Supplementary Financial Information BCE Third Quarter 2008

EX-3 4 suppq308.htm SUPPLEMENTARY FINANCIAL INFORMATION - BCE Q3 2008 Supplementary Financial Information BCE Third Quarter 2008

EXHIBIT 3

BCE Inc. ⁽¹⁾Consolidated Operational Data

($ millions, except per share amounts) (unaudited)		Q3 2008			Q3 2007			$ change		% change			YTD 2008			YTD 2007			$ change		% change
Operating revenues		4,460			4,476			(16	)	(0.4	%)		13,244			13,260			(16	)	(0.1	%)
Cost of revenue, exclusive of depreciation and amortization		(1,102	)		(995	)		(107	)	(10.8	%)		(3,251	)		(2,961	)		(290	)	(9.8	%)
Selling, general and administrative expenses ^(A)		(1,521	)		(1,591	)		70		4.4	%		(4,524	)		(4,686	)		162		3.5	%
Net benefit plans cost		(69	)		(97	)		28		28.9	%		(210	)		(297	)		87		29.3	%
EBITDA ⁽³⁾		1,768			1,793			(25	)	(1.4	%)		5,259			5,316			(57	)	(1.1	%)
EBITDA margin ⁽⁴⁾		*39.6*	%		40.1	%				(0.5	) pts		*39.7*	%		40.1	%				(0.4	) pts
Depreciation		(619	)		(649	)		30		4.6	%		(1,854	)		(1,930	)		76		3.9	%
Amortization of intangible assets		(175	)		(163	)		(12	)	(7.4	%)		(545	)		(471	)		(74	)	(15.7	%)
Restructuring and other		(320	)		(78	)		(242	)	n.m.			(674	)		(185	)		(489	)	n.m.
Operating income		654			903			(249	)	(27.6	%)		2,186			2,730			(544	)	(19.9	%)
Other income (expense)		1			(5	)		6		n.m.			28			106			(78	)	(73.6	%)
Interest expense		(193	)		(213	)		20		9.4	%		(584	)		(648	)		64		9.9	%
Pre-tax earnings from continuing operations		462			685			(223	)	(32.6	%)		1,630			2,188			(558	)	(25.5	%)
Income taxes		(82	)		(154	)		72		46.8	%		(384	)		(377	)		(7	)	(1.9	%)
Non-controlling interest		(90	)		(84	)		(6	)	(7.1	%)		(252	)		(266	)		14		5.3	%
Earnings from continuing operations		290			447			(157	)	(35.1	%)		994			1,545			(551	)	(35.7	%)
Discontinued operations		(10	)		(7	)		(3	)	(42.9	%)		(33	)		124			(157	)	n.m.
Net earnings		280			440			(160	)	(36.4	%)		961			1,669			(708	)	(42.4	%)
Dividends on preferred shares		(32	)		(34	)		2		5.9	%		(94	)		(97	)		3		3.1	%
Net earnings applicable to common shares		248			406			(158	)	(38.9	%)		867			1,572			(705	)	(44.8	%)
Net earnings per common share - basic
Continuing operations	$	0.32		$	0.51		$	(0.19	)	(37.3	%)	$	1.12		$	1.80		$	(0.68	)	(37.8	%)
Discontinued operations	$	(0.01	)	$	(0.01	)	$	-		0.0	%	$	(0.04	)	$	0.15		$	(0.19	)	n.m.
Net earnings	$	0.31		$	0.50		$	(0.19	)	(38.0	%)	$	1.08		$	1.95		$	(0.87	)	(44.6	%)
Net earnings per common share - diluted
Continuing operations	$	0.31		$	0.51		$	(0.20	)	(39.2	%)	$	1.11		$	1.80		$	(0.69	)	(38.3	%)
Discontinued operations	$	(0.01	)	$	(0.01	)	$	-		0.0	%	$	(0.04	)	$	0.15		$	(0.19	)	n.m.
Net earnings	$	0.30		$	0.50		$	(0.20	)	(40.0	%)	$	1.07		$	1.95		$	(0.88	)	(45.1	%)
Dividends per common share	$	-		$	0.365		$	(0.365	)	(100.0	%)	$	0.365		$	1.095		$	(0.730	)	(66.7	%)
Average number of common shares outstanding - basic (millions)		806.0			804.9								805.6			804.7
Average number of common shares outstanding - diluted (millions)		808.3			807.8								807.4			806.5

The following items are included in net earnings:
Net (losses) gains on investments
Continuing operations		(14	)		7			(21	)	n.m.			(12	)		242			(254	)	n.m.
Discontinued operations		(6	)		-			(6	)	n.m.			(26	)		136			(162	)	n.m.
Restructuring and other		(220	)		(43	)		(177	)	n.m.			(465	)		(113	)		(352	)	n.m.
Total		(240	)		(36	)		(204	)	n.m.			(503	)		265			(768	)	n.m.
Impact on net earnings per share	$	(0.29	)	$	(0.04	)	$	(0.25	)	n.m.		$	(0.62	)	$	0.33		$	(0.95	)	n.m.
EPS before restructuring and other and net gains on investments ⁽³⁾	$	0.60		$	0.54		$	0.06		11.1	%	$	1.70		$	1.62		$	0.08		4.9	%

