Supplementary Financial Information

EX-3 4 suppfinan_q3.htm SUPPLEMENTARY FINANCIAL INFORMATION - THIRD QUARTER Supplementary Financial Information - Third Quarter 2007

EXHIBIT 3

BCE Inc. ⁽¹⁾
Consolidated Operational Data

		Q3			Q3								YTD			YTD
($ millions, except per share amounts) (unaudited)		2007			2006			$ change		% change			2007			2006			$ change		% change
Operating revenues		4,494			4,407			87		2.0	%		13,317			13,124			193		1.5	%
Operating expenses		(2,608	)		(2,577	)		(31	)	(1.2	%)		(7,714	)		(7,593	)		(121	)	(1.6	%)
Net benefit plan costs		(97	)		(118	)		21		17.8	%		(297	)		(388	)		91		23.5	%
EBITDA ⁽³⁾		1,789			1,712			77		4.5	%		5,306			5,143			163		3.2	%
EBITDA margin ⁽⁴⁾		*39.8*	%		38.8	%				1.0	pts		*39.8*	%		39.2	%				0.6	pts
Amortization expense		(814	)		(787	)		(27	)	(3.4	%)		(2,408	)		(2,332	)		(76	)	(3.3	%)
Restructuring and other items		(78	)		(126	)		48		38.1	%		(186	)		(264	)		78		29.5	%
Operating income		897			799			98		12.3	%		2,712			2,547			165		6.5	%
Other (expense) income		(5	)		(114	)		109		95.6	%		107			(159	)		266		n.m.
Interest expense		(213	)		(244	)		31		12.7	%		(648	)		(703	)		55		7.8	%
Pre-tax earnings from continuing operations		679			441			238		54.0	%		2,171			1,685			486		28.8	%
Income taxes		(153	)		(81	)		(72	)	(88.9	%)		(374	)		(403	)		29		7.2	%
Non-controlling interest		(84	)		(38	)		(46	)	n.m.			(267	)		(116	)		(151	)	n.m.
Earnings from continuing operations		442			322			120		37.3	%		1,530			1,166			364		31.2	%
Discontinued operations		(2	)		(20	)		18		90.0	%		139			124			15		12.1	%
Net earnings		440			302			138		45.7	%		1,669			1,290			379		29.4	%
Dividends on preferred shares		(34	)		(17	)		(17	)	n.m.			(97	)		(52	)		(45	)	(86.5	%)
Net earnings applicable to common shares		406			285			121		42.5	%		1,572			1,238			334		27.0	%
Net earnings per common share - basic
Continuing operations	$	0.51		$	0.38		$	0.13		34.2	%	$	1.78		$	1.27		$	0.51		40.2	%
Discontinued operations	$	(0.01	)	$	(0.02	)	$	0.01		50.0	%	$	0.17		$	0.14		$	0.03		21.4	%
Net earnings	$	0.50		$	0.36		$	0.14		38.9	%	$	1.95		$	1.41		$	0.54		38.3	%
Net earnings per common share - diluted
Continuing operations	$	0.51		$	0.38		$	0.13		34.2	%	$	1.78		$	1.27		$	0.51		40.2	%
Discontinued operations	$	(0.01	)	$	(0.02	)	$	0.01		50.0	%	$	0.17		$	0.14		$	0.03		21.4	%
Net earnings	$	0.50		$	0.36		$	0.14		38.9	%	$	1.95		$	1.41		$	0.54		38.3	%
Dividends per common share	$	0.365		$	0.33		$	0.035		10.6	%	$	1.095		$	0.99		$	0.105		10.6	%
Average number of common shares outstanding - basic (millions)		804.9			818.8								804.7			878.2
Average number of common shares outstanding - diluted (millions)		807.8			819.0								806.5			878.4

The following items are included in net earnings:
Net gains on investments
Continuing operations		7			8			(1	)	(12.5	%)		242			9			233		n.m.
Discontinued operations		-			(11	)		11		n.m.			137			104			33		31.7	%
Restructuring and other items		(43	)		(71	)		28		39.4	%		(114	)		(156	)		42		26.9	%
Cost incurred to form the Bell Aliant Regional Communications Income Fund (Bell Aliant)		-			(28	)		28		n.m.			-			(42	)		42		n.m.
Total		(36	)		(102	)		66		64.7	%		265			(85	)		350		n.m.
Impact on net earnings per share	$	(0.04	)	$	(0.12	)	$	0.08		66.7	%	$	0.33		$	(0.10	)	$	0.43		n.m.
EPS before restructuring and other items, net gains on investments, and costs incurred to form Bell Aliant ⁽³⁾	$	0.54		$	0.48		$	0.06		12.5	%	$	1.62		$	1.51		$	0.11		7.3	%
n.m.: not meaningful

