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<SEC-DOCUMENT>0001206212-06-000239.txt : 20061012
<SEC-HEADER>0001206212-06-000239.hdr.sgml : 20061012
<ACCEPTANCE-DATETIME>20061011182613
ACCESSION NUMBER:		0001206212-06-000239
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20061011
FILED AS OF DATE:		20061012
DATE AS OF CHANGE:		20061011

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:		061140813

	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>m33329ore6vk.htm
<DESCRIPTION>FORM 6-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e6vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 6-K</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>REPORT OF FOREIGN PRIVATE ISSUER</B></DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>Pursuant to Rule&nbsp;13a-16 or 15d-16 under<BR>
the Securities Exchange Act of 1934</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="font-size:12pt">For the month of: <B>October&nbsp;2006</B></FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><FONT style="font-size:12pt"><B>Commission File Number: 1-8481</B></FONT></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>BCE Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 0pt"><I>(Translation of Registrant&#146;s name into English)</I></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>1000, rue de La Gaucheti&#232;re Ouest, Bureau 3700, Montr&#233;al, Qu&#233;bec H3B 4Y7, (514)&nbsp;870-8777</B><BR>
<I>(Address of principal executive offices)</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the Registrant files or will file annual reports under cover of<BR>
Form 20-F or Form 40-F.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="80%">
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<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Form&nbsp;20-F&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form&nbsp;40-F&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#254;</FONT></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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&nbsp;12g3-2(b) under the
Securities Exchange Act of 1934.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="80%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Yes&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#254;</FONT></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If &#147;Yes&#148; is marked, indicate below the file number assigned to the Registrant in connection with
Rule&nbsp;12g3-2(b): 82-<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Notwithstanding any reference to BCE&#146;s Web site on the World Wide Web in the documents attached
hereto, the information contained in BCE&#146;s site or any other site on the World Wide Web referred to
in BCE&#146;s site is not a part of this Form 6-K and, therefore, is not filed with the Securities and
Exchange Commission.<BR>
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>BCE Inc.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><I>(signed) Patricia A. Olah<BR></I>
<DIV align="left"><DIV style="font-size: 3pt; margin-top: 0pt; width: 80%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
Patricia A. Olah<BR>
Corporate Secretary and Lead Governance Counsel<BR>
&nbsp;<BR>
&nbsp;<BR>
&nbsp;&nbsp;&nbsp;Date:&nbsp;October 11, 2006</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
</DIV>
<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>Form&nbsp;51-102F3</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 2pt"><B><I>Material Change Report</I></B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>PART 1</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>CONTENT OF MATERIAL CHANGE REPORT</B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;1 Name and Address of Company</B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">BCE Inc. (&#147;BCE&#148;)<BR>
1000<B>, </B>rue de La Gaucheti&#232;re Ouest, Bureau 3700<BR>
Montr&#233;al, Qu&#233;bec<BR>
H3B 4Y7
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;2 Date of Material Change</B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">October&nbsp;10, 2006.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;3 News Release</B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A press release announcing the material change referred to in this report was issued on
October&nbsp;11, 2006 and disseminated on newswires in Canada and the United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;4 Summary of Material Change</B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE announced its intention to eliminate its holding company operations, convert Bell Canada
into an income trust and make a tender offer for all of the outstanding preferred shares of BCE and
Bell Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;5 Full Description of Material Change</B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;10, 2006, the Boards of Directors of BCE and Bell Canada approved a plan to
eliminate BCE&#146;s holding company operations and convert Bell Canada into an income trust (referred
to herein as the &#147;Trust&#148;). The Trust will have an initial annual cash distribution of $2.55 per
unit, representing a targeted 2007 payout ratio of 85%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The income trust conversion and related transactions (referred to herein as the &#147;Arrangement&#148;)
will be carried out pursuant to a plan of arrangement under the <I>Canada Business Corporations Act</I>.
Under the Arrangement, each of the outstanding common shares of BCE will be exchanged for units in
the Trust on a one-for-one basis. In addition, BCE and Bell Canada will amalgamate together with
certain other subsidiaries to form a new company to be known as Bell Canada, and the preferred
shares of BCE and Bell Canada will become preferred shares of the resulting Bell Canada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE and Bell Canada also intend as part of the Arrangement to make cash offers to repurchase
all of the currently outstanding BCE and Bell Canada preferred shares. The offers will be
conditional only upon completion of the Arrangement. BCE and Bell Canada expect that the cash offer
prices for the current issued and outstanding preferred shares will be as follows:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="right"><B>&#149;</B></TD>
    <TD width="3%">&nbsp;</TD>
    <TD>$26.05 per share for the Series&nbsp;R First Preferred Shares of BCE;</TD>
</TR>

