-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 FsZ2L54pzBPyFCNov5R0TMqo7hGCvw0Lmv5R2baosixHmfAhwqQ2k+JGjSDa562u
 CUBeTHlN2ni3smszuBjr5A==

<SEC-DOCUMENT>0000718940-03-000005.txt : 20030129
<SEC-HEADER>0000718940-03-000005.hdr.sgml : 20030129
<ACCEPTANCE-DATETIME>20030129150104
ACCESSION NUMBER:		0000718940-03-000005
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20030129
FILED AS OF DATE:		20030129

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BCE INC
		CENTRAL INDEX KEY:			0000718940
		STANDARD INDUSTRIAL CLASSIFICATION:	TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813]
		IRS NUMBER:				99999999
		STATE OF INCORPORATION:			A8
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-08481
		FILM NUMBER:		03529817

	BUSINESS ADDRESS:	
		STREET 1:		1000 DE LA GAUCHETIERE OUEST
		STREET 2:		BUREAU 4100 MONTREAL
		CITY:			QUEBEC CANADA
		STATE:			A8
		ZIP:			H3B 4Y7
		BUSINESS PHONE:		5143977000

	MAIL ADDRESS:	
		STREET 1:		1000 DE LA GAUCHETIERE OUEST
		STREET 2:		BUREAU 4100 MONTREAL
		CITY:			QUEBEC CANADA
		STATE:			A8
		ZIP:			H3B 4Y7

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BELL CANADA ENTERPRISES INC
		DATE OF NAME CHANGE:	19880111
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>form6-ker.txt
<DESCRIPTION>Q4 EARNINGS RELEASE
<TEXT>
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 6-K

                        REPORT OF FOREIGN PRIVATE ISSUER

                     Pursuant to Rule 13a-16 or 15d-16 under
                       the Securities Exchange Act of 1934


          For the month of January 2003 Commission File Number 1-8481
                                  -------------


                                    BCE Inc.
                 (Translation of Registrant's name into English)


 1000, rue de La Gauchetiere Ouest, Bureau 3700, Montreal, Quebec H3B 4Y7,
                                (514) 397-7000
                    (Address of principal executive offices)


Indicate by check mark whether the Registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.

             Form 20-F                               Form 40-F     X
                      -----------                             -----------


Indicate by check mark whether the Registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

              Yes                                     No     X
                 -----------                            -----------


If "Yes" is marked, indicate below the file number assigned to the Registrant
in connection with Rule 12g3-2(b): 82-           .
                                      -----------


Notwithstanding any reference to BCE's Web site on the World Wide Web in the
documents attached hereto, the information contained in BCE's site or any other
site on the World Wide Web referred to in BCE's site is not a part of this Form
6-K and, therefore, is not filed with the Securities and Exchange Commission.


                                       1
<PAGE>


BCE Reports its Fourth Quarter and Year-End Results


    Q4 2002: Revenue up 1.2%; EBITDA up 4.7%; net earnings of $1.7 billion
    Full-year 2002: Revenue up 2.2%; EBITDA up 5.2%; net earnings of
    $2.4 billion

    (All figures are in Cdn$, unless otherwise indicated)

    MONTREAL, QC, Jan. 29 /CNW Telbec/ - For the fourth quarter of 2002, BCE
Inc. (TSX, NYSE: BCE) reported total revenue of $5.2 billion. Total revenue
increased by 1.2% compared to the same period last year. Excluding the impact on
revenues of recent regulatory changes and the sale of Bell Canada's directory
business on November 29, 2002, total revenue growth was 4.7%. BCE also reported
EBITDA(1) of $1.9 billion, and net earnings applicable to common shares of $1.7
billion ($1.92 per common share). Net earnings before non- recurring items(2)
were $395 million ($0.44 per common share).

    For the year ended December 31, 2002, BCE reported total revenue of $19.8
billion, up 2.2% over revenue of 2001. EBITDA was $7.6 billion, a 5.2% increase
over 2001 EBITDA. Net earnings applicable to common shares were $2.4 billion
($2.74 per common share) while net earnings applicable to common shares in 2001
were $450 million ($0.56 per common share). Net earnings before non-recurring
items were $1.5 billion ($1.81 per common share) compared to net earnings before
non-recurring items in 2001 of $1.4 billion ($1.74 per common share).

    "Despite many industry challenges and an uncertain economy, our performance
in 2002 was on track," said Michael Sabia, President and CEO of BCE Inc. "We had
good results in the growth areas of our business, even as we were facing
regulatory and other pressures in our more traditional services. Through our
continued focus on financial discipline and execution, we have successfully
implemented our productivity initiatives and as a result improved our
efficiency. Our efforts resulted in EBITDA growth of over 5%."



    Operational Highlights
    -------------------------------------------------------------------------

                                             Q4 2002     As at Dec. 31, 2002
    -------------------------------------------------------------------------
    Cellular and PCS           218,000 net additions   3,919,000 subscribers
    -------------------------------------------------------------------------
    High-speed Internet (DSL)  108,000 net additions   1,110,000 subscribers
    -------------------------------------------------------------------------
    Bell ExpressVu (DTH)        83,000 net additions   1,304,000 subscribers
    -------------------------------------------------------------------------
    Data revenue                        $1.0 billion            $3.8 billion
    -------------------------------------------------------------------------
    Bell Globemedia revenue             $379 million            $1.3 billion
    -------------------------------------------------------------------------
    Productivity initiatives            $140 million            $655 million
    -------------------------------------------------------------------------

    "We had our best quarter ever in wireless with net postpaid activations of
196,000 and industry leading churn of 1.7%," continued Mr. Sabia. "Direct-
to-Home (DTH) satellite new subscriptions were strong, resulting in revenue
growth of 35% at Bell ExpressVu in 2002. And, our DSL High-speed Internet
subscriber base grew by 47% compared to last year."

    "Our goal is to continue to achieve balanced performance in our overall
operations in 2003. By simplifying our operations and placing the customer at
the centre of all that we do, we expect to drive revenue growth, further improve
our productivity performance, and reduce capital intensity to generate free cash
flow," concluded Mr. Sabia.

    Q4 2002 OVERVIEW
    BCE experienced strong growth during the fourth quarter in several key
areas: a 16% increase in wireless revenues, higher data revenue of 6%, increased
Bell ExpressVu revenues of 32% and a 7% increase in revenues at Bell Globemedia.

    EBITDA increased by $86 million or 4.7%, mainly due to higher revenues and
the successful implementation of cost control initiatives at Bell Canada and
Bell Globemedia. As a percentage of revenues, EBITDA improved from 35.7% in the
fourth quarter of 2001 to 37% in the current quarter.

    Consolidated net earnings applicable to common shares were $1.7 billion
compared to the loss of $299 million reported last year.


                                       2
<PAGE>


    As part of its annual review of its businesses, BCE, in the fourth quarter
of 2002, completed an extensive assessment of the carrying value of its assets
as well as accounting for the sale of the directories business and Teleglobe
Inc. This resulted in the following non-recurring items (net of taxes and
non-controlling interest):

    - a $1.8 billion gain on the sale of Bell Canada's directories business; -
      tax benefits and adjustments of $505 million which were recognized, in
      discontinued operations, as a result of the sale of Teleglobe Inc. to a
      wholly owned subsidiary of Ernst & Young Inc.;
    - an impairment charge of $530 million, resulting from an annual assessment
      of goodwill relating to Bell Globemedia ($501 million) and Aliant ($29
      million - mainly for its Xwave Solutions Inc. business unit);
    - restructuring and other charges of $251 million primarily related to the
      workforce reduction program at Bell Canada; and,
    - assets write-down of $209 million relating primarily to BCE's investment
      in BCI (included in discontinued operations) and other portfolio
      investments.

    Excluding the non-recurring items, net earnings were $395 million ($0.44 per
common share). Net earnings before non-recurring items for the fourth quarter of
2001 were $345 million ($0.43 per common share). Earnings per share before
non-recurring items increased by 2% as a result of higher EBITDA, offset by
higher interest expense and shareholders' dilution due to the issuance of new
debt and equity in 2002 to partially finance BCE's return to full ownership of
Bell Canada.

    OUTLOOK
    The Company outlined its financial guidance for the first quarter of 2003
and confirmed its financial guidance for the full year 2003 as follows:


    -------------------------------------------------------------------------
    GUIDANCE                                 Q1 2003  Full Year 2003 Outlook
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Revenue (billions)                   $4.6 - $4.8           $19.3 - $20.0
    EBITDA (billions)                    $1.7 - $1.8             $7.4 - $7.8
    Net earnings per share (before
    non-recurring items)               $0.42 - $0.46           $1.85 - $1.95
    -------------------------------------------------------------------------



    As indicated during BCE's 2003 Business Review Conference on December 18,
2002, BCE will no longer be providing formal quarterly guidance beyond the first
quarter of 2003.


                                       3
<PAGE>


    RESULTS BY BUSINESS GROUP (unaudited)

    BCE operated under four segments as at December 31, 2002: Bell Canada, Bell
    Globemedia, BCE Emergis and BCE Ventures (which consists of BCE's other
    investments).

    -------------------------------------------------------------------------
                                (Cdn$ millions, except per share amounts)
                                ---------------------------------------------
                                         Fourth Quarter      Twelve months
    For the period ended
     December 31                     2002       2001       2002       2001
    ------------------------------------------------------------------------

    ----------------------------------------------------------------------
    Revenue
    Bell Canada                     4,532      4,536     17,489     17,202
    Bell Globemedia                   379        354      1,290      1,203
    BCE Emergis                       131        181        540        656
    BCE Ventures                      282        287      1,064      1,044
    Corporate and Other,
     including Inter-segment
     eliminations                    (152)      (245)      (615)      (765)
                                    -----      -----     ------     ---------
    Total revenue                   5,172      5,113     19,768     19,340
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    EBITDA
    Bell Canada                     1,788      1,704      7,289      6,876
    Bell Globemedia                    72         43        180        108
    BCE Emergis                        20         35         30        127
    BCE Ventures                       72         88        289        290
    Corporate and Other,
     including Inter-segment
     eliminations                     (39)       (43)      (166)      (159)
                                    -----      -----     ------     ---------
    Total EBITDA                    1,913      1,827      7,622      7,242
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Net earnings (loss)
    Bell Canada                     1,407       (101)     2,423        663
    Bell Globemedia                  (493)       (25)      (492)      (150)
    BCE Emergis                         7        (45)       (51)      (281)
    BCE Ventures                       32         41        131        270
    Corporate and Other,
     including Inter-segment
     eliminations                    (118)        40       (113)     3,069
    -------------------------------------------------------------------------
    Earnings (loss) from
     continuing operations            835        (90)     1,898      3,571
    -------------------------------------------------------------------------
    Discontinued operations           917       (195)       577     (3,057)
    Dividends on preferred shares     (16)       (14)       (59)       (64)
    -------------------------------------------------------------------------
    Net earnings (loss) applicable
     to common shares               1,736       (299)     2,416        450
    -------------------------------------------------------------------------
    Net earnings (loss) per common
     share                           1.92      (0.37)      2.74       0.56
    -------------------------------------------------------------------------
    Non-recurring items included
     in net earnings (loss) per
     common share                   (1.48)     0.80       (0.93)      1.18
    -------------------------------------------------------------------------
    Net earnings per common share
     before non-recurring items      0.44      0.43        1.81       1.74
    -------------------------------------------------------------------------


                                       4
<PAGE>


    FOURTH QUARTER REVIEW (Q4 2002 vs. Q4 2001, unless otherwise indicated)

    BELL CANADA
    The Bell Canada segment includes Bell Canada, Aliant, Bell ExpressVu and
    Bell Canada's interests in other Canadian telcos.



    -------------------------------------------------------------------------
                                                 (Cdn$ millions)
                                                 ----------------------------
                                      Fourth Quarter         Twelve months
    For the period ended
     December 31                     2002       2001       2002       2001
    =========================================================================
    Bell Canada Revenue
    Local and access                1,574      1,654      6,155      6,360
    Long distance                     635        647      2,579      2,651
    Wireless                          570        493      2,167      1,839
    Data                            1,035        979      3,806      3,526
    Bell ExpressVu                    176        133        638        474
    Terminal sales, directory
     advertising & other              542        630      2,144      2,352
                                    -----      -----     ------     ---------
    Total Bell Canada revenue       4,532      4,536     17,489     17,202
    -------------------------------------------------------------------------

    - Excluding the impact of the regulatory changes and the sale of the
      directories business, revenues for the quarter increased by 4%.
    - Local and access revenues decreased by 5%, due mainly to the effects of
      the 2001 CRTC local contribution and May 30, 2002 CRTC Price Caps
      decisions.
    - Long distance revenue decreased by $12 million. Competitive pricing
      pressures offset the effects of a 4% increase in quarterly conversation
      minutes and higher network access fees.
    - Wireless revenue was up 16% due to strong growth in cellular and PCS
      subscribers. Postpaid net additions of 196,000 were the highest achieved
      in any quarter in Bell's history. Churn, stable at 1.7%, continues to be
      industry-leading, reflecting our priority on customer service.
    - Total Internet (High-speed and dial-up) subscribers surpassed the two
      million mark to reach 2,067,000 as at December 31. Total High-speed
      Internet subscribers grew by 47%.
    - Higher Sympatico ISP revenues contributed to the 6% increase in data
      revenue.
    - Bell ExpressVu's industry-leading success in increasing its subscriber
      base greatly contributed to the 32% improvement in its revenues. There
      were 22% more subscribers compared to the fourth quarter of 2001.
    - Bell Canada's EBITDA grew by $84 million or 5% in the fourth quarter to
      reach $1.8 billion, due to continued cost management.
    - Productivity gains at Bell Canada were $135 million for the quarter and
      $630 million for all of 2002.
    - Bell improved its year-end CAPEX intensity (capital expenditures as a
      percentage of revenue) from 22.7% (net of the purchase of the Spectrum
      licenses) in 2001 to 19.6% in 2002.

    BELL GLOBEMEDIA
    Bell Globemedia includes CTV, The Globe and Mail and Bell Globemedia
    Interactive.

    - For the total year ended 2002, Bell Globemedia had revenues of $1.3
      billion, an increase of 7% compared to 2001. EBITDA increased by $72
      million to reach $180 million.
    - Total revenue was $379 million in the quarter compared with revenue of
      $354 million for the same period last year.
    - Advertising revenue was $284 million, an increase of 8% compared to the
      fourth quarter of 2001. Higher demand for both television and print
      advertising contributed to the increase.
    - Subscriber revenues increased by 7.5% to reach $72 million due to higher
      subscriptions to the new digital specialty channels and an increase in
      print circulation revenues.
    - EBITDA improved by 67% to $72 million, reflecting the increase in revenues
      and management's cost control efforts.

                                       5
<PAGE>


    BCE EMERGIS

    - BCE Emergis' sequential quarter over quarter revenues decreased slightly
      by $4 million mainly due to lower recurring revenues from its eHealth unit
      and the revenue impact of BCE Emergis' decision to exit non-core
      businesses. Revenue was $131 million in the quarter, compared with $181
      million for the same period in 2001.
    - Fourth quarter EBITDA of $20 million was essentially flat compared to the
      third quarter EBITDA of $19 million. Year-over-year quarterly EBITDA
      decreased by 43%, reflecting the shortfall in revenues.
    - In the fourth quarter, BCE Emergis rolled out the first of its several
      Web-based eLending solutions, the Vendor Services Exchange, designed to
      help Freddie Mac in the streamlining of certain of its mortgage and other
      settlement processes.

    BCE VENTURES
    BCE Ventures includes the activities of CGI, Telesat and other investments.

    - BCE Ventures' revenue was $282 million in the quarter, a decrease of 2%
      when compared with the same period of 2001.
    - EBITDA was $72 million in the quarter compared with $88 million in the
      fourth quarter of 2001.

    BELL CANADA STATUTORY RESULTS
    Bell Canada "statutory" includes Bell Canada, Bell Canada's interests in
    other Canadian telcos, and Bell Canada's 39% interest in Aliant (equity-
    accounted until December 31, 2002).

    Bell Canada's reported revenue was $3.7 billion in the fourth quarter. Net
earnings applicable to common shares were $1.4 billion in the fourth quarter,
compared to a loss of $97 million for the same period last year.

    For 2002, revenue was $14.4 billion compared with $14.3 billion in 2001. Net
earnings applicable to common shares were $1.4 billion in 2002, virtually
unchanged from 2001.

    ABOUT BCE
    BCE is Canada's largest communications company. It has 25 million customer
connections through the wireline, wireless, data/Internet and satellite services
it provides, largely under the Bell brand. BCE's media interests are held by
Bell Globemedia, which features some of the strongest brands in the industry -
CTV, Canada's leading private broadcaster, The Globe and Mail, the leading
Canadian daily national newspaper and Sympatico.ca, a leading Canadian Internet
portal. As well, BCE has extensive e-commerce capabilities provided under the
BCE Emergis brand. BCE shares are listed in Canada, the United States and
Europe.

