Supplementary Financial Information

EX-2 3 supplementary_q4.htm SUPPLEMENTARY FINANCIAL INFORMATION BCE Q4 Supplementary Financial Information - Fourth Quarter 2007

EXHIBIT 2

BCE Inc. ⁽¹⁾
Consolidated Operational Data

		Q4 2007			Q4 2006								Total 2007			Total 2006
($ millions, except per share amounts) (unaudited)		Q4 2007			Q4 2006			$ change		% change			Total 2007			Total 2006			$ change		% change
Operating revenues		4,549			4,532			17		0.4	%		17,866			17,656			210		1.2	%
Cost of revenue, exclusive of depreciation and amortization		(1,170	)		(1,096	)		(74	)	(6.8	%)		(4,170	)		(4,020	)		(150	)	(3.7	%)
Selling, general and administrative expenses^(A)		(1,598	)		(1,674	)		76		4.5	%		(6,312	)		(6,343	)		31		0.5	%
Net benefit plan costs		(113	)		(123	)		10		8.1	%		(410	)		(511	)		101		19.8	%
EBITDA ⁽³⁾		1,668			1,639			29		1.8	%		6,974			6,782			192		2.8	%
*EBITDA margin* ⁽⁴⁾		*36.7*	%		36.2	%				0.5	pts		*39.0*	%		38.4	%				0.6	pts
Depreciation		(618	)		(641	)		23		3.6	%		(2,550	)		(2,505	)		(45	)	(1.8	%)
Amortization of intangible assets		(173	)		(155	)		(18	)	(11.6	%)		(649	)		(623	)		(26	)	(4.2	%)
Restructuring and other		(150	)		(91	)		(59	)	(64.8	%)		(336	)		(355	)		19		5.4	%
Operating income		727			752			(25	)	(3.3	%)		3,439			3,299			140		4.2	%
Other (expense) income		2,288			(29	)		2,317		n.m.			2,395			(188	)		2,583		n.m.
Interest expense		(211	)		(237	)		26		11.0	%		(859	)		(940	)		81		8.6	%
Pre-tax earnings from continuing operations		2,804			486			2,318		n.m.			4,975			2,171			2,804		n.m.
Income taxes		(351	)		329			(680	)	n.m.			(725	)		(74	)		(651	)	n.m.
Non-controlling interest		(65	)		(101	)		36		35.6	%		(332	)		(217	)		(115	)	(53.0	%)
Earnings from continuing operations		2,388			714			1,674		n.m.			3,918			1,880			2,038		n.m.
Discontinued operations		-			3			(3	)	(100.0	%)		139			127			12		9.4	%
Net earnings		2,388			717			1,671		n.m.			4,057			2,007			2,050		n.m.
Dividends on preferred shares		(34	)		(18	)		(16	)	(88.9	%)		(131	)		(70	)		(61	)	(87.1	%)
Net earnings applicable to common shares		2,354			699			1,655		n.m.			3,926			1,937			1,989		n.m.
Net earnings per common share - basic
Continuing operations	$	2.93		$	0.83		$	2.10		n.m.		$	4.71		$	2.10		$	2.61		n.m.
Discontinued operations	$	-		$	0.01		$	(0.01	)	(100.0	%)	$	0.17		$	0.15		$	0.02		13.3	%
Net earnings	$	2.93		$	0.84		$	2.09		n.m.		$	4.88		$	2.25		$	2.63		n.m.
Net earnings per common share - diluted
Continuing operations	$	2.92		$	0.83		$	2.09		n.m.		$	4.70		$	2.10		$	2.60		n.m.
Discontinued operations	$	-		$	0.01		$	(0.01	)	(100.0	%)	$	0.17		$	0.15		$	0.02		13.3	%
Net earnings	$	2.92		$	0.84		$	2.08		n.m.		$	4.87		$	2.25		$	2.62		n.m.
Dividends per common share	$	0.365		$	0.33		$	0.035		10.6	%	$	1.460		$	1.32		$	0.140		10.6	%
Average number of common shares outstanding - basic (millions)		805.2			811.6								804.8			861.4
Average number of common shares outstanding - diluted (millions)		808.0			812.1								806.9			861.6

The following items are included in net earnings:
Net gains on investments
Continuing operations		1,873			410			1,463		n.m.			2,115			419			1,696		n.m.
Discontinued operations		-			2			(2	)	(100.0	%)		137			106			31		29.2	%
Restructuring and other		(96	)		(66	)		(30	)	(45.5	%)		(210	)		(222	)		12		5.4	%
Cost incurred to form the Bell Aliant Regional Communications Income Fund (Bell Aliant)		-			-			-		-			-			(42	)		42		100.0	%
Total		1,777			346			1,431		n.m.			2,042			261			1,781		n.m.
Impact on net earnings per share	$	2.21		$	0.40		$	1.81		n.m.		$	2.54		$	0.30		$	2.24		n.m.
EPS before restructuring and other, net gains on investments, and costs incurred to form Bell Aliant⁽³⁾	$	0.72		$	0.44		$	0.28		63.6	%	$	2.34		$	1.95		$	0.39		20.0	%

