BCE reports second quarter 2013 results

                   BCE reports second quarter 2013 results

PR Newswire

MONTREAL, Aug. 8, 2013

2013 financial guidance increased

  *Wireless postpaid net activations of 96,390 and 2.7% higher blended ARPU
    drive wireless service revenue growth of 6.1%; Wireless service margin
    increases to 45.9%
  *Best-ever Bell Fibe TV net customer activations of 50,555, a 31.4%
    increase; network access service (NAS) landline losses improve 12.8%
  *Bell EBITDA up 1.5% on Wireless and Media EBITDA growth of 8.9% and 3.3%,
    respectively, as consolidated Bell EBITDA margin held steady at 39.4%
  *Improving Wireline revenue and EBITDA results as operating mix
    increasingly dominated by TV and Internet growth services
  *Net earnings attributable to common shareholders of $571 million, or $0.74
    per common share; Adjusted earnings per share of $0.77 in line with plan
  *Strong 12% growth in free cash flow to $903 million
  *Acquisition of Astral Media Inc. (Astral) completed on July 5

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, Aug. 8, 2013 /PRNewswire/ - BCE Inc. (TSX, NYSE: BCE), Canada's
largest communications company, today reported BCE and Bell results for the
second quarter (Q2) of 2013, and increased financial guidance for 2013 to
reflect the acquisition of Astral.


($ millions except per share amounts)                             
(unaudited)                                       Q2 2013   Q2 2012   % change
Operating revenues                                 4,424    4,341      1.9%
EBITDA                                             1,744    1,718      1.5%
Operating revenues                                 5,000    4,925      1.5%
EBITDA                                             2,066    2,044      1.1%
Net earnings attributable to common                               
shareholders                                          571       732    (22.0%)
EPS                                                 0.74     0.94   (21.3%)
Adjusted EPS                                        0.77     0.97   (20.6%)
Cash flows from operating activities               1,868    1,904    (1.9%)
Free cash flow                                       903      806     12.0%

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

"At Bell, we're dedicated to bringing the world's most advanced communications
services to Canadians - fast-growing mobile LTE and fibre networks delivering
new choices in wireless, TV, Internet, media and business communications.
Bell's unmatched investment in Canada's broadband infrastructure, innovative
new products, and strong execution by the almost 60,000 members of the Bell
national team have resulted in robust financial performance and rapid
expansion in our growth services," said George Cope, President and CEO of BCE
and Bell Canada.

"Increasing smartphone adoption and use of data services like Bell Mobile TV
supported strong revenue and EBITDA growth at Bell Wireless. Our rapidly
expanding Fibe footprint drove the highest number of Fibe TV customer
additions since its launch, as well as growing Internet performance and
improvement in our traditional landline business as more customers bundled
Bell services. And with solid financial performance in Q2 supported by
increased advertising and revenue from sports and other specialty services,
Bell Media remains Canada's top media company - a competitive position further
strengthened with the addition of the Astral team, especially in the Québec
media marketplace," 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 & Services, Accelerate Wireless,
Leverage Wireline Momentum, Expand Media Leadership, Improve Customer Service,
and Achieve a Competitive Cost Structure.

"We delivered a solid set of financial results in Q2, backed by continued
wireless postpaid strength along with good operational progress in our
wireline business and a strong contribution from our media business," said
Siim Vanaselja, Chief Financial Officer for BCE and Bell. "Our successful
closing of the acquisition of Astral supports the increased 2013 financial
guidance we're announcing today. After absorbing integration and other
acquisition-related costs in the second half of 2013, we expect to begin
realizing the full financial benefits of this acquisition in 2014 with strong
free cash flow accretion to support our dividend growth objective."

