BCE reports 2012 third quarter results


    --  Bell EBITDA((1)) increases 5.2%, reflecting strong
        contributions from Bell Wireless and Bell Media
    --  Wireless postpaid net activations of 148,502, up 17.1%;
        Wireless EBITDA growth of 15.2% is best Q3 performance in 5
        years; smartphone users now represent 60% of postpaid
        subscribers, driving 4.2% higher wireless ARPU and data revenue
        growth of 29.5%
    --  Bell Fibe TV net activations of 42,973 as service footprint
        expands to more than 2.8 million households; high-speed
        Internet net activations of 13,416; 11.3% year-over-year
        improvement in residential local access line losses
    --  Bell Media revenue up 25.5%, EBITDA increased 92.6%
    --  Wireline EBITDA margin of 39.0% supported by $40 million
        year-over-year reduction in operating costs
    --  BCE net earnings attributable to common shareholders of $569
        million or $0.74 per share; adjusted net earnings per share(
        (2)) of $0.76 in line with plan
    --  Reconfirming all 2012 BCE and Bell Canada financial guidance
        targets

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.

MONTREAL, Nov. 1, 2012 /CNW Telbec/ - BCE Inc. (TSX: BCE) (NYSE: BCE), 
Canada's largest communications company, today reported BCE and Bell results 
for the third quarter (Q3) of 2012.

BCE reported net earnings attributable to common shareholders of $569 million, 
compared to $642 million in Q3 2011, and adjusted net earnings attributable to 
common shareholders of $588 million, compared to $724 million last year. In 
line with plan, earnings per share (EPS) of $0.74 and Adjusted EPS of $0.76 
decreased in the third quarter of 2012 from $0.83 and $0.93 per share in Q3 
2011. The year-over-year decrease was mainly due to lower income tax expense 
in Q3 2011 from the favourable resolution of tax matters.

Bell total revenue increased 1.8% in the third quarter of 2012 as Bell 
Wireless and Bell Media revenue growth of 7.1% and 25.5%, respectively, was 
moderated by a 4.0% decrease at Bell Wireline. Bell EBITDA was up 5.2% in Q3 
on growth of 15.2% at Bell Wireless and 92.6% at Bell Media, partly offset by 
a 6.2% decline at Bell Wireline. Bell's operating performance in the quarter 
generated $1,589 million of cash flow from operating activities and 
significant free cash flow((3)) of $684 million. Year to date, total cash flow 
from operating activities increased to $4,689million, or 16.3%, and total 
free cash flow increased to $1,815 million, up 7.0% compared to last year.

"Bell is making unparalleled investments in the best new networks, products 
and content, and we're seeing the results in strong growth across our 
wireless, TV, Internet and media businesses. Bell's robust 5.2% EBITDA growth 
was driven in large part by outstanding performance at Bell Wireless and Bell 
Media, both of which posted exceptionally strong revenue and EBITDA growth," 
said George Cope, President and CEO of BCE and Bell Canada.

"Bell is bringing new competition and choice to consumers with our 
next-generation Fibe network, now serving 200,000 Fibe TV customers and 
supporting both strong Bell Internet subscriber growth and our traditional 
Home Phone business as more customers choose multiple Bell services in our 
Fibe TV coverage area, which has expanded to over 2.8 million households. 
Bell's new mobile LTE network, combined with world-leading smartphones and 
content services like Bell Mobile TV, helped bring us 148,502 net new postpaid 
subscribers - 17.1% more than last year - reduced churn, and great growth in 
Wireless data and overall revenue."

"We're executing a strategy of investment in network leadership, product 
innovation and improved customer service, and I'm proud to say the Bell team 
has made us a serious contender in every market in which Bell competes," said 
Mr. Cope. Bell is committed to achieving a clear goal - to be recognized by 
customers as Canada's leading communications company - through the execution 
of 6 Strategic Imperatives: Invest in Broadband Networks and Services, 
Accelerate Wireless, Leverage Wireline Momentum, Expand Media Leadership, 
Improve Customer Service, and Achieve a Competitive Cost Structure.

"We performed well across the business in Q3, posting another sound quarter of 
EBITDA growth and margin expansion, driven by exceptional wireless and media 
results as well as substantial net earnings and free cash flow consistent with 
our plan. Our 2012 financial plan remains on track as we reconfirm today all 
our Bell and BCE guidance targets for the year," said Siim Vanaselja, Chief 
Financial Officer for Bell and BCE. "Our continued strong free cash flow 
generation, which year to date has grown 7% over last year, has not only 
enabled significant strategic investment in Bell's broadband wireline and 
wireless platforms, but also amply supports the recent 10-cent annualized 
increase in BCE's common share dividend, effective with the dividend payment 
of October 15."

Bell Q3 operational performance
Bell's operating revenues were $4,392 million in Q3 2012, up 1.8% from $4,313 
million in Q3 2011. This was driven by total service revenue growth of 2.1% as 
Wireless and Media revenues increased significantly compared to last year. 
Total product revenues declined 1.1%, reflecting softer wireline data 
equipment sales to business customers. Bell's EBITDA grew 5.2% this quarter to 
$1,688 million on the strong performance of the Bell Wireless and Bell Media 
segments.