(A)	Excludes net benefit plans cost
n.m. : not meaningful

BCE Inc. Supplementary Financial Information – Third Quarter 2008 Page 2

BCE Inc.
Consolidated Operational Data - Historical Trend

($ millions, except per share amounts) (unaudited)		YTD 2008			Q3 08			Q2 08			Q1 08			Total 2007			Q4 07			Q3 07			Q2 07			Q1 07
Operating revenues		13,244			4,460			4,413			4,371			17,787			4,527			4,476			4,416			4,368
Cost of revenue, exclusive of depreciation and amortization		(3,251	)		(1,102	)		(1,087	)		(1,062	)		(4,108	)		(1,147	)		(995	)		(983	)		(983	)
Selling, general and administrative expenses ^(A)		(4,524	)		(1,521	)		(1,515	)		(1,488	)		(6,280	)		(1,594	)		(1,591	)		(1,555	)		(1,540	)
Net benefit plans cost		(210	)		(69	)		(70	)		(71	)		(410	)		(113	)		(97	)		(98	)		(102	)
EBITDA		5,259			1,768			1,741			1,750			6,989			1,673			1,793			1,780			1,743
*EBITDA margin*		*39.7*	%		*39.6*	%		39.5	%		40.0	%		39.3	%		37.0	%		40.1	%		40.3	%		39.9	%
Depreciation		(1,854	)		(619	)		(612	)		(623	)		(2,547	)		(617	)		(649	)		(649	)		(632	)
Amortization of intangible assets		(545	)		(175	)		(175	)		(195	)		(637	)		(166	)		(163	)		(155	)		(153	)
Restructuring and other		(674	)		(320	)		(71	)		(283	)		(331	)		(146	)		(78	)		(71	)		(36	)
Operating income		2,186			654			883			649			3,474			744			903			905			922
Other income (expense)		28			1			4			23			2,405			2,299			(5	)		(22	)		133
Interest expense		(584	)		(193	)		(193	)		(198	)		(859	)		(211	)		(213	)		(220	)		(215	)
Pre-tax earnings from continuing operations		1,630			462			694			474			5,020			2,832			685			663			840
Income taxes		(384	)		(82	)		(193	)		(109	)		(733	)		(356	)		(154	)		(10	)		(213	)
Non-controlling interest		(252	)		(90	)		(88	)		(74	)		(331	)		(65	)		(84	)		(86	)		(96	)
Earnings from continuing operations		994			290			413			291			3,956			2,411			447			567			531
Discontinued operations		(33	)		(10	)		(21	)		(2	)		101			(23	)		(7	)		133			(2	)
Net earnings		961			280			392			289			4,057			2,388			440			700			529
Dividends on preferred shares		(94	)		(32	)		(31	)		(31	)		(131	)		(34	)		(34	)		(33	)		(30	)
Net earnings applicable to common shares		867			248			361			258			3,926			2,354			406			667			499
Net earnings per common share - basic
Continuing operations	$	1.12		$	0.32		$	0.48		$	0.32		$	4.75		$	2.95		$	0.51		$	0.67		$	0.62
Discontinued operations	$	(0.04	)	$	(0.01	)	$	(0.03	)	$	-		$	0.13		$	(0.02	)	$	(0.01	)	$	0.16		$	-
Net earnings	$	1.08		$	0.31		$	0.45		$	0.32		$	4.88		$	2.93		$	0.50		$	0.83		$	0.62
Net earnings per common share - diluted
Continuing operations	$	1.11		$	0.31		$	0.48		$	0.32		$	4.74		$	2.94		$	0.51		$	0.67		$	0.62
Discontinued operations	$	(0.04	)	$	(0.01	)	$	(0.03	)	$	-		$	0.13		$	(0.02	)	$	(0.01	)	$	0.16		$	-
Net earnings	$	1.07		$	0.30		$	0.45		$	0.32		$	4.87		$	2.92		$	0.50		$	0.83		$	0.62
Dividends per common share	$	0.365		$	-		$	-		$	0.365		$	1.460		$	0.365		$	0.365		$	0.365		$	0.365
Average number of common shares outstanding - basic (millions)		805.6			806.0			805.6			805.3			804.8			805.2			804.9			803.2			806.0
Average number of common shares outstanding - diluted (millions)		807.4			808.3			807.2			807.1			806.9			808.0			807.8			805.5			806.6

The following items are included in net earnings:
Net (losses) gains on investments
Continuing operations		(12	)		(14	)		4			(2	)		2,125			1,883			7			132			103
Discontinued operations		(26	)		(6	)		(20	)		-			123			(13	)		-			135			1
Restructuring and other		(465	)		(220	)		(48	)		(197	)		(206	)		(93	)		(43	)		(45	)		(25	)
Total		(503	)		(240	)		(64	)		(199	)		2,042			1,777			(36	)		222			79
Impact on net earnings per share	$	(0.62	)	$	(0.29	)	$	(0.08	)	$	(0.25	)	$	2.54		$	2.21		$	(0.04	)	$	0.27		$	0.10
EPS before restructuring and other and net gains on investments	$	1.70		$	0.60		$	0.53		$	0.57		$	2.34		$	0.72		$	0.54		$	0.56		$	0.52

(A)	Excludes net benefit plans cost

BCE Inc. Supplementary Financial Information – Third Quarter 2008 Page 3

BCE Inc.
Segmented Data ⁽²⁾

($ millions, except where otherwise indicated) (unaudited)	Q3 2008		Q3 2007		$ change		% change		YTD 2008		YTD 2007		$ change		% change

Revenues
Bell Wireline	2,642		2,669		(27	)	(1.0	%)	7,948		8,001		(53	)	(0.7	%)
Bell Wireless	1,180		1,080		100		9.3	%	3,346		3,055		291		9.5	%
Inter-segment eliminations	(65	)	(60	)	(5	)	(8.3	%)	(187	)	(166	)	(21	)	(12.7	%)
Total Bell	3,757		3,689		68		1.8	%	11,107		10,890		217		2.0	%
Bell Aliant	821		832		(11	)	(1.3	%)	2,517		2,496		21		0.8	%
Telesat	-		130		(130	)	n.m.		-		413		(413	)	n.m.
Inter-segment eliminations	(118	)	(175	)	57		32.6	%	(380	)	(539	)	159		29.5	%
Total BCE Inc.	4,460		4,476		(16	)	(0.4	%)	13,244		13,260		(16	)	(0.1	%)

EBITDA
Bell Wireline	951		944		7		0.7	%	2,926		2,926		-		0.0	%
Margin	*36.0*	%	35.4	%			0.6	pts	*36.8*	%	36.6	%			0.2	pts
Bell Wireless	474		447		27		6.0	%	1,326		1,249		77		6.2	%
Margin	*40.2*	%	41.4	%			(1.2	) pt	*39.6*	%	40.9	%			(1.3	) pts
Total Bell	1,425		1,391		34		2.4	%	4,252		4,175		77		1.8	%
Margin	*37.9*	%	37.7	%			0.2	pts	*38.3*	%	38.3	%			0.0	pts
Bell Aliant	343		343		-		0.0	%	1,007		982		25		2.5	%
Margin	*41.8*	%	41.2	%			0.6	pts	*40.0*	%	39.3	%			0.7	pts
Telesat	-		80		(80	)	n.m.		-		240		(240	)	n.m.
Inter-segment eliminations	-		(21	)	21		n.m.		-		(81	)	81		n.m.
Total BCE Inc.	1,768		1,793		(25	)	(1.4	%)	5,259		5,316		(57	)	(1.1	%)
Margin	*39.6*	%	40.1	%			(0.5	) pts	*39.7*	%	40.1	%			(0.4	) pts

Operating income
Bell Wireline	113		351		(238	)	(67.8	%)	661		1,177		(516	)	(43.8	%)
Bell Wireless	338		336		2		0.6	%	947		915		32		3.5	%
Total Bell	451		687		(236	)	(34.4	%)	1,608		2,092		(484	)	(23.1	%)
Bell Aliant	203		177		26		14.7	%	578		536		42		7.8	%
Telesat	-		47		(47	)	n.m.		-		145		(145	)	n.m.
Inter-segment eliminations	-		(8	)	8		n.m.		-		(43	)	43		n.m.
Total BCE Inc.	654		903		(249	)	(27.6	%)	2,186		2,730		(544	)	(19.9	%)