BCE's net earnings attributable to common shareholders were $571 million in Q2
2013, or $0.74 per common share, compared to $732 million, or $0.94 per common
share, in Q2 2012. In line with plan, Adjusted earnings per share (EPS)^(1)
was $0.77 per common share, down $0.20 from last year. The year-over-year
decrease was due to the higher value of uncertain tax positions favourably
resolved in Q2 2012, losses on equity derivative contracts entered into to
economically hedge future payments under our share-based compensation plans,
and increased interest expense related to the financing of our acquisition of

BCE's cash flows from operating activities were $1,868 million in Q2 2013,
down $36 million over last year, due largely to the timing of supplier
payments, increased interest payments from a higher average level of long-term
debt, and higher income taxes. Free cash flow^(2) available to BCE's common
shareholders increased $97 million, or 12%, this quarter to $903 million,
driven mainly by higher EBITDA^(3) and lower capital expenditures.

At the end of Q2, BCE (including Bell Canada and Bell Aliant) served a total
of 7,860,429 wireless subscribers, up 3.5% from Q2 2012; total TV subscribers
of 2,377,021 (which includes 495,038 IPTV customers), a 5.3% increase; total
high-speed Internet subscribers of 3,054,427, up 1.5%; and total NAS lines of
7,851,441, a decrease of 7.0%.

Bell operating revenues in Q2 2013 grew 1.9% to $4,424 million, driven by a
1.8% increase in service revenues that reflects growth in wireless, TV,
Internet, media and business IP connectivity and solutions. Product revenues
were also up 2.9% this quarter, due to increased data product sales to large
enterprise customers.

Bell EBITDA increased 1.5% to $1,744 million, with 8.9% EBITDA growth at Bell
Wireless and 3.3% at Bell Media. This was moderated by a 2.9% decrease in Bell
Wireline's EBITDA, which represents an improving trend over Q1 2013 and all
previous quarters in 2012. Bell's consolidated EBITDA margin in Q2 2013
remained relatively unchanged at 39.4% compared to 39.6% in Q2 2012,
reflecting strong wireless revenue flow-through, controlled spending on
wireless subscriber acquisition and retention, slower wireline voice erosion,
the increasing scale of Bell Fibe TV, and pricing and cost discipline across
the company.

Bell is urging the federal government to close the loopholes in new wireless
regulations that favour major US wireless carriers like Verizon Communications
Inc. (Verizon) with a range of advantages originally intended for competitive
wireless startups. Bell is always ready to compete but the playing field needs
to be level. Special benefits available to companies like Verizon include
preferred access to Canada's wireless spectrum, the right to access the
networks of Canadian carriers, and the ability to acquire wireless startups in
Canada that Canadian companies like Bell cannot. Yet Canadian carriers have no
such reciprocal rights in the US or any other country. Considering the cost to
Canadians and the impact on investment, innovation and employment in Canadian
wireless, the campaign to close the loopholes has received strong support from
a broad spectrum of Canadians. Please visit Bell.ca/PlayFair or
FairForCanada.ca to learn more.

We welcomed the Astral team to Bell Media following the completion of the
$3.27 billion acquisition of the Montréal-based Astral by Bell on July 5,
2013. The acquisition means more investment in Canadian media and choice for
consumers, while greatly enhancing Bell Media's competitive position,
especially in the Québec marketplace. Astral properties acquired include
high-quality pay and specialty TV services (the French-language Super Écran,
Cinépop, Canal Vie, Canal D, VRAK TV, and Ztélé, and English-language services
The Movie Network, including HBO Canada, and TMN Encore), one of Canada's
largest out-of-home advertising businesses, and 77 radio stations, including
top brands like NRJ, Virgin Radio, Rouge fm, EZ Rock. Ian Greenberg, President
and CEO of Astral, joined BCE's Board of Directors at the close of the

Bell delivered strong execution across all its business segments in Q2 2013.
Bell Wireless maintained strong market momentum with considerable postpaid
customer activations and operating metrics that improved subscriber
profitability. We also saw an acceleration in Fibe TV net customer
activations, fewer NAS landline losses, better Bell Business Markets
performance, and disciplined cost management across the company, all of which
contributed to further improvement in Bell Wireline's revenue and EBITDA
trajectories. Bell Media's continued significant contribution to consolidated
Bell EBITDA and cash flow growth this quarter supports the transformation of
Bell's growth services mix profile, which will be further enhanced with the
acquisition of Astral.

