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					Bell Canada Enterprises
Smith Barney Citigroup
Entertainment, Media and Telecommunications
Conference

January 11, 2005
Siim Vanaselja
Chief Financial Officer

N.B. All $ amounts are in CDN$
Safe Harbor Notice
Certain statements made in the attached presentation are forward-looking statements and are subject to important risks, uncertainties and assumptions. The results or
events predicted in these statements may differ materially from actual results or events. The forward-looking statements in the attached presentation address, among
others and without limitation, the following subjects: financial guidance with respect to revenue growth, earnings per share, free cash flow and capital intensity; cost
reductions expected to result from corporate initiatives; anticipated levels of investments in broadband technology; expected increases in revenues from growth
services and decreases in revenues from Legacy services; and generally, the benefits and growth opportunities expected to result from the strategies, plans and
priorities of BCE Inc. and its subsidiaries (collectively “BCE”). Certain of the risk factors which could cause results or events to differ materially from current expectations
are discussed in the next paragraph. The forward-looking statements made in the attached presentation do not reflect the potential impact of any special items or of any
dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after January 11, 2005.
The forward-looking statements contained in the attached presentation including, in particular, the financial guidance, represent the expectations of BCE as of December
15, 2004 and, accordingly, are subject to change after such date. However, BCE disclaims any intention and assumes no obligation to update or revise any forward-
looking statements, whether as a result of new information, future events or otherwise.
Other factors that could cause results or events to differ materially from current expectations include, among other things: our ability to complete within our targeted
timeframe, and the impact on our financial results of, the migration of our multiple service-specific networks to a single IP-based network; our ability to implement our
strategies and plans in order to produce the expected benefits and growth prospects, including meeting targets for revenue growth, earnings per share, free cash flow,
capital intensity and cost reductions; general economic and market conditions and the level of consumer confidence and spending, and the demand for, and prices of,
our products and services; the intensity of competitive activity from both traditional and new competitors, Canadian or foreign, including cross-platform competition,
which is increasing following the introduction of new technologies such as Voice over Internet Protocol (VoIP) which have reduced barriers to entry that existed in the
industry, and its resulting impact on the ability to retain existing, and attract new, customers, and on pricing strategies and financial results; the ability to improve
productivity and contain capital intensity while maintaining quality of services; the ability to anticipate, and respond to, changes in technology, industry standards and
client needs and migrate to and deploy new technologies, including VoIP, and offer new products and services rapidly and achieve market acceptance thereof; the
availability and cost of capital required to implement our financing plans and fund capital and other expenditures; our ability to retain major customers; our ability to find
suitable companies to acquire or to partner with; the impact of pending or future litigation and of adverse changes in laws or regulations, including tax laws, or in how
they are interpreted, or of adverse regulatory initiatives or proceedings, including decisions by the CRTC affecting our ability to compete effectively, including, more
specifically, decisions concerning the regulation of VoIP services; the risk of litigation should BCE stop funding a subsidiary or change the nature of its investment, or
dispose of all or part of its interest, in a subsidiary; the risk of increased pension plan contributions resulting from Bell Canada’s recent early retirement program and
from the risk of low returns on pension plan assets; our ability to manage effectively labour relations, negotiate satisfactory labour agreements, including new
agreements replacing expired labour agreements, while avoiding work stoppages, and maintain service to customers and minimize disruptions during strikes and other
work stoppages; events affecting the functionality of our networks or of the networks of other telecommunications carriers on which we rely to provide our services; stock
market volatility; our ability to increase the number of customers who buy multiple products; our ability to implement the significant changes in processes, in how we
approach our markets, and in products and services, required by our strategic direction; Canadian government action in respect of the foreign ownership restrictions that
apply to telecommunications carriers and to broadcasting distribution undertakings; the risk that the amount of the expected annual savings relating to Bell Canada’s
recent employee voluntary departure program will be lower than anticipated due to various factors including the incurrence of outsourcing, replacement and other costs;
and launch and in-orbit risks, including the ability to obtain appropriate insurance coverage at favourable rates, concerning Telesat’s satellites, certain of which are used
by Bell ExpressVu to provide services.
For additional information with respect to certain of these and other factors, please refer to the Safe Harbor Notice Concerning Forward-Looking Statements dated
December 14, 2004 filed by BCE Inc. with the U.S. Securities and Exchange Commission, under Form 6-K, and with the Canadian securities commissions.
The term “free cash flow” used in the attached presentation does not have any standardized meaning prescribed by Canadian GAAP and is therefore unlikely to be
comparable to similar measures presented by other issuers. Refer to BCE Inc.’s press release of December 15, 2004 announcing its financial guidance and business
outlook for 2005 for more details on free cash flow including a reconciliation to cash from operating activities.