</TABLE>
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 2 -<!-- /Folio -->

<DIV style="font-family: 'Times New Roman',Times,serif">
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="right"><B>&#149;</B></TD>
    <TD width="3%">&nbsp;</TD>
    <TD>$25.60 per share for the currently redeemable Series&nbsp;S First Preferred Shares of
BCE;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="right"><B>&#149;</B></TD>
    <TD width="3%">&nbsp;</TD>
    <TD>$25.60 per share for the currently redeemable Series&nbsp;Y First Preferred Shares of
BCE;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="right"><B>&#149;</B></TD>
    <TD width="3%">&nbsp;</TD>
    <TD>$25.75 per share for the Series&nbsp;Z First Preferred Shares of BCE;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="right"><B>&#149;</B></TD>
    <TD width="3%">&nbsp;</TD>
    <TD>$25.65 per share for the Series&nbsp;AA First Preferred Shares of BCE;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="right"><B>&#149;</B></TD>
    <TD width="3%">&nbsp;</TD>
    <TD>$25.85 per share for the Series&nbsp;AC First Preferred Shares of BCE;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="right"><B>&#149;</B></TD>
    <TD width="3%">&nbsp;</TD>
    <TD>$25.60 per share for the currently redeemable Series&nbsp;15 Class&nbsp;A Preferred Shares of
Bell Canada;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="right"><B>&#149;</B></TD>
    <TD width="3%">&nbsp;</TD>
    <TD>$26.05 per share for the Series&nbsp;16 Class&nbsp;A Preferred Shares of Bell Canada;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="right"><B>&#149;</B></TD>
    <TD width="3%">&nbsp;</TD>
    <TD>$25.95 per share for the Series&nbsp;17 Class&nbsp;A Preferred Shares of Bell Canada;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="right"><B>&#149;</B></TD>
    <TD width="3%">&nbsp;</TD>
    <TD>$25.60 per share for the currently redeemable Series&nbsp;18 Class&nbsp;A Preferred Shares of
Bell Canada; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="right"><B>&#149;</B></TD>
    <TD width="3%">&nbsp;</TD>
    <TD>$26.25 per share for the Series&nbsp;19 Class&nbsp;A Preferred Shares of Bell Canada.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although there are currently no Series&nbsp;T First Preferred Shares outstanding, the Series&nbsp;S
First Preferred Shares are convertible on November&nbsp;1, 2006 into Series&nbsp;T First Preferred Shares.
BCE intends to also make a similar offer for any Series&nbsp;T First Preferred Shares that may be issued
upon conversion of the Series&nbsp;S First Preferred Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The aggregate amount of currently outstanding preferred shares of BCE and Bell Canada is
approximately $2.8&nbsp;billion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE has received an opinion from BMO Capital Markets, one of the financial advisors to BCE and
Bell Canada, that, as of the date hereof and subject to certain customary conditions including the
review by BMO Capital Markets of BCE&#146;s information circular and related documentation, the
consideration to be received by the common shareholders of BCE under the Arrangement is fair, from
a financial point of view, to the common shareholders of BCE. BCE and Bell Canada have also
received an opinion from BMO Capital Markets that, as of the date hereof, the consideration to be
offered to the preferred shareholders of BCE and Bell Canada under the tender offers to be made in
connection with the Arrangement is, in respect of each series of the preferred shares of BCE and
Bell Canada, fair, from a financial point of view, to such preferred shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Arrangement may trigger certain consent rights under certain series of bonds having a face
value of approximately $2&nbsp;billion issued by Bell Canada under the Bell Canada indenture dated July
1, 1976 and the (subordinated)&nbsp;Bell Canada indenture dated April&nbsp;17, 1996. Bell Canada intends to
redeem any callable portion of such debt (being the Series&nbsp;1 and Series&nbsp;2 bonds issued under the
(subordinated)&nbsp;Bell Canada indenture dated April&nbsp;17, 1996, and the Series&nbsp;EA, EZ and DW bonds
issued under the Bell Canada indenture dated July&nbsp;1, 1976) in accordance with the relevant call
provisions. For such bonds that are not redeemable (being the Series&nbsp;EC, ED, EG, EJ, EH, EO, ES
and EU bonds issued under the Bell Canada indenture dated July&nbsp;1, 1976), Bell Canada intends to
initiate discussions with holders of such bonds and make offers at a price based on a yield that is
flat to the relevant benchmark. All other existing bonds of BCE and Bell Canada will continue to
remain outstanding.
</DIV>