(A) Excludes net benefit plan costs
n.m. : not meaningful

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

BCE Inc.
Consolidated Operational Data - Historical Trend

		Total 2007
($ millions, except per share amounts) (unaudited)		Total 2007			Q4 07			Q3 07			Q2 07			Q1 07			Total 2006			Q4 06			Q3 06			Q2 06			Q1 06
Operating revenues		17,866			4,549			4,494			4,438			4,385			17,656			4,532			4,407			4,374			4,343
Cost of revenue, exclusive of depreciation and amortization		(4,170	)		(1,170	)		(1,009	)		(999	)		(992	)		(4,020	)		(1,096	)		(996	)		(958	)		(970	)
Selling, general and administrative expenses^(A)		(6,312	)		(1,598	)		(1,599	)		(1,564	)		(1,551	)		(6,343	)		(1,674	)		(1,581	)		(1,549	)		(1,539	)
Net benefit plan costs		(410	)		(113	)		(97	)		(98	)		(102	)		(511	)		(123	)		(118	)		(134	)		(136	)
EBITDA		6,974			1,668			1,789			1,777			1,740			6,782			1,639			1,712			1,733			1,698
*EBITDA margin*		*39.0*	%		*36.7*	%		39.8	%		40.0	%		39.7	%		38.4	%		36.2	%		38.8	%		39.6	%		39.1	%
Depreciation		(2,550	)		(618	)		(649	)		(651	)		(632	)		(2,505	)		(641	)		(626	)		(629	)		(609	)
Amortization of intangible assets		(649	)		(173	)		(165	)		(156	)		(155	)		(623	)		(155	)		(161	)		(160	)		(147	)
Restructuring and other		(336	)		(150	)		(78	)		(72	)		(36	)		(355	)		(91	)		(126	)		(50	)		(88	)
Operating income		3,439			727			897			898			917			3,299			752			799			894			854
Other income (expense)		2,395			2,288			(5	)		(20	)		132			(188	)		(29	)		(114	)		(36	)		(9	)
Interest expense		(859	)		(211	)		(213	)		(220	)		(215	)		(940	)		(237	)		(244	)		(227	)		(232	)
Pre-tax earnings from continuing operations		4,975			2,804			679			658			834			2,171			486			441			631			613
Income taxes		(725	)		(351	)		(153	)		(8	)		(213	)		(74	)		329			(81	)		(153	)		(169	)
Non-controlling interest		(332	)		(65	)		(84	)		(88	)		(95	)		(217	)		(101	)		(38	)		(37	)		(41	)
Earnings from continuing operations		3,918			2,388			442			562			526			1,880			714			322			441			403
Discontinued operations		139			-			(2	)		138			3			127			3			(20	)		53			91
Net earnings		4,057			2,388			440			700			529			2,007			717			302			494			494
Dividends on preferred shares		(131	)		(34	)		(34	)		(33	)		(30	)		(70	)		(18	)		(17	)		(18	)		(17	)
Net earnings applicable to common shares		3,926			2,354			406			667			499			1,937			699			285			476			477
Net earnings per common share - basic
Continuing operations	$	4.71		$	2.93		$	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	$	4.88		$	2.93		$	0.50		$	0.83		$	0.62		$	2.25		$	0.84		$	0.36		$	0.53		$	0.52
Net earnings per common share - diluted
Continuing operations	$	4.70		$	2.92		$	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	$	4.87		$	2.92		$	0.50		$	0.83		$	0.62		$	2.25		$	0.84		$	0.36		$	0.53		$	0.52
Dividends per common share	$	1.460		$	0.365		$	0.365		$	0.365		$	0.365		$	1.32		$	0.33		$	0.33		$	0.33		$	0.33
Average number of common shares outstanding - basic (millions)		804.8			805.2			804.9			803.2			806.0			861.4			811.6			818.8			896.4			920.5
Average number of common shares outstanding - diluted (millions)		806.9			808.0			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		2,115			1,873			7			132			103			419			410			8			-			1
Discontinued operations		137			-			-			136			1			106			2			(11	)		35			80
Restructuring and other		(210	)		(96	)		(43	)		(46	)		(25	)		(222	)		(66	)		(71	)		(27	)		(58	)
Cost incurred to form Bell Aliant		-			-			-			-			-			(42	)		-			(28	)		(14	)		-
Total		2,042			1,777			(36	)		222			79			261			346			(102	)		(6	)		23
Impact on net earnings per share	$	2.54		$	2.21		$	(0.04	)	$	0.27		$	0.10		$	0.30		$	0.40		$	(0.12	)	$	(0.01	)	$	0.03
EPS before restructuring and other, net gains on investments, and costs incurred to form Bell Aliant	$	2.34		$	0.72		$	0.54		$	0.56		$	0.52		$	1.95		$	0.44		$	0.48		$	0.54		$	0.49

(A) Excludes net benefit plan costs

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

BCE Inc.
Segmented Data ⁽²⁾

($ millions, except where otherwise indicated) (unaudited)	Q4 2007		Q4 2006		$ change		% change		Total 2007		Total 2006		$ change		% change

Revenues

Bell Wireline	2,727		2,745		(18	)	(0.7	%)	10,660		10,763		(103	)	(1.0	%)
Bell Wireless	1,101		1,016		85		8.4	%	4,131		3,827		304		7.9	%
Inter-segment eliminations	(13	)	(11	)	(2	)	(18.2	%)	(48	)	(49	)	1		2.0	%
Total Bell	3,815		3,750		65		1.7	%	14,743		14,541		202		1.4	%
Bell Aliant	858		838		20		2.4	%	3,373		3,301		72		2.2	%
Telesat	45		128		(83	)	(64.8	%)	458		479		(21	)	(4.4	%)
Inter-segment eliminations	(169	)	(184	)	15		8.2	%	(708	)	(665	)	(43	)	(6.5	%)
Total BCE Inc.	4,549		4,532		17		0.4	%	17,866		17,656		210		1.2	%

EBITDA

Bell Wireline	940		892		48		5.4	%	3,848		3,845		3		0.1	%
Margin	*34.5*	%	32.5	%			2.0	pts	*36.1*	%	35.7	%			0.4	pts
Bell Wireless	393		373		20		5.4	%	1,648		1,435		213		14.8	%
Margin	*35.7*	%	36.7	%			(1.0	) pts	*39.9*	%	37.5	%			2.4	pts
Total Bell	1,333		1,265		68		5.4	%	5,496		5,280		216		4.1	%
Margin	*34.9*	%	33.7	%			1.2	pts	*37.3*	%	36.3	%			1.0	pts
Bell Aliant	319		336		(17	)	(5.1	%)	1,303		1,333		(30	)	(2.3	%)
Margin	*37.2*	%	40.1	%			(2.9	) pts	*38.6*	%	40.4	%			(1.8	) pts
Telesat	24		63		(39	)	(61.9	%)	263		263		-		0.0	%
Inter-segment eliminations	(8	)	(25	)	17		68.0	%	(88	)	(94	)	6		6.4	%
Total BCE Inc.	1,668		1,639		29		1.8	%	6,974		6,782		192		2.8	%
Margin	*36.7*	%	36.2	%			0.5	pts	*39.0*	%	38.4	%			0.6	pts

Operating income

Bell Wireline	251		269		(18	)	(6.7	%)	1,397		1,494		(97	)	(6.5	%)
Bell Wireless	287		265		22		8.3	%	1,212		998		214		21.4	%
Total Bell	538		534		4		0.7	%	2,609		2,492		117		4.7	%
Bell Aliant	180		195		(15	)	(7.7	%)	718		699		19		2.7	%
Telesat	12		32		(20	)	(62.5	%)	157		142		15		10.6	%
Inter-segment eliminations	(3	)	(9	)	6		66.7	%	(45	)	(34	)	(11	)	(32.4	%)
Total BCE Inc.	727		752		(25	)	(3.3	%)	3,439		3,299		140		4.2	%