Bell invested $673 million in new capital in Q2 2013 to support the continued
deployment of next-generation wireline and wireless broadband platforms. This
represents a 13.3% decrease compared to Q2 2012, due to higher initial rollout
costs last year for the construction of Bell's 4G LTE mobile network in major
urban markets and the rapid retail store expansion in Western Canada, as well
as the timing of capital spending in 2013 compared to last year.

Bell Wireless
Bell Wireless operating revenues increased 5.4% to $1,442 million in the
quarter compared to $1,368 million in Q2 2012. Service revenues were up 6.1%
to $1,328 million driven by postpaid subscriber growth and higher blended ARPU
reflecting increased data usage and revenues from greater smartphone
penetration. Wireless data revenue grew 21.1% in Q2 and now represents more
than 40% of total wireless service revenues.

Bell Wireless EBITDA increased 8.9% to $609 million, reflecting the combined
impact of higher operating revenues and disciplined handset discounting for
new customer acquisitions and upgrades. This contributed to a 1.3
percentage-point improvement in service margin to 45.9% from 44.6% in Q2 2012,
the best performance in 4 years.

  *Postpaid net additions of 96,390 reflected a 2.7% increase in postpaid
    gross activations compared to Q2 2012 and stable customer churn. Higher
    postpaid gross activations were driven by a strong lineup of smartphones
    and other mobile devices, attractive promotions and effective advertising.
    Prepaid net customer losses improved 3.7% to 52,824 as a result of fewer
    customer deactivations.

  *Smartphone users represented 70% of total postpaid subscribers at the end
    of the quarter, compared to 55% a year earlier. Bell Wireless customers
    totalled 7,715,641 at the end of Q2, an increase of 3.5%.

  *Postpaid customer churn remained low and unchanged at 1.3%, reflecting
    continued investments in customer service and retention. Prepaid churn
    also remained unchanged at 3.7% this quarter.

  *Blended ARPU increased 2.7% to $56.85 in the quarter, representing the
    fourteenth consecutive quarter of year-over-year improvement. Growth was
    driven by a higher proportion of postpaid customers in our overall
    wireless subscriber base, growth in data usage due to strong smartphone
    adoption, and postpaid customer growth in higher-ARPU customer segments
    and regions such as Western Canada.

  *Cost of acquisition increased 5.5% to $402 per gross activation,
    reflecting higher handset discounts driven by a higher postpaid smartphone
    mix and competitive handset pricing in the market.

  *Bell continues to offer customers access to Canada's largest 4G LTE
    network reaching approximately 73% of the Canadian population,
    complementing the 4G HSPA+ and enhanced 4G HSPA+ DC (Dual Cell) networks
    that offer coast-to-coast coverage to more than 97% and more than 92% of
    the population, respectively.

  *Bell Mobile TV announced expanded live and on-demand programming with the
    addition of CBC, Radio-Canada TV, City TV, Sportsnet and BBC World News.
    Now with more than 30 channels in English and French available on
    smartphones and tablets, Bell Mobile TV offers access to news,
    entertainment and children's programming from brands such as ATN, BNN,
    BBC, Bloomberg, CTV, City TV, Juicebox, MTV Canada, Treehouse, TVA and
    YTV, and sports content from TSN, RDS, Sportsnet and the NHL, NBA and NFL.

  *Royal Bank of Canada (RBC) and Bell Mobility have announced that customers
    will be able to pay securely for transactions with their RBC debit or
    credit cards using compatible Bell Mobility smartphones. RBC and Bell
    expect to make the service broadly available by the end of the year and
    are now testing the solution with consumers and merchant customers.

  *Bell Wireless continued to bring customers the latest in wireless
    technology with the introduction of several new in-demand devices,
    including the BlackBerry Q10, the HTC One, the Samsung Galaxy S4 and the
    Sony Xperia ZL. These smartphones are all equipped with Near Field
    Communications (NFC) capability, enabling mobile commerce applications and
    easy wireless sharing of music, contacts, files and images.

