BCE 2013 Annual Report

BCE INC.
2013 ANNUAL REPORT

Were the same company
B
C
E

I
N
C
.

2
0
1
3

A
N
N
U
A
L

R
E
P
O
R
T
just totally different.
Bell has connected Canadians since 1880,
leadingthe innovation and investment in our
nations communications networks and
services. Wehave successfully embraced
therapid changes in communications
technology,competition and opportunity,
building on our 134-year record of service
toCanadians with a clear goal, and the strategy
and team execution required to achieveit.
Our goal:
To be recognized by customers
as Canadas leading
communications company.
Our 6 strategic imperatives
1. Accelerate wireless 10
2. Leverage wireline momentum 12
3. Expand media leadership 14
4. Invest in broadband networks and services 16
5. Achieve a competitive cost structure 17
6. Improve customer service 18
Bell is delivering the next generation of communications
and an enhanced service experience to our customers
across Canada. In the last ve years, our industry-leading
investments in world-class networks and communications
services like Fibe and LTE, coupled with strong execution
by the national team, have re-energized Bell as a nimble
competitor setting the pace in TV, Internet, Wireless and
Media growth services. We achieved all nancial targets
in 2013, delivering for our customers and shareholders and
giving us strong momentum going into 2014.
Financial and operational highlights 4
Letters to shareholders 6
Strategic imperatives 10
Community investment 20
Bell archives 22
Managements discussion and analysis (MD&A) 24
Reports on internal control 106
Consolidated nancial statements 110
Notes to consolidated nancial statements 114
Successfully executing our strategic
imperatives in a competitive marketplace,
Bell achieved all 2013 nancial targets and
continued to deliver value to shareholders.
2013 Financial Performance
Bell Actual Targets Result
Revenue growth 2.6% 2%4%
EBITDA growth* 3.4% 3%5%
Capital intensity 16.6% 16%17%
BCE Actual Targets Result
Adjusted EPS* $2.99 $2.97$3.03
Free cash ow* 5.9% 5%9%
6.5
%
Free Cash Flow Growth*
69
%
Dividend per Common Share Growth
141
%
10
Total Shareholder Return**
Number of Common Share
Dividend Increases
* EBITDA, Adjusted EPS and free cash ow are non-GAAP nancial measures and do not have any
standardized meaning under IFRS. Therefore, they are unlikely to be comparable to similar measures
presented by other issuers. For a full description of these measures, see section 10.2 Non-GAAP Financial
Measures on pp. 103 and 104 of the MD&A.
** Assumes the reinvestment of dividends.
Executing our dividend growth objective since 2008
4
FINANCIAL AND OPERATIONAL HIGHLIGHTS
Growth services are taking Bell forward
Founded on the rst popular communications service to connect Canadian consumers and businesses,
Bell is leading the way to the next generation. With a focus on Wireless, Internet, TV and Media
growth services, Bells investments in world-leading bre and mobile networks and innovative
new products are transforming our company and Canadas communications industry.
* In accordance with previously reported Canadian GAAP
82
%
Growth Services
8% Consumer
10% Business
2013
18%
Wireline Voice
26%
Internet/
Wireline Data
13%
Media
11%
TV
32%
Wireless
$18.1B
2008
31%
Wireline Voice
29%
Internet/
Wireline Data
10%
TV
30%
Wireless
$14.9B*
Revenue mix reects focus
on growth services
Bells Wireless, Internet, Media and
TV growth services accounted for
82% of revenues in 2013, up from
less than 70% in 2008. Traditional
Home Phone service, just 8%.
BCE Subscribers (millions)
2008 2013
Wireless 6.6 7.9
High-speed Internet 2.8 3.1
Television 1.9 2.5
Total growth services 11.3 13.5
Local telephone services 10.4 7.6
Total subscribers 21.7 21.1
+19.5
%
Growth Services Subscribers
2008-2013
21.1M
Total Subscribers
2013
5
19.978 20.400 17.661
+2.1
%
+15.5
%
5.560 6.476 5.909
+16.5
%
+9.6
%
7.888 8.089 7.004
+2.5
%
+15.5
%
2.294 2.317 1.811
+1.0
%
+27.9
%
2012 2013
BCE Operating Revenue
($ billions)
2008* 2012 2013
BCE EBITDA
($ billions)
2008* 2012 2013
Adjusted Net Earnings
Attributable to Common
Shareholders
($ billions)
2008*
* In accordance with previously reported Canadian GAAP.
For more information, please refer to section 7.1 of the MD&A Annual Financial Information, pp. 83-84.
Cash Flows from Operating
Activities
($ billions)
2012 2013 2008*
3.14 3.31 3.00
+5.4
%
+10.3
%
Free Cash Flow per Share
($)
2012 2013 2008*
2.428 2.571 2.415
+5.9
%
+6.5
%
Free Cash Flow
($ billions)
2012 2013 2008*
6
MESSAGE FROM THE CHAIR OF THE BOARD
Investing for tomorrow,
growing shareholder value today
Dear fellow shareholders,
With your support, we continued
our work in2013 to transform
BCE, a historic Canadian
company leading the advance
into the next generation of
communications with a strategy
of focused investment and
innovation, well executed by
strong management and
acommitted nationalteam.
Our growing success in the
communications marketplace,
robust financial performance and
efficient operational execution
give us the flexibility to invest in
the networks, services and
content we need to lead, while
delivering value to you,
ourshareholders.
Bell competes from a position
ofstrength, with excellent
financial fundamentals and a
capital markets strategy that is
prudent and responsive to an
evolving industryenvironment.
In 2013, we met all our financial
guidance targets with solid
revenue and EBITDA growth
driving higher free cash flow and
substantial earnings. Our healthy
balance sheet rests on a strong
credit profile, a favourable
liquidity position and significantly
improved funding in our defined
benefit pensionplan.
Early in 2014, we announced
a6.0% increase in the common
share dividend, from $2.33
to$2.47, representing the tenth
BCEcommon share dividend
increase since the fourth quarter
of 2008, for total growth of
69%in yourdividend.
In the marketplace, a
re-energized Bell is shaking
upthe established order in
Canadiancommunications.
Fibe is leading new consumer
choice in TV and Internet with
tough competition for the once-
entrenched cable companies in
urban markets. The acquisition of
Montral-based Astral Media with
its exceptional array of French
and English pay and specialty TV,
radio and outdoor advertising
properties is delivering enhanced
competition in the fast-paced
media marketplace, especially
inQubec. And investment
inthebest wireless technology
available has enabled Bell to
stake out a leadership position in
mobile TV and other increasingly
popular smartphone-based
dataservices.
BCE continues to live up to the
high expectations Canadians
have of us as a company that has
given back to our communities for
generations, and as an enduring
leader in corporategovernance.
The Bell Lets Talk mental
healthinitiative has captured
theattention and support of
Canadians beyond all expectations,
growing participation in the
mental health conversation,
fighting thestigma and delivering
funding to mental health
programs in every region of
thecountry. Were looking
forward to Claras Big Ride for
Bell Lets Talk starting in
March2014, a 12,000kilometre
journey around Canada by
Olympian and Bell Lets Talk
ambassador ClaraHughes that
will take the conversation
evenfurther.
I am proud to say that your
Board was recognized multiple
times for our governance
leadership in 2013. We were
honoured with the prestigious
Gavel Award from the Canadian
7
Coalition for Good Governance
forexceptional communication
with shareholders; the Best
Overall Corporate Governance
International award at the sixth
annual Corporate Secretary
Corporate Governance Awards;
and the first-ever award for best
overall corporate governance
from the Canadian Society of
CorporateSecretaries.
These awards recognize
thededication of my fellow
Boardmembers and their
commitment to guiding our
organization forward.
We welcomed our newest
Director, Ian Greenberg, Canadian
broadcasting legend and former
Astral Chief Executive Officer,
toyour Board in2013 following
the closing of our acquisition,
akey addition as Bell expands
ournational medialeadership.
I would like to acknowledge
andthank two Directors with a
strong record ofdistinguished
service to you, Anthony Fell and
The Honourable Edward Lumley,
who will be departing the Board in
May 2014. We are grateful for
their brilliant leadership and
guidance as exceptional stewards
of your interests and BCEs
tradition of exemplary
governance.
I thank our CEO George Cope,
his executive team and Bell
employees across Canada for
their hard work and success
intransforming your company.
Itismy privilege and honour
towork with such a focused,
dedicated and effectiveteam.
And all of us across BCE thank
you, our shareholders, for your
belief in our company and its
ability to prosper in the fast
changing and highly competitive
communicationsindustry.
Your confidence energizes
ourefforts to honour and build
onBells history as Canadas
communicationsleader.
Thomas C. ONeill
Chair of the Board
BCE Inc.
+69
%
Since the end of 2008, BCE has raised
the common share dividend 10 times,
for an overall increase of 69%.
Dear fellowshareholders,
8
MESSAGE FROM THE PRESIDENT & CEO
Hitting our stride with committed
execution by the Bell team
Bell put in place a clear new goal in 2008: To be recognized by customers
as Canadas leading communications company. Our strategy to achieve
it is built on 6 strategic imperatives that reflect the enduring strengths
ofBell, our competitive and operational challenges, and the exciting
opportunities for growth.
Accelerate wireless Invest in broadband networks and services
Leverage wireline momentum Achieve a competitive cost structure
Expand media leadership Improve customer service
As Canadas largest and oldest
communications company,
wevowed to lead in delivering
theWireless, Internet, TV and
Media platforms that define the
new reality of communications.
Wecommitted the investment to
world-class network technologies
required to enable these growth
services. And we dedicated
ourselves to improving the
customer service experience
andreducing costs across
ouroperations to sustain Bells
growthinto the future.
With a focus on delivering
consistent dividend growth to our
shareholders, the Bell team has
made sure and steady progress
inthe execution of our
imperatives. In 2013 we really hit
our stride, leveraging our network
leadership and growth services to
deliver increases in revenue,
EBITDA and free cash flow,
meeting all our financial targets
for the year and fulfilling our
promise to continue to return
significant value to you.
Each of Bells operating
unitsdemonstrated positive
progress in2013.
Bell closed the year leading
thewireless industry in market
share of net postpaid wireless
subscriber additions and
wireless EBITDA growth.
Withaccess to the largest
LTEnetwork in the country,
our customers are taking
full advantage of Bells
leading lineup of
smartphones to drive industry-
leading service revenue growth
with heavy usage of data services
likethe unique BellMobileTV.
Next generation Fibe TV
continues to grow fast, bringing a
superior television experience to
more Canadians. FibeTVs surging
popularity is driving impressive
growth in high-speed Internet,
while slowing decline in traditional
9
Home Phone too in2013, four
infive new Fibe TV customers
chose a bundle of all three
Bellresidential services.
Withheavy investment in data
hosting, cloud computing and
other leading-edge business
communications services in 2013,
Bell Business Markets looks
forward to improved results on
stronger economic and
employment growth in 2014.
Canadas #1multimedia
company, Bell Media, continued to
build its lead in both viewership
and investment in the most
popular new Canadian TV
programming. We welcomed the
vibrant Astral team to Bell Media
in 2013, growing our competitive
presence in the key Qubec
marketplace and adding top-tier
pay andspecialty channels such
as TMN, HBO Canada and
Supercran to ourlineup.
Bell leads the industry in capital
investment, bringing the worlds
best networks to Canadians, while
keeping to prudent capital
intensity targets. Fibe TV reached
a million more homes in2013
whilemobile 4G LTE grew to cover
80% of the population. With the
700MHz spectrum acquired in
the2014 spectrum auction, well
rapidly deploy broadband LTE
torural communities, small towns
and Canadas North, bringing
advanced mobile broadband
services to more than 98% of
Canadas population, a national
coverage footprint that rivals any
in theworld.
We invested in new call centres
in Qubec and Ontario, enhanced
our popular mobile self-serve
tools, refined our appointment and
dispatch processes, and improved
first-call resolution. Consequently,
we reduced wireless churn, cut the
number of repeat calls into our
service centres and enabled Bell
technicians to arrive on time for
98% of serviceappointments.
These customer service
improvements have reduced our
costs significantly, in line with
theoperational efficiency and
cost control focus now embedded
in Bells corporateculture.
A re-energized team of more
than 55,000Bell employees
inevery province and territory
istransforming our company
inremarkable ways in our
operations, in the marketplace,
and in our contribution
toCanadian society with
theextraordinary success of
theBellLets Talk mental
healthinitiative.
What hasnt changed is Bells
134-year promise to always lead
Canada into the next generation
of communications, delivering for
our shareholders, customers and
community. As our performance
in2013 shows, we get better every
day. Thank you for yoursupport.
George A. Cope
President and
Chief Executive Ofcer
BCE Inc. and Bell Canada
82
%
In 2013, Wireless, TV, Internet and Media
growth services accounted for more
than 4 in 5 dollars of Bell revenues.
10
STRATEGIC IMPERATIVE 1
Accelerate wireless
With the most advanced networks supporting the latest
smartphones and mobile data services, Bells growing wireless
strength was a key driver of our growth in 2013.
Bells next generation wireless
networks, superior smartphone
lineup and innovative data services
gave us the industry-leading share of
net postpaid subscriber activations
and average revenue per user (ARPU)
growth in 2013.
Already offering access to
Canadas largest 4G LTE network,
Belladded 25 new LTE markets
andreached 80% of the Canadian
population by the end of 2013.
Theworlds best wireless technology,
LTE is backed up with our HSPA+
network offering coast-to-coast
coverage to more than 98%
ofCanadians.
The speed and capacity of these
networks enable Bell customers
tomake the most of their powerful
smartphones and superphones with
the latest mobile business, gaming,
information and entertainment apps,
including Bell Mobile TV.
With more than 1.2 million mobile
TVsubscribers at the end of 2013,
66%more than the year before,
Bellhas staked out a clear leadership
position in the fast-growing mobile
media segment, delivering record
video streaming of major events like
the Super Bowl and most recently
Sochi2014 to customers anywhere
they may be.
Bell launched 26 new mobile
devices in 2013, adding to the best
lineup in the mobile marketplace,
including the in-demand smartphones
from Apple, BlackBerry, HTC, LG,
Samsung and Sony, and the ultra-
rugged Sonim BOLT push-to-talk
phones for heavy business users
inthe most extreme conditions.
Almost three-quarters of Bell
postpaid customers now have
smartphones, growing to 73% of
thebase from 62%just a year ago.
These leading networks, handsets
and content applications led to
robust growth in data service usage,
driving a 2.6% increase inblended
ARPU to $57.25 for the year. Bell
Wireless reported strong financial
results overall, with service revenues
increasing 5.4% to $5.36billion and
EBITDA up 10.6% to $2.34 billion,
thehighest growth rate reported
inCanadian wireless.
Other notable 2013 wireless
developments include:
A fast and secure mobile
banking solution developed by
Bell and RBC, Canadas largest
$
57
.25
$
55
.82
$
53
.55
2013
2012
2011
Average Revenue per User (ARPU)
Bells mobile data services lead the industry. At the end
of 2013, Bell Mobile TV had over 1.2 million subscribers with
on-the-go access to more than 40 live and on-demand
TV channels, and set new records for streaming of major
sports and entertainment events.
73
%
2013
62
%
2012
48
%
2011
11
bank, that lets Bell smartphone
users easily buy goods and services
with debit or credit simply by
tapping their phones at a payment
terminal.
To enable customers to enjoy
their smartphones when they
travel as much as they do at
home, Bell signicantly reduced
roaming rates in the most popular
destinations for Canadians
the United States, Europe,
Mexico, China, Turkey, Australia
and New Zealand, and popular
Caribbean sun destinations
including Cuba.
Bells focus on service improvement
and the quality of our networks
and devices helped reduce
postpaid customer churn by year
end to 1.25% from 1.30%.
The new Bell M2M Management
Centre is a secure online portal
enabling business customers
to remotely manage network-
connected devices such as vending
machines or parking meters,
supporting Bells growing leadership
in the machine-to-machine
marketplace.
In line with our commitment to
network leadership, Bell invested
$566 million to acquire significant
700 MHz wireless spectrum assets
in every province and territory
inthe January 2014 federal
spectrum auction.
Bell will employ these valuable
new airwaves to bring LTE broadband
service to small towns, rural locations
and Canadas North, ultimately covering
98% of the population with LTE.
Smartphone Growth
Bells great mobile networks, data
services and device lineup are driving
the move to smartphones.
12
The Fibe TV footprint reached more than
4.3 million households by the end of 2013,
a million more than a year earlier, and
subscribers nearly doubled to 479,430.
4.3M
The Bell wireless receiver is a
Canadian rst and available only with
Fibe TV, enabling customers to move
their TV anywhere in the home and
reducing installation times.
13
Leverage wireline momentum
Our growing momentum in residential services is driven by the strength of Fibe TV,
supporting household growth in high-speed Internet and slowing the decline in Home Phone.
Bell Business Markets continued to expand its broadband network and next generation
business services like cloud computing to take advantage of a strengthening economy.
On the consumer side, Bell Fibe TV
isshaking up the Canadian television
business, quicklywinning new
subscribers and increasing Bells
overall share of thehousehold as we
bring the superior alternative to
cable TV to a fast-growing number
ofCanadians.
The Fibe TV network footprint
expanded in2013 to multiple new
markets including Ottawa, increasing
coverage by a million households
toa total of 4.3million by the end of
the year. We plan to extend service
coverage to more than 5million
homes by the endof2014 and
ultimately reach 6millionhouseholds.
Bells focus on service innovation
delivered hugely popular TV products
like the Bellwireless receiver, a
Canadian first that lets customers
enjoy the best TV viewing experience
on up to 5TVs anywhere in the home
without plugging them allinto cable
outlets; theFibe Remote app that
turns a smartphone or tablet into
aremote control; and the Bell TV app,
which allows customers to watch
more than 100channels on their
tablets or smartphones on Wi-Fi at
no extracharge.
The power of Fibe TVs pull-through
effect supported stronger growth
inBell high-speed Internet subscribers,
increasing 2.7% in 2013, and slowed
decline in Home Phone as 80%
ofnew Fibe TV customers chose to
bundle all three Bell residential
services.
On the business side, customers of
all sizes including 96of Canadas
top 100companies turn to Bell
Business Markets (BBM) for the full
range of communications services,
from connectivity to systems
integration and managed services to
collaboration tools suchas audio,
video and web conferencing.
Bells broadband-connected data
hosting centres areenabling cloud
computing andother managed
services for enterprise and
government, whileinthe mass
market, the launch ofBusiness
FibeTV is now bringing this superior
TV experience to smallbusinesses
ofall kinds, from restaurants to auto
dealerships todentistsoffices.
Major new contracts for BBM
included a new fibre communications
network connecting 1,500branches
for Desjardins Group, and the
winning bid, in partnership with CGI,
to deliver a new integrated e-mail
system for the federalgovernment.
BBM also expanded the popular
Bell Business Advantage program to
cover all small and medium-sized
business customers, enabling them
totake advantage of special Bell
promotional offers to save
onsupplies andservices.
Bell and Q9 offer business customers access
to 21 secure, broadband-connected hosting
centres in key markets.
21 Data Centres
14
Expand media leadership
From great new Canadian programming to the addition of Astral and
a much stronger presence in Qubec, Bell Medias growth was positive
news for consumers, content creators and investors in 2013.
As the countrys premier multimedia
company, Bell Media is dedicated to
bringing the best domestic and
international programming to
Canadians across every media
platform conventional TV with CTV,
Canadas #1television network,
andCTV Two; 35specialty channels
including TSN and RDS; pay TV
services including The Movie Network,
HBO Canada and Supercran; radio
in 55markets across Canada; and
more than 200 innovative digital
onlineproperties.
In 2013, Bell welcomed the
accomplished team at Montral-based
Astral Media, now integrated into
BellMedia to deliver unprecedented
new content choices for Canadian
viewers and listeners, especially
inthe Qubec marketplace.
Theacquisition includes Astral
Out-of-Home, Canadas leading
outdoor advertising company
withover 9,500strategic advertising
locations in key Qubec, Ontario
andBritish Columbiamarkets.
As part of its Astral acquisition,
BellMedia committed to invest
$246.9million in new content
development for French and
English-language TV, radio and film,
and support for emerging Canadian
musicaltalent.
Bell Medias homegrown content
already includes shows like
TheAmazing Race Canada, which
was the #1program of summer2013
and the highest-rated debut for any
program, domestic or international,
inCanadian history. Overall, CTVs
average audiences were 56% larger
than its closest conventional TV
competitor in2013.
Embracing the concept of
TVEverywhere, Bell Media launched
CTVGO to offer customers
on-the-go access to more than
3,000hours of programming from
CTV and CTV Two; TMN GO and
HBOCanada GO, thefirst Canadian
TV Everywhere products offering
premium on-demand programming;
and Bravo GO, with live and
on-demand access to Bravo dramas
and feature films. Bells new
broadcast partnership with the
National Football League also
includes the first NFL digital media
rights for CTV GO and TSNGO.
CTVs average primetime audiences
were 56% larger than its closest
conventional TV competitor in 2013.
56
%
More
15
TSN and RDS remain not only
Canadas broadcast sports leaders but
the top English and French-language
specialty channels of any kind. While
Bell was disappointed notto acquire
national broadcast rights for the
National Hockey League games in
2013, we acquired rights to a number
of hockey properties and continued
to build on our overall sports
leadership throughout theyear:
RDS secured rights as the
ofcial regional broadcaster
of the Canadiens through the
2025-26 season, with Bell retaining
naming rights to the Bell Centre
through 2028. Bell Media signed
a similar regional rights agreement
with the Ottawa Senators early
in 2014, in addition to in-place
regional broadcast partnerships
with the Toronto Maple Leafs and
Winnipeg Jets.
RDS produced 24CH, a
documentary series that gives
fans of the Montral Canadiens
unprecedented access to the
iconic NHL club and its players.
Bell Media concluded a
multi-platform extension of its
broadcast partnership with
the National Football League
that includes all Sunday games
on CTV and TSN, all Monday
night games, the Playoffs and
the Super Bowl.
Bell signed a new multi-year
strategic partnership with the
National Basketball Association
that further enhances Bells
position as the ofcial
communications partner for
basketball in Canada.
Bell extended its Premier Founding
Partnership with Vancouver
Whitecaps FC, including
Bellbranding of all Whitecaps
apparel and support for the
teamscommunity youth initiatives,
and TSN is now the teams
officialbroadcaster.
Bell Medias leadership across
media platforms, smooth
integration of the Astral team and
strong execution translated into
excellent financial results for 2013.
Bell Media revenue was $2.6billion,
up 17.1% over the previous year,
while EBITDA grew 21.7% to
$683million.
$246.9M
In 2013, Bell committed to invest
$246.9M more in new French and
English language TV, radio and
lm content.
16
Invest in broadband networks and services
The backbone of our growth services strategy, Bells broadband
networks continued to expand to deliver new communications
choices to consumers and businesses across the country.
Bell has led the development of
Canadas communications infra-
structure since 1880, investing more
in new network buildouts and R&D
than any other company. In 2013, Bell
continued to lead the industry with
capital investments of more than
$3billion, enabling the rapid rollout of
new fibre supporting our Fibe TV,
Internet and business services and
our Fourth Generation (4G) Long
Term Evolution (LTE) wireless network,
which is driving fast growth in
smartphones and dataservices.
We extended the Fibe TV footprint
to 4.3million households, including
new markets such as Ottawa, Laval,
Hamilton and Barrie, and expanded
further in the greater Montral,
Toronto and Qubec City regions.
Overall, Bells broadband fibre
network grew to approximately
5.8million homes and business
locations with the ongoing deploy-
ment of Fibre-to-the-home (FTTH) in
new housing developments and
multi-dwelling units (MDUs); expan-
sion of Fibre-to-the-node (FTTN) in
neighbourhoods throughout Qubec
and Ontario, and the introduction of
pair bonding technology to deliver
upgraded service to hundreds of
thousands oflocations.
We continue to enhance the reach
and speed of our world-leading 4G
LTE network, expanding coverage of
Canadas largest 4G network to 80%
of the population at the end of 2013.
We expanded our complementary
high-speed packet access plus (HSPA+)
network to more than 98% of the
population a level we will rapidly
reach with LTE as we leverage
new700MHz wireless spectrum
acquired in the recent federal
spectrum auction.
Bell has created Canadas largest
national network of data centres,
providing Bell Business Markets
customers with secure ways to
protect critical business applications
and increase productivity through
co-location, data management,
infrastructure as a service (IaaS) and
cloud computing. With our strategic
investment in Q9, Bell customers
have access to 21data hosting
centres in key markets, all linked
with Bells broadband
fibre IPnetworks.
Did you know that Bell is
Canadas largest provider of
Wi-Fi services? We service more
than 4,000 Wi-Fi locations,
including at our partners Indigo,
McDonalds and Tim Hortons
4,000+
17
Achieve a competitive cost structure
Cost efciency is essential to the strategic success of Bell, enabling us to
sustain EBITDA margins and support investment in our networks and services
that will help drive future growth and higher dividends for our shareholders.
Controlling costs and increasing
productivity has become an integral
partof the culture at Bell. In addition
to close management of supplier
costs anddisciplined spending on
travel and other expenses, Bell is
surfacing significant savings through
operational efficiency and new
technology.
As more customers choose
self-serve options and manage their
accounts online or on their
smartphones, callvolumes to our
service centres havedeclined by
25%since 2011 and reduced our client
operations costs.
Nearly half of our subscribers with
smartphones now access their
accounts through their devices, and
mobile customers accessed
self serve options 31million times in
2013, up from just 7 million in 2010.
Withthe growing move to paperless
billing, we continue to reduce our
printing and mailing costs, and our
impact on the environment.
We have focused on energy cost
reductions in numerous ways,
including more efficient processes
todispatch field technicians,
savingthecost of thousands of
truckrolls. Weuse GPS and initiatives
like our anti-idling program to
ensureour fleet vehicles operate as
efficiently as possible. And weve
saved onfacility energy costs with
highly efficient LEED-certified
campus buildings.
Overall cost reductions and
productivity gains have saved Bell
more than $1.5 billion since we
implemented our cost imperative
in2008, savings that have been key
to our ongoing investment in
broadband networks and consistent
growth in shareholder dividends.
Bell cost savings and productivity gains
over the last 5 years reached $1.5 billion,
enabling major strategic investments
in network and service infrastructure to
drive growth and shareholder returns.
$1.5B
Committed to
Sustainable Growth
As a responsible Canadian
corporation, Bell builds our
businesswith a focus on
stronggovernance and business
ethics, sustainable growth
andenvironmental protection.
To learn more, please consult
ourannual Bell Corporate
Responsibility Report in the
Responsibility section ofBCE.ca.
Bell Sustainability Awards and Recognition:
First and only telecommunications
company in Canada to have
obtained ISO 14001 certication
for its environmental
management system.
One of Canadas Top 50 Most
Responsible Companies in Macleans
Sustainalytics 2013 Ranking.
Canadas rst telecom
signatory to the United Nations
Global Compact (UNGC).
Only Canadian communications
company to earn a top spot in
the CDP 2013 Climate Disclosure
Leadership Index, which ranks the
largest 200 companies listed on the
TSX according to transparency and
environmental performance.
LEED certication for newest green
Tier 3 data centre, Montral head
ofce campus, and Mississauga
campus expansion.
18
Bell has announced three new Canadian call
centres, inJonquire and Rouyn-Noranda,
Qubec andOrillia, Ontario.
+3 Call Centres
19
Improve customer service
The service experience denes Bells relationship with our customers for the long
term and were making it better with investments in people, call centres, and new online
and mobile technology reecting the service options our customers want.
In 2013, Bell made significant strides
in improving the customer service
experience across our business with
capital investments of $140 million
innew service tools, training and
infrastructure to better serve the
evolving needs of our customers and
to enhance our productivity.
Were leveraging our own
technology to make a difference,
offering customers options to
manage the most straightforward
elements of their service experience
how and when they want to.
Theresult is a significant reduction
ininbound calls to our service
representatives and overall service
costs and an overall rise in customer
satisfaction. Similarly, new hardware
technology like the Bell wireless
receiver makes it easier for our
customers to move their TVs when
and where they want, while reducing
installation times for our field
technicians.
Call centres remain our key
interaction point with customers,
and Bell has announced the
opening of three new locations,
in Jonquire and Rouyn-Noranda,
Qubec and Orillia, Ontario, to
enhance service for consumers
while boosting local employment.
Customers have embraced
self-serve with visits to MyBell.ca
increasing by 88% since 2010,
and usage of our mobile self-serve
app growing more than fourfold in
the same timeframe. Our agents
conducted 3.2 million online chat
sessions with individual customers
in 2013, up 100% since 2010.
Self-serve options give customers
convenient access to their
accounts and reduce the load
on our customer service centres
(by 25% in the last 2 years),
lowering costs and freeing agents
to manage more complex issues.
New online help options include
the personalized Bill Explainer and
the Mobility Bill Interactive Tour,
which address common billing,
usage and hardware questions.
Improved dispatch processes
support our eld service technicians
in getting the job done on time
the rst time. We fulll our Same
Day Next Day repair commitment
more than 91% of the time and
have reduced the time between
Internet service ordering and
install from eight days to two,
and Fibe TV from ve days to two.
Our technicians now arrive on time
for appointments more than 98%
of the time, and earned a customer
rating higher than 92%.
We continue to innovate with service
delivery, recently introducing Making
It Right, a team of specialists who
take on the toughest customer issue
referrals, while the Bell Privileges
program supports premium
customers by providing special offers
like priority appointments and
shipping of replacement equipment
such as remotes and chargers.
To ensure wide availability of
in-person service, Bell continues to
expand our network of stores and
kiosks across Canada. With the
addition of 43 new Bell stores and
40new The Source locations,
wenow have more than 1,600
Bell-branded and The Source store
locations. In 2013, we also renewed
our partnership with major wireless
retailer Glentel, which offers Bell
wireless services in more than 360
retail outlets such as WIRELESSWAVE,
Tbooth wireless, WIRELESS etc... and
Target Mobile.
With improved dispatch and other technology
support, Bell eld technicians arrive on time for
appointments 98% of the time.
98
%
On Time
20
COMMUNITY INVESTMENT
Bell Lets Talk sets new participation records
Led by high-prole events such as Bell Lets Talk Day and Claras Big Ride, Bell is driving
awareness, acceptance and action in Canadian mental health. The largest ever corporate
commitment to mental health in the country, the award-winning Bell Lets Talk initiative is
transforming the way Canadians think about this pervasive national health challenge.
No Canadian is untouched by mental
illness. At least 1in 5of us willdeal
with a mental health issue directly at
some point in our lives, and all of
uswill encounter the debilitating and
often devastating effects of mental
illness on family, friends, neighbours
and colleagues who struggle.
Theoverall impact of on our national
economy surpasses $50billion
annually.
Bell Lets Talk began as a
$50-million commitment to address
the challenge of mental illness in
Canada with the execution of 4key
action pillars anti-stigma, care and
access, new research, and workplace
leadership. Thanks to the growing
support from Canadians on
Bell Lets Talk Day, Bell funding
forthe national initiative has grown
to more than $67.5million.
Olympic champion Clara Hughes
leads the high-profile Bell Lets Talk
campaign to fight the stigma and
grow Bells donations to mental
health programs by engaging
Canadians directly in the issue.
Supported by high-profile names
from across the sports and
entertainment worlds, many of
whom, like Clara, have struggled
withmental health challenges, the
Bell Lets Talk team brings the mental
health message to every corner
ofCanada with the assistance of
abroad range of Canadian media
andcorporate supporters, even
Bellcompetitors, who help promote
thecause.
Bell Lets Talk Day2014 set new
records, and with Bell donating
5cents for every mobile and long
distance call, text message, tweet
and Facebook share at no extra cost
to participants, thats $5,472,585.90
more funding to support Canadian
mentalhealth.
Now, were taking the conversation
further. Claras Big Ride for Bell
Lets Talk will see Clara ride her bike
more than 12,000kilometres around
Canada, visiting communities
bigandsmall in every province and
territory to talk with Canadians
about mental health where they live.
Starting March14in Toronto,
ClarasBig Ride concludes in Ottawa
on Canada Day July1.
Here are some of the ways we
executed the 4pillars of Bell Lets
Talk in2013.
Established the $1million Bell True
Patriot Love Fund to support the
special mental health needs of
Canadian militaryfamilies.
Marked the 25
th
anniversary
ofKids Help Phone, the national
phone and online counselling
agency for youth, with a donation
of $2.5million to fund new
communicationstechnologies.
Partnered with Sunnybrook Health
Sciences to create the $1million
Bell Canada Chair in Adolescent
Mood & Anxiety Disorders with
prominent youth psychiatrist
Dr.Amy Cheung as inauguralchair.
Delivered major new funding to
Concordias Applied Psychology
Centre, Brain Canada, Montrals
Jewish General Hospital and
Universit Laval Foundation for
youth programs, brain research
and frontlinetraining.
Presented the first Bell Lecture
onMental Health and Anti-Stigma
with Queens University where
Bellfunded the worlds first chair
inanti-stigmaresearch.
Funded local and grassroots
mental health initiatives in every
region with the $1million annual
Bell Community Fund, which has
now supported 150frontline
organizations.
Bell Lets Talk 2014
Total Messages 109,451,718 +14%
Tweets 3,016,621 +93%
Ranking in Canada #1
Ranking Worldwide #3
2014 Funding Growth $5.5M +14%
Total Bell Lets Talk Funding $67.5M +9%
21
Clara Hughes with three
members of the Bell Lets Talk
ambassador team: Seamus
ORegan, Stee Shock and
Michel Mpambara.
Celebrated the first anniversary
offederal guidelines for workplace
mental health and safety,
anational initiative funded by
Bellthat provides organizations
with resources to promote mental
health in the workplace. This year,
Bell significantly increased our
employee benefit coverage for
mental healthservices.
Following its global recognition with
the international Freeman
Philanthropic Services Award for
Outstanding Corporation in 2012,
BellLets Talk was honoured with
thetop award for Excellence in
Mental Health at Work in2013
byExcellenceCanada.
22
BELL ARCHIVES
Swift and sure emergency response
remains a Bell tradition
As December holiday celebrations were at their height, a massive ice storm paralyzed much of
southern Ontario, spreading into Qubec and Atlantic Canada and leaving hundreds of thousands
of homes without power and streets covered in ice, fallen branches and downed power lines.
For many Bell workers, the
challengesthey faced to keep the
communications links open and
support emergency workers at the
end of 2013 brought back memories
of January 1998. Then, relentless
freezing rain blanketed Qubec and
eastern Ontario. Alongside other
emergency workers, Bell teams
braved the biggest storm of the
century to restore service to millions
of customers cut off by the storm.
While Bells business has
transformed dramatically, our
commitment to serve our customers
and communities will always be
fundamental to Canadas oldest and
largest communications company.
There are many examples detailed
in the Bell Archives. During the
deadly Spanish flu pandemic in 1918,
which killed 50,000 Canadians,
Bellinstallers and repairmen often
wore cheesecloth masks saturated
with formaldehyde when calling
oncustomers.
In the days before antibiotics, they
took their lives in their hands as that
years Bell annual report noted.
Meanwhile, with a quarter of staff
unavailable because of illness,
Bellemployees worked long hours to
handle the massive increase in
demand for service while pleading
with customers to make only
necessary calls in the emergency.
In another example, Bell workers
came through in 1953 when a tornado
left a dozen blocks of Sarnia, Ontario
in shambles. The storm blew out
50windows in the new Bellbuilding
and ripped off massive concrete
cornices, but Bell operators stayed at
their posts throughout to connect
emergency calls.
Our dedication to helping
Canadians in an emergency remains.
In the summer of 2013, floods covered
Calgary and much of southern
Alberta, forcing thousands of people
from their homes (including BellLets
Talk spokesperson ClaraHughes).
Asour team worked to restore
network service, Bellresponded with
significant RedCross funding
andsupport for emergency workers,
including the delivery of thousands
ofbatteries byThe Source.
Bell was among the first to
respond when a train derailment
and explosion devastated
Lac-Mgantic, Qubec in July.
Inaddition to funding for the
RedCross, Bells emergency
response trailer carried
emergency supplies to the town
and served as the RedCross
command post on site.
Ourtechnicians worked around
the clock to restore networks and
customer services while delivering
communications support to
emergency workers and shelters.
Technology and competition
change, and so does our company.
But Bells willingness to answer
thecall when an emergency
strikesnever will.
BCE Inc. 2013 Annual Report 23
T
A
B
L
E