Capital expenditures
Bell Wireline	473		482		9		1.9	%	1,341		1,339		(2	)	(0.1	%)
Capital Intensity ⁽⁵⁾	17.9	%	18.1	%			0.2	pts	*16.9*	%	16.7	%			(0.2	) pts
Bell Wireless	93		91		(2	)	(2.2	%)	264		312		48		15.4	%
Capital intensity	7.9	%	8.4	%			0.5	pts	*7.9*	%	10.2	%			2.3	pts
Total Bell	566		573		7		1.2	%	1,605		1,651		46		2.8	%
Capital Intensity	*15.1*	%	15.5	%			0.4	pt	*14.5*	%	15.2	%			0.7	pts
Bell Aliant	139		140		1		0.7	%	361		399		38		9.5	%
Telesat	-		50		50		n.m.		-		178		178		n.m.
Total BCE Inc.	705		763		58		7.6	%	1,966		2,228		262		11.8	%
Capital Intensity	*15.8*	%	17.0	%			1.2	pts	*14.8*	%	16.8	%			2.0	pts

BCE Inc. Supplementary Financial Information – Third Quarter 2008 Page 4

BCE Inc.
Segmented Data - Historical Trend

($ millions, except where otherwise indicated) (unaudited)	YTD 2008		Q3 08		Q2 08		Q1 08		Total 2007		Q4 07		Q3 07		Q2 07		Q1 07

Revenues
Bell Wireline	7,948		2,642		2,640		2,666		10,753		2,752		2,669		2,679		2,653
Bell Wireless	3,346		1,180		1,123		1,043		4,164		1,109		1,080		1,016		959
Inter-segment eliminations	(187	)	(65	)	(64	)	(58	)	(227	)	(61	)	(60	)	(60	)	(46	)
Total Bell	11,107		3,757		3,699		3,651		14,690		3,800		3,689		3,635		3,566
Bell Aliant	2,517		821		838		858		3,347		851		832		817		847
Telesat	-		-		-		-		458		45		130		161		122
Inter-segment eliminations	(380	)	(118	)	(124	)	(138	)	(708	)	(169	)	(175	)	(197	)	(167	)
Total BCE Inc.	13,244		4,460		4,413		4,371		17,787		4,527		4,476		4,416		4,368

EBITDA
Bell Wireline	2,926		951		963		1,012		3,874		948		944		1,002		980
Margin	*36.8*	%	*36.0*	%	36.5	%	38.0	%	36.0	%	34.4	%	35.4	%	37.4	%	36.9	%
Bell Wireless	1,326		474		442		410		1,640		391		447		399		403
Margin	*39.6*	%	*40.2*	%	39.4	%	39.3	%	39.4	%	35.3	%	41.4	%	39.3	%	42.0	%
Total Bell	4,252		1,425		1,405		1,422		5,514		1,339		1,391		1,401		1,383
Margin	*38.3*	%	*37.9*	%	38.0	%	38.9	%	37.5	%	35.2	%	37.7	%	38.5	%	38.8	%
Bell Aliant	1,007		343		336		328		1,299		317		343		324		315
Margin	*40.0*	%	*41.8*	%	40.1	%	38.2	%	38.8	%	37.3	%	41.2	%	39.7	%	37.2	%
Telesat	-		-		-		-		263		23		80		93		67
Inter-segment eliminations	-		-		-		-		(87	)	(6	)	(21	)	(38	)	(22	)
Total BCE Inc.	5,259		1,768		1,741		1,750		6,989		1,673		1,793		1,780		1,743
Margin	*39.7*	%	*39.6*	%	39.5	%	40.0	%	39.3	%	37.0	%	40.1	%	40.3	%	39.9	%

Operating income
Bell Wireline	661		113		368		180		1,449		272		351		401		425
Bell Wireless	947		338		316		293		1,198		283		336		288		291
Total Bell	1,608		451		684		473		2,647		555		687		689		716
Bell Aliant	578		203		199		176		714		178		177		182		177
Telesat	-		-		-		-		157		12		47		60		38
Inter-segment eliminations	-		-		-		-		(44	)	(1	)	(8	)	(26	)	(9	)
Total BCE Inc.	2,186		654		883		649		3,474		744		903		905		922

Capital expenditures
Bell Wireline	1,341		473		479		389		1,960		621		482		458		399
Capital Intensity	*16.9*	%	*17.9*	%	18.1	%	14.6	%	18.2	%	22.6	%	18.1	%	17.1	%	15.0	%
Bell Wireless	264		93		104		67		455		143		91		80		141
Capital intensity	*7.9*	%	*7.9*	%	9.3	%	6.4	%	10.9	%	12.9	%	8.4	%	7.9	%	14.7	%
Total Bell	1,605		566		583		456		2,415		764		573		538		540
Capital Intensity	*14.5*	%	*15.1*	%	15.8	%	12.5	%	16.4	%	20.1	%	15.5	%	14.8	%	15.1	%
Bell Aliant	361		139		127		95		541		142		140		144		115
Telesat	-		-		-		-		188		10		50		63		65
Total BCE Inc.	1,966		705		710		551		3,144		916		763		745		720
Capital Intensity	*14.8*	%	*15.8*	%	16.1	%	12.6	%	17.7	%	20.2	%	17.0	%	16.9	%	16.5	%