    SUPPLEMENTARY BCE FINANCIAL INFORMATION:
    ----------------------------------------
    BCE's Fourth Quarter 2002 Investor Briefing and other relevant financial
materials are available at www.bce.ca/en/investors, under "Investor Briefcase".

    CALL WITH FINANCIAL ANALYSTS:
    -----------------------------
    BCE will hold a teleconference / Webcast (audio only) for financial analysts
to discuss its fourth quarter results on Wednesday, January 29, 2003 at 8:00 AM
(Eastern). The media is welcome to participate on a listen only basis. Michael
Sabia, President and Chief Executive Officer, and Siim Vanaselja, Chief
Financial Officer, will be present for the teleconference / Webcast.

    Interested participants are asked to dial (416) 405-9328 between 7:50 AM and
7:58 AM. If you are disconnected from the call, simply redial the number. If you
need assistance during the teleconference, you can reach the operator by
pressing "0". This teleconference will also be Webcast live (audio only) on our
Web site at www.bce.ca.

    A replay facility will be available between 12:00 PM on Wednesday, January
29, 2003 and 12:00 PM on Wednesday, February 5, 2003. To access the replay
facility, please dial (416) 695-5800 and enter access code 1354714. The Webcast
will also be archived on our Web site.


                                       6
<PAGE>

    CALL WITH THE MEDIA:
    --------------------
    BCE will hold a teleconference for media / Webcast (audio only) on
Wednesday, January 29, 2003 at 1:15 PM (Eastern). Michael Sabia will be present
for this teleconference.

    Interested participants are asked to dial (416) 406-6419 or 888 575-8232
between 1:05 PM and 1:13 PM. If you are disconnected from the call, simply
redial the number. If you need assistance during the teleconference, you can
reach the operator by pressing "0". This teleconference will also be Webcast
live (audio only) on our Web site at www.bce.ca.

    CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
    Certain statements made in this press release, including, but not limited
to, the statements appearing under the "Outlook" section, and other statements
that are not historical facts, are forward-looking and are subject to important
risks, uncertainties and assumptions. The results or events predicted in these
forward-looking statements may differ materially from actual results or events.
These statements do not reflect the potential impact of any dispositions,
monetizations, mergers, acquisitions, other business combinations or other
transactions that may be announced after the date hereof.

    Other factors that could cause results or events to differ materially from
current expectations include, among other things: general economic conditions,
the level of consumer confidence and spending and the state of capital markets;
the impact of adverse changes in laws or regulations or of adverse regulatory
initiatives or proceedings (including the outcome of the appeal of the CRTC's
price cap decision); the level of demand, including in particular by the
enterprise sector, and prices, for products and services in the telecom (e.g.,
data, IP broadband and voice services), media and e- business markets; BCE's and
its subsidiaries' ability to manage costs, generate productivity improvements
and decrease capital intensity while maintaining quality of service; the
intensity of competitive activity, from both traditional and new competitors,
and its resulting impact on the ability to retain existing, and attract new,
customers, and the consequent impact on pricing strategies, revenues and net
income; the risk of lower returns on pension plan assets requiring increased
pension expenses and potentially pension plan funding; the financial condition
and credit risk of customers and uncertainties regarding collectibility of
receivables; the availability and cost of capital required to implement BCE's
and its subsidiaries' financing plans and fund capital and other expenditures;
the ability to deploy new technologies and offer new products and services
rapidly and achieve market acceptance thereof; the ability to package and cross
sell various services offered by the BCE group of companies; the ability of the
BCE group companies' strategies to produce the expected benefits and growth
prospects; stock market volatility; the availability of, and ability to retain,
key personnel; and the final outcome of pending or future litigation.

    For additional information with respect to certain of these and other
factors, refer to the Safe Harbor Notice Concerning Forward-Looking Statements
dated December 18, 2002 filed by BCE Inc. with the U.S. Securities and Exchange
Commission, under Form 6-K, and with the Canadian securities commissions. The
forward-looking statements contained in this press release represent BCE's
expectations as of January 29, 2003 and, accordingly, are subject to change
after such date. However, BCE disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise.

    ----------------------------
    (1) EBITDA is defined as operating revenues less operating expenses and
        therefore reflects earnings before interest, taxes, depreciation and
        amortization, as well as any non-recurring items. BCE uses EBITDA, among
        other measures, to assess the operating performance of its on- going
        businesses. The term EBITDA does not have a standardized meaning
        prescribed by Canadian generally accepted accounting principles and
        therefore may not be comparable to similarly titled measures presented
        by other publicly traded companies. EBITDA should not be construed as
        the equivalent of net cash flows from operating activities.
    (2) Refer to the discussion under the caption "Q4 2002 Overview" for further
        details.


                                       7
<PAGE>


    CONSOLIDATED FINANCIAL STATEMENTS   -   BCE INC.

    CONSOLIDATED STATEMENTS OF OPERATIONS
    -------------------------------------------------------------------------
    For the period ended December 31   Three months         Twelve months
    ($ millions, except share amounts)
     (unaudited)                     2002       2001(1)    2002       2001(1)
    -------------------------------------------------------------------------
    Operating revenues              5,172      5,113     19,768     19,340
                                   ------------------------------------------
    Operating expenses              3,259      3,286     12,146     12,098
    Amortization expense              794        948      3,146      3,826
    Net benefit plans credit           (8)       (31)       (33)      (121)
    Restructuring and other
     charges(Note 4)                  395        741        887        980
                                   ------------------------------------------
    Total operating expenses        4,440      4,944     16,146     16,783
                                   ------------------------------------------
    Operating income                  732        169      3,622      2,557
    Other income
     (expense)(Note 5)              2,242        (11)     2,468      4,015
    Impairment charge(Note 1)        (770)         -       (770)         -
                                   ------------------------------------------
    Earnings from continuing
     operations before the
     under-noted items              2,204        158      5,320      6,572
                                   ------------------------------------------
    Interest expense -long-term debt  278        243      1,041        952
                     - other debt      71         12        120        104
                                   ------------------------------------------
    Total interest expense            349        255      1,161      1,056
                                   ------------------------------------------
    Earnings (loss) from
     continuing operations before
     income taxes and
     non-controlling interest       1,855        (97)     4,159      5,516
    Income taxes                      753         31      1,593      1,759
    Non-controlling interest          267        (38)       668        186
                                   ------------------------------------------
    Earnings (loss) from
     continuing operations            835        (90)     1,898      3,571
    Discontinued operations(Note 6)   917       (195)       577     (3,057)
                                   ------------------------------------------
    Net earnings (loss)             1,752       (285)     2,475        514
    Dividends on preferred
     shares                           (16)       (14)       (59)       (64)
                                   ------------------------------------------
    Net earnings (loss)
     applicable to common
     shares                         1,736       (299)     2,416        450
    -------------------------------------------------------------------------
    Net earnings (loss) per
     common share - basic(Note 7)
      Continuing operations          0.92      (0.13)      2.15       4.34
      Net earnings (loss)            1.92      (0.37)      2.74       0.56
    Net earnings (loss) per
     common share - diluted(Note 7)
      Continuing operations          0.91      (0.13)      2.13       4.29
      Net earnings (loss)            1.89      (0.37)      2.71       0.55
    Dividends per common share       0.30       0.30       1.20       1.20
    Average number of common
     shares outstanding
     (millions)                     909.1      808.5      847.9      807.9
    -------------------------------------------------------------------------
    The following is a reconciliation of net earnings (loss) to reflect the
     comparative impact of the non- amortization of goodwill and indefinite-life
     intangible assets effective January 1, 2002 (Refer to Note 1):

    Adjusted net earnings (loss)
    Net earnings (loss), as
     reported                       1,752       (285)     2,475        514
    Amortization expense on
     goodwill and
     indefinite-life
     intangible assets                  -        234          -        971
                                   ------------------------------------------
    Net earnings (loss),
     adjusted                       1,752        (51)     2,475      1,485
    -------------------------------------------------------------------------
    Adjusted net earnings (loss)
     per common share
      Basic                          1.92      (0.08)      2.74       1.76
      Diluted                        1.89      (0.08)      2.71       1.74
    -------------------------------------------------------------------------
    (1) Refer to Note 1 "Significant accounting policies" for basis of
        presentation.

                                       8
<PAGE>



    CONSOLIDATED STATEMENTS OF RETAINED EARNINGS (DEFICIT)
    -------------------------------------------------------------------------
    For the period ended December 31   Three months          Twelve months
                                   ------------------------------------------
    ($ millions) (unaudited)         2002       2001       2002       2001
    -------------------------------------------------------------------------
    Balance at beginning of
     period, as previously
     reported                      (7,605)     1,238        712      1,339
    Adjustment for change in
     accounting policy(Note 1)          -          -     (8,180)         -
                                   ------------------------------------------
    Balance at beginning of
     period, as restated           (7,605)     1,238     (7,468)     1,339
      Net earnings (loss)           1,752       (285)     2,475        514
      Dividends - Preferred shares    (16)       (14)       (59)       (64)
                - Common shares      (274)      (242)    (1,031)      (969)
                                   ------------------------------------------
                                     (290)      (256)    (1,090)    (1,033)
      Costs relating to the
       issuance of common shares        -          -        (62)         -
      Premium on redemption of
       common and preferred
       shares                           -          -         (6)      (108)
      Other                            (6)        15          2          -
                                   ------------------------------------------
    Balance at end of period       (6,149)       712     (6,149)       712
    -------------------------------------------------------------------------

                                       9
<PAGE>


    CONSOLIDATED BALANCE SHEETS
    -------------------------------------------------------------------------
    At December 31 ($ millions) (unaudited)                2002(1)    2001
    -------------------------------------------------------------------------
    ASSETS
    Current assets
      Cash and cash equivalents(2)                          306        569
      Accounts receivable                                 2,343      4,118
      Income and other taxes receivable                     147          -
      Other current assets                                  769      1,213
                                                        ---------------------
    Total current assets                                  3,565      5,900
    Investments                                             777      1,106
    Capital assets                                       20,486     25,861
    Future income taxes                                     675      1,031
    Other long-term assets                                3,057      3,363
    Indefinite-life intangible assets                       900        866
    Goodwill                                             10,103     15,947
                                                        ---------------------
    Total assets                                         39,563     54,074
    -------------------------------------------------------------------------
    LIABILITIES
    Current liabilities
      Accounts payable and accrued liabilities            3,834      5,792
      Income and other taxes payable                          -        681
      Debt due within one year                            2,026      5,263
                                                        ---------------------
    Total current liabilities                             5,860     11,736
    Long-term debt                                       13,395     14,861
    Future income taxes                                     815        924
    Other long-term liabilities                           3,026      4,129
                                                        ---------------------
    Total liabilities                                    23,096     31,650
                                                        ---------------------
    Non-controlling interest                              3,596      5,625
                                                        ---------------------
    SHAREHOLDERS' EQUITY
    Preferred shares                                      1,510      1,300
                                                        ---------------------
    Common shareholders' equity
      Common shares(3)                                   16,520     13,827
      Contributed surplus                                   980        980
      Retained earnings (deficit)                        (6,149)       712
      Currency translation adjustment                        10        (20)
                                                        ---------------------
    Total common shareholders' equity                    11,361     15,499
                                                        ---------------------
    Total shareholders' equity                           12,871     16,799
                                                        ---------------------
    Total liabilities and shareholders' equity           39,563     54,074
    -------------------------------------------------------------------------
    (1) Refer to Note 1 "Significant accounting policies" for basis of
        presentation.


                                       10
<PAGE>


    (2) At December 31, 2001, cash and cash equivalents include $233 million of
        restricted cash (nil at December 31, 2002). This amount represented
        BCE's share of Telecom Americas Ltd.'s cash used by it to collaterallize
        short-term bank loans of certain of its subsidiaries.

    (3) At December 31, 2002, 915,867,928 (808,514,211 at December 31, 2001) BCE
        Inc. common shares and 20,470,700 (18,527,376 at December 31, 2001) BCE
        Inc. stock options were outstanding. 103 million common shares were
        issued during 2002 in connection with the repurchase by BCE Inc. of SBC
        Communications Inc.'s indirect minority interest in Bell Canada (refer
        to Note 3 "Business acquisitions and dispositions"). The stock options
        were issued under BCE's Long-Term Incentive Stock Option Programs and
        are exercisable on a one-for-one basis for common shares of BCE Inc.
        Additionally, Teleglobe stock option holders will receive, upon exercise
        of their stock options, 0.91 of a BCE Inc. common share for each
        Teleglobe stock option held. At December 31, 2002, all Teleglobe stock
        options outstanding were exercisable into 4,266,723 BCE Inc. common
        shares (10,204,966 at December 31, 2001).


                                       11
<PAGE>
  CONSOLIDATED STATEMENTS OF CASH FLOWS
  -------------------------------------------------------------------------
  For the period ended December 31   Three months          Twelve months
                                 ------------------------------------------
  ($ millions) (unaudited)         2002       2001(1)    2002       2001(1)
  -------------------------------------------------------------------------
  Cash flows from operating
   activities
  Earnings (loss) from
   continuing operations            835        (90)     1,898      3,571
  Adjustments to reconcile earnings (loss) from continuing operations to cash
   flows from operating activities:
    Amortization expense            794        948      3,146      3,826
    Net benefit plans credit         (8)       (31)       (33)      (121)
    Restructuring and other
     charges                        333        731        805        915
    Impairment charge               770          -        770          -
    Net gains on investments     (2,260)       (50)    (2,435)    (4,088)
    Future income taxes             612        179        602        682
    Non controlling interest        267        (38)       668        186
    Other items                     (56)      (657)      (298)      (894)
    Changes in non-cash
     working capital                (96)       268       (592)       157
                                 ------------------------------------------
                                  1,191      1,260      4,531      4,234
                                 ------------------------------------------
  Cash flows from investing
   activities
  Capital expenditures           (1,074)    (1,196)    (3,771)    (4,999)
  Investments                    (5,097)      (152)    (6,604)      (535)
  Divestitures                    2,761        141      3,230      4,749
  Other items                         5        (73)        10       (122)
                                 ------------------------------------------
                                 (3,405)    (1,280)    (7,135)      (907)
                                 ------------------------------------------
  Cash flows from financing
   activities
  Decrease in notes
   payable and bank advances       (636)      (217)      (210)    (2,744)
  Issue of long-term debt         2,508        387      4,908      2,443
  Repayment of long-term
   debt                          (2,091)      (258)    (2,893)    (1,221)
  Issue of common shares            303          5      2,693         71
  Costs relating to the
   issuance of common and
   preferred shares                   -          -        (78)         -
  Purchase of common
   shares for cancellation            -          -          -       (191)
  Issue of preferred shares           -          -        510          -
  Redemption of preferred
   shares                             -          -       (306)         -
  Dividends paid on common
   and preferred shares            (284)      (256)    (1,042)    (1,033)
  Issue of common shares,
   preferred shares,
   convertible debentures
   and equity-settled notes
   by subsidiaries to
   non-controlling interest           5         89        206      1,459
  Redemption of preferred
   shares by subsidiaries             -         (1)         -       (347)
  Dividends paid by
   subsidiaries to
   non-controlling interest        (147)       (89)      (468)      (357)
  Other items                       (10)        55        (46)        72
                                 ------------------------------------------
                                   (352)      (285)     3,274     (1,848)
                                 ------------------------------------------
  Effect of exchange rate
   changes on cash and
   cash equivalents                   2         (1)         3         (2)
                                 ------------------------------------------
  Cash provided by (used
   in) continuing operations     (2,564)      (306)       673      1,477
  Cash used in
   discontinued operations            -       (213)      (936)    (1,168)
                                 ------------------------------------------
  Net increase (decrease)
   in cash and cash
   equivalents                   (2,564)      (519)      (263)       309
  Cash and cash
   equivalents at
   beginning of period            2,870      1,088        569        260
                                 ------------------------------------------
  Cash and cash
   equivalents at end of
   period                           306        569        306        569
  -------------------------------------------------------------------------
 1) Refer to Note 1 "Significant accounting policies" for basis of presentation.


                                       12
<PAGE>


    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS   -   BCE INC.

    The interim consolidated financial statements should be read in conjunction
with the annual consolidated financial statements as at December 31, 2001 and
2000 and for each of the years in the three-year period ended December 31, 2001,
dated July 23, 2002.

    1. SIGNIFICANT ACCOUNTING POLICIES

    The interim consolidated financial statements have been prepared in
accordance with Canadian generally accepted accounting principles ("Canadian
GAAP"), using the same accounting policies as outlined in Note 1 of the annual
consolidated financial statements as at December 31, 2001 and 2000 and for each
of the years in the three-year period ended December 31, 2001, dated July 23,
2002 except as noted below. Certain comparative figures in the consolidated
financial statements have been reclassified to conform to the current period
presentation.

