCE Q3 2009 Q3 2008
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Operating income 782 667
Depreciation and amortization of intangible assets 828 792
Restructuring and other 191 310
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EBITDA 1,801 1,769
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BELL Q3 2009 Q3 2008
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Operating income 583 463
Depreciation and amortization of intangible assets 688 654
Restructuring and other 177 310
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EBITDA 1,448 1,427
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BELL WIRELINE Q3 2009 Q3 2008
Operating income 229 125
Depreciation and amortization of intangible assets 564 529
Restructuring and other 180 299
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EBITDA 973 953
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BELL WIRELESS Q3 2009 Q3 2008
Operating income 354 338
Depreciation and amortization of intangible assets 124 125
Restructuring and other (3) 11
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EBITDA 475 474
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(2) The term free cash flow does not have any standardized meaning
according to Canadian GAAP. It is therefore unlikely to be comparable
to similar measures presented by other companies. We define free cash
flow as cash flows from operating activities and distributions
received from Bell Aliant less capital expenditures, preferred share
dividends, distributions paid by subsidiaries to non-controlling
interest, other investing activities and Bell Aliant free cash flow.
We consider free cash flow to be an important indicator of the
financial strength and performance of our business because it shows
how much cash is available to repay debt and reinvest in our company.
We present free cash flow consistently from period to period, which
allows us to compare our financial performance on a consistent basis.
We believe that certain investors and analysts use free cash flow to
value a business and its underlying assets. The most comparable
Canadian GAAP financial measure is cash flows from operating
activities. The following table is a reconciliation of cash flows
from operating activities to free cash flow on a consolidated basis.

($ millions)
-------------------------------------------------------------------------
Q3 2009 Q3 2008
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Cash flows from operating activities 1,537 1,649
Bell Aliant distributions to BCE 73 73
Capital expenditures (704) (705)
Other investing activities (38) (732)
Cash dividends paid on preferred shares (26) (31)
Cash dividends/distributions paid by subsidiaries
to non-controlling interest (93) (92)
Bell Aliant free cash flow (100) (76)
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Free cash flow 649 86
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(3) The acquisition of the remaining 50% of the equity of Virgin not
already owned by Bell was completed on July 1, 2009. Accordingly,
beginning in Q3 2009, wireless ARPU, churn, and cost of acquisition
reflect 100% of Virgin's results. For prior periods, these metrics
reflected our previous 50% ownership but have been reported on a pro
forma basis to reflect 100% of Virgin's results.

(4) The term Adjusted net earnings does not have any standardized meaning
according to Canadian GAAP. It is therefore unlikely to be comparable
to similar measures presented by other companies. We define Adjusted
net earnings as net earnings before restructuring and other and net
losses (gains) on investments. We use Adjusted net earnings and
Adjusted EPS, among other measures, to assess the operating
performance of our ongoing businesses without the effects of after-
tax restructuring and other and net losses (gains) on investments.
We exclude these items because they affect the comparability of our
financial results and could potentially distort the analysis of
trends in business performance. Excluding these items does not imply
they are non-recurring. The most comparable Canadian GAAP financial
measure is net earnings applicable to common shares. The following
table is a reconciliation of net earnings applicable to common shares
to Adjusted net earnings on a consolidated basis and per BCE Inc.
common share.

($ millions except per share amounts)
-------------------------------------------------------------------------
Q3 2009 Q3 2008
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PER PER
TOTAL SHARE TOTAL SHARE
-------------------------------------------------------------------------
Net earnings applicable
to common shares 558 0.72 248 0.31
Restructuring and other 123 0.16 210 0.25
Net (gains) losses on
investments (32) (0.04) 30 0.04
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Adjusted net earnings 649 0.84 488 0.60
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Management's Discussion and Analysis

This release should be read in conjunction with BCE's 2009 Third Quarter MD&A
dated November 11, 2009 which is incorporated by reference in this release,
and is filed by BCE with the U.S. Securities and Exchange Commission under
Form 6-K (available at www.sec.gov) and with Canadian securities commissions
(available at www.sedar.com). This document is also available on BCE's website
at www.bce.ca.