O
F

C
O
N
T
E
N
T
S
TABLE OF CONTENTS
MANAGEMENTS DISCUSSION AND ANALYSIS
1 OVERVIEW
1.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
1.2 About BCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
1.3 Key Corporate Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
1.4 Capital Markets Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
1.5 Corporate Governance and Risk Management . . . . . . . . . . . . . . . . . . . . . 34
2 BELLS STRATEGIC IMPERATIVES
2.1 Accelerate Wireless . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
2.2 Leverage Wireline Momentum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
2.3 Expand Media Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
2.4 Invest in Broadband Networks and Services . . . . . . . . . . . . . . . . . . . . . . . . 39
2.5 Achieve a Competitive Cost Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
2.6 Improve Customer Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
3 PERFORMANCE TARGETS, OUTLOOK,
ASSUMPTIONS AND RISKS
3.1 2013 Performance vs. Guidance Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
3.2 Business Outlook and Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
3.3 Principal Business Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
4 CONSOLIDATED FINANCIAL ANALYSIS
4.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
4.2 Customer Connections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
4.3 Operating Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
4.4 Operating Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
4.5 EBITDA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
4.6 Severance, Acquisition and Other Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
4.7 Depreciation and Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
4.8 Finance Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
4.9 Other (Expense) Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
4.10 Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
4.11 Net Earnings and EPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
4.12 Capital Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
4.13 Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
5 BUSINESS SEGMENT ANALYSIS
5.1 Bell Wireless . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
5.2 Bell Wireline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
5.3 Bell Media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
5.4 Bell Aliant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
6 FINANCIAL AND CAPITAL MANAGEMENT
6.1 Net Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
6.2 Outstanding Share Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
6.3 Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
6.4 Post-Employment Benet Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
6.5 Credit Ratings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
6.6 Liquidity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
7 SELECTED ANNUAL AND QUARTERLY INFORMATION
7.1 Annual Financial Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
7.2 Quarterly Financial Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
8 REGULATORY ENVIRONMENT
8.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
8.2 Telecommunications Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
8.3 Broadcasting Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
8.4 Radiocommunication Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
8.5 Bell Canada Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
8.6 Other Key Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
9 BUSINESS RISKS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
10 FINANCIAL MEASURES, ACCOUNTING POLICIES
AND CONTROLS
10.1 Our Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
10.2 Non-GAAP Financial Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
10.3 Effectiveness of Internal Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
REPORTS ON INTERNAL CONTROL
Managements Report on Internal Control over Financial Reporting . . 106
Report of Independent Registered Public Accounting Firm . . . . . . . . . . . . . 107
CONSOLIDATED FINANCIAL STATEMENTS
Managements Responsibility for Financial Reporting . . . . . . . . . . . . . . . . . . 108
Report of Independent Registered Public Accounting Firm . . . . . . . . . . . . . 109
Consolidated Income Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
Consolidated Statements of Comprehensive Income . . . . . . . . . . . . . . . . . . . 110
Consolidated Statements of Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
Consolidated Statements of Changes in Equity . . . . . . . . . . . . . . . . . . . . . . . . . 112
Consolidated Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 Corporate Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
Note 2 Signicant Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
Note 3 Segmented Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
Note 4 Acquisition of Astral . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Note 5 Operating Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
Note 6 Severance, Acquisition and Other Costs . . . . . . . . . . . . . . . . . . . . . 126
Note 7 Interest Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
Note 8 Other (Expense) Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
Note 9 Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
Note 10 Earnings per Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
Note 11 Trade and Other Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
Note 12 Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
Note 13 Property, Plant and Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
Note 14 Intangible Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
Note 15 Investments in Associates and Joint Ventures . . . . . . . . . . . . . . 132
Note 16 Other Non-Current Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
Note 17 Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
Note 18 Trade Payables and Other Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . 134
Note 19 Debt Due within One Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
Note 20 Long-Term Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
Note 21 Post-Employment Benet Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138
Note 22 Other Non-Current Liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
Note 23 Financial and Capital Management . . . . . . . . . . . . . . . . . . . . . . . . . . 142
Note 24 Share Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
Note 25 Share-Based Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
Note 26 Commitments and Contingencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
Note 27 Related Party Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
Note 28 Signicant Partly-Owned Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . 150
MEASURES USED TO MANAGE OUR BUSINESS . . . . . . . . . . . . . . . . . . . . . 151
BOARD OF DIRECTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152
EXECUTIVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
INVESTOR INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
M
D
&
A

In this managements discussion and analysis of nancial condition
and results of operations (MD&A), we, us, our, BCE and the company
mean, as the context may require, either BCE Inc. or, collectively,
BCE Inc., its subsidiaries, joint arrangements and associates. Bell
means our Bell Wireline, Bell Wireless and Bell Media segments
on an aggregate basis. Bell Aliant means, as the context may
require, either Bell Aliant Inc. or, collectively, Bell Aliant Inc. and its
subsidiaries and associates.
All amounts in this MD&A are in millions of Canadian dollars, except
where noted. Please refer to Measures Used to Manage our Business
on page 151 for a list of dened measures.
Please refer to BCEs audited consolidated nancial statements
for the year ended December 31, 2013 when reading this MD&A.
In preparing this MD&A, we have taken into account information
available to us up to March 6, 2014, the date of this MD&A, unless
otherwise stated.
You will nd BCEs audited consolidated nancial statements for
the year ended December 31, 2013, BCEs annual information form
for the year ended December 31, 2013 dated March 6, 2014 (BCE
2013 AIF) and recent nancial reports on BCEs website at BCE.ca,
on SEDAR at sedar.com and on EDGAR at sec.gov.
This MD&A comments on our business operations, performance,
nancial position and other matters for the two years ended
December 31, 2013 and 2012.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
BCEs 2013 annual report including this MD&A and, in particular, but
without limitation, section 1.4, Capital Markets Strategy, section 2,
Bells Strategic Imperatives, section 3.2, Business Outlook and
Assumptions, section 5, Business Segment Analysis and section
6.6, Liquidity of this MD&A contain forward-looking statements.
These forward-looking statements include, but are not limited to,
BCEs 2014 annualized common share dividend and common share
dividend policy, Bell Canadas credit policies, BCEs business outlook,
objectives, plans and strategic priorities, the sources of liquidity
we expect to use to meet our anticipated 2014 cash requirements,
our 2014 expected post-employment benet plan funding, and
our networks deployment plans. Forward-looking statements
also include any other statements that do not refer to historical
facts. A statement we make is forward-looking when it uses what
we know and expect today to make a statement about the future.
Forward-looking statements are typically identied by the words
assumption, goal, guidance, objective, outlook, project, strategy,
target and other similar expressions or future or conditional verbs
such as aim, anticipate, believe, could, expect, intend, may, plan,
seek, should, strive and will. All such forward-looking statements
are made pursuant to the safe harbour provisions of applicable
Canadian securities laws and of the United States Private Securities
Litigation Reform Act of 1995. Unless otherwise indicated by us,
forward-looking statements in BCEs 2013 annual report, including
in this MD&A, describe our expectations as at March 6, 2014 and,
accordingly, are subject to change after this date. Except as may
be required by Canadian securities laws, we do not undertake any
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
Forward-looking statements, by their very nature, are subject
to inherent risks and uncertainties and are based on several
assumptions, both general and specic, which give rise to the
possibility that actual results or events could differ materially from
our expectations expressed in, or implied by, such forward-looking
statements and that our business outlook, objectives, plans and
strategic priorities may not be achieved. As a result, we cannot
guarantee that any forward-looking statement will materialize and
we caution you against relying on any of these forward-looking
statements. Forward-looking statements are presented in BCEs 2013
annual report, including in this MD&A, for the purpose of assisting
investors and others in understanding our objectives, strategic
priorities and business outlook as well as our anticipated operating
environment. Readers are cautioned, however, that such information
may not be appropriate for other purposes.
We have made certain economic, market and operational assump-
tions in preparing forward-looking statements contained in BCEs
2013 annual report and, in particular, but without limitation, the
forward-looking statements contained in the above-mentioned
sections of this MD&A. These assumptions include, without limitation,
the assumptions described in the various sections of this MD&A
entitled Business Outlook and Assumptions, which sections are
incorporated by reference in this cautionary statement. We believe
that these assumptions were reasonable at March 6, 2014. If our
assumptions turn out to be inaccurate, our actual results could be
materially different from what we expect.
Important risk factors including, without limitation, competitive,
regulatory, economic, nancial, operational and technological
risks that could cause actual results or events to differ materially
from those expressed in, or implied by, the above-mentioned
forward-looking statements and other forward-looking statements
in BCEs 2013 annual report, as well as in this MD&A, include, but are
not limited to, the risks described in section 9, Business Risks, which
section is incorporated by reference in this cautionary statement.
We caution readers that the risks described in the above-mentioned
section and in other sections of this MD&A are not the only ones
that could affect us. Additional risks and uncertainties not currently
known to us or that we currently deem to be immaterial may also
have a material adverse effect on our nancial position, nancial
performance, cash ows, business or reputation. Except as otherwise
indicated by us, forward-looking statements do not reect the
potential impact of any special items or of any dispositions,
monetizations, mergers, acquisitions, other business combinations
or other transactions that may be announced or that may occur
after March 6, 2014. The nancial impact of these transactions and
special items can be complex and depends on the facts particular
to each of them. We therefore cannot describe the expected impact
in a meaningful way or in the same way we present known risks
affecting our business.
MANAGEMENTS DISCUSSION
AND ANALYSIS
1