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

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

		YTD												Total
($ millions, except per share amounts) (unaudited)		2007			Q3 07			Q2 07			Q1 07			2006			Q4 06			Q3 06			Q2 06			Q1 06
Operating revenues		13,317			4,494			4,438			4,385			17,656			4,532			4,407			4,374			4,343
Operating expenses		(7,714	)		(2,608	)		(2,563	)		(2,543	)		(10,363	)		(2,770	)		(2,577	)		(2,507	)		(2,509	)
Net benefit plan costs		(297	)		(97	)		(98	)		(102	)		(511	)		(123	)		(118	)		(134	)		(136	)
EBITDA		5,306			1,789			1,777			1,740			6,782			1,639			1,712			1,733			1,698
*EBITDA margin*		*39.8*	%		*39.8*	%		40.0	%		39.7	%		38.4	%		36.2	%		38.8	%		39.6	%		39.1	%
Amortization expense		(2,408	)		(814	)		(807	)		(787	)		(3,128	)		(796	)		(787	)		(789	)		(756	)
Restructuring and other items		(186	)		(78	)		(72	)		(36	)		(355	)		(91	)		(126	)		(50	)		(88	)
Operating income		2,712			897			898			917			3,299			752			799			894			854
Other income (expense)		107			(5	)		(20	)		132			(188	)		(29	)		(114	)		(36	)		(9	)
Interest expense		(648	)		(213	)		(220	)		(215	)		(940	)		(237	)		(244	)		(227	)		(232	)
Pre-tax earnings from continuing operations		2,171			679			658			834			2,171			486			441			631			613
Income taxes		(374	)		(153	)		(8	)		(213	)		(74	)		329			(81	)		(153	)		(169	)
Non-controlling interest		(267	)		(84	)		(88	)		(95	)		(217	)		(101	)		(38	)		(37	)		(41	)
Earnings from continuing operations		1,530			442			562			526			1,880			714			322			441			403
Discontinued operations		139			(2	)		138			3			127			3			(20	)		53			91
Net earnings		1,669			440			700			529			2,007			717			302			494			494
Dividends on preferred shares		(97	)		(34	)		(33	)		(30	)		(70	)		(18	)		(17	)		(18	)		(17	)
Net earnings applicable to common shares		1,572			406			667			499			1,937			699			285			476			477
Net earnings per common share - basic
Continuing operations	$	1.78		$	0.51		$	0.65		$	0.62		$	2.10		$	0.83		$	0.38		$	0.47		$	0.42
Discontinued operations	$	0.17		$	(0.01	)	$	0.18		$	-		$	0.15		$	0.01		$	(0.02	)	$	0.06		$	0.10
Net earnings	$	1.95		$	0.50		$	0.83		$	0.62		$	2.25		$	0.84		$	0.36		$	0.53		$	0.52
Net earnings per common share - diluted
Continuing operations	$	1.78		$	0.51		$	0.65		$	0.62		$	2.10		$	0.83		$	0.38		$	0.47		$	0.42
Discontinued operations	$	0.17		$	(0.01	)	$	0.18		$	-		$	0.15		$	0.01		$	(0.02	)	$	0.06		$	0.10
Net earnings	$	1.95		$	0.50		$	0.83		$	0.62		$	2.25		$	0.84		$	0.36		$	0.53		$	0.52
Dividends per common share	$	1.095		$	0.365		$	0.365		$	0.365		$	1.32		$	0.33		$	0.33		$	0.33		$	0.33
Average number of common shares outstanding - basic (millions)		804.7			804.9			803.2			806.0			861.4			811.6			818.8			896.4			920.5
Average number of common shares outstanding - diluted (millions)		806.5			807.8			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		242			7			132			103			419			410			8			-			1
Discontinued operations		137			-			136			1			106			2			(11	)		35			80
Restructuring and other items		(114	)		(43	)		(46	)		(25	)		(222	)		(66	)		(71	)		(27	)		(58	)
Cost incurred to form Bell Aliant		-			-			-			-			(42	)		-			(28	)		(14	)		-
Total		265			(36	)		222			79			261			346			(102	)		(6	)		23
Impact on net earnings per share	$	0.33		$	(0.04	)	$	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	$	1.62		$	0.54		$	0.56		$	0.52		$	1.95		$	0.44		$	0.48		$	0.54		$	0.49

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

BCE Inc. ⁽¹⁾
Segmented Data ⁽²⁾

	Q3		Q3						YTD		YTD
($ millions, except where otherwise indicated) (unaudited)	2007		2006		$ change		% change		2007		2006		$ change		% change

Revenues

Bell Wireline	2,641		2,646		(5	)	(0.2	%)	7,933		8,018		(85	)	(1.1	%)
Bell Wireless	1,072		993		79		8.0	%	3,030		2,811		219		7.8	%
Inter-segment eliminations	(12	)	(11	)	(1	)	(9.1	%)	(35	)	(38	)	3		7.9	%
Total Bell	3,701		3,628		73		2.0	%	10,928		10,791		137		1.3	%
Bell Aliant	838		825		13		1.6	%	2,515		2,463		52		2.1	%
Telesat	130		113		17		15.0	%	413		351		62		17.7	%
Inter-segment eliminations	(175	)	(159	)	(16	)	(10.1	%)	(539	)	(481	)	(58	)	(12.1	%)
Total BCE Inc.	4,494		4,407		87		2.0	%	13,317		13,124		193		1.5	%

EBITDA

Bell Wireline	937		952		(15	)	(1.6	%)	2,908		2,953		(45	)	(1.5	%)
Margin	*35.5*	%	36.0	%			(0.5	) pts	*36.7*	%	36.8	%			(0.1	) pts
Bell Wireless	449		383		66		17.2	%	1,255		1,062		193		18.2	%
Margin	*41.9*	%	38.6	%			3.3	pts	*41.4*	%	37.8	%			3.6	pts
Total Bell	1,386		1,335		51		3.8	%	4,163		4,015		148		3.7	%
Margin	*37.4*	%	36.8	%			0.6	pts	*38.1*	%	37.2	%			0.9	pts
Bell Aliant	343		340		3		0.9	%	984		997		(13	)	(1.3	%)
Margin	*40.9*	%	41.2	%			(0.3	) pts	*39.1*	%	40.5	%			(1.4	) pts
Telesat	79		61		18		29.5	%	239		200		39		19.5	%
Inter-segment eliminations	(19	)	(24	)	5		20.8	%	(80	)	(69	)	(11	)	(15.9	%)
Total BCE Inc.	1,789		1,712		77		4.5	%	5,306		5,143		163		3.2	%
Margin	*39.8*	%	38.8	%			1.0	pts	*39.8*	%	39.2	%			0.6	pts