Bell Wireless EBITDA in Q3 2012 grew 15.2% to $554 million and service margin 
expanded to 42.4% from 39.2% last year, reflecting stronger wireless revenue 
growth of 7.1% to $1,434million as we continued to gain high-value postpaid 
customers and upgrade existing customers to smartphones, while exercising 
discipline in postpaid customer acquisition and retention spending. Postpaid 
net activations increased 17.1% to 148,502, while the postpaid customer churn 
rate improved to 1.2% from 1.5% in Q3 2011, reflecting the benefits of 
investment in customer service and retention. Smartphone users represented 60% 
of postpaid subscribers at the end of Q3, up from 43% a year earlier, which 
contributed to strong data revenue growth of 29.5% and blended ARPU growth of 
4.2%. Blended ARPU was $57.30 per month in Q3 2012, up from $55.01 in Q3 2011, 
driven by a greater number of customers in western Canada, higher roaming 
revenues, and more smartphone customers taking advantage of mobile data 
services such as Bell Mobile TV.

Bell Wireline revenue totalled $2,505 million in the quarter, down 4.0% from 
Q3 2011, as competitive and wireless substitution pressures continued to 
impact traditional voice services. Reduced spending by business customers on 
wireline data products and ICT solutions reflected continuing sluggish 
economic growth, which also contributed to the year-over-year decrease in 
overall wireline revenue this quarter.

Continued steady growth in Fibe TV and Fibe Internet drove residential data 
revenue growth of 3.5% in Q3 2012. Bell Fibe TV experienced its best quarter 
ever, adding 42,973 net new subscribers, up from 20,297 in Q3 2011. At the end 
of the third quarter, Bell Fibe TV had more than 200,000 subscribers with a 
footprint reaching over 2.8 million households, up from approximately 1.5 
million households at the end of Q3 2011. The activation of new Fibe customers 
also led to 13,416 net new high-speed Internet activations in the quarter. 
Although Bell Wireline EBITDA decreased 6.2% this quarter to $978 million, 
margins were maintained on plan at 39.0%, reflecting a $40 million, or 2.6%, 
improvement in operating costs over last year.

Bell Media reported revenue of $546 million in Q3 2012, up 25.5% from last 
year, the result of increased advertising revenues generated by Bell Media's 
broadcast of the London 2012 Games and higher subscriber fee revenue driven by 
market-based rates charged to broadcast distributors through renegotiated 
agreements for certain Bell Media specialty sports and non-sports TV services. 
Bell Media EBITDA increased 92.6% in Q3 2012 to $156 million, reflecting the 
flow-through of higher subscriber fee revenue and lower non-Olympics-related 
operating expenses. Despite the positive impact on revenues from the Olympics 
during Q3, advertising sales across Bell Media's properties continued to be 
impacted adversely by a soft advertising market.

Bell invested $688 million in new capital this quarter, a $36 million increase 
compared to Q3 2011. These investments support the continued deployment of 
broadband fibre to residential homes, neighbourhoods and businesses in Ontario 
and Québec and expansion of the Fibe TV service footprint, enhancement of 
customer service systems, the ongoing rollout of the 4G LTE network in markets 
across Canada, and the addition of new Bell and The Source stores, 
particularly in western Canada.

BCE results
BCE's operating revenue was $4,982 million in the third quarter of 2012, up 
1.5% from $4,910million in the third quarter of 2011, due to 1.8% higher 
revenues at Bell and slightly lower revenues at Bell Aliant. EBITDA grew 4.0% 
this quarter to $2,019 million, reflecting higher EBITDA at Bell driven by the 
strong contributions of Bell Wireless and Bell Media, moderated by a 
year-over-year decrease at Bell Aliant.

BCE's cash flows from operating activities were $1,589 million in Q3 2012, 
compared to $1,916million in the same period last year. Free cash flow 
available to BCE's common shareholders was $684 million in Q3 2012 compared to 
$1,005 million in Q3 2011. The year-over-year reductions were attributable 
primarily to the catch-up in accounts receivable cash collection in Q3 2011 
following the settlement of the Canada Post strike.

BCE's net earnings attributable to common shareholders decreased 11.4% in Q3 
2012 to $569million, or $0.74 per share, compared to $642 million, or $0.83 
per share, last year. The year-over-year decrease in earnings was due to the 
favourable resolution of tax matters in Q3 2011, higher depreciation expense, 
and increased interest expense, partly offset by higher EBITDA and lower 
severance, acquisition and other costs.

BCE's Adjusted EPS was $0.76 in Q3 2012, compared to $0.93 last year. Despite 
solid EBITDA growth this quarter, the decrease is attributable to the 
favourable resolution of tax matters in Q3 2011 that did not recur this year.

Financial Highlights                                                 

($ millions except per share amounts)                       
(unaudited)                              Q3 2012   Q3 2011   % change

Bell (i)                                                             

Operating Revenues                         4,392     4,313       1.8%

EBITDA                                     1,688     1,605       5.2%

BCE                                                                  

Operating Revenues                         4,982     4,910       1.5%

EBITDA                                     2,019     1,941       4.0%

Net Earnings Attributable to Common                         
Shareholders                                 569       642    (11.4%)

EPS                                         0.74      0.83    (10.8%)

Adjusted EPS                                0.76      0.93    (18.3%)

Cash flows from operating activities       1,589     1,916    (17.1%)

Free Cash Flow                               684     1,005    (31.9%)

(i)  Bell includes the Bell Wireless, Bell Wireline and Bell Media
segments.


