Supplementary Financial Information

EX-3 4 supplemental.htm SUPPLEMENTARY FINANCIAL INFORMATION Supplementary Financial Information - Second Quarter 2007

EXHIBIT 3

BCE Inc. ⁽¹⁾
Consolidated Operational Data

		Q2			Q2								YTD			YTD
($ millions, except per share amounts) (unaudited)		2007			2006			$ change		% change			2007			2006			$ change		% change

Operating revenues		4,438			4,374			64		1.5	%		8,823			8,717			106			1.2	%
Operating expenses		(2,563	)		(2,507	)		(56	)	(2.2	%)		(5,106	)		(5,016	)		(90	)		(1.8	%)
Net benefit plan costs		(98	)		(134	)		36		26.9	%		(200	)		(270	)		70			25.9	%
EBITDA ⁽³⁾		1,777			1,733			44		2.5	%		3,517			3,431			86			2.5	%
EBITDA margin ⁽⁴⁾		*40.0*	%		39.6	%				0.4	pts		*39.9*	%		39.4	%					0.5	pts
Amortization expense		(807	)		(789	)		(18	)	(2.3	%)		(1,594	)		(1,545	)		(49	)		(3.2	%)
Restructuring and other items		(72	)		(50	)		(22	)	(44.0	%)		(108	)		(138	)		30			21.7	%
Operating income		898			894			4		0.4	%		1,815			1,748			67			3.8	%
Other (expense) income		(20	)		(36	)		16		44.4	%		112			(45	)		157			n.m.
Interest expense		(220	)		(227	)		7		3.1	%		(435	)		(459	)		24			5.2	%
Pre-tax earnings from continuing operations		658			631			27		4.3	%		1,492			1,244			248			19.9	%
Income taxes		(8	)		(153	)		145		94.8	%		(221	)		(322	)		101			31.4	%
Non-controlling interest		(88	)		(37	)		(51	)	n.m.			(183	)		(78	)		(105	)		n.m.
Earnings from continuing operations		562			441			121		27.4	%		1,088			844			244			28.9	%
Discontinued operations		138			53			85		n.m.			141			144			(3	)		(2.1	%)
Net earnings		700			494			206		41.7	%		1,229			988			241			24.4	%
Dividends on preferred shares		(33	)		(18	)		(15	)	(83.3	%)		(63	)		(35	)		(28	)		(80.0	%)
Net earnings applicable to common shares		667			476			191		40.1	%		1,166			953			213			22.4	%
Net earnings per common share - basic
Continuing operations	$	0.65		$	0.47		$	0.18		38.3	%	$	1.27		$	0.89		$	0.38			42.7	%
Discontinued operations	$	0.18		$	0.06		$	0.12		n.m.		$	0.18		$	0.16		$	0.02			12.5	%
Net earnings	$	0.83		$	0.53		$	0.30		56.6	%	$	1.45		$	1.05		$	0.40			38.1	%
Net earnings per common share - diluted
Continuing operations	$	0.65		$	0.47		$	0.18		38.3	%	$	1.27		$	0.89		$	0.38			42.7	%
Discontinued operations	$	0.18		$	0.06		$	0.12		n.m.		$	0.18		$	0.16		$	0.02			12.5	%
Net earnings	$	0.83		$	0.53		$	0.30		56.6	%	$	1.45		$	1.05		$	0.40			38.1	%
Dividends per common share	$	0.365		$	0.33		$	0.035		10.6	%	$	0.730		$	0.66		$	0.070			10.6	%
Average number of common shares outstanding - basic (millions)		803.2			896.4								804.6			908.4
Average number of common shares outstanding - diluted (millions)		805.5			896.7								805.8			908.8

The following items are included in net earnings:
Net gains on investments
Continuing operations		132			-			132		n.m.			235			1			234			n.m.
Discontinued operations		136			35			101		n.m.			137			115			22			19.1	%
Restructuring and other items		(46	)		(27	)		(19	)	(70.4	%)		(71	)		(85	)		14			16.5	%
Cost incurred to form the Bell Aliant Regional Communications Income Fund (Bell Aliant)		-			(14	)		14		n.m.			-			(14	)		14			n.m.
Total		222			(6	)		228		n.m.			301			17			284			n.m.
Impact on net earnings per share	$	0.27		$	(0.01	)	$	0.28		n.m.		$	0.37		$	0.02		$	0.35			n.m.
EPS before restructuring and other items, net gains on investments, and costs incurred to form Bell
Aliant ⁽³⁾	$	0.56		$	0.54		$	0.02		3.7	%	$	1.08		$	1.03		$	0.05			4.9	%

n.m.: not meaningful

BCE Inc. Supplementary Financial Information - Second Quarter 2007 Page 2

BCE Inc. ⁽¹⁾
Consolidated Operational Data - Historical Trend

		YTD									Total
($ millions, except per share amounts) (unaudited)		2007			Q2 07			Q1 07			2006			Q4 06			Q3 06			Q2 06			Q1 06