Operating income

Bell Wireline	340		340		-		0.0	%	1,146		1,225		(79	)	(6.4	%)
Bell Wireless	339		276		63		22.8	%	925		733		192		26.2	%
Total Bell	679		616		63		10.2	%	2,071		1,958		113		5.8	%
Bell Aliant	178		162		16		9.9	%	538		504		34		6.7	%
Telesat	47		32		15		46.9	%	145		110		35		31.8	%
Inter-segment eliminations	(7	)	(11	)	4		36.4	%	(42	)	(25	)	(17	)	(68.0	%)
Total BCE Inc.	897		799		98		12.3	%	2,712		2,547		165		6.5	%

Capital expenditures

Bell Wireline	485		452		(33	)	(7.3	%)	1,348		1,322		(26	)	(2.0	%)
Capital Intensity ⁽⁵⁾	*18.4*	%	17.1	%			(1.3	) pts	*17.0*	%	16.5	%			(0.5	) pts
Bell Wireless	90		133		43		32.3	%	307		317		10		3.2	%
Capital intensity	*8.4*	%	13.4	%			5.0	pts	*10.1*	%	11.3	%			1.2	pts
Total Bell	575		585		10		1.7	%	1,655		1,639		(16	)	(1.0	%)
Capital Intensity	*15.5*	%	16.1	%			0.6	pts	*15.1*	%	15.2	%			0.1	pts
Bell Aliant	140		131		(9	)	(6.9	%)	399		386		(13	)	(3.4	%)
Telesat	50		44		(6	)	(13.6	%)	178		173		(5	)	(2.9	%)
Total BCE Inc.	765		760		(5	)	(0.7	%)	2,232		2,198		(34	)	(1.5	%)
Capital Intensity	*17.0*	%	17.2	%			0.2	pts	*16.8*	%	16.7	%			(0.1	) pts

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

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

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

Revenues

Bell Wireline	7,933		2,641		2,654		2,638		10,763		2,745		2,646		2,676		2,696
Bell Wireless	3,030		1,072		1,006		952		3,827		1,016		993		937		881
Inter-segment eliminations	(35	)	(12	)	(12	)	(11	)	(49	)	(11	)	(11	)	(14	)	(13	)
Total Bell	10,928		3,701		3,648		3,579		14,541		3,750		3,628		3,599		3,564
Bell Aliant	2,515		838		826		851		3,301		838		825		815		823
Telesat	413		130		161		122		479		128		113		120		118
Inter-segment eliminations	(539	)	(175	)	(197	)	(167	)	(665	)	(184	)	(159	)	(160	)	(162	)
Total BCE Inc.	13,317		4,494		4,438		4,385		17,656		4,532		4,407		4,374		4,343

EBITDA

Bell Wireline	2,908		937		997		974		3,845		892		952		1,005		996
Margin	*36.7*	%	*35.5*	%	37.6	%	36.9	%	35.7	%	32.5	%	36.0	%	37.6	%	36.9	%
Bell Wireless	1,255		449		401		405		1,435		373		383		349		330
Margin	*41.4*	%	*41.9*	%	39.9	%	42.5	%	37.5	%	36.7	%	38.6	%	37.2	%	37.5	%
Total Bell	4,163		1,386		1,398		1,379		5,280		1,265		1,335		1,354		1,326
Margin	*38.1*	%	*37.4*	%	38.3	%	38.5	%	36.3	%	33.7	%	36.8	%	37.6	%	37.2	%
Bell Aliant	984		343		325		316		1,333		336		340		334		323
Margin	*39.1*	%	*40.9*	%	39.3	%	37.1	%	40.4	%	40.1	%	41.2	%	41.0	%	39.2	%
Telesat	239		79		93		67		263		63		61		70		69
Inter-segment eliminations	(80	)	(19	)	(39	)	(22	)	(94	)	(25	)	(24	)	(25	)	(20	)
Total BCE Inc.	5,306		1,789		1,777		1,740		6,782		1,639		1,712		1,733		1,698
Margin	*39.8*	%	*39.8*	%	40.0	%	39.7	%	38.4	%	36.2	%	38.8	%	39.6	%	39.1	%

Operating income

Bell Wireline	1,146		340		390		416		1,494		269		340		449		436
Bell Wireless	925		339		291		295		998		265		276		239		218
Total Bell	2,071		679		681		711		2,492		534		616		688		654
Bell Aliant	538		178		183		177		699		195		162		173		169
Telesat	145		47		60		38		142		32		32		39		39
Inter-segment eliminations	(42	)	(7	)	(26	)	(9	)	(34	)	(9	)	(11	)	(6	)	(8	)
Total BCE Inc.	2,712		897		898		917		3,299		752		799		894		854

Capital expenditures

Bell Wireline	1,348		485		460		403		1,931		609		452		521		349
Capital Intensity	*17.0*	%	*18.4*	%	17.3	%	15.3	%	17.9	%	22.2	%	17.1	%	19.5	%	12.9	%
Bell Wireless	307		90		78		139		480		163		133		107		77
Capital intensity	*10.1*	%	*8.4*	%	7.8	%	14.6	%	12.5	%	16.0	%	13.4	%	11.4	%	8.7	%
Total Bell	1,655		575		538		542		2,411		772		585		628		426
Capital Intensity	*15.1*	%	*15.5*	%	14.7	%	15.1	%	16.6	%	20.6	%	16.1	%	17.4	%	12.0	%
Bell Aliant	399		140		144		115		517		131		131		143		112
Telesat	178		50		63		65		205		32		44		86		43
Total BCE Inc.	2,232		765		745		722		3,133		935		760		857		581
Capital Intensity	*16.8*	%	*17.0*	%	16.8	%	16.5	%	17.7	%	20.6	%	17.2	%	19.6	%	13.4	%