Caution Concerning Forward-Looking Statements

Certain statements made in this news release, including, but not limited to,
statements relating to our financial guidance for 2009, and other statements
that are not historical facts, are forward-looking statements and are subject
to important risks, uncertainties and assumptions.
The results or events predicted in these forward-looking statements may differ
materially from actual results or events. As a result, we cannot guarantee
that any forward-looking statement will materialize and you are cautioned not
to place undue reliance on these forward-looking statements. These
forward-looking statements assume, in particular, that many of our lines of
business will be resilient to the current economic downturn. However, we
caution that the current adverse economic conditions make our forward-looking
statements and underlying assumptions subject to greater uncertainty and that,
consequently, they may not materialize. It is impossible to predict with
certainty the full impact that the current economic downturn and credit crisis
will have on our business or residential customers' purchasing patterns. The
forward-looking statements contained in this news release are made as of the
date of this release and, accordingly, are subject to change after such date.
Except as may be required by Canadian securities laws, we do not undertake any
obligation to update or revise any forward-looking statements contained in
this news release, whether as a result of new information, future events or
otherwise. Except as otherwise indicated by BCE, these statements do not
reflect the potential impact of any non-recurring or other special items or of
any dispositions, monetizations, mergers, acquisitions, other business
combinations or other transactions that may be announced or that may occur
after the date hereof. Forward-looking statements are provided for the purpose
of providing information about management's current expectations and plans
relating to 2009 and allowing investors and others to get a better
understanding of our operating environment. Readers are cautioned that such
information may not be appropriate for other purposes.

Material Assumptions

A number of Canadian economic and market assumptions were made by BCE in
preparing forward-looking statements for 2009 contained in this release,
including, but not limited to: (i) Canadian GDP to decrease by approximately
2%, compared to 2008, consistent with estimates by the six major banks in
Canada, (ii) the Bank of Canada's target overnight rate to remain fairly
stable at approximately 1%, (iii) the Consumer Price Index as estimated by
Statistics Canada to decline to the range of 1.0% to 1.5%, (iv) revenues
generated by the residential voice telecommunications market to continue to
decrease due to wireless substitution and other factors including e-mail and
instant messaging substitution, (v) current levels of competition to continue
for residential and business local voice telephony, as cable operators and
other telecom service providers maintain the intensity of their marketing
efforts and continue to leverage their network footprints to pursue market
share in our regions, (vi) wireless industry penetration growth in 2009 to be
similar to 2008, subject to the economic environment potentially causing a
slowing of growth.
In addition, BCE's and Bell Canada's 2009 guidance is also based on various
internal financial and operational assumptions. Our guidance related to Bell
(excluding Bell Aliant) is based on certain assumptions concerning Bell,
including, but not limited to: (i) many of our lines of business to provide
good resiliency and protection from an economic downturn so that spending on
our core wireline telephone services should not be severely impacted given the
importance of these services to both residential and business customers, (ii)
reduced housing starts and residential moves to contribute to reduced customer
turnover, (iii) business market demand to be adversely affected as business
clients revisit their investment plans due to tighter credit availability,
economic uncertainty, continued competition from offshore manufacturing and
reduced public sector spending, (iv) the softening of the Ontario and Quebec
business market to continue with the potential to drive business NAS erosion
higher, (v) more conservative investments by business customers to result in
lower capital spending requirements to support business customers, (vi) the
economic recessionary environment, increased price competition and the
introduction of new wireless entrants, potentially in late 2009, to put
pressure on ARPU and result in customer satisfaction and retention becoming
even more critical over time, (vii) residential NAS losses to decline in 2009
compared to 2008, (viii) Bell's revenue outlook was derived in the context of
a worsening economy, (ix) Bell's total net benefit plans cost, which is based
on a discount rate of 7.0% and a 2008 return on pension plan assets of
approximately (19.5%), is expected to be approximately $260 million in 2009, *
Bell's 2009 retirement benefit plans funding is estimated to be approximately
$500 million, based on a 10-year amortization of the pension solvency deficits
that arose during 2008, (xi) Bell's capital intensity in 2009 is estimated to
be in the 15% to 16% range, (xii) Bell to continue to invest in extending its
fibre network, and (xiii) Bell's 100-day plan annualized cost savings and
other cost reduction opportunities to be approximately $400 million.
Our guidance related to BCE is based on certain assumptions for 2009,
including, but not limited to: (i) restructuring and other charges in the
range of $500 million to $550 million, (ii) depreciation and amortization
expense at levels slightly above 2008, (iii) an effective tax rate of
approximately 20%, while the statutory tax rate is approximately 32%, (iv)
relatively stable cash taxes for 2009 given the accelerated utilization of
Bell's investment tax credit carry-forwards, and (v) the permanent repayment
of long-term debt maturing in 2009.
The foregoing assumptions, although considered reasonable by BCE at the time
of preparation of its financial guidance and business outlook and other
forward-looking statements, may prove to be inaccurate. Accordingly, our
actual results could differ materially from our expectations as set forth in
this news release.