    BASIS OF PRESENTATION
    All financial information for 2002 and prior periods were restated to
reflect the accounting treatment of BCE's investments in Teleglobe Inc.
("Teleglobe") and Bell Canada International Inc. ("BCI") as discontinued
operations (refer to Note 6 "Discontinued operations"), and the adoption of the
Canadian Institute of Chartered Accountants ("CICA") Handbook Section 1650
regarding the accounting treatment of foreign currency translation (refer to
"Recent pronouncements") effective in the first quarter of 2002. In addition,
effective in the second quarter of 2002, BCE ceased to consolidate the financial
results of Teleglobe and BCI, and during 2002 held these investments at cost
(refer to Note 6 "Discontinued operations").

    RECENT PRONOUNCEMENTS

    BUSINESS COMBINATIONS, GOODWILL AND OTHER INTANGIBLE ASSETS The CICA issued
    new Handbook Sections 1581, Business Combinations, and
3062, Goodwill and Other Intangible Assets. Effective July 1, 2001, the
standards require that all business combinations be accounted for using the
purchase method. Additionally, effective January 1, 2002, goodwill and
intangible assets with an indefinite life are no longer being amortized to
earnings and will be assessed for impairment on an annual basis in accordance
with the new standards, including a transitional impairment test whereby any
resulting impairment was charged to opening retained earnings. BCE's management
allocated its existing goodwill and intangible assets with an indefinite life to
its reporting units and completed the assessment of the quantitative impact of
the transitional impairment test on its financial statements. In 2002, an
impairment of $8,180 million was charged to opening retained earnings as of
January 1, 2002, as required by the transitional provisions of the new CICA
Handbook section 3062, relating to impaired goodwill of reporting units within
Teleglobe ($7,516 million), Bell Globemedia ($545 million) and BCE Emergis ($119
million).

    The following represents a reconciliation of the stated goodwill as at
December 31, 2002:

    -------------------------------------------------------------------------
    ($ millions)
    -------------------------------------------------------------------------
    Goodwill, January 1, 2002                                       15,947

    Transitional goodwill impairment charge                         (8,652)
    Goodwill acquired during the year(1)                             5,472
    Goodwill disposed during the year(2)                              (218)
    Deconsolidation of Teleglobe and BCI                            (1,754)
    Impairment charge(3)                                              (770)
    Impact of changes in foreign currency translation                   78
                                                                 ------------
    Goodwill, December 31, 2002                                     10,103
    -------------------------------------------------------------------------
    (1) The goodwill acquired during 2002 relates primarily to the acquisition
        of SBC Communications Inc.'s ("SBC") 20% interest in Bell Canada
        Holdings Inc. ("BCH") (refer to Note 3 "Business acquisitions and
        dispositions").

    (2) The goodwill disposed during 2002 relates primarily to the sale of the
        Directories business (refer to Note 3 "Business acquisitions and
        dispositions").

    (3) In the fourth quarter of 2002, BCE completed its annual assessment of
        goodwill of all of its reporting units, as required by the provisions of
        CICA Handbook section 3062, and recorded a charge to pre-tax earnings of
        $770 million ($530 million after non-controlling interest) relating to
        impaired goodwill of reporting units within Bell Globemedia ($715
        million) and Aliant ($55 million). In each case, the goodwill was
        written down to its fair value, which was determined based on estimates
        of discounted future cash flows and corroborated by market-related
        values.


                                       13
<PAGE>


    The primary factor contributing to the impairment at Bell Globemedia is a
revised estimate of future cash flows that reflect management's decision to
scale back its trials in convergence products and other non-core businesses, as
well as current market conditions for the media business. The write-down at
Aliant was determined to be appropriate in light of current market conditions
and the recent weak performance of its information technology line of business.


    FOREIGN CURRENCY TRANSLATION
    Effective January 1, 2002, BCE also adopted the revised recommendations of
CICA Handbook Section 1650, Foreign Currency Translation. The standards require
that all unrealized translation gains and losses on assets and liabilities
denominated in foreign currencies be included in earnings for the year,
including gains and losses on long-term monetary assets and liabilities, such as
long-term debt, which were previously deferred and amortized on a straight-line
basis over the remaining lives of the related items. These amendments were
applied retroactively with restatement of prior periods. The cumulative effect
as at January 1, 2002 was to decrease other long-term assets by $288 million,
increase future income taxes by $27 million, decrease non- controlling interest
by $70 million and decrease retained earnings by $191 million.

    STOCK-BASED COMPENSATION AND OTHER STOCK-BASED PAYMENTS BCE also adopted the
    new recommendations of CICA Handbook Section 3870,
Stock-based compensation and other stock-based payments, effective January 1,
2002. This Section establishes standards for the recognition, measurement and
disclosure of stock-based compensation and other stock-based payments made in
exchange for goods and services. The standard requires that all stock-based
awards made to non-employees be measured and recognized using a fair value based
method. The standard encourages the use of a fair value based method for all
awards granted to employees, but only requires the use of a fair value based
method for direct awards of stock, stock appreciation rights, and awards that
call for settlement in cash or other assets. Awards that a company has the
ability to settle in stock are recorded as equity, whereas awards that the
entity is required to or has a practice of settling in cash are recorded as
liabilities. For BCE, this Section applies to all awards granted on or after
January 1, 2002. Upon adoption, BCE has elected to account for employee stock
options by measuring compensation cost for options as the excess, if any, of the
quoted market price of BCE Inc.'s common shares at the date of grant over the
amount an employee must pay to acquire the common shares(1). The following
outlines the impact and assumptions used if the compensation cost for BCE's
stock options was determined under the fair value based method of accounting for
awards granted on or after January 1, 2002.

    -------------------------------------------------------------------------
    For the period ended December 31, 2002                Three     Twelve
                                                         Months     Months
    -------------------------------------------------------------------------
    Net earnings, as reported ($ millions)                1,752      2,475
    Pro forma impact ($ millions)                            (6)       (27)
                                                        ---------------------
    Pro forma net earnings ($ millions)                   1,746      2,448
    Pro forma net earnings per common share
     (basic) ($)                                           1.91       2.71
    Pro forma net earnings per common share
     (diluted) ($)                                         1.88       2.67
    Assumptions used in Black Scholes option
     pricing model:
    Dividend yield                                          3.5%       3.3%
    Expected volatility                                      30%        30%
    Risk-free interest rate                                 3.8%       4.6%
    Expected life (years)                                     3        4.4
    Number of options granted                           104,180  8,051,159
    Weighted average fair value per option granted($)       $ 3        $ 7
    -------------------------------------------------------------------------
    (1) In December 2002, BCE announced that effective January 1, 2003, it will
        account for employee stock options by measuring compensation cost for
        options granted on or after January 1, 2002 under the fair value based
        method of accounting, using a Black Scholes option pricing model. As a
        result of applying this new accounting policy, BCE expects to record
        operating expenses of approximately $40 million to $55 million in 2003,
        representing an impact of approximately $0.04 to $0.05 on net earnings
        per share.



                                       14
<PAGE>

    2.  SEGMENTED INFORMATION

    BCE operates under four segments, based on products and services, reflecting
the way that management classifies its operations for purposes of planning and
performance management. These segments are the Bell Canada segment, Bell
Globemedia, BCE Emergis and BCE Ventures.
    -------------------------------------------------------------------------
    For the period ended December 31   Three months         Twelve months
                                   ------------------------------------------
    ($ millions)                     2002       2001       2002       2001
    -------------------------------------------------------------------------
    Operating revenues
    Bell Canada External            4,499      4,468     17,318     17,038
                Inter-segment(1)       33         68        171        164
                                   ------------------------------------------
                                    4,532      4,536     17,489     17,202
    Bell
     Globemedia External              366        344      1,246      1,175
                Inter-segment          13         10         44         28
                                   ------------------------------------------
                                      379        354      1,290      1,203
    BCE Emergis External              100        105        399        451
                Inter-segment          31         76        141        205
                                   ------------------------------------------
                                      131        181        540        656
    BCE
     Ventures   External              202        196        796        670
                Inter-segment          80         91        268        374
                                   ------------------------------------------
                                      282        287      1,064      1,044
    Corporate
     and other  External                5          0          9          6
                Inter-segment          44         30        165         85
                                   ------------------------------------------
                                       49         30        174         91
                                   ------------------------------------------
    Less: Inter-segment
     eliminations(1)                 (201)      (275)      (789)      (856)
                                   ------------------------------------------
    Total operating revenues        5,172      5,113     19,768     19,340
    -------------------------------------------------------------------------
    EBITDA(2)
    Bell Canada                     1,788      1,704      7,289      6,876
    Bell Globemedia                    72         43        180        108
    BCE Emergis                        20         35         30        127
    BCE Ventures                       72         88        289        290
    Corporate and other,
     including inter-segment
     eliminations                     (39)       (43)      (166)      (159)
                                   ------------------------------------------
    Total EBITDA                    1,913      1,827      7,622      7,242
    -------------------------------------------------------------------------
    Net earnings (loss) applicable
     to common shares
    Bell Canada                     1,407       (101)     2,423        663
    Bell Globemedia                  (493)       (25)      (492)      (150)
    BCE Emergis                         7        (45)       (51)      (281)
    BCE Ventures                       32         41        131        270
    Corporate and other,
     including inter-segment
     eliminations                    (118)        40       (113)     3,069
                                   ------------------------------------------
    Total earnings (loss)
     from continuing operations       835        (90)     1,898      3,571
    Discontinued operations           917       (195)       577     (3,057)
    Dividends on preferred shares     (16)       (14)       (59)       (64)
                                   ------------------------------------------
    Total net earnings
     (loss) applicable to
     common shares                  1,736       (299)     2,416        450
    -------------------------------------------------------------------------
    (1) Certain comparative figures have been reclassified to conform to the
        current period presentation.

    (2) "EBITDA" is defined as operating revenues less operating expenses and
        therefore reflects earnings before interest, taxes, depreciation and
        amortization, as well as any non-recurring items. BCE uses "EBITDA",
        amongst other measures, to assess the operating performance of its on-
        going businesses. The term "EBITDA" does not have a standardized meaning
        prescribed by Canadian GAAP and therefore may not be comparable to
        similarly titled measures presented by other publicly traded companies.
        EBITDA should not be construed as the equivalent of net cash flows from
        operating activities.



                                       15
<PAGE>

    3.  BUSINESS ACQUISITIONS AND DISPOSITIONS

    REPURCHASE OF SBC'S 20% INTEREST IN BCH
    On June 28, 2002, BCE Inc., BCH and entities controlled by SBC entered into
agreements that led to the repurchase by BCE Inc. of SBC's 20% indirect interest
in BCH, the holding company of Bell Canada, for $6.3 billion. Pursuant to these
agreements, on June 28, 2002, BCH purchased for cancellation a portion of its
outstanding shares from SBC for a purchase price of $1.3 billion, resulting in
an increase in BCE Inc.'s ownership in BCH to 83.5%. On December 2, 2002, BCE
Inc. completed the repurchase of the remaining 16.5% interest in BCH for a
purchase price of $4.99 billion. The excess of the purchase price over the
carrying value of the 20% interest in BCH amounted to $5.4 billion. This amount
will be allocated to the individual net assets including intangibles of BCH
based on a valuation of those individual net assets with any remaining excess
being allocated to goodwill. Preliminarily, this excess has been allocated
entirely to goodwill.

    BCE Inc. completed the financing of the $6.3 billion repurchase price of
SBC's indirect interest in Bell Canada through the following steps:

    - $1.1 billion drawn on July 15, 2002 under a $3.3 billion two-year non-
      revolving credit agreement;

    - proceeds from the issuance on July 15, 2002 of 9 million BCE Inc. common
      shares for $250 million ($27.63 per share), by way of a private placement
      to SBC;

    - net proceeds from the public issuance on August 12, 2002 of 85 million
      common shares of BCE Inc. for $2 billion ($24.45 per share);

    - net proceeds from the public issuance on October 30, 2002 of long-term
      notes of BCE Inc. for $2 billion;

    - proceeds from the issuance on December 2, 2002 of 9 million BCE Inc.
      common shares for $250 million ($28.36 per share), by way of a second
      private placement to SBC; and

    - the remaining $0.7 billion was financed from a portion of the net proceeds
      from the sale of the Directories business.

    As part of the agreements, BCE Inc. will also purchase, at face value, on or
before December 31, 2004, $314 million of BCH Convertible Series B Preferred
Securities held by SBC.

    In connection with the arrangements described above, on June 28, 2002, BCH
granted to SBC an option ("BCH option") to purchase 20% of the then outstanding
common shares of BCH at an exercise price of approximately $39.48 per share,
representing an approximate 25% premium to the June 28, 2002 negotiated
repurchase price of the BCH shares, exercisable no later than January 30, 2003.

    SALE OF THE DIRECTORIES BUSINESS
    On November 29, 2002, Bell Canada and certain affiliates completed the sale
of their print and electronic Directories business for $3 billion cash. As a
result, BCE recorded a gain on sale of $2.3 billion. The purchasers own an
approximate 90% equity interest of an acquisition vehicle that holds the
Directories business. Bell Canada indirectly acquired an approximate 10% equity
interest in the acquisition vehicle for approximately $91 million.

    CREATION OF BELL WEST INC. ("BELL WEST")
    In April 2002, Bell Canada and Manitoba Telecom Services Inc. ("MTS"), a
related party, combined their interests of the wireline assets of BCE Nexxia
Inc. in Alberta and British Columbia with Bell Intrigna Inc. to create Bell
West, a company providing telecommunications services in those two provinces.
Bell West operates under the Bell brand and is owned 60% by Bell Canada and 40%
by MTS. The terms of the agreement between Bell Canada and MTS also include
certain put and call options with respect to MTS' 40% ownership of Bell West.

    The put options for MTS are as follows:
    - In February 2004, MTS can sell its interest in Bell West to Bell Canada at
      a guaranteed floor value of $458 million plus incremental funding
      (including an 8% return on that incremental funding) invested by MTS going
      forward (floor value). In January 2007, MTS can sell its interest in Bell
      West to Bell Canada at fair market value less 12.5%. MTS can also sell its
      interest in Bell West to Bell Canada at fair market value less 12.5% upon
      the occurrence of certain change events affecting Bell West.

    The call options for Bell Canada should MTS not exercise its put options are
    as follows: - In March 2004, Bell Canada has the option to purchase MTS
    interest at
      the greater of the floor value and fair market value. In February 2007,
      Bell Canada has the option to purchase MTS interest at fair market value.
      Bell Canada can also purchase MTS interest at fair market value upon a
      change of control of MTS to a party other than Bell Canada or its
      affiliates.


                                       16
<PAGE>

    CREATION OF THE BELL NORDIQ INCOME FUND
    In April 2002, Bell Canada announced the completion of an initial public
offering of units of a newly created income fund (the "Bell Nordiq Income
Fund"). The Fund acquired from Bell Canada a 36% interest in each of Telebec
Limited Partnership and Northern Telephone Limited Partnership. Bell Canada
retains management control over both partnerships and holds a 64% interest in
the partnerships. Bell Canada received gross proceeds of $324 million and
recorded a gain on sale of $222 million (BCE's share is $170 million on an
after-tax basis).

    4. RESTRUCTURING AND OTHER CHARGES

    BELL CANADA STREAMLINING COSTS AND OTHER CHARGES In the fourth quarter of
    2002, Bell Canada recorded a pre-tax
restructuring charge of $302 million ($190 million after tax), representing
restructuring and other charges of $232 million and $70 million, respectively.
The restructuring charge is related to employee severance, including enhanced
pension benefits and other directly related employee costs, for approximately
1,700 employees, which resulted primarily from a decision to streamline certain
management, clerical, line and other support functions. The restructuring
program is expected to be completed in 2003. At December 31, 2002, the remaining
unpaid balance of this restructuring provision relating to employee severance
and other directly related employee costs was $111 million. Other charges
consisted primarily of various accounts receivable write-downs relating to
billing adjustments and unreconciled balances from prior years.

    WRITE-OFF OF DEFERRED COSTS
    In the fourth quarter of 2002, BCE recorded a pre-tax charge of $93 million
($61 million on an after tax basis), representing a write-off of deferred costs
relating to various convergence initiatives after an analysis indicated that it
is unlikely that these costs will be recovered.

    SETTLEMENT OF PAY EQUITY COMPLAINTS
    On September 25, 2002, the members of the Canadian Telecommunications
Employees' Association ("CTEA") ratified a settlement reached between the CTEA
and Bell Canada with respect to the 1994 pay equity complaints filed by members
of the CTEA before the Canadian Human Rights Tribunal. The settlement includes a
cash payout of $128 million and related pension benefits of approximately $50
million. As a result of the settlement, Bell Canada recorded a one-time charge
of $79 million (BCE's share is $37 million on an after-tax basis) in the third
quarter of 2002, which corresponds to the $128 million cash payout, net of a
previously recorded provision. The pension benefits will be deferred and
amortized into earnings over the estimated average remaining service life of
active employees and the estimated average remaining life of retired employees.