                                                                                                                                                                                   2
Overview


 4 BCE and the Canadian Telecom Industry

 4 Redesigning Tomorrow's Telecom

 4 Financial Outlook

 4 Solid Investment Fundamentals




                                           3
BCE – Canada’s Largest Telecom Company

          About BCE                           Key BCE Differentiators

4 Largest Canadian telco                4 Broadest set of platforms
                                             i   Wireline
4 Over 26 million customer                   i   High-speed Internet
   connections including
                                             i   Wireless
    i 4.7 million wireless                   i   Video
    i 1.8 million high speed Internet   4 Organized around customer segments
    i 1.5 million video                 4 Leading established brands
4 Annual revenues of $19B               4 Solid labour relations
                                        4 Regulatory environment based on
4 Market cap >$27B                         sound principles




            Well-positioned for tomorrow's telecom

                                                                               4
Foundations for Tomorrow’s Telecom

                                                    Delivering a
                                                   stronger BCE
 1
     Customer
      Customer    Make it easy to use        4 A step change in cost
     Experience
     Experience   and stay with Bell            structure
                                                  i 2006 cost reduction
 2                                                  of $1.0-$1.5B
                  A network that can
     Bandwidth
     Bandwidth    deliver all the services
                  of the future
                                             4 A company with
                                                strengthening growth
                                                and shareholder returns
 3
        Next
        Next      Deliver that future –           i As growth services
     Generation
     Generation   provide services                  overtake legacy
      Services
      Services    customers want



                 Driving innovation in and costs out

                                                                          5
1. Enhanced Customer Experience …
  While Delivering a Step Change in Costs

                       • One-stop shopping             Run Rate Cost
                                                          Savings
        Simpler    • Single bill
        ordering   • Self-serve anytime
          and                                                     $1B-$1.5B
      provisioning • Fewer service / billing
                        enquiries, more upsell
                        opportunities
Enhanced
Customer
Experience             • Rationalizing data         $500M-$600M
                         networks through IP
         Simpler       • One process
          service      • Quicker activation
       relationship    • Pre-provisioned networks
                       • Smart automation
                       • Simpler product suite         2005         2006



     Simplification drives out over $1B-$1.5B of costs

                                                                              6
2. Bandwidth
  Broadband You Can Count On
                                                                    Capability

                      4 Core network 100% IP                    – Ubiquitous IP
   Wireline           4 Access up to 26 Mbps                      connectivity

                      4 4.3M households by 2008                 – Video, IPTV



        Increasing inter-operability


                                                                – New Consumer video
                       4 EVDO brings 3G to                        and data-rich
   Wireless                    Canada                             applications
                       4 800 Kbps to 2.4 Mbps                   – Enhanced Business
                                                                  productivity solutions


                     Investing $1.3B over next 4 years *
              *   Includes both wireline and EVDO investments



                                                                                           7
3. Next Generation Services Drive Growth
     Bell Canada Revenue
                                   4 Over the next 2 years, Growth Services
                                     continue strong performance…
                                       i Wireless: West, data
                                       i Video: DTH and wireline
                        Growth         i Internet: Increasing penetration
    40%   45%    55%                      and new services
                        Services
                                       i Business VAS ramping up

                                   4 ...Offsetting legacy erosion
                                       i LD declines continue
    60%   55%    45%    Legacy         i VoIP becomes real
                                       i Data migrates to IP

                                   4 Margins remain solid
   2004   2005   2006
                                       i Efficiency becomes a way of life


                        Reinventing Bell

                                                                              8
Consumer Market – The Power of One

       BCE's Approach            Leading Product Suite

                             4 Video growth potential
                               through DTH and terrestrial

                             4 High speed Internet
                               penetration more advanced
                               than U.S. peers and growing