Bell Wireless
Bell Wireless continued to accelerate its operating momentum in Q3 2012, 
posting another strong quarter of EBITDA growth, margin expansion and cash 
flow growth, as well as substantial postpaid subscriber activations, increased 
smartphone penetration, and higher blended ARPU driven by strong growth in 
mobile data usage. 


    --  Bell Wireless operating revenues increased 7.1% in the third
        quarter of 2012 to $1,434 million. Service revenue was up 6.4%
        to $1,307 million due to the larger postpaid subscriber base
        and growth in wireless data usage. Product revenue increased
        10.8% in the quarter to $113 million as a result of a higher
        percentage of smartphones in the sales mix.
    --  Blended ARPU was $57.30 per month in Q3 2012, up 4.2% from
        $55.01 per month in Q3 2011, due to an increased postpaid mix,
        a higher proportion of postpaid customers using smartphones,
        which drove mobile data revenue growth of 29.5%, and a greater
        number of higher-ARPU postpaid customers from western Canada.
    --  Smartphone subscribers represented 60% of the total postpaid
        base at the end of Q3, compared to 43% last year.
    --  Bell Wireless EBITDA reached $554 million in the third quarter,
        up 15.2%, the highest Q3 rate of growth in 5 years. The
        increase is mainly attributable to 7.1% higher wireless
        operating revenues and operating cost growth of 2.6%,
        reflecting disciplined spending on postpaid customer
        acquisition and retention.
    --  EBITDA margin as a percentage of wireless service revenue
        increased 3.2 percentage points to 42.4% in Q3 on significant
        service revenue flow-through and cost control.
    --  Cost of acquisition per gross activation increased to $397, up
        just 1.3% from Q3 2011, due to increased spending on
        advertising and higher sales-related costs.
    --  Postpaid gross activations increased slightly to 372,574 this
        quarter compared to 372,346 in Q3 2011. Activations in western
        Canada increased due to more points of distribution and
        increased advertising, even as some customers delayed purchases
        in anticipation of the Apple iPhone 5 launch on September 21.
    --  Prepaid gross activations decreased 23.0% to 118,122 due
        primarily to aggressive acquisition offers from competitors
        targeted at lower-ARPU subscribers and Bell's continued focus
        on acquiring postpaid customers.
    --  Blended churn rate improved to 1.6% in the quarter from 2.0% in
        Q3 2011. Postpaid churn decreased to 1.2% from 1.5%, reflecting
        the positive impact of retention spending and lower customer
        deactivation rates on smartphones compared to other devices.
        Prepaid churn declined to 3.3% from 3.9% as a result of fewer
        customer deactivations.
    --  Postpaid net activations increased 17.1% this quarter to
        148,502 from 126,854 in Q3 2011, while prepaid net customer
        losses decreased to 18,738 in Q3 2012 from 41,105 last year.
    --  The Bell Wireless client base reached 7,576,027 at the end of
        Q3 2012, a 2.8% increase over last year.
    --  Bell continues to offer customers access to Canada's largest 4G
        LTE network, now reaching more than 61% of the Canadian
        population in more than 40 markets across 7 provinces and
        territories. LTE complements Bell's 4G HSPA+ and enhanced 4G
        HSPA+ DC (Dual Cell) networks, offering coast-to-coast coverage
        to more than 97% and more than 83% of the Canadian population,
        respectively.
    --  Bell introduced several new smartphones, including Apple's
        iPhone 5, Motorola's ATRIX HD LTE and RAZR V, and the Sierra
        Wireless 763 4G LTE Turbo Hotspot.