Material Risks

Factors that could cause actual results or events to differ materially from
our expectations expressed in or implied by our forward-looking statements
include: general economic and credit market conditions, the level of consumer
confidence and spending, and the demand for, and prices of, our products and
services; our ability to implement our strategies and plans in order to
produce the expected benefits; our ability to continue to implement our cost
reduction initiatives and contain capital intensity while seeking to improve
customer service; the intensity of competitive activity, including the
increase in wireless competitive activity that could result from Industry
Canada's licensing of advanced wireless services spectrum, and the resulting
impact on our ability to retain existing and attract new customers, and on our
pricing strategies and financial results; increased contributions to employee
benefit plans; our ability to respond to technological changes and rapidly
offer new products and services; events affecting the functionality of, and
our ability to protect, maintain and replace, our networks, information
technology (IT) systems and software; our ability to maintain customer service
and our networks operational in the event of the occurrence of epidemics,
pandemics and other health risks; events affecting the ability of third-party
suppliers to provide to us essential products and services; labour
disruptions; the potential adverse effects on our Internet and wireless
businesses of network congestion due to a significant increase in broadband
demand; our ability to raise the capital we need to implement our business
plan, including for BCE's dividend payments and to fund capital and other
expenditures; our ability to discontinue certain traditional services as
necessary to improve capital and operating efficiencies; regulatory
initiatives or proceedings, litigation and changes in laws or regulations;
launch and in-orbit risks of satellites used by Bell TV; competition from
unregulated U.S. direct-to-home (DTH) satellite television services sold
illegally in Canada and the theft of our satellite television services; BCE's
dependence on its subsidiaries' ability to pay dividends; stock market
volatility; depending, in particular, on the economic, competitive and
technological environment at any given time, and subject to dividends being
declared by the board of directors, there can be no certainty that BCE's
dividend policy will be maintained; Bell Aliant's ability to make
distributions to BCE and Bell Canada; health concerns about radio frequency
emissions from wireless devices; and loss of key executives.
For additional information with respect to certain of these and other
assumptions and risks, please refer to BCE's 2008 Annual MD&A dated March 11,
2009 included in the BCE 2008 Annual Report, BCE's 2009 First Quarter MD&A
dated May 6, 2009, BCE's 2009 Second Quarter MD&A dated August 5, 2009, and
BCE's 2009 Third Quarter MD&A dated November 11, 2009, all filed by BCE with
the Canadian securities commissions (available at www.sedar.com) and with the
U.S. Securities and Exchange Commission (available at www.sec.gov). These
documents are also available on BCE's website at www.bce.ca.

About BCE

BCE is Canada's largest communications company, providing the most
comprehensive and innovative suite of communication services to residential
and business customers in Canada. Operating under the Bell and Bell Aliant
brands, the Company's services include telephone services, wireless
communications, high-speed Internet, digital television, IP-broadband services
and information and communications technology (ICT) services. BCE shares are
listed in Canada and the United States. For corporate information on BCE,
please visit www.bce.ca. For Bell product and service information, please
visit www.bell.ca.
SOURCE BCE Inc.

Media inquiries: Claire Fiset, Bell Media Relations, (514) 870-4739,
1-877-391-2007, claire.fiset@bell.ca; Investor inquiries: Thane Fotopoulos,
BCE Investor Relations, (514) 870-4619, thane.fotopoulos@bell.ca