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<P align="center" style="font-size: 10pt"><!-- Folio -->- 3 -<!-- /Folio -->
</DIV>

<DIV style="font-family: 'Times New Roman',Times,serif">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Arrangement, new committed unsecured credit facilities in the amount of
$5.5&nbsp;billion have been arranged. Subject to certain conditions, these facilities will be available
upon closing of the Arrangement and will have maturities ranging from 18&nbsp;months to three years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Arrangement is conditional upon, among other things: (i)&nbsp;approval of the Arrangement by
BCE and Bell Canada shareholders in accordance with applicable law and court orders granted in
connection with the Arrangement, (ii)&nbsp;the receipt of all necessary governmental, regulatory and
stock exchange approvals and other security holder approvals and other consents, (iii)&nbsp;dissent
rights not being exercised in respect of more than a level of the outstanding common shares
approved by the BCE Board, and (iv)&nbsp;there being no change with respect to the income tax laws or
policies of Canada or to the telecommunications and other regulatory laws or policies of Canada
that would have a material adverse effect on the transactions contemplated by the Arrangement. In
addition, the Boards of each of BCE and Bell Canada will have the discretion to determine not to
proceed with the Arrangement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE and Bell Canada currently expect to hold a meeting of their common and preferred
shareholders to consider the Arrangement in January, and expect that, provided that all necessary
conditions to the Arrangement are satisfied, the Arrangement will be completed in the first quarter
of 2007. BCE and Bell Canada expect to mail an information circular and other applicable materials
with respect to the Arrangement in December.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Distributable Cash</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trust will make initial annual cash distributions of $2.55 per unit, with a 2007 target
payout ratio of 85%. The following table shows the calculation of the pro forma estimated cash
available for distribution of the Trust for the twelve-month period ending June&nbsp;30, 2006, assuming
that the Trust was in existence for this period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management has made assumptions in preparing this table that reflect the Trust&#146;s planned
course of action given management&#146;s judgment as to the most probable set of economic conditions.
This analysis is not a forecast or a projection of future results. The actual results of operations
of the Trust for any period will likely vary from the amounts set forth below, and such variation
could be material.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As the Trust currently intends to target a 2007 payout ratio of 85% of its distributable cash,
management views cash available for distribution as a valuable cash flow measure. Cash available
for distribution is not a recognized measure under Canadian generally accepted accounting
principles and does not have a standardized meaning. As a result, this measure as presented below
may not be comparable to similar measures presented by other issuers.
</DIV>


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<P align="center" style="font-size: 10pt"><!-- Folio -->- 4 -<!-- /Folio -->
</DIV>

<DIV style="font-family: 'Times New Roman',Times,serif">
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><I>(unaudited and in millions of dollars)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Twelve months</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>ended June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flow from Operating Activities<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,512</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Add:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Contributions to employee pension plans and other employee benefit plan payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">277</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Payments of restructuring and other items<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Changes in operating assets and liabilities<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">757</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other expenses excluding gains on investments<SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">995</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Current income taxes recovery</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(120</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">EBITDA<SUP style="font-size: 85%; vertical-align: text-top">(5)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,598</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">EBITDA contribution of Bell Globemedia<SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(325</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">EBITDA contribution of Telesat<SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(275</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">EBITDA contribution of Bell Aliant<SUP style="font-size: 85%; vertical-align: text-top">(8)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,480</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Add:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Intercompany adjustment between Telesat &#038; Bell ExpressVu<SUP style="font-size: 85%; vertical-align: text-top">(9)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjusted EBITDA<SUP style="font-size: 85%; vertical-align: text-top">(10)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,604</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Investment tax credits included in Adjusted EBITDA and capital expenditures<SUP style="font-size: 85%; vertical-align: text-top">(11)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(245</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Contributions to employee pension plans and other employee benefit plan payments<SUP style="font-size: 85%; vertical-align: text-top">(12)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(240</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Payment of interest<SUP style="font-size: 85%; vertical-align: text-top">(13)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(839</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash taxes<SUP style="font-size: 85%; vertical-align: text-top">(14)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other cash expenses<SUP style="font-size: 85%; vertical-align: text-top">(15)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(19</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Capital expenditures<SUP style="font-size: 85%; vertical-align: text-top">(16)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,354</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Non-controlling interest<SUP style="font-size: 85%; vertical-align: text-top">(17)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Estimated cash available for distribution to non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,899</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Add:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Distributions received from Bell Aliant<SUP style="font-size: 85%; vertical-align: text-top">(18)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">276</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Estimated cash available for distribution (excluding Telesat)<SUP style="font-size: 85%; vertical-align: text-top"> )</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,175</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><DIV align="left"><DIV style="font-size: 3pt; margin-top: 16pt; width: 10%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 1pt">Notes:

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(1)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>Assuming that the Trust was in existence for the period indicated. Amounts for the twelve
months ended June&nbsp;30, 2006 were determined by adding the relevant amounts for the twelve month
period ending December&nbsp;31, 2005 to the amounts for the six month period ending June&nbsp;30, 2006
and subtracting the amounts for the six month period ending June&nbsp;30, 2005. The results from</TD>
</TR>

</TABLE>
</DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 5 -<!-- /Folio -->
</DIV>


<DIV style="font-family: 'Times New Roman',Times,serif">
</DIV>


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>operations and cash flow from operating activities for this period are not necessarily
indicative of the results to be expected in any given fiscal year.</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(2)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>The Trust expects that to the extent that it incurs restructuring costs in the future, it
will fund such costs through net cash and/or debt balances. See Note 13.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(3)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>The Trust expects that to the extent required, future changes in operating assets and
liabilities will be funded through net cash and/or debt balances. See Note 13.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(4)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>Other expenses includes interest income, the premium on redemption of certain debt,
capitalized interest, securitization losses, income tax loss monetization charges, debt
restructuring costs, income or loss from equity investments, foreign currency gains or losses
and other.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(5)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>We define EBITDA (earnings before interest, taxes, depreciation and amortization) as
operating revenues less operating expenses, meaning it represents operating income before
amortization expense, net benefit plans cost, and restructuring and other items. The term
EBITDA does not have any standardized meaning according to GAAP. It is therefore unlikely to
be comparable to similar measures presented by other issuers. We use EBITDA, among other
measures, to assess the operating performance of our ongoing businesses without the effects of
amortization expense, net benefit plans cost, and restructuring and other items. We exclude
these items because they affect the comparability of our financial results and could
potentially distort the analysis of trends in business performance. We exclude amortization
expense and net benefit plans cost because they largely depend on the accounting methods and
assumptions an issuer uses, as well as non-operating factors such as the historical cost of
capital assets and the investment performance of an issuer&#146;s pension plans. Excluding
restructuring and other items does not imply they are necessarily non-recurring. EBITDA allows
us to compare our operating performance on a consistent basis. We believe that certain
investors and analysts use EBITDA to measure an issuer&#146;s ability to service debt and to meet
other payment obligations or as a common measurement to value issuers in the
telecommunications industry. The most comparable Canadian GAAP financial measure is operating
income.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(6)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>This adjustment reflects the reduction of BCE&#146;s interest in Bell Globemedia from 68.5% to
15%. All of Bell Globemedia has been excluded as a result of non-consolidation and to reflect
cash available for distribution from Bell Canada.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(7)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>Telesat has been excluded in order to reflect cash available for distribution from Bell
Canada. See Note 13.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(8)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>Bell Aliant has been excluded in order to reflect cash available for distribution from Bell
Canada. The effect of Bell Aliant on cash available for distribution is shown separately in
the table above. See Note 18.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(9)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>Intercompany revenue between Telesat and Bell ExpressVu. See Note 7.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(10)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>Adjusted EBITDA is EBITDA, adjusted to exclude Telesat, Bell Globemedia and Bell Aliant. See
Notes 6, 7 and 8. Adjusted EBITDA is not a recognized measure under GAAP and does not have a
standardized meaning. Therefore, Adjusted EBITDA may not be comparable to similar measures
presented by other issuers.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(11)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>Reflects investment tax credits recorded as a reduction in BCE&#146;s operating expenses and
capital expenditures. See Note 14.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(12)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>Reflects cash funding requirements for the twelve months ended June&nbsp;30, 2006 (&#147;LTM&#148;) for
pension plan and other employee benefit payments, net of normalized return on pension assets,</TD>
</TR>

</TABLE>
</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><!-- Folio -->- 6 -<!-- /Folio -->
</DIV>