Bell Wireline
Bell Fibe TV activations continued to accelerate this quarter, driving growth 
in Fibe Internet and Home Phone services as well as strong residential data 
revenue growth. This helped moderate the ongoing decline in traditional voice 
revenues and the operating performance of Bell Business Markets, which 
continued to be adversely impacted by competitive re-pricing pressures and 
reduced customer spending due to a soft economy. Although wireline EBITDA 
decreased year over year, margins were maintained in line with plan at 39.0%, 
reflecting lower wireline operating expenses as a result of rigorous cost 
control and productivity improvements.
    --  Bell Wireline revenues totalled $2,505 million, down 4.0% from
        Q3 2011. The decline reflects a decrease in local and access,
        long distance and equipment and other revenues, offset by
        slightly higher year-over-year data revenues.
    --  Data revenues increased 0.1% to $1,386 million due mainly to
        higher TV revenue driven by strong subscriber growth in Fibe
        TV.
    --  Local and access revenues declined 7.9% to $654 million. Total
        NAS at the end of the quarter was 5,768,609, a 7.0% decline
        year over year, attributable to increased competition and a
        reduction in access lines and digital circuits as customers
        continue to adopt wireless and IP-based technologies.
    --  Long distance revenues declined 13.9% to $192 million. The
        year-over-year decline reflected fewer minutes of use by
        residential and business customers resulting from NAS line
        losses and technology substitution, ongoing rate pressures, and
        decreased sales of global long distance minutes.
    --  Equipment and other revenue decreased 8.0% to $195 million due
        mainly to lower year-over-year legacy wireline
        telecommunications equipment sales, promotional offers on TV
        set-top boxes, and lower consumer electronic equipment sales at
        The Source.
    --  Bell Wireline EBITDA was $978 million, down 6.2% year over year
        on lower operating revenues, partly offset by a 2.6%
        improvement in operating costs. EBITDA margin was 39.0% this
        quarter compared to 40.0% in Q3 2011.
    --  TV net activations totalled 15,846 compared to 26,169 in Q3
        2011. Bell Fibe TV added 42,973 net new customers compared to
        20,297 in the third quarter of 2011. Bell Fibe TV subscribers
        passed 200,000 this quarter as the Fibe TV footprint reached
        over 2.8 million households at the end of Q3. This was
        moderated by lower satellite TV net activations, due to the
        rollout of IPTV by competing service providers, aggressive
        customer conversion offers from cable competitors, and Bell
        customer migrations to Fibe TV.
    --  The Bell TV subscriber base totalled 2,136,765 at the end of
        Q3, a year-over-year increase of 2.9%.
    --  Bell added 13,416 new net high-speed Internet customers in Q3,
        compared to a net loss of 101 last year. The improvement
        reflects the pull-through effect of service bundle offers that
        include Fibe TV, enhanced competitive offers, and continued
        broadband fibre network expansion, all of which contributed to
        lower customer churn year over year.
    --  NAS net losses in the third quarter of 2012 decreased to
        109,280 from net losses of 110,629 in the third quarter of
        2011, reflecting residential NAS line losses of 84,540, 11.3%
        fewer than last year, as Bell continued to reduce residential
        NAS turnover in Fibe TV service areas. Business access losses
        increased to 24,740 from 15,362 in Q3 2011.

Bell Media
Bell Media delivered strong financial and operational performance this 
quarter, with higher subscriber fee revenues driven by market-based rates 
charged to broadcast distributors for certain Bell Media specialty sports and 
non-sports services, and higher revenues from broadcasting the 2012 London 
Games.
    --  Bell Media's operating revenue increased 25.5% this quarter to
        $546 million from $435 million last year.
    --  Not including the Olympics, advertising sales in Q3 across Bell
        Media's television, radio and digital media properties
        continued to be impacted by a soft advertising market as a
        result of a slow-growing economy.
    --  Bell Media EBITDA increased 92.6% to $156 million, from $81
        million in Q3 2011, due to higher operating revenues and lower
        overall operating costs.
    --  The financial impact from the NHL lockout was not material this
        quarter.
    --  CTV closed the season with more Top 20 rated programs in Canada
        than its competitors in key demos for the summer measurement
        period.
    --  In Q3, Bell Media websites streamed more than 177 million
        videos, welcomed an average of more than 3.5 million unique
        visitors each month, and served a total of 121 billion page
        views.

Astral Update
Following extensive public hearings held during the week of September 10, 
2012, the CRTC on October 18 denied BCE's application to acquire 
Montréal-based Astral Media. On October 22, BCE requested that the federal 
Cabinet issue a policy direction to the CRTC requiring the commission adhere 
to its existing policies when considering broadcast acquisitions. BCE 
announced its proposed $3.38-billion acquisition of Astral on March 16, 2012, 
and the transaction was approved by over 99% of Astral shareholders and by the 
Québec Superior Court. Should the CRTC's decision stand, one of the closing 
conditions for BCE's acquisition of Astral will not be met and the transaction 
will not proceed. The transaction also requires approval by the Competition 
Bureau. On October 25, Astral announced an extension of the Outside Date to 
December 16, 2012; BCE and Astral both have the right to further postpone the 
Outside Date to January 15, 2013.

Maple Leaf Sports & Entertainment (MLSE) transaction completed
On August 22, 2012, the sale by Ontario Teachers' Pension Plan Board of its 
ownership interest in MLSE to BCE, the BCE Master Trust Fund and Rogers 
Communications was completed. The combined financial commitments of BCE ($398 
million) and the BCE Master Trust Fund ($135million) represent an aggregate 
37.5% interest in MLSE, equal to Rogers' interest. The acquisition secures 
Bell's access to TV, mobile, digital online and radio broadcast rights to the 
premier professional sports teams in Canada's largest marketplace, including 
the Toronto Raptors, Maple Leafs, Marlies and Toronto FC. MLSE also has major 
real estate and entertainment assets including the Air Canada Centre and the 
Maple Leaf Square condominium and commercial complex, operates sports 
specialty TV channels, and is the exclusive partner of the NBA in Canada.

Acquisition of Q9 Networks completed
On October 17, 2012, an investor group comprising BCE, Ontario Teachers' 
Pension Plan Board, Providence Equity Partners LLC and Madison Dearborn 
Partners LLC announced the completion of its $1.1-billion acquisition of 
Canadian data centre leader Q9 Networks Inc. Concurrent with the acquisition 
closing, BCE and its partners have settled the reverse break-fee proceedings 
initiated in 2008 after the termination of the proposed privatization of BCE. 
Under the settlement, BCE received certain consideration, including increased 
equity ownership in Q9 and a path to full ownership with an option at a 
favourable valuation to acquire the partners' entire equity interest in Q9 in 
the future.