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

Bell Wireline ^{(1) (2)}

	Q3		Q3				YTD		YTD
($ millions, except where otherwise indicated) (unaudited)	2007		2006		% change		2007		2006		% change
Bell Wireline
Local & access	892		926		(3.7	%)	2,712		2,832		(4.2	%)
Long distance	306		334		(8.4	%)	923		1,011		(8.7	%)
Data	892		881		1.2	%	2,665		2,638		1.0	%
Video	330		289		14.2	%	966		852		13.4	%
Equipment & other	174		174		0.0	%	538		557		(3.4	%)
Total external revenues	2,594		2,604		(0.4	%)	7,804		7,890		(1.1	%)
Inter-segment revenues	47		42		11.9	%	129		128		0.8	%
Total Bell Wireline operating revenue	2,641		2,646		(0.2	%)	7,933		8,018		(1.1	%)
Operating expenses	(1,704	)	(1,694	)	(0.6	%)	(5,025	)	(5,065	)	0.8	%
EBITDA	937		952		(1.6	%)	2,908		2,953		(1.5	%)
EBITDA Margin	*35.5*	%	36.0	%	(0.5	) pts	*36.7*	%	36.8	%	(0.1	) pts
Operating income	340		340		0.0	%	1,146		1,225		(6.4	%)

Capital expenditures	485		452		(7.3	%)	1,348		1,322		(2.0	%)
Capital intensity	18.4	%	17.1	%	(1.3	) pts	17.0	%	16.5	%	(0.5	) pts

Local
Network access services (k)
Residential	4,767		5,310		(10.2	%)	4,767		5,310		(10.2	%)
Business ^(A)	3,606		3,577		0.8	%	3,606		3,577		0.8	%
Total	8,373		8,887		(5.8	%)	8,373		8,887		(5.8	%)

Network access service net activations/(losses) (k)
Residential	(104	)	(90	)	(15.6	%)	(394	)	(386	)	(2.1	%)
Business ^(A)	11		31		(64.5	%)	80		65		23.1	%
Total	(93	)	(59	)	(57.6	%)	(314	)	(321	)	2.2	%

Long Distance (LD)
Conversation minutes (M)	2,962		3,266		(9.3	%)	9,451		9,887		(4.4	%)
Average revenue per minute ($)	0.097		0.095		2.1	%	0.091		0.094		(3.2	%)

ISP
High Speed Internet net activations (k)	34		61		(44.3	%)	106		123		(13.8	%)
High Speed Internet subscribers EOP (B) (k)	1,993		1,846		8.0	%	1,993		1,846		8.0	%

Video (DTH and VDSL)
Video EBITDA	65		41		58.5	%	188		138		36.2	%

Net subscriber activations EOP (k)	3		30		(90.0	%)	-		61		n.m.
Total subscribers (k)	1,820		1,788		1.8	%	1,820		1,788		1.8	%
ARPU ⁽⁹⁾($/month)	60		54		11.1	%	58		54		7.4	%
Churn ⁽¹⁰⁾(%) (average per month)	1.3	%	1.0	%	(0.3	) pts	1.2	%	1.0	%	(0.2	) pts

(A)		The Q3 2007 opening business network access services customer base was decreased by 58k to reflect an adjustment in the calculation of local-interconnections.
(B)		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 - Third Quarter 2007 Page 6

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

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

Local & access	2,712		892		910		910		3,757		925		926		945		961
Long distance	923		306		307		310		1,327		316		334		336		341
Data	2,665		892		880		893		3,599		961		881		873		884
Video	966		330		322		314		1,150		298		289		286		277
Equipment & other	538		174		194		170		754		197		174		194		189
Total external revenues	7,804		2,594		2,613		2,597		10,587		2,697		2,604		2,634		2,652
Inter-segment revenues	129		47		41		41		176		48		42		42		44
Total Bell Wireline operating revenue	7,933		2,641		2,654		2,638		10,763		2,745		2,646		2,676		2,696
Operating expenses	(5,025	)	(1,704	)	(1,657	)	(1,664	)	(6,918	)	(1,853	)	(1,694	)	(1,671	)	(1,700	)
EBITDA	2,908		937		997		974		3,845		892		952		1,005		996
EBITDA Margin	*36.7*	%	*35.5*	%	37.6	%	36.9	%	35.7	%	32.5	%	36.0	%	37.6	%	36.9	%
Operating income	1,146		340		390		416		1,494		269		340		449		436

Capital expenditures	1,348		485		460		403		1,931		609		452		521		349
Capital intensity	17.0	%	18.4	%	17.3	%	15.3	%	17.9	%	22.2	%	17.1	%	19.5	%	12.9	%

Local
Network access services (k)
Residential	4,767		4,767		4,871		5,030		5,161		5,161		5,310		5,400		5,562
Business ^(A)	3,606		3,606		3,653		3,608		3,584		3,584		3,577		3,546		3,513
Total	8,373		8,373		8,524		8,638		8,745		8,745		8,887		8,946		9,075

Network access service net activations/(losses) (k)
Residential	(394	)	(104	)	(159	)	(131	)	(535	)	(149	)	(90	)	(162	)	(134	)
Business ^(A)	80		11		45		24		72		7		31		33		1
Total	(314	)	(93	)	(114	)	(107	)	(463	)	(142	)	(59	)	(129	)	(133	)

