BCE (BCE)

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BCE, Inc., (BCE), is Canada's largest communications service provider and serves as the holding company for Bell Canada. The company provides local and long-distance phone service to approximately 70% of the Canadian population, primarily in Ontario and Quebec. In addition, it provides wireless services, data communications, Internet access, and direct-to-home (DTH) satellite television services through its various subsidiaries. Local phone and access services comprised 30% of 2006 revenue, data 24%, wireless 20%, long distance 10%, terminal sales 9%, and video 7%. The majority of its 2006 revenue (approximately 97%) was generated by its subsidiary, Bell Canada, and approximately 3% was derived from other holdings (Telesat and others). Bell Canada includes the company s core wireline and wireless telecom operations, as well as the satellite TV business, known as ExpressVu. Bell Globemedia is a 68.5%-owned Canadian media company offering television, print, and Internet content. It includes CTV, one of Canada s leading private broadcasters, and The Globe & Mail, a leading Canadian national newspaper. The company reports Bell Canada's results of operations in four segments. Each reflects a distinct customer group: Residential (40% of 2006 sales), Business (35%), Aliant (19%) and Other Bell Canada (6%). BCE Ventures includes the company's satellite communication and information technology services assets.

In 2006, the company completed the disposition of its interests in CGI group and reduced its investments in CTVglobemedia Inc. (formerly BellGlobemedia Inc.) to 15%. BCE announced the sale of its satellite services subsidiary Telesat Canada, which is scheduled for completion in mid 2007.

The company progresses with its previously announced plan to simplify its overall corporate structure and ameliorate BCE's charter by converting the holding company into an income trust, to be known as Bell Canada Income Fund. On January 31, 2007, Bell Canada's preferred shares were exchanged for BCE's preferred shares with the same series rights and its holders received a special one-time $0.20 dividend. On June 6, 2007, BCE shareholders will vote on the name change of BCE Inc. to Bell Canada Inc.

On March 7, 2006, BCE (45% ownership of Aliant) and Aliant (which provides local telephone, long distance, wireless, data and other services to residential and business customers in Atlantic Canada) announced initiatives to create a new regional telecommunications service provider in the form of an income trust which, would combine Bell Canada's regional wireline operations with Aliant's wireline operations. The new trust is expected to own approximately 3.4 million local access lines, and serve approximately 400,000 high-speed Internet subscribers in six provinces.

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