Bell partners with Cirque du Soleil in new Québec-based content development 
company
On August 28, 2012, Bell and Cirque du Soleil announced the formation of a new 
joint venture to develop Québec-based media content for television, film, 
digital, and gaming platforms. Focused on the development of entertainment 
projects for sale and licensing around the world, the venture is another 
extension of Bell's strategy of investment in the development and distribution 
of Québec content. Cirque du Soleil will contribute its library of existing 
content and current projects to the partnership.

Bell Let's Talk mental health update
Now in its second year, the Bell Let's Talk Community Fund announced more than 
$1 million in grants to 60 community-based organizations, charities and 
hospitals across the country. The fund provides grants from $5,000 to $50,000 
to support local initiatives improving access to mental health care. Bell also 
inaugurated the largest-ever fund raiser for mental health in Québec, the Bal 
des Lumières, to be held March 20, 2013, at the Bell Centre in Montréal. A 
partnership between Bell, CGI, the Montréal Canadiens and National Bank, the 
event will raise funds for Québec's Mental Illness Foundation, the Fondation 
de l'Hôpital Louis-H. Lafontaine, and the Douglas Mental Health University 
Institute Foundation. On October 11, the annual Bell Event in support of the 
Centre for Addiction and Mental Health (CAMH) resulted in a $1.5 million 
contribution to this world-class research and treatment centre in Toronto. 
Bell continues its support for the Canadian Forces as Presenting Sponsor of 
the True Patriot Love Dinner in Toronto tonight. Its third year presenting 
True Patriot Love, Bell's support for the event goes directly to programs 
aimed at addressing the mental health challenges faced by Canadian Forces 
members and their families.

Bell Aliant Regional Communications
Bell Aliant's revenues decreased 0.3% to $698 million in the third quarter of 
2012, reflecting the continued erosion of its legacy voice business offset 
partly by higher revenues from growth in Internet, data, TV, wireless, and 
higher equipment and other sales. Bell Aliant's EBITDA decreased by 1.5% to 
$331 million, due to lower operating revenues and slightly higher operating 
costs.

Common Share Dividend
BCE's Board of Directors declared a quarterly dividend of $0.5675 per common 
share, payable on January 15, 2013 to shareholders of record at the close of 
business on December 14, 2012.

Outlook
BCE's guidance for 2012, as provided on February 9, 2012, which was updated on 
August 8, 2012 and reconfirmed on November 1, 2012, is as follows:
                                                       


                    February 9       August 8     Current Guidance
2012 Guidance            Guidance        Guidance       Expectation 
Bell (i)                                                           
Revenue Growth            3% - 5%        Lower end          On track 
EBITDA Growth             2% - 4%       Higher end          On track 
Capital Intensity       ≤16%          ~16%            On track 
BCE                                                                
Adjusted EPS (ii)    $3.13 - $3.18    $3.15 - $3.20         On track 
Free Cash Flow      
(iii)                $2.35B - $2.5B      No change          On track 
Annual common       
dividend per share         $2.17            $2.27           On track 
Dividend payout                        
ratio (iv)                                                         
- Adjusted EPS       approx. 69%       No change          On track 
- Free cash flow     approx. 69%       No change          On track 
(i)   Bell's 2012 financial guidance for revenue, EBITDA and capital 
  intensity is exclusive of Bell Aliant. 
(ii)  EPS before severance, acquisition and other costs and net 
  gains/losses on investments. 
(iii) Free cash flow before common share dividends and including 


      dividends from Bell Aliant.

(iv)  Calculated using the mid-point of BCE's 2012 Adjusted EPS and
      free cash flow guidance ranges.


Call with Financial Analysts
BCE will hold a conference call for financial analysts to discuss its third 
quarter results on Thursday, November 1 at 8:00 am (Eastern). Media are 
welcome to participate on a listen-only basis. To participate, please dial 
toll-free 1-800-952-6845 or 416-695-7848. A replay will be available for one 
week by dialing 1-800-408-3053 or 905-694-9451 and entering pass code 1375865#. 
There will also be a live audio webcast of the call available on BCE's website 
at: 
http://bce.ca/investors/investorevents/all/show/bce-q3-2012-results-conference-call. 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 does not have any standardized meaning under IFRS. 


    Therefore, it is unlikely to be comparable to similar measures
    presented by other companies. We define EBITDA as operating
    revenues less operating costs, as shown in BCE's consolidated
    income statements.
    EBITDA for BCE's segments is the same as segment profit as reported
    in Note 3 to BCE's Q3 2012 consolidated financial statements.
    We use EBITDA to evaluate the performance of our businesses as it
    reflects their ongoing profitability. 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.
    EBITDA also is one component in the determination of short-term
    incentive compensation for all management employees. EBITDA has no
    directly comparable IFRS financial measure. Alternatively, the
    following table provides a reconciliation of net earnings to
    EBITDA.