    WRITE-DOWN OF BELL CANADA'S ACCOUNTS RECEIVABLE
    Coincident with the development of a new billing platform, Bell Canada has
adopted a new and more precise methodology to analyze the amount of receivables
by customer and service line, which permits a more accurate determination of the
validity of customer balances to Bell Canada. This analysis indicated that as at
June 30, 2002, a write-down of accounts receivable amounting to $272 million
(BCE's share is $142 million on an after- tax basis) is appropriate. As these
amounts arose from legacy billing systems and processes, Bell Canada has carried
out a detailed review of billings and adjustments for the period from 1997 to
2002. This review determined that these amounts arose as the cumulative result
of a series of individually immaterial events and transactions pertaining to its
legacy accounts receivable systems dating back to the early 1990's.

    BCE EMERGIS RESTRUCTURING PLAN
    BCE Emergis Inc. ("BCE Emergis") recorded a pre-tax charge of $119 million
(BCE's share is $63 million on an after-tax basis) in the second quarter of
2002, representing restructuring and other charges of $100 million and $19
million, respectively, related to the write-off of certain assets, employee
severance and other employee costs, contract settlements and costs of leased
properties no longer in use, which resulted primarily from the streamlining of
BCE Emergis' service offerings and reduction in its operating cost structure.
The restructuring program is substantially complete. As at December 31, 2002,
the remaining unpaid balance of this restructuring provision was $23 million.

    5. OTHER INCOME (EXPENSE)
    -------------------------------------------------------------------------
    For the period ended December 31  Three months          Twelve months
                                   ------------------------------------------
    ($ millions)                     2002       2001       2002       2001
    -------------------------------------------------------------------------
    Net gains on investments        2,246          7      2,427      4,044
    Foreign currency gains
     (losses)                          (1)        (8)        36        (83)
    Other                              (3)       (10)         5         54
    -------------------------------------------------------------------------
    Other income (expense)          2,242        (11)     2,468      4,015
    -------------------------------------------------------------------------



                                       17
<PAGE>

    In the fourth quarter of 2002, net gains on investments of $2,246 million
resulted primarily from the sale of the Directories business ($2,310 million).
The remaining $64 million net loss consists of various write-downs of portfolio
investments. Included in other is a $30 million write-down of deferred financing
costs relating to the early retirement of credit facilities.

    In 2002, net gains on investments of $2,427 million also included the sale
of a 36% interest in both Telebec Limited Partnership and Northern Telephone
Limited Partnership upon the creation of the Bell Nordiq Income Fund ($222
million) and a $98 million write-down of the remaining portfolio investment in
Nortel Networks.

    6. DISCONTINUED OPERATIONS
    -------------------------------------------------------------------------
    For the period ended December 31   Three months         Twelve months
                                   ------------------------------------------
    ($ millions)                     2002       2001       2002       2001
    -------------------------------------------------------------------------
    Teleglobe                       1,042       (174)       893     (2,810)
    BCI                              (125)       (21)      (316)      (247)
    -------------------------------------------------------------------------
    Net gain (loss) from
     discontinued operations          917       (195)       577     (3,057)
    -------------------------------------------------------------------------

    TELEGLOBE
    Teleglobe provides international voice and data telecommunications services.
Until the second quarter of 2002, Teleglobe also provided, through its
investment in the Excel Communications group ("Excel"), retail
telecommunications services such as long distance, paging and Internet services
to residential and business customers in North America. The results of
operations of Teleglobe include an impairment charge of $2,049 million recorded
in the first quarter of 2001 after completion of an assessment of the carrying
value of Teleglobe's investment in Excel.

    On April 24, 2002, BCE Inc. announced that it would cease further long- term
funding to Teleglobe. BCE Inc.'s decision was based on a number of factors,
including a revised business plan and outlook of the principal operating segment
of Teleglobe with associated funding requirements, a revised assessment of its
prospects, and a comprehensive analysis of the state of its industry. In light
of that decision, Teleglobe announced that it would pursue a range of financial
restructuring alternatives, potential partnerships and business combinations.
Also on April 24, 2002, all BCE Inc.-affiliated board members of Teleglobe
tendered their resignation from the Teleglobe board. The effective result of
these events was the exit by BCE of the Teleglobe business and the eventual
material reduction in BCE's approximate 96% economic and voting interest in
Teleglobe as a result of the ongoing restructuring of Teleglobe. Accordingly,
effective April 24, 2002, BCE reclassified the financial results of Teleglobe as
a discontinued operation.

    BCE's management completed its assessment of the net realizable value of
BCE's interest in the net assets of Teleglobe and determined it to be nil,
resulting in a loss from discontinued operations of $73 million, which is in
addition to the transitional impairment charge of $7,516 million to opening
retained earnings as at January 1, 2002, as required by the transitional
provisions of the new CICA Handbook section 3062 (refer to Note 1).

    On May 15, 2002 and later during the year, Teleglobe and certain of its
subsidiaries filed for court protection under insolvency statutes in various
countries, including Canada and the United States. On September 19, 2002,
Teleglobe announced the execution of agreements for the sale of its core
telecommunications business. Effective November 30, 2002, BCE Inc.'s debtor-in-
possession and employee severance and retention facilities were fully repaid by
Teleglobe and terminated. On December 31, 2002, after obtaining court approval,
BCE Inc. and its affiliates sold all of their common and preferred shares in
Teleglobe to the court-appointed monitor for nominal consideration.

    The sale triggered approximately $10 billion of capital losses. BCE recorded
a gain of $1,042 million, relating primarily to the tax benefit from (i)
reinstating non-capital losses that were previously used to offset the gain on
sale of Nortel Networks shares in 2001; and (ii) applying a portion of the
capital losses against the gain on the sale of the Directories business in 2002.
A valuation allowance has been provided against the entire amount of the unused
tax benefit associated with the capital losses.



                                       18
<PAGE>

    CHANGE IN ACCOUNTING FOR TELEGLOBE
    Since (i) BCE's management did not expect any future economic benefits from
its approximate 96% economic and voting interest in Teleglobe; (ii) BCE has not
guaranteed any of Teleglobe's obligations; and (iii) BCE has ceased further
long-term funding to Teleglobe, BCE deconsolidated Teleglobe's financial results
effective May 15, 2002, and began accounting for the investment at cost.

    The following are amounts relating to BCE's interest in the net assets of
Teleglobe on May 15, 2002: current assets of $1.4 billion, non-current assets of
$4.3 billion, current liabilities of $3.6 billion, and non-current liabilities
of $2.1 billion.

    Refer to Note 8 "Commitments and Contingencies" for a description of the
lending syndicate lawsuit filed against BCE Inc.

    BCI
    Prior to the sale of its interest in Telecom Americas Ltd., BCI developed
and operated advanced communications companies in markets outside Canada, with a
focus on Latin America. Effective January 1, 2002, BCE adopted a formal plan to
dispose of its operations in BCI. As a result, BCI's results were reported as
discontinued operations.

    BCI'S PLAN OF ARRANGEMENT
    BCI completed the sale of its interest in Telecom Americas Ltd. in July
2002. BCI held most of its investments through Telecom Americas Ltd. BCI will be
liquidated once all of its assets have been disposed of and all claims against
it have been determined. A final distribution will be made to BCI's creditors
and shareholders with the approval of the court.

    CHANGE IN ACCOUNTING FOR BCI
    Effective June 30, 2002, BCE deconsolidated BCI's financial results, and now
accounts for the investment at cost. Therefore, all future financial results of
BCI will not affect BCE's future financial results.

    BCE recorded a charge of $316 million in 2002 ($191 million in the second
quarter and $125 million in the fourth quarter), representing a write-down of
its investment in BCI to an estimate of its net realizable value. The charge was
reported as a loss from discontinued operations.

    Amounts included in the consolidated balance sheets relating to discontinued
operations are as follows:

    -------------------------------------------------------------------------
                                                       December   December
                                                             31         31
    ($ millions)                                           2002       2001
    -------------------------------------------------------------------------
    Current assets                                            -      1,957
    Non-current assets                                       50     16,576
    Current liabilities                                       -     (5,855)
    Non-current liabilities                                   -     (5,250)
    -------------------------------------------------------------------------
    Net assets of discontinued operations                    50      7,428
    -------------------------------------------------------------------------


    The summarized statements of operations for the discontinued operations are
as follows:

    -------------------------------------------------------------------------
    For the period ended December 31   Three months         Twelve months
                                   ------------------------------------------
    ($ millions)                     2002       2001       2002       2001
    -------------------------------------------------------------------------
    Revenue                             -        984        681      3,695
                                   ------------------------------------------
    Operating loss from
     discontinued
     operations, before tax             -       (251)      (123)    (3,407)
    Gain (loss) on
     discontinued
     operations, before tax          (125)         0       (407)       461
    Income tax recovery on
     operating loss                     -         75         40        209
    Income tax recovery
     (expense) on (gain) loss       1,042          0      1,060        (45)
    Non-controlling interest            -        (19)         7       (275)
    -------------------------------------------------------------------------
    Net gain (loss) from
     discontinued operations          917       (195)       577     (3,057)
    -------------------------------------------------------------------------


                                       19
<PAGE>

    7. EARNINGS PER SHARE DISCLOSURES

    The following is a reconciliation of the numerators and the denominators of
the basic and diluted earnings per common share computations for earnings from
continuing operations:

    -------------------------------------------------------------------------
    For the period ended December 31   Three months         Twelve months
                                   ------------------------------------------
                                     2002       2001       2002       2001
    -------------------------------------------------------------------------
    Earnings (loss) from continuing
     operations (numerator)
     ($ millions)
    Earnings (loss) from
     continuing operations            835        (90)     1,898      3,571
    Dividends on preferred
     shares                           (16)       (14)       (59)       (64)
                                    --------  --------  ---------  ----------
    Earnings from continuing
     operations - basic               819       (104)     1,839      3,507
    Exercise of put options
     by CGI shareholders                3          0(1)      12          2
    -------------------------------------------------------------------------
    Earnings (loss) from
     continuing operations -
     diluted                          822       (104)     1,851      3,509
    -------------------------------------------------------------------------
    Weighted average number of
     common shares outstanding
     (denominator) (millions)
    Weighted average number
     of common shares
     outstanding - basic            909.1      808.5      847.9      807.9
    Exercise of stock options         1.9          0(1)     2.0        4.4
    Exercise of put options
     by CGI shareholders             13.0          0(1)    13.0        5.6
    -------------------------------------------------------------------------
    Weighted average number
     of common shares
     outstanding - diluted          924.0      808.5      862.9      817.9
    -------------------------------------------------------------------------
    (1) Anti-dilutive

    8. COMMITMENTS AND CONTINGENCIES

    TELEGLOBE LENDING SYNDICATE LAWSUIT
    Certain members of the Teleglobe lending syndicate (the "Plaintiffs") filed
a lawsuit against BCE Inc. in the Ontario Superior Court of Justice on July 12,
2002. The Plaintiffs seek damages from BCE Inc. in the aggregate amount of
US$1.19 billion (together with interests and costs), which they allege is equal
to the amount they advanced as members of the Teleglobe and Teleglobe Holdings
(U.S.) Corporation lending syndicate. The Plaintiffs' claim is based on several
allegations, including that the actions and representations of BCE Inc. and its
management in effect constituted a legal commitment of BCE Inc. that the
advances would be repaid and that the court should disregard Teleglobe as a
corporate entity and hold BCE Inc. responsible to repay the advances as
Teleglobe's alter ego. The Plaintiffs represent approximately 95.2% of the
US$1.25 billion advanced by the members of such lending syndicate. While the
final outcome of any legal proceeding cannot be predicted with certainty, based
upon information currently available, BCE Inc. is of the view that it has strong
defences and it intends to vigorously defend its position.

    CRTC SECOND PRICE CAP DECISION 2002-34
    On May 30, 2002, the CRTC released Decision 2002-34, "Second Price Cap
Decision", making a number of changes to the rules governing Canada's
telecommunications industry with respect to local service for the next four
years. One of the changes resulting from this Decision is that there be a
mechanism (referred to in the Decision as the "deferral account") to provide to
the majority of residential customers a combination of certain enhanced
services, reduced rates and/or rebates, and certain other adjustments. Bell
Canada will propose the manner in which it will implement these directives to
the CRTC in March 2003. As at December 31, 2002, BCE's commitment associated
with this Decision is estimated at $99 million.



- -30-

For further information: Nick Kaminaris, Communications, (514) 786-3908,
Web Site: www.bce.ca; Isabelle Morin, Investor Relations, (514) 786-3845


                                       20
<PAGE>


                                    SIGNATURE


Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.



                                            BCE Inc.



                                  (Signed Michael T. Boychuk)
                      -----------------------------------------------------
                                        Michael T. Boychuk
                         Senior Vice-President and Corporate Treasurer





                                    Date: January 29, 2003


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>investor-briefing.txt
<DESCRIPTION>INVESTOR BRIEFING
<TEXT>
Investor Briefing
January 29, 2003
Fourth Quarter 2002
(Unaudited) This supplement to the press release announcing BCE's Quarterly
Results is intended to provide, on a timely basis, information of interest to
the investment community.

BCE's consolidated Financial Statements for the fourth quarter of 2002 are
available on BCE's website at www.bce.ca. This material is presented for
information only, and should not be construed as a solicitation to invest in any
securities of BCE Inc.

For further information,
please contact:
Isabelle Morin, Director
(514) 786-3845 i.morin@bell.ca George Walker, Director (514) 870-2488
george.walker@bell.ca

BCE Reports Fourth Quarter Results
Quarter marked by continuing productivity gains and growth in wireless, DSL and
satellite TV customers. EPS was $0.44 before the gain on the sale of the
directories business and other non-recurring items.

 o   Operating revenues for the quarter totaled $5.2 billion, up 1.2% compared
     to the same period last year, reflecting solid growth in Bell's wireless
     and satellite TV service revenues which increased 16% and 32% respectively.
     Data revenue, meanwhile, grew 6% given the softness in the enterprise and
     wholesale markets.
 o   The increase in operating revenues was negatively impacted by regulatory
     decisions, as well as the sale of Bell's directories business in late
     November. Absent these items, operating revenues would have grown 4.7% in
     the quarter.
 o   BCE's EBITDA1 of $1.9 billion increased 5%, compared to the same period
     last year, driven primarily by productivity gains of approximately $140
     million in the quarter. Bell's EBITDA margin improved by 1.9 percentage
     points to 39.5%, contributing to a consolidated BCE margin of 37%.
 o   Consolidated net earnings applicable to common shares of $1,736 million or
     $1.92 per common share compares with a loss of $0.37 last year. Earnings
     for the quarter included a net gain of $1,826 million resulting from the
     sale of Bell's directories business and $505 million of tax benefits and
     adjustments arising from the sale of Teleglobe. These were offset by
     after-tax restructuring and other charges of $251 million relating
     primarily to Bell's streamlining efforts, a $530 million goodwill
     impairment charge relating to Bell Globemedia and Aliant's investment in
     Xwave and a $209 million writedown of various venture and portfolio
     investments. Excluding these items, net earnings applicable to common
     shares was $0.44 per share, slightly above guidance.

 1  EBITDA is defined as operating revenues less operating expenses and
    therefore reflects earnings before interest, taxes, depreciation and
    amortization, as well as any non-recurring items. BCE uses EBITDA, amongst
    other measures, to assess the operating performance of its ongoing
    businesses. The term "EBITDA" does not have a standardized meaning
    prescribed by Canadian GAAP or U.S. GAAP and therefore may not be comparable
    to similarly titled measures presented by other publicly traded companies.
    EBITDA should not be construed as the equivalent of net cash flows from
    operating activities.

    Certain sections of this document contain forward-looking statements with
    respect to BCE and its subsidiaries. These forward-looking statements, are
    based on assumptions and, by their nature, necessarily involve risks and
    uncertainties that could cause actual results to differ materially from
    those contemplated by the forward-looking statements. Factors which could
    cause actual results or events to differ materially from current
    expectations are discussed on page 23 under "CAUTIONARY STATEMENT CONCERNING
    FORWARD-LOOKING STATEMENTS".


January 29, 2003
Fourth Quarter 2002
(Unaudited)

This supplement to the press release announcing BCE's Quarterly Results is
intended to provide, on a timely basis, information of interest to the
investment community.

BCE's consolidated Financial Statements for the fourth quarter of 2002 are
available on BCE's website at www.bce.ca.

This material is presented for information only, and should not be construed as
a solicitation to invest in any securities of BCE Inc.