  *Bell renewed its partnership with GLENTEL, Canada's largest independent
    multi-carrier mobile phone retailer, to offer Bell Mobility products and
    services to customers at GLENTEL retail outlets across Canada, including
    Wireless Wave, Telephone Booth, Wireless Etc. and Target Mobile.

Bell Wireline
The pace of Bell Wireline's revenue decline improved significantly in the
quarter with revenues decreasing by a modest 0.9% to $2,506 million, as growth
in Fibe TV and Fibe Internet drove stronger overall residential financial
results. This moderated the decline in voice revenues, reflecting fewer NAS
landline losses compared to Q2 2012. Bell Business Markets generated higher IP
connectivity revenues and saw increased data product sales to large enterprise
customers this quarter.

Bell Wireline EBITDA decreased 2.9% to $979 million and we maintained margin
on plan at 39.1% (compared to 39.9% in Q2 2012). The decrease in Wireline
EBITDA this quarter was impacted by a $10 million benefit realized in Q2 2012
from an adjustment to TV broadcast licence fees payable to the CRTC that did
not recur this year. Excluding this impact, Bell Wireline EBITDA decreased
1.9% this quarter.

  *Bell Fibe TV added 50,555 net new customers, a 31.4% increase over the
    38,477 gained in the second quarter of 2012. This represents our best
    quarterly performance since launching the service in Q3 2010, reflecting
    growth in customer demand for Fibe TV as we continue to expand our IPTV
    service footprint. At the end of Q2, Bell Fibe TV subscribers totalled
    346,316, more than double the 158,324 subscribers reported at the end of
    Q2 2012.

  *In May 2013, Bell Fibe TV launched Canada's first wireless receiver, a
    Bell exclusive that enables customers to connect additional TVs with Fibe
    TV service anywhere in the home without the need to run extra cable. A
    wireless receiver transmitter connects to a customer's Home Networking
    modem and works with their Whole Home personal video recorder (PVR) to
    connect one or more Wireless Receivers to deliver the full Fibe TV
    experience to as many as 5 additional TVs.

  *Combined Bell Satellite TV and Fibe TV net additions in the quarter
    increased 52.8% to 25,605. Bell TV's subscriber base totalled 2,195,559 at
    the end of Q2 2013, representing a 3.2% increase since the end of Q2 2012.

  *Bell high-speed Internet net subscriber additions were 3,901, compared to
    a net loss of 664 in Q2 2012, reflecting the pull-through of Bell Fibe TV
    customer activations as well as improved business and wholesale customer
    activations. Bell total high-speed Internet subscribers reached 2,121,075,
    up 0.8% since the end of Q2 2012.

  *Wireline data revenue was up 4.0% to $1,456 million, driven mainly by
    higher TV and Internet service revenues as a result of Fibe customer
    growth, higher IP broadband connectivity revenues and increased data
    product sales.

  *Residential NAS net losses improved 11.8%, or 11,029, over Q2 2012,
    reflecting lower rates of residential NAS turnover in Bell Fibe TV service
    areas and fewer wholesale customer losses to competitors compared to the
    second quarter of last year.

  *Business NAS losses improved 15.3%, or 5,206, this quarter as Bell
    Business Markets reduced access line losses in its mid-sized customer
    segment. Wholesale business access line losses also improved year over

  *Total Bell NAS at the end of the quarter was 5,425,491, a 7.7% decline.
    Bell's local and access revenues declined 7.1% to $632 million, while long
    distance revenue declined 11.2% to $183 million.

  *Bell and CGI Group Inc. (CGI) teamed up on a winning bid to deliver a new
    email system for the federal government. Based on the latest email
    technology, the streamlined system will enhance security and increase
    efficiency, ultimately improving Canadians' access to information and
    services while saving the government a projected $50 million per year
    starting in 2015. Bell and CGI will implement and manage the government's
    new email system for 7 years with an optional 1-year extension.