(In millions of Canadian dollars)                              
                                              Q3 2012   Q3 2011

Net earnings                                      689       736

Severance, acquisition and other costs             24       130

Depreciation                                      674       628

Amortization                                      180       180

Finance costs                                                  

  Interest expense                                223       210

  Interest on employee benefits obligations       243       247

Expected return on pension plan assets          (267)     (259)

Other expense (income)                              5      (11)

Income taxes                                      248        80

EBITDA                                          2,019     1,941

(2) The terms Adjusted net earnings and Adjusted EPS do not have any
    standardized meaning according to IFRS. They are therefore unlikely
    to be comparable to similar measures presented by other companies.
    We define Adjusted net earnings as net earnings attributable to
    common shareholders before severance, acquisition and other costs,
    and net (gains) losses on investments. We define Adjusted EPS as
    Adjusted net earnings per BCE common share.
    We use Adjusted net earnings and Adjusted EPS, among other
    measures, to assess the performance of our businesses without the
    effects of severance, acquisition and other costs, and net (gains)
    losses on investments, net of tax and non-controlling interest. 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 IFRS financial measures are net earnings
    attributable to common shareholders and EPS. The following table is
    a reconciliation of net earnings attributable to common
    shareholders and EPS to Adjusted net earnings on a consolidated
    basis and per BCE common share (Adjusted EPS), respectively.

(In millions of Canadian dollars, except per share amounts)
                                             Q3 2012         Q3 2011
                                                   PER             PER
                                         TOTAL   SHARE   TOTAL   SHARE

Net earnings attributable to common                             
shareholders                               569    0.74     642    0.83

Severance, acquisition and other costs      19    0.02      82    0.10

Adjusted net earnings                      588    0.76     724    0.93

(3) The term free cash flow does not have any standardized meaning
    according to IFRS. 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,
    excluding acquisition costs paid, and dividends/distributions
    received from Bell Aliant less capital expenditures, preferred
    share dividends, dividends/distributions paid by subsidiaries to
    non-controlling interest 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 IFRS 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.

(In millions of Canadian dollars)                                    
                                                    Q3 2012   Q3 2011

Cash flows from operating activities                  1,589     1,916

Bell Aliant dividends/distributions to BCE               48        48

Capital expenditures                                  (832)     (814)

Cash dividends paid on preferred shares                (27)      (31)

Cash dividends/distributions paid by subsidiaries            
to non-controlling interest                            (85)      (75)

Acquisition costs paid                                   39         7

Bell Aliant free cash flow                             (48)      (46)

Free cash flow                                          684     1,005


Caution Concerning Forward-Looking Statements
Certain statements made in this news release, including, but not limited to, 
statements relating to our 2012 financial guidance (including revenues, 
EBITDA, capital intensity, Adjusted EPS, free cash flow and dividend payout 
ratios), our business outlook, objectives, plans and strategic priorities, 
BCE's annual common dividend per share, the completion of BCE's proposed 
acquisition of Astral Media Inc. (Astral), our 4G LTE wireless and Fibe TV 
network and broadband fibre deployment plans, and other statements that are 
not historical facts, are forward-looking. Forward-looking statements may 
include words such as aim, anticipate, assumption, believe, could, expect, 
goal, guidance, intend, may, objective, outlook, plan, project, seek, should, 
strategy, strive, target and will. All such forward-looking statements are 
made pursuant to the "safe harbour" provisions of applicable Canadian 
securities laws and of the United States Private Securities Litigation Reform 
Act of 1995. 
Forward-looking statements, by their very nature, are subject to inherent 
risks and uncertainties and are based on several assumptions, both general and 
specific, which give rise to the possibility that actual results or events 
could differ materially from our expectations expressed in or implied by such 
forward-looking statements. 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. The forward-looking 
statements contained in this news release describe our expectations at 
November 1, 2012 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, forward-looking statements do 
not reflect the potential impact of any nonrecurring 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 November 1, 2012. The financial impact of these transactions and 
non-recurring and other special items can be complex and depends on the facts 
particular to each of them. We therefore cannot describe the expected impact 
in a meaningful way or in the same way we present known risks affecting our 
business. Forward-looking statements are presented for the purpose of 
providing information about management's current expectations and plans 
relating, in particular, to 2012, and allowing investors and others to obtain 
a better understanding of our anticipated operating environment. Readers are 
cautioned that such information may not be appropriate for other purposes. 
Material Assumptions
A number of economic, market, operational and financial assumptions were made 
by BCE in preparing its forward-looking statements for 2012 contained in this 
news release, including, but not limited to: 
Canadian Economic and Market Assumptions 


    --  Growth in the Canadian economy of 2.2% in 2012 based on the
        Bank of Canada's most recent estimate, a 10 basis point
        increase compared with an earlier estimate of 2.1%;
    --  continued weak product sales, reflecting deferred business
        customer spending given the slow pace of economic growth;
    --  a continued soft advertising market for Bell Media;
    --  an ongoing intense level of wireline competition in both
        consumer and business markets;
    --  higher wireline replacement, due primarily to increasing
        wireless and Internet-based technological substitution; and
    --  wireless industry penetration gain of 4 to 5 basis points in
        2012 driven, in particular, by increased competition, the
        accelerating adoption of smartphones, tablets and data
        applications, as well as by the introduction of more LTE
        devices.