BCE Inc. Supplementary Financial Information – Third Quarter 2008 Page 5

Bell Wireline ⁽²⁾

	Q3		Q3				YTD		YTD
($ millions, except where otherwise indicated) (unaudited)	2008		2007		% change		2008		2007		% change
Bell Wireline
Local & access	833		900		(7.4	%)	2,535		2,735		(7.3	%)
Long distance	290		306		(5.2	%)	886		923		(4.0	%)
Data	913		880		3.8	%	2,716		2,623		3.5	%
Video	363		330		10.0	%	1,075		966		11.3	%
Equipment & other	146		161		(9.3	%)	461		504		(8.5	%)
Total external revenues	2,545		2,577		(1.2	%)	7,673		7,751		(1.0	%)
Inter-segment revenues	97		92		5.4	%	275		250		10.0	%
Total Bell Wireline operating revenue	2,642		2,669		(1.0	%)	7,948		8,001		(0.7	%)
Operating expenses	(1,691	)	(1,725	)	2.0	%	(5,022	)	(5,075	)	1.0	%
EBITDA	951		944		0.7	%	2,926		2,926		0.0	%
EBITDA Margin	*36.0*	%	35.4	%	0.6	pts	*36.8*	%	36.6	%	0.2	pts
Operating income	113		351		(67.8	%)	661		1,177		(43.8	%)
Capital expenditures	473		482		1.9	%	1,341		1,339		(0.1	%)
Capital intensity	17.9	%	18.1	%	0.2	pts	16.9	%	16.7	%	(0.2	) pts
Local
Network access services (NAS) (k)
Residential ^(A)	4,303		4,767		(9.7	%)	4,303		4,767		(9.7	%)
Business ^(B) (C)	3,233		3,606		(10.3	%)	3,233		3,606		(10.3	%)
Total	7,536		8,373		(10.0	%)	7,536		8,373		(10.0	%)
Network access service net activations/(losses) (k)
Residential	(72	)	(104	)	30.8	%	(303	)	(394	)	23.1	%
Business ^(B) (C)	-		11		(100.0	%)	(20	)	80		n.m.
Total	(72	)	(93	)	22.6	%	(323	)	(314	)	(2.9	%)
ADJUSTED ^(D)
Network access services (k)
Residential ^(D)	4,303		4,723		(8.9	%)	4,303		4,723		(8.9	%)
Business ^(D)	3,233		3,275		(1.3	%)	3,233		3,275		(1.3	%)
Total	7,536		7,998		(5.8	%)	7,536		7,998		(5.8	%)
Network access service net activations/(losses) (k)
Residential	(72	)	(104	)	30.8	%	(303	)	(394	)	23.1	%
Business ^(E)	-		(13	)	100.0	%	(20	)	(47	)	57.4	%
Total	(72	)	(117	)	38.5	%	(323	)	(441	)	26.8	%
Long Distance (LD)
Conversation minutes (M)	2,853		2,962		(3.7	%)	8,768		9,451		(7.2	%)
Average revenue per minute ($)	0.093		0.097		(4.1	%)	0.092		0.091		1.1	%
ISP
High Speed Internet net activations ^(F) (k)	33		29		13.8	%	42		95		(55.8	%)
High Speed Internet subscribers EOP^(G)(k)	2,046		1,975		3.6	%	2,046		1,975		3.6	%
Video (DTH and VDSL)
Video EBITDA	76		65		16.9	%	200		188		6.4	%
Net subscriber activations (k)	7		3		n.m.		16		-		n.m.
Total subscribers EOP (k)	1,838		1,820		1.0	%	1,838		1,820		1.0	%
ARPU ⁽⁶⁾($/month)	65		60		8.3	%	65		58		12.1	%
Churn ⁽⁷⁾(%) (average per month)	1.4	%	1.3	%	(0.1	) pts	1.2	%	1.2	%	0.0	pts

(A)	At the beginning of Q1 2008, an adjustment of 44k was made to our NAS count, reflecting an extensive review of our historical customer account records.

(B)	In Q1 2008, we adjusted our beginning-of-period business NAS customer base to write-off 273k lines following formal notification received from a major wholesale customer in Q4 2007 that it was in the process of migrating all of its subscribers onto its own network facilities.

(C)	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.

(D)	NAS has been adjusted for 2007 to reflect notes A and B above.

(E)	NAS net activations/(losses) throughout 2007 have been adjusted to reflect note B above.

(F)	In Q4 2007, we reduced total net activations by 11k to correct for customer churn adjustments in the first three quarters of 2007.

(G)

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 – Third Quarter 2008 Page 6

Bell Wireline - Historical Trend

	YTD								Total
($ millions, except where otherwise indicated) (unaudited)	2008		Q3 08		Q2 08		Q1 08		2007		Q4 07		Q3 07		Q2 07		Q1 07
Bell Wireline
Local & access	2,535		833		845		857		3,617		882		900		918		917
Long distance	886		290		298		298		1,219		296		306		307		310
Data	2,716		913		898		905		3,583		960		880		865		878
Video	1,075		363		356		356		1,317		351		330		322		314
Equipment & other	461		146		152		163		678		174		161		182		161
Total external revenues	7,673		2,545		2,549		2,579		10,414		2,663		2,577		2,594		2,580
Inter-segment revenues	275		97		91		87		339		89		92		85		73
Total Bell Wireline operating revenue	7,948		2,642		2,640		2,666		10,753		2,752		2,669		2,679		2,653
Operating expenses	(5,022	)	(1,691	)	(1,677	)	(1,654	)	(6,879	)	(1,804	)	(1,725	)	(1,677	)	(1,673	)
EBITDA	2,926		951		963		1,012		3,874		948		944		1,002		980
EBITDA Margin	*36.8*	%	*36.0*	%	36.5	%	38.0	%	36.0	%	34.4	%	35.4	%	37.4	%	36.9	%
Operating income	661		113		368		180		1,449		272		351		401		425
Capital expenditures	1,341		473		479		389		1,960		621		482		458		399
Capital intensity	16.9	%	17.9	%	18.1	%	14.6	%	18.2	%	22.6	%	18.1	%	17.1	%	15.0	%
Local
Network access services (NAS) (k)
Residential ^(A)	4,303		4,303		4,375		4,500		4,650		4,650		4,767		4,871		5,030
Business ^(B) (C)	3,233		3,233		3,233		3,240		3,526		3,526		3,606		3,653		3,608
Total	7,536		7,536		7,608		7,740		8,176		8,176		8,373		8,524		8,638
Network access service net activations/(losses) (k)
Residential	(303	)	(72	)	(125	)	(106	)	(511	)	(117	)	(104	)	(159	)	(131	)
Business ^(B) (C)	(20	)	-		(7	)	(13	)	-		(80	)	11		45		24
Total	(323	)	(72	)	(132	)	(119	)	(511	)	(197	)	(93	)	(114	)	(107	)
ADJUSTED ^(D)
Network access services (k)
Residential ^(D)	4,303		4,303		4,375		4,500		4,606		4,606		4,723		4,827		4,986
Business ^(D)	3,233		3,233		3,233		3,240		3,253		3,253		3,275		3,288		3,300
Total	7,536		7,536		7,608		7,740		7,859		7,859		7,998		8,115		8,286
Network access service net activations/(losses) (k)
Residential	(303	)	(72	)	(125	)	(106	)	(511	)	(117	)	(104	)	(159	)	(131	)
Business ^(E)	(20	)	-		(7	)	(13	)	(69	)	(22	)	(13	)	(12	)	(22	)
Total	(323	)	(72	)	(132	)	(119	)	(580	)	(139	)	(117	)	(171	)	(153	)
Long Distance (LD)
Conversation minutes (M)	8,768		2,853		2,985		2,930		12,500		3,049		2,962		3,249		3,240
Average revenue per minute ($)	0.092		0.093		0.089		0.093		0.091		0.089		0.097		0.088		0.090
ISP
High Speed Internet net activations ^(F)(k)	42		33		(1	)	10		124		29		29		25		41
High Speed Internet subscribers EOP ^(G)(k)	2,046		2,046		2,013		2,014		2,004		2,004		1,975		1,946		1,932
Video (DTH and VDSL)
Video EBITDA	200		76		47		77		265		77		65		68		55
Net subscriber activations (k)	16		7		8		1		2		2		3		(7	)	4
Total subscribers EOP (k)	1,838		1,838		1,831		1,823		1,822		1,822		1,820		1,817		1,824
ARPU ($/month)	65		65		64		65		60		64		60		58		57
Churn (%) (average per month)	1.2	%	1.4	%	1.1	%	1.1	%	1.2	%	1.3	%	1.3	%	1.3	%	1.1	%

(A)	At the beginning of Q1 2008, an adjustment of 44k was made to our NAS count, reflecting an extensive review of our historical customer account records.