Capital expenditures

Bell Wireline	622		609		(13	)	(2.1	%)	1,970		1,931		(39	)	(2.0	%)
Capital Intensity ⁽⁵⁾	22.8	%	22.2	%			(0.6	) pts	*18.5*	%	17.9	%			(0.6	) pts
Bell Wireless	143		163		20		12.3	%	450		480		30		6.3	%
Capital intensity	13.0	%	16.0	%			3.0	pts	*10.9*	%	12.5	%			1.6	pts
Total Bell	765		772		7		0.9	%	2,420		2,411		(9	)	(0.4	%)
Capital Intensity	*20.1*	%	20.6	%			0.5	pts	*16.4*	%	16.6	%			0.2	pts
Bell Aliant	144		131		(13	)	(9.9	%)	543		517		(26	)	(5.0	%)
Telesat	10		32		22		68.8	%	188		205		17		8.3	%
Total BCE Inc.	919		935		16		1.7	%	3,151		3,133		(18	)	(0.6	%)
Capital Intensity	*20.2*	%	20.6	%			0.4	pts	*17.6*	%	17.7	%			0.1	pts

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

BCE Inc.
Segmented Data - Historical Trend

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

Revenues

Bell Wireline	10,660		2,727		2,641		2,654		2,638		10,763		2,745		2,646		2,676		2,696
Bell Wireless	4,131		1,101		1,072		1,006		952		3,827		1,016		993		937		881
Inter-segment eliminations	(48	)	(13	)	(12	)	(12	)	(11	)	(49	)	(11	)	(11	)	(14	)	(13	)
Total Bell	14,743		3,815		3,701		3,648		3,579		14,541		3,750		3,628		3,599		3,564
Bell Aliant	3,373		858		838		826		851		3,301		838		825		815		823
Telesat	458		45		130		161		122		479		128		113		120		118
Inter-segment eliminations	(708	)	(169	)	(175	)	(197	)	(167	)	(665	)	(184	)	(159	)	(160	)	(162	)
Total BCE Inc.	17,866		4,549		4,494		4,438		4,385		17,656		4,532		4,407		4,374		4,343

EBITDA

Bell Wireline	3,848		940		937		997		974		3,845		892		952		1,005		996
Margin	*36.1*	%	*34.5*	%	35.5	%	37.6	%	36.9	%	35.7	%	32.5	%	36.0	%	37.6	%	36.9	%
Bell Wireless	1,648		393		449		401		405		1,435		373		383		349		330
Margin	*39.9*	%	*35.7*	%	41.9	%	39.9	%	42.5	%	37.5	%	36.7	%	38.6	%	37.2	%	37.5	%
Total Bell	5,496		1,333		1,386		1,398		1,379		5,280		1,265		1,335		1,354		1,326
Margin	*37.3*	%	*34.9*	%	37.4	%	38.3	%	38.5	%	36.3	%	33.7	%	36.8	%	37.6	%	37.2	%
Bell Aliant	1,303		319		343		325		316		1,333		336		340		334		323
Margin	*38.6*	%	*37.2*	%	40.9	%	39.3	%	37.1	%	40.4	%	40.1	%	41.2	%	41.0	%	39.2	%
Telesat	263		24		79		93		67		263		63		61		70		69
Inter-segment eliminations	(88	)	(8	)	(19	)	(39	)	(22	)	(94	)	(25	)	(24	)	(25	)	(20	)
Total BCE Inc.	6,974		1,668		1,789		1,777		1,740		6,782		1,639		1,712		1,733		1,698
Margin	*39.0*	%	*36.7*	%	39.8	%	40.0	%	39.7	%	38.4	%	36.2	%	38.8	%	39.6	%	39.1	%

Operating income

Bell Wireline	1,397		251		340		390		416		1,494		269		340		449		436
Bell Wireless	1,212		287		339		291		295		998		265		276		239		218
Total Bell	2,609		538		679		681		711		2,492		534		616		688		654
Bell Aliant	718		180		178		183		177		699		195		162		173		169
Telesat	157		12		47		60		38		142		32		32		39		39
Inter-segment eliminations	(45	)	(3	)	(7	)	(26	)	(9	)	(34	)	(9	)	(11	)	(6	)	(8	)
Total BCE Inc.	3,439		727		897		898		917		3,299		752		799		894		854

Capital expenditures

Bell Wireline	1,970		622		485		460		403		1,931		609		452		521		349
Capital Intensity	*18.5*	%	*22.8*	%	18.4	%	17.3	%	15.3	%	17.9	%	22.2	%	17.1	%	19.5	%	12.9	%
Bell Wireless	450		143		90		78		139		480		163		133		107		77
Capital Intensity	*10.9*	%	*13.0*	%	8.4	%	7.8	%	14.6	%	12.5	%	16.0	%	13.4	%	11.4	%	8.7	%
Total Bell	2,420		765		575		538		542		2,411		772		585		628		426
Capital Intensity	*16.4*	%	*20.1*	%	15.5	%	14.7	%	15.1	%	16.6	%	20.6	%	16.1	%	17.4	%	12.0	%
Bell Aliant	543		144		140		144		115		517		131		131		143		112
Telesat	188		10		50		63		65		205		32		44		86		43
Total BCE Inc.	3,151		919		765		745		722		3,133		935		760		857		581
Capital Intensity	*17.6*	%	*20.2*	%	17.0	%	16.8	%	16.5	%	17.7	%	20.6	%	17.2	%	19.6	%	13.4	%

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

Bell Wireline ⁽²⁾

($ millions, except where otherwise indicated) (unaudited)	Q4 2007		Q4 2006		% change		Total 2007		Total 2006		% change
Bell Wireline
Local & access	874		925		(5.5	%)	3,586		3,757		(4.6	%)
Long distance	296		316		(6.3	%)	1,219		1,327		(8.1	%)
Data	976		961		1.6	%	3,641		3,599		1.2	%
Video	351		298		17.8	%	1,317		1,150		14.5	%
Equipment & other	184		197		(6.6	%)	722		754		(4.2	%)
Total external revenues	2,681		2,697		(0.6	%)	10,485		10,587		(1.0	%)
Inter-segment revenues	46		48		(4.2	%)	175		176		(0.6	%)
Total Bell Wireline operating revenue	2,727		2,745		(0.7	%)	10,660		10,763		(1.0	%)
Operating expenses	(1,787	)	(1,853	)	3.6	%	(6,812	)	(6,918	)	1.5	%
EBITDA	940		892		5.4	%	3,848		3,845		0.1	%
EBITDA Margin	*34.5*	%	32.5	%	2.0	pts	*36.1*	%	35.7	%	0.4	pts
Operating income	251		269		(6.7	%)	1,397		1,494		(6.5	%)