<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>exclusive of Bell Aliant. It is expected that any additional cash funding required to
amortize Bell Canada&#146;s defined benefit plan solvency deficit would be funded through net
cash and/or debt balances. See Note 13.</TD>
</TR>
<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(13)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>Cash interest expense on pro forma third party debt at an estimated annual interest rate of
approximately 6.5%, and inclusive of securitization fees. Third party debt is exclusive of
Bell Aliant, Bell Globemedia and Telesat debt and reflects proceeds from the monetization of
Telesat.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(14)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>Reflects estimated LTM cash taxes payable by the Trust&#146;s subsidiaries (other than capital
taxes and net of investment tax credits), assuming total distributions by the Trust in the LTM
period of $2,070&nbsp;million.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(15)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>Reflects charitable donations not reflected in EBITDA.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(16)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>Reflects estimated annual capital expenditures, exclusive of Bell Aliant, Bell Globemedia and
Telesat.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(17)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>The non-controlling interest of BCE in Expertech is not available to the Trust.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(18)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>Assuming an annualized distribution by Bell Aliant at its current monthly levels and that BCE
retains its 44.7% interest in Bell Aliant.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Caution Regarding Forward Looking Statements</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain statements made in this material change report, including, but not limited to, the
intention to create the Trust, the expected timing of the completion of the Arrangement, the
intention of BCE and Bell Canada to repurchase their currently outstanding preferred shares, the
intention of Bell Canada to make an offer to certain bondholders, the expected structure of the
Arrangement, the initial annual cash distributions per unit and the targeted 2007 payout ratio, and
other statements that are not historical facts, constitute forward-looking information and are
subject to important risks, uncertainties and assumptions. Such risks and uncertainties are
identified and discussed under &#147;Material Risks&#148; below. Such assumptions are identified and
discussed in the next paragraph. As a result, we cannot guarantee that any forward-looking
statement will materialize and, accordingly, you are cautioned not to place undue reliance on these
forward-looking statements. Except as otherwise indicated by BCE, these statements do not reflect
the potential impact of any transaction, other than the proposed Arrangement, or of any
non-recurring or other special items that may be announced or that may occur after the date hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Material Assumptions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A number of assumptions were made by BCE in preparing the forward-looking information set out
in this material change report. In particular, the Trust&#146;s initial annual cash distributions per
unit in 2007 assume, among other things, cash available for distribution in 2007 of approximately
$2.1&nbsp;billion, a targeted 2007 payout ratio of 85%, an estimated pro forma number of outstanding
units of approximately 812&nbsp;million, distributions by Bell Aliant to Bell Canada (based on expected
2006 distributions) of approximately $275&nbsp;million and that BCE&#146;s and Bell Canada&#146;s conversion into
an income trust, and related transactions, will be completed on terms and at times substantially in
accordance with those set out in this material change report.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Trust&#146;s initial cash available for distribution in 2007 reflects a
preliminary business outlook for BCE, excluding Bell Aliant, that is based on certain anticipated
financial and operational trends and assumptions for 2007 that include EBITDA less currently
planned capital expenditures in the range of approximately $3.2&nbsp;billion to $3.4&nbsp;billion and
additional cash costs that include normalized pension contributions in the range of approximately
$250&nbsp;million to $275&nbsp;million, debt service payments in the range of approximately $825&nbsp;million to
$875&nbsp;million, and cash taxes in the range of approximately $50&nbsp;million to $75&nbsp;million. The cash
available for distribution is pro forma the monetization of Telesat. It also excludes Bell
Globemedia, which is now accounted for at cost following the reduction in our ownership position.
We have also assumed that key drivers of Bell Canada&#146;s EBITDA in 2007 would be the following trends
and assumptions: ARPU (average revenue per unit) increases and higher EBITDA flow-through in our
growth businesses, greater value derived from our traditional businesses as a result of minimizing
declines in our long distance services and the stabilization of reductions in our residential NAS,
and benefiting from our new cost structure.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These financial and operational trends and assumptions for 2007 represent a preliminary
business outlook for 2007 and not BCE&#146;s formal annual guidance for 2007. BCE&#146;s formal annual
guidance for 2007 will be released in December&nbsp;2006. Accordingly, since the targeted 2007 payout
ratio, as well as other related targets, are based on preliminary assumptions and targets for 2007
as compared to BCE&#146;s formal annual guidance, they are subject to greater uncertainty and,