Operating revenues		8,823			4,438			4,385			17,656			4,532			4,407			4,374			4,343
Operating expenses		(5,106	)		(2,563	)		(2,543	)		(10,363	)		(2,770	)		(2,577	)		(2,507	)		(2,509	)
Net benefit plan costs		(200	)		(98	)		(102	)		(511	)		(123	)		(118	)		(134	)		(136	)
EBITDA		3,517			1,777			1,740			6,782			1,639			1,712			1,733			1,698
*EBITDA margin*		*39.9*	%		*40.0*	%		39.7	%		38.4	%		36.2	%		38.8	%		39.6	%		39.1	%
Amortization expense		(1,594	)		(807	)		(787	)		(3,128	)		(796	)		(787	)		(789	)		(756	)
Restructuring and other items		(108	)		(72	)		(36	)		(355	)		(91	)		(126	)		(50	)		(88	)
Operating income		1,815			898			917			3,299			752			799			894			854
Other income (expense)		112			(20	)		132			(188	)		(29	)		(114	)		(36	)		(9	)
Interest expense		(435	)		(220	)		(215	)		(940	)		(237	)		(244	)		(227	)		(232	)
Pre-tax earnings from continuing operations		1,492			658			834			2,171			486			441			631			613
Income taxes		(221	)		(8	)		(213	)		(74	)		329			(81	)		(153	)		(169	)
Non-controlling interest		(183	)		(88	)		(95	)		(217	)		(101	)		(38	)		(37	)		(41	)
Earnings from continuing operations		1,088			562			526			1,880			714			322			441			403
Discontinued operations		141			138			3			127			3			(20	)		53			91
Net earnings		1,229			700			529			2,007			717			302			494			494
Dividends on preferred shares		(63	)		(33	)		(30	)		(70	)		(18	)		(17	)		(18	)		(17	)
Net earnings applicable to common shares		1,166			667			499			1,937			699			285			476			477
Net earnings per common share - basic
Continuing operations	$	1.27		$	0.65		$	0.62		$	2.10		$	0.83		$	0.38		$	0.47		$	0.42
Discontinued operations	$	0.18		$	0.18		$	-		$	0.15		$	0.01		$	(0.02	)	$	0.06		$	0.10
Net earnings	$	1.45		$	0.83		$	0.62		$	2.25		$	0.84		$	0.36		$	0.53		$	0.52
Net earnings per common share - diluted
Continuing operations	$	1.27		$	0.65		$	0.62		$	2.10		$	0.83		$	0.38		$	0.47		$	0.42
Discontinued operations	$	0.18		$	0.18		$	-		$	0.15		$	0.01		$	(0.02	)	$	0.06		$	0.10
Net earnings	$	1.45		$	0.83		$	0.62		$	2.25		$	0.84		$	0.36		$	0.53		$	0.52
Dividends per common share	$	0.730		$	0.365		$	0.365		$	1.32		$	0.33		$	0.33		$	0.33		$	0.33
Average number of common shares outstanding - basic (millions)		804.6			803.2			806.0			861.4			811.6			818.8			896.4			920.5
Average number of common shares outstanding - diluted (millions)		805.8			805.5			806.6			861.6			812.1			819.0			896.7			920.9

The following items are included in net earnings:
Net gains (losses) on investments
Continuing operations		235			132			103			419			410			8			-			1
Discontinued operations		137			136			1			106			2			(11	)		35			80
Restructuring and other items		(71	)		(46	)		(25	)		(222	)		(66	)		(71	)		(27	)		(58	)
Cost incurred to form Bell Aliant		-			-			-			(42	)		-			(28	)		(14	)		-
Total		301			222			79			261			346			(102	)		(6	)		23
Impact on net earnings per share	$	0.37		$	0.27		$	0.10		$	0.30		$	0.40		$	(0.12	)	$	(0.01	)	$	0.03
EPS before restructuring and other items, net gains on investments, and costs incurred to form Bell Aliant	$	1.08		$	0.56		$	0.52		$	1.95		$	0.44		$	0.48		$	0.54		$	0.49

BCE Inc. Supplementary Financial Information - Second Quarter 2007 Page 3

BCE Inc. ⁽¹⁾
Segmented Data ⁽²⁾

	Q2		Q2						YTD		YTD
($ millions, except where otherwise indicated) (unaudited)	2007		2006		$ change		% change		2007		2006		$ change		% change

Revenues

Bell Wireline	2,654		2,676		(22	)	(0.8	%)	5,292		5,372		(80	)	(1.5	%)
Bell Wireless	1,006		937		69		7.4	%	1,958		1,818		140		7.7	%
Inter-segment eliminations	(12	)	(14	)	2		14.3	%	(23	)	(27	)	4		14.8	%
Total Bell	3,648		3,599		49		1.4	%	7,227		7,163		64		0.9	%
Bell Aliant	826		815		11		1.3	%	1,677		1,638		39		2.4	%
Telesat	161		120		41		34.2	%	283		238		45		18.9	%
Inter-segment eliminations	(197	)	(160	)	(37	)	(23.1	%)	(364	)	(322	)	(42	)	(13.0	%)
Total BCE Inc.	4,438		4,374		64		1.5	%	8,823		8,717		106		1.2	%

EBITDA

Bell Wireline	997		1,005		(8	)	(0.8	%)	1,971		2,001		(30	)	(1.5	%)
Margin	*37.6*	%	37.6	%			0.0	pts	*37.2*	%	37.2	%			0.0	pts
Bell Wireless	401		349		52		14.9	%	806		679		127		18.7	%
Margin	*39.9*	%	37.2	%			2.7	pts	*41.2*	%	37.3	%			3.9	pts
Total Bell	1,398		1,354		44		3.2	%	2,777		2,680		97		3.6	%
Margin	*38.3*	%	37.6	%			0.7	pts	*38.4*	%	37.4	%			1.0	pts
Bell Aliant	325		334		(9	)	(2.7	%)	641		657		(16	)	(2.4	%)
Margin	*39.3*	%	41.0	%			(1.7)	pts	*38.2*	%	40.1	%			(1.9)	pts
Telesat	93		70		23		32.9	%	160		139		21		15.1	%
Inter-segment eliminations	(39	)	(25	)	(14	)	(56.0	%)	(61	)	(45	)	(16	)	(35.6	%)
Total BCE Inc.	1,777		1,733		44		2.5	%	3,517		3,431		86		2.5	%
Margin	*40.0*	%	39.6	%			0.4	pts	*39.9*	%	39.4	%			0.5	pts

Operating income

Bell Wireline	390		449		(59	)	(13.1	%)	806		885		(79	)	(8.9	%)
Bell Wireless	291		239		52		21.8	%	586		457		129		28.2	%
Total Bell	681		688		(7	)	(1.0	%)	1,392		1,342		50		3.7	%
Bell Aliant	183		173		10		5.8	%	360		342		18		5.3	%
Telesat	60		39		21		53.8	%	98		78		20		25.6	%
Inter-segment eliminations	(26	)	(6	)	(20	)	n.m.		(35	)	(14	)	(21	)	n.m.
Total BCE Inc.	898		894		4		0.4	%	1,815		1,748		67		3.8	%