Operational Assumptions Concerning Bell Wireline (excluding Bell Aliant)
    --  Stabilizing residential NAS line erosion rate as we leverage
        our broadband investment in IPTV to drive three-product
        household penetration, increase our MDU market share, and
        generate higher pull-through attach rates for our residential
        Internet and home phone services;
    --  in particular, targeted retention and service bundle offers,
        customer win backs and better service execution to contribute
        to the improvement in residential NAS line losses year over
        year, subject to the risk of more aggressive service bundle
        offers from our cable TV competitors and marketing actions from
        the newer wireless entrants which could lead to higher
        residential NAS line losses;
    --  increased subscriber acquisition at Bell TV to be driven by
        increased customer adoption of Fibe TV, and our ability to seek
        greater penetration within the MDU market, capitalize on our
        extensive retail distribution network, which includes The
        Source, and capitalize on our market leadership position in
        high definition (HD) programming;
    --  improved subscriber acquisition at Bell Internet to be driven
        by pull-through from Fibe TV and increased adoption of Fibe
        Internet packages as we leverage our expanding broadband fibre
        network to offer higher-speed service to customers in more
        areas;
    --  gradual business improvement in the performance of our Business
        Markets unit in 2012, based on increased business customer
        spending on ICT technology driven by an improving economy,
        subject to the risk of business customers adopting more
        conservative strategies which could result in lower capital
        spending requirements, deferral of ICT projects and increased
        NAS erosion;
    --  cost savings and labour efficiency gains to be achieved from a
        reduced management workforce, lower corporate support group
        costs, renegotiated contracts with our vendors and outsource
        suppliers, client care and field service productivity
        improvements, managing content costs and reducing traffic that
        is not on our own network;
    --  continued customer migration to IP-based systems and
        competitive re-price pressures in our business and wholesale
        markets;
    --  increasing EBITDA contribution from growth services; and
    --  approximately 3.3 million Bell Fibe TV-ready households by the
        end of 2012.

Operational Assumptions Concerning Bell Wireless (excluding Bell Aliant)
    --  Bell Wireless to benefit from the flow-through of significant
        investments made in 2011 in customer acquisition and retention,
        along with continued acceleration in smartphone activations and
        data usage;
    --  incumbents and newer wireless entrants to continue aggressive
        competition in 2012 and newer wireless entrants to continue
        enhancing the breadth and reach of their networks, improving
        their distribution reach and expanding their device portfolios;
    --  wireless revenue growth to be underpinned by ARPU driven by a
        higher mix of smartphone and higher-value postpaid customers,
        increased distribution in western Canada, new services, and
        continued disciplined price management;
    --  Bell Wireless to benefit from ongoing technological
        improvements by manufacturers in our handset and device lineup
        and from faster data speeds that are allowing our clients to
        optimize the use of our services;
    --  Bell Wireless to maintain a reasonable market share of the
        incumbent wireless postpaid market; and
    --  higher subscriber acquisition and customer retention costs, as
        well as the continued deployment of our wireless LTE network in
        urban markets while continuing to leverage our wireless
        high-speed packet access plus (HSPA+) network.

Operational Assumptions Concerning Bell Media
    --  Building and maintaining strategic supply arrangements for
        content on four screens, successfully acquiring high-rated
        programming and differentiated content to execute on Bell's
        multi-screen content strategy, producing and commissioning
        high-quality Canadian content, and producing market-leading
        news;
    --  revenue growth in our specialty service operations to be driven
        by market-based rates charged to broadcast distributors;
    --  increased costs to secure content in our sports broadcast
        operations as we face greater competition from both new and
        established entrants, and as market rates for specialty content
        generally increase;
    --  investment in programming and marketing in combination with
        ongoing investment in high definition services;
    --  maintaining our favourable market position in our radio
        operations by leveraging strategic investments made in 2011;
        and
    --  the achievement of productivity gains and other operating
        efficiencies related to Bell Media integration synergies.

Financial Assumptions Concerning Bell (excluding Bell Aliant) and BCE
    --  Bell's total employee benefit plans cost to be approximately
        $90 million, based on an estimated accounting discount rate of
        5.1% and an expected return on plan assets of 6.75%, comprised
        of an estimated above EBITDA employee benefit plans service
        cost of approximately $170 million and an estimated below
        EBITDA net employee benefit finance return of approximately
        $100 million;
    --  Bell's total pension plan cash funding to be approximately $375
        million;
    --  Bell's cash taxes to be approximately $300 million;
    --  net interest paid to be approximately $675 million;
    --  BCE's total employee benefit plans cost to be approximately
        $150 million, including approximately $60 million for Bell
        Aliant, comprised of an estimated above EBITDA employee benefit
        plans service cost of approximately $250 million and an
        estimated below EBITDA net employee benefit finance return of
        approximately $100 million;
    --  depreciation and amortization expense approximately $125
        million higher compared to 2011;
    --  severance, acquisition costs and other of approximately $100
        million;
    --  an effective tax rate of approximately 22%;
    --  tax adjustments (per share) of $0.18; and
    --  an annual common share dividend of $2.27 per share.

The foregoing assumptions, although considered reasonable by BCE on November 
1, 2012, mayprove to be inaccurate. Accordingly, our actual results could 
differ materially from our expectations as set forth in this news release.