For further information,
please contact:
Isabelle Morin, Director
(514) 786-3845 i.morin@bell.ca George Walker, Director (514) 870-2488
george.walker@bell.ca
<PAGE>


Wireless Growth

Continued profitable growth with 90% of net additions on post-paid rate plans

Growth
 o Wireless service revenues were $570 million for the quarter, up 16% from a
   year ago driven by subscriber growth of 13.5%, and strong post-paid wins.
 o Net activations of 218,000 for the quarter brought the total subscriber base
   to 3,919,000. Including paging subscribers, BCE now serves 4,558,000 wireless
   customers.
 o The 196,000 post-paid customers added this quarter were the highest achieved
   in any quarter in BCE's history. At December 31, 2002, 75% of cellular and
   PCS subscribers were on post-paid rate plans, up from 72% at the end of Q4
   2001.
 o The strong performance in customer gains reflects the introduction of BCE's
   Simple Rate Plans which reduced the number of rate plan offerings and focused
   customers to fewer base plans. Combined with an attractive hardware line-up
   and contract incentives, this led to 70% of gross activations signing 24
   month contracts, compared to around 45% for the same period last year.
 o BCE ended the year with a 67% digital subscriber base, up from 62% in the
   third quarter and 52% at the end of 2001. Average revenue per unit (ARPU)
 o Total ARPU of $47 and post-paid ARPU of $60 both increased by more than $1
   compared to Q4 2001, reflecting BCE's focus on profitable growth. The
   increase resulted primarily from a higher post-paid mix of subscribers,
   revenues from value added services such as call display and message centre,
   as well as the increase in system access fees. Prepaid ARPU, however, was
   down $2 from Q4 2001 due mainly to repricing of off-peak rates.

Industry Leading Churn
 o BCE had industry leading churn of 1.7%, consistent with last year and Q3
   2002. While prepaid churn was up from last year, post-paid churn of 1.4%
   declined both on a sequential basis and compared to fourth quarter of 2001.
   Customer-initiated churn continued to remain at a historically low level,
   demonstrating the strength of the Bell brand and a commitment to providing
   superior customer service.

Wireless data
 o Mobile browser hits reached 99 million in the fourth quarter, up 14% from Q3
   2002. Mobile data users grew 9% over the third quarter to 1.4 million.
 o 1xRTT capability was further expanded in Ontario and Quebec to reach 80% of
   the population by year end.
 o On January 23, the Canadian and U.S. wireless industry associations announced
   the introduction of new cross-border inter-carrier text messaging services
   which will enable wireless customers to exchange text messages between U.S.
   national wireless service providers and the major Canadian wireless service
   providers.

Western Expansion
 o Enhancing its presence in the Western market, in December 2002 Bell Mobility
   opened a new Call Centre and Network Switching and Operations Facility in
   Vancouver to monitor its 1x network 24 hours a day.
 o In November, Bell Mobility expanded the October 2001 digital roaming and
   resale reciprocal agreement with Telus Mobility to include 1x services to
   rural Alberta and B.C.

<PAGE>

Data Growth
Data
Data growth continues to reflect soft demand

 o   Bell Canada data revenues for the fourth quarter were $1,035 million, an
     increase of 5.7% over Q4 2001. Annual data growth of 8% fell within the
     October 7th revised data revenue growth guidance of 6% - 10%.

 o   Wholesale and enterprise data demand continues to be soft. Enterprise
     customers continue to minimize investment, choosing instead to utilise
     existing capacity rather than expanding. MNS, however, has performed well,
     ending the year with over 20% growth.

 o   In 2003, data revenues are anticipated to grow in the 3% - 7% range,
     reflecting the growth seen in the second half of 2002.

 DSL

Sympatico DSL posts solid fourth quarter growth

 o   The overall DSL subscriber base grew by 108,000 this quarter to reach
     1,110,000, an 11% increase over Q3 2002, and a 47% increase over last year.
     Of the 108,000 net adds for the quarter, 80,000 related to consumer DSL
     services, 12,000 business and 16,000 wholesale.

 o   Consumer DSL growth at the beginning of the quarter continued to reflect
     the trend experienced in Q3 with solid Sympatico DSL Basic (Basic)
     additions. Basic continued to be popular, primarily with Sympatico dial-up
     customers wishing to upgrade to a higher speed offering and, to a lesser
     degree, as a lower speed alternative for Sympatico High Speed Edition
     (SHSE) customers. In both cases, the availability of Basic prevented
     customer losses and decreased overall DSL churn. During the quarter, the
     product offerings were fine tuned leading to a pick-up in SHSE sales toward
     the end of the quarter. For the quarter, net additions for Basic totalled
     72,000.

 o   Fine tuning of the offerings continues in order to ensure balanced growth
     of Basic, SHSE and Ultra products in an evolving high speed internet access
     marketplace. On January 3rd, 2003, a $5.00/month price increase was
     implemented for all new Basic customers in Ontario and Quebec, increasing
     the monthly charge to $29.95.

 o   During the quarter, Bell Canada added 30,000 new subscriptions of its
     Sympatico value-added services such as Desktop Anti-virus, Desktop Firewall
     and MusicMatch.ca for an end-of-period total count of 85,000.

 o   Average self-installation rates for the quarter remained in the 98% - 99%
     range.

 o   The DSL footprint in Ontario and Quebec has expanded from 73% to reach 75%
     of homes and business lines passed.

<PAGE>

Satellite Television Growth

Bell ExpressVu delivers strong fourth quarter performance

 o Bell ExpressVu's continued customer growth translated into revenues of $176M
   for the quarter, a 32% improvement over the same period last year. Full year
   revenues grew 35%.
 o Improvements in financial performance were achieved through continued cost
   containment efforts in call centre and technology expenses with EBITDA losses
   for the quarter improving by 39% over last year and 23% for the full year.
 o Net activations of 83,000 for the fourth quarter were industry-leading,
   despite being down from Q4 2001 given a general softening of the electronics
   market. 69% of net additions came from urban areas compared to 67% in the
   same period last year.
 o Bell ExpressVu increased its DTH market share to 62% with a subscriber base
   of 1,304,000 at the end of 2002. At the end of the fourth quarter, Bell
   ExpressVu's urban customer base remained stable at 59% of total subscribers.

Cost of Acquisition
 o Cost of acquisition (COA) per subscriber was $667 this quarter, down from
   $710 for the same period last year, mainly as a result of ExpressVu's
   decision to introduce term subscriptions whereby programming credits are now
   netted against revenues. Without this change, COA would have risen slightly
   on a year over year basis to $729 primarily from the impact of a higher
   number of second receivers purchased by customers and the free installation
   offer introduced midway through the fourth quarter.

Average revenue per subscriber
 o Average revenue per subscriber (ARPS) of $43 was down slightly from the same
   period last year, also reflecting the netting of programming credits against
   revenues. Without this change, ARPS would have increased to $45 reflecting
   the impact of pricing initiatives such as the monthly second receiver charge
   for new customers, increases in transfer and reconnect fees and gains from
   program package upgrading by customers.

Anti-Piracy Initiatives
 o In January, as part of ongoing anti-piracy measures, ExpressVu implemented
   sophisticated electronic counter measures targeted at illegal devices. This
   initiative was deemed successful and further measures of this type will be
   employed in the future.
 o ExpressVu is also accelerating legal action against suspected dealer
networks.

Nimiq 2
 o With the successful launch of Nimiq 2 on December 29, 2002, Bell ExpressVu
   will begin broadcasting an expanded line-up of services from two DTH
   satellites in the Spring of 2003. Nimiq 2, with a more powerful signal, will
   also serve as a back up for Bell ExpressVu's first satellite.

<PAGE>

Local and Long Distance

 o   Bell's traditional local and long distance businesses reflect the ongoing
     trends apparent in the industry.

 o   Local revenues were down 4.8% in the quarter, compared to the same period
     last year, as a result of the negative impacts of the Contribution and
     Price Caps decisions. Excluding these impacts, local revenues were down
     modestly, reflecting access line erosion of around 1% year over year.

 o   Long distance revenues were down 1.9% in the quarter, reflecting pressure
     on both business and consumer rates which was partially offset by the
     introduction of various network charges. This led to a slight decline in
     average revenue per minute to around 12(cent).

 o   Overall conversation minutes, up 4% in the quarter on strong business
     market volumes, also helped partially relieve pricing pressures.


Bell Globemedia

Advertising markets strengthen

 o   Bell Globemedia revenues for the fourth quarter were $379 million, 7%
     higher than the fourth quarter of 2001 reflecting the continued
     strengthening of television advertising, which increased by 7.5% and print
     advertising, which rose 11.8%. Subscription revenues across the print and
     TV divisions also grew by 8%. For the full year, Bell Globemedia had
     revenues of $1.3 billion, 7% higher than 2001.

 o   EBITDA for the quarter grew to $72 million, a $29 million increase over the
     fourth quarter of 2001, reflecting the increase in revenues and
     productivity gains. For the year, Bell Globemedia had EBITDA of $180
     million, a 67% increase over 2001. Bell Globemedia's EBITDA growth was a
     significant achievement considering 2002 expenses included approximately
     $12 million of start-up losses related to the launch of new digital
     television channels at the end of 2001.

Leading media brands

 o   In January, the release of BBM Canada's Fall 2002 television sweeps
     revealed that the CTV conventional and specialty channels continued to lead
     competitors in the adult 25-54 market. CTV also continues to be a ratings
     success with 7 of the top 10 shows in the 2002 fall line-up.

 o   The Globe and Mail continued its leadership position in the national
     newspaper market. The most recent NADbank newspaper readership data shows
     The Globe and Mail leading the national market with 1,028,000 readers
     daily. The Globe and Mail's readership levels lead its closest rival by
     42%.

<PAGE>

BCE Emergis

Repositioning of BCE Emergis continues

 o   BCE Emergis had fourth quarter and annual revenues of $131 million and $540
     million respectively, down significantly from prior periods. In response to
     the decrease in nonrecurring revenue, the company implemented its revised
     business plan announced in April 2002. Fourth quarter revenue declined
     slightly from third quarter revenues due to a lower contribution from its
     US eHealth operations and from non-core products as BCE Emergis continued
     to exit non-core businesses.

 o   Despite the sequential revenue decline, BCE Emergis had EBITDA of $20
     million, stable compared to Q3 2002. The exit during the year of several
     unprofitable lines of business has enabled BCE Emergis to maintain its
     EBITDA level despite lower revenues. EBITDA for 2002 was $30 million.

 o   Having reduced its operating costs, BCE Emergis must now focus on further
     developing its product portfolio and enhancing its sales and service
     capability in order to generate increased recurring revenues.

Cost Management

Productivity gains drive EBITDA performance

 o   BCE's continuing focus on productivity has led to total improvements this
     quarter of approximately $140 million and $655 million for the full year.
     These gains were the major contributor in delivering BCE's EBITDA growth in
     Q4 and for the full year and in delivering EBITDA margin improvement from
     the 35.7% experienced in 2001 to the 37.0% experienced in 2002.

 o   Bell Canada's productivity gains of approximately $135 million this quarter
     led to total gains of $630 million for the year, delivering on its
     commitment of achieving over $600 million in productivity gains in 2002.
     Bell Canada's productivity program is comprised of numerous small projects
     reflecting both cross-enterprise initiatives and initiatives at the local
     business unit level. It focuses broadly on reducing customer acquisition
     costs, servicing of existing customers and general support. In 2003,
     productivity gains will continue to be a priority at Bell Canada, with a
     further $600 million of total cost savings targeted.

 o   Bell Globemedia achieved savings this quarter driven by its workforce
     restructuring and synergies from its acquisitions of CFCF, CKY and RoBTV.
     Focus on capex efficiency continues

 o   BCE continued its tight management of capex this quarter resulting in
     expenditures of $1.1 billion, or 20.8% of revenues reflecting typically
     higher fourth quarter spending. For 2002, capital expenditures were $3.8
     billion or 19.1% of revenues.

 o   Bell Canada's capital expenditures in Q4 were $981 million and $3.4 billion
     for the year, representing 21.6% and 19.6% of revenues respectively. For
     2003, Bell Canada is targeting capital expenditures of 17% to 18% of
     revenues.

Financial Guidance

 o   The company is providing first quarter guidance and reiterating its full
     year financial guidance as follows:

Consolidated                         Q1 2003                  Full Year 2003

Revenue                              $4.6B - $4.8B            $19.3B - $20.0B
EBITDA                               $1.7B - $1.8B            $7.4B - $7.8B
Earnings per share                   $0.42 - $0.46            $1.85 - $1.95
(before non-recurring items)


 o   BCE's focus is on delivering sustainable growth and the creation of
     shareholder value over the medium and longer term. Accordingly, as
     indicated during BCE's 2003 Business Review Conference on December 18,
     2002, BCE will no longer be providing formal quarterly guidance beyond Q1
     2003.

<PAGE>
<TABLE>

                                                                                                           BCE Consolidated (1) (2)

Consolidated Statements of Operations (unaudited)
<CAPTION>

                                                                           Three months                Twelve months
                                                                    ended December 31                  ended December 31
($ millions, except per share amounts)                            2002         2001   % change       2002        2001     % change

<S>                                                               <C>          <C>    <C>            <C>         <C>      <C>
Operating revenues                                                5,172        5,113  1.2%           19,768      19,340   2.2%
Operating expenses                                                3,259        3,286  (0.8%)         12,146      12,098   0.4%
EBITDA (3)                                                        1,913        1,827  4.7%           7,622       7,242    5.2%
Amortization expense                                              (794)        (948)  16.2%          (3,146)     (3,826)  17.8%
Net benefit plans credit                                          8            31     (74.2%)        33          121      (72.7%)
Restructuring and other charges                                   (395)        (741)  46.7%          (887)       (980)    9.5%
Operating income                                                  732          169    N.M.           3,622       2,557    41.7%
Other income (expense)                                            2,242        (11)   N.M.           2,468       4,015    (38.5%)
Impairment charge                                                 (770)        -      N.M.           (770)       -        N.M.
Interest expense                                                  (349)        (255)  (36.9%)        (1,161)     (1,056)  (9.9%)
Earnings (loss) from continuing operations before
income taxes and non-controlling interest                         1,855        (97)   N.M.           4,159       5,516    (24.6%)
Income taxes                                                      (753)        (31)   N.M.           (1,593)     (1,759)  9.4%
Non-controlling interest                                          (267)        38     N.M.           (668)       (186)    N.M.
Earnings (loss) from continuing operations                        835          (90)   N.M.           1,898       3,571    (46.8%)
Discontinued operations                                           917          (195)  N.M.           577         (3,057)  N.M.
Net earnings (loss)                                               1,752        (285)  N.M.           2,475       514      N.M.
Dividends on preferred shares                                     (16)         (14)   (14.3%)        (59)        (64)     7.8%
Net earnings (loss) applicable to common shares                   1,736        (299)  N.M.           2,416       450      N.M.
Net earnings (loss) per common share - basic
Continuing operations                                          $  0.92   $     (0.13)            $   2.15     $  4.34
Net earnings                                                   $  1.92   $     (0.37)            $   2.74     $  0.56
Average number of common shares outstanding (millions)            909.1        808.5                 847.9       807.9



The following non-recurring items are included in net earnings:
Discontinued operations                                                 917          (195)                 577         (3,057)
Restructuring and other charges                                         (251)        (349)                 (504)       (463)
Net gains on sale of investments and dilution gains                     1,230        40                    1,364       3,206
Goodwill amortization                                                   -            (132)                 -           (560)
Foreign exchange restatement                                            -            (2)                   -           (29)
Impairment charge                                                       (530)        -                     (530)       -
Other                                                                   (25)         (6)                   (25)        (53)
Total                                                                   1,341        (644)                 882         (956)
Impact on net earnings per share                                 $      1.48   $     (0.80)            $   0.93     $  (1.18)
N.M.: not meaningful

</TABLE>

<PAGE>

<TABLE>

                                                                                                            BCE Consolidated (1) (2)
Consolidated Statements of Operations (unaudited) - Historical trend
<CAPTION>

                                                                                     Total                                  Total

<C>                                                    <C>      <C>     <C>    <C>    <C>      <C>     <C>     <C>    <C>    <C>
($ millions, except per share amounts)                Q4 02    Q3 02   Q2 02  Q1 02   2002    Q4 01   Q3 01   Q2 01  Q1 01   2001