Capital expenditures

Bell Wireline	460		521		61		11.7	%	863		870		7		0.8	%
Capital Intensity ⁽⁵⁾	*17.3*	%	19.5	%			2.2	pts	*16.3*	%	16.2	%			(0.1)	pts
Bell Wireless	78		107		29		27.1	%	217		184		(33	)	(17.9	%)
Capital Intensity	*7.8*	%	11.4	%			3.6	pts	*11.1*	%	10.1	%			(1.0)	pts
Total Bell	538		628		90		14.3	%	1,080		1,054		(26	)	(2.5	%)
Capital Intensity	*14.7*	%	17.4	%			2.7	pts	*14.9*	%	14.7	%			(0.2)	pts
Bell Aliant	144		143		(1	)	(0.7	%)	259		255		(4	)	(1.6	%)
Telesat	63		86		23		26.7	%	128		129		1		0.8	%
Total BCE Inc.	745		857		112		13.1	%	1,467		1,438		(29	)	(2.0	%)
Capital Intensity	*16.8*	%	19.6	%			2.8	pts	*16.6*	%	16.5	%			(0.1)	pts

BCE Inc. Supplementary Financial Information - Second Quarter 2007 Page 4

BCE Inc. ⁽¹⁾
Segmented Data - Historical Trend ⁽²⁾

	YTD						Total
($ millions, except where otherwise indicated) (unaudited)	2007		Q2 07		Q1 07		2006		Q4 06		Q3 06		Q2 06		Q1 06

Revenues

Bell Wireline	5,292		2,654		2,638		10,763		2,745		2,646		2,676		2,696
Bell Wireless	1,958		1,006		952		3,827		1,016		993		937		881
Inter-segment eliminations	(23	)	(12	)	(11	)	(49	)	(11	)	(11	)	(14	)	(13	)
Total Bell	7,227		3,648		3,579		14,541		3,750		3,628		3,599		3,564
Bell Aliant	1,677		826		851		3,301		838		825		815		823
Telesat	283		161		122		479		128		113		120		118
Inter-segment eliminations	(364	)	(197	)	(167	)	(665	)	(184	)	(159	)	(160	)	(162	)
Total BCE Inc.	8,823		4,438		4,385		17,656		4,532		4,407		4,374		4,343

EBITDA

Bell Wireline	1,971		997		974		3,845		892		952		1,005		996
Margin	*37.2*	%	*37.6*	%	36.9	%	35.7	%	32.5	%	36.0	%	37.6	%	36.9	%
Bell Wireless	806		401		405		1,435		373		383		349		330
Margin	*41.2*	%	*39.9*	%	42.5	%	37.5	%	36.7	%	38.6	%	37.2	%	37.5	%
Total Bell	2,777		1,398		1,379		5,280		1,265		1,335		1,354		1,326
Margin	*38.4*	%	*38.3*	%	38.5	%	36.3	%	33.7	%	36.8	%	37.6	%	37.2	%
Bell Aliant	641		325		316		1,333		336		340		334		323
Margin	*38.2*	%	*39.3*	%	37.1	%	40.4	%	40.1	%	41.2	%	41.0	%	39.2	%
Telesat	160		93		67		263		63		61		70		69
Inter-segment eliminations	(61	)	(39	)	(22	)	(94	)	(25	)	(24	)	(25	)	(20	)
Total BCE Inc.	3,517		1,777		1,740		6,782		1,639		1,712		1,733		1,698
Margin	*39.9*	%	*40.0*	%	39.7	%	38.4	%	36.2	%	38.8	%	39.6	%	39.1	%

Operating income

Bell Wireline	806		390		416		1,494		269		340		449		436
Bell Wireless	586		291		295		998		265		276		239		218
Total Bell	1,392		681		711		2,492		534		616		688		654
Bell Aliant	360		183		177		699		195		162		173		169
Telesat	98		60		38		142		32		32		39		39
Inter-segment eliminations	(35	)	(26	)	(9	)	(34	)	(9	)	(11	)	(6	)	(8	)
Total BCE Inc.	1,815		898		917		3,299		752		799		894		854

Capital expenditures

Bell Wireline	863		460		403		1,931		609		452		521		349
Capital Intensity	*16.3*	%	*17.3*	%	15.3	%	17.9	%	22.2	%	17.1	%	19.5	%	12.9	%
Bell Wireless	217		78		139		480		163		133		107		77
Capital Intensity	*11.1*	%	*7.8*	%	14.6	%	12.5	%	16.0	%	13.4	%	11.4	%	8.7	%
Total Bell	1,080		538		542		2,411		772		585		628		426
Capital Intensity	*14.9*	%	*14.7*	%	15.1	%	16.6	%	20.6	%	16.1	%	17.4	%	12.0	%
Bell Aliant	259		144		115		517		131		131		143		112
Telesat	128		63		65		205		32		44		86		43
Total BCE Inc.	1,467		745		722		3,133		935		760		857		581
Capital Intensity	*16.6*	%	*16.8*	%	16.5	%	17.7	%	20.6	%	17.2	%	19.6	%	13.4	%

BCE Inc. Supplementary Financial Information - Second Quarter 2007 Page 5

Bell Wireline ^{(1) (2)}

	Q2		Q2				YTD		YTD
($ millions, except where otherwise indicated) (unaudited)	2007		2006		% change		2007		2006		% change
Bell Wireline
Local & access	910		945		(3.7	%)	1,820		1,906		(4.5	%)
Long distance	307		336		(8.6	%)	617		677		(8.9	%)
Data	880		877		0.3	%	1,773		1,764		0.5	%
Video	322		286		12.6	%	636		563		13.0	%
Equipment & other	194		190		2.1	%	364		376		(3.2	%)
Total external revenues	2,613		2,634		(0.8	%)	5,210		5,286		(1.4	%)
Inter-segment revenues	41		42		(2.4	%)	82		86		(4.7	%)
Total Bell Wireline operating revenue	2,654		2,676		(0.8	%)	5,292		5,372		(1.5	%)
Operating expenses	(1,657	)	(1,671	)	0.8	%	(3,321	)	(3,371	)	1.5	%
EBITDA	997		1,005		(0.8	%)	1,971		2,001		(1.5	%)
EBITDA Margin	*37.6*	%	37.6	%	0.0	pts	*37.2*	%	37.2	%	(0.0)	pts
Operating income	390		449		(13.1	%)	806		885		(8.9	%)

Capital expenditures	460		521		11.7	%	863		870		0.8	%
Capital intensity	17.3	%	19.5	%	2.2	pts	16.3	%	16.2	%	(0.1)	pts

Local
Network access services (k)
Residential	4,871		5,400		(9.8	%)	4,871		5,400		(9.8	%)
Business	3,653		3,546		3.0	%	3,653		3,546		3.0	%
Total	8,524		8,946		(4.7	%)	8,524		8,946		(4.7	%)