Bell Media
Bell Media revenues grew 4.7% to $559 million in the quarter, due to
subscriber fee revenue growth of 7.9% reflecting increases in specialty TV
rates paid by broadcast distributors. Advertising revenues were up 0.8%
compared to Q2 2012, with growth driven by Bell Media's specialty sports TV
properties, TSN and RDS, thanks to the NHL's regular season schedule being
extended into Q2 and intense viewer interest in the hockey playoffs. Bell
Media's conventional TV properties also had higher advertising sales compared
to Q2 2012. This growth was offset by a year-over-year decline in digital
advertising revenues and softer radio advertising sales.

As a result of higher operating revenues, Bell Media EBITDA increased 3.3% to
$156 million, despite the non-recurring benefit realized in Q2 2012 totalling
$15 million from accrual adjustments to CRTC Part II fees and the Local
Programming Improvement Fund, and higher programming and production costs this
quarter due to the NHL's extended schedule.

  *CTV wrapped up the 2012/13 broadcast year with more top 10, top 20 and top
    30 shows than any other Canadian conventional TV network  according to BBM
    Canada, making it the most-watched Canadian TV network for the 12^th year
    in a row.

  *Bell Media's sports and non-sports TV specialty services reached nearly 26
    million Canadians in the average week throughout Q2 2013, over 6 million
    viewers more than the closest competitor.

  *At the annual Los Angeles programming screenings in May, Bell Media
    secured an attractive mix of returning and new programs for its 2013/2014
    primetime schedules on its CTV and CTV Two networks, featuring more
    returning hits than any other Canadian network along with a number of new
    programs for the fall and mid-seasons. CTV will also remain the home of
    TV's biggest events in 2013/2014, including the Academy Awards, Super
    Bowl, the Golden Globe Awards, the Primetime Emmy Awards, the American
    Music Awards and the Juno Awards.

Bell Aliant (TSX: BA) revenues increased 0.6% to $691 million in Q2 2013 from
$687 million in Q2 2012, as growth in data was largely offset by continued
declines in local and access and long distance revenues, as well as equipment
and other revenues. Bell Aliant's EBITDA was down 1.2% at $322 million this
quarter, as slightly higher operating revenues were offset by a 2.2% increase
in operating costs related mostly to growth of its FibreOP service. For more
information, please visit BellAliant.ca.

BCE's Board of Directors has declared a quarterly dividend of $0.5825 per
common share, payable on October 15, 2013 to shareholders of record at the
close of business on September 16, 2013.

As a result of the closing of the acquisition of Astral on July 5, 2013, BCE
has updated its financial guidance for 2013 as follows:

                                  February 7    August 8
                                     Guidance      Guidance
Bell ^(i)                                           
Revenue Growth                       0% - 2%      2% - 4%
EBITDA Growth                        1% - 3%      3% - 5%
Capital Intensity                   16% - 17%    No change
Adjusted EPS ^(ii)                $2.97 - $3.03  No change
Free Cash Flow growth ^(iii)         5% - 9%     No change
Annual common dividend per share      $2.33      No change

 (i)   Bell's 2013 financial guidance for revenue, EBITDA and capital
        intensity is exclusive of Bell Aliant.
  (ii)  We define Adjusted net earnings as net earnings attributable to common
        shareholders before severance, acquisition and other costs, net
       (gains) losses on investments and premiums on early redemption of
        debt. We define Adjusted EPS as Adjusted net earnings per BCE Inc.
        common share.
  (iii) We define free cash flow as cash flows from operating activities
        excluding acquisition costs paid and voluntary pension funding, plus
       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

BCE will hold a conference call for financial analysts to discuss Q2 2013
results on Thursday, August 8 at 8:00 a.m. (Eastern). Media are welcome to
participate on a listen-only basis. To participate, please dial (416) 340-8061
or toll-free 1-866-225-0198 shortly before the start of the call. A replay
will be available for one week by dialing (905) 694-9451 or 1-800-408-3053 and
entering pass code 3092522#.

There will also be a live audio webcast of the call available on BCE's website
mp3 file will be available for download on this page later in the day.

The information contained in this news release is unaudited.