Operating revenues                                    5,172    4,822   4,940  4,834   19,768  5,113   4,818   4,767  4,642   19,340
Operating expenses                                    3,259    2,870   2,995  3,022   12,146  3,286   2,941   2,943  2,928   12,098
EBITDA (3)                                            1,913    1,952   1,945  1,812   7,622   1,827   1,877   1,824  1,714   7,242
Amortization expense                                  (794)    (771)   (809)  (772)   (3,146) (948)   (963)   (983)  (932)   (3,826)
Net benefit plans credit                              8        7       12     6       33      31      26      31     33      121
Restructuring and other charges                       (395)    (79)    (413)  -       (887)   (741)   -       -      (239)   (980)
Operating income                                      732      1,109   735    1,046   3,622   169     940     872    576     2,557
Other income (expense)                                2,242    (4)     228    2       2,468   (11)    69      92     3,865   4,015
Impairment charge                                     (770)    -       -      -       (770)   -       -       -      -       -
Interest expense                                      (349)    (288)   (263)  (261)   (1,161) (255)   (255)   (264)  (282)   (1,056)
Earnings (loss) from continuing operations before
income taxes and non-controlling interest             1,855    817     700    787     4,159   (97)    754     700    4,159   5,516
Income taxes                                          (753)    (303)   (244)  (293)   (1,593) (31)    (368)   (327)  (1,033) (1,759)
Non-controlling interest                              (267)    (130)   (136)  (135)   (668)   38      (49)    (98)   (77)    (186)
Earnings (loss) from continuing operations            835      384     320    359     1,898   (90)    337     275    3,049   3,571
Discontinued operations                               917      -       (295)  (45)    577     (195)   (465)   (253)  (2,144) (3,057)
Net earnings (loss)                                   1,752    384     25     314     2,475   (285)   (128)   22     905     514
Dividends on preferred shares                         (16)     (16)    (14)   (13)    (59)    (14)    (16)    (16)   (18)    (64)
Net earnings (loss) applicable to common shares       1,736    368     11     301     2,416   (299)   (144)   6      887     450
Net earnings (loss) per common share - basic
Continuing operations                              $  0.92  $  0.43 $  0.38 $ 0.43  $ 2.15  $ (0.13) $0.40  $ 0.32 $ 3.75   $4.34
Net earnings (loss)                                $  1.92  $  0.43 $  0.01 $ 0.37  $ 2.74  $ (0.37) $(0.18)$ 0.01 $ 1.10   $0.56
Average number of common shares outstanding          909.1    864.1   808.7  808.6   847.9   808.5   807.9   807.4  808.1   807.9
(millions)


The following non-recurring items are included in net earnings:
Discontinued operations                               917      -       (295)  (45)    577     (195)   (465)   (253)  (2,144) (3,057)
Restructuring and other charges                       (251)    (37)    (216)  -       (504)   (349)   -       -      (114)   (463)
Net gains on sale of investments and dilution gains   1,230    12      122    -       1,364   40      153     6      3,007   3,206
Goodwill amortization                                 -        -       -      -       -       (132)   (142)   (149)  (137)   (560)
Foreign exchange restatement                          -        -       -      -       -       (2)     (29)    37     (35)    (29)
Impairment charge                                     (530)    -       -      -       (530)   -       -       -      -       -
Other                                                 (25)     -       -      -       (25)    (6)     (19)    (6)    (22)    (53)
Total                                                 1,341    (25)    (389)  (45)    882     (644)   (502)   (365)  555     (956)
Impact on net earnings per share                   $  1.48  $  (0.03$  (0.48$ (0.06)$ 0.93  $ (0.80) $(0.62)$ (0.45$ 0.69   $(1.18)

</TABLE>

<PAGE>
<TABLE>
<CAPTION>

                                                                                    BCE Consolidated (1) (2)

Consolidated Balance Sheets (unaudited)

                                                                                    December 31                      December 31
(Millions of dollars, except where otherwise indicated)                             2002                             2001
ASSETS
Current assets
<S>                                                                                 <C>                              <C>
Cash and cash equivalents                                                           306                              569
Accounts receivable                                                                 2,343                            4,118
Income and other taxes receivable                                                   147                              -
Other current assets                                                                769                              1,213
Total current assets                                                                3,565                            5,900
Investments                                                                         777                              1,106
Capital assets                                                                      20,486                           25,861
Future income taxes                                                                 675                              1,031
Other long-term assets                                                              3,057                            3,363
Indefinite-life intangible assets                                                   900                              866
Goodwill                                                                            10,103                           15,947
Total assets                                                                        39,563                           54,074
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities                                            3,834                            5,792
Income and other taxes payable                                                      -                                681
Debt due within one year                                                            2,026                            5,263
Total current liabilities                                                           5,860                            11,736
Long-term debt                                                                      13,395                           14,861
Future income taxes                                                                 815                              924
Other long-term liabilities                                                         3,026                            4,129
Total liabilities                                                                   23,096                           31,650
Non-controlling interest                                                            3,596                            5,625
SHAREHOLDERS' EQUITY
Preferred shares                                                                    1,510                            1,300
Common shareholders' equity
Common shares                                                                       16,520                           13,827
Contributed surplus                                                                 980                              980
Retained earnings (deficit)                                                         (6,149)                          712
Currency translation adjustment                                                     10                               (20)
Total common shareholders' equity                                                   11,361                           15,499
Total shareholders' equity                                                          12,871                           16,799
Total liabilities and shareholders' equity                                          39,563                           54,074

Number of common shares outstanding                                                 915.9                            808.5

</TABLE>
<PAGE>

<TABLE>
<CAPTION>

                                                                                                           BCE Consolidated (1) (2)

Consolidated Cash Flow Information
                                                                                 Three months                Twelve months
                                                                                 ended December 31           ended December 31
(Millions of dollars, except where otherwise indicated)                          2002               2001     2002           2001
Cash flows from operating activities
<S>                                                                              <C>                <C>      <C>            <C>
Earnings (loss) from continuing operations                                       835                (90)     1,898          3,571
Adjustments to reconcile earnings (loss) from continuing
operations to cash flows from operating activities:
Amortization expense                                                             794                948      3,146          3,826
Net benefit plans credit                                                         (8)                (31)     (33)           (121)
Restructuring and other charges                                                  333                731      805            915
Impairment charge                                                                770                -        770            -
Gains and losses on reduction of ownership in subsidiaries and joint ventures
and on disposal of investments                                                   (2,260)            (50)     (2,435)        (4,088)
Future income taxes                                                              612                179      602            682
Non controlling interest                                                         267                (38)     668            186
Other items                                                                      (56)               (657)    (298)          (894)
Change in non-cash working capital (4)                                           (96)               268      (304)          157
                                                                                 1,191              1,260    4,819          4,234
Cash flows from investing activities
Capital expenditures                                                             (1,074)            (1,196)  (3,771)        (4,999)
Investments (excluding repurchase of a minority interest in Bell Canada)         (37)               (152)    (218)          (535)
Other items                                                                      5                  (73)     10             (122)
                                                                                 (1,106)            (1,421)  (3,979)        (5,656)
Dividends
Dividends paid on common and preferred shares                                    (284)              (256)    (1,042)        (1,033)
Dividends paid by subsidiaries to non-controlling interest                       (147)              (89)     (468)          (357)

Free Cash Flow before monetizations and repurchase
of a minority interest in Bell Canada                                            (346)              (506)    (670)          (2,812)
Monetizations, net of income taxes                                               2,761              141      2,942          4,749
Free Cash Flow before repurchase of a minority interest in Bell Canada           2,415              (365)    2,272          1,937
Repurchase of a minority interest in Bell Canada                                 (5,060)            -        (6,386)        -
Free Cash Flow after monetizations and repurchase
of a minority interest in Bell Canada                                            (2,645)            (365)    (4,114)        1,937

Other financing activities
Increase (decrease) in notes payable and bank advances                           (636)              (217)    (210)          (2,744)
Issue of long-term debt                                                          2,508              387      4,908          2,443
Repayment of long-term debt                                                      (2,091)            (258)    (2,893)        (1,221)
Issue of preferred shares                                                        -                  -        510            -
Redemption of preferred shares                                                   -                  -        (306)          -
Redemption of preferred shares by subsidiaries                                   -                  (1)      -              (347)
Issue of common shares                                                           303                5        2,693          71
Costs relating to the issuance of common and preferred shares                    -                  -        (78)           -
Purchase of common shares for cancellation                                       -                  -        -              (191)
Issue of common shares, preferred shares, convertible
debentures and equity-settled notes by subsidiaries to non-controlling interest  5                  89       206            1,459
Other items                                                                      (10)               55       (46)           72
                                                                                 79                 60       4,784          (458)
Effect of exchange rate changes on cash and cash equivalents                     2                  (1)      3              (2)
Cash provided by (used in) continuing operations                                 (2,564)            (306)    673            1,477
Cash used in discontinued operations                                             -                  (213)    (936)          (1,168)
Net increase (decrease) in cash and cash equivalents                             (2,564)            (519)    (263)          309
Cash and cash equivalents at beginning of period                                 2,870              1,088    569            260
Cash and cash equivalents at end of period                                       306                569      306            569

Capital expenditures as a percentage of revenues                                 20.8%              23.4%    19.1%          25.8%

</TABLE>
<PAGE>

<TABLE>
<CAPTION>

                                                                                                          BCE Consolidated (1) (2)

Segmented Information
                                                                                     Three                         Twelve months
                                                                                     months
                                                                            ended December 31             ended December 31
(Millions of dollars, except where otherwise                                2002     2001       % change  2002     2001     % change
indicated)

Revenues
<S>                                                                         <C>      <C>        <C>       <C>      <C>      <C>
Bell Canada                                                                 4,532    4,536      (0.1%)    17,489   17,202   1.7%
Bell Globemedia                                                             379      354        7.1%      1,290    1,203    7.2%
BCE Emergis                                                                 131      181        (27.6%)   540      656      (17.7%)
BCE Ventures                                                                282      287        (1.7%)    1,064    1,044    1.9%
Corporate and other (including inter-segment eliminations)                  (152)    (245)      38.0%     (615)    (765)    19.6%
Revenues                                                                    5,172    5,113      1.2%      19,768   19,340   2.2%

EBITDA (3)
Bell Canada                                                                 1,788    1,704      4.9%      7,289    6,876    6.0%
Bell Globemedia                                                             72       43         67.4%     180      108      66.7%
BCE Emergis                                                                 20       35         (42.9%)   30       127      (76.4%)
BCE Ventures                                                                72       88         (18.2%)   289      290      (0.3%)
Corporate and other (including inter-segment eliminations)                  (39)     (43)       9.3%      (166)    (159)    (4.4%)
EBITDA                                                                      1,913    1,827      4.7%      7,622    7,242    5.2%

Net earnings applicable to common shares
Bell Canada
Bell Canada Holdings (including                                             1,468    (39)       N.M.      2,593    854      N.M.
Aliant)
Bell ExpressVu                                                              (61)     (62)       1.6%      (170)    (191)    11.0%
Total Bell Canada                                                           1,407    (101)      N.M.      2,423    663      N.M.
Bell Globemedia                                                             (493)    (25)       N.M.      (492)    (150)    N.M.
BCE Emergis                                                                 7        (45)       N.M.      (51)     (281)    81.9%
BCE Ventures                                                                32       41         (22.0%)   131      270      (51.5%)
Corporate and other (including inter-segment eliminations)                  (134)    26         N.M.      (172)    3,005    N.M.
Discontinued operations
BCI                                                                         (125)    (21)       N.M.      (316)    (247)    (27.9%)
Teleglobe                                                                   1,042    (174)      N.M.      893      (2,810)  N.M.
Total discontinued operations                                               917      (195)      N.M.      577      (3,057)  N.M.
Net earnings applicable to common shares                                    1,736    (299)      N.M.      2,416    450      N.M.

</TABLE>

Proportionate EBITDA, proportionate net debt and preferreds

<PAGE>
<TABLE>
<CAPTION>

                                                                            Proportionate EBITDA
                                Common shares   BCE                                                         12-Mth    Proportionate
                             owned by BCE (M)   Ownership (%)        Q4 02     Q3 02    Q2 02      Q1 02    Trailing  net debt
                                                                                                                      and preferreds

Bell Canada
<S>                                             <C>                  <C>       <C>      <C>        <C>       <C>              <C>
Bell Canada Holdings                            100%                 1,584     1,420    1,303      1,254     5,561            16,215
Aliant                                74.1      53%                  131       107      113        104       455                 750
ExpressVu                                       100%                 (43)      (37)     (29)       (38)      (147)               (7)
Bell Canada Holdings debt due to BCE                                                                                         (2,744)
Redeemable preferred shares to BCE                                                                                           (1,333)
Total Bell Canada                                                 1,672     1,490    1,387      1,320     5,869               12,881
Bell Globemedia                                 70%                  46        5        32         20        103                318
BCE Emergis                           65.9      65%                  13        12       7          (13)      19                 (83)
BCE Ventures
CGI                                   120.0     32%                  26        22       28         25        101                (20)
Telesat                                         100%                 47        44       46         47        184                 502
Other                                           100%                 (1)       1        (1)        5         4                   101
Total BCE Ventures                                                   72        67       73         77        289                 583
Corporate                                       100%                 (39)      (42)     (47)       (38)      (166)
Perpetual Preferred Shares                                                                                                     1,510
Retractable Preferred Shares (5)                                                                                                 355
Long term debt                                                                                                                 2,000
less:
Cash and cash equivalents                                                                                                          4
Nortel common shares at market                                                                                                  (34)
Total Corporate                                                                                                                3,835
Total                                                             1,764     1,532    1,452      1,366     6,114               17,534
N.M.: not meaningful
</TABLE>

See accompanying notes on pages 20-22
<PAGE>


<TABLE>
<CAPTION>



                                                                                                            BCE Consolidated (1) (2)

Segmented Information - Historical trend

                                                                                     Total                                  Total
    (Millions of dollars, except where otherwise    Q4 02    Q3 02   Q2 02    Q1 02   2002     Q4 01   Q3 01 Q2 01  Q1 01    2001
    indicated)

    Revenues
<S>                                                 <C>      <C>     <C>      <C>     <C>      <C>     <C>   <C>    <C>      <C>
    Bell Canada                                     4,532    4,314   4,368    4,275   17,489   4,536   4,326 4,239  4,101    17,202
    Bell Globemedia                                 379      273     326      312     1,290    354     246   297    306      1,203
    BCE Emergis                                     131      135     142      132     540      181     173   159    143      656
    BCE Ventures                                    282      258     261      263     1,064    287     262   261    234      1,044
    Corporate and other (including inter-segment    (152)    (158)   (157)    (148)   (615)    (245)   (189) (189)  (142)    (765)
    eliminations)
    Revenues                                        5,172    4,822   4,940    4,834   19,768   5,113   4,818 4,767  4,642    19,340

    EBITDA (3)
    Bell Canada                                     1,788    1,891   1,850    1,760   7,289    1,704   1,818 1,719  1,635    6,876
    Bell Globemedia                                 72       17      58       33      180      43      (6)   41     30       108
    BCE Emergis                                     20       19      11       (20)    30       35      35    31     26       127
    BCE Ventures                                    72       67      73       77      289      88      73    72     57       290
    Corporate and other (including inter-segment    (39)     (42)    (47)     (38)    (166)    (43)    (43)  (39)   (34)     (159)
    eliminations)
    EBITDA                                          1,913    1,952   1,945    1,812   7,622    1,827   1,877 1,824  1,714    7,242

    Net earnings (loss) applicable to common shares
    Bell Canada
    Bell Canada Holdings (including                 1,468    367     397      361     2,593    (39)    317   370    206      854
    Aliant)
    Bell ExpressVu                                  (61)     (31)    (38)     (40)    (170)    (62)    (45)  (40)   (44)     (191)
    Total Bell Canada                               1,407    336     359      321     2,423    (101)   272   330    162      663
    Bell Globemedia                                 (493)    (11)    11       1       (492)    (25)    (52)  (40)   (33)     (150)
    BCE Emergis                                     7        19      (62)     (15)    (51)     (45)    (70)  (75)   (91)     (281)
    BCE Ventures                                    32       16      59       24      131      41      137   24     68       270
    Corporate and other (including inter-segment    (134)    8       (61)     15      (172)    26      34    20     2,925    3,005
    eliminations) Discontinued operations
    BCI                                             (125)    -       (191)    -       (316)    (21)    (260) (81)   115      (247)
    Teleglobe                                       1,042    -       (104)    (45)    893      (174)   (205) (172)  (2,259)  (2,810)
    Total discontinued operations                   917      -       (295)    (45)    577      (195)   (465) (253)  (2,144)  (3,057)
    Net earnings (loss) applicable to common shares 1,736    368     11       301     2,416    (299)   (144) 6      887      450

</TABLE>

See accompanying notes on pages 20-22

<PAGE>

<TABLE>
<CAPTION>


                                                                                                           Bell Canada (1a) (2)

Consolidated Statements of Operations (unaudited)

                                                               Three months                     Twelve months
                                                               ended December 31                ended December 31
(Millions of dollars, except where otherwise indicated)        2002        2001      % change   2002       2001      % change

Revenues
<S>                                                            <C>         <C>       <C>        <C>        <C>       <C>
Local and access                                               1,574       1,654     (4.8%)     6,155      6,360     (3.2%)
Long distance                                                  635         647       (1.9%)     2,579      2,651     (2.7%)
Wireless                                                       570         493       15.6%      2,167      1,839     17.8%
Data (8)                                                       1,035       979       5.7%       3,806      3,526     7.9%
Other (8)                                                      542         630       (14.0%)    2,144      2,352     (8.8%)
Total Bell Canada Holdings (including Aliant)                  4,356       4,403     (1.1%)     16,851     16,728    0.7%
Bell ExpressVu                                                 176         133       32.3%      638        474       34.6%
Total operating revenues                                       4,532       4,536     (0.1%)     17,489     17,202    1.7%
Operating expenses
Bell Canada Holdings (including Aliant)                        2,525       2,629     (4.0%)     9,415      9,660     (2.5%)
Bell ExpressVu                                                 219         203       7.9%       785        666       17.9%
Total operating expenses                                       2,744       2,832     (3.1%)     10,200     10,326    (1.2%)
EBITDA (3)
Bell Canada Holdings (including Aliant)                        1,831       1,774     3.2%       7,436      7,068     5.2%
Bell ExpressVu                                                 (43)        (70)      38.6%      (147)      (192)     23.4%
Total EBITDA                                                   1,788       1,704     4.9%       7,289      6,876     6.0%
Amortization expense                                           (749)       (727)     (3.0%)     (2,935)    (2,934)   (0.0%)
Restructuring and other charges                                (302)       (737)     59.0%      (675)      (976)     30.8%
Net benefit plans credit                                       9           31        (71.0%)    38         128       (70.3%)
Interest expense to third parties                              (261)       (236)     (10.6%)    (998)      (947)     (5.4%)
Interest expense to BCE                                        (40)        (42)      4.8%       (147)      (171)     14.0%
Impairment charge                                              (55)        -         N.M.       (55)       -         N.M.
Equity income (loss) and other                                 2,282       (57)      N.M.       2,468      253       N.M.
Earnings before income taxes
and non-controlling interest                                   2,672       (64)      N.M.       4,985      2,229     N.M.
Income taxes                                                   (783)       (14)      N.M.       (1,637)    (866)     (89.0%)
Non-controlling interest                                       (22)        (2)       N.M.       (141)      (49)      N.M.
Net earnings                                                   1,867       (80)      N.M.       3,207      1,314     N.M.
Dividends on preferred shares                                  (15)        (15)      0.0%       (63)       (55)      (14.5%)
Interest on equity settled notes                               (15)        (15)      0.0%       (59)       (59)      0.0%
Net earnings applicable to common                              1,837       (110)     N.M.       3,085      1,200     N.M.