Long Distance (LD)
Conversation minutes (M)	3,249		3,353		(3.1	%)	6,489		6,621		(2.0	%)
Average revenue per minute ($)	0.088		0.092		(4.3	%)	0.089		0.094		(5.3	%)

ISP
High Speed Internet net activations (k)	29		25		16.0	%	72		62		16.1	%

High Speed Internet subscribers EOP ^(A) (k)	1,959		1,785		9.7	%	1,959		1,785		9.7	%

Video (DTH and VDSL)

Video EBITDA	68		56		21.4	%	123		97		26.8	%

Net subscriber activations EOP (k)	(7	)	19		n.m.		(3	)	31		n.m.
Total subscribers (k)	1,817		1,758		3.4	%	1,817		1,758		3.4	%
ARPU ⁽⁹⁾ ($/month)	58		54		7.4	%	58		53		9.4	%
Churn ⁽¹⁰⁾ (%) (average per month)	1.3	%	1.0	%	(0.3)	pts	1.2	%	1.0	%	(0.2)	pts

^(A)	The Q1 2007 beginning of year High Speed Internet subscriber base was increased by 18k to adjust for an overstatement in deactivations in Q4 2006.
	The Q2 2007 opening High Speed Internet subscriber base was decreased by 11k for non-revenue generating customers with no network usage in 2007..

BCE Inc. Supplementary Financial Information - Second Quarter 2007 Page 6

Bell Wireline - Historical Trend ^{(1) (2)}

	YTD						Total
($ millions, except where otherwise indicated) (unaudited)	2007		Q2 07		Q1 07		2006		Q4 06		Q3 06		Q2 06		Q1 06
Bell Wireline

Local & access	1,820		910		910		3,757		925		926		945		961
Long distance	617		307		310		1,327		316		334		336		341
Data	1,773		880		893		3,612		964		884		877		887
Video	636		322		314		1,150		298		289		286		277
Equipment & other	364		194		170		741		194		171		190		186
Total external revenues	5,210		2,613		2,597		10,587		2,697		2,604		2,634		2,652
Inter-segment revenues	82		41		41		176		48		42		42		44
Total Bell Wireline operating revenue	5,292		2,654		2,638		10,763		2,745		2,646		2,676		2,696
Operating expenses	(3,321	)	(1,657	)	(1,664	)	(6,918	)	(1,853	)	(1,694	)	(1,671	)	(1,700	)
EBITDA	1,971		997		974		3,845		892		952		1,005		996
EBITDA Margin	*37.2*	%	*37.6*	%	36.9	%	35.7	%	32.5	%	36.0	%	37.6	%	36.9	%
Operating income	806		390		416		1,494		269		340		449		436

Capital expenditures	863		460		403		1,931		609		452		521		349
Capital intensity	16.3	%	17.3	%	15.3	%	17.9	%	22.2	%	17.1	%	19.5	%	12.9	%

Local
Network access services (k)
Residential	4,871		4,871		5,030		5,161		5,161		5,310		5,400		5,562
Business	3,653		3,653		3,608		3,584		3,584		3,577		3,546		3,513
Total	8,524		8,524		8,638		8,745		8,745		8,887		8,946		9,075

Long Distance (LD)
Conversation minutes (M)	6,489		3,249		3,240		13,256		3,369		3,266		3,353		3,268
Average revenue per minute ($)	0.089		0.088		0.090		0.092		0.085		0.095		0.092		0.096

ISP
High Speed Internet net activations (k)	72		29		43		157		34		61		25		37

High Speed Internet subscribers EOP ^(A) (k)	1,959		1,959		1,941		1,880		1,880		1,846		1,785		1,760

Video (DTH and VDSL)
Video EBITDA	123		68		55		163		25		41		56		41

Net subscriber activations EOP (k)	(3	)	(7	)	4		93		32		30		19		12
Total subscribers (k)	1,817		1,817		1,824		1,820		1,820		1,788		1,758		1,739
ARPU ($/month)	58		58		57		54		55		54		54		53
Churn (%) (average per month)	1.2	%	1.3	%	1.1	%	1.0	%	1.0	%	1.0	%	1.0	%	0.9	%

^(A)	The Q1 2007 beginning of year High Speed Internet subscriber base was increased by 18k to adjust for an overstatement in deactivations in Q4 2006.
	The Q2 2007 opening High Speed Internet subscriber base was decreased by 11k for non-revenue generating customers with no network usage in 2007.

BCE Inc. Supplementary Financial Information - Second Quarter 2007 Page 7

Bell Wireless ^{(1) (2)}

	Q2		Q2				YTD		YTD
($ millions, except where otherwise indicated) (unaudited)	2007		2006		% change		2007		2006		% change

Bell Wireless

Revenue
Network	920		845		8.9	%	1,807		1,638		10.3	%
Equipment	74		82		(9.8	%)	130		159		(18.2	%)
Total external Bell Wireless revenues	994		927		7.2	%	1,937		1,797		7.8	%
Inter-segment	12		10		20.0	%	21		21		0.0	%
Total Bell Wireless operating revenues	1,006		937		7.4	%	1,958		1,818		7.7	%
Operating expenses	(605	)	(588	)	(2.9	%)	(1,152	)	(1,139	)	(1.1	%)
EBITDA	401		349		14.9	%	806		679		18.7	%
EBITDA margin (Total revenues)	*39.9*	%	37.2	%	2.7	pts	*41.2*	%	37.3	%	3.9	pts
EBITDA margin (Network revenues)	*43.6*	%	41.3	%	2.3	pts	*44.6*	%	41.5	%	3.1	pts
Operating Income	291		239		21.8	%	586		457		28.2	%
Capital expenditures	78		107		27.1	%	217		184		(17.9	%)
Capital intensity	7.8	%	11.4	%	3.6	pts	11.1	%	10.1	%	(1.0)	pts

Wireless gross activations ^(A) (k)	389		367		6.0	%	685		709		(3.4	%)
Post-paid	228		243		(6.2	%)	395		456		(13.4	%)


Wireless net activations ^(A) (k)	63		97		(35.1	%)	76		173		(56.1	%)
Post-paid	43		100		(57.0	%)	53		137		(61.3	%)