Capital expenditures	622		609		(2.1	%)	1,970		1,931		(2.0	%)
Capital intensity	22.8	%	22.2	%	(0.6	) pts	18.5	%	17.9	%	(0.6	) pts

Local
Network access services (k)
Residential	4,650		5,161		(9.9	%)	4,650		5,161		(9.9	%)
Business ^{(A) (B)}	3,526		3,584		(1.6	%)	3,526		3,584		(1.6	%)
Total	8,176		8,745		(6.5	%)	8,176		8,745		(6.5	%)

Network access service net activations/(losses) (k)
Residential	(117	)	(149	)	21.5	%	(511	)	(535	)	4.5	%
Business ^{(A) (B)}	(80	)	7		n.m.		-		72		(100.0	%)
Total	(197	)	(142	)	(38.7	%)	(511	)	(463	)	(10.4	%)

Long Distance (LD)
Conversation minutes (M)	3,049		3,369		(9.5	%)	12,500		13,256		(5.7	%)
Average revenue per minute ($)	0.089		0.085		4.7	%	0.091		0.092		(1.1	%)

ISP
High Speed Internet net activations (k) ^(C)	29		31		(6.5	%)	124		154		(19.5	%)
High Speed Internet subscribers EOP ^(D)(k)	2,004		1,877		6.8	%	2,004		1,877		6.8	%

Video (DTH and VDSL)

Video EBITDA	77		25		n.m.		265		163		62.6	%

Net subscriber activations EOP (k)	2		32		(93.8	%)	2		93		(97.8	%)
Total subscribers (k)	1,822		1,820		0.1	%	1,822		1,820		0.1	%
ARPU ⁽⁹⁾($/month)	64		55		16.4	%	60		54		11.1	%
Churn ⁽¹⁰⁾(%) (average per month)	1.3	%	1.0	%	(0.3	) pts	1.2	%	1.0	%	(0.2	) pts


^(A)	In Q4 2007, BCE received formal notification from a major wholesale customer that it is migrating all of its subscribers onto its own network as quickly as possible. This resulted in a 58K decrease in our Business NAS customer base in Q4 2007. The migration is expected to be substantially completed in Q1 2008 at which point we will adjust our beginning-of-period business NAS customer base to write-off the remaining 273K lines.
^(B)	The Q3 2007 opening business network access services subscriber base was decreased by 58K to adjust for an overstatement arising from past methodology for calculating local inter-connections.
^(C)	In Q4 2007, we reduced total net activations for 2007 by 11K and for 2006 by 3K to correct for customer churn adjustments in the first three quarters of 2007 and the fourth quarter of 2006.
^(D)	The Q1 2007 beginning of year High Speed Internet subscriber base was increased by 18K to adjust for prior-year deactivations related to a major upgrade of our order management system. In addition, the Q1 2007 and Q2 2007 beginning of year High Speed Internet subscriber bases were decreased by 4K and 11K respectively to adjust for the removal of customers who had no network usage in 2007.

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

Bell Wireline - Historical Trend

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

Local & access	3,586		874		892		910		910		3,757		925		926		945		961
Long distance	1,219		296		306		307		310		1,327		316		334		336		341
Data	3,641		976		892		880		893		3,599		961		881		873		884
Video	1,317		351		330		322		314		1,150		298		289		286		277
Equipment & other	722		184		174		194		170		754		197		174		194		189
Total external revenues	10,485		2,681		2,594		2,613		2,597		10,587		2,697		2,604		2,634		2,652
Inter-segment revenues	175		46		47		41		41		176		48		42		42		44
Total Bell Wireline operating revenue	10,660		2,727		2,641		2,654		2,638		10,763		2,745		2,646		2,676		2,696
Operating expenses	(6,812	)	(1,787	)	(1,704	)	(1,657	)	(1,664	)	(6,918	)	(1,853	)	(1,694	)	(1,671	)	(1,700	)
EBITDA	3,848		940		937		997		974		3,845		892		952		1,005		996
EBITDA Margin	*36.1*	%	*34.5*	%	35.5	%	37.6	%	36.9	%	35.7	%	32.5	%	36.0	%	37.6	%	36.9	%
Operating income	1,397		251		340		390		416		1,494		269		340		449		436

Capital expenditures	1,970		622		485		460		403		1,931		609		452		521		349
Capital intensity	18.5	%	22.8	%	18.4	%	17.3	%	15.3	%	17.9	%	22.2	%	17.1	%	19.5	%	12.9	%

Local
Network access services (k)
Residential	4,650		4,650		4,767		4,871		5,030		5,161		5,161		5,310		5,400		5,562
Business ^{(A) (B)}	3,526		3,526		3,606		3,653		3,608		3,584		3,584		3,577		3,546		3,513
Total	8,176		8,176		8,373		8,524		8,638		8,745		8,745		8,887		8,946		9,075

Network access service net activations/(losses) (k)
Residential	(511	)	(117	)	(104	)	(159	)	(131	)	(535	)	(149	)	(90	)	(162	)	(134	)
Business ^{(A) (B)}	-		(80	)	11		45		24		72		7		31		33		1
Total	(511	)	(197	)	(93	)	(114	)	(107	)	(463	)	(142	)	(59	)	(129	)	(133	)

Long Distance (LD)
Conversation minutes (M)	12,500		3,049		2,962		3,249		3,240		13,256		3,369		3,266		3,353		3,268
Average revenue per minute ($)	0.091		0.089		0.097		0.088		0.090		0.092		0.085		0.095		0.092		0.096

ISP
High Speed Internet net activations ^(C)(k)	124		29		29		25		41		154		31		61		25		37
High Speed Internet subscribers EOP ^(D)(k)	2,004		2,004		1,975		1,946		1,932		1,877		1,877		1,846		1,785		1,760

Video (DTH and VDSL)

Video EBITDA	265		77		65		68		55		163		25		41		56		41

Net subscriber activations EOP (k)	2		2		3		(7	)	4		93		32		30		19		12
Total subscribers (k)	1,822		1,822		1,820		1,817		1,824		1,820		1,820		1,788		1,758		1,739
ARPU ($/month)	60		64		60		58		57		54		55		54		54		53
Churn (%) (average per month)	1.2	%	1.3	%	1.3	%	1.3	%	1.1	%	1.0	%	1.0	%	1.0	%	1.0	%	0.9	%