O
V
E
R
V
I
E
W
M
D
&
A

1 OVERVIEW
1.1 INTRODUCTION
AT A GLANCE
BCE is Canadas largest communications company, providing
residential, business and wholesale customers with a wide range
of solutions for all their communications needs. BCEs shares are
publicly traded on the Toronto Stock Exchange and on the New York
Stock Exchange (TSX, NYSE: BCE).
In 2013 and 2012, we reported the results of our operations in four
segments: Bell Wireline, Bell Wireless, Bell Media and Bell Aliant.
Our Bell Wireline segment provides local telephone, long distance,
data, including Internet access and television (TV), as well as
other communications services and products to Bells residential,
small and medium-sized business and large enterprise customers,
primarily in the urban areas of Ontario and Qubec. In addition, this
segment includes our wholesale business, which buys and sells
local telephone, long distance, data and other services from or to
resellers and other carriers.
Our Bell Wireless segment provides wireless voice and data
communication products and services to Bells residential, small
and medium-sized business and large enterprise customers
across Canada.
Our Bell Media segment provides conventional, specialty and pay
TV, digital media, and radio broadcasting services to customers
across Canada and out-of-home (OOH) advertising services. On
July 5, 2013, BCE acquired 100% of the issued and outstanding shares
of Astral Media Inc. (Astral). The results of Astral are included in our
Bell Media segment from the date of acquisition.
Our Bell Aliant segment provides local telephone, long distance,
Internet, data, TV, wireless, home security and value-added business
solutions to residential and business customers in the Atlantic
provinces and in rural and regional areas of Ontario and Qubec.
Bell Aliant is a public company in which we own a 44.1% interest, with
the remaining 55.9% publicly held. BCE controls Bell Aliant through
its right to appoint a majority of the board of directors of Bell Aliant.
BCES BUSINESS SEGMENTS
BCE is Canadas
largest
communications
company
We also hold investments in a number of other assets, including:
a 28% indirect equity interest in Maple Leaf Sports & Entertainment Ltd. (MLSE)
a 35.3% indirect equity interest in Q9 Networks Inc. (Q9)
a 18.4% indirect equity interest in entities that operate the Montral Canadiens Hockey Club and the Bell Centre in Montral
a 15% equity interest in the Globe and Mail
1
BCE
BELL
WIRELESS
BELL
MEDIA
BELL
WIRELINE
BELL
ALIANT
1

O
V
E
R
V
I
E
W
M
D
&
A

BCE 2013
OPERATING REVENUES
$20,400
MILLION
BCE 2013
EBITDA
(1)
$8,089
MILLION
BCE 2013
NET EARNINGS
$2,388
MILLION
BCE
Customer
Connections
BCE 2013 2012 CHANGE
Wireless Subscribers 7,925,032 7,824,890 1.3%
Postpaid 6,798,093 6,541,827 3.9%
Internet Subscribers 3,136,636 3,045,235 3.0%
TV (Satellite and Internet Protocol
Television) (IPTV)) Subscribers 2,489,248 2,312,065 7.7%
Total Growth Services 13,550,916 13,182,190 2.8%
Wireline Network Access
Service (NAS) lines 7,595,569 8,136,309 (6.6%)
Total Services 21,146,485 21,318,499 (0.8%)
OUR GOAL
Our goal is to be recognized by customers as Canadas leading
communications company. Our primary business objectives are
to maximize subscribers, revenues, operating prot, free cash
ow
(1)
and return on invested capital by further enhancing our
position as the foremost provider in Canada of comprehensive
communications services to residential and business customers. We
seek to take advantage of opportunities to leverage our networks,
infrastructure, sales channels, and brand and marketing resources
across our various lines of business to create value for both our
customers and other stakeholders.
Our strategy is centred on our disciplined focus and execution of
six strategic imperatives. The six strategic imperatives that underlie
Bells business plan are:
1 Accelerate Wireless
2 Leverage Wireline Momentum
3 Expand Media Leadership
4 Invest in Broadband Networks and Services
5 Achieve a Competitive Cost Structure
6 Improve Customer Service
(1) EBITDA and free cash ow are non-GAAP nancial measures and do not have any standardized meaning under International Financial Reporting Standards (IFRS). Therefore,
they are unlikely to be comparable to similar measures presented by other issuers. See section 10.2 Non-GAAP Financial Measures EBITDA and Free Cash Flow in this MD&A
for more details, including, for free cash ow, a reconciliation to the most comparable IFRS nancial measure.
1

O
V
E
R
V
I
E
W
M
D
&
A

1.2 ABOUT BCE
We report the results of our operations in four segments: Bell Wireless, Bell Wireline, Bell Media and Bell Aliant. Bell, which encompasses
our core operations, is comprised of our Bell Wireless, Bell Wireline and Bell Media segments. We describe our product lines, by segment
below, to provide further insight into our operations.
OUR PRODUCTS AND SERVICES
Bell Wireless
SEGMENT DESCRIPTION
Provides integrated digital wireless voice and data communications
products and services to residential and business customers across Canada
Includes the results of operations of Bell Mobility Inc. (Bell Mobility)
and wireless-related product sales from The Source (Bell) Electronics Inc.
(The Source)
OUR BRANDS INCLUDE
OUR NETWORKS AND REACH
We have deployed and operate a number of leading nationwide
wireless broadband networks compatible with global standards that
deliver high-quality and reliable voice and high-speed data services
to virtually all of the Canadian population.
Fourth Generation (4G) Long-term Evolution (LTE) network launched
in September 2011
Offers mobile Internet data access speeds as fast as 75 mega-
bits per second (Mbps) in most areas (typical speeds of 12 to
25 Mbps) and up to 150 Mbps in others (typical speeds of 18 to
40 Mbps)
Covers 80% of the Canadian population coast-to-coast at
December 31, 2013
Roams on the High-speed packet access plus (HSPA+) network
outside LTE urban coverage area
HSPA+ network launched in November 2009
Offers high-speed mobile access of up to 21 Mbps in most areas
(typical speeds of 3.5-8 Mbps), and as high as 42 Mbps in areas
with dual cell capability when using compatible devices (typical
speeds of 7 to 14 Mbps)
Covered over 98% of the Canadian population coast-to-coast
at December 31, 2013
Supports international roaming in more than 200 countries
National 3G code division multiple access (CDMA), evolution data
optimized network, which we plan to continue operating for the
foreseeable future
Largest wireless delity (Wi-Fi) network across Canada
Over 4,000 public Wi-Fi hotspots at participating McDonalds,
Tim Hortons and Chapters/Indigo retail outlets across
Canada, in addition to thousands of private Wi-Fi networks
managed through our Bell Business Markets unit at enterprise
customer locations
Approximately 1,600 Bell-branded stores and The Source locations
across Canada
Voice and data plans, available on either postpaid
or prepaid options
Extensive selection of 4G LTE-capable devices, including
leading smartphones as well as the iPad and iPad mini
Data: E-mail, web browsing, social networking, text messaging,
picture and video messaging and call features
Mobile TV: over 40 live and on-demand channels on smart-
phones and tablets
Entertainment: games, ringtones, wallpapers, ringback tones,
music downloads and video streaming
Mobile Internet: Turbo Stick, Turbo Hub and MiFi
Mobile commerce: secure debit and credit purchases using
Bell Mobility smartphones
Mobile business services: sales force automation, push-to-talk,
eld service automation, resource and tracking tools
Roaming services with other wireless service providers
in more than 200 countries worldwide
Machine-to-machine (M2M) applications, including connected
car and usage-based insurance vehicle tracking
1

O
V
E
R
V
I
E
W
M
D
&
A

Bell Wireline
SEGMENT DESCRIPTION
Provides local telephone, long distance, data (including TV, Internet access
and information and communications technology (ICT) solutions) and other
communications services to residential and business customers primarily
in the urban areas of Ontario and Qubec. We also offer competitive local
exchange carrier (CLEC) services in Alberta and British Columbia
Includes the results of our wholesale business, which provides local telephone,
long distance, data and other services to resellers and other carriers, and
the Wireline operations of NorthwesTel Inc. (NorthwesTel), which provides
telecommunications services in Canadas Northern Territories
Includes wireline-related product sales from our wholly-owned subsidiary,
national consumer electronics retailer The Source
OUR BRANDS INCLUDE
Extensive local access network primarily in the urban areas of
Ontario and Qubec, as well as in Canadas Northern Territories
Broadband bre network, consisting of bre-to-the-node
(FTTN), bre-to-the-home (FTTH) and bre-to-the-building
(FTTB), covering 5.8 million locations in Ontario and Qubec
IPTV service footprint encompassing 4.3 million households
across Ontario and Qubec at December 31, 2013
Largest Internet protocol (IP) multi-protocol label switching
footprint of any Canadian provider, enabling us to offer
business customers a virtual private network (VPN) service for
IP trafc and to optimize bandwidth for real-time voice and TV
Access to the largest data centre footprint in Canada with
21 locations in 4 provinces, enabling us to offer data centre
co-location and hosted services to business customers
across Canada
Approximately 1,600 Bell-branded stores and The Source
locations across Canada
RESIDENTIAL
Bell TV: Fibe TV (our IPTV service) and direct-to-home (DTH)
Satellite TV, providing extensive content options and innovative
features such as wireless receiver, Whole Home personal video
recorder (PVR), on-demand programming, and a remote control
application (app)
Bell Internet: High-speed Internet access offering speeds up
to 50 Mbps with FTTN or 175 Mbps with FTTH, a wide range of
usage options, a comprehensive suite of security solutions,
e-mail, Wi-Fi home network, and mobile Internet
Bell Home Phone: Local telephone service with long distance
and advanced calling features
Bell Bundles: three and four product bundles of services
with monthly discounts
BUSINESS
IP-based services: IP VPN, Ethernet, business Internet
and Voice over Internet protocol (VoIP)
ICT solutions: Hosted and cloud services, managed solutions,
professional services and infrastructure services that support
and complement our data connectivity services
Voice: local and long distance and unied communications
services, including audio and video conferencing, webcasting,
and web conferencing business terminal equipment
1

O
V
E
R
V
I
E
W
M
D
&
A

Bell Media
SEGMENT DESCRIPTION
Canadas premier multimedia company with leading assets in TV,
radio and digital media
On July 5, 2013, we completed the acquisition of Astral adding eight specialty
and pay TV services, 77 radio stations and digital media properties across Canada,
as well as OOH advertising platforms, to Bell Medias portfolio of assets
Revenues are derived primarily from advertising and subscriber fees
Conventional TV revenue is derived from advertising
Specialty TV revenue is generated from subscription fees and advertising
Pay TV revenue is received from subscription fees
Radio revenue is generated from advertising aired over our stations
OOH revenues are generated from advertising
OUR BRANDS INCLUDE
OUR ASSETS AND REACH
TV
30 conventional TV stations, including CTV Inc. (CTV), Canadas
leading TV network based on viewership
35 specialty TV channels, including TSN, Canadas leading
specialty sports channel and RDS, Canadas leading French-
language specialty sports channel
Four pay TV services, including The Movie Network and
Super cran
RADIO
107 licenced radio stations in 55 markets across Canada
OOH ADVERTISING
Network of more than 9,500 advertising faces in Qubec,
Ontario and British Columbia
DIGITAL MEDIA
More than 200 websites, including TheLoop.ca
SPORTS BROADCAST RIGHTS
Bell Media has secured long-term media rights to many of the
key sports properties that are most important to Canadians,
including being the ofcial Canadian broadcaster of the
Super Bowl, Grey Cup, IIHF World Junior Championship and
FIFA Womens World Cup Canada 2015. Bell Medias slate of
live sports coverage also includes the Toronto Maple Leafs,
Montral Canadiens, Winnipeg Jets and Ottawa Senators
games, NFL, NBA, MLS, Season of Champions Curling, UEFA
Euro 2016, MLB, Barclays Premier League, golfs major cham-
pionships, NASCAR Sprint Cup, Formula 1, Grand Slam Tennis
and NCAA March Madness
OTHER ASSETS
We also have a 50% interest in Dome Productions Partnership,
one of North Americas leading providers of sports and other
event production and broadcast facilities
Varied and extensive array of TV programming to broadcast
distributors across Canada
Advertising on our TV, radio, OOH, and digital media properties
to both local and national advertisers across a wide range of
industry sectors
Mobile TV service with live and on-demand access to content
from our conventional TV networks, CTV and CTV Two, as well
as real-time access to BNN, TSN, RDS, MTV and other brands in
news, sports and entertainment. This mobile content is offered
on commercial terms to all Canadian wireless providers
TV Everywhere services, including TMN GO and CTV GO, which
provide live and on-demand content delivered over mobile and
Wi-Fi networks to smartphones, tablets and computers
1

O
V
E
R
V
I
E
W
M
D
&
A

Bell Aliant
SEGMENT DESCRIPTION
One of the largest regional telecommunications service providers
in North America
Provides a complete range of innovative communications, information and
entertainment services, including voice, Internet, data, TV, wireless, home security,
and value-added business solutions to residential and business customers in
Canadas Atlantic Provinces, as well as in rural and regional areas of Ontario
and Qubec
OUR BRANDS INCLUDE
Reaching over 5 million Canadians in six provinces (Nova Scotia,
New Brunswick, Newfoundland and Labrador, Prince Edward
Island, Ontario and Qubec)
Extensive local access network in Atlantic Canada, as well as
in certain areas of Ontario and Qubec not serviced by Bell
Extensive broadband bre infrastructure, consisting primarily
of a FTTH network covering more than 806,000 locations
Residential service bundles that have a combination of Internet
service (FibreOP or Digital subscriber line), TV (FibreOP TV,
Bell Aliant TV, or Bell Satellite TV), home phone, local features,
long distance plans and cellular service (over digital wireless
networks in certain territories in Qubec and Ontario or
Bell Mobility)
In business markets, we provide combined service offerings
in the form of business bundles and customized solutions
Other BCE Investments
BCE also holds investments in a number of other assets, including:
MLSE: 28% indirect equity interest
Q9: 35.3% indirect equity interest
Montral Canadiens Hockey Club: 18.4% indirect equity interest
The Globe and Mail: 15% equity interest
OUR PEOPLE
EMPLOYEES
We are a team of 55,830 employees, dedicated to driving shareholder return and improving customer service.
BCE
EMPLOYEES
BCE
2012 EMPLOYEES
BCE
2013 EMPLOYEES

2012 2013
55,830
55,500
49,545
6,285
48,800
6,700
65%
10%
13%
12%
63%
13%
13%
11%

Bell

Bell Aliant

Bell Wireline

Bell Wireless

Bell Media

Bell Aliant

Bell Wireline

Bell Wireless

Bell Media

Bell Aliant
1

O
V
E
R
V
I
E
W
M
D
&
A

The total number of BCE employees at the end of 2013 increased
by 330 employees compared to 2012, due primarily to the acqui-
sition of Astral. This increase was offset partly by a decreased
workforce across our Bell Wireline, Bell Wireless and Bell Aliant
segments attributable to normal attrition, retirements and
productivity improvements.
Approximately 44% of total BCE employees are represented by
labour unions.
BELL CODE OF BUSINESS CONDUCT
The ethical business conduct of our people is core to the integrity
with which we operate our business. The Bell Code of Business
Conduct sets out specic expectations and accountabilities,
providing employees with practical guidelines to conduct business
in an ethical manner. Our commitment to the Code of Conduct is
renewed by employees each year in an ongoing effort to ensure
that all employees are aware of and adhere to Bells standards
of conduct.
1.3 KEY CORPORATE DEVELOPMENTS
ACQUISITION OF ASTRAL
On July 5, 2013, BCE acquired 100% of the issued and outstanding
shares of Astral for a cash consideration of $2,876 million and the
repayment of $397 million of debt. Astral is a media company that
operates specialty and pay TV channels, radio stations and digital
media properties across Canada, and provides OOH advertising
services. BCE acquired Astral to enhance our competitive position in
French-language broadcasting in Qubec, control content costs, and
increase opportunities for cross-platform innovation and advertising
packages spanning digital, TV, radio and OOH advertising.
In order to approve the transaction, the Competition Bureau
and the Canadian Radio-television and Telecommunications
Commission (CRTC) required the divestiture by BCE of eleven Astral
TV services and ten Astral and Bell Media English-language radio
stations. BCE retained eight Astral TV services: the French-language
Supercran, CinPop, Canal Vie, Canal D, VRAK TV and Z Tl, and
English-language services The Movie Network, which includes HBO
Canada, and TMN Encore. BCE also retained 77 Astral radio stations
and Astrals national OOH advertising business. As a result of the
transaction, Bell Media now owns 30 local TV stations, 39 specialty
and pay channels, and 107 radio stations, excluding the TV assets
and radio stations to be divested.
In January 2014, Bell completed the sale of Astrals share of six TV
services (the bilingual Teletoon/Tltoon service, English-language
Teletoon Retro and Cartoon Network (Canada) and French-language
Tltoon Rtro, Historia and Sries+) and two radio stations in
Ottawa (CKQB-FM and CJOT-FM) to Corus Entertainment Inc.
(Corus) as part of the divestiture process required by the CRTC
and the Competition Bureau. Bell also completed the sale of two
Winnipeg radio stations (CHIQ-FM and CFQX-FM) and one Calgary
radio station (CKCE-FM) to Jim Pattison Broadcast Group (Pattison).
Together, these sales generated total proceeds of $427.2 million. In
addition, as a result of distinct auction processes, Bell has announced
the following proposed transactions to sell each of the remaining
ve Astral TV assets and ve radio stations required to be divested
by the CRTC and, as applicable, the Competition Bureau:
On August 26, 2013, Bell reached an agreement with
Newcap Inc. for the sale of two Toronto radio stations
(CHBM-FM and CFXJ-FM) and three Vancouver radio stations
(CKZZ-FM, CHHR-FM and CISL-AM)
On November 28, 2013, Bell reached an agreement with
DHX Media Ltd. for the sale of the following TV services: Family
(including Disney Junior English), Disney XD and Disney Junior
French services
On December 3, 2013, Bell reached an agreement with V
Media Group for the sale of the two remaining TV services,
MusiquePlus and MusiMax
Completion of these divestitures is subject to closing conditions,
termination rights and other risks and uncertainties including,
without limitation, approval by the CRTC. Accordingly, there can
be no assurance that the proposed sale transactions will occur,
or that they will occur on the terms and conditions currently
contemplated, and such proposed sale transactions could be
modied, restructured or terminated. As required by the CRTC
and the Competition Bureau, the management and control of the
assets to be sold were transferred to an independent trustee until
completion of their respective divestiture processes.
As part of its approval of the Astral acquisition, the CRTC ordered
BCE to spend $246.9 million in new benets for French- and
English-language TV, radio and lm content development, support for
emerging Canadian musical talent, training and professional develop-
ment for Canadian media, and new consumer participation initiatives.
Astral revenues of $412 million and net earnings of $77 million are
included in BCEs 2013 income statement from the date of acquisition.
CRTC WIRELESS CODE OF CONDUCT
On June 3, 2013, the CRTC issued a decision establishing a mandatory
code of conduct for all providers of retail mobile wireless voice and
data services in Canada (the Wireless Code). The Wireless Code
applies to all wireless services provided to individual and small
business consumers (e.g. businesses that on average spend less
than $2,500 per month on telecom services) in all provinces and
territories. Among other things, the Wireless Code stipulates that
wireless service providers may not charge an early cancellation
fee once a customer has been under contract for 24 months.
The Wireless Code establishes regulations related to unlocking
mobile phones and setting default caps for data roaming charges
and data overage charges. For more details on the Wireless Code,
refer to section 8.2, Telecommunications Act-Adoption of a National
Wireless Services Consumer Code.
1

O
V
E
R
V
I
E
W
M
D
&
A

ACQUISITION OF 700 MEGAHERTZ (MHz) WIRELESS SPECTRUM
The 700 MHz wireless spectrum auction began on January 14, 2014
and provisional spectrum licence winners were announced by
Industry Canada on February 19, 2014. The highly competitive
auction marked the rst time 700 MHz spectrum had been made
available to Canadian wireless carriers. This band of spectrum is
highly desirable due to its ability to penetrate into buildings and
propagate over long distances. Bell secured the right to acquire
signicant 700 MHz spectrum assets in every provincial and
territorial market. Bell will acquire 31 licences for $566 million for
480M Megahertz Population (MHz-POP) of nationwide 700 MHz
spectrum, bringing Bells total holdings across various spectrum
bands to more than 4,200M MHz-POP nationally. Bell expects to fund
its spectrum licensing payments to the federal government from
available sources of cash. These licences are expected to enable
rapid expansion of advanced 4G LTE broadband mobile services
to rural communities, small towns and Canadas North, while also
enhancing coverage in urban and suburban areas. Our 4G LTE
buildout plan is expected to bring advanced mobile broadband
services to more than 98% of Canadas population. We plan to begin
operationalizing the spectrum for the benet of our customers as
soon as it is made available to us later this year.
1.4 CAPITAL MARKETS STRATEGY
We seek to deliver sustainable shareholder returns through consistent dividend growth. That objective is underpinned by continued growth
in free cash ow performance, a healthy level of ongoing capital investment in the business, a strong balance sheet and an investment
grade credit prole.
DIVIDEND GROWTH AND PAYOUT POLICY
DIVIDEND GROWTH
+69%
SINCE 2008
2014 DIVIDEND INCREASE
+6.0%
TO $2.47 PER COMMON SHARE
DIVIDEND PAYOUT POLICY
65%-75%
OF FREE CASH FLOW
On February 6, 2014, we announced a 6.0%, or 14 cent, increase in
the annualized dividend payable on BCEs common shares for 2014
to $2.47 per share from $2.33 per share in 2013, starting with the
quarterly dividend payable on April 15, 2014. With this increase for
2014, BCEs annual common share dividend has increased 69% since
the fourth quarter of 2008.
The dividend increase for 2014 is consistent with BCEs common
share dividend policy of a target payout between 65% and 75% of
free cash ow. We intend to grow BCEs common share dividend
if we achieve free cash ow growth. BCEs dividend policy and
the declaration of dividends are subject to the discretion of BCEs
board of directors (Board).
We have a strong alignment of interest between shareholders and
our managements equity-based long-term incentive compensation
plan. The vesting of performance share units depends on the
realization of our dividend growth policy, while stock options reect
our commitment to increase the share price for our shareholders.
Simply put, as we grow our free cash ow and common dividend,
we create value for our shareholders and management alike.
BEST PRACTICES
ADOPTED BY
BCE
STRINGENT SHARE OWNERSHIP REQUIREMENTS
EMPHASIS ON PAY-AT-RISK FOR EXECUTIVE COMPENSATION
DOUBLE TRIGGER CHANGE IN CONTROL POLICY
ANTI-HEDGING POLICY ON SHARE OWNERSHIP AND INCENTIVE COMPENSATION
CLAWBACK PROVISION FOR CEO AND EVP (AS OF 2014) COMPENSATION
AND STOCK OPTION PLAN
CAPS ON ANNUAL BONUS PAYOUTS, PERFORMANCE SHARE UNIT PAYOUTS
AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN PAYMENTS
VESTING CRITERIA FOR PERFORMANCE SHARE UNITS FULLY ALIGNED
TO SHAREHOLDERS INTERESTS
ANNUAL SAY ON PAY VOTE
1