Wireless subscribers EOP ^{(A) (B)} (k)	5,884		5,614		4.8	%	5,884		5,614		4.8	%
Post-paid	4,297		4,088		5.1	%	4,297		4,088		5.1	%


Average revenue per unit (ARPU) ^(C) ($/month)	54		51		5.9	%	53		49		8.2	%
Pre-paid	17		14		21.4	%	16		13		23.1	%
Post-paid	65		63		3.2	%	64		62		3.2	%

Churn ^(C) (%) (average per month)	1.8	%	1.6	%	(0.2)	pts	1.7	%	1.6	%	(0.1)	pts
Pre-paid	3.1	%	3.2	%	0.1	pts	3.0	%	2.9	%	(0.1)	pts
Post-paid	1.4	%	1.1	%	(0.3)	pts	1.3	%	1.2	%	(0.1)	pts

Usage per subscriber ^(C) (min/month)	289		277		4.3	%	277		264		4.9	%
Cost of acquisition (COA) ^{(C) (11)} ($/sub)	442		425		(4.0	%)	433		409		(5.9	%)

Paging subscribers (k)	250		310		(19.4	%)	250		310		(19.4	%)
Paging average revenue per unit ($/month)	11		10		10.0	%	11		10		10.0	%

^(A)	Total wireless gross activations, net activations and EOP subscribers include 100% of Virgin Mobile’s subscribers.
^(B)	The Q1 2007 beginning of year wireless subscriber base was decreased by 146k as a result of a change to our prepaid deactivation policy.
^(C)	Wireless average revenue per unit, churn, usage per subscriber and cost of acquisition reflect only the 50% portion of Virgin Mobile’s results that are consolidated.

BCE Inc. Supplementary Financial Information - Second Quarter 2007 Page 8

Bell Wireless - Historical Trend ^{(1) (2)}

	YTD						Total
($ millions, except where otherwise indicated) (unaudited)	2007		Q2 07		Q1 07		2006		Q4 06		Q3 06		Q2 06		Q1 06
Bell Wireless
Revenue
Network	1,807		920		887		3,453		913		902		845		793
Equipment	130		74		56		333		93		81		82		77
Total external Bell Wireless revenues	1,937		994		943		3,786		1,006		983		927		870
Inter-segment revenue	21		12		9		41		10		10		10		11
Total Bell Wireless operating revenues	1,958		1,006		952		3,827		1,016		993		937		881
Operating expenses	(1,152	)	(605	)	(547	)	(2,392	)	(643	)	(610	)	(588	)	(551	)
EBITDA	806		401		405		1,435		373		383		349		330
EBITDA margin (Total revenues)	*41.2*	%	*39.9*	%	42.5	%	37.5	%	36.7	%	38.6	%	37.2	%	37.5	%
EBITDA margin (Network revenues)	*44.6*	%	*43.6*	%	45.7	%	41.6	%	40.9	%	42.5	%	41.3	%	41.6	%
Operating Income	586		291		295		998		265		276		239		218

Capital expenditures	217		78		139		480		163		133		107		77
Capital intensity	11.1	%	7.8	%	14.6	%	12.5	%	16.0	%	13.4	%	11.4	%	8.7	%

Wireless gross activations ^(A) (k)	685		389		296		1,531		437		385		367		342

Post-paid	395		228		167		911		218		237		243		213


Wireless net activations ^(A) (k)	76		63		13		513		212		128		97		76

Post-paid	53		43		10		293		65		91		100		37


Wireless subscribers EOP ^{(A) (B)} (k)	5,884		5,884		5,821		5,954		5,954		5,742		5,614		5,517

Post-paid	4,297		4,297		4,254		4,244		4,244		4,180		4,088		3,988


Average revenue per unit (ARPU) ^(C) ($/month)	53		54		52		51		53		53		51		48
Pre-paid	16		17		15		14		15		16		14		13
Post-paid	64		65		64		64		66		66		63		61

Churn (%) ^(C) (average per month)	1.7	%	1.8	%	1.6	%	1.5	%	1.3	%	1.5	%	1.6	%	1.6	%
Pre-paid	3.0	%	3.1	%	2.9	%	2.6	%	1.8	%	2.8	%	3.2	%	2.5	%
Post-paid	1.3	%	1.4	%	1.2	%	1.1	%	1.1	%	1.1	%	1.1	%	1.3	%

Usage per subscriber ^(C) (min/month)	277		289		266		274		291		277		277		250
Cost of acquisition (COA) ^(C) ($/sub)	433		442		420		420		445		415		425		391

Paging subscribers (k)	250		250		262		277		277		293		310		323
Paging average revenue per unit ($/month)	11		11		10		10		10		10		10		10

^(A)	Total wireless gross activations, net activations and EOP subscribers include 100% of Virgin Mobile’s subscribers.
^(B)	The Q1 2007 beginning of year wireless subscriber base was decreased by 146k as a result of a change to our prepaid deactivation policy.
^(C)	Wireless average revenue per unit, churn, usage per subscriber and cost of acquisition reflect only the 50% portion of Virgin Mobile’s results that are consolidated.

BCE Inc. Supplementary Financial Information - Second Quarter 2007 Page 9

BCE Inc.⁽¹⁾ Net debt and other information ⁽²⁾

BCE Inc. - Net debt and preferreds

At June 30, 2007	BCE Inc.
(unaudited)
($ millions, except where otherwise indicated)
			Bell		Inter-segment
	Bell		Aliant		Telesat		eliminations			BCE Inc.

Cash and cash equivalents	(291	)	(30	)	(44	)		-		(365	)
Debt due within one year	2,115		163		38			(283	)	2,033
Long-term debt	8,125		2,497		256			(273	)	10,605
Net debt	9,949		2,630		250			(556	)	12,273
Preferred shares - BCE	2,770		-		-			-		2,770
Net debt and preferreds	12,719		2,630		250			(556	)	15,043

Bell - Balance Sheet Information
(unaudited)
($ millions, except where otherwise indicated)	June 30		March 31		Dec. 31
	2007		2007		2006
Net Debt
Long-term debt	8,125		8,389		9,171
Debt due within one year	2,115		1,867		1,150
Less: Cash and cash equivalents	(291	)	(23	)	442
Total Net Debt	9,949		10,233		10,763
Non-controlling interest	57		83		1,193
Total shareholders’ equity	16,931		16,553		15,266
Total Capitalization	26,937		26,869		27,222