(B)	In Q1 2008, we adjusted our beginning-of-period business NAS customer base to write-off 273k lines following formal notification received from a major wholesale customer in Q4 2007 that it was in the process of migrating all of its subscribers onto its own network facilities.

(C)	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.

(D)	NAS has been adjusted for 2007 to reflect notes A and B above.

(E)	NAS net activations/(losses) throughout 2007 have been adjusted to reflect note B above.

(F)	In Q4 2007, we reduced total net activations by 11k to correct for customer churn adjustments in the first three quarters of 2007.
^(G)	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 – Third Quarter 2008 Page 7

Bell Wireless ⁽²⁾

	Q3		Q3				YTD		YTD
($ millions, except where otherwise indicated) (unaudited)	2008		2007		% change		2008		2007		% change
Bell Wireless
Revenue
Network	1,061		978		8.5	%	3,025		2,793		8.3	%
Equipment	109		88		23.9	%	285		220		29.5	%
Total external Bell Wireless revenues	1,170		1,066		9.8	%	3,310		3,013		9.9	%
Inter-segment	10		14		(28.6	%)	36		42		(14.3	%)
Total Bell Wireless operating revenues	1,180		1,080		9.3	%	3,346		3,055		9.5	%
Operating expenses	(706	)	(633	)	(11.5	%)	(2,020	)	(1,806	)	(11.8	%)
EBITDA	474		447		6.0	%	1,326		1,249		6.2	%
EBITDA margin (Total revenues)	*40.2*	%	41.4	%	(1.2	) pt	*39.6*	%	40.9	%	(1.3	) pts
EBITDA margin (Network revenues)	*44.7*	%	45.7	%	(1.0	) pts	*43.8*	%	44.7	%	(0.9	) pts
Operating Income	338		336		0.6	%	947		915		3.5	%

Capital expenditures	93		91		(2.2	%)	264		312		15.4	%
Capital intensity	7.9	%	8.4	%	0.5	pts	7.9	%	10.2	%	2.3	pts
Wireless gross activations ^(A)(k)	439		445		(1.3	%)	1,181		1,130		4.5	%
Post-paid	267		254		5.1	%	718		649		10.6	%
Wireless net activations ^(A)(k)	117		137		(14.6	%)	234		213		9.9	%
Post-paid	113		76		48.7	%	252		129		95.3	%
Wireless subscribers EOP^{(A) (B) (C)}(k)	6,449		6,021		7.1	%	6,449		6,021		7.1	%
Post-paid	4,708		4,373		7.7	%	4,708		4,373		7.7	%
Average revenue per unit (ARPU) ^(D)($/month)	56		56		0.0	%	54		54		0.0	%
Pre-paid	18		19		(5.3	%)	17		17		0.0	%
Post-paid	68		68		0.0	%	66		66		0.0	%
Churn (%) ^(D)(average per month)	1.6	%	1.7	%	0.1	pts	1.6	%	1.7	%	0.1	pts
Pre-paid	3.2	%	2.7	%	(0.5	) pts	3.0	%	2.9	%	(0.1	) pts
Post-paid	1.1	%	1.4	%	0.3	pts	1.2	%	1.3	%	0.1	pts
Usage per subscriber ^(D)(min/month)	302		297		1.7	%	295		283		4.2	%
Cost of acquisition (COA) ^{(D) (8)}($/sub)	398		371		(7.3	%)	403		408		1.2	%
Paging subscribers (k)	193		236		(18.2	%)	193		236		(18.2	%)
Paging average revenue per unit ($/month)	11		11		0.0	%	11		11		0.0	%

(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)	The Q2 2008 beginning of period wireless subscriber base was decreased by 1k (postpaid increased by 6k while pre-paid decreased by 7k) as a result of the integration of Aliant Mobility’s billing system.

(D)	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 2008 Page 8

Bell Wireless - Historical Trend

($ millions, except where otherwise indicated) (unaudited)	YTD 2008		Q3 08		Q2 08		Q1 08		Total 2007		Q4 07		Q3 07		Q2 07		Q1 07
Bell Wireless
Revenue
Network	3,025		1,061		1,008		956		3,773		980		978		925		890
Equipment	285		109		102		74		332		112		88		75		57
Total external Bell Wireless revenues	3,310		1,170		1,110		1,030		4,105		1,092		1,066		1,000		947
Inter-segment	36		10		13		13		59		17		14		16		12
Total Bell Wireless operating revenues	3,346		1,180		1,123		1,043		4,164		1,109		1,080		1,016		959
Operating expenses	(2,020	)	(706	)	(681	)	(633	)	(2,524	)	(718	)	(633	)	(617	)	(556	)
EBITDA	1,326		474		442		410		1,640		391		447		399		403
EBITDA margin (Total revenues)	*39.6*	%	*40.2*	%	39.4	%	39.3	%	39.4	%	35.3	%	41.4	%	39.3	%	42.0	%
EBITDA margin (Network revenues)	*43.8*	%	*44.7*	%	43.8	%	42.9	%	43.5	%	39.9	%	45.7	%	43.1	%	45.3	%
Operating Income	947		338		316		293		1,198		283		336		288		291

Capital expenditures	264		93		104		67		455		143		91		80		141
Capital intensity	7.9	%	7.9	%	9.3	%	6.4	%	10.9	%	12.9	%	8.4	%	7.9	%	14.7	%
Wireless gross activations ^(A)(k)	1,181		439		391		351		1,640		510		445		389		296
Post-paid	718		267		253		198		910		261		254		228		167
Wireless net activations ^(A)(k)	234		117		83		34		408		195		137		63		13
Post-paid	252		113		111		28		206		77		76		43		10
Wireless subscribers EOP ^{(A) (B) (C)}(k)	6,449		6,449		6,332		6,250		6,216		6,216		6,021		5,884		5,821
Post-paid	4,708		4,708		4,595		4,478		4,450		4,450		4,373		4,297		4,254
Average revenue per unit (ARPU) ^(D)($/month)	54		56		54		52		54		55		56		54		52
Pre-paid	17		18		17		17		17		18		19		17		15
Post-paid	66		68		66		64		66		67		68		65		64
Churn (%) ^(D)(average per month)	1.6	%	1.6	%	1.6	%	1.6	%	1.7	%	1.7	%	1.7	%	1.8	%	1.6	%
Pre-paid	3.0	%	3.2	%	3.0	%	2.8	%	2.8	%	2.7	%	2.7	%	3.1	%	2.9	%
Post-paid	1.2	%	1.1	%	1.1	%	1.3	%	1.3	%	1.4	%	1.4	%	1.4	%	1.2	%
Usage per subscriber ^(D)(min/month)	295		302		305		281		288		299		297		289		266
Cost of acquisition (COA) ^(D)($/sub)	403		398		417		396		404		392		371		442		420