O
V
E
R
V
I
E
W
M
D
&
A

(1) Based on BCE common share price on the Toronto Stock Exchange and assumes the reinvestment of dividends.
(2) With approximately 95% coverage of the Canadian equities market, the S&P/TSX Composite Index is the primary gauge against which to measure total shareholder return
for Canadian-based, Toronto Stock Exchange-listed companies.
USE OF EXCESS CASH
Our dividend payout policy allows BCE to retain a high level of
excess cash, providing considerable overall nancial exibility.
Bell has deployed excess cash in a balanced manner in the last
ve years:
$2.75 billion of voluntary contributions to Bells dened benet
(DB) pension plan, which contributed to an improvement in the
funded position of the plan and helps to minimize the volatility
of future funding requirements
$1.7 billion in share buybacks completed through normal course
issuer bid (NCIB) programs
Over $6 billion to partially nance strategic acquisitions and
investments that support the growth of our business, including
Astral, CTV, MLSE, the Montral Canadiens, Q9, The Source and
Virgin Mobile Canada (Virgin Mobile)
TOTAL SHAREHOLDER RETURN PERFORMANCE
FIVE-YEAR CUMULATIVE TOTAL VALUE OF A $100 INVESTMENT
(1)
DECEMBER 31, 2008 DECEMBER 31, 2013
250$
225$
200$
175$
150$
125$
100$
75$
2008 2009 2010 2011 2012 2013
This graph compares the yearly change in the cumulative annual
total shareholder return of BCE common shares against the
cumulative annual total return of the S&P/TSX Composite Index, for
the ve-year period ending December 31, 2013, assuming an initial
investment of $100 on December 31, 2008 and that all subsequent
quarterly dividends were reinvested.
BCE Inc. S&P/TSX
(2)

5-YEAR TOTAL
SHAREHOLDER RETURN
+141%
2008 2013
1-YEAR TOTAL
SHAREHOLDER RETURN
+13.6%
2013
STRONG CAPITAL STRUCTURE
Bells capital structure and strong liquidity position provide us with a solid nancial foundation and a high level of overall nancial exibility.
Bell is well-positioned with an attractive long-term debt maturity prole and no near-term requirements to repay debt. We continue
to monitor the capital markets for opportunities where we can further reduce our cost of debt and our cost of capital. We proactively
manage nancial risk in terms of currency exposure of our more than $1 billion annual U.S. dollar-denominated purchases, as well as
equity risk exposure under BCEs long-term, equity-based incentive plans and interest rate exposure under our various debt instruments
and preferred shares. We also seek to maintain investment grade credit ratings with stable outlooks.
ATTRACTIVE LONG-TERM
DEBT MATURITY PROFILE
Average term of Bell Canadas debt
is 9.5 years
No debenture maturities before
December 2015
Average after-tax cost
of debt of 3.5%
STRONG LIQUIDITY POSITION
$2.5 billion credit facility
$500 million accounts receivable
securitization available capacity
$319 million cash on hand
at the end of 2013
SOLID INVESTMENT-GRADE
CREDIT PROFILE
Long-term debt credit rating of
A(low) by DBRS, Baa1 by Moodys and
BBB+ by S&P, all with stable outlooks
Maintain ratings in the A- to BBB+
range or equivalent
1

O
V
E
R
V
I
E
W
M
D
&
A

We successfully accessed the capital markets on three different
occasions during 2013 (March, June and September), raising a total
of $3 billion in gross proceeds from the issuance of Bell Canada
ve, seven and ten-year medium-term note (MTN) debentures on
attractive terms. With these new issuances, Bell Canadas average
annual pre-tax cost of debenture debt declined to 4.8% (3.5% on an
after-tax basis), compared to 5.3% (3.9% on an after-tax basis) in
2012, with an average term to maturity of 9.5 years. The net proceeds
of these offerings were used for general corporate purposes,
including the repayment of outstanding commercial paper, funding
a portion of the cost of our acquisition of Astral and to nance the
redemption of Bell Canadas 4.85%, Series M-20 MTN debentures.
The nancing structure for the acquisition of Astral has increased Bell
Canadas net debt leverage above our internal policy range of 1.5 to
2.0 times Adjusted EBITDA. That ratio is expected to improve steadily
over time with expected growth in EBITDA and free cash ow and
cash generation from the proceeds of the Astral remedy divestitures.
BELL CANADA CREDIT POLICIES
(1)
INTERNAL TARGET DECEMBER 31, 2013
Net debt to Adjusted EBITDA 1.5-2.0 2.49
Adjusted EBITDA to Net Interest >7.5 8.40
(1) Net debt is debt due within one year plus long-term debt and 50% of preferred
shares less cash and cash equivalents; Adjusted EBITDA is dened as twelve-month
trailing Bell EBITDA including dividends from Bell Aliant to BCE; Net interest is Bell
interest expense excluding interest on post-employment benet obligations and
including 50% of preferred share dividends.
1.5 CORPORATE GOVERNANCE AND RISK MANAGEMENT
CORPORATE GOVERNANCE PHILOSOPHY
BCEs Board and management believe that strong corporate
governance practices contribute to superior results in creating and
maintaining shareholder value. That is why we continually seek to
strengthen our leadership in corporate governance and ethical
business conduct by adopting best practices, and providing full
transparency and accountability to our stakeholders.
Key governance strengths and actions in support of our governance
philosophy include:
Separation of the Board Chair and chief executive ofcer
(CEO) roles
Director independence standards
Board committee memberships restricted to
independent directors
Annual director effectiveness and performance assessments
Ongoing reporting to Board committees regarding ethics
programs and the oversight of corporate policies across BCE
Share ownership guidelines for directors and executives
Executive compensation programs tied to BCEs ability
to grow its common share dividend
In 2013, the BCE Board was recognized by the Canadian Coalition
for Good Governance, receiving the organizations Gavel Award
for best corporate governance disclosure, which underscores the
importance of effective communication between corporations and
their shareholders. The Canadian Society of Corporate Secretaries
also named BCE the winner of its rst-ever award for best overall
corporate governance, recognizing our long history of best practices
in building and sustaining shareholder and stakeholder value.
In addition, BCE received the Best Overall Corporate Governance
Award International at the Corporate Secretary Corporate
Governance Awards in New York. These achievements recognize
the expertise and guidance provided by the BCE Board, and the
hard work and dedication of the BCE team in ensuring rigorous
governance over our companys operations.
For more information, please refer to BCEs most recent notice of
annual general shareholder meeting and management proxy circular
led with the Canadian provincial securities regulatory authorities
available on SEDAR at sedar.com and on BCEs website at BCE.ca.
RISK GOVERNANCE FRAMEWORK
BOARD OVERSIGHT
BCEs full Board is entrusted with the responsibility for overseeing
the principal risks to which Bells business is exposed and seeking to
ensure there are processes in place to effectively identify, monitor
and manage them. These processes seek to mitigate rather than
eliminate risk. A risk is the possibility that an event might happen
in the future that could have a negative effect on our nancial
position, nancial performance, cash ows, business or reputation.
The Board delegates responsibility for the execution of certain
elements of the risk oversight program to Board committees in
order to ensure that they are treated with appropriate expertise,
attention and diligence, with reporting to the Board in the ordinary
course. The Board retains overall responsibility for, as well as direct
oversight of, other risks, such as those relating to Bells competitive
environment, complexity, strategic network evolution, customer
service, information technology (IT), strategy development and
business integration.
AUDIT
COMMITTEE
COMPENSATION
COMMITTEE
GOVERNANCE
COMMITTEE
PENSION
COMMITTEE
BOARD OF
DIRECTORS
1

O
V
E
R
V
I
E
W
M
D
&
A

Risk information is reviewed by the Board or the relevant committee
throughout the year and business leaders present regular updates on
the execution of business strategies, risks and mitigation activities.
The Audit Committee oversees nancial reporting and disclosure
as well as overseeing that appropriate risk management processes
are in place across the organization. As part of its risk management
oversight activities, the Audit Committee reviews the organizations
risk reports and ensures that responsibility for each principal risk
is formally assigned to a specic committee or the full Board, as
appropriate. The Audit Committee also regularly considers risks
relating to nancial reporting, legal proceedings, physical security,
performance of critical infrastructure, information security, privacy
and records management, business continuity and the environment.
The Management Resources and Compensation Committee
(Compensation Committee) oversees risks relating to compensation,
succession planning and health and safety practices. The Pension
Committee has oversight responsibility for risks associated with
the pension fund. The Corporate Governance Committee assists the
Board in developing and implementing BCEs corporate governance
guidelines and determining the composition of the Board and its
committees. In addition, the Corporate Governance Committee over-
sees matters such as the organizations policies concerning business
conduct, ethics and public disclosure of material information.
RISK MANAGEMENT CULTURE
Bell has a strong culture of risk ownership which is actively
promoted by the Board and the companys CEO at all levels
within the organization. It has become a part of how the company
operates on a day-to-day basis and is woven into the structure
and operating principles, guiding the implementation of the
organizations strategic imperatives.
The CEO, selected by the Board, has set his strategic focus through
the execution of six strategic imperatives and focuses risk manage-
ment around the factors that could impact the achievement of those
strategic imperatives. While the constant change in the economic
environment and the industry creates challenges, the clarity around
strategic objectives, performance expectations, risk management
and integrity in execution ensures discipline and balance in all
aspects of Bells business.
RISK MANAGEMENT FRAMEWORK
While the Board is responsible for Bells risk oversight program,
operational business units are central to the proactive identication
and management of risk. They are supported by a range of
corporate support functions which provide independent expertise
to reinforce implementation of risk management approaches in
collaboration with the operational business units. The Internal Audit
function provides a further element of expertise and assurance,
working to provide insight and support to the operational business
units and corporate support functions while also providing the Audit
Committee with an independent perspective on the state of risk
and control within the organization. Collectively, these elements
can be thought of as a Three Lines of Defence approach to risk
management which is aligned with industry best practices and is
endorsed by the Institute of Internal Auditors.
RISK AND
CONTROL
ENVIRONMENT
BOARD AND
COMMITTEES
OVERSIGHT
CORPORATE
SUPPORT GROUPS
2nd LINE OF
DEFENCE
OPERATIONAL
BUSINESS UNITS
1st LINE OF
DEFENCE
INTERNAL
AUDIT GROUP
3rd LINE OF
DEFENCE
FIRST LINE OF DEFENCE OPERATIONAL MANAGEMENT
The rst line refers to management within Bells operational business
segments (Wireless, Wireline and Media) who are expected to
understand their operations in great detail and the nancial results
which underpin them. There are regular reviews of operating
performance involving the organizations executive and senior
management. The discipline and precision associated with this
process, coupled with the alignment and focus around performance
goals, creates a high degree of accountability and transparency,
in support of Bells risk management practices.
As risks emerge in the business environment, they are discussed
in a number of regular forums to share details and explore their
relevance across the organization. Executive and senior manage-
ment is integral to these activities in driving the identication of
risks, assessment, mitigation and reporting at all levels. Formal risk
reporting occurs through strategic planning sessions, management
presentations to the Board and formal enterprise risk reporting
which is shared with the Board and the Audit Committee during
the year.
Management is also responsible for maintaining effective
internal controls and for executing risk and control procedures
on a day-to-day basis. Each operational business unit develops
its own operating controls and procedures that t the needs of its
unique environment.
SECOND LINE OF DEFENCE
CORPORATE SUPPORT FUNCTIONS
Bell is a large enterprise with approximately 50,000 employees,
multiple business units and a diverse portfolio of risks which can
change as a result of internal and external factors. In a large
organization, it is common to manage certain functions centrally
for efciency, scale and consistency. While the rst line of defence
is often central to identication and management of business
risks, in many instances operational management works both
collaboratively with, and also relies on, the corporate functions
which make up the second line of defence for support in these areas.
These corporate functions include Finance, Corporate Security and
Corporate Risk Management, as well as others such as Legal and
Regulatory, Corporate Responsibility, Real Estate and Procurement.
1

O
V
E
R
V
I
E
W
M
D
&
A

Finance Function: Bells Finance function plays a pivotal role in
seeking to identify, assess and manage risks through a number of
different activities which include nancial performance manage-
ment, external reporting, capital management and oversight and
execution practices related to the United States Sarbanes-Oxley Act.
Corporate Security Function: This function is responsible for all
aspects of security, which requires a deep understanding of
the business, the risk environment and the external stakeholder
environment. Based on this understanding, Corporate Security sets
the standards of performance required across the organization
through security policy denitions and monitors the organizations
performance against these policies. In high and emerging risk
areas such as cybersecurity, Corporate Security leverages its
experience and competence and, through collaboration with the
operational business units, develops strategies intended to mitigate
the organizations risks.
Corporate Risk Management Function: This function works across
the company to gather information and report on the organizations
assessment of its principal risks and the related exposures. Annually,
senior management participates in a risk survey which provides an
important reference point in the overall risk assessment process.
The second line of defence is critical in building and operating
the oversight mechanisms which bring focus to relevant areas
of risk and reinforce the bridges between the rst and second
lines of defence, thereby seeking to ensure that there is a clear
understanding of emerging risks, their relevance to the organization
and the proposed mitigation plans. To further coordinate efforts
between the rst and second lines of defence, Bell has established
a Security, Environmental, Health and Safety Committee (SEHS).
A signicant number of Bells most senior leaders are members of
this committee, whose purpose is to oversee Bells strategic security,
environmental, health and safety risks and opportunities. This
cross-functional committee seeks to ensure that relevant risks are
adequately recognized and mitigation activities are well-integrated
and aligned across the organization and are supported with
sufcient resources.
THIRD LINE OF DEFENCE INTERNAL AUDIT FUNCTION
Internal Audit is a part of the overall management information and
control system and has the responsibility to act as an independent
appraisal function. Its purpose is to provide the Audit Committee
and management with objective evaluations of the companys risk
and control environment, to support management in delivering
against Bells strategic imperatives and to maintain an audit
presence throughout Bell and its subsidiaries.
2

B
E
L
L
S

S
T
R
A
T
E
G
I
C

I
M
P
E
R
A
T
I
V
E
S
M
D
&
A

2 BELLS STRATEGIC IMPERATIVES
OUR SUCCESS IS BUILT ON THE BELL TEAMS DEDICATED EXECUTION OF THE 6 STRATEGIC
IMPERATIVES THAT SUPPORT OUR GOAL TO BE RECOGNIZED BY CUSTOMERS AS CANADAS
LEADING COMMUNICATIONS COMPANY.
2.1 ACCELERATE WIRELESS
Our objective is to grow our Bell Wireless business protably by focusing on postpaid subscriber acquisition and retention,
maximizing average revenue per unit (ARPU) by targeting high-value smartphone subscribers in all geographic markets
we operate in, leveraging our wireless networks, maintaining device and mobile content leadership to drive greater
wireless data penetration and usage, as well as by increasing our share of in-bound global roaming trafc.
2013 PROGRESS
Acquired 35% and 38% of total new postpaid gross and net
activations, respectively, among the three major wireless
carriers, while achieving leading ARPU growth of 2.6% and
EBITDA growth of 10.6%, as well as service margin expansion
of 2.0 percentage points over 2012
Expanded the number of smartphone users at the end of 2013
to 73% of our total postpaid subscribers, up from 62% at the
end of 2012
Grew Bell Mobile TV subscribers to more than 1.2 million at
the end of 2013, up 66% over 2012. Mobile TV offers on-the-go
access to over 40 sports, news, entertainment, and childrens
TV channels. Additionally, the Bell TV app enables customers to
access more than 70 other live and on-demand channels via
Wi-Fi on their smartphones and tablets
Expanded our leading smartphone line-up with 26 new
devices, including the Apple iPhone 5s and iPhone 5c, Samsung
Galaxy S4, Samsung Galaxy Note 3, Google Nexus 5, HTC One,
LG G2 and Sony Xperia Z1, adding to our extensive selection
of 4G LTE-capable devices. In addition, the Apple iPad and
iPad mini are also now available directly from Bell
Partnered with the Royal Bank of Canada (RBC) to develop a
secure mobile payment solution, RBC Wallet (ofcially launched
in January 2014), which allows RBC customers to use their
compatible Bell Mobility smartphones to make secure debit and
credit purchases at locations that accept contactless payments
Reduced the cost of mobile roaming in the countries Canadians
travel to the most, including the United States, most European
nations, Mexico, China, Turkey, Australia and New Zealand,
as well as many Caribbean sun destinations
Expanded the number of retail distribution points of sale with
the addition of 43 new Bell stores and 40 new The Source
locations across Canada
Renewed our partnership with GLENTEL Inc., Canadas largest
independent multi-carrier mobile phone retailer
Launched the new Bell M2M Management Centre, a secure
online portal offering Canadian businesses a comprehensive
suite of tools to manage connected devices across their
operations that enables customers to remotely view, administer
and control network-connected devices such as parking and
hydro meters, vending machines, and billboards through
a cloud-based, self-serve platform
2014 FOCUS
Protably maintain market share of incumbent wireless
postpaid gross and net activations
Further narrow the ARPU gap versus incumbent competitors
Continue to reduce customer churn and build incremental
points of distribution across Canada
Continue to offer the latest handsets and devices in a timely
manner to enable customers to benet from ongoing techno-
logical improvements by manufacturers and from faster data
speeds to optimize the use of our services
Drive revenues from commercializing new mobile commerce
and M2M services and applications
2
2

B
E
L
L
S

S
T
R
A
T
E
G
I
C

I
M
P
E
R
A
T
I
V
E
S
M
D
&
A

2.2 LEVERAGE WIRELINE MOMENTUM
We focus on leveraging our bre-based TV and Internet services to develop attractive residential offers that drive
higher multi-product bundle sales and improve customer satisfaction and retention. These new services contribute to
the ongoing shift of our operating mix away from legacy wireline voice services.
In our business markets, we remain focused on expanding our broadband network and strengthening our delivery
of integrated solutions to Canadian businesses, while continuing to manage the transformation of our business from
legacy network services to a fully-integrated data hosting, cloud computing and managed services provider.
2013 PROGRESS
Nearly doubled our total number of Fibe TV subscribers
to 479,430
Increased the number of three-product households those
that buy TV, Internet and Home Phone by 18% over 2012,
fuelled by our Fibe TV service, which drove higher pull-through
attach rates for Home Phone and Internet services with 80%
of all Bell Fibe TV customers taking three products
Launched the Fibe TV wireless receiver, the rst of its kind
in Canada, enabling customers to connect up to 5 additional
TVs anywhere in the home without the need for cable wiring
Launched the new Bell TV app, which lets customers watch
programming included in their TV service packages at home
on tablets or smartphones at no extra charge
Introduced the Fibe Remote app, which allows Fibe TV
subscribers to use their tablets and smartphones as a remote
control in their homes and to browse the programming guide
and set recordings from anywhere
Expanded our library of on-demand content with the addition
of programming from nine of Canadas most popular French-
language specialty channels, giving Fibe TV customers
on-demand access to popular French-language shows
Launched unlimited Internet usage options for as low
as $10 per month for customers who choose a triple bundle
with Bell TV, Bell Internet and either Bell Home Phone or
Bell Mobility wireless service
Launched Business Fibe TV and enhanced our Internet product
line-up for small business customer
Designed and delivered a full communications network
for Desjardins Group, deploying bre to 1,500 branches
and service centres
Won the tendering process to deliver a new e-mail system
for the federal government. Based on the latest e-mail
technology, the streamlined system will enhance security and
increase efciency, resulting in improved access to information
and services for Canadians
Extended our Bell Business Advantage program to all small
and medium business customers. The Bell Business Advantage
program rewards Bell business customers with savings and
exclusive offers on products and services they purchase every
day, such as ofce products and supplies, car rentals, gasoline
and courier services
2014 FOCUS
Expand our total base and market share of TV
and Internet subscribers protably
Continue to reduce total wireline residential net losses
Increase residential household ARPU
Increase the share of wallet of large enterprise customers,
expand and improve the sales coverage and performance
in our mid-sized business segment, increase the number of
net new customer relationships in both large and mid-sized
business and reduce small business customer losses
2.3 EXPAND MEDIA LEADERSHIP
We will continue to deliver leading sports, news, entertainment and business content across multiple broadband
platforms TV, Internet, smartphones and tablets. Our objectives are to grow audiences, introduce new services and
create new revenue streams for our media assets. We also plan to create more of our own content, ensuring that
Canadian attitudes, opinions, values, and artistic creativity are reected in our programming and in our coverage of
events in Canada and around the world.
2013 PROGRESS
Completed the acquisition of Astral on July 5, 2013, which
enhances Bell Medias competitive position, especially in the
Qubec marketplace
Achieved the highest TV ratings in all seasons for CTV,
Bell Medias conventional TV property, which was the most-
watched Canadian TV network for the 12th year in a row
with a majority of the Top 20 programs nationally in all key
demographics
Broadcasted 6 of the top 10 new shows for the rst 12 weeks
of the 2013 Fall season
Ranked eighth among all online properties in Canada, with
monthly averages of more than 11.5 million unique visitors,
serving over 1.35 billion videos, more than all broadcast
competitors combined
Launched the CTV GO app, enabling customers to access more
than 3,000 hours of programming from CTV and CTV Two on
their smartphones, tablets and computers at no additional
charge. We also launched TMN GO, the rst ever Canadian
TV Everywhere product from a broadcaster to offer premium
on-demand programming, as well as Bravo GO
2