Net Debt: Total Capitalization	36.9	%	38.1	%	39.5	%
Net Debt: Trailing 12 month EBITDA	1.85		1.92		2.04
EBITDA : Interest (trailing 12 month)	6.82		6.53		6.20

BCE Inc. - Cash Flow Information
(unaudited)	Q2		Q2						YTD		YTD
($ millions, except where otherwise indicated)	2007		2006		$ change		% change		2007		2006		$ change		% change

Free Cash Flow (FCF) ⁽³⁾
Cash from operating activities	967		874		93		10.6	%	1,622		1,486		136		9.2	%
Capital expenditures	(538	)	(628	)	90		14.3	%	(1,080	)	(1,054	)	(26	)	(2.5	%)
Dividends and distributions	(339	)	(340	)	1		0.3	%	(653	)	(680	)	27		4.0	%
Other investing items	(2	)	(8	)	6		75.0	%	(1	)	(10	)	9		90.0	%
BELL FCF	88		(102	)	190		n.m.		(112	)	(258	)	146		56.6	%
Bell Aliant FCF	182		226		(44	)	(19.5	%)	232		325		(93	)	(28.6	%)
Telesat FCF	(5	)	(44	)	39		88.6	%	(2	)	-		(2	)	n.m.
Inter-segment eliminations	(29	)	(14	)	(15	)	n.m.		(41	)	(24	)	(17	)	(70.8	%)
Total BCE FCF	236		66		170		n.m.		77		43		34		79.1	%

BCE Inc. - Cash Flow Information - Historical Trend
(unaudited)	YTD						Total
($ millions, except where otherwise indicated)	2007		Q2 07		Q1 07		2006		Q4 06		Q3 06		Q2 06		Q1 06

Free Cash Flow (FCF)
Cash from operating activities	1,622		967		655		4,056		1,211		1,359		874		612
Capital expenditures	(1,080	)	(538	)	(542	)	(2,411	)	(772	)	(585	)	(628	)	(426	)
Dividends and distributions	(653	)	(339	)	(314	)	(1,310	)	(301	)	(329	)	(340	)	(340	)
Other investing items	(1	)	(2	)	1		(5	)	10		(5	)	(8	)	(2	)
BELL FCF	(112	)	88		(200	)	330		148		440		(102	)	(156	)
Bell Aliant FCF	232		182		50		383		49		9		226		99
Telesat FCF	(2	)	(5	)	3		24		17		7		(44	)	44
Inter-segment eliminations	(41	)	(29	)	(12	)	(52	)	(14	)	(14	)	(14	)	(10	)
Total BCE FCF	77		236		(159	)	685		200		442		66		(23	)

BCE Inc. Supplementary Financial Information - Second Quarter 2007 Page 10

BCE Inc. ⁽¹⁾Consolidated Balance Sheet Data

	June 30		March 31		December 31
($ millions, except where otherwise indicated) (unaudited)	2007		2007		2006

*ASSETS*
Current assets
Cash and cash equivalents	365		106		569
Accounts receivable	2,091		1,961		1,864
Other current assets	1,129		1,214		1,226
Current assets of discontinued operations	-		20		25
Total current assets	3,585		3,301		3,684
Capital assets	22,019		22,033		22,079
Other long-term assets	3,357		3,256		3,030
Indefinite-life intangible assets	2,913		2,913		2,902
Goodwill	5,948		5,906		5,475
Non-current assets of discontinued operations	-		26		1
Total assets	37,822		37,435		37,171
*LIABILITIES*
Current liabilities
Accounts payable and accrued liabilities	3,297		2,994		3,234
Interest payable	165		188		165
Dividends payable	339		342		315
Debt due within one year	2,033		1,639		986
Current liabilities of discontinued operations	-		4		2
Total current liabilities	5,834		5,167		4,702
Long-term debt	10,605		11,327		11,781
Other long-term liabilities	4,934		5,025		5,139
Non-current liabilities of discontinued operations	-		2		2
Total liabilities	21,373		21,521		21,624
Non-controlling interest	1,209		1,167		2,180
*SHAREHOLDERS’ EQUITY*
Preferred shares	2,770		2,770		1,670
Common shareholders’ equity
Common shares	13,512		13,382		13,487
Treasury stock	-		(4	)	-
Contributed surplus	2,534		2,546		2,555
Accumulated other comprehensive income	277		282		(2	)
Deficit	(3,853	)	(4,229	)	(4,343	)
Total common shareholders’ equity	12,470		11,977		11,697
Total shareholders’ equity	15,240		14,747		13,367
Total liabilities and shareholders’ equity	37,822		37,435		37,171

Number of common shares outstanding	804.7		800.9		807.6

Total Net Debt	12,273		12,860		12,198
Total Capitalization	28,722		28,774		27,745

Key ratios

Net debt: Total Capitalization	42.7	%	44.7	%	44.0	%
Net debt: Trailing 12 month EBITDA	1.79		1.88		1.80
EBITDA: Interest (trailing 12 month)	7.50		7.39		7.21

BCE Inc. Supplementary Financial Information - Second Quarter 2007 Page 11

BCE Inc. ⁽¹⁾Consolidated Cash Flow Data

		Q2			Q2						YTD			YTD
($ millions, except where otherwise indicated) (unaudited)		2007			2006			$ change			2007			2006			$ change

Cash flows from operating activities
Earnings from continuing operations		562			441			121			1,088			844			244
Adjustments to reconcile earnings from continuing operations to cash flows from operating activities:
Amortization expense		807			789			18			1,594			1,545			49
Net benefit plans cost		98			134			(36	)		200			270			(70	)
Restructuring and other items		72			50			22			108			138			(30	)
Net losses (gains) on investments		2			-			2			(119	)		(2	)		(117	)
Future income taxes		(112	)		105			(217	)		(1	)		303			(304	)
Non-controlling interest		88			37			51			183			78			105
Contributions to employee pension plans		(79	)		(41	)		(38	)		(187	)		(72	)		(115	)
Other employee future benefit plan payments		(24	)		(23	)		(1	)		(48	)		(48	)		-
Payments of restructuring and other items		(19	)		(34	)		15			(71	)		(70	)		(1	)
Operating assets and liabilities		19			(156	)		175			(366	)		(736	)		370
		1,414			1,302			112			2,381			2,250			131
Capital expenditures		(745	)		(857	)		112			(1,467	)		(1,438	)		(29	)
Other investing activities		(1	)		(8	)		7			1			(11	)		12
Cash dividends paid on preferred shares		(33	)		(20	)		(13	)		(56	)		(41	)		(15	)
Cash dividends/distributions paid by subsidiaries to non-controlling interest		(109	)		(49	)		(60	)		(222	)		(110	)		(112	)