^(A)	In Q4 2007, BCE received formal notification from a major wholesale customer that it is migrating all of its subscribers onto their own network as quickly as possible. This resulted in a 58K decrease in our Business NAS customer base in Q4 2007. The migration is expected to be substantially completed in Q1 2008 at which point we will adjust our beginning-of-period business NAS customer base to write-off the remaining 273K lines.
^(B)	The Q3 2007 opening business network access services subscriber base was decreased by 58K to adjust for an overstatement arising from past methodology for calculating local inter-connections.
^(C)	In Q4 2007, we reduced total net activations for 2007 by 11K and for 2006 by 3K to correct for customer churn adjustments in the first three quarters of 2007 and the fourth quarter of 2006.
^(D)	The Q1 2007 beginning of year High Speed Internet subscriber base was increased by 18K to adjust for prior-year deactivations related to a major upgrade of our order management system. In addition, the Q1 2007 and Q2 2007 beginning of year High Speed Internet subscriber bases were decreased by 4K and 11K respectively to adjust for the removal of customers who had no network usage in 2007.

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

Bell Wireless (2)

($ millions, except where otherwise indicated) (unaudited)	Q4 2007		Q4 2006		% change		Total 2007		Total 2006		% change

Bell Wireless

Revenue
Network	973		913		6.6	%	3,754		3,453		8.7	%
Equipment	115		93		23.7	%	332		333		(0.3	%)
Total external Bell Wireless revenues	1,088		1,006		8.2	%	4,086		3,786		7.9	%
Inter-segment	13		10		30.0	%	45		41		9.8	%
Total Bell Wireless operating revenues	1,101		1,016		8.4	%	4,131		3,827		7.9	%
Operating expenses	(708	)	(643	)	(10.1	%)	(2,483	)	(2,392	)	(3.8	%)
EBITDA	393		373		5.4	%	1,648		1,435		14.8	%
EBITDA margin (Total revenues)	*35.7*	%	36.7	%	(1.0	) pts	*39.9*	%	37.5	%	2.4	pts
EBITDA margin (Network revenues)	*40.4*	%	40.9	%	(0.5	) pts	*43.9*	%	41.6	%	2.3	pts
Operating Income	287		265		8.3	%	1,212		998		21.4	%

Capital expenditures	143		163		12.3	%	450		480		6.3	%
Capital intensity	13.0	%	16.0	%	3.0	pts	10.9	%	12.5	%	1.6	pts

Wireless gross activations ^(A)(k)	510		437		16.7	%	1,640		1,531		7.1	%
Post-paid	261		218		19.7	%	910		911		(0.1	%)


Wireless net activations ^(A)(k)	195		212		(8.0	%)	408		513		(20.5	%)
Post-paid	77		65		18.5	%	206		293		(29.7	%)


Wireless subscribers EOP ^{(A) (B)}(k)	6,216		5,954		4.4	%	6,216		5,954		4.4	%
Post-paid	4,450		4,244		4.9	%	4,450		4,244		4.9	%


Average revenue per unit (ARPU) ^(C)($/month)	55		53		3.8	%	54		51		5.9	%
Pre-paid	18		15		20.0	%	17		14		21.4	%
Post-paid	67		66		1.5	%	66		64		3.1	%

Churn ^(C)(%) (average per month)	1.7	%	1.3	%	(0.4	) pts	1.7	%	1.5	%	(0.2	) pts
Pre-paid	2.7	%	1.8	%	(0.9	) pts	2.8	%	2.6	%	(0.2	) pts
Post-paid	1.4	%	1.1	%	(0.3	) pts	1.3	%	1.1	%	(0.2	) pts

Usage per subscriber ^(C)(min/month)	299		291		2.7	%	288		274		5.1	%
Cost of acquisition (COA) ^{(C) (11)}($/sub)	392		445		11.9	%	404		420		3.8	%

Paging subscribers (k)	222		277		(19.9	%)	222		277		(19.9	%)
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 - Fourth Quarter 2007 Page 8

Bell Wireless - Historical Trend

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

Revenue
Network	3,754		973		974		920		887		3,453		913		902		845		793
Equipment	332		115		87		74		56		333		93		81		82		77
Total external Bell Wireless revenues	4,086		1,088		1,061		994		943		3,786		1,006		983		927		870
Inter-segment revenue	45		13		11		12		9		41		10		10		10		11
Total Bell Wireless operating revenues	4,131		1,101		1,072		1,006		952		3,827		1,016		993		937		881
Operating expenses	(2,483	)	(708	)	(623	)	(605	)	(547	)	(2,392	)	(643	)	(610	)	(588	)	(551	)
EBITDA	1,648		393		449		401		405		1,435		373		383		349		330
EBITDA margin (Total revenues)	*39.9*	%	*35.7*	%	41.9	%	39.9	%	42.5	%	37.5	%	36.7	%	38.6	%	37.2	%	37.5	%
EBITDA margin (Network revenues)	*43.9*	%	*40.4*	%	46.1	%	43.6	%	45.7	%	41.6	%	40.9	%	42.5	%	41.3	%	41.6	%
Operating Income	1,212		287		339		291		295		998		265		276		239		218

Capital expenditures	450		143		90		78		139		480		163		133		107		77
Capital intensity	10.9	%	13.0	%	8.4	%	7.8	%	14.6	%	12.5	%	16.0	%	13.4	%	11.4	%	8.7	%

Wireless gross activations ^(A)(k)	1,640		510		445		389		296		1,531		437		385		367		342
Post-paid	910		261		254		228		167		911		218		237		243		213


Wireless net activations ^(A)(k)	408		195		137		63		13		513		212		128		97		76
Post-paid	206		77		76		43		10		293		65		91		100		37


Wireless subscribers EOP ^{(A) (B)}(k)	6,216		6,216		6,021		5,884		5,821		5,954		5,954		5,742		5,614		5,517
Post-paid	4,450		4,450		4,373		4,297		4,254		4,244		4,244		4,179		4,088		3,988


Average revenue per unit (ARPU) ^(C)($/month)	54		55		56		54		52		51		53		53		51		48
Pre-paid	17		18		19		17		15		14		15		16		14		13
Post-paid	66		67		68		65		64		64		66		66		63		61