Long Distance (LD)
Conversation minutes (M)	9,451		2,962		3,249		3,240		13,256		3,369		3,266		3,353		3,268
Average revenue per minute ($)	0.091		0.097		0.088		0.090		0.092		0.085		0.095		0.092		0.096

ISP
High Speed Internet net activations (k)	106		34		29		43		157		34		61		25		37
High Speed Internet subscribers EOP ^(B)(k)	1,993		1,993		1,959		1,941		1,880		1,880		1,846		1,785		1,760

Video (DTH and VDSL)
Video EBITDA	188		65		68		55		163		25		41		56		41
Net subscriber activations EOP (k)	-		3		(7	)	4		93		32		30		19		12
Total subscribers (k)	1,820		1,820		1,817		1,824		1,820		1,820		1,788		1,758		1,739
ARPU ($/month)	58		60		58		57		54		55		54		54		53
Churn (%) (average per month)	1.2	%	1.3	%	1.3	%	1.1	%	1.0	%	1.0	%	1.0	%	1.0	%	0.9	%

(A)		The Q3 2007 opening business network access services customer base was decreased by 58k to reflect an adjustment in the calculation of local-interconnections.
(B)		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 - Third Quarter 2007 Page 7

Bell Wireless ^{(1) (2)}

	Q3		Q3				YTD		YTD
($ millions, except where otherwise indicated) (unaudited)	2007		2006		% change		2007		2006		% change

Bell Wireless

Revenue
Network	974		902		8.0	%	2,781		2,540		9.5	%
Equipment	87		81		7.4	%	217		240		(9.6	%)
Total external Bell Wireless revenues	1,061		983		7.9	%	2,998		2,780		7.8	%
Inter-segment	11		10		10.0	%	32		31		3.2	%
Total Bell Wireless operating revenues	1,072		993		8.0	%	3,030		2,811		7.8	%
Operating expenses	(623	)	(610	)	(2.1	%)	(1,775	)	(1,749	)	(1.5	%)
EBITDA	449		383		17.2	%	1,255		1,062		18.2	%
EBITDA margin (Total revenues)	*41.9*	%	38.6	%	3.3	pts	*41.4*	%	37.8	%	3.6	pts
EBITDA margin (Network revenues)	*46.1*	%	42.5	%	3.6	pts	*45.1*	%	41.8	%	3.3	pts
Operating Income	339		276		22.8	%	925		733		26.2	%

Capital expenditures	90		133		32.3	%	307		317		3.2	%
Capital intensity	8.4	%	13.4	%	5.0	pts	10.1	%	11.3	%	1.2	pts

Wireless gross activations ^(A)(k)	445		385		15.6	%	1,130		1,094		3.3	%
Post-paid	254		237		7.2	%	649		693		(6.3	%)


Wireless net activations ^(A)(k)	137		128		7.0	%	213		301		(29.2	%)
Post-paid	76		91		(16.5	%)	129		228		(43.4	%)


Wireless subscribers EOP ^{(A) (B)}(k)	6,021		5,742		4.9	%	6,021		5,742		4.9	%
Post-paid	4,372		4,180		4.6	%	4,372		4,180		4.6	%


Average revenue per unit (ARPU) ^(C)($/month)	56		53		5.7	%	54		51		5.9	%
Pre-paid	19		16		18.8	%	17		14		21.4	%
Post-paid	68		66		3.0	%	66		64		3.1	%

Churn ^(C)(%) (average per month)	1.7	%	1.5	%	(0.2	) pts	1.7	%	1.6	%	(0.1	) pts
Pre-paid	2.7	%	2.8	%	0.1	pts	2.9	%	2.8	%	(0.1	) pts
Post-paid	1.4	%	1.1	%	(0.3	) pts	1.3	%	1.1	%	(0.2	) pts

Usage per subscriber ^(C)(min/month)	297		277		7.2	%	284		268		6.0	%
Cost of acquisition (COA) ^{(C) (11)}($/sub)	371		415		10.6	%	409		411		0.5	%

Paging subscribers (k)	236		293		(19.5	%)	236		293		(19.5	%)
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 - Third Quarter 2007 Page 8

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

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

Revenue
Network	2,781		974		920		887		3,453		913		902		845		793
Equipment	217		87		74		56		333		93		81		82		77
Total external Bell Wireless revenues	2,998		1,061		994		943		3,786		1,006		983		927		870
Inter-segment revenue	32		11		12		9		41		10		10		10		11
Total Bell Wireless operating revenues	3,030		1,072		1,006		952		3,827		1,016		993		937		881
Operating expenses	(1,775	)	(623	)	(605	)	(547	)	(2,392	)	(643	)	(610	)	(588	)	(551	)
EBITDA	1,255		449		401		405		1,435		373		383		349		330
EBITDA margin (Total revenues)	*41.4*	%	*41.9*	%	39.9	%	42.5	%	37.5	%	36.7	%	38.6	%	37.2	%	37.5	%
EBITDA margin (Network revenues)	*45.1*	%	*46.1*	%	43.6	%	45.7	%	41.6	%	40.9	%	42.5	%	41.3	%	41.6	%
Operating Income	925		339		291		295		998		265		276		239		218

Capital expenditures	307		90		78		139		480		163		133		107		77
Capital intensity	10.1	%	8.4	%	7.8	%	14.6	%	12.5	%	16.0	%	13.4	%	11.4	%	8.7	%

Wireless gross activations ^(A)(k)	1,130		445		389		296		1,531		437		385		367		342
Post-paid	649		254		228		167		911		218		237		243		213


Wireless net activations ^(A)(k)	213		137		63		13		513		212		128		97		76
Post-paid	129		76		43		10		293		65		91		100		37