Free Cash Flow from operations, before common dividends		526			368			158			637			650			(13	)
Cash dividends paid on common shares		(290	)		(302	)		12			(560	)		(607	)		47
Free Cash Flow from operations, after common dividends		236			66			170			77			43			34
Business acquisitions		(2	)		(12	)		10			(149	)		(39	)		(110	)
Bell Aliant		(3	)		(51	)		48			(7	)		(73	)		66
Increase in investments		(3	)		(105	)		102			(16	)		(119	)		103
Decrease in investments		6			13			(7	)		13			64			(51	)
Free Cash Flow after investments and divestitures		234			(89	)		323			(82	)		(124	)		42
Other financing activities
Increase in notes payable and bank advances		508			232			276			823			165			658
Issue of long-term debt		30			298			(268	)		1,055			298			757
Repayment of long-term debt		(837	)		(529	)		(308	)		(2,012	)		(826	)		(1,186	)
Issue of common shares		118			1			117			132			2			130
Repurchase of common shares		(4	)		(469	)		465			(227	)		(994	)		767
Issue of equity securities by subsidiaries to non-controlling interest		-			10			(10	)		-			13			(13	)
Redemption of equity securities by subsidiaries from non-controlling interest		(138	)		(255	)		117			(212	)		(255	)		43
Other financing activities		(7	)		(15	)		8			(48	)		(29	)		(19	)
		(330	)		(727	)		397			(489	)		(1,626	)		1,137
Cash used in continuing operations		(96	)		(816	)		720			(571	)		(1,750	)		1,179
Cash provided by discontinued operations		350			50			300			355			1,417			(1,062	)
Net increase (decrease) in cash and cash equivalents		254			(766	)		1,020			(216	)		(333	)		117
Cash and cash equivalents at beginning of period		111			878			(767	)		581			445			136
Cash and cash equivalents at end of period		365			112			253			365			112			253
Consists of:
Cash and cash equivalents of continuing operations		365			129			236			365			129			236
Bank indebtedness of discontinued operations		-			(17	)		17			-			(17	)		17
Total		365			112			253			365			112			253

Other information
Cash flow per share ⁽⁶⁾	$	0.83		$	0.50		$	0.33		$	1.14		$	0.90		$	0.24
Annualized cash flow yield ⁽⁷⁾		6.5	%		6.3	%		0.2	pts		3.9	%		5.5	%		(1.6)	pts
Common dividend payout ⁽⁸⁾		65.2	%		61.1	%		4.1	pts		67.6	%		64.1	%		3.5	pts

BCE Inc. Supplementary Financial Information - Second Quarter 2007 Page 12

BCE Inc. ⁽¹⁾
Consolidated Cash Flow Data - Historical Trend

		YTD									Total
($ millions, except where otherwise indicated) (unaudited)		2007			Q2 07			Q1 07			2006			Q4 06			Q3 06			Q2 06			Q1 06

Cash flows from operating activities
Earnings from continuing operations		1,088			562			526			1,880			714			322			441			403
Adjustments to reconcile earnings from continuing operations to cash flows from operating activities:
Amortization expense		1,594			807			787			3,128			796			787			789			756
Net benefit plans cost		200			98			102			511			123			118			134			136
Restructuring and other items		108			72			36			355			91			126			50			88
Net (gains) losses on investments		(119	)		2			(121	)		26			36			(8	)		-			(2	)
Future income taxes		(1	)		(112	)		111			(13	)		(359	)		43			105			198
Non-controlling interest		183			88			95			217			101			38			37			41
Contributions to employee pension plans		(187	)		(79	)		(108	)		(172	)		(51	)		(49	)		(41	)		(31	)
Other employee future benefit plan payments		(48	)		(24	)		(24	)		(96	)		(24	)		(24	)		(23	)		(25	)
Payments of restructuring and other items		(71	)		(19	)		(52	)		(225	)		(31	)		(124	)		(34	)		(36	)
Operating assets and liabilities		(366	)		19			(385	)		(245	)		124			367			(156	)		(580	)
		2,381			1,414			967			5,366			1,520			1,596			1,302			948
Capital expenditures		(1,467	)		(745	)		(722	)		(3,133	)		(935	)		(760	)		(857	)		(581	)
Other investing activities		1			(1	)		2			(2	)		13			(4	)		(8	)		(3	)
Cash dividends paid on preferred shares		(56	)		(33	)		(23	)		(84	)		(22	)		(21	)		(20	)		(21	)
Cash dividends/distributions paid by subsidiaries to non-controlling interest		(222	)		(109	)		(113	)		(293	)		(108	)		(75	)		(49	)		(61	)
Free Cash Flow from operations, before common dividends		637			526			111			1,854			468			736			368			282
Cash dividends paid on common shares		(560	)		(290	)		(270	)		(1,169	)		(268	)		(294	)		(302	)		(305	)
Free Cash Flow from operations, after common dividends		77			236			(159	)		685			200			442			66			(23	)
Business acquisitions		(149	)		(2	)		(147	)		(71	)		(5	)		(27	)		(12	)		(27	)
Bell Aliant		(7	)		(3	)		(4	)		(255	)		(30	)		(152	)		(51	)		(22	)
Increase in investments		(16	)		(3	)		(13	)		(304	)		(24	)		(161	)		(105	)		(14	)
Decrease in investments		13			6			7			64			-			-			13			51
Free Cash Flow after investments and divestitures		(82	)		234			(316	)		119			141			102			(89	)		(35	)