Paging subscribers (k)	193		193		210		216		222		222		236		250		262
Paging average revenue per unit ($/month)	11		11		11		11		11		11		11		11		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)	The Q2 2008 beginning of period wireless subscriber base was decreased by 1k (postpaid increased by 6k while pre-paid decreased by 7k) as a result of the integration of Aliant Mobility’s billing system.
(D)	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 2008 Page 9

BCE Inc.
Net debt and other information ⁽²⁾

BCE Inc. - Net debt and preferreds

At September 30, 2008	BCE Inc.
(unaudited)
($ millions, except where otherwise indicated)
			Bell		Inter-segment
	Bell		Aliant		eliminations	BCE Inc.
Cash and cash equivalents	(2,553	)	(25	)	-	(2,578	)
Debt due within one year	1,029		352		-	1,381
Long-term debt	7,546		2,451		-	9,997
Net debt	6,022		2,778		-	8,800
Preferred shares - BCE	2,770		-		-	2,770
Net debt and preferreds	8,792		2,778		-	11,570

Bell - Balance Sheet Information
(unaudited)
($ millions, except where otherwise indicated)	Sept. 30		June 30		March 31		Dec. 31
	2008		2008		2008		2007
Net Debt
Long-term debt	7,546		7,381		8,116		8,116
Debt due within one year	1,029		1,055		393		440
Less: Cash and cash equivalents	(2,553	)	(2,669	)	(2,469	)	(2,607	)
Total Net Debt	6,022		5,767		6,040		5,949
Non-controlling interest	84		80		65		64
Total shareholders’ equity	20,143		19,948		19,639		19,606
Total Capitalization	26,249		25,795		25,744		25,619

Net Debt: Total Capitalization	22.9	%	22.4	%	23.5	%	23.2	%
Net Debt: Trailing 12 month EBITDA	1.08		1.04		1.09		1.08
EBITDA : Interest (trailing 12 month)	8.72		8.32		7.96		7.66

BCE Inc. - Cash Flow Information
(unaudited) ($ millions, except where otherwise indicated)	Q3 2008		Q3 2007		$ change		% change		YTD 2008		YTD 2007		$ change		% change

Free Cash Flow (FCF) ⁽³⁾
Cash from operating activities	1,339		1,230		109		8.9	%	3,240		2,858		382		13.4	%
Capital expenditures	(566	)	(573	)	7		1.2	%	(1,605	)	(1,651	)	46		2.8	%
Dividends and distributions	(31	)	(326	)	295		90.5	%	(685	)	(979	)	294		30.0	%
Other investing activities	(731	)	5		(736	)	n.m.		(729	)	4		(733	)	n.m.
BELL FCF	11		336		(325	)	(96.7	%)	221		232		(11	)	(4.7	%)
Bell Aliant FCF	78		63		15		23.8	%	203		295		(92	)	(31.2	%)
Telesat FCF	-		31		(31	)	n.m.		-		29		(29	)	n.m.
Inter-segment eliminations	-		(5	)	5		n.m.		-		(46	)	46		n.m.
Total BCE FCF	89		425		(336	)	(79.1	%)	424		510		(86	)	(16.9	%)

BCE Inc. - Cash Flow Information - Historical Trend
(unaudited)	YTD		Q3		Q2		Q1		Total
*($ millions, except where otherwise indicated)*	2008		2008		2008		2008		2007		Q4 07		Q3 07		Q2 07		Q1 07
Free Cash Flow (FCF)
Cash from operating activities	3,240		1,339		1,189		712		4,221		1,363		1,230		972		656
Capital expenditures	(1,605	)	(566	)	(583	)	(456	)	(2,415	)	(764	)	(573	)	(538	)	(540	)
Dividends and distributions	(685	)	(31	)	(326	)	(328	)	(1,306	)	(327	)	(326	)	(339	)	(314	)
Other investing activities	(729	)	(731	)	1		1		12		8		5		(2	)	1
BELL FCF	221		11		281		(71	)	512		280		336		93		(197	)
Bell Aliant FCF	203		78		129		(4	)	399		104		63		182		50
Telesat FCF	-		-		-		-		51		22		31		(5	)	3
Inter-segment eliminations	-		-		-		-		(53	)	(7	)	(5	)	(29	)	(12	)
Total BCE FCF	424		89		410		(75	)	909		399		425		241		(156	)

BCE Inc. Supplementary Financial Information – Third Quarter 2008 Page 10

BCE Inc.
Consolidated Balance Sheet Data

	September 30		June 30		March 31		December 31
($ millions, except where otherwise indicated) (unaudited)	2008		2008		2008		2007
*ASSETS*
Current assets
Cash and cash equivalents	2,578		2,678		2,479		2,655
Accounts receivable	1,852		1,965		1,983		1,911
Future income taxes	82		51		95		71
Inventory	368		342		279		264
Prepaid and other expenses	385		440		438		276
Current assets of discontinued operations	19		29		34		36
Total current assets	5,284		5,505		5,308		5,213
Capital assets
Property, plant and equipment	18,461		18,356		18,382		18,595
Finite-life intangible assets	2,631		2,654		2,659		2,475
Indefinite-life intangible assets	2,954		2,954		2,954		2,913
Total capital assets	24,046		23,964		23,995		23,983
Other long-term assets	3,422		2,729		2,891		2,945
Goodwill	5,717		5,717		5,688		5,855
Non-current assets of discontinued operations	14		61		84		86
Total assets	38,483		37,976		37,966		38,082
*LIABILITIES*
Current liabilities
Accounts payable and accrued liabilities	3,092		2,912		2,742		3,256
Interest payable	168		139		172		145
Dividends payable	43		43		337		337
Debt due within one year	1,381		1,294		737		717
Current liabilities of discontinued operations	13		29		32		38
Total current liabilities	4,697		4,417		4,020		4,493
Long-term debt	9,997		9,936		10,622		10,621
Other long-term liabilities	4,956		4,962		4,987		4,631
Non-current liabilities of discontinued operations	-		2		2		2
Total liabilities	19,650		19,317		19,631		19,747
Non-controlling interest	1,107		1,103		1,087		1,103
*SHAREHOLDERS’ EQUITY*
Preferred shares	2,770		2,770		2,770		2,770
Common shareholders’ equity
Common shares	13,565		13,553		13,537		13,536
Contributed surplus	2,539		2,538		2,538		2,537
Accumulated other comprehensive (loss) income	(42	)	48		118		68
Deficit	(1,106	)	(1,353	)	(1,715	)	(1,679	)
Total common shareholders’ equity	14,956		14,786		14,478		14,462
Total shareholders’ equity	17,726		17,556		17,248		17,232
Total liabilities and shareholders’ equity	38,483		37,976		37,966		38,082
Number of common shares outstanding	806.2		805.8		805.3		805.3