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

Usage per subscriber ^(C)(min/month)	288		299		297		289		266		274		291		277		277		250
Cost of acquisition (COA) ^(C)($/sub)	404		392		371		442		420		420		445		415		425		391

Paging subscribers (k)	222		222		236		250		262		277		277		293		310		323
Paging average revenue per unit ($/month)	11		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 - Fourth Quarter 2007 Page 9

BCE Inc.
Net debt and other information ⁽²⁾

BCE Inc. - Net debt and preferreds

At December 31, 2007	BCE Inc.
(unaudited)
($ millions, except where otherwise indicated)
			Bell			Inter-segment
	Bell		Aliant		Telesat	eliminations	BCE Inc.
Cash and cash equivalents	(2,610	)	(48	)	-	-	(2,658	)
Debt due within one year	440		277		-	-	717
Long-term debt	8,115		2,506		-	-	10,621
Net debt	5,945		2,735		-	-	8,680
Preferred shares - BCE	2,770		-		-	-	2,770
Net debt and preferreds	8,715		2,735		-	-	11,450

Bell - Balance Sheet Information
(unaudited)
($ millions, except where otherwise indicated)	Dec. 31		September 30		June 30		March 31		Dec. 31
	2007		2007		2007		2007		2006
Net Debt
Long-term debt	8,115		8,123		8,125		8,389		9,171
Debt due within one year	440		1,707		2,115		1,867		1,150
Less: Cash and cash equivalents	(2,610	)	(193	)	(291	)	(23	)	(442	)
Total Net Debt	5,945		9,637		9,949		10,233		9,879
Non-controlling interest	64		63		57		83		1,193
Total shareholders' equity	19,606		16,961		16,931		16,553		15,266
Total Capitalization	25,615		26,661		26,937		26,869		26,338

Net Debt: Total Capitalization	23.2	%	36.1	%	36.9	%	38.1	%	37.5	%
Net Debt: Trailing 12 month EBITDA	1.08		1.78		1.85		1.92		1.87
EBITDA : Interest (trailing 12 month)	7.63		7.19		6.82		6.53		6.20

BCE Inc. - Cash Flow Information
(unaudited)	Q4		Q4						Total		Total
($ millions, except where otherwise indicated)	2007		2006		$ change		% change		2007		2006		$ change		% change

Free Cash Flow (FCF) ⁽³⁾
Cash from operating activities	1,359		1,211		148		12.2	%	4,209		4,056		153		3.8	%
Capital expenditures	(765	)	(772	)	7		0.9	%	(2,420	)	(2,411	)	(9	)	(0.4	%)
Dividends and distributions	(327	)	(301	)	(26	)	(8.6	%)	(1,306	)	(1,310	)	4		0.3	%
Other investing items	7		10		(3	)	(30.0	%)	11		(5	)	16		n.m.
BELL FCF	274		148		126		85.1	%	494		330		164		49.7	%
Bell Aliant FCF	104		49		55		n.m.		399		383		16		4.2	%
Telesat FCF	22		17		5		29.4	%	51		24		27		n.m.
Inter-segment eliminations	(7	)	(14	)	7		50.0	%	(53	)	(52	)	(1	)	(1.9	%)
Total BCE FCF	393		200		193		96.5	%	891		685		206		30.1	%

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

Free Cash Flow (FCF)
Cash from operating activities	4,209		1,359		1,228		967		655		4,056		1,211		1,359		874		612
Capital expenditures	(2,420	)	(765	)	(575	)	(538	)	(542	)	(2,411	)	(772	)	(585	)	(628	)	(426	)
Dividends and distributions	(1,306	)	(327	)	(326	)	(339	)	(314	)	(1,310	)	(301	)	(329	)	(340	)	(340	)
Other investing items	11		7		5		(2	)	1		(5	)	10		(5	)	(8	)	(2	)
BELL FCF	494		274		332		88		(200	)	330		148		440		(102	)	(156	)
Bell Aliant FCF	399		104		63		182		50		383		49		9		226		99
Telesat FCF	51		22		31		(5	)	3		24		17		7		(44	)	44
Inter-segment eliminations	(53	)	(7	)	(5	)	(29	)	(12	)	(52	)	(14	)	(14	)	(14	)	(10	)
Total BCE FCF	891		393		421		236		(159	)	685		200		442		66		(23	)

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

BCE Inc.
Consolidated Balance Sheet Data

	December 31		September 30		June 30		March 31		December 31
($ millions, except where otherwise indicated) (unaudited)	2007		2007		2007		2007		2006
*ASSETS*
Current assets
Cash and cash equivalents	2,658		259		365		106		569
Accounts receivable	1,940		1,955		2,091		1,961		1,864
Future income taxes	71		468		465		489		662
Inventory	266		276		268		330		329
Prepaid expenses	277		317		396		395		235
Current assets of discontinued operations	-		-		-		20		25
Total current assets	5,212		3,275		3,585		3,301		3,684
Capital assets
Property, plant and equipment	18,600		19,569		19,557		19,553		19,533
Finite-life intangible assets	2,491		2,479		2,462		2,480		2,546
Indefinite-life intangible assets	2,913		2,913		2,913		2,913		2,902
Total capital assets	24,004		24,961		24,932		24,946		24,981
Other long-term assets	2,674		3,484		3,357		3,256		3,030
Goodwill	5,907		6,000		5,948		5,906		5,475
Non-current assets of discontinued operations	-		-		-		26		1
Total assets	37,797		37,720		37,822		37,435		37,171
*LIABILITIES*
Current liabilities
Accounts payable and accrued liabilities	3,293		3,393		3,297		2,994		3,234
Interest payable	145		187		165		188		165
Dividends payable	337		338		339		342		315
Debt due within one year	717		1,710		2,023		1,627		972
Current liabilities of discontinued operations	-		-		-		4		2
Total current liabilities	4,492		5,628		5,824		5,155		4,688
Long-term debt	10,621		10,608		10,615		11,339		11,795
Other long-term liabilities	4,349		5,069		4,934		5,025		5,139
Non-current liabilities of discontinued operations	-		-		-		2		2
Total liabilities	19,462		21,305		21,373		21,521		21,624
Non-controlling interest	1,103		1,127		1,209		1,167		2,180
*SHAREHOLDERS' EQUITY*
Preferred shares	2,770		2,770		2,770		2,770		1,670
Common shareholders' equity
Common shares	13,536		13,531		13,512		13,382		13,487
Treasury stock	-		-		-		(4	)	-
Contributed surplus	2,537		2,534		2,534		2,546		2,555
Accumulated other comprehensive income (loss)	68		193		277		282		(2	)
Deficit	(1,679	)	(3,740	)	(3,853	)	(4,229	)	(4,343	)
Total common shareholders' equity	14,462		12,518		12,470		11,977		11,697
Total shareholders' equity	17,232		15,288		15,240		14,747		13,367
Total liabilities and shareholders' equity	37,797		37,720		37,822		37,435		37,171