The following non-recurring items are included in net earnings:
Restructuring charges                                          (190)       (397)                (426)      (540)
Net gains on sale of investments and dilution gains            1,655       (39)                 1,860      376
Goodwill amortization                                          -           (21)                 -          (83)
Foreign exchange restatement                                   -           (2)                  -          (40)
Impairment charge                                              (29)        -                    (29)       -
Other                                                          (4)         24                   (22)       24
Total                                                          1,432       (435)                1,383      (263)

Other information

Net capital expenditures                                       981         1,099     (10.7%)    3,428      4,632     (26.0%)

Net debt, preferreds and equity settled notes
                                                                           Bell      BCH                   Bell
At December 31, 2002                                                       Canada    Corporate  Aliant     ExpressVu Total

Bank indebtedness / (cash and cash equivalents)                            73        -          (264)      (8)       (199)
Long term debt                                                             9,000     -          1,273      1         10,274
Debt due within one year                                                   1,651     -          234        -         1,885
Debt due to BCH within one year                                            978       (978)                           -
Net debt                                                                   11,702    (978)      1,243      (7)       11,960
Preferred shares                                                           1,100     -          172        -         1,272
Redeemable preferred shares to BCE                                         -         1,333      -          -         1,333
Equity settled notes                                                       2,068     (2,068)    -          -         -
Equity settled notes due to BCE                                            -         1,256      -          -         1,256
Senior debt due to BCE                                                     (497)     1,985      -          -         1,488
Equity settled notes due to SBC                                            -         314        -          -         314
Net debt, preferreds and equity settled notes                              14,373    1,842      1,415      (7)       17,623
N.M.: not meaningful
</TABLE>

See accompanying notes on pages 20-22
<PAGE>

<TABLE>
<CAPTION>


                                                                                                               Bell Canada (1a) (2)
Consolidated Statements of Operations (unaudited) - Historical trend
                                                                                    Total                                    Total
(Millions of dollars, except where otherwise      Q4 02    Q3 02      Q2 02  Q1 02   2002     Q4 01   Q3 01    Q2 01   Q1 01  2001
indicated)

Revenues
<S>                                               <C>      <C>        <C>    <C>     <C>      <C>     <C>      <C>     <C>    <C>
Local and access                                 1,574    1,526      1,531  1,524   6,155    1,654   1,635    1,590   1,481  6,360
Long distance                                    635      651        645    648     2,579    647     663      645     696    2,651
Wireless                                         570      561        542    494     2,167    493     490      447     409    1,839
Data (8)                                         1,035    917        939    915     3,806    979     874      871     802    3,526
Other (8)                                        542      503        556    543     2,144    630     547      571     604    2,352
Total Bell Canada Holdings (including Aliant)    4,356    4,158      4,213  4,124   16,851   4,403   4,209    4,124   3,992  16,728
Bell ExpressVu                                   176      156        155    151     638      133     117      115     109    474
Total operating revenues                         4,532    4,314      4,368  4,275   17,489   4,536   4,326    4,239   4,101  17,202
Operating expenses
Bell Canada Holdings (including Aliant)          2,525    2,230      2,334  2,326   9,415    2,629   2,346    2,371   2,314  9,660
Bell ExpressVu                                   219      193        184    189     785      203     162      149     152    666
Total operating expenses                         2,744    2,423      2,518  2,515   10,200   2,832   2,508    2,520   2,466  10,326
EBITDA (3)
Bell Canada Holdings (including Aliant)          1,831    1,928      1,879  1,798   7,436    1,774   1,863    1,753   1,678  7,068
Bell ExpressVu                                   (43)     (37)       (29)   (38)    (147)    (70)    (45)     (34)    (43)   (192)
Total EBITDA                                     1,788    1,891      1,850  1,760   7,289    1,704   1,818    1,719   1,635  6,876
Amortization expense                             (749)    (721)      (754)  (711)   (2,935)  (727)   (737)    (753)   (717)  (2,934)
Restructuring and other charges                  (302)    (79)       (294)  -       (675)    (737)   -        -       (239)  (976)
Net benefit plans credit                         9        10         11     8       38       31      28       34      35     128
Interest expense to third parties                (261)    (248)      (252)  (237)   (998)    (236)   (236)    (242)   (233)  (947)
Interest expense to BCE                          (40)     (42)       (24)   (41)    (147)    (42)    (42)     (43)    (44)   (171)
Impairment charge                                (55)     -          -      -       (55)     -       -        -       -      -
Equity income (loss) and other                   2,282    (33)       227    (8)     2,468    (57)    (81)     68      323    253
Earnings before income taxes and
non-controlling interest                         2,672    778        764    771     4,985    (64)    750      783     760    2,229
Income taxes                                     (783)    (308)      (250)  (296)   (1,637)  (14)    (361)    (296)   (195)  (866)
Non-controlling interest                         (22)     (38)       (46)   (35)    (141)    (2)     (14)     (32)    (1)    (49)
Net earnings                                     1,867    432        468    440     3,207    (80)    375      455     564    1,314
Dividends on preferred shares                    (15)     (16)       (16)   (16)    (63)     (15)    (15)     (13)    (12)   (55)
Interest on equity settled notes                 (15)     (14)       (16)   (14)    (59)     (15)    (15)     (15)    (14)   (59)
Net earnings applicable to common                1,837    402        436    410     3,085    (110)   345      427     538    1,200

</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                                                                    Total                                    Total
                                                  Q4 02    Q3 02      Q2 02  Q1 02   2002     Q4 01   Q3 01    Q2 01   Q1 01  2001
The following non-recurring items are included in net earnings:
<S>                                               <C>      <C>        <C>            <C>      <C>                      <C>    <C>
Restructuring charges                             (190)    (45)       (191)  -       (426)    (397)   -        -       (143)  (540)
Net gains on sale of investments and dilution     1,655    -          205    -       1,860    (39)    5        10      400    376
gains
Goodwill amortization                             -        -          -      -       -        (21)    (21)     (21)    (20)   (83)
Foreign exchange restatement                      -        -          -      -       -        (2)     (38)     49      (49)   (40)
Impairment charge                                 (29)     -          -      -       (29)     -       -        -       -      -
Other                                             (4)      -          (18)   -       (22)     24      2        (1)     (1)    24
Total                                             1,432    (45)       (4)    -       1,383    (435)   (52)     37      187    (263)


Other information

Net capital expenditures                          981      839        832    776     3,428    1,099   896      941     1,696  4,632
</TABLE>


See accompanying notes on pages 20-22

<PAGE>


<TABLE>
<CAPTION>

                                                                                             Bell Canada  (1a) (2)
Operating Statistics*
                                                                Three months                 Twelve months
                                                                ended December 31            ended December 31
                                                                2002        2001   % change  2002     2001    % change
Wireline
Local
Network access services (k)
Residential                                                                                  8,573    8,634   (0.7%)
Business                                                                                     4,581    4,662   (1.7%)
Total network access service                                                                 13,154   13,296  (1.1%)

Estimated Local market share (%) - Bell Canada only
Residential (6)                                                                              97.9%    99.3%   (1.4 pts.)
Business (7)                                                                                 91.3%    91.9%   (0.6 pts.)
Total estimated local market share                                                           95.5%    96.4%   (0.9 pts.)

<S>                          <C>                                <C>         <C>    <C>       <C>      <C>     <C>
SmartTouch feature revenues  ($M)                               231         230    0.4%      923      888     3.9%

Long Distance
Conversation minutes (M)                                        5,000       4,804  4.1%      19,034   18,200  4.6%
Average revenue per minute                                      0.120       0.124  (3.2%)    0.120    0.132   (9.1%)
Estimated market share (% based on revenues) - Bell Canada only                              63.1%    63.6%   (0.5 pts)
Data
Data revenues ($M) (8)
Legacy                                                          486         545    (10.8%)   1,864    2,143   (13.0%)
Non-Legacy                                                      549         434    26.5%     1,942    1,383   40.4%
                                                                1,035       979    5.7%      3,806    3,526   7.9%
Equivalent access lines (9) (k) - Bell Canada only
Digital equivalent access lines                                                              3,683    3,713   (0.8%)
Broadband equivalent access lines                                                            12,568   9,109   38.0%

Internet subscribers (10) (k)
DSL High Speed Internet subscribers (k)                                                      1,110    757     46.6%
Dial-up Internet subscribers (k)                                                             957      1,019   (6.1%)
                                                                                             2,067    1,776   16.4%
Wireless
Cellular & PCS Net activations (k)
Pre-paid                                                        22          88     (75.0%)   13       247     (94.7%)
Post-paid                                                       196         186    5.4%      452      443     2.0%
                                                                218         274    (20.4%)   465      690     (32.6%)
Cellular & PCS subscribers (k)
Pre-paid                                                                                     979      966     1.3%
Post-paid                                                                                    2,940    2,488   18.2%
                                                                                             3,919    3,454   13.5%

Average revenue per unit ($/month)                              47          46     2.2%      46       46      0.0%
Pre-paid                                                        10          12     (16.7%)   12       13      (7.7%)
Post-paid                                                       60          59     1.7%      59       58      1.7%

Churn (%) (average per month)                                   1.7%        1.7%   0.0 pts   1.6%     1.5%    0.1 pts
Pre-paid                                                        2.6%        1.5%   1.1 pts   2.0%     1.4%    0.6 pts
Post-paid                                                       1.4%        1.8%   (0.4) pts 1.5%     1.5%    0.0 pts


Usage per subscriber (min/month)                                212         190    11.6%     203      182     11.5%
Cost of acquisition (11) ($/sub)                                330         350    (5.7%)    404      375     7.7%

Browser hits (M)                                                99          103    (3.9%)    392      229     71.2%
Paging
Subscribers (k)                                                                              639      715     (10.6%)
Average revenue per unit ($/month)                              10          10     0.0%      10       10      0.0%
Bell ExpressVu (Direct-to-Home Television)
Total subscribers (k)                                                                        1,304    1,069   22.0%
Net subscriber activations (k)                                  83          139    (40.3%)   235      347     (32.3%)
Average revenue per subscriber ($/month)                        43          44     (2.3%)    44       45      (2.2%)
Cost of acquisition ($/sub)                                     667         710    (6.1%)    690      676     2.1%
Churn (%) (per quarter, year-to-date)                           2.7%        2.1%   0.6 pts   11.8%    10.3%   1.5 pts
*Operating statistics are reported on a consolidated basis, except where
otherwise noted.
N.M.: not meaningful
</TABLE>

See accompanying notes on pages 20-22
<PAGE>

<TABLE>
<CAPTION>

                                                                                                           Bell Canada (1a) (2)

Operating Statistics* - Historical trend
                                                                                   Total                                 Total
                                                 Q4 02      Q3 02   Q2 02   Q1 02   2002   Q4 01   Q3 01   Q2 01   Q1 01  2001
Wireline
Local
Network access services (k)
<S>                                              <C>        <C>     <C>     <C>            <C>     <C>     <C>     <C>
Residential                                      8,573      8,580   8,532   8,613          8,634   8,648   8,578   8,653
Business                                         4,581      4,607   4,630   4,633          4,662   4,694   4,684   4,685
Total network access service                     13,154     13,187  13,162  13,246         13,296  13,342  13,262  13,338

Estimated Local market share (%) - Bell Canada
only
Residential (6)                                  97.9%      98.0%   98.3%   98.7%          99.3%   99.4%   99.5%   99.6%
Business (7)                                     91.3%      91.5%   91.6%   91.8%          91.9%   91.9%   92.1%   92.8%
Total estimated local market share               95.5%      95.7%   95.9%   96.2%          96.4%   96.6%   96.8%   97.1%

SmartTouch feature revenues ($M)                 231        230     230     232     923    230     226     224     208    888

Long Distance
Conversation minutes (M)                         5,000      4,660   4,725   4,649   19,034 4,804   4,400   4,498   4,498  18,200
Average revenue per minute                       0.120      0.127   0.120   0.122   0.120  0.124   0.136   0.132   0.135  0.132
Estimated market share (% based on revenues)
Bell Canada only                                 63.1%      64.6%   62.9%   61.8%          63.6%   64.1%   63.2%   61.5%
Data
Data revenues ($M) (8)
Legacy                                           486        451     453     474     1,864  545     538     534     526    2,143
Non-Legacy                                       549        466     486     441     1,942  434     336     337     276    1,383
                                                 1,035      917     939     915     3,806  979     874     871     802    3,526

Equivalent access lines (9) (k) - Bell Canada
only
Digital equivalent access lines                  3,683      3,645   3,833   3,815          3,713   3,734   3,599   3,445
Broadband equivalent access lines                12,568     11,265  10,176  9,431          9,109   6,836   6,359   5,249

Internet subscribers (10) (k)
DSL High Speed Internet subscribers (k)          1,110      1,002   909     866            757     625     529     466
Dial-up Internet subscribers (k)                 957        985     1,031   1,036          1,019   1,002   968     946
                                                 2,067      1,987   1,940   1,902          1,776   1,627   1,497   1,412
Wireless
Cellular & PCS Net activations (k)
Pre-paid                                         22         (1)     (26)    18      13     88      48      53      58     247
Post-paid                                        196        63      117     76      452    186     103     98      56     443
                                                 218        62      91      94      465    274     151     151     114    690
Cellular & PCS subscribers (k)
Pre-paid                                         979        957     958     984            966     878     830     777
Post-paid                                        2,940      2,744   2,681   2,564          2,488   2,302   2,199   2,101
                                                 3,919      3,701   3,639   3,548          3,454   3,180   3,029   2,878

Average revenue per unit ($/month)               47         47      46      43      46     46      49      46      44     46
Pre-paid                                         10         12      13      11      12     12      14      12      13     13
Post-paid                                        60         60      59      56      59     59      62      59      55     58

Churn (%) (average per month)                    1.7%       1.7%    1.5%    1.5%    1.6%   1.7%    1.5%    1.4%    1.3%   1.5%
Pre-paid                                         2.6%       2.0%    1.8%    1.7%    2.0%   1.5%    1.4%    1.4%    1.3%   1.4%
Post-paid                                        1.4%       1.6%    1.4%    1.5%    1.5%   1.8%    1.5%    1.4%    1.3%   1.5%


Usage per subscriber (min/month)                 212        206     205     181     203    190     184     190     161    182
Cost of acquisition (11) ($/sub)                 330        428     448     454     404    350     395     385     380    375