Material Risks
Important risk factors that could cause our assumptions and estimates to be 
inaccurate and actual results or events to differ materially from those 
expressed in or implied by our forward- looking statements, including our 2012 
financial guidance, are listed below. The realization of our forward-looking 
statements, including our ability to meet our 2012 financial guidance, 
essentially depends on our business performance which, in turn, is subject to 
many risks. Accordingly, readers are cautioned that any of the following risks 
could have a material adverse effect on our forward-looking statements. These 
risks include, but are not limited to:
    --  the intensity of competitive activity, including the increase
        in wireless competitive activity resulting from new wireless
        entrants and their ability to expand services, and the
        resulting impact on our ability to retain existing customers
        and attract new ones, as well as on our pricing strategies,
        ARPU and financial results;
    --  the level of technological substitution contributing to reduced
        utilization of traditional wireline voice services and the
        increasing number of households that use only wireless
        telephone services;
    --  the increased adoption by customers of alternative TV services;
    --  variability in subscriber acquisition and retention costs based
        on subscriber acquisitions, retention volumes, smartphone sales
        and subsidy levels;
    --  regulatory initiatives or proceedings, litigation, changes in
        laws or regulations and tax matters;
    --  general economic and financial 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, including our ability to
        continue to implement our cost reduction initiatives and
        contain capital intensity while seeking to improve customer
        service;
    --  our ability to anticipate and respond to technological change,
        upgrade our networks and rapidly offer new products and
        services;
    --  our failure to maintain network operating performance including
        as a result of the significant increase in broadband demand and
        in the volume of wireless data driven traffic;
    --  events affecting the functionality of, and our ability to
        protect, maintain and replace, our networks, equipment,
        facilities, IT systems, software and other assets;
    --  our failure to implement, on a timely basis, or maintain
        effective IT systems and the complexity and costs of our IT
        environment;
    --  the complexity of our product offerings and pricing plans;
    --  events affecting the ability of third-party suppliers to
        provide to us, and our ability to purchase, essential products
        and services;
    --  the quality of our network and customer equipment and the
        extent to which they may be subject to manufacturing defects;
    --  ineffective management of changes resulting from restructurings
        and other corporate initiatives and from the integration of
        business units and business acquisitions;
    --  increased contributions to employee benefit plans;
    --  labour disruptions;
    --  capital and other expenditure levels, financing and debt
        requirements and 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 and
        generally meet our financial obligations;
    --  our ability to discontinue certain traditional services as
        necessary to improve capital and operating efficiencies;
    --  launch and in-orbit risks of satellites used by Bell ExpressVu
        Limited Partnership;
    --  the theft of our satellite television services;
    --  Bell Media's significant dependence on continued demand for
        advertising, and the potential adverse effect thereon from
        challenging economic conditions, cyclical and seasonal
        variations and competitive pressures;
    --  the adverse effect of new technology and increasing
        fragmentation in Bell Media's television and radio markets;
    --  potential increases in royalties payable by Bell Media under
        licences pursuant to the Copyright Act;
    --  health concerns about radio frequency emissions from wireless
        devices;
    --  our ability to maintain customer service and our networks
        operational in the event of the occurrence of environmental
        disasters or epidemics, pandemics and other health risks;
    --  employee retention and performance;
    --  BCE's dependence on the ability of its subsidiaries, joint
        ventures and other companies in which it has an interest to pay
        dividends and make other distributions;
    --  there can be no certainty that dividends will be declared by
        BCE's board of directors or that BCE's dividend policy will be
        maintained;
    --  stock market volatility; and
    --  the completion of our proposed acquisition of Astral is subject
        to closing conditions, termination rights and other risks and
        uncertainties, including, without limitation, regulatory
        approvals, including from the CRTC and Competition Bureau;
        consequently, there can be no certainty that the transaction
        will occur or that it will occur on the terms and conditions
        currently contemplated and, should the transaction proceed,
        that anticipated benefits will be realized.

We caution that the foregoing list of risk factors is not exhaustive and other 
factors could also adversely affect our results.

We encourage investors to also read BCE's 2011 Annual MD&A dated March 8, 2012 
(included in the BCE 2011 Annual Report), BCE's 2012 First Quarter MD&A dated 
May 2, 2012, BCE's 2012 Second Quarter MD&A dated August 7, 2012 and BCE's 
2012 Third Quarter MD&A dated October 31, 2012, for additional information 
with respect to certain of these and other assumptions and risks, 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 a comprehensive and 
innovative suite of broadband communication services to residential and 
business customers under the Bell and Bell Aliant brands. Bell Media is 
Canada's premier multimedia company with leading assets in television, radio 
and digital media, including CTV, Canada's leading television network, and the 
country's most-watched specialty channels.

The Bell Mental Health Initiative is a multi-year charitable program that 
promotes mental health across Canada via the Bell Let's Talk anti-stigma 
campaign and support for community care, research and workplace best 
practices. To learn more, please visit Bell.ca/LetsTalk. For BCE corporate 
information, please visit BCE.ca. For Bell product and service information, 
please visit Bell.ca. For Bell Media, please visit BellMedia.ca.



Media inquiries: Jean Charles Robillard Bell Communications (514) 870-4739 
jean_charles.robillard@bell.ca

Investor inquiries: Thane Fotopoulos BCE Investor Relations (514) 870-4619 
thane.fotopoulos@bell.ca

SOURCE: BELL CANADA

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