B
E
L
L
S

S
T
R
A
T
E
G
I
C

I
M
P
E
R
A
T
I
V
E
S
M
D
&
A

Created and produced new Canadian shows, including The
Amazing Race Canada, which debuted with record results. The
program averaged 3.5 million viewers as the summers overall
#1 program and was the highest-rated Canadian series on
record, highest-rated series premiere ever, and the high-
est-rated debut season for any Canadian- or U.S.-produced
show televised in Canada
Concluded long-term broadcasting deals with two Canadian
NHL teams that take effect with the 2014-2015 NHL season:
RDS and the Montral Canadiens reached a new 12-year
regional broadcast rights agreement that provides RDS
with exclusive regional French-language broadcast rights
for the Canadiens through the 2025/2026 season
In January 2014, TSN and RDS announced a new 12-year
regional broadcast rights and corporate sponsorship
agreement with the Ottawa Senators through the
2025/2026 season
Concluded a multi-year extension of our broadcast partnership
with the NFL that will bring all Sunday games to CTV and
TSN, along with all digital media rights for the rst time,
enabling viewers to watch NFL games and content on Bells
and other broadcast distribution undertakings (BDUs) TV
Everywhere platforms
Concluded a new multi-platform broadcast agreement with
the CFL that extends our partnership through 2018, with
media rights to all CFL pre-season and regular season games,
playoffs and the Grey Cup
Secured a multi-year extension of our partnership with
Vancouver Whitecaps FC that includes TSN becoming the
ofcial Whitecaps FC broadcaster beginning in 2014 and
branding rights
Extended our partnership with Hockey Canada in respect
of the World Juniors through to 2021
Launched the French-language Specialty channel Canal D
Investigation
2014 FOCUS
Maintain strong audience levels and ratings across
all TV and radio properties
Reinforce industry leadership in conventional TV,
pay TV, sports media and radio
Develop in-house production and content creation for
distribution and utilization across all platforms and screens
Expand live and on-demand content through TV Everywhere
services
Grow French media properties
Leverage cross-platform and integrated sales and sponsorship
2.4 INVEST IN BROADBAND NETWORKS
AND SERVICES
We invest in wireline and wireless broadband platforms to deliver the most advanced wireless, TV, Internet and other
IP-based services available, to support continued subscriber and data growth across all our residential product lines
and the needs of our business market customers.
2013 PROGRESS
Invested over $3 billion in new capital to support the
continued deployment of next-generation wireline and
wireless broadband platforms
Expanded our next-generation 4G LTE wireless network
to reach 80% of the Canadian population coast-to-coast
Extended our Fibe TV service coverage by 1 million homes
to reach more than 4.3 million households across Ontario
and Qubec, which included new market launches in Ottawa,
Hamilton, Laval and Barrie as well as additional locations
across the Montral, Toronto and Qubec City regions
Began the implementation of pair bonding, which extended
the Fibe TV footprint by approximately 130,000 households
Grew our wireline broadband bre footprint to approximately
5.8 million locations passed with the continued deployment of
FTTN to more neighbourhoods throughout Qubec and Ontario,
FTTH to all new urban and suburban housing developments,
and FTTB to multiple-dwelling units (MDUs) and key large
business customer locations
Became the rst network operator in Canada to offer
100 Gigabits per second (100Gbps) super-core network
capability to meet the fast-growing demand for mobile data,
Internet performance and cloud computing applications for
business customers
2014 FOCUS
Extend Bell Fibe TV service coverage to approximately
5 million households as we grow our FTTN, FTTH and FTTB
footprint to more than 6 million locations passed
Acquire 700 MHz wireless spectrum to extend 4G LTE network
to rural markets
Manage wireless network capacity
2

B
E
L
L
S

S
T
R
A
T
E
G
I
C

I
M
P
E
R
A
T
I
V
E
S
M
D
&
A

2.5 ACHIEVE A COMPETITIVE COST STRUCTURE
Cost containment is a core element of our nancial performance. It remains a key factor in our objective to preserve
steady margins as we continue to experience revenue declines in our legacy wireline voice and data services and further
shift our product mix towards growth services. We aim to accomplish this through operating our business in the most
cost-effective way possible to extract maximum operational efciency and productivity gains.
2013 PROGRESS
Maintained a relatively stable Wireline EBITDA margin
compared to 2012
Achieved operating cost savings from further reductions in
supplier contract rates, call centre efciencies driven by lower
customer call volumes and eld service workforce productivity
gains realized through improved install times and deployment
of new dispatch tools
Lowered print and mailing costs as more customers took
advantage of our online self-serve options
Tightly managed travel and other discretionary spending
Raised $3 billion in gross proceeds from public debt offerings
that lowered Bell Canadas average after-tax rate of borrowing
to 3.5%
2014 FOCUS
Realize fully the cost synergies from the integration of Astral
into Bell Media
Execute on cost reductions and labour efciencies across Bell
to support maintenance of stable consolidated EBITDA margin
2.6 IMPROVE CUSTOMER SERVICE
Our objective is to enhance customers overall experience with Bell by delivering call centre efciency, meeting
commitments for the installation and timely repair of services, increasing network quality, and implementing process
improvements to simplify customer transactions and interactions with our front-line employees and self-serve tools.
All of these will help differentiate us from our competitors and gain long-term customer loyalty. We intend to achieve
this by delivering the programs and making the investments we need to improve our front-line service capabilities, our
networks, our products and our distribution channels to win and keep customers.
2013 PROGRESS
Enhanced online customer support on our Bell.ca website with
better design and navigation, improved search capabilities, and
an expanded selection of step-by-step tutorials
Updated the Mobile Self Serve app to let customers check
wireless handset upgrade eligibility and better manage their
Bell Mobility account. Mobile self-serve usage jumped to
31 million visits in 2013 from 7 million in 2010
Reduced customer calls to our service centres by 25% since
2011 through growing use of self-serve and improved rst
call resolution
Reduced Fibe TV installation time by 10% in 2013 and 22% since
beginning of 2012
Reduced Fibe TV provisioning from 5 days in 2012
to approximately 2 days at the end of 2013
Reduced wireless churn, the percentage of mobile customers
leaving each month, for postpaid services to 1.25% in 2013 from
1.30% in 2012
Maintained Same Day Next Day service completion rates for
repairing service issues with Bell Home Phone, TV and Internet
above 91% and arrived on time for customer appointments
more than 98% of the time for installations and repairs
Maintained customer satisfaction with technicians above 92%
for installations and repairs
Improved appointment notication process by including the
customers preferred method of contact as well as Automated
Dialing and Automated Device, text message and e-mail
Opened three new Canadian call centres in Orillia, Ontario, and
Jonquire (Saguenay) and Rouyn-Noranda, Qubec to serve
Bell customers
2014 FOCUS
Invest over $150 million in customer service initiatives, including
reducing complexity for call agents, through streamlined
support tools
Reduce further the total volume of wireline and wireless cus-
tomer calls to our residential and wireless services call centres
Improve customer satisfaction scores
Achieve better consistency in customer experience
Improve customer personalization
3

P
E
R
F
O
R
M
A
N
C
E

T
A
R
G
E
T
S
,

O
U
T
L
O
O
K
,

A
S
S
U
M
P
T
I
O
N
S

A
N
D

R
I
S
K
S
M
D
&
A

3 PERFORMANCE TARGETS, OUTLOOK,
ASSUMPTIONS AND RISKS
This section provides information pertaining to our performance against 2013 targets, our consolidated business outlook and operating
assumptions for 2014 and our principal business risks.
3.1 2013 PERFORMANCE VS. GUIDANCE TARGETS
FINANCIAL
GUIDANCE
2013
TARGET
2013
PERFORMANCE AND RESULTS MET
B
E
L
L
Revenue growth 2%4% 2.6%
Growth reected a revenue increase of 4.7% at Bell Wireless
and 17.1% at Bell Media, driven by the acquisition of Astral,
moderated by a 1.2% decrease at Bell Wireline.
EBITDA growth 3%5% 3.4%
Growth was driven by higher year-over-year Bell Wireless
revenue and positive Bell Wireline residential services revenue
growth, as strong TV and Internet expansion outpaced declines
in traditional voice services, and Astrals contribution to
Bell Media results.
Realized our cost savings objective to deliver a higher
year-over-year consolidated Bell EBITDA margin of 37.6%.
Capital intensity 16%17% 16.6%
Bell invested $3,001 million in new capital in 2013, an
increase of 2.7% over 2012, while maintaining Bells capital
intensity at 16.6%. Investment was focused on Bells strategic
priorities, including the deployment of broadband bre to
homes, neighbourhoods and businesses in Qubec and Ontario;
the expansion of our Fibe TV footprint, the ongoing roll-out of
4G LTE mobile service in markets across Canada; and higher
spending on network capacity to support increasing data usage
and customer growth.
B
C
E
Adjusted
Net Earnings
Per Share
(Adjusted EPS)
(1)
$2.97$3.03 $2.99
The increase in Adjusted net earnings was attributable to strong
Bell Wireless and Bell Media EBITDA growth of 10.6% and 21.7%,
respectively, partly offset by a 3.2% year-over-year decrease
in Bell Wireline EBITDA.
Free cash
ow growth
5%9% 5.9%
Growth was driven by higher EBITDA that more than fully funded
both increased capital expenditures and a higher common
share dividend paid in 2013.
3.2 BUSINESS OUTLOOK AND ASSUMPTIONS
OUTLOOK
Our 2014 outlook is supported by expected progress in the execution of Bells 6 Strategic Imperatives, while maintaining a sharp focus on
our dividend growth strategy. Bell continues to invest signicantly in next-generation TV, wireless, Internet and media growth services, and
pursues superior operational execution in the highly competitive Canadian communications marketplace, to deliver continued projected
growth in revenue, EBITDA, earnings and free cash ow.
The key 2014 operational priorities for Bell are:
Maintain wireless market share momentum of incumbent
postpaid customer activations
Reduce wireless customer churn and increase the number
of points of retail distribution to match competitors in key
markets across Canada
Acquire 700 MHz wireless spectrum
Deploy 4G LTE wireless network in rural areas and manage
wireless network capacity
Increase household revenue and total net residential subscriber
activations through targeted bundle offers led by Fibe TV
Grow IPTV footprint further to drive greater three-product
household penetration and higher TV and Internet subscriber
market share
3
(1) Adjusted net earnings and Adjusted EPS are non-GAAP nancial measures and do not have any standardized meaning under IFRS. Therefore, they are unlikely to be comparable
to similar measures presented by other issuers. See section 10.2 Non-GAAP Financial Measures Adjusted Net Earnings and Adjusted EPS in this MD&A for more details, including
a reconciliation to the most comparable IFRS nancial measures.
3

P
E
R
F
O
R
M
A
N
C
E

T
A
R
G
E
T
S
,

O
U
T
L
O
O
K
,

A
S
S
U
M
P
T
I
O
N
S

A
N
D

R
I
S
K
S
M
D
&
A

Increase the share of wallet of large enterprise customers,
Continue to invest in customer service initiatives, including
reducing complexity for call agents through streamlined
support tools
Maintain strong Bell Media TV ratings and expand live and
on-demand content through TV Everywhere services
Control escalating media content costs
Execute on cost reductions across the Bell organization to
support healthy EBITDA margins across all our businesses
Our planned nancial performance for 2014 enabled the company
to increase the annualized BCE common dividend by 14 cents, or 6%,
to $2.47 per share, maintaining our payout ratio at the mid-point
of our policy range of 65% to 75% of free cash ow.
ASSUMPTIONS
ASSUMPTIONS ABOUT THE CANADIAN ECONOMY
Growth in the Canadian GDP of 2.5% in 2014, compared
to estimated growth of 1.8% in 2013, based on the Bank
of Canadas most recent estimate
A faster pace of employment growth compared to 2013
MARKET ASSUMPTIONS
A sustained level of wireline and wireless competition
in both consumer and business markets
Higher, but slowing, wireless industry penetration driven by
the increasing adoption of smartphones, tablets and other
4G devices, the expansion of LTE service in non-urban markets,
the availability of new data applications and services, as well
as population growth
A relatively stable advertising market for Bell Media
3.3 PRINCIPAL BUSINESS RISKS
Provided below is a summary description of certain of our principal business risks. Certain additional business segment-specic risks are
reported in section 5, Business Segment Analysis. For a detailed description of the risks relating to our regulatory environment and the
other principal risks that could have a material adverse effect on our business, refer to section 8, Regulatory Environment, and section 9,
Business Risks, respectively.
COMPETITIVE ENVIRONMENT
We face intense competition across all business segments and
key product lines that could adversely affect our market shares,
service volumes and pricing strategies and, consequently, our
nancial results. The rapid development of new technologies,
services and products has altered the traditional lines between
telecommunications, Internet and broadcasting services and
brought new competitors to our markets. Technology substitution
and IP networks, in particular, continue to reduce barriers to
entry in our industry. This has allowed competitors to launch
new products and services and gain market share with far less
investment in nancial, marketing, personnel and technological
resources than has historically been required. The lower necessary
investment has enabled some competitors to be very disruptive in
their pricing. We expect these trends to continue in the future, which
could adversely affect our growth and our nancial performance.
The nature and degree of competition in all of BCEs markets are
constantly evolving with changing market and economic conditions
as well as expansion into new business areas, such as media, that
can be more volatile. Competition can intensify as markets mature,
market structure changes through vertical integration, the state
of the economy impacts advertising and new competitors bring
aggressive promotional offers and adjusted strategic brand
positioning. BCEs telecommunications and media network assets are
challenged by changes such as the proliferation of cheaper IP-based
communication, over-the-top (OTT) delivery mechanisms and the
introduction of cloud services and new PVR technologies. Such a
competitive environment could negatively impact our business
including, without limitation, in the following ways:
Wireline pricing pressures and product substitutions could
result in an acceleration of NAS line erosion beyond our
current expectations
As wireless penetration in Canada reaches higher levels,
acquiring new customers could become more difcult
Competitors continuing aggressive offers could result
in increased costs of acquisition and retention
The expansion and market penetration of low cost OTT
TV providers, while programming costs continue to rise for
traditional TV providers, could affect our business negatively
For a discussion of our competitive environment and competition
risk, as well as a list of our main competitors on a segmented
basis, refer to the sections entitled Competitive Landscape and
Industry Trends and Principal Business Risks in section 5, Business
Segment Analysis.
REGULATORY ENVIRONMENT
Although most of BCEs wireline and wireless services are forborne
from price regulation under the Telecommunications Act, the
Government of Canada and its relevant departments and agencies,
including the CRTC, Industry Canada and the Competition Bureau,
continue to play a signicant role in telecommunications policy
and regulatory matters, such as spectrum auctions, approval of
3

P
E
R
F
O
R
M
A
N
C
E

T
A
R
G
E
T
S
,

O
U
T
L
O
O
K
,

A
S
S
U
M
P
T
I
O
N
S

A
N
D

R
I
S
K
S
M
D
&
A

acquisitions, foreign ownership and broadcasting, and this may
affect our competitive position adversely. The federal government
may take positions against the telecommunications and media
industries, in general, or specically against Bell Canada or certain
of its subsidiaries. More precisely, the following are examples of
regulatory matters that could have negative nancial, operational,
competitive and reputational consequences for our business:
Increasing regulatory and government intervention
Changes in consumer wireless market dynamics resulting
from the implementation of the Wireless Code
Government initiatives promoting at least four wireless
competitors in each region of the country, such as the Industry
Canada policy regarding spectrum licence transfers
Our ability to positively inuence changes in the Canadian
regulatory framework or to meet regulatory standards or
adverse decisions
ECONOMIC AND FINANCIAL MARKET CONDITIONS
Our businesses are affected by general economic and nancial
market conditions, consumer condence and spending, and the
demand for, and prices of, our products and services. Adverse
economic conditions, such as economic downturns or recessions,
adverse conditions in the nancial markets, or a declining level
of retail and commercial activity, could have a negative impact
on the demand for our wireline, wireless and media products and
services. More specically, adverse economic and nancial market
conditions could result in:
Customers delaying or reducing purchases of our products
and services, or discontinuing using them
A decrease in advertising revenues for our media businesses
A decline in the creditworthiness of our customers which
could increase our bad debt expense
COMPLEXITY AND SERVICE AND OPERATIONAL EFFECTIVENESS
Business performance can be difcult in a multi-product environ-
ment with multiple technology platforms, billing systems, marketing
databases and a myriad of rate plans, promotions and product
offerings. Our product offerings and related pricing plans may be
too complex for customers to fully evaluate. Providing service that is
consistently recognized by customers as superior is a differentiator.
As the foundation of effective customer service stems from our
ability to deliver simple solutions to customers, complexity in our
operations may limit BCEs ability to respond quickly to market
changes and reduce costs. Complexity in our operations may
also lead to billing errors which could adversely affect customer
satisfaction, acquisition and retention. Complexity and service and
operational effectiveness challenges that could adversely affect
BCEs business, including our ability to efciently manage networks,
deliver services and control costs, include:
The integration of multiple technology platforms to support
our multi-product strategy
The incorporation of regulatory requirements into bundling,
rate plans and discounts
The development of new technological platforms and
associated processes to support new business models
and delivery mechanisms
The increasing number of smartphone users and our
growing Bell Fibe TV customer base, which could require
more support from our customer contact centres than
currently anticipated
The ability to leverage our electronic ecosystem to
make customer interaction simpler and more efcient
STRATEGIC NETWORK EVOLUTION
Ongoing technological advances, in conjunction with changing
market demand and competition, continue to put signicant
pressure on bandwidth and speed. Bell Fibe and Bell Aliant FibreOP
Internet and TV services are competitive differentiators but they
require rapid bre deployment involving signicant capital and time
investment. At the same time, a signicant number of our existing
wireline voice and data networks have been in operation for many
years and continue to be used to deliver our services. As time passes,
maintenance spares for certain critical network elements may cease
to exist due to manufacturers discontinuation of support and the
unavailability of compatible spares from third parties. In addition,
substantial capital and time investments are required to perform
life-cycle management and upgrades to maintain operational
status of these legacy networks. Strategic evolution of our wireline
networks is a critical element in a competitive environment and all
the network deployment, upgrading, maintenance and migration
activities compete for capital, development and engineering
resources. Our inability to carry out our wireline network evolution
activities successfully, including the following, could have an adverse
effect on our business and nancial results:
Executing on our strategic network evolution plans that support
new IP-based competitive service offerings while maintaining
network availability and performance on all deployed networks
and delivery of service offerings
Upgrading and deploying networks on a timely basis, and within
our capital intensity target, to expand our footprint in desired
areas and to support growing data demand
Migrating legacy customers to new platforms while ensuring
interoperability of systems
4

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

A
N
A
L
Y
S
I
S
M
D
&
A

4 CONSOLIDATED
FINANCIAL ANALYSIS
This section provides detailed information and analysis about BCEs performance in 2013 compared with 2012. It focuses on BCEs consolidated
operating results and provides nancial information for each of our businesses. For further discussion and analysis of our Bell Wireline, Bell
Wireless, Bell Media and Bell Aliant business segments, refer to section 5, Business Segment Analysis.
4.1 INTRODUCTION
BCE CONSOLIDATED INCOME STATEMENTS
2013 2012 $ CHANGE % CHANGE
Operating revenues 20,400 19,978 422 2.1%
Operating costs (12,311) (12,090) (221) (1.8%)
EBITDA
(1)
8,089 7,888 201 2.5%
Severance, acquisition and other costs (406) (133) (273) n.m.
Depreciation (2,734) (2,678) (56) (2.1%)
Amortization (646) (714) 68 9.5%
Finance costs
Interest expense (931) (865) (66) (7.6%)
Interest on post-employment benet obligations (150) (131) (19) (14.5%)
Other (expense) income (6) 269 (275) n.m.
Income taxes (828) (760) (68) (8.9%)
Net earnings 2,388 2,876 (488) (17.0%)
Net earnings attributable to:
Common shareholders 1,975 2,456 (481) (19.6%)
Preferred shareholders 131 139 (8) (5.8%)
Non-controlling interest 282 281 1 0.4%
Net earnings 2,388 2,876 (488) (17.0%)
Adjusted net earnings attributable to common shareholders
(1)
2,317 2,294 23 1.0%
Net earnings per common share 2.55 3.17 (0.62) (19.6%)
Adjusted EPS
(1)
2.99 2.96 0.03 1.0%
(1) The terms EBITDA, Adjusted net earnings and Adjusted EPS are non-GAAP nancial measures and do not have any standardized meaning under IFRS. Therefore, they are unlikely
to be comparable to similar measures presented by other issuers. See section 10.2, Non-GAAP Financial Measures EBITDA and Adjusted Net Earnings and Adjusted EPS in this
MD&A for more details, including, for Adjusted net earnings and Adjusted EPS, a reconciliation to the most comparable IFRS nancial measures.
n.m.: not meaningful
BCE executed well across the business in 2013, posting revenue
and EBITDA growth of 2.1% and 2.5%, respectively, with a steady
year-over-year EBITDA margin of 39.7% in 2013 compared to 39.5%
in 2012, 1.0% higher Adjusted net earnings, 5.9% growth in free cash
ow and a 16.5% increase in cash ows from operating activities.
This growth reected the acquisition of Astral on July 5, 2013, now
part of Bell Media, and strong wireless EBITDA growth of 10.6%.
Net earnings in 2013 decreased 17.0% compared to 2012 reecting
acquisition costs incurred to purchase Astral and a non-cash
gain recognized in 2012 on the sale of assets by Inukshuk Limited
Partnership (Inukshuk) to its owners.
Our earnings and free cash ow generation supported signicant
capital investment in our broadband wireline and wireless networks
and services, which provides the foundation for sustained nancial
performance going forward and enables the return of value to BCE
shareholders through a higher 2014 dividend.
4
4

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

A
N
A
L
Y
S
I
S
M
D
&
A

4.2 CUSTOMER CONNECTIONS
Operationally, we continued to successfully leverage our advanced
broadband networks and service features to deliver a considerable
number of new postpaid wireless customers, a record number of new
IPTV subscribers and signicantly more Internet customers. At the
end of 2013, BCE (including Bell and Bell Aliant) served a total of:
7,925,032 wireless subscribers, up 1.3% from 2012
2,489,248 TV subscribers, including 657,513 IPTV customers
of which 75,120 were net new IPTV customers, a 7.7% increase
3,136,636 high-speed Internet subscribers, up 3.0%
7,595,569 total NAS lines, a decrease of 6.6%
WIRELESS
+1.3%
7,925,032 SUBSCRIBERS
AT THE END OF 2013
TV
+7.7%
AT THE END OF 2013
INTERNET
+3.0%
AT THE END OF 2013
NAS
-6.6%
AT THE END OF 2013
4.3 OPERATING REVENUES
BCE
REVENUE
(IN $ MILLIONS)