(1) The terms Adjusted net earnings and Adjusted EPS do not have any
    standardized meaning under IFRS. Therefore, they are unlikely to be
    comparable to similar measures presented by other companies. Starting in
    2013, our definition of Adjusted net earnings has been modified to exclude
    premiums on early redemption of debt to align with the reporting practices
    of our peers. We define Adjusted net earnings as net earnings attributable
    to common shareholders before severance, acquisition and other costs, net
    (gains) losses on investments, and premiums on early redemption of debt.
    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, net (gains) losses on investments, and
    premiums on early redemption of debt, 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.

($ millions except per share amounts)                          
                                             Q2 2013            Q2 2012
                                        TOTAL  PER SHARE  TOTAL  PER SHARE
Net earnings attributable to common
shareholders                               571       0.74    732       0.94
Severance, acquisition and other costs      21       0.02     15       0.03
Net gains on investments                   (1)          -      -          -
Premium on early redemption of debts         3       0.01      -          -
Adjusted net earnings                      594       0.77    747       0.97

(2) The term free cash flow does not have any standardized meaning under IFRS.
    Therefore, it is unlikely to be comparable to similar measures presented
    by other companies. Starting in 2013, our definition of free cash flow has
    been modified to exclude voluntary pension funding because it is a
    discretionary use of excess cash. We define free cash flow as cash flows
    from operating activities, excluding acquisition costs paid and voluntary
    pension funding, plus 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 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.

($ millions)                                                              
                                                           Q2 2013  Q2 2012
Cash flows from operating activities                          1,868    1,904
Bell Aliant dividends/distributions to BCE                       47       47
Capital expenditures                                          (830)    (952)
Cash dividends paid on preferred shares                        (32)     (34)
Cash dividends/ distributions paid by subsidiaries to               
non-controlling interest                                        (74)      (91)
Acquisition costs paid                                            8       32
Bell Aliant free cash flow                                     (84)    (100)
Free cash flow                                                  903      806

(3) 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. 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 BCE net
    earnings to EBITDA.

($ millions)                                                     
                                                  Q2 2013  Q2 2012
Net earnings                                           671      836
Severance, acquisition and other costs                  28       20
Depreciation                                           681      666
Amortization                                           161      178
Finance costs                                                    
 Interest expense                                     228      209
 Interest on post-employment benefit obligations       38       33
Other (income) expense                                  63     (55)
Income taxes                                           196      157
EBITDA                                               2,066    2,044

Certain statements made in this news release, including, but not limited to,
statements relating to our 2013 financial guidance (including revenues,
EBITDA, Capital Intensity, Adjusted EPS and Free Cash Flow), our business
outlook, objectives, plans and strategic priorities, BCE's 2013 annualized
common share dividend, the strategic and other benefits expected to result
from the Astral acquisition, the expectation that Astral will be accretive to
BCE's free cash flow, and other statements that are not historical facts, are
forward-looking. Forward-looking statements are typically identified by the
words assumption, goal, guidance, objective, outlook, project, strategy,
target and other similar expressions or future or conditional verbs such as
aim, anticipate, believe, could, expect, intend, may, plan, seek, should,
strive 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 and that our business outlook, objectives, plans
and strategic priorities may not be achieved. 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 as of August 8, 2013 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
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 August 8, 2013. 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
in this press release for the purpose of assisting investors and others in
understanding certain key elements of our expected 2013 financial results, as
well as our objectives, strategic priorities and business outlook for 2013,
and in obtaining 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 2013 contained in this
news release, including, but not limited to:

Canadian Economic and Market Assumptions

  *Growth in the Canadian economy of 1.8% in 2013, based on the Bank of
    Canada's most recent estimate, a thirty basis point increase compared with
    an earlier estimate of 1.5%;
  *a slow pace of employment growth and new business formation affecting
    overall business customer demand;
  *a sustained level of wireline and wireless competition in both consumer
    and business markets;
  *higher wireline replacement, due primarily to increasing wireless and
    Internet-based technological substitution;
  *increasing wireless industry penetration driven, in particular, by the
    accelerated adoption of smartphones, tablets and data applications, the
    expansion of LTE service in most urban and suburban markets, the
    proliferation of 4G devices, as well as population growth; and
  *a soft advertising market for Bell Media.