Other financing activities
Increase (decrease) in notes payable and bank advances		823			508			315			(57	)		(302	)		80			232			(67	)
Issue of long-term debt		1,055			30			1,025			4,392			675			3,419			298			-
Repayment of long-term debt		(2,012	)		(837	)		(1,175	)		(4,767	)		(2,016	)		(1,925	)		(529	)		(297	)
Issue of common shares		132			118			14			29			10			17			1			1
Repurchase of common shares		(227	)		(4	)		(223	)		(1,241	)		(133	)		(114	)		(469	)		(525	)
Issue of equity securities by subsidiaries to non-controlling interest		-			-			-			13			-			-			10			3
Redemption of equity securities by subsidiaries from non-controlling interest		(212	)		(138	)		(74	)		(305	)		(50	)		-			(255	)		-
Other financing activities		(48	)		(7	)		(41	)		(157	)		(35	)		(93	)		(15	)		(14	)
		(489	)		(330	)		(159	)		(2,093	)		(1,851	)		1,384			(727	)		(899	)
Cash (used in) provided by continuing operations		(571	)		(96	)		(475	)		(1,974	)		(1,710	)		1,486			(816	)		(934	)
Cash provided by (used in) discontinued operations		355			350			5			2,110			(2	)		695			50			1,367
Net (decrease) increase in cash and cash equivalents		(216	)		254			(470	)		136			(1,712	)		2,181			(766	)		433
Cash and cash equivalents at beginning of period		581			111			581			445			2,293			112			878			445
Cash and cash equivalents at end of period		365			365			111			581			581			2,293			112			878
Consists of:
Cash and cash equivalents of continuing operations		365			365			106			569			569			2,284			129			873
Cash and cash equivalents (bank indebtedness) of discontinued operations		-			-			5			12			12			9			(17	)		5
Total		365			365			111			581			581			2,293			112			878

Other information
Cash flow per share	$	1.14		$	0.83		$	0.30		$	2.59		$	0.72		$	1.02		$	0.50		$	0.40
Annualized cash flow yield		3.9	%		6.5	%		1.7	%		7.3	%		7.4	%		12.0	%		6.3	%		4.4	%
Common dividend payout		67.6	%		65.2	%		70.2	%		67.7	%		75.0	%		68.8	%		61.1	%		67.3	%

BCE Inc. Supplementary Financial Information - Second Quarter 2007 Page 13

Accompanying Notes

(1)		Throughout this report, BCE means BCE Inc., its subsidiaries and joint ventures. Bell Canada is, unless otherwise indicated, referred to herein as Bell, and is comprised of our Bell Wireline and Bell Wireless segments. References to Bell Aliant include matters relating to, and actions taken by, both Aliant Inc. (Aliant) and its affiliated entities prior to July 7, 2006, and Bell Aliant Regional Communications Income Fund and its affiliated entities on and after such date. We have reclassified some of the figures for the comparative periods in the consolidated financial statements to make them consistent with the presentation for the current period. We have restated financial information for the previous periods to reflect the sale of Aliant Directory Services (ADS) which is shown as discontinued operations.

(2)		In the first quarter of 2007, our management structure changed and our results of operations now are reported in four segments: Bell Wireline, Bell Wireless, Bell Aliant and Telesat. We have restated prior periods to reflect these new segments. Our reporting structure reflects how we manage our business and how we classify our operations for planning and measuring performance.

(3)		Non-GAAP Financial Measures EBITDA We define EBITDA as operating revenues less operating expenses, which means it represents operating income before amortization expense, and restructuring and other items. The term EBITDA (earnings before interest, taxes, depreciation and amortization), does not have any standardized meaning according to Canadian generally accepted accounting principles (GAAP). It is therefore unlikely to be comparable to similar measures presented by other companies. We use EBITDA, among other measures, to assess the operating performance of our ongoing businesses without the effects of amortization expense 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 because it largely depends on the accounting methods and assumptions a company uses, as well as non-operating factors, such as the historical cost of capital assets. 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 a company’s ability to service debt and to meet other payment obligations, or as a common valuation measurement in the telecommunications industry. The most comparable Canadian GAAP financial measure is operating income. Earnings per share (EPS) before restructuring and other items, net gains on investments and costs incurred to form the Bell Aliant Regional Communications Income Fund (Bell Aliant) The term EPS before restructuring and other items, net gains on investments, and costs incurred to form Bell Aliant, does not have any standardized meaning according to Canadian GAAP. It is therefore unlikely to be comparable to similar measures presented by other companies. We use EPS before restructuring and other items, net gains on investments, and costs incurred to form Bell Aliant, among other measures, to assess the operating performance of our ongoing businesses without the effects of after-tax restructuring and other items, net gains on investments, and costs incurred to form Bell Aliant. We exclude these items because they affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. Excluding these items does not imply they are necessarily non-recurring. The most comparable Canadian GAAP financial measure is EPS. FREE CASH FLOW We define free cash flow as cash from operating activities after capital expenditures, total dividends and other investing activities. The term free cash flow does not have any standardized meaning according to Canadian GAAP. It is therefore unlikely to be comparable to similar measures presented by other companies.

BCE Inc. Supplementary Financial Information - Second Quarter 2007 Page 14

Accompanying Notes (continued)

		We consider free cash flow to be an important indicator of the financial strength and performance of our business because it shows how much cash is available to repay debt and to reinvest in our company. We present free cash flow on a consistent basis from period to period, which allows us to compare our financial performance on a consistent basis. We believe that certain investors and analysts use free cash flow when valuing a business and its underlying assets. The most comparable Canadian GAAP financial measure is cash from operating activities.

(4)		EBITDA margin is calculated as follows: EBITDA Operating revenues

(5)		Capital Intensity is calculated as follows: Capital expenditures Operating revenues

(6)		Cash flow per share is calculated as follows: Cash flow from operating activities less capital expenditures Average number of common shares outstanding

(7)		Annualized cash flow yield is calculated as follows: Free cash flow from operations before common dividends Number of common shares outstanding at end of period multiplied by share price at end of period Note: to annualize, multiply the most recent quarter’s resultant by 4.

(8)		Common dividend payout is calculated as follows: Dividends per common share EPS before restructuring and other items, net gains on investments, and costs incurred to form Bell Aliant

(9)		Average revenue per unit (ARPU) represents the measurement of the average revenue generated by each unit, expressed as a rate per month for the year.

(10)		Churn is the rate at which existing subscribers cancel their services. Churn is calculated as the number of subscribers disconnected divided by the average subscriber base.

(11)		Cost of acquisition (COA) is also referred to as subscriber acquisition costs. This measure is expressed per gross activation. It includes costs associated with acquiring a customer such as hardware subsidies, marketing and distribution costs.

BCE Inc. Supplementary Financial Information - Second Quarter 2007 Page 15