Number of common shares outstanding	805.3		805.1		804.7		800.9		807.6

Total Net Debt	8,680		12,059		12,273		12,860		12,198
Total Capitalization	27,015		28,474		28,722		28,774		27,745

Key ratios
Net debt : Total Capitalization	32.1	%	42.4	%	42.7	%	44.7	%	44.0	%
Net debt : Trailing 12 month EBITDA	1.24		1.74		1.79		1.88		1.80
EBITDA : Interest (trailing 12 month)	8.12		7.85		7.50		7.39		7.21

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

BCE Inc.
Consolidated Cash Flow Data

		Q4			Q4						Total			Total
($ millions, except where otherwise indicated) (unaudited)		2007			2006			$ change			2007			2006			$ change
Cash flows from operating activities
Net earnings		2,388			717			1,671			4,057			2,007			2,050
less: Earnings from discontinued operations, net of tax		-			3			(3	)		139			127			12
Earnings from continuing operations		2,388			714			1,674			3,918			1,880			2,038
Adjustments to reconcile earnings from continuing operations to cash flows from operating activities:
Depreciation and amortization of intangible assets		791			796			(5	)		3,199			3,128			71
Net benefit plans cost		113			123			(10	)		410			511			(101	)
Restructuring and other		150			91			59			336			355			(19	)
(Gains) losses on investments		(2,280	)		36			(2,316	)		(2,405	)		26			(2,431	)
Future income taxes		190			(359	)		549			403			(13	)		416
Non-controlling interest		65			101			(36	)		332			217			115
Contributions to employee pension plans		(36	)		(51	)		15			(265	)		(172	)		(93	)
Other employee future benefit plan payments		(25	)		(24	)		(1	)		(96	)		(96	)		-
Payments of restructuring and other		(27	)		(31	)		4			(118	)		(225	)		107
Operating assets and liabilities		391			124			267			(10	)		(245	)		235
		1,720			1,520			200			5,704			5,366			338
Capital expenditures		(919	)		(935	)		16			(3,151	)		(3,133	)		(18	)
Other investing activities		8			13			(5	)		13			(2	)		15
Cash dividends paid on preferred shares		(34	)		(22	)		(12	)		(124	)		(84	)		(40	)
Cash dividends/distributions paid by subsidiaries to non-controlling interest		(88	)		(108	)		20			(404	)		(293	)		(111	)
Free Cash Flow from operations, before common dividends		687			468			219			2,038			1,854			184
Cash dividends paid on common shares		(294	)		(268	)		(26	)		(1,147	)		(1,169	)		22
Free Cash Flow from operations, after common dividends		393			200			193			891			685			206
Business acquisitions		-			(5	)		5			(163	)		(71	)		(92	)
Business dispositions		3,123			-			3,123			3,123			-			3,123
Bell Aliant		-			(30	)		30			(7	)		(255	)		248
Going-private costs		(13	)		-			(13	)		(49	)		-			(49	)
Increase in investments		(6	)		(24	)		18			(27	)		(304	)		277
Decrease in investments		129			-			129			192			64			128
Free Cash Flow after investments and divestitures		3,626			141			3,485			3,960			119			3,841
Other financing activities
(Decrease) increase in notes payable and bank advances		(267	)		(302	)		35			211			(57	)		268
Issue of long-term debt		-			675			(675	)		1,071			4,392			(3,321	)
Repayment of long-term debt		(947	)		(2,016	)		1,069			(3,048	)		(4,767	)		1,719
Issue of common shares		5			10			(5	)		153			29			124
Repurchase of common shares		-			(133	)		133			(227	)		(1,241	)		1,014
Issue of equity securities by subsidiaries to non-controlling interest		-			-			-			-			13			(13	)
Redemption of equity securities by subsidiaries from non-controlling interest		(4	)		(50	)		46			(333	)		(305	)		(28	)
Other financing activities		(13	)		(35	)		22			(66	)		(157	)		91
		(1,226	)		(1,851	)		625			(2,239	)		(2,093	)		(146	)
Cash from (used in) continuing operations		2,400			(1,710	)		4,110			1,721			(1,974	)		3,695
Cash flows from (used in) discontinued operations activities		-			2			(2	)		3			10			(7	)
Cash flows (used in) from discontinued investing activities		(1	)		(4	)		3			353			1,473			(1,120	)
Cash flows from discontinued financing activities		-			-			-			-			627			(627	)
Net increase (decrease) in cash and cash equivalents		2,399			(1,712	)		4,111			2,077			136			1,941
Cash and cash equivalents at beginning of period		259			2,293			(2,034	)		581			445			136
Cash and cash equivalents at end of period		2,658			581			2,077			2,658			581			2,077
Consists of:
Cash and cash equivalents of continuing operations		2,658			569			2,089			2,658			569			2,089
Cash and cash equivalents of discontinued operations		-			12			(12	)		-			12			(12	)
Total		2,658			581			2,077			2,658			581			2,077

Other information
Cash flow per share ⁽⁶⁾	$	0.99		$	0.71		$	0.28		$	3.17		$	2.59		$	0.58
Annualized cash flow yield ⁽⁷⁾		8.6	%		7.4	%		1.2	pts		6.4	%		7.3	%		(0.9	) pts
Common dividend payout ⁽⁸⁾		50.7	%		75.0	%		(24.3	) pts		62.4	%		67.7	%		(5.3	) pts