Operational Assumptions Concerning Bell Wireline (Excluding Bell Aliant)

  *Stabilizing residential NAS line erosion rate as we leverage our broadband
    investment in FibeTV to drive three-product household penetration,
    increase our multiple-dwelling unit (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
    winbacks 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
    increasingly affordable Canada-wide unlimited wireless plans, 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, as we further extend our IPTV broadband
    fibre footprint in areas of Ontario and Québec, and our ability to seek
    greater penetration within the MDU market, capitalize on our extensive
    retail distribution network, which includes The Source, and leverage our
    market leadership position in high definition (HD) programming;
  *improved subscriber acquisition at Bell Internet through increased fibre
    coverage and speeds as we leverage our significant network capital
    investment and the implementation of new technologies to drive greater
    Fibe TV expansion and Internet attach rates;
  *gradual improvement in the performance of our Business Markets unit based
    on increased business customer spending, new business formation and higher
    demand for connectivity and ICT services driven by a strengthening economy
    and an improvement in employment rates, subject to the risk of business
    customers adopting more conservative strategies which could result in
    lower capital spending requirements and deferral of ICT projects;
  *continued customer migration to IP-based systems, increased competitive
    intensity in mass and mid-sized business segments as cable operators and
    other telecom competitors continue to intensify their focus on the
    business segment and ongoing competitive reprice pressures in our business
    and wholesale markets; and
  *cost savings to be achieved from management workforce attrition and
    retirements, call center efficiencies, field service productivity
    improvements, further reduction in supplier contract rates, lower print
    and mail costs, effective content cost management and reducing traffic
    that is not on our own network.

Operational Assumptions Concerning Bell Wireless (Excluding Bell Aliant)

  *Bell Wireless to benefit from the flow-through of investments made in 2012
    in customer acquisition and retention, along with continued strength in
    smartphone activations and data usage;
  *continued aggressive competition in 2013 as competitors attempt to
    maintain or gain wireless market share;
  *wireless revenue growth to be underpinned by continued growth in our
    subscriber base and 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 line-up and from faster data
    speeds that are allowing our clients to optimize the use of our services;
  *the proliferation of more expensive and sophisticated wireless devices, as
    well as heightened competitive activity, to exert pressure on EBITDA, due
    mainly to increased handset discount resulting in higher subscriber
    acquisition and customer retention costs.

Operational Assumptions Concerning Bell Media

  *The non-recurrence, in 2013, of significant events that occurred in 2012,
    including the London Summer Olympic Games, the NHL lockout and retroactive
    rate increases for specialty programming services;
  *the intended launch, in 2013, of our TV Everywhere product, a strategic
    initiative aimed at enabling us to deliver the best live sports, news and
    other premium content exclusively to broadcasting distribution
    undertakings' (BDUs) subscribers;
  *growth in subscriber revenues to be driven by contracted market-based rate
    increases for our specialty sports services;
  *in conventional TV, building and maintaining strategic supply arrangements
    for content on four screens, continuing to successfully acquire 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 through investments in HD
    broadcasting and improvements to our news programming;
  *increased costs to secure content in our sports broadcast operations as we
    face greater competition from both new entrants and established
    competitors, and as market rates for specialty content generally increase;
  *in our non-sports English and French pay and specialty TV services,
    investment in quality programming and production, marketing and ongoing
    development of key brand partnership initiatives with respect to our
    existing services;
  *pursuant to the Astral acquisition, the achievement of cost reductions by
    maximizing assets, achieving productivity gains and pursuing operational
    efficiencies; and
  *the continued leverage of our strength in local radio and television
    markets to provide listeners and viewers with quality content,
    incorporating opportunities for multi-platform selling.