2012 2013
$20,400
$19,978
+2.1%
Bell Wireline 10,097 10,220 (123) (1.2%)
Bell Wireless 5,849 5,586 263 4.7%
Bell Media 2,557 2,183 374 17.1%
Inter-segment eliminations (394) (344) (50) (14.5%)
Bell 18,109 17,645 464 2.6%
Bell Aliant 2,759 2,761 (2) (0.1%)
Total BCE operating revenues 20,400 19,978 422 2.1%
BCE
Total operating revenues for BCE were up 2.1% in 2013, due to
higher revenues at Bell and the acquisition of Astral. Bell Aliant
revenues were essentially unchanged compared to 2012
BELL
Bell operating revenues increased 2.6% in 2013, due to higher
revenue at both Bell Wireless and Bell Media, partly offset by
lower revenues at Bell Wireline
Operating revenues for Bell in 2013 were comprised of service
revenues of $16,512 million, which were 3.1% higher than in 2012,
and product revenues of $1,597 million, which decreased 2.4%
over the previous year
BELL WIRELINE
Revenues decreased 1.2% in 2013, which reected:
Continued decline in legacy voice and data revenues, as well
as upfront promotional discounts on residential service offers
due to higher Fibe TV and Fibe Internet activations compared
to 2012 and aggressive competitive pricing in the market
Higher TV and Internet service revenues, as well as growth
in IP connectivity and business service solutions revenues,
moderated the rate of decline in Bell Wireline revenues in 2013
BELL WIRELESS
Revenue growth of 4.7% was driven by:
A larger postpaid customer base and growth in blended ARPU
attributable to higher access revenues from greater data
usage consistent with an increased smartphone customer mix
Wireless service revenues increased 5.4%, while product
revenues decreased 1.4% compared to 2012
BELL MEDIA
Revenue growth of 17.1% in 2013 reected:
The acquisition of Astral on July 5, 2013
Higher subscriber fee revenues as a result of higher
market-based rates charged to BDUs for certain Bell Media
specialty sports and non-sports services after agreements
were renegotiated
4

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

A
N
A
L
Y
S
I
S
M
D
&
A

Two factors in 2012 that did not recur in 2013: revenues
generated from our broadcast of the London Summer Olympic
Games; and the recognition of revenues from a CRTC decision
in respect of a settlement between Bell Media and certain BDUs
for fees to be paid for specialty TV services
BELL ALIANT
Revenues were virtually unchanged compared to 2012,
decreasing 0.1%, as growth in Internet and TV services were
offset by the continued declines in local and access and long
distance revenues
4.4 OPERATING COSTS
BCE
OPERATING COSTS
(IN $ MILLIONS)
BCE
OPERATING COST PROFILE
(2012 AND 2013)
$12,311
IN 2013
$12,090
IN 2012
48%
15%
37%
Bell Wireline (6,303) (6,300) 3 0.0%
Bell Wireless (3,509) (3,471) 38 1.1%
Bell Media (1,874) (1,622) 252 15.5%
Inter-segment eliminations 394 344 (50) (14.5%)
Bell (11,292) (11,049) 243 2.2%
Bell Aliant (1,487) (1,469) 18 1.2%
Inter-segment eliminations 468 428 (40) (9.3%)
Total BCE operating costs (12,311) (12,090) 221 1.8%
BCE
Total operating costs increased 1.8% in 2013, driven by higher
operating costs at Bell compared to 2012, due mainly to
the acquisition of Astral, and increased operating costs at
Bell Aliant
BELL
Total Bell operating costs increased 2.2% in 2013,
reecting higher operating costs in our Bell Wireless
and Bell Media segments
BELL WIRELINE
Operating costs increased $3 million in 2013, which reected:
Higher customer acquisition and service costs consistent with
increased Fibe TV and Fibe Internet sales and installations
in 2013 compared to last year, increased Bell TV programming
costs, higher costs to deliver and support business services
solutions to our business customers and higher eet costs
A gain from the phase-out of post-employment benets
for certain employees recognized in 2012 that did not recur
this year
Higher post-employment benet plans service cost resulting
from a lower discount rate used in 2013 compared to 2012
to value post- employment benet obligations
Decreased labour costs, reduced print and mail costs resulting
from increased customer use of online bill presentment, lower
advertising costs, as well as cost savings from eld service
productivity improvements, largely offset the year-over-year
increase in Bell Wireline operating costs
BELL WIRELESS
The 1.1% increase in operating costs over the previous year was
driven by:
Higher payments to other carriers due to greater data
roaming volumes, higher customer retention spending, and
higher real estate costs associated with network and retail
store expansion
This was moderated by:
Lower subscriber acquisition costs, reecting fewer gross
activations combined with reduced handset discounts as a
result of higher average smartphone prices on new two-year
rate plans

Cost of revenues
(1)

Labour
(2)

Other
(3)
(1) Cost of revenues includes costs of wireless devices and other equipment sold, network and content costs, and payment to other carriers.
(2) Labour costs include wages, salaries, and related taxes and benets; post-employment benet plans service cost (net of capitalized amounts); and other labour costs, including
contractor and outsourcing costs.
(3) Other operating costs include marketing, advertising and sales commission costs, bad debt expense, taxes other than income taxes, IT costs, professional service fees and rent.
4

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

A
N
A
L
Y
S
I
S
M
D
&
A

Lower wireless content costs, decreased bad debt expense
and lower marketing and advertising costs
BELL MEDIA
Operating costs increased 15.5% in 2013, as a result of:
The acquisition of Astral and higher amortization of the fair
value of certain programming rights in 2013, resulting from
a $22 million net non-cash credit recorded in 2012
TV programming and production costs incurred in 2012 for
our broadcast of the London Summer Olympic Games that
did not recur this year, partly offset the increase in Bell Media
operating costs in 2013
BELL ALIANT
Operating costs increased 1.2% in 2013 due to higher costs
related to growing and supporting customers on Bell Aliants
FibreOP services. This was offset partly by lower general
and administrative expenses driven by procurement savings
and productivity initiatives
4.5 EBITDA
BCE
EBITDA
(IN $ MILLIONS)

2012 2013
$8,089
$7,888
$2,340
$1,272
$3,794
$2,115
$1,292
$561
$683
$3,920

Bell Wireline

Bell Wireless

Bell Media

Bell Aliant
+2.5%
Bell Wireline 3,794 3,920 (126) (3.2%)
Bell Wireless 2,340 2,115 225 10.6%
Bell Media 683 561 122 21.7%
Bell 6,817 6,596 221 3.4%
Bell Aliant 1,272 1,292 (20) (1.5%)
Total BCE EBITDA 8,089 7,888 201 2.5%
BCE
EBITDA increased 2.5% in 2013, corresponding to an EBITDA margin of 39.7% compared to 39.5% in 2012. The year-over-year increase
in EBITDA was due to improved performance at Bell, offset partly by decreased EBITDA at Bell Aliant
BELL
EBITDA
(IN $ MILLIONS)
BELL
EBITDA MARGIN
(IN %)

2012 2013
$6,817
$6,596

2012 2013
37.6% 37.4%
BELL
Bells EBITDA increased 3.4% in 2013, driven by:
Our acquisition of Astral, which contributed to signicantly higher Bell Media EBITDA
Strong Bell Wireless EBITDA growth that was offset partly by lower Bell Wireline EBITDA compared to 2012
Bells consolidated EBITDA margin in 2013 remained relatively stable at 37.6%, compared to 37.4% in 2012, which reected:
The ow-through of higher year-over-year wireless ARPU and disciplined spending on wireless subscriber acquisition
and customer retention
Diminishing wireline voice erosion and stabilizing year-over-year business markets performance
Higher upfront customer acquisition and service support costs from stronger Bell Fibe TV and Fibe Internet subscriber activations
Lower-margin Media revenues from Astral in our operating results beginning in the third quarter of 2013
+3.4%
4

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

A
N
A
L
Y
S
I
S
M
D
&
A

BELL WIRELINE
Bell Wireline EBITDA decline was 3.2% in 2013, due to:
The ongoing loss of high margin voice and data revenues
and the impact of aggressive price competition
Increased subscriber acquisition costs due to higher Fibe TV
and Internet sales and home installations in 2013 compared
to the previous year
The recognition of a $24 million gain in 2012 on the phase-out
of post-employment benets for certain employees. The
discount rate used to value post-employment benet obli-
gations, which was lower at the beginning of 2013, compared
to 2012, also contributed to higher year-over-year operating
costs at Bell Wireline.
BELL WIRELESS
Bell Wireless EBITDA grew 10.6% in 2013, as a result of:
Higher operating revenues, driven by a larger postpaid
customer base and higher ARPU
Well-controlled spending over subscriber acquisition
and customer retention
BELL MEDIA
Bell Media EBITDA growth of 21.7% in 2013 reected:
The incremental nancial contribution from the acquisition
of Astral on July 5, 2013
The ow-through of higher specialty TV rates charged to
other BDUs
Lower operating costs from expenses incurred to broadcast
the London Summer Olympic Games in 2012
BELL ALIANT
Bell Aliants EBITDA declined 1.5% in 2013 as a result of:
Increased operating costs, reecting higher expenses
related to growing its FibreOP services in a highly competitive
market
Higher TV content costs from IPTV customer growth
4.6 SEVERANCE, ACQUISITION AND OTHER COSTS
This category includes various income and expenses that are not related directly to the operating revenues generated during the year.
BCE
SEVERANCE, ACQUISITION
AND OTHER COSTS
(IN $ MILLIONS)
$406
IN 2013
$133
IN 2012
2013
Severance, acquisition and other costs included:
Severance costs related to voluntary and involuntary workforce reduction initiatives
of $116 million
Acquisition costs of $266 million, primarily related to the acquisition of Astral, including
$230 million relating to the CRTC tangible benet obligation that we were ordered to
pay over seven years to benet the Canadian broadcasting system
Other charges of $24 million, which include real estate costs incurred due to the
restructuring of our workforce
2012
Severance, acquisition and other costs included:
Severance costs related to voluntary and involuntary workforce reduction initiatives
of $107 million, including a post-employment benet plan expense of $50 million for
a retirement incentive program
Acquisition costs and other charges of $26 million, including costs related to our acqui-
sition of Astral and real estate costs incurred due to the restructuring of our workforce
4.7 DEPRECIATION AND AMORTIZATION
The amount of our depreciation and amor-
tization in any year is affected by:
How much we invested in new property,
plant and equipment and intangible
assets in previous years
How many assets we retired during
the year
Estimates of the useful lives of assets
BCE
DEPRECIATION
(IN $ MILLIONS)
BCE
AMORTIZATION
(IN $ MILLIONS)

2012 2013
$2,734
$2,678

2012 2013
$646
$714
4

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

A
N
A
L
Y
S
I
S
M
D
&
A

As part of our annual review of the useful lives of property, plant
and equipment and nite-life intangible assets, we changed the
useful lives of bre optic cable (excluding submarine cable) from
20 to 25 years, certain customer premise equipment from 3 and
8 years to 5 years, certain IT and network software from a range
of 3 to 5 years to a range of 3 to 12 years, and certain broadcasting
equipment from 15 to 20 years to better reect their useful lives.
The changes include increases and decreases to useful lives and
have been applied prospectively effective January 1, 2013. On a net
basis, depreciation and amortization expense for these assets
decreased by $139 million as a result of the changes.
Depreciation in 2013 increased $56 million compared to 2012 due
to a higher depreciable asset base as we continued to invest in
our broadband and wireless networks, as well as our IPTV service,
and incremental depreciation due to our acquisition of Astral
on July 5, 2013. This increase was offset partly by a net decrease
in depreciation expense due to changes to the useful lives of certain
assets, as described above.
Amortization in 2013 decreased $68 million compared to 2012
as certain intangible assets became fully amortized, resulting in
a lower asset base in 2013. In addition, amortization decreased
due to an increase in the estimate of useful lives of certain assets,
as described above.
Amortization expense relating to the fair value of certain program-
ming rights, resulting from the allocation of the purchase price for
Bell Media, was $55 million in 2013 compared to $49 million in 2012,
and has been included in operating costs.
4.8 FINANCE COSTS
BCE
INTEREST EXPENSE
(IN $ MILLIONS)
BCE
INTEREST ON
POST-EMPLOYMENT BENEFIT OBLIGATION
(IN $ MILLIONS)

2012 2013
$931
$865

2012 2013
$150
$131
INTEREST EXPENSE
Interest expense in 2013 increased $66 million compared to 2012
as a result of higher average debt levels, primarily related to our
acquisition of Astral, partly offset by lower average interest rates.
INTEREST ON POST-EMPLOYMENT
BENEFIT OBLIGATIONS
Interest on our post-employment benet obligations is based
on market conditions that existed at the beginning of the year.
The impacts of changes in market conditions during the year are
recognized in other comprehensive income (OCI).
In 2013, interest expense increased $19 million compared to last
year due to a larger benet obligation, partly offset by a decrease
in the discount rate used to value our post-employment benet
obligations because of a reduction in market interest rates from
January 1, 2012 to January 1, 2013.
4.9 OTHER (EXPENSE) INCOME
Other (expense) income includes income and expense, such as:
Net mark-to-market gains or losses on economic hedges
Net gains or losses on investments, including gains or losses when we dispose of,
write down or reduce our ownership in investments
Impairment of assets
Losses on disposal and retirement of software, plant and equipment
Interest income on cash and cash equivalents
Equity income (loss)
Premiums on early redemption of debt
BCE
OTHER (EXPENSE) INCOME
(IN $ MILLIONS)
2012 2013
$(6)
$269
4

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

A
N
A
L
Y
S
I
S
M
D
&
A

2013
Other expense includes premiums of $55 million paid on the
early redemption of debt, losses on disposal and retirement of
capital assets of $44 million and an equity loss of $32 million which
includes our $25 million share of a goodwill impairment charge
and a write-down of customer relationship intangibles recognized
by an equity investee. These expenses were offset partly by
net mark-to-market gains of $94 million on derivatives used as
economic hedges of share-based compensation and United States
dollar purchases and a distribution of a $36 million pension surplus.
2012
Other income was due to a non-cash gain of $233 million repre-
senting our interest in a gain realized by Inukshuk on assets sold
to its owners, and a $22 million net mark-to-market gain on
economic hedges. These were offset partly by losses on disposal
and retirement of capital assets of $36 million.
4.10 INCOME TAXES
BCE
INCOME TAXES
(IN $ MILLIONS)
$828
IN 2013
$760
IN 2012
Income taxes in 2013 increased $68 million compared to 2012 due to the higher value of
uncertain tax positions favourably resolved in 2012 compared to 2013, partly offset by
lower taxable income in 2013. As a result, the effective tax rate increased to 25.7% in 2013,
compared to 20.9% in 2012.
4.11 NET EARNINGS AND EPS
BCE
NET EARNINGS
ATTRIBUTABLE
TO COMMON
SHAREHOLDERS
(IN $ MILLIONS)
BCE
EPS
(IN $)
BCE
ADJUSTED
NET EARNINGS
(IN $ MILLIONS)
BCE
ADJUSTED EPS
(IN $)

2012 2013
$1,975
$2,456

2012 2013
$2.55
$3.17
T
2012 2013
$2,317
$2,294

2012 2013
$2.99
$2.96
Net earnings attributable to common shareholders in 2013
decreased $481 million, or $0.62 per common share, compared to
2012. The decrease in 2013 was a result of acquisition costs incurred
to purchase Astral, a non-cash gain recognized in 2012 on the sale
of assets by Inukshuk to its owners, the favourable resolution of
uncertain tax positions in 2012, premiums on early redemption of
debt and higher interest expense, partly offset by higher EBITDA.
Excluding the impact of severance, acquisition and other costs, net
gains (losses) on investments, and premiums on early redemption
of debt, Adjusted net earnings increased $23 million, or $0.03 per
common share, compared to 2012, mainly due to higher EBITDA,
partly offset by the favourable resolution of uncertain tax positions
in 2012 and higher interest expense.
4

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

A
N
A
L
Y
S
I
S
M
D
&
A

4.12 CAPITAL EXPENDITURES
CAPITAL EXPENDITURES
(IN $ MILLIONS)
CAPITAL INTENSITY
(%)
BCE capital expenditures were up $56 million, or 1.6%, in 2013
reecting higher spending at Bell, partly offset by slightly lower
spending at Bell Aliant. As a percentage of revenue, capital
expenditures for BCE were 17.5% compared to 17.6% in 2012. These
investments reect the continued deployment of broadband bre
to homes, neighbourhoods and businesses in Qubec, Ontario and
Atlantic Canada that is fuelling the rapid expansion of Fibe TV, Fibe
Internet, FibreOP Internet and FibreOP TV, the ongoing roll-out of
4G LTE mobile service in markets across Canada, higher spending
on network capacity to support increasing Internet and mobile
data consumption, enhancements to customer service systems,
and the addition of new Bell and The Source stores across Canada.
4.13 CASH FLOWS
In 2013, BCEs cash ows from operating
activities were up $916 million over 2012,
due mainly to lower contributions to
post-employment benet plans attributable
to the $750 million voluntary DB pension
plan contribution made in 2012 at Bell and
$100 million at Bell Aliant. Free cash ow
available to BCEs common shareholders
increased $143 million in 2013, driven mainly
by higher EBITDA, offset partly by higher
capital expenditures, increased interest
payments from a higher average level of
outstanding debt, and higher taxes paid.
BCE
FREE CASH FLOW
(IN $ MILLIONS)
BCE
CASH FLOWS FROM
OPERATING ACTIVITIES
(IN $ MILLIONS)

2012 2013
$2,571
$2,428

2012 2013
$6,476
$5,560

2012 2013
$3,571
17.5%
$3,515
17.6%
$3,001
16.6%
$570
20.7%
$592
21.4%
$2,923
16.6%

Bell

Bell Aliant
5

B
U
S
I
N
E
S
S

S
E
G
M
E
N
T

A
N
A
L
Y
S
I
S

B
E
L
L

W
I
R
E
L
E
S
S
M
D
&
A

5 BUSINESS SEGMENT ANALYSIS 5
5.1 BELL WIRELESS
IN 2013, WE PROFITABLY GREW OUR WIRELESS BUSINESS BY FOCUSING ON POSTPAID
SUBSCRIBER ACQUISITION, INCREASING ARPU BY TARGETING HIGH-VALUE SMARTPHONE
SUBSCRIBERS IN ALL GEOGRAPHIC MARKETS IN WHICH WE OPERATE AND REDUCING
CUSTOMER CHURN.
KEY ELEMENTS OF RELEVANT STRATEGIC IMPERATIVES
ACCELERATE
WIRELESS
2013 PROGRESS
Acquired 35% and 38% of total new postpaid gross and net
activations, respectively, among the three major wireless
carriers, while achieving leading ARPU growth of 2.6% and
EBITDA growth of 10.6%, as well as service margin expansion
of 2.0 percentage points over 2012
Expanded number of smartphone users at the end of 2013 to
73% of our total postpaid subscribers, up from 62% at the end
of 2012
Grew Bell Mobile TV subscribers, which exceeded 1.2 million
at the end of 2013, up 66% over 2012
Expanded our leading smartphone line-up with 26 new devices
adding to our extensive selection of 4G LTE-capable devices
Partnered with RBC to develop a secure mobile payment
solution, RBC Wallet (ofcially launched January 2014)
Reduced the cost of mobile roaming in many countries
Canadians travel to the most
2014 FOCUS
Maintain market share of incumbent wireless postpaid gross
and net activations without sacricing prots / margin
Narrow further our ARPU gap versus incumbent competitors
Continue to reduce customer churn and build incremental
points of distribution across Canada
Continue to offer the latest handsets and devices to enable
customers to benet from ongoing technological improvements
by manufacturers and from faster data speeds that optimize
the use of our services
Drive revenues from commercializing new mobile commerce
and M2M services and applications
INVEST IN BROADBAND
NETWORKS AND SERVICES
2013 PROGRESS
Expanded our next-generation 4G LTE wireless network
to reach 80% of the Canadian population coast-to-coast
2014 FOCUS
Acquire 700 MHz wireless spectrum to extend 4G wireless
LTE network to rural markets
Manage wireless network capacity
ACHIEVE A COMPETITIVE
COST STRUCTURE
2013 PROGRESS
Achieved operating cost savings from call centre efciencies
driven by lower customer call volumes
2014 FOCUS
Execute on cost reductions and labour efciencies to support
maintenance of stable consolidated Bell EBITDA margin
IMPROVE CUSTOMER
SERVICE
2013 PROGRESS
Updated the Mobile Self Serve app to let customers check
wireless handset upgrade eligibility and better manage their
Bell Mobility account. Mobile self-serve usage jumped to
31 million visits in 2013 from 7 million in 2010
2014 FOCUS
Invest in customer service initiatives, including simplifying
complexity for call agents, through streamlined support tools
Reduce further total volume of customer calls to our wireless
services call centres
5

B
U
S
I
N
E
S
S

S
E
G
M
E
N
T

A
N
A
L
Y
S
I
S

B
E
L
L

W
I
R
E
L
E
S
S
M
D
&
A

FINANCIAL PERFORMANCE ANALYSIS
2013 PERFORMANCE HIGHLIGHTS
BELL WIRELESS
REVENUE
(IN $ MILLIONS)
BELL WIRELESS
EBITDA
(% EBITDA SERVICE MARGIN)
(IN $ MILLIONS)

2012 2013
$5,849
$5,586
93%
7%
92%
8%
43.6%
$2,340 IN 2013
41.6%
$2,115 IN 2012
POSTPAID
SUBSCRIBER GROWTH
+3.9%
IN 2013
POSTPAID
NET ACTIVATIONS
378,121
IN 2013
POSTPAID
CHURN IN 2013
1.25%
IMPROVED 0.05 PTS VS. 2012
BLENDED ARPU
PER MONTH
SMARTPHONE PENETRATION
OF POSTPAID SUBSCRIBERS
2013: $57.25
2012: $55.82 +2.6%
2013: 73%
2012: 62% +11 pts
BELL WIRELESS RESULTS
REVENUE
Service 5,362 5,086 276 5.4%
Product 432 438 (6) (1.4%)
Total external revenues 5,794 5,524 270 4.9%
Inter-segment revenues 55 62 (7) (11.3%)
Total revenue 5,849 5,586 263 4.7%
Bell Wireless operating revenues increased 4.7% in 2013 as a result
of higher service revenues, offset by minimally lower product
revenues compared to 2012.
Service revenues were up 5.4% in 2013, driven by postpaid
subscriber growth and higher blended ARPU, reecting
continued strong adoption and usage of smartphones and
data applications and higher roaming revenues. Wireless data
revenues in 2013 were 19.4% higher compared to 2012, while
wireless voice revenues decreased 2.1%
Product revenues decreased 1.4% in 2013, reecting fewer gross
postpaid activations and customer upgrades, year over year,
and waived connection fees as a result of competition
OPERATING COSTS AND EBITDA
Operating costs (3,509) (3,471) 38 1.1%
EBITDA 2,340 2,115 225 10.6%
Total EBITDA margin 40.0% 37.9% 2.1%
Service EBITDA margin 43.6% 41.6% 2.0%