consequently, there is a greater risk that the actual payout ratio and the actual level of cash
available for distribution will materially differ from BCE&#146;s current targets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In making these forward-looking statements, BCE has assumed that the various conditions
precedent to the Arrangement can be satisfied in accordance with their terms. Please refer to
&#147;Risks Relating to the Arrangement&#148; below for more details<B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Material Risks</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Risks Relating to the Arrangement</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The completion of the proposed Arrangement is subject to a number of conditions including
those described above. These conditions may not be satisfied, or may not be satisfied on terms
satisfactory to BCE or Bell Canada, in which case the proposed Arrangement could be modified,
restructured or terminated. In addition, the Boards of Directors of each of BCE and Bell Canada
have the discretion to determine not to proceed with the Arrangement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Risks Relating to the Trust</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trust will, for purposes of its income and cash available for distribution, be entirely
dependent on its operating affiliates. Although BCE has identified initial annual cash
distributions per unit and a targeted 2007 payout ratio, there can be no assurance regarding the
actual amounts of cash that will be distributed or the actual payout ratio. The actual amount of
cash distributions paid in respect of the units of the Trust will depend
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">upon numerous factors, all of which are susceptible to a number of risks and other factors
beyond the control of the Trust and BCE. Distributions are not guaranteed and will fluctuate with
the performance of the Trust&#146;s operating affiliates. The Trust will have the discretion to
establish cash reserves for the proper conduct of its business. Adding to these reserves in any
year would reduce the amount of distributable cash and, hence, cash available for distributions in
that year. In addition, the timing and amount of capital expenditures will directly affect the
amount of cash available for distribution of the Trust, and therefore distributions to unitholders.
Such distributions could need to be reduced, or possibly even eliminated, at times when it is
deemed necessary to make significant capital or other expenditures. Accordingly, there can be no
assurance regarding the actual levels of cash distributions by the Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>General Business Risks</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The forward-looking information contained in this material change report, including the
forward-looking information relating to the initial annual cash distributions per unit, the
targeted payout ratio and the cash available for distribution of the Trust, and the preliminary
financial and operational trends and assumptions for 2007 on which such targets are based, are also
subject to various risks that could adversely affect BCE&#146;s businesses and that could cause actual
results to differ materially from current expectations. For a description of such other risks,
please refer to the section entitled &#147;Assumptions Made In The Preparation Of Forward-Looking
Statements And Risks That Could Affect Our Business and Results&#148; contained in BCE&#146;s MD&#038;A (found on
pages 42 to 56 of the Bell Canada Enterprises 2005 Annual Report) for the year ended December&nbsp;31,
2005 dated March&nbsp;1, 2006 filed by BCE with the Canadian securities commissions (available on BCE&#146;s
website at <U>www.bce.ca</U> and on SEDAR at <U>www.sedar.com</U>), and with the U.S. Securities and Exchange
Commission (SEC)&nbsp;under Form 40-F (available on EDGAR at <U>www.sec.gov</U>), as updated in BCE&#146;s 2006
First Quarter MD&#038;A dated May&nbsp;2, 2006 and Second Quarter MD&#038;A dated August&nbsp;1, 2006 under the section
entitled &#147;Assumptions Made In The Preparation Of Forward-Looking Statements and Risks That Could
Affect Our Business And Results&#148;, filed by BCE with the Canadian Securities Commissions and with
the SEC under Form 6-K (available on the same websites referred to above), all of which is
incorporated by reference herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The forward-looking statements contained in this material change report represent BCE&#146;s
expectations as of October&nbsp;11, 2006 and, accordingly, are subject to change after such date.
However, BCE disclaims any intention and assume no obligation to update or revise any
forward-looking statement, whether as a result of new information or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;6 Reliance on subsection 7.1(2) or (3)&nbsp;of National Instrument 51-102</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;7 Omitted Information</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;8 Executive Officer</B>
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Martine Turcotte, Chief Legal Officer of BCE, is an executive officer of BCE and is
knowledgeable about the material change and this report. Ms.&nbsp;Turcotte can be contacted through the
Assistant Corporate Secretary at (514)&nbsp;786-3891.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9 Date of Report</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;October&nbsp;11, 2006.
</DIV>

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    <TD align="left"><B>BCE INC.</B><BR>
<BR>
<BR>
<BR>
<DIV align="left"><DIV style="font-size: 10pt; margin-top: 16pt; width: 50%; border-bottom: 1px solid #000000">(Signed)
Martine Turcotte&nbsp;</DIV>
</DIV>
<B>Martine Turcotte<BR>
Chief Legal Officer</B><BR>
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