Financial Assumptions Concerning Bell (Excluding Bell Aliant)

The following constitute Bell's principal financial assumptions for 2013.
Where indicated below, assumptions have been updated from Q1 2013 as a result
of the acquisition of Astral.

  *Bell's total employee benefit plans cost to be approximately $350 million,
    instead of $340 million, based on an estimated accounting discount rate of
    4.4% and an expected return on plan assets of 4.4%, comprised of an
    estimated above EBITDA employee benefit plans service cost of
    approximately $230 million, instead of $220 million, and an estimated
    below EBITDA net employee benefit plans financing cost of approximately
    $120 million;
  *total pension plan cash funding to be approximately $350 million;
  *cash taxes to be approximately $325 million, instead of $300 million;
  *net interest expense of approximately $750 million, instead of $700
  *net interest payments of approximately $720 million, instead of $700
    million; and
  *cash severance and other of approximately $150 million.

Financial Assumptions Concerning BCE

The following constitute BCE's principal financial assumptions for 2013. Where
indicated below, assumptions have been updated from Q1 2013 as a result of the
acquisition of Astral.

  *BCE's total employee benefit plans cost to be approximately $430 million,
    instead of $420 million, including approximately $80 million for Bell
    Aliant, comprised of an estimated above EBITDA employee benefit plans
    service cost of approximately $290 million, instead of $280 million, and
    an estimated below EBITDA net employee benefit plans financing cost of
    approximately $140 million;
  *depreciation and amortization expense approximately $50 million higher
    compared to 2012;
  *net interest expense of approximately $925 million, instead of $875
  *tax adjustments (per share) of approximately $0.07;
  *an effective tax rate of approximately 26%;
  *non-controlling interest similar to 2012; and
  *an annual common share dividend of $2.33 per share.

The foregoing assumptions, although considered reasonable by BCE on August 8,
2013, may prove 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 2013
financial guidance, are listed below. The realization of our forward-looking
statements, including our ability to meet our 2013 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, 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 handset
    discount levels;
  *regulatory initiatives or proceedings, litigation, changes in laws or
    regulations and tax matters;
  *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 and other
  *our ability to maintain customer service and keep our networks operational
    in the event of the occurrence of environmental disasters or epidemics,
    pandemics and other health risks;
  *our ability to anticipate and respond to technological change, upgrade our
    networks and rapidly offer new products and services;
  *our failure to implement, on a timely basis, or maintain effective IT
    systems and the complexity and costs of our IT environment;
  *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;
  *increased contributions to post-employment benefit plans;
  *ineffective management of changes resulting from restructurings and other
    corporate initiatives and from the integration of business units and
    business acquisitions;
  *the complexity of our product offerings and pricing plans;
  *labour disruptions;
  *employee retention and performance;
  *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;
  *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 BellExpressVu Limited
  *the theft of our DTH satellite television services;
  *Bell Media's significant dependence on continued demand for advertising,
    and the potential adverse effect thereon from 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;
  *health concerns about radio frequency emissions from wireless devices;
  *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;
  *our failure to evolve practices and effectively monitor and control
    fraudulent activities; and
  *our failure to successfully integrate Astral into Bell Media and to
    achieve the anticipated strategic and other benefits.

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 2012 Annual MD&A dated March 7, 2013 (included in the BCE 2012
Annual Report) as updated in BCE's 2013 First and Second Quarter MD&As, dated
May 8, 2013 and August 7, 2013 respectively, 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.

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 #1 television network, and the
country's most-watched specialty channels. To learn more, please visit BCE.ca.

The Bell Let's Talk mental health initiative is a national charitable and
awareness program promoting mental health across Canada with the Bell Let's
Talk Day anti-stigma campaign and significant Bell funding of community care
and access, research, and workplace initiatives. To learn more, please visit

For BCE corporate information, please visit BCE.ca. For Bell product and
service information, please visit Bell.ca. For Bell Media, please visit

SOURCE Bell Canada


Media inquiries:
Jean Charles Robillard
Bell Communications
(514) 870-4739

Investor inquiries:
Thane Fotopoulos
BCE Investor Relations
(514) 870-4619
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