Wireless subscribers EOP ^{(A) (B)}(k)	6,021		6,021		5,884		5,821		5,954		5,954		5,742		5,614		5,517
Post-paid	4,372		4,372		4,297		4,254		4,244		4,244		4,180		4,088		3,988


Average revenue per unit (ARPU) ^(C)($/month)	54		56		54		52		51		53		53		51		48
Pre-paid	17		19		17		15		14		15		16		14		13
Post-paid	66		68		65		64		64		66		66		63		61

Churn (%) ^(C)(average per month)	1.7	%	1.7	%	1.8	%	1.6	%	1.5	%	1.3	%	1.5	%	1.6	%	1.6	%
Pre-paid	2.9	%	2.7	%	3.1	%	2.9	%	2.6	%	1.8	%	2.8	%	3.2	%	2.5	%
Post-paid	1.3	%	1.4	%	1.4	%	1.2	%	1.1	%	1.1	%	1.1	%	1.1	%	1.3	%

Usage per subscriber ^(C)(min/month)	284		297		289		266		274		291		277		277		250
Cost of acquisition (COA) ^(C)($/sub)	409		371		442		420		420		445		415		425		391

Paging subscribers (k)	236		236		250		262		277		277		293		310		323
Paging average revenue per unit ($/month)	11		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 - Third Quarter 2007 Page 9

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

BCE Inc. - Net debt and preferreds

At September 30, 2007	BCE Inc.
(unaudited)
($ millions, except where otherwise indicated)
			Bell				Inter-segment
	Bell		Aliant		Telesat		eliminations		BCE Inc.
Cash and cash equivalents	(193	)	(8	)	(58	)	-		(259	)
Debt due within one year	1,707		261		37		(287	)	1,718
Long-term debt	8,123		2,496		235		(254	)	10,600
Net debt	9,637		2,749		214		(541	)	12,059
Preferred shares - BCE	2,770		-		-		-		2,770
Net debt and preferreds	12,407		2,749		214		(541	)	14,829

Bell - Balance Sheet Information
(unaudited)
($ millions, except where otherwise indicated)	September 30		June 30		March 31		Dec. 31
	2007		2007		2007		2006
Net Debt
Long-term debt	8,123		8,125		8,389		9,171
Debt due within one year	1,707		2,115		1,867		1,150
Less: Cash and cash equivalents	(193	)	(291	)	(23	)	442
Total Net Debt	9,637		9,949		10,233		10,763
Non-controlling interest	63		57		83		1,193
Total shareholders’ equity	16,961		16,931		16,553		15,266
Total Capitalization	26,661		26,937		26,869		27,222

Net Debt: Total Capitalization	36.1	%	36.9	%	38.1	%	39.5	%
Net Debt: Trailing 12 month EBITDA	1.78		1.85		1.92		2.04
EBITDA : Interest (trailing 12 month)	7.19		6.82		6.53		6.20

BCE Inc. - Cash Flow Information
(unaudited)	Q3		Q3						YTD		YTD
($ millions, except where otherwise indicated)	2007		2006		$ change		% change		2007		2006		$ change		% change

Free Cash Flow (FCF) ⁽³⁾
Cash from operating activities	1,228		1,359		(131	)	(9.6	%)	2,850		2,845		5		0.2	%
Capital expenditures	(575	)	(585	)	10		1.7	%	(1,655	)	(1,639	)	(16	)	(1.0	%)
Dividends and distributions	(326	)	(329	)	3		0.9	%	(979	)	(1,009	)	30		3.0	%
Other investing items	5		(5	)	10		n.m.		4		(15	)	19		n.m.
BELL FCF	332		440		(108	)	(24.5	%)	220		182		38		20.9	%
Bell Aliant FCF	63		9		54		n.m.		295		334		(39	)	(11.7	%)
Telesat FCF	31		7		24		n.m.		29		7		22		n.m.
Inter-segment eliminations	(5	)	(14	)	9		64.3	%	(46	)	(38	)	(8	)	(21.1	%)
Total BCE FCF	421		442		(21	)	(4.8	%)	498		485		13		2.7	%

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

Free Cash Flow (FCF)
Cash from operating activities	2,850		1,228		967		655		4,056		1,211		1,359		874		612
Capital expenditures	(1,655	)	(575	)	(538	)	(542	)	(2,411	)	(772	)	(585	)	(628	)	(426	)
Dividends and distributions	(979	)	(326	)	(339	)	(314	)	(1,310	)	(301	)	(329	)	(340	)	(340	)
Other investing items	4		5		(2	)	1		(5	)	10		(5	)	(8	)	(2	)
BELL FCF	220		332		88		(200	)	330		148		440		(102	)	(156	)
Bell Aliant FCF	295		63		182		50		383		49		9		226		99
Telesat FCF	29		31		(5	)	3		24		17		7		(44	)	44
Inter-segment eliminations	(46	)	(5	)	(29	)	(12	)	(52	)	(14	)	(14	)	(14	)	(10	)
Total BCE FCF	498		421		236		(159	)	685		200		442		66		(23	)