 4 "Power of One"
                             4 Canadian wireless
    i Bundle aggressively
                               penetration offers room for
    i Simplified offerings     further growth
    i 1-contact service
 4 Bundles: $5 / month       4 NAS erosion at slower pace
   unlimited LD                than U.S. peers



                                                             9
IP and Value Added Solutions are Reinventing Business Services


         Enterprise                       Business Revenues


4 Exploiting IP connectivity
                                         34%
   to drive value added                                50%     IP & VAS
   solutions
                                         66%                   Legacy
                                                       50%     Connectivity

            SMB
                                        2004          2006

4 Becoming the Virtual CIO     60% of our largest     80% of our largest
   – IT/Internet solutions      customers buy          customers buy
   that customers can afford     value added            value added
                                  solutions              solutions



            We are building a $6B communications
                  and technology business

                                                                           10
Financial Outlook (1)
                                                                                        Guidance               Medium-Term
                                                            2004E
                                                                                         2005E                   Outlook

Revenue Growth                                     Approx. 2%                      > GDP                 > GDP

                                                                                                         $1B - $1.5B
Cost Savings                                                                       $500M - $600M         Run rate savings achieved by
                                                                                                         year end 2006


                                                                                                         Mid-to-high single digit
EPS (2)                                            Approx. $2.00                   Single digit growth
                                                                                                         growth

Free Cash Flow (3)
                                                   Approx. $1B
Before restructuring                                                               $700M to $900M        Sustainable at > $1B
                                                   Approx. $700M
After restructuring


Bell Canada Capital                                                                                      Decrease beginning in
                                                   Approx. 18%                     18% to 19%
Intensity                                                                                                2006
(1) As provided, December 15, 2004
(2) Before net investment gains / losses, or impairment or restructuring charges
(3) After dividends, before investments and divestitures




      Improving performance... Next year and for the foreseeable future

                                                                                                                                        11
Attractive and Stable Yields
                         Dividend Yield                                                           Free Cash Flow Yield
                   Top dividend yields on S&P/TSX                                                                  2005E FCF Yield
 8%
                                                                                        10%


 6%                                                                                     8%


                                                                                        6%
 4%
                                                                                        4%

 2%
                                                                                        2%
                                                                              Average

 0%                                                                                     0%
       Transalta   MTS   Rothmans Laurentian   Emera   BCE   Telus   Rogers
                                    Bank                                                            BCE                VZ               BLS (1)           SBC (1)

      Closing prices as of January 4, 2005
                                                                                          (1) Proportionate for respective share of Cingular (including AT&T Wireless)

4 Reflects 10% dividend increase effective Q1                                                 Source: Merrill Lynch, Dec. 23, 2004 – Canadian Telecommunications &
                                                                                                      Cable Weekly
  2005
4 One of the top dividend yield stocks
  in Canada
4 Uninterrupted dividend payments since 1880

                                   Generates significant free cash flow

                                                                                                                                                                         12
Growth Potential

  04-06E Revenue and EPS Growth (1)                                           2005E EV/EBITDA and 2005E P/E (2)

         6.7%                                                                                                                       18.2x

                                                                       5.7%                           15.5x          15.7x
                                                                                     13.7x
                                            4.6%
                              4.3%
                                                   3.7%
  2.8%
                                                                                                              6.5x           6.7x
                                                                              5.4x             5.8x
                                                                1.8%
                       0.9%



     BCE             Bell South (3)          Verizon             SBC (3)        BCE          Bell South (3)   Verizon        SBC (3)

(1) Source: UBS Wireline Postgame Analysis, December 22, 2004
(2) Source: BMO Telecom Monthly (December 1, 2004)
(3) Pro-forma AT&T Wireless acquisition




                                  Superior profitability prospects ...
                                 ... lower relative valuation multiples

                                                                                                                                            13
Delivering Investor Value
 Right Strategy
 4 Integrating Communications
 4 Setting the IP Standard
     • Own VoIP offerings


 Right Assets
                                        4 Leading in innovation
 4 Broadest set of platforms
     • Most advanced video capability   4 Serving customers simply
 4 Leading brand
                                        4 Rewarding stakeholders
 Disciplined Financial
 Management
 4 Driving performance to deliver
   solid financial returns
 4 Strong balance sheet


                                                                     14

				
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