Total Net Debt	8,800		8,552		8,880		8,683
Total Capitalization	27,633		27,211		27,215		27,018

Key ratios
Net debt : Total Capitalization	31.8	%	31.4	%	32.6	%	32.1	%
Net debt : Trailing 12 month EBITDA	1.27		1.23		1.27		1.24
EBITDA : Interest (trailing 12 month)	8.72		8.54		8.31		8.14

BCE Inc. Supplementary Financial Information – Third Quarter 2008 Page 11

BCE Inc.
Consolidated Cash Flow Data

		Q3			Q3						YTD			YTD
($ millions, except where otherwise indicated) (unaudited)		2008			2007			$ change			2008			2007			$ change
Cash flows from operating activities
Net earnings		280			440			(160	)		961			1,669			(708	)
less: (Losses) earnings from discontinued operations, net of tax		(10	)		(7	)		(3	)		(33	)		124			(157	)
Earnings from continuing operations		290			447			(157	)		994			1,545			(551	)
Adjustments to reconcile earnings from continuing operations to cash flows from operating activities
Depreciation and amortization of intangible assets		794			812			(18	)		2,399			2,401			(2	)
Net benefit plans cost		69			97			(28	)		210			297			(87	)
Restructuring and other		320			78			242			674			185			489
Losses (gains) on investments		14			(6	)		20			16			(125	)		141
Future income taxes		(24	)		215			(239	)		1			216			(215	)
Non-controlling interest		90			84			6			252			266			(14	)
Contributions to employee pension plans		(49	)		(42	)		(7	)		(141	)		(229	)		88
Other employee future benefit plan payments		(25	)		(23	)		(2	)		(72	)		(71	)		(1	)
Payments of restructuring and other		(84	)		(20	)		(64	)		(137	)		(91	)		(46	)
Operating assets and liabilities		254			(37	)		291			(120	)		(403	)		283
		1,649			1,605			44			4,076			3,991			85
Capital expenditures		(705	)		(763	)		58			(1,966	)		(2,228	)		262
Other investing activities		(732	)		4			(736	)		(727	)		6			(733	)
Cash dividends paid on preferred shares		(31	)		(34	)		3			(98	)		(90	)		(8	)
Cash dividends/distributions paid by subsidiaries to non-controlling interest		(92	)		(94	)		2			(274	)		(316	)		42
Free Cash Flow from operations, before common dividends		89			718			(629	)		1,011			1,363			(352	)
Cash dividends paid on common shares		-			(293	)		293			(587	)		(853	)		266
Free Cash Flow from operations, after common dividends		89			425			(336	)		424			510			(86	)
Business acquisitions		-			(14	)		14			(55	)		(163	)		108
Business dispositions		-			-			-			(10	)		-			(10	)
Bell Aliant		-			-			-			-			(7	)		7
Going-private costs		(148	)		(36	)		(112	)		(165	)		(36	)		(129	)
Increase in investments		(1	)		(5	)		4			(5	)		(21	)		16
Decrease in investments		-			50			(50	)		1			63			(62	)
Free Cash Flow after investments and divestitures		(60	)		420			(480	)		190			346			(156	)
Other financing activities
Increase (decrease) in notes payable and bank advances		26			(345	)		371			41			478			(437	)
Issue of long-term debt		-			16			(16	)		50			1,071			(1,021	)
Repayment of long-term debt		(94	)		(89	)		(5	)		(378	)		(2,101	)		1,723
Issue of common shares		11			16			(5	)		27			148			(121	)
Repurchase of common shares		-			-			-			-			(227	)		227
Issue of equity securities by subsidiaries to non-controlling interest		1			-			1			1			-			1
Redemption of equity securities by subsidiaries from non-controlling interest		-			(117	)		117			-			(329	)		329
Other financing activities		(11	)		(5	)		(6	)		(32	)		(53	)		21
		(67	)		(524	)		457			(291	)		(1,013	)		722
Cash flows used in continuing operations		(127	)		(104	)		(23	)		(101	)		(667	)		566
Cash flows (used in) from discontinued operations activities		-			(3	)		3			(2	)		(6	)		4
Cash flows from (used in) discontinued investing activities		29			1			28			28			351			(323	)
Cash flows from discontinued financing activities		(2	)		-			(2	)		(2	)		-			(2	)
Net decrease in cash and cash equivalents		(100	)		(106	)		6			(77	)		(322	)		245
Cash and cash equivalents at beginning of period		2,681			365			2,316			2,658			581			2,077
Cash and cash equivalents at end of period		2,581			259			2,322			2,581			259			2,322
Consists of:
Cash and cash equivalents of continuing operations		2,578			256			2,322			2,578			256			2,322
Cash and cash equivalents of discontinued operations		3			3			-			3			3			-
Total		2,581			259			2,322			2,581			259			2,322

Other information
Cash flow per share ⁽⁹⁾	$	1.17		$	1.05		$	0.12		$	2.62		$	2.19		$	0.43
Annualized cash flow yield ⁽¹⁰⁾		1.2	%		8.9	%		(7.7	) pts		4.6	%		5.6	%		(1.0	) pts
Common dividend payout ⁽¹¹⁾		0.0	%		67.6	%		(67.6	) pts		21.5	%		67.6	%		(46.1	) pts