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

BCE Inc. ⁽¹⁾
Consolidated Balance Sheet Data

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

*ASSETS*
Current assets
Cash and cash equivalents	259		365		106		569
Accounts receivable	1,955		2,091		1,961		1,864
Other current assets	1,061		1,129		1,214		1,226
Current assets of discontinued operations	-		-		20		25
Total current assets	3,275		3,585		3,301		3,684
Capital assets	22,048		22,019		22,033		22,079
Other long-term assets	3,484		3,357		3,256		3,030
Indefinite-life intangible assets	2,913		2,913		2,913		2,902
Goodwill	6,000		5,948		5,906		5,475
Non-current assets of discontinued operations	-		-		26		1
Total assets	37,720		37,822		37,435		37,171
*LIABILITIES*
Current liabilities
Accounts payable and accrued liabilities	3,393		3,297		2,994		3,234
Interest payable	187		165		188		165
Dividends payable	338		339		342		315
Debt due within one year	1,718		2,033		1,639		986
Current liabilities of discontinued operations	-		-		4		2
Total current liabilities	5,636		5,834		5,167		4,702
Long-term debt	10,600		10,605		11,327		11,781
Other long-term liabilities	5,069		4,934		5,025		5,139
Non-current liabilities of discontinued operations	-		-		2		2
Total liabilities	21,305		21,373		21,521		21,624
Non-controlling interest	1,127		1,209		1,167		2,180
*SHAREHOLDERS’ EQUITY*
Preferred shares	2,770		2,770		2,770		1,670
Common shareholders’ equity
Common shares	13,531		13,512		13,382		13,487
Treasury stock	-		-		(4	)	-
Contributed surplus	2,534		2,534		2,546		2,555
Accumulated other comprehensive income	193		277		282		(2	)
Deficit	(3,740	)	(3,853	)	(4,229	)	(4,343	)
Total common shareholders’ equity	12,518		12,470		11,977		11,697
Total shareholders’ equity	15,288		15,240		14,747		13,367
Total liabilities and shareholders’ equity	37,720		37,822		37,435		37,171

Number of common shares outstanding	805.1		804.7		800.9		807.6

Total Net Debt	12,059		12,273		12,860		12,198
Total Capitalization	28,474		28,722		28,774		27,745

Key ratios

Net debt: Total Capitalization	42.4	%	42.7	%	44.7	%	44.0	%
Net debt: Trailing 12 month EBITDA	1.74		1.79		1.88		1.80
EBITDA: Interest (trailing 12 month)	7.85		7.50		7.39		7.21

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

BCE Inc. ⁽¹⁾
Consolidated Cash Flow Data

		Q3			Q3						YTD			YTD
($ millions, except where otherwise indicated) (unaudited)		2007			2006			$ change			2007			2006			$ change
Cash flows from operating activities
Earnings from continuing operations		442			322			120			1,530			1,166			364
Adjustments to reconcile earnings from continuing operations to cash flows from operating activities:
Amortization expense		814			787			27			2,408			2,332			76
Net benefit plans cost		97			118			(21	)		297			388			(91	)
Restructuring and other items		78			126			(48	)		186			264			(78	)
Net losses on investments		(6	)		(8	)		2			(125	)		(10	)		(115	)
Future income taxes		214			43			171			213			346			(133	)
Non-controlling interest		84			38			46			267			116			151
Contributions to employee pension plans		(42	)		(49	)		7			(229	)		(121	)		(108	)
Other employee future benefit plan payments		(23	)		(24	)		1			(71	)		(72	)		1
Payments of restructuring and other items		(20	)		(124	)		104			(91	)		(194	)		103
Operating assets and liabilities		(35	)		367			(402	)		(401	)		(369	)		(32	)
		1,603			1,596			7			3,984			3,846			138
Capital expenditures		(765	)		(760	)		(5	)		(2,232	)		(2,198	)		(34	)
Other investing activities		4			(4	)		8			5			(15	)		20
Cash dividends paid on preferred shares		(34	)		(21	)		(13	)		(90	)		(62	)		(28	)
Cash dividends/distributions paid by subsidiaries to non-controlling interest		(94	)		(75	)		(19	)		(316	)		(185	)		(131	)
Free Cash Flow from operations, before common dividends		714			736			(22	)		1,351			1,386			(35	)
Cash dividends paid on common shares		(293	)		(294	)		1			(853	)		(901	)		48
Free Cash Flow from operations, after common dividends		421			442			(21	)		498			485			13
Business acquisitions		(14	)		(27	)		13			(163	)		(66	)		(97	)
Bell Aliant		-			(152	)		152			(7	)		(225	)		218
Going Private Costs		(36	)		-			(36	)		(36	)		-			(36	)
Increase in investments		(5	)		(161	)		156			(21	)		(280	)		259
Decrease in investments		50			-			50			63			64			(1	)
Free Cash Flow after investments and divestitures		416			102			314			334			(22	)		356
Other financing activities
Increase in notes payable and bank advances		(345	)		80			(425	)		478			245			233
Issue of long-term debt		16			3,419			(3,403	)		1,071			3,717			(2,646	)
Repayment of long-term debt		(89	)		(1,925	)		1,836			(2,101	)		(2,751	)		650
Issue of common shares		16			17			(1	)		148			19			129
Repurchase of common shares		-			(114	)		114			(227	)		(1,108	)		881
Issue of equity securities by subsidiaries to non-controlling interest		-			-			-			-			13			(13	)
Redemption of equity securities by subsidiaries from non-controlling interest		(117	)		-			(117	)		(329	)		(255	)		(74	)
Other financing activities		(5	)		(93	)		88			(53	)		(122	)		69
		(524	)		1,384			(1,908	)		(1,013	)		(242	)		(771	)
Cash (used) provided in continuing operations		(108	)		1,486			(1,594	)		(679	)		(264	)		(415	)
Cash provided by discontinued operations		2			695			(693	)		357			2,112			(1,755	)
Net (decrease) increase in cash and cash equivalents		(106	)		2,181			(2,287	)		(322	)		1,848			(2,170	)
Cash and cash equivalents at beginning of period		365			112			253			581			445			136
Cash and cash equivalents at end of period		259			2,293			(2,034	)		259			2,293			(2,034	)
Consists of:
Cash and cash equivalents of continuing operations		259			2,284			(2,025	)		259			2,284			(2,025	)
Cash and cash equivalents of discontinued operations		-			9			(9	)		-			9			(9	)
Total		259			2,293			(2,034	)		259			2,293			(2,034	)