Service

Product
5

B
U
S
I
N
E
S
S

S
E
G
M
E
N
T

A
N
A
L
Y
S
I
S

B
E
L
L

W
I
R
E
L
E
S
S
M
D
&
A

Bell Wireless operating costs increased 1.1% in 2013 due to greater
year-over-year customer retention spending, higher labour and
general and administrative costs to support customer growth and
retail store expansion, higher payments to other carriers due to
greater data roaming volume, as well as higher real estate costs
resulting from retail distribution and network expansion. These
factors were offset partly by lower subscriber acquisition costs
driven by fewer gross activations and reduced handset discounts
as a result of higher average smartphone prices on new two-year
rate plans, lower wireless content costs, reduced customer call
volumes, decreased bad debt expense, as well as lower advertising
and sales-related costs.
Bell Wireless EBITDA increased 10.6% in 2013, driven by higher
operating revenues, as described above, and well-controlled
operating costs. As a result of strong EBITDA growth in 2013, Bell
Wireless EBITDA margin, based on wireless service revenues,
expanded to 43.6% from 41.6% in 2012.
WIRELESS OPERATING METRICS
2013 2012 CHANGE % CHANGE
Blended ARPU ($/month) 57.25 55.82 1.43 2.6%
Gross activations 1,694,055 1,802,837 (108,782) (6.0%)
Postpaid 1,332,423 1,388,187 (55,764) (4.0%)
Prepaid 361,632 414,650 (53,018) (12.8%)
Net activations 217,768 260,650 (42,882) (16.5%)
Postpaid 378,121 456,979 (78,858) (17.3%)
Prepaid (160,353) (196,329) 35,976 18.3%
Blended churn % (average per month) 1.60% 1.72% 0.12%
Postpaid 1.25% 1.30% 0.05%
Prepaid 3.55% 3.62% 0.07%
Subscribers
(1)
7,778,334 7,681,032 97,302 1.3%
Postpaid 6,677,692 6,425,045 252,647 3.9%
Prepaid 1,100,642 1,255,987 (155,345) (12.4%)
Cost of acquisition (COA) ($/subscriber) 421 416 (5) (1.2%)
(1) Following a review of our wireless subscriber metrics, our 2013 postpaid subscriber base was reduced by 99,098 customers to exclude all M2M subscribers. Additionally,
our postpaid subscriber base was reduced by 18,354 subscribers to adjust for customer deactivations and by 8,022 subscribers subsequent to a review of customer accounts.
Our prepaid subscriber base was increased by 5,008 customers subsequent to a review of subscriber metrics.
Blended ARPU increased 2.6% in 2013. The increase can be attributed
to data usage growth driven by a higher proportion of postpaid cus-
tomers using smartphones and increased roaming, the favourable
impact of new two-year rate plan pricing that came into effect at
the beginning of August 2013, and a higher percentage of postpaid
customers in our total subscriber base. This was partly offset by
lower voice ARPU, year over year.
Data ARPU growth of 15.9% in 2013 reects increased use
of e-mail, wireless Internet, text messaging, mobile TV and
streaming video/music services, as well as increased adoption
of data plans driven by higher penetration of smartphones
and other data devices such as tablets. Data ARPU growth is
moderating as competitive pressures are driving richer rate
plans with higher data usage thresholds, more included value-
added services and lower roaming rates, and as customers
off-load data trafc increasingly to Wi-Fi hotspots
Voice ARPU declined 5.1% in 2013, mainly as a result of greater
use of included-minute rate plans for both local and long
distance calling, competitive pricing pressures and lower
overall voice usage as customers increasingly substitute voice
services for data features and services
Total gross wireless activations decreased 6.0% in 2013, due to lower
postpaid and prepaid gross activations.
Postpaid gross activations decreased 4.0% in 2013, reecting
lower handset discounts and increased rate plan pricing on
new two-year contracts introduced following implemen-
tation of the Wireless Code, the launch of fewer new iconic
smartphone models in 2013 and fewer promotional rate plan
offers during the back-to-school period compared to 2012,
as well as a maturing wireless market
Prepaid gross activations decreased 12.8% in 2013. This
was due to our focus on postpaid customer acquisitions,
as well as to competitive acquisition offers targeted at
lower-value customers from both the newer wireless entrants
and incumbent wireless service providers discount brands
that we chose not to match
Smartphone adoption rates represented 74% of total postpaid
gross activations in 2013, compared to 66% in 2012, increasing the
percentage of postpaid subscribers with smartphones to 73% at
December 31, 2013 compared to 62% at the end of 2012.
Blended wireless churn improved 0.12 percentage points in 2013 to
1.6%. Although postpaid and prepaid churn were relatively stable,
year over year, the improvement in our blended churn rate can be
attributed to a greater percentage of postpaid subscribers in our
subscriber base in 2013 compared to the previous year as postpaid
customers typically have a lower churn rate than prepaid customers.
Postpaid churn improved 0.05 percentage points in 2013 to
1.25%, reecting the positive impact of higher year-over-year
retention spending and lower customer deactivation rates on
smartphones compared to other devices
Prepaid churn improved 0.07 percentage points in 2013 to
3.55% as a result of marketing initiatives that resulted in fewer
customer deactivations compared to 2012
5

B
U
S
I
N
E
S
S

S
E
G
M
E
N
T

A
N
A
L
Y
S
I
S

B
E
L
L

W
I
R
E
L
E
S
S
M
D
&
A

Postpaid net activations decreased 17.3% in 2013 as a result of lower
gross activations and a higher number of customer deactivations
reecting the impact of a relatively stable churn rate on a larger
postpaid customer base in 2013 compared to the previous year.
Prepaid net customer losses improved 18.3% in 2013, even with
fewer gross activations compared to 2012, due to fewer customer
deactivations and reduced customer migrations from prepaid
service to postpaid service.
Wireless subscribers at December 31, 2013 totalled 7,778,334,
representing an increase of 1.3% since the end of 2012. The proportion
of Bell Wireless customers subscribing to postpaid service increased
to 86% in 2013 from 84% in 2012.
Wireless COA per gross activation in 2013 increased $5 over 2012
to $421, as a result of higher sales commissions paid as per-unit
handset discounts remained relatively unchanged, year over
year, despite a higher postpaid smartphone mix and aggressive
competitive handset pricing, particularly in the rst half of the year.
Retention costs increased $22 million in 2013 to approximately $554
million, or 10.3% of Bell Wireless service revenues, due to a higher
number of discounted handset customer upgrades compared to 2012.
COMPETITIVE LANDSCAPE AND INDUSTRY TRENDS
COMPETITIVE LANDSCAPE
The wireless market is the largest and fastest growing sector of the
Canadian telecommunications industry, representing 46% of total
revenues and growing at a mid-single digit rate annually.
There are more than 28 million wireless subscribers in Canada. The
three large national incumbents, Bell, TELUS Corporation (TELUS)
and Rogers Communications Inc. (Rogers), account for over 90%
of industry subscribers and revenues. Rogers holds the largest
share by virtue of its legacy Global System for Mobile (GSM)
network. However, Bell has recaptured signicant subscriber market
share, as well as a signicant proportion of industry revenue and
EBITDA growth since 2009, with the launch of our HSPA+ and 4G
LTE networks.
Canadas wireless penetration was approximately 80% at the end
of 2013, compared to over 100% for the United States and up to
177% in Europe. Canadas wireless sector is expected to continue
growing at a healthy pace for the foreseeable future.
COMPETITORS
Large facilities-based national wireless service providers Rogers and TELUS.
Smaller regional facilities-based wireless service providers SaskTel and MTS Mobility.
Newer entrants in their respective service areas:
Vidotron Lte (Vidotron), which provides service in Montral and other
parts of Qubec
WIND Mobile, which provides service in Toronto, Calgary, Vancouver, Edmonton,
Ottawa, as well as in several communities in southwestern Ontario
Mobilicity
(1)
, which provides wireless service in Toronto, Ottawa, Vancouver,
Calgary and Edmonton
EastLink, which launched service in Nova Scotia and Prince Edward Island
in February 2013
Mobile virtual network operators (MVNOs), who resell competitors wireless networks
such as PC Mobile and Primus Telecommunications Canada Inc. (Primus).
(1) Data & Audio Visual Enterprises Wireless Inc. (DAVE), carrying on business under the Mobilicity brand,
applied for and received Companies Creditors Arrangement Act protection in September 2013 and is
currently undergoing a court-sanctioned sale process.
CANADIAN WIRELESS
MARKET SHARE
SUBSCRIBERS
28%
34%
5%
5%
28%

Bell

TELUS

Rogers

Newer entrants

MTS/SaskTel/Bell Aliant
REVENUES
30%
35%
2%
5%
28%

Bell

TELUS

Rogers

Newer entrants

MTS/SaskTel/Bell Aliant
28 MILLION
SUBSCRIBERS
AT DECEMBER 31,
2013
TOTAL
INDUSTRY
REVENUE
OF $20 BILLION
IN 2013
5

B
U
S
I
N
E
S
S

S
E
G
M
E
N
T

A
N
A
L
Y
S
I
S

B
E
L
L

W
I
R
E
L
E
S
S
M
D
&
A

KEY WIRELESS METRICS
SHARE FOR NATIONAL CARRIERS
POSTPAID NET ADDITIONS (%)
50
40
30
20
10
0
2008 2009 2010 2011 2012 2013
Bell 24% 27% 40% 38% 40% 38%
TELUS 36% 30% 34% 38% 36% 38%
Rogers 40% 43% 26% 24% 24% 23%
(1) Percentages may not add to 100 due to rounding.
SERVICE REVENUE GROWTH (%)
100
80
60
40
20
0
2008 2009 2010 2011 2012 2013
Bell 21% 9% 42% 39% 40% 48%
TELUS 27% 5% 25% 51% 45% 47%
Rogers 52% 86% 33% 10% 15% 5%
EBITDA GROWTH (%)
150
100
50
0
-50
-100
-150
2008 2009 2010 2011 2012 2013
Bell 31% 19% (81%) 80% 49% 47%
TELUS 18% (28%) 68% 124% 47% 34%
Rogers 51% 108% 113% (104%) 4% 19%
Source: Company reports
INDUSTRY TRENDS
MIGRATION FROM THREE-YEAR
TO TWO-YEAR CONTRACTS
On June 3, 2013, the CRTC released the Wireless Code, which is a
mandatory code for all providers of retail mobile wireless voice and
data services in Canada. As part of the Wireless Code (which came
into effect December 2, 2013), the CRTC instituted new regulations
that enable any wireless customer to cancel a wireless service
contract after two years, at no cost to the customer. In response to
the Wireless Code, Canadian wireless operators implemented new
two-year pricing plans during the third quarter of 2013. In general,
the new two-year plans offer lower handset discounts and higher
monthly rates, reecting the shorter contract term and increased
value of our plans that include items such as unlimited nationwide
calling and shared data.
GROWING DATA CONSUMPTION
Wireless industry revenue growth continues to be driven by the
increased adoption and usage of data services. In 2013, wireless data
ARPU in Canada represented approximately 44% of industry blended
ARPU, compared to 39% in 2012. Data growth is being driven by the
ongoing adoption of smartphones and tablets, and associated data
plans. The demand for wireless data services is expected to continue
to grow, due to ongoing investment in faster network technologies
such as 4G LTE that provide a richer user experience, the growing
appetite for personal connectivity and social networking, greater
affordability and selection of smartphones and tablets and more
affordable data plans. Greater customer adoption of services,
including mobile TV, mobile commerce, mobile banking, and other
M2M applications in the areas of retail and transportation (con-
nected car, asset tracking, remote monitoring) also should contribute
to growth. In the consumer market, M2M is projected to be a future
growth area for the industry as wireless connectivity on everyday
devices from home automation to cameras becomes ubiquitous.
INCREASING FOCUS ON CUSTOMER RETENTION
Wireless penetration in Canada is expected to continue to grow
from approximately 80% at the end of 2013 to above 100%, which is
consistent with other developed markets such as the United States,
Europe and Japan. As penetration deepens and competition inten-
sies, even greater focus will be required on improving customer
service, enhancing existing service offerings and spending more
to retain existing customers through discounted handset upgrades.
REDUCTION IN ROAMING RATES
Many wireless operators reduced roaming plan pricing and rates in
2013. Given the propensity for Canadians travelling abroad to turn
off roaming functions to avoid expensive data charges, we expect
lower roaming rates to have only a modest impact on industry ARPU
in the short term. However, as subscribers become more comfortable
with new roaming plans and notications, we expect an increase
in data roaming consumption over the long-term.

(1)

5

B
U
S
I
N
E
S
S

S
E
G
M
E
N
T

A
N
A
L
Y
S
I
S

B
E
L
L

W
I
R
E
L
E
S
S
M
D
&
A

BUSINESS OUTLOOK AND ASSUMPTIONS
2014 OUTLOOK
Increased ARPU from greater data usage is expected to be driven by
a higher mix of postpaid smartphone customers, accelerating data
consumption, and higher rate plans for new two-year contracts. This
is expected to be offset partly by declining voice ARPU from data
substitution and pricing. We will seek to achieve our ARPU objectives
through data growth enabled by our HSPA+ and 4G LTE networks,
higher demand for data services and increasing usage of wireless
services such as web browsing, music and video streaming, live TV,
community portals such as Facebook and YouTube, as well as new
services including mobile commerce and other M2M applications. We
intend to introduce these new products and services to the market
in a way that balances innovation with protability.
As a high level of competitive intensity is expected to persist and
as the industry adapts to the changes brought about by the new
Wireless Code, we anticipate pressures on pricing and customer
churn. This highlights the critical importance of developing and com-
mercializing new data services, while continuing to improve cus-
tomer satisfaction and increasing investment in customer retention.
The development of wireless data transmission technologies has
led to the development of more sophisticated wireless devices with
increasingly advanced capabilities. We believe that the introduction
of these new devices will continue to drive growth for data services.
As a result, we aim to introduce additional high-speed enabled data
devices, applications and other services to our wireless customers
in order to deliver increasing value to them. However, the demand
for these relatively more expensive and sophisticated devices, in
addition to ongoing price competition, is expected to exert pressure
on EBITDA. Despite higher expected costs and sustained competitive
intensity in both the consumer and business markets, we expect
to generate higher wireless EBITDA in 2014, reecting the revenue
ow-through of postpaid subscriber growth in 2013 and disciplined
management of subscriber acquisition and retention spending.
ASSUMPTIONS
Higher, but slowing, wireless industry penetration in Canada
Maintaining Bells market share of incumbent wireless postpaid
net activations
Continued adoption of smartphone devices, tablets and data
applications, as well as the introduction of more 4G LTE devices
and new data services
Our ability to monetize increasing data usage and customer
subscription to new data services
Further expansion of our 4G LTE wireless network in rural areas
and in more urban markets across Canada
Ongoing technological improvements by handset manufactur-
ers and from faster data network speeds that allow customers
to optimize the use of our services
No material nancial, operational and competitive conse-
quences of adverse changes in regulations affecting our
wireless business
KEY GROWTH DRIVERS
Increasing Canadian wireless industry penetration
Increasing adoption of smartphones, tablets and other 4G devices which increase mobile data usage
Expansion of LTE in non-urban markets
Customer adoption of new data applications and services such as M-commerce and M-banking
PRINCIPAL BUSINESS RISKS
This section discusses certain principal business risks which specically affect the Bell Wireless segment. For a detailed description of the
principal risks that could have a material adverse effect on our business, refer to section 9, Business Risks.
AGGRESSIVE
COMPETITION
WIRELESS
PENETRATION
NEW WIRELESS CODE
RISK
The intensity of competitive activity
from incumbent wireless operators,
newer wireless entrants and MVNOs
IMPACT
Pressure on our EBITDA, ARPU and
costs of acquisition and retention,
and increased churn, would likely
result if competitors increase
discounts for handsets, reduce
airtime and wireless data prices or
offer other incentives (such as new
data plans or multi-product bundles)
to attract new customers
RISK
Higher wireless penetration
could result in a slowdown
in growth greater than our
current expectations
IMPACT
As penetration of the Canadian
wireless market reaches higher
levels, acquiring new customers
could become more difcult and
will increasingly depend on our
ability to win customers away
from our competitors
As customers choose to bundle
services, our ability to acquire
customers from our competitors
could be adversely affected
RISK
Implementation of the new Wireless
Code could lead to signicant changes
in the dynamics of the consumer
wireless market
IMPACT
Higher industry churn could result
from the replacement of three-year
contracts with two-year contracts
If lower handset discounts, due to
a shorter contract term, cannot be
maintained, this could lead to higher
costs for Bell
5

B
U
S
I
N
E
S
S

S
E
G
M
E
N
T

A
N
A
L
Y
S
I
S

B
E
L
L

W
I
R
E
L
I
N
E
M
D
&
A

5.2 BELL WIRELINE
BELL WIRELINE FINANCIAL PROFILE IMPROVED IN 2013 DRIVEN BY ACCELERATING
FIBE TV AND INTERNET GROWTH AND FEWER NAS LINE LOSSES.
LEVERAGE WIRELINE
MOMENTUM
2013 PROGRESS
Nearly doubled our total number of Fibe TV subscribers
to 479,430
Increased the number of three-product households those that
buy TV, Internet and Home Phone by 18% over 2012, fuelled
by our Fibe TV service, which drove higher pull-through attach
rates for Home Phone and Internet services with 80% of all
Bell Fibe TV customers taking three products
Launched Business Fibe TV and enhanced our Internet product
line-up for small business customers
2014 FOCUS
Expand our total base and market share of TV
and Internet subscribers protably
Continue to reduce total wireline residential net losses
Increase residential household ARPU
Increase our share of wallet of large enterprise customers,
INVEST IN BROADBAND
NETWORKS AND SERVICES
2013 PROGRESS
Extended our Fibe TV service coverage by 1 million homes
to reach more than 4.3 million households across Ontario
and Qubec
Grew our wireline broadband bre footprint to approximately
5.8 million locations passed
Became the rst network operator in Canada to offer 100G
super-core network capability to meet fast-growing demand
for Internet performance and cloud computing applications for
business customers
2014 FOCUS
Extend Bell Fibe TV service coverage to approximately 5 million
households as we grow our FTTN, FTTH and FTTB footprint to
more than 6 million locations passed
COST STRUCTURE
2013 PROGRESS
Maintained a relatively stable Bell Wireline margin compared
to 2012
2014 FOCUS
Execute on cost reductions and labour efciencies to support
maintenance of stable consolidated Bell EBITDA margin
IMPROVE CUSTOMER
SERVICE
2013 PROGRESS
Reduced Fibe TV installation time by 10% in 2013 and 22%
since the beginning of 2012
Reduced Fibe TV provisioning from 5 days in 2012 to
approximately 2 days at the end of 2013
Maintained Same Day Next Day service completion rates for
repairing service issues with Bell Home Phone, TV and Internet
above 91% and arrived on time for customer appointments
more than 98% of the time for installations and repairs
Maintained 92% customer satisfaction with technicians for
installations and repairs
2014 FOCUS
Invest in customer service initiatives, including reducing
complexity for call agents, through streamlined support tools
Reduce further the total volume of customer calls to our
residential services call centres
Improve customer satisfaction scores
Achieve better consistency in customer experience
Improve customer personalization
5

B
U
S
I
N
E
S
S

S
E
G
M
E
N
T

A
N
A
L
Y
S
I
S

B
E
L
L

W
I
R
E
L
I
N
E
M
D
&
A

BELL WIRELINE
REVENUE
(IN $ MILLIONS)
BELL WIRELINE
EBITDA
(% YEAR-OVER-YEAR CHANGE)
(IN $ MILLIONS)

2012 2013
$10,097
$10,220
26%
7%
7%
60%
27%
8%
8%
57%
-3.2%
$3,794 IN 2013
-5.7%
$3,920 IN 2012
TV
+5.7%
SUBSCRIBER GROWTH
2013
TV
122,450
TOTAL NET SUBSCRIBER
ACTIVATIONS
2013
TV
FIBE TV RESIDENTIAL
FOOTPRINT
4.3 million
HOUSEHOLDS
INTERNET
+2.7%
SUBSCRIBER GROWTH
2013
INTERNET
57,722
TOTAL NET SUBSCRIBER
ACTIVATIONS
2013
NAS LINE LOSSES
11.8%
Y/Y IMPROVEMENT IN 2013
BELL WIRELINE RESULTS
REVENUE
Local and access
(1)
2,497 2,688 (191) (7.1%)
Long distance 722 801 (79) (9.9%)
Data
(1)
5,828 5,666 162 2.9%
Equipment and other
(1)
707 750 (43) (5.7%)
Total external revenues 9,754 9,905 (151) (1.5%)
Inter-segment revenues 343 315 28 8.9%
Total revenue 10,097 10,220 (123) (1.2%)
(1) We have reclassied amounts for the prior period to make them consistent with the presentation for the current period.