Browser hits (M)                                 99         87      94      112     392    103     56      42      28     229
Paging
Subscribers (k)                                  639        660     680     694            715     733     755     759
Average revenue per unit ($/month)               10         10      10      10      10     10      10      10      11     10
Bell ExpressVu (Direct-to-Home Television)
Total subscribers (k)                            1,304      1,221   1,176   1,145          1,069   930     847     796
Net subscriber activations (k)                   83         45      31      76      235    139     83      51      74     347
Average revenue per subscriber ($/month)         43         43      44      45      44     44      44      46      47     45
Cost of acquisition ($/sub)                      667        630     769     718     690    710     674     623     612    676
Churn (%) (per quarter, year-to-date)            2.7%       3.6%    3.1%    2.5%    11.8%  2.1%    3.1%    2.6%    2.4%   10.3%
* Operating statistics are reported on a consolidated basis, except where
otherwise noted.
</TABLE>

See accompanying notes on pages 20-22

<PAGE>

<TABLE>
<CAPTION>

                                                                                                      Bell Globemedia (1b) (2)

Statements of Operations - Selected data                                     Three months             Twelve months
                                                                             ended December 31        ended December 31
(Millions of dollars, except otherwise                                       2002     2001 % change   2002       2001   % change
indicated)

Revenues
<S>                                                                          <C>      <C>     <C>     <C>        <C>    <C>
Advertising                                                                  284      263     8.0%    913        860    6.2%
Subscriber                                                                   72       67      7.5%    287        259    10.8%
Production and Sundry                                                        23       24      (4.2%)  90         84     7.1%
Total Revenues                                                               379      354     7.1%    1,290      1,203  7.2%

EBITDA (3)                                                                   72       43      67.4%   180        108    66.7%

</TABLE>


<TABLE>
<CAPTION>

Statements of Operations - Selected data - Historical trend

                                                                                  Total                                      Total
(Millions of dollars, except where otherwise    Q4 02    Q3 02   Q2 02   Q1 02    2002     Q4 01   Q3 01   Q2 01      Q1 01  2001
indicated)

Revenues
<S>                                             <C>      <C>     <C>     <C>      <C>      <C>     <C>     <C>        <C>    <C>
Advertising                                     284      180     230     219      913      263     163     213        221    860
Subscriber                                      72       72      70      73       287      67      64      63         65     259
Production and Sundry                           23       21      26      20       90       24      19      21         20     84
Total Revenues                                  379      273     326     312      1,290    354     246     297        306    1,203

EBITDA (3)                                      72       17      58      33       180      43      (6)     41         30     108
N.M.: not meaningful
</TABLE>

See accompanying notes on pages 20-22

<PAGE>

<TABLE>
<CAPTION>

                                                                                                    BCE Emergis (1c) (2)

Statements of Operations - Selected data

                                                                          Three months              Twelve months
                                                                          ended December 31         ended December 31
(Millions of dollars, except where otherwise                              2002     2001   % change  2002     2001    % change
indicated)

Revenues:
<S>                                                                       <C>      <C>    <C>       <C>      <C>     <C>
eHealth Solutions Group                                                   63       83     (24.1%)   277      307     (9.8%)
BCE Emergis - Canada                                                      59       82     (28.0%)   236      296     (20.3%)
BCE Emergis - U.S.A.                                                      9        16     (43.8%)   27       53      (49.1%)
Total Revenues                                                            131      181    (27.6%)   540      656     (17.7%)
Operating expenses                                                        111      146    (24.0%)   510      529     (3.6%)
EBITDA (3)                                                                20       35     (42.9%)   30       127     (76.4%)

Revenues by geographic mix

Canada                                                                    77       111    (30.6%)   317      386     (17.9%)
United States                                                             54       70     (22.9%)   223      269     (17.1%)
Other                                                                     -        -      N.M.      -        1       N.M.
                                                                          131      181    (27.6%)   540      656     (17.7%)
</TABLE>

<TABLE>
<CAPTION>

Statements of Operations - Selected data      - Historical trend

                                                                                   Total                                      Total
(Millions of dollars, except otherwise        Q4 02     Q3 02    Q2 02    Q1 02    2002     Q4 01  Q3 01     Q2 01    Q1 01   2001
indicated)

Revenues:
<S>                                           <C>       <C>      <C>      <C>      <C>      <C>    <C>       <C>      <C>     <C>
eHealth Solutions Group                       63        70       77       67       277      83     77        77       70      307
BCE Emergis - Canada                          59        57       60       60       236      82     76        72       66      296
BCE Emergis - U.S.A.                          9         8        5        5        27       16     20        10       7       53
Total Revenues                                131       135      142      132      540      181    173       159      143     656
Operating expenses                            111       116      131      152      510      146    138       128      117     529
EBITDA (3)                                    20        19       11       (20)     30       35     35        31       26      127

Revenue by geographic mix

Canada                                        77        77       85       78       317      111    98        89       88      386
United States                                 54        58       57       54       223      70     74        70       55      269
Other                                         -         -        -        -        -        -      1         -        -       1
Total                                         131       135      142      132      540      181    173       159      143     656
N.M.: not meaningful
</TABLE>

See accompanying notes on pages 20-22

<PAGE>

<TABLE>
<CAPTION>

                                                                                                     BCE Ventures (1d) (2)

Statements of Operations - Selected data
                                                                          Three months               Twelve months
                                                                          ended December 31          ended December 31
(Millions of dollars, except otherwise                                    2002      2001   % change  2002     2001    % change
indicated)

Revenues
<S>                                                                       <C>       <C>    <C>       <C>      <C>     <C>
CGI                                                                       185       169    9.5%      709      657     7.9%
Telesat                                                                   95        96     (1.0%)    327      321     1.9%
Other                                                                     2         22     (90.9%)   28       66      (57.6%)
Total Revenues                                                            282       287    (1.7%)    1,064    1,044   1.9%
EBITDA (3)
CGI                                                                       26        30     (13.3%)   101      97      4.1%
Telesat                                                                   47        52     (9.6%)    184      178     3.4%
Other                                                                     (1)       6      N.M.      4        15      (73.3%)
Total EBITDA                                                              72        88     (18.2%)   289      290     (0.3%)
</TABLE>

<TABLE>
<CAPTION>

Statements of Operations - Selected data - Historical trend

                                                                                   Total                                       Total
(Millions of dollars, except where otherwise    Q4 02     Q3 02   Q2 02    Q1 02   2002      Q4 01  Q3 01     Q2 01    Q1 01   2001
indicated)

Revenues
<S>                                             <C>       <C>     <C>      <C>     <C>       <C>    <C>       <C>      <C>     <C>
CGI                                             185       177     176      171     709       169    166       168      154     657
Telesat                                         95        77      78       77      327       96     80        74       71      321
Other                                           2         4       7        15      28        22     16        19       9       66
Total Revenues                                  282       258     261      263     1,064     287    262       261      234     1,044
EBITDA (3)
CGI                                             26        22      28       25      101       30     21        24       22      97
Telesat                                         47        44      46       47      184       52     48        41       37      178
Other                                           (1)       1       (1)      5       4         6      4         7        (2)     15
Total EBITDA                                    72        67      73       77      289       88     73        72       57      290
N.M.: not meaningful

</TABLE>
See accompanying notes on pages 20-22

<PAGE>


Accompanying Notes (continued)

                                                              Accompanying Notes


(1) BCE is involved in the following operating businesses through its
subsidiaries: Bell Canada; Bell Globemedia; and BCE Emergis. All other
businesses are grouped in the BCE Ventures segment.


(a) Bell Canada segment

       ~   The Bell Canada segment provides connectivity to residential and
           business customers through wired and wireless voice and data
           communications, high-speed and wireless Internet access,
           direct-to-home satellite entertainment services, IP-broadband
           services, e-business solutions and local and long distance phone
           services.

           This segment reflects the consolidation of:

           ~    Bell Canada Holdings (BCH)
           ~    Aliant Inc.
           ~    ExpressVu Limited Partnership


(b) Bell Globemedia (BGM)

       ~   BGM is a Canadian multi-media company in the fields of broadcasting,
           print and the Internet. BGM provides integrated information,
           communications and entertainment services to Canadian customers and
           access to distinctive Canadian content. Through its various portal
           properties, Bell Globemedia also provides unique destinations for
           Internet users.

           This segment reflects the consolidation of:

           ~    CTV Inc.
           ~    The Globe and Mail
           ~    Bell Globemedia Interactive


(c) BCE Emergis

       ~   Represents BCE's 64.7% ownership in BCE Emergis Inc. BCE Emergis is a
           business-to-business (B2B) e-commerce infrastructure provider,
           strategically focusing on market leadership in the
           transaction-intensive eHealth and financial services sectors through
           its three strategic business units, eHealth Solutions Group, BCE
           Emergis - Canada and BCE Emergis - U.S.A.


(d) BCE Ventures

       ~   This segment reflects the proportionate consolidation of CGI Group
           Inc. (CGI), the consolidation of Telesat Canada (Telesat) and certain
           other BCE investments. CGI provides end-to-end information technology
           services and business solutions to customers in North America,
           Europe, Australia and Asia. Telesat delivers satellite business
           services primarily to North American companies.

(2) Effective January 1, 2002, BCE adopted the revised recommendations of CICA
Handbook Section 1650, Foreign Currency Translation. The standards require that
all unrealized translation gains and losses on assets and liabilities
denominated in foreign currencies be included in earnings for the

<PAGE>
Accompanying Notes (continued)

      year, including gains and losses on long-term monetary assets and
      liabilities, such as long-term debt, which were previously deferred and
      amortized on a straight-line basis over the remaining lives of the related
      items. These amendments were applied retroactively with restatement of
      prior periods.

      The CICA recently issued new Handbook Sections 1581, Business
      Combinations, and 3062, Goodwill and Other Intangible Assets. Effective
      July 1, 2001, the standards require that all business combinations be
      accounted for using the purchase method. Additionally, effective January
      1, 2002, goodwill and intangible assets with an indefinite life are no
      longer being amortized to earnings and will be assessed for impairment on
      an annual basis in accordance with the new standards, including a
      transitional impairment test whereby any resulting impairment was charged
      to opening retained earnings. BCE's management allocated its existing
      goodwill and intangible assets with an indefinite life to its reporting
      units and completed the assessment of the quantitative impact of the
      transitional impairment test on its financial statements. In 2002, an
      impairment of $8,180 million was charged to opening retained earnings as
      of January 1, 2002, as required by the transitional provisions of the new
      CICA Handbook section 3062, relating to impaired goodwill of reporting
      units within Teleglobe ($7,516 million), Bell Globemedia ($545 million)
      and BCE Emergis ($119 million).

      In the fourth quarter of 2002, BCE completed its annual assessment of
      goodwill of all of its reporting units, as required by the provisions of
      CICA Handbook section 3062, and recorded a charge to pretax earnings of
      $770 million ($530 million after non-controlling interest) relating to
      impaired goodwill of reporting units within Bell Globemedia ($715 million)
      and Aliant ($55 million). The goodwill was written down to its fair value,
      which was determined based on estimates of discounted future cash flows
      and corroborated by market-related values.

      The primary factor contributing to the impairment at Bell Globemedia is a
      revised estimate of future cash flows that reflect management's decision
      to scale back its trials in convergence products and other non-core
      businesses, as well as current market conditions for the media business.
      The write-down at Aliant was determined to be appropriate in light of
      current market conditions and the recent weak performance of its
      information technology line of business.

      BCE consolidated results have been restated to reflect the results of Bell
      Canada International (BCI) and Teleglobe as discontinued operations. In
      addition, BCE no longer consolidates BCI and Teleglobe.

(3) Alternative Earnings Measures

      EBITDA is defined as operating revenues less operating expenses and
      therefore reflects earnings before interest, taxes, depreciation and
      amortization expense, as well as any non-recurring items. BCE uses EBITDA,
      amongst other measures, to assess the operating performance of its
      on-going businesses. The term "EBITDA" does not have a standardized
      meaning prescribed under Canadian Generally Accepted Accounting Principles
      (GAAP) or U.S. GAAP and therefore may not be comparable to similarly
      titled measures presented by other publicly traded companies. EBITDA
      should not be construed as the equivalent of net cash flows from operating
      activities.

(4) Excludes taxes paid in 2002 relating to the settlement of short-term forward
contracts on approximately 47.9 million Nortel Networks common shares, as well
as the sale of an equivalent number of Nortel Networks common shares, which are
netted against proceeds from monetizations.

(5) Represents $355 million of Series P Retractable Preferred Shares, which are
reflected in other long-term liabilities on the financial statements.

(6) Bell Canada's local market shares reflect losses to facilities-based
competition only.

(7) Bell Canada restated its market estimates for the local business segment as
a result of new information made available by the CRTC. Prior periods have been
restated to reflect an increase in Bell Canada's local business market share.

<PAGE>
Accompanying Notes (continued)


(8) After reviewing its data revenue reporting methodologies, Bell Canada
reclassified previously reported data legacy revenues to other revenue. Prior
periods have been restated to reflect this reclassification.

      Legacy data revenues include digital transmission services such as
      MEGALINK TM, network access for Integrated Services Digital Network (ISDN)
      and Data, as well as, competitive network services and the sale of
      inter-networking equipment.

      Non-legacy data revenues include national and regional IP data, Internet,
      e-commerce and wireless data services.

(9) Digital equivalent access lines are derived by converting low capacity data
lines (DS-3 and lower) to the equivalent number of voice grade access lines.
Broadband equivalent access lines are derived by converting high capacity data
lines (higher than DS-3) to the equivalent number of voice grade access lines.

          Conversion factors
     DS-0                           1
     Basic ISDN                     2
     Primary ISDN                   23
     DS-1, DEA                      24
     DS-3                           672
     OC-3                           2,016
     OC-12                          8,064
     OC-48                          32,256
     OC-192                         129,024
     10BaseT                        155
     100 BaseT                      1,554
     Gigabit E                      15,544




(10) DSL High Speed Internet subscribers include consumer, business and
wholesale. Dial-up Internet subscribers include consumer and business.

(11) Includes allocation of selling costs from Bell Canada and excludes costs of
migrating from analog to digital. Cost of Acquisition (COA) per subscriber for
2002 is reflected on a consolidated basis. COA per subscriber for 2001 reflects
Bell Mobility only.

<PAGE>

           Cautionary Statement Concerning Forward-Looking Statements

Certain statements made in this document which describe BCE's or its
subsidiaries' intentions, expectations or predictions, including, without
limitation, financial guidance concerning revenues, EBITDA and EPS, expected
levels of productivity improvements and capital expenditures, and other
statements that are not historical facts, are forward-looking statements and are
subject to important risks, uncertainties and assumptions. The results or events
predicted in these statements could differ materially from actual results or
events.

Factors which could cause results or events to differ materially from current
expectations include, among other things:

- -    general economic conditions, the level of consumer confidence and spending
     and the state of capital markets;
- -    the impact of adverse changes in laws or regulations or of adverse
     regulatory initiatives or proceedings (including the outcome of the appeal
     of the CRTC's price cap decision);
- -    the level of demand, including in particular by the enterprise sector, and
     prices, for products and services in the telecom (e.g., data, IP broadband
     and voice services), media and e-business markets;
- -    BCE's and its subsidiaries' ability to manage costs, generate productivity
     improvements and decrease capital intensity while maintaining quality of
     service;
- -    the intensity of competitive activity, from both traditional and new
     competitors, and its resulting impact on the ability to retain existing,
     and attract new, customers, and the consequent impact on pricing
     strategies, revenues and net income;
- -    the risk of lower returns on pension plan assets requiring increased
     pension expenses and potentially pension plan funding;
- -    the financial condition and credit risk of customers and uncertainties
     regarding collectibility of receivables;
- -    the availability and cost of capital required to implement BCE's and its
     subsidiaries' financing plans and fund capital and other expenditures;
- -    the ability to deploy new technologies and offer new products and services
     rapidly and achieve market acceptance thereof;
- -    the ability to package and cross sell various services offered by the BCE
     group of companies;
- -    the ability of the BCE group companies' strategies to produce the expected
     benefits and growth prospects;
- -    stock market volatility;
- - the availability of, and ability to retain, key personnel; and - the final
outcome of pending or future litigation.

For additional information with respect to certain of these and other factors,
refer to the Safe Harbor Notice Concerning Forward-Looking Statements dated
December 18, 2002 filed by BCE with the U.S.

<PAGE>

Securities and Exchange Commission, under Form 6-K, and with the Canadian
securities commissions. The forward-looking statements contained in this
document represent BCE's and its subsidiaries' expectations as of January 29,
2003 and, accordingly, are subject to change after such date. However, BCE and
its subsidiaries disclaim any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise. Furthermore, forward-looking statements contained in this
document do not reflect the potential impact of any dispositions, monetizations,
mergers, acquisitions, other business combinations or other transactions that
may be announced after January 29, 2003.

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