Other information

Cash flow per share ⁽⁶⁾	$	1.05		$	0.99		$	0.06		$	2.18		$	1.88		$	0.30
Annualized cash flow yield ⁽⁷⁾		8.9	%		12.0	%		(3.1	) pts		5.6	%		7.5	%		(1.9	) pts
Common dividend payout ⁽⁸⁾		67.6	%		68.8	%		(1.2	) pts		67.6	%		65.6	%		2.0	pts

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

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

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

Cash flows from operating activities
Earnings from continuing operations		1,530			442			562			526			1,880			714			322			441			403
Adjustments to reconcile earnings from continuing operations to cash flows from operating activities:
Amortization expense		2,408			814			807			787			3,128			796			787			789			756
Net benefit plans cost		297			97			98			102			511			123			118			134			136
Restructuring and other items		186			78			72			36			355			91			126			50			88
Net (gains) losses on investments		(125	)		(6	)		2			(121	)		26			36			(8	)		-			(2	)
Future income taxes		213			214			(112	)		111			(13	)		(359	)		43			105			198
Non-controlling interest		267			84			88			95			217			101			38			37			41
Contributions to employee pension plans		(229	)		(42	)		(79	)		(108	)		(172	)		(51	)		(49	)		(41	)		(31	)
Other employee future benefit plan payments		(71	)		(23	)		(24	)		(24	)		(96	)		(24	)		(24	)		(23	)		(25	)
Payments of restructuring and other items		(91	)		(20	)		(19	)		(52	)		(225	)		(31	)		(124	)		(34	)		(36	)
Operating assets and liabilities		(401	)		(35	)		19			(385	)		(245	)		124			367			(156	)		(580	)
		3,984			1,603			1,414			967			5,366			1,520			1,596			1,302			948
Capital expenditures		(2,232	)		(765	)		(745	)		(722	)		(3,133	)		(935	)		(760	)		(857	)		(581	)
Other investing activities		5			4			(1	)		2			(2	)		13			(4	)		(8	)		(3	)
Cash dividends paid on preferred shares		(90	)		(34	)		(33	)		(23	)		(84	)		(22	)		(21	)		(20	)		(21	)
Cash dividends/distributions paid by subsidiaries to non-controlling interest		(316	)		(94	)		(109	)		(113	)		(293	)		(108	)		(75	)		(49	)		(61	)
Free Cash Flow from operations, before common dividends		1,351			714			526			111			1,854			468			736			368			282
Cash dividends paid on common shares		(853	)		(293	)		(290	)		(270	)		(1,169	)		(268	)		(294	)		(302	)		(305	)
Free Cash Flow from operations, after common dividends		498			421			236			(159	)		685			200			442			66			(23	)
Business acquisitions		(163	)		(14	)		(2	)		(147	)		(71	)		(5	)		(27	)		(12	)		(27	)
Bell Aliant		(7	)		-			(3	)		(4	)		(255	)		(30	)		(152	)		(51	)		(22	)
Going Private Costs		(36	)		(36	)		-			-			-			-			-			-			-
Increase in investments		(21	)		(5	)		(3	)		(13	)		(304	)		(24	)		(161	)		(105	)		(14	)
Decrease in investments		63			50			6			7			64			-			-			13			51
Free Cash Flow after investments and divestitures		334			416			234			(316	)		119			141			102			(89	)		(35	)

Other financing activities
Increase (decrease) in notes payable and bank advances		478			(345	)		508			315			(57	)		(302	)		80			232			(67	)
Issue of long-term debt		1,071			16			30			1,025			4,392			675			3,419			298			-
Repayment of long-term debt		(2,101	)		(89	)		(837	)		(1,175	)		(4,767	)		(2,016	)		(1,925	)		(529	)		(297	)
Issue of common shares		148			16			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		(329	)		(117	)		(138	)		(74	)		(305	)		(50	)		-			(255	)		-
Other financing activities		(53	)		(5	)		(7	)		(41	)		(157	)		(35	)		(93	)		(15	)		(14	)
		(1,013	)		(524	)		(330	)		(159	)		(2,093	)		(1,851	)		1,384			(727	)		(899	)
Cash (used in) provided by continuing operations		(679	)		(108	)		(96	)		(475	)		(1,974	)		(1,710	)		1,486			(816	)		(934	)
Cash provided by (used in) discontinued operations		357			2			350			5			2,110			(2	)		695			50			1,367
Net (decrease) increase in cash and cash equivalents		(322	)		(106	)		254			(470	)		136			(1,712	)		2,181			(766	)		433
Cash and cash equivalents at beginning of period		581			365			111			581			445			2,293			112			878			445
Cash and cash equivalents at end of period		259			259			365			111			581			581			2,293			112			878
Consists of:
Cash and cash equivalents of continuing operations		259			259			365			106			569			569			2,284			129			873
Cash and cash equivalents (bank indebtedness) of discontinued operations		-			-			-			5			12			12			9			(17	)		5
Total		259			259			365			111			581			581			2,293			112			878

Other information

Cash flow per share	$	2.18		$	1.05		$	0.83		$	0.30		$	2.59		$	0.71		$	0.99		$	0.49		$	0.40
Annualized cash flow yield		5.6	%		8.9	%		6.5	%		1.7	%		7.3	%		7.4	%		12.0	%		6.3	%		4.4	%
Common dividend payout		67.6	%		67.6	%		65.2	%		70.2	%		67.7	%		75.0	%		68.8	%		61.1	%		67.3	%

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