BCE Inc. Supplementary Financial Information – Third Quarter 2008 Page 12

BCE Inc.
Consolidated Cash Flow Data - Historical Trend

($ millions, except where otherwise indicated) (unaudited)		YTD 2008			Q3 08			Q2 08			Q1 08			Total 2007			Q4 07			Q3 07			Q2 07			Q1 07
Cash flows from operating activities
Net earnings		961			280			392			289			4,057			2,388			440			700			529
less: (Losses) earnings from discontinued operations, net of tax		(33	)		(10	)		(21	)		(2	)		101			(23	)		(7	)		133			(2	)
Earnings from continuing operations		994			290			413			291			3,956			2,411			447			567			531
Adjustments to reconcile earnings from continuing operations to cash flows from operating activities
Depreciation and amortization of intangible assets		2,399			794			787			818			3,184			783			812			804			785
Net benefit plans cost		210			69			70			71			410			113			97			98			102
Restructuring and other		674			320			71			283			331			146			78			71			36
Losses (gains) on investments		16			14			-			2			(2,414	)		(2,289	)		(6	)		2			(121	)
Future income taxes		1			(24	)		92			(67	)		411			195			215			(110	)		111
Non-controlling interest		252			90			88			74			331			65			84			86			96
Contributions to employee pension plans		(141	)		(49	)		(48	)		(44	)		(265	)		(36	)		(42	)		(79	)		(108	)
Other employee future benefit plan payments		(72	)		(25	)		(24	)		(23	)		(96	)		(25	)		(23	)		(24	)		(24	)
Payments of restructuring and other		(137	)		(84	)		(29	)		(24	)		(118	)		(27	)		(20	)		(19	)		(52	)
Operating assets and liabilities		(120	)		254			114			(488	)		(16	)		387			(37	)		22			(388	)
		4,076			1,649			1,534			893			5,714			1,723			1,605			1,418			968
Capital expenditures		(1,966	)		(705	)		(710	)		(551	)		(3,144	)		(916	)		(763	)		(745	)		(720	)
Other investing activities		(727	)		(732	)		3			2			14			8			4			-			2
Cash dividends paid on preferred shares		(98	)		(31	)		(32	)		(35	)		(124	)		(34	)		(34	)		(33	)		(23	)
Cash dividends/distributions paid by subsidiaries to non-controlling interest		(274	)		(92	)		(92	)		(90	)		(404	)		(88	)		(94	)		(109	)		(113	)
Free Cash Flow from operations, before common dividends		1,011			89			703			219			2,056			693			718			531			114
Cash dividends paid on common shares		(587	)		-			(293	)		(294	)		(1,147	)		(294	)		(293	)		(290	)		(270	)
Free Cash Flow from (used in) operations, after common dividends		424			89			410			(75	)		909			399			425			241			(156	)
Business acquisitions		(55	)		-			(24	)		(31	)		(163	)		-			(14	)		(2	)		(147	)
Business dispositions		(10	)		-			-			(10	)		3,123			3,123			-			-			-
Bell Aliant		-			-			-			-			(7	)		-			-			(3	)		(4	)
Going-private costs		(165	)		(148	)		(8	)		(9	)		(49	)		(13	)		(36	)		-			-
Increase in investments		(5	)		(1	)		(2	)		(2	)		(27	)		(6	)		(5	)		(3	)		(13	)
Decrease in investments		1			-			1			-			192			129			50			6			7
Free Cash Flow after investments and divestitures		190			(60	)		377			(127	)		3,978			3,632			420			239			(313	)
Other financing activities
Increase (decrease) in notes payable and bank advances		41			26			(50	)		65			211			(267	)		(345	)		508			315
Issue of long-term debt		50			-			50			-			1,071			-			16			30			1,025
Repayment of long-term debt		(378	)		(94	)		(182	)		(102	)		(3,048	)		(947	)		(89	)		(837	)		(1,175	)
Issue of common shares		27			11			15			1			153			5			16			118			14
Repurchase of common shares		-			-			-			-			(227	)		-			-			(4	)		(223	)
Issue of equity securities by subsidiaries to non-controlling interest		1			1			-			-			-			-			-			-			-
Redemption of equity securities by subsidiaries from non-controlling interest		-			-			-			-			(333	)		(4	)		(117	)		(138	)		(74	)
Other financing activities		(32	)		(11	)		(10	)		(11	)		(66	)		(13	)		(5	)		(8	)		(40	)
		(291	)		(67	)		(177	)		(47	)		(2,239	)		(1,226	)		(524	)		(331	)		(158	)
Cash flows (used in) from continuing operations		(101	)		(127	)		200			(174	)		1,739			2,406			(104	)		(92	)		(471	)
Cash flows (used in) from discontinued operations activities		(2	)		-			(1	)		(1	)		(10	)		(4	)		(3	)		(6	)		3
Cash flows from (used in) discontinued investing activities		28			29			-			(1	)		348			(3	)		1			352			(2	)
Cash flows from discontinued financing activities		(2	)		(2	)		-			-			-			-			-			-			-
Net (decrease) increase in cash and cash equivalents		(77	)		(100	)		199			(176	)		2,077			2,399			(106	)		254			(470	)
Cash and cash equivalents at beginning of period		2,658			2,681			2,482			2,658			581			259			365			111			581
Cash and cash equivalents at end of period		2,581			2,581			2,681			2,482			2,658			2,658			259			365			111
Consists of:
Cash and cash equivalents of continuing operations		2,578			2,578			2,678			2,479			2,655			2,655			256			361			101
Cash and cash equivalents of discontinued operations		3			3			3			3			3			3			3			4			10
Total		2,581			2,581			2,681			2,482			2,658			2,658			259			365			111

Other information
Cash flow per share	$	2.62		$	1.17		$	1.03		$	0.42		$	3.19		$	1.00		$	1.05		$	0.83		$	0.31
Annualized cash flow yield		4.6	%		1.2	%		9.8	%		3.1	%		6.4	%		8.7	%		8.9	%		6.5	%		1.7	%
Common dividend payout		21.5	%		0.0	%		0.0	%		64.0	%		62.4	%		50.7	%		67.6	%		65.2	%		70.2	%

BCE Inc. Supplementary Financial Information – Third Quarter 2008 Page 13

Accompanying Notes

(1)		Throughout this report, BCE means BCE Inc., its subsidiaries and joint ventures; Bell means our Bell Wireline and Bell Wireless segments on an aggregate basis; and Bell Aliant means Bell Aliant Regional Communications Income Fund and its affiliated entities. We have reclassified some of the amounts for the previous 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 our decisions in 2008 to cease operations and to sell certain of our businesses. They are now shown as discontinued operations. Telesat Canada (Telesat) was sold on October 31, 2007 and we have 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)		We report our results of operations in four segments: Bell Wireline, Bell Wireless, Bell Aliant and Telesat. 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. During the third quarter of 2008, certain elements of our operating segments were realigned to reflect changes in our management accountabilities for operations. Our reportable segments did not change.
(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 and net losses (gains) on investments The term EPS before restructuring and other and net losses (gains) on investments 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 and net losses (gains) on investments among other measures, to assess the operating performance of our ongoing businesses without the effects of after-tax restructuring and other and net losses (gains) on investments. 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 – Third Quarter 2008 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)		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.
(7)		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.
(8)		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.
(9)		Cash flow per share is calculated as follows: Cash flow from operating activities less capital expenditures Average number of common shares outstanding
(10)		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.
(11)		Common dividend payout is calculated as follows: Dividends per common share EPS before restructuring and other and net losses (gains) on investments

BCE Inc. Supplementary Financial Information – Third Quarter 2008 Page 15