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

BCE Inc.
Consolidated Cash Flow Data - Historical Trend

($ millions, except where otherwise indicated) (unaudited)		Total 2007			Q4 07			Q3 07			Q2 07			Q1 07			Total 2006			Q4 06			Q3 06			Q2 06			Q1 06
Cash flows from operating activities
Net earnings		4,057			2,388			440			700			529			2,007			717			302			494			494
less: Earnings (losses) from discontinued operations, net of tax		139			-			(2	)		138			3			127			3			(20	)		53			91
Earnings from continuing operations		3,918			2,388			442			562			526			1,880			714			322			441			403
Adjustments to reconcile earnings from continuing operations to cash flows from operating activities
Depreciation and amortization of intangible assets		3,199			791			814			807			787			3,128			796			787			789			756
Net benefit plans cost		410			113			97			98			102			511			123			118			134			136
Restructuring and other		336			150			78			72			36			355			91			126			50			88
(Gains) losses on investments		(2,405	)		(2,280	)		(6	)		2			(121	)		26			36			(8	)		-			(2	)
Future income taxes		403			190			214			(112	)		111			(13	)		(359	)		43			105			198
Non-controlling interest		332			65			84			88			95			217			101			38			37			41
Contributions to employee pension plans		(265	)		(36	)		(42	)		(79	)		(108	)		(172	)		(51	)		(49	)		(41	)		(31	)
Other employee future benefit plan payments		(96	)		(25	)		(23	)		(24	)		(24	)		(96	)		(24	)		(24	)		(23	)		(25	)
Payments of restructuring and other		(118	)		(27	)		(20	)		(19	)		(52	)		(225	)		(31	)		(124	)		(34	)		(36	)
Operating assets and liabilities		(10	)		391			(35	)		19			(385	)		(245	)		124			367			(156	)		(580	)
		5,704			1,720			1,603			1,414			967			5,366			1,520			1,596			1,302			948
Capital expenditures		(3,151	)		(919	)		(765	)		(745	)		(722	)		(3,133	)		(935	)		(760	)		(857	)		(581	)
Other investing activities		13			8			4			(1	)		2			(2	)		13			(4	)		(8	)		(3	)
Cash dividends paid on preferred shares		(124	)		(34	)		(34	)		(33	)		(23	)		(84	)		(22	)		(21	)		(20	)		(21	)
Cash dividends/distributions paid by subsidiaries to non-controlling interest		(404	)		(88	)		(94	)		(109	)		(113	)		(293	)		(108	)		(75	)		(49	)		(61	)
Free Cash Flow from operations, before common dividends		2,038			687			714			526			111			1,854			468			736			368			282
Cash dividends paid on common shares		(1,147	)		(294	)		(293	)		(290	)		(270	)		(1,169	)		(268	)		(294	)		(302	)		(305	)
Free Cash Flow from operations, after common dividends		891			393			421			236			(159	)		685			200			442			66			(23	)
Business acquisitions		(163	)		-			(14	)		(2	)		(147	)		(71	)		(5	)		(27	)		(12	)		(27	)
Business dispositions		3,123			3,123			-			-			-			-			-			-			-			-
Bell Aliant		(7	)		-			-			(3	)		(4	)		(255	)		(30	)		(152	)		(51	)		(22	)
Going-private costs		(49	)		(13	)		(36	)		-			-			-			-			-			-			-
Increase in investments		(27	)		(6	)		(5	)		(3	)		(13	)		(304	)		(24	)		(161	)		(105	)		(14	)
Decrease in investments		192			129			50			6			7			64			-			-			13			51
Free Cash Flow after investments and divestitures		3,960			3,626			416			234			(316	)		119			141			102			(89	)		(35	)
Other financing activities
Increase (decrease) in notes payable and bank advances		211			(267	)		(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		(3,048	)		(947	)		(89	)		(837	)		(1,175	)		(4,767	)		(2,016	)		(1,925	)		(529	)		(297	)
Issue of common shares		153			5			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		(333	)		(4	)		(117	)		(138	)		(74	)		(305	)		(50	)		-			(255	)		-
Other financing activities		(66	)		(13	)		(5	)		(7	)		(41	)		(157	)		(35	)		(93	)		(15	)		(14	)
		(2,239	)		(1,226	)		(524	)		(330	)		(159	)		(2,093	)		(1,851	)		1,384			(727	)		(899	)
Cash from (used in) continuing operations		1,721			2,400			(108	)		(96	)		(475	)		(1,974	)		(1,710	)		1,486			(816	)		(934	)
Cash flows from (used in) discontinued operations activities		3			-			-			(2	)		5			10			2			66			30			(88	)
Cash flows from (used in) discontinued investing activities		353			(1	)		2			352			-			1,473			(4	)		603			43			831
Cash flows from (used in) discontinued financing activities		-			-			-			-			-			627			-			26			(23	)		624
Net increase (decrease) in cash and cash equivalents		2,077			2,399			(106	)		254			(470	)		136			(1,712	)		2,181			(766	)		433
Cash and cash equivalents at beginning of period		581			259			365			111			581			445			2,293			112			878			445
Cash and cash equivalents at end of period		2,658			2,658			259			365			111			581			581			2,293			112			878
Consists of:
Cash and cash equivalents of continuing operations		2,658			2,658			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		2,658			2,658			259			365			111			581			581			2,293			112			878

Other information
Cash flow per share	$	3.17		$	0.99		$	1.04		$	0.84		$	0.30		$	2.59		$	0.71		$	0.99		$	0.49		$	0.40
Annualized cash flow yield		6.4	%		8.6	%		8.9	%		6.5	%		1.7	%		7.3	%		7.4	%		12.0	%		6.3	%		4.4	%
Common dividend payout		62.4	%		50.7	%		67.6	%		65.2	%		70.2	%		67.7	%		75.0	%		68.8	%		61.1	%		67.3	%

BCE Inc. Supplementary Financial Information - Fourth 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. 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. On October 31, 2007, we sold Telesat Canada (Telesat), which represents all of our Telesat segment. We have maintained continuing commercial arrangements between Telesat and Bell Express Vu Limited Partnership (Bell Express Vu) that provide Bell ExpressVu continued access to current and expanded satellite capacity. As a result of these arrangements, we have not accounted for Telesat as a discontinued operation.

(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. Accordingly, we operate and manage our reportable segments as strategic business units organized by products and services.

(3)		Non-GAAP Financial Measures EBITDA The term EBITDA (earnings before interest, taxes, depreciation and amortization of intangible assets) 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 define EBITDA as operating revenues less cost of revenue, selling, general and administrative expenses and net benefit plans costs, meaning it represents operating income before depreciation, amortization of intangible assets and restructuring and other. We use EBITDA, among other measures, to assess the operating performance of our ongoing businesses without the effects of depreciation, amortization of intangible assets and restructuring and other. 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 depreciation and amortization of intangible assets 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 does not imply they are 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, 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, 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, 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, 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 non-recurring. The most comparable Canadian GAAP financial measure is EPS.

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

Accompanying Notes (continued)

		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. 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, 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 - Fourth Quarter 2007 Page 15