Local and access

Long distance

Data

Equipment and other
5

B
U
S
I
N
E
S
S

S
E
G
M
E
N
T

A
N
A
L
Y
S
I
S

B
E
L
L

W
I
R
E
L
I
N
E
M
D
&
A

Bell Wireline operating revenues decreased 1.2% in 2013 as a result
of lower local and access, long distance and equipment and other
revenues, partly offset by higher data revenues. This represents
a slower pace of decline compared to a 3.8% decline in 2012,
reecting accelerated Fibe TV and Fibe Internet customer growth,
slowing voice revenue erosion, the subsiding year-over-year
impact of accelerated upfront discounts and credits on residential
bundle offers, price increases across all residential services, and
improved business markets performance as evidenced by higher
IP connectivity revenues and professional services sales growth
compared to 2012.
Local and access revenues declined 7.1% in 2013. The decrease
was due to the ongoing decline in local NAS lines driven by
customer losses in the residential and small and mid-sized
business markets attributable to aggressive competition,
technological substitution to wireless and Internet-based
services, as well as large business customer conversions
to IP-based data services and networks from legacy voice
services. Price matching of competitive residential service
offers and repricing pressures in our business and wholesale
markets also contributed to the year-over-year decrease in
local and access revenues. These factors were offset partly by
increases in monthly local rates implemented during 2013
Long distance revenues decreased 9.9% in 2013, representing
improved performance over the previous years decline of
11.3%. The decrease in 2013 reected fewer minutes of use
by residential and business customers as a result of NAS line
losses, technology substitution to wireless and OTT Internet-
based services, and ongoing rate pressures in our business and
wholesale markets. Residential price increases and increased
year-over-year sales of global long distance minutes moder-
ated the overall rate of long distance revenue erosion in 2013
Data revenues increased 2.9% in 2013, as a result of higher TV
and Internet service revenues driven by stronger Fibe customer
growth and residential price increases for these services,
higher IP connectivity revenues, and increased spending on
professional business services by our large business customers.
These factors were offset partly by a continued decline in
basic legacy data revenue from ongoing business customer
migration to IP-based systems, competitive losses, pricing
pressures in our business and wholesale markets, and lower
data product sales compared to the previous year
Equipment and other revenues decreased 5.7% in 2013, due to
the loss of revenues earned from a subsidiary that provided
electrical and network cabling installation services for business
customers in Ontario that ceased operations at the end of
2012, as well as lower consumer electronics equipment sales
at The Source
Operating costs (6,303) (6,300) 3 0.0%
EBITDA 3,794 3,920 (126) (3.2%)
EBITDA margin 37.6% 38.4% (0.8%)
Bell Wireline operating costs were relatively stable in 2013, increasing
$3 million over 2012. The year-over-year results reect higher
customer acquisition and service costs consistent with increased
Fibe TV and Fibe Internet sales and installations in 2013 compared to
the previous year, increased Bell TV programming costs, higher costs
to support and deliver business services solutions to our business
customers, and higher regulatory-related costs. A $24 million gain
recognized in 2012 from the phase-out of post-employment benets
for certain employees also contributed to the increase in Bell
Wireline operating costs. These wireline cost increases were offset
by decreased labour costs, lower network repairs and maintenance
costs, decreased payments to other carriers, reduced print and
mail costs resulting from increased customer use of online bill
presentment, lower advertising costs, as well as cost savings from
reduced sponsorships and eld service productivity improvements.
Bell Wireline EBITDA was 3.2% lower in 2013 with a corresponding
margin decline to 37.6% from 38.4% in 2012. The year-over-year
decrease in Bell Wireline EBITDA and margin was due to the ongoing
loss of higher-margin legacy voice and data service revenues, as
well as the impact of upfront costs and promotional discounts
resulting from a signicantly higher number of Fibe subscriber
activations in 2013 compared to the previous year. These decreases
were not offset fully by EBITDA growth in TV, residential Internet,
IP broadband connectivity and professional business services.
This result for 2013 represents an improvement over the 5.7% EBITDA
decline reported for Bell Wireline in 2012 as a result of:
Stronger data revenue growth
Slowing voice revenue decline
Disciplined cost management
WIRELINE OPERATING METRICS
LOCAL AND ACCESS
NAS LINES
Residential 2,652,429 2,940,314 (287,885) (9.8%)
Business 2,589,820 2,704,625 (114,805) (4.2%)
Total 5,242,249 5,644,939 (402,690) (7.1%)
NAS NET LOSSES
Residential (287,885) (335,807) 47,922 14.3%
Business (114,805) (120,910) 6,105 5.0%
Total (402,690) (456,717) 54,027 11.8%
5

B
U
S
I
N
E
S
S

S
E
G
M
E
N
T

A
N
A
L
Y
S
I
S

B
E
L
L

W
I
R
E
L
I
N
E
M
D
&
A

NAS net losses improved 11.8%, or by 54,027 lines, in 2013, reecting
both a lower number of residential and business access line losses.
Residential NAS net losses were 14.3%, or 47,922 lines, fewer in
2013, compared to 2012. This result was achieved despite ongoing
aggressive competition from the cable TV operators and steadily
increasing wireless and Internet-based technology substitution for
local services. This resulted from reduced rates of residential NAS
turnover in our Fibe TV service areas compared to our non-Fibe TV
service areas, reecting the operational benet of continued IPTV
footprint expansion in helping to drive NAS customer retention
through greater acquisition of three-product households. Fewer
wholesale customer losses to competitors, year over year, also
contributed to the improvement in residential NAS net losses in 2013.
Business NAS net losses in 2013 improved 5.0%, or by 6,105 lines,
due to fewer customer losses in our wholesale and mass and
mid-sized business markets compared to 2012. This was offset
partly by a greater number of deactivations in our large business
market, resulting mainly from ongoing customer conversion of voice
lines to IP-based services and competitive losses. Additionally, the
relatively low level of new business formation and employment
growth in the economy contributed to continued soft demand for
new access line installations in 2013.
The annualized rate of NAS erosion in our NAS customer base
decreased to 7.1% in 2013 from 7.5% in 2012, as a result of fewer
NAS line losses. At December 31, 2013, we had 5,242,249 NAS lines,
compared to 5,644,939 at the end of 2012.
DATA
High-Speed Internet
High-Speed Internet net activations
(1)
57,722 37,188 20,534 55.2%
High-Speed Internet subscribers
(1)
2,184,543 2,126,821 57,722 2.7%
(1) Following a reconciliation of business Internet customer account records, we increased our 2012 beginning of period Internet subscriber base by 6,678 customers, with related
adjustments to previously reported net activations in 2012 and 2013.
High-Speed Internet subscriber net activations in 2013 increased
55.2%, or 20,534, to 57,722. This represents our highest number of
net activations since 2007. The increase in high-speed Internet
net activations in 2013 was driven by the pull-through of Bell Fibe
TV customer activations even with higher residential customer
churn, particularly outside our IPTV service footprint, attributable
to aggressive service bundle offers from cable competitors.
High-Speed Internet subscribers at December 31, 2013 totalled
2,184,543, up 2.7% from the end of 2012.
TV
Net subscriber activations 122,450 69,445 53,005 76.3%
Fibe TV 231,132 163,127 68,005 41.7%
Total subscribers 2,278,433 2,155,983 122,450 5.7%
Fibe TV 479,430 248,298 231,132 93.1%
Fibe TV net subscriber activations totalled 231,132 in 2013, up 41.7%
from 2012. The year-over-year growth in Fibe TV subscribers was
driven by a broader IPTV service footprint, compared to 2012,
allowing for more effective marketing of our residential service
offers and promotions, satellite TV migrations to Fibe TV, as well as
by the introduction, in May 2013, of wireless receivers.
Satellite TV net customer losses increased 16.0% in 2013 to 108,682,
reecting a higher number of retail customer deactivations
attributable to aggressive customer conversion offers from cable
TV competitors and fewer wholesale net activations due to the
roll-out of IPTV service by other competing service providers in
Western and Atlantic Canada.
Total TV net subscriber activations (Fibe TV and Satellite TV com-
bined) increased 76.3%, or 53,005, to 122,450 as a result of a higher
number of Fibe TV subscriber activations in 2013 compared to 2012.
Fibe TV subscribers at December 31, 2013 totalled 479,430, nearly
double the 248,298 subscribers reported at the end of 2012.
Satellite TV subscribers at December 31, 2013 totalled 1,799,003,
down 5.7% from 1,907,685 subscribers at the end of 2012.
Total TV subscribers (Fibe TV and Satellite TV combined) at
December 31, 2013 equalled 2,278,433, representing a 5.7% increase
since the end of 2012.
5

B
U
S
I
N
E
S
S

S
E
G
M
E
N
T

A
N
A
L
Y
S
I
S

B
E
L
L

W
I
R
E
L
I
N
E
M
D
&
A

The wireline telecommunications market, in aggregate, has
experienced at to relatively modest revenue growth and at to
declining EBITDA in recent years, as legacy voice service revenues
continue to decline, due to technological substitution to wireless
and OTT services in residential and small business markets, as well
as to ongoing conversion to IP-based data services and networks
by large business customers. Aggressive competition from cable
companies also continues to erode traditional telephone providers
market share of residential local telephony. In 2013, Canadas four
largest cable companies had nearly 4.3 million local residential
telephony subscribers, representing a 41% market share, up two
percentage points from 2012.
Competition comes from substitution of wireless services, including
our own Bell Mobility and Virgin Mobile offerings, for residential
local and long distance services. Approximately 21% of households
in Ontario and Qubec are estimated to be wireless-only.
In 2013, cable companies continued to increase the speeds of their
Internet offerings, while promoting aggressive customer acquisition
offers. At the end of the year, the four largest cable companies
had 5.9 million Internet subscribers, representing 56% of the total
Internet market, while incumbent local exchange carriers (ILECs)
held the remaining 44% or 4.7 million subscribers.
ILECs offering IPTV service grew their subscriber base by 37%
in 2013 to reach nearly 1.6 million customers, primarily driven by
strong subscriber acquisition at Bell and TELUS. This growth came
at the expense of Canadas four largest cable companies, who saw
their TV market share in 2013 decline 3 percentage points to 61%.
COMPETITORS
Cable TV providers offering cable TV, Internet and cable telephony services, including:
Rogers in Ontario
Vidotron in Qubec
Cogeco Cable Inc. (a subsidiary of Cogeco Inc.) (Cogeco) in Ontario and Qubec
Shaw Communications Inc. (Shaw) in British Columbia, Alberta, Saskatchewan,
Manitoba and Ontario
Shaw Direct, providing DTH satellite TV service nationwide
EastLink in every province, except Saskatchewan where it does not provide
cable TV and Internet service
ILEC carriers TELUS and MTS provide local, long distance and IPTV services in various
regions, as well as wholesale products and services across Canada.
Various others (such as Vonage Canada (a division of Vonage Holdings Corp.) (Vonage)
and Primus) that offer resale or VoIP-based local, long distance and Internet services.
OTT voice and video services such as Skype, Netix and iTunes.
Digital media streaming devices such as Apple TV and Roku.
Business voice and data services:
Other Canadian ILECs and cable TV operators
Substitution to wireless services, including those offered by Bell
ICT solutions:
Systems integrators such as CGI Group Inc., EDS division of HP Enterprise
Services and IBM
Outsourcers and professional service rms
Wholesale competitors include cable operators, domestic CLECs, U.S. or other
international carriers for certain services, and electrical utility-based
telecommunications providers.
CANADIAN MARKET SHARE
RESIDENTIAL TELEPHONY
59%
41%
INTERNET
44%
56%
TV
25%
61%
14%

ILECs

Cable
11 MILLION
TOTAL
SUBSCRIBERS

ILECs

Cable
11 MILLION
TOTAL
SUBSCRIBERS

IPTV

DTH Satellite

Cable
12 MILLION
TOTAL
SUBSCRIBERS
5

B
U
S
I
N
E
S
S

S
E
G
M
E
N
T

A
N
A
L
Y
S
I
S

B
E
L
L

W
I
R
E
L
I
N
E
M
D
&
A

INDUSTRY TRENDS
INVESTMENT
IN BROADBAND
FIBRE DEPLOYMENT
In recent years, ILECs have
made substantial investments
in deploying FTTN and FTTH
within their territories. These
investments have enabled the
delivery of IPTV service in order
to better compete with cable TV
offerings in urban areas. IPTV
is considered a superior video
product to traditional cable
TV given innovative features
such as a next-generation
user interface, Whole Home
PVRs and wireless receivers.
FTTN enables speeds of up to
25 Mbps, which can be doubled
to 50 Mbps with pair bonding,
while FTTH delivers broadband
speeds of up to 175 Mbps, higher
than any other technology.
WIRELESS SUBSTITUTION
Wireless substitution has
become the most signi-
cant driver of residential NAS
losses and voice revenue
declines for telecommunica-
tion companies. Wireless-only
households were estimated
to represent approximately
21% of households in Canada
at the end of 2013, compared
to approximately 40% in the
United States. Wireless substi-
tution has been increasing at
a faster rate in the U.S. than in
Canada, due to structural dif-
ferences as well as economic
disparities. To mitigate the
impact of wireless substitution,
wireline service providers have
been packaging voice servi-
ces with Internet and TV and
offering discounted triple-play
bundles. Wireless substitution is
expected to continue to stead-
ily increase in 2014.
TV EVERYWHERE
The growing popularity of
watching TV anywhere is
expected to continue as cus-
tomers adopt services that
enable them to view content
on multiple screens, including
computers, smartphones and
tablets, as well as on their TVs.
OTT content providers are com-
peting for share of viewership.
To date, these OTT services
have largely complemented
existing TV services. However,
to mitigate the threat of video
substitution, TV and Internet
service providers (ISPs) have
begun to create and launch TV
Everywhere solutions that pro-
vide authentication features
controlling and limiting access
to specic content subscribed
to at the users residence. The
launch and development of
these solutions is still in the
early stages and subject to
ongoing discussions between
content providers and broad-
cast distributors.
BUSINESS CUSTOMER
ADOPTION OF
IP-BASED SERVICES
The convergence of IT and tele-
communications, facilitated by
the ubiquity of IP, continues
to shape competitive invest-
ments for business customers.
Telecommunications companies
are providing professional and
managed services, as well as
other IT services and support,
while IT service providers are
bundling network connectivity
with their software as service
offerings. In addition, manufac-
turers continue to bring all-IP
and converged (IP plus legacy)
equipment to market, enabling
ongoing migration to IP-based
solutions. The development of
IP-based platforms, which pro-
vide combined IP voice, data
and video solutions, creates
potential cost efciencies
that compensate, in part, for
reduced margins resulting from
the continuing shift from legacy
to IP-based services. The evolu-
tion of IT has created signicant
opportunities for Bell Business
Markets, such as cloud servi-
ces and data hosting, that can
have greater business impact
than traditional telecommuni-
cations services.
2014 OUTLOOK
TV and Internet customer expansion, higher penetration of three-
product households and gradually improving business markets
performance, consistent with stronger economic growth and
employment rates, is expected to drive improved year-over-year
wireline revenue results in 2014.
We also expect Bell Wirelines EBITDA trajectory to improve in
2014, driven by the increasing scale of Fibe TV, fewer residential
net subscriber losses as our IPTV footprint further expands to
cover approximately 5 million households, the positive impact of
product enhancements and ow-through of residential service
price increases, as well as further cost savings. These operating
cost savings are expected to offset costs related to growth in Fibe
TV subscriber activations, ongoing erosion of high-margin wireline
voice revenues and any revenue shortfalls in our Business Markets
unit, supporting our objective of maintaining Bells consolidated
EBITDA margin relatively stable.
Targeted retention and service bundle offers, customer winbacks
and better service execution are expected to contribute to an
improvement in residential NAS line losses year over year.
Increased TV subscriber acquisition is expected through higher
projected customer adoption of Fibe TV as we further extend our
IPTV broadband bre footprint in areas of Ontario and Qubec.
We also intend to seek greater penetration within the MDU market
and capitalize on our extensive retail distribution network, which
includes The Source, and to leverage our market leadership position
in high-denition (HD) programming to drive incremental subscriber
growth and higher revenue per customer.
5

B
U
S
I
N
E
S
S

S
E
G
M
E
N
T

A
N
A
L
Y
S
I
S

B
E
L
L

W
I
R
E
L
I
N
E
M
D
&
A

Internet subscriber acquisition is expected to improve in 2014
through increased bre coverage and speeds as we leverage
the speed and reliability of our broadband Internet network to
drive greater Fibe TV expansion and Internet attach rates. This is
expected to have an associated positive impact on ARPU growth
and customer churn.
We also aim to continue investing signicantly in broadband
infrastructure and bre expansion and upgrades to support our
Fibe TV and residential Internet services, as well as new business
solutions in key portfolios such as Internet and private networks,
data centre and cloud services, unied communications and security
services. We intend to pursue pricing methods that allow us to cover
the capital costs of upgrading the network, providing new services
and expanding capacity to meet growing data consumption.
ASSUMPTIONS
Increasing wireless and Internet-based technological
substitution
Aggressive residential service bundle offers from cable TV
competitors in our local wireline areas
Stabilizing residential NAS line erosion rate as we leverage
our broadband investment in Fibe TV to drive three-product
household penetration, increase our MDU market share, and
generate higher pull-through attach rates for our residential
Internet and Home Phone services
Higher revenue per household and ow-through of price
increases across residential products from increasing
penetration of three-product households
Faster pace of employment growth and stronger economic
outlook compared to 2013
Continued business customer migration to IP-based systems
Ongoing competitive reprice pressures in our business and
wholesale markets
Ability to realize cost savings from management workforce
attrition and retirements, call centre efciencies, eld service
productivity improvements, reduction in supplier contract rates,
lower print and mail costs, content cost management and
reducing trafc that is not on our own network
Growing consumption of OTT TV services and streaming
video, projected growth in TV Everywhere as well as the
proliferation of devices, such as tablets, that consume vast
quantities of bandwidth, will require considerable ongoing
capital investment
KEY GROWTH DRIVERS
Increasing Fibe TV penetration of IPTV households reached
Higher market share of industry TV and Internet subscribers
Greater penetration of three-product households
Faster pace of economic expansion and employment growth
driving increased business customer spending, new business
formation and higher demand for connectivity and other
ICT services
Expansion of our customer relationships to drive higher
revenue per customer
Ongoing service innovation and product value enhancements
Improved customer retention
This section discusses certain principal business risks which specically affect the Bell Wireline segment. For a detailed description of the
AGGRESSIVE
COMPETITION
PRODUCT SUBSTITUTION
DRIVING NAS EROSION
TV SUBSCRIBERS
PENETRATION
RISK
The intensity of competitive
activity from incumbent
operators, cable companies
and non-traditional players
IMPACT
Aggressive offers could lead
to higher churn, and increased
retention expenses and use
of promotional competitive
offers to keep customers,
all of which would put pressure
on Bell Wirelines EBITDA
RISK
Increasing wireless and Internet-
based technological substitution
IMPACT
Technological substitution could
accelerate year-over-year
residential NAS line losses
Integration of long distance serv-
ices into base wireless plans may
accelerate wireless substitution
RISK
Traditional TV viewing model (subscrip-
tion for bundled programs) challenged
by increasing number of viewing
options available in the market
IMPACT
Declining TV subscribers and penetra-
tion as a result of BDUs offerings and
increasing number of OTT providers
BDUs may offer smaller and/or less
expensive packaging options to
attract subscribers
Proliferation of IP-based products,
including OTT content offerings, may
accelerate disconnecting of TV services
or reduction of TV spending
5

B
U
S
I
N
E
S
S

S
E
G
M
E
N
T

A
N
A
L
Y
S
I
S

B
E
L
L

M
E
D
I
A
M
D
&
A

5.3 BELL MEDIA
BELL MEDIA MADE A SIGNIFICANT CONTRIBUTION IN 2013 TO CONSOLIDATED
REVENUES, EBITDA AND CASH FLOW GROWTH, SUPPORTED BY OUR ACQUISITION OF
ASTRAL. ASTRAL ENHANCES BELLS GROWTH MIX PROFILE, WHILE STRENGTHENING OUR
COMPETITIVE POSITION IN ENGLISH AND FRENCH MEDIA MARKETS ACROSS CANADA.
EXPAND MEDIA
LEADERSHIP
2013 PROGRESS
Completed the acquisition of Astral on July 5, 2013, which
enhances Bell Medias competitive position, especially in
the Qubec marketplace
Achieved the highest TV ratings in all seasons for CTV, Bell
Medias conventional TV property, which was the most-
watched Canadian TV network for the 12th year in a row,
with a majority of the Top 20 programs nationally in all key
demographics
Broadcasted 6 of the top 10 new shows for the rst 12 weeks
of the 2013 Fall season
Launched the CTV GO app, enabling customers to access more
than 3,000 hours of programming from CTV and CTV Two on
their smartphones, tablets and computers at no additional
charge. We also launched TMN GO, the rst ever Canadian
TV Everywhere product from a broadcaster to offer premium,
on-demand programming, as well as Bravo GO
Created and produced new Canadian shows, including
The Amazing Race Canada
Concluded agreements for long-term sports broadcasting
rights, including with two Canadian NHL teams (Montral
Canadiens and Ottawa Senators), NFL, CFL, and Vancouver
Whitecaps FC
2014 FOCUS
Maintain strong audience levels and ratings across all TV
and radio properties
Reinforce industry leadership in conventional TV, pay TV,
sports media and radio
Develop in-house production and content creation for
distribution and utilization across all platforms and screens
Expand live and on-demand content through TV Everywhere
services
Grow French media properties
Leverage cross-platform sales and sponsorship
COST STRUCTURE
2013 PROGRESS
Achieved operating cost savings from tightly managed labour,
general and administrative, and marketing and sales expenses
(excluding Astral)
2014 FOCUS
Realize fully the cost synergies from the integration of Astral
5

B
U
S
I
N
E
S
S

S
E
G
M
E
N
T

A
N
A
L
Y
S
I
S

B
E
L
L

M
E
D
I
A
M
D
&
A

BELL MEDIA REVENUE
(IN $ MILLIONS)
+17.1%
BELL MEDIA EBITDA
(IN $ MILLIONS)
+21.7%
CTV IS THE MOST-WATCHED
CANADIAN TV NETWORK
12 of top
20 programs
NATIONALLY AMONG ALL VIEWERS
2012/13 BROADCAST YEAR

2012 2013
$2,557
$2,183

2012 2013
$683
$561
BELL MEDIA
2013 REVENUE MIX
(PRODUCT)
BELL MEDIA
2013 REVENUE MIX
(LINE OF BUSINESS)
67%
29%
4%
86%
12%
2%
BELL MEDIA RESULTS
REVENUE
Total external revenues 2,342 2,022 320 15.8%
Total revenue 2,557 2,183 374 17.1%
Bell Media revenues increased 17.1% in 2013, due primarily to the
acquisition of Astral, which contributed signicantly to overall
advertising and subscriber fee revenues in the second half of
the year. This was partly offset by revenues generated from Bell
Medias broadcast of the London Summer Olympic Games in 2012
that did not recur in 2013.
Advertising revenues in 2013, excluding Astral and the favourable
impact of the Olympics in 2012, modestly decreased year over year:
Relatively stable conventional TV revenues year over year,
even as advertising demand for the conventional TV industry
as a whole continued to be adversely affected by declining
audience levels
Higher viewership levels for non-sports specialty TV,
driven by increases at Comedy and Bravo
Sports specialty TV advertising revenues increased modestly,
year over year, supported by greater viewer interest in the
NHL and other sports content broadcast by TSN and RDS
Radio advertising sales declined due to increased competition
in many key markets, reduced advertising spending across cer-
tain industry sectors, and the impact of radio asset divestitures
in Toronto, Calgary and Winnipeg mandated by the CRTC
Subscriber fee revenues in 2013, excluding Astral, increased com-
pared to 2012, due to the favourable impact of rate increases
charged to BDUs through renegotiated agreements for certain
non-Astral Bell Media specialty TV services and higher revenues
from new mobile content deals.

Advertising

Subscriber

Other

TV

Radio

Out-of-Home
5

B
U
S
I
N
E
S
S

S
E
G
M
E
N
T

A
N
A
L
Y
S
I
S

B
E
L
L

M
E
D
I
A
M
D
&
A

Operating costs (1,874) (1,622) 252 15.5%
EBITDA 683 561 122 21.7%
EBITDA margin 26.7% 25.7% 1.0%
Bell Media operating costs increased 15.5%, or $252 million, in 2013, mainly as a result of the acquisition of Astral and higher amortization
of the fair value of certain programming rights in 2013, resulting from a $22 million net non-cash reduction recorded in 2012. Higher TV
programming costs, and the return of pre season and regular season hockey to the TSN and RDS programming schedules following the
NHL lockout in 2012, also contributed to higher Media operating costs in 2013. TV programming and production costs incurred in 2012 for
our broadcast of the London 2012 Olympic Games partly mitigated the year-over-year increase in Bell Media operating costs in 2013.
Bell Media EBITDA increased 21.7% in 2013, due to higher year-over-year operating revenues as described above, partly offset by higher
operating costs and the acquisition of Astral.
BELL MEDIA OPERATING METRICS
CTV ended the 2012/13 broadcast year with more
top 10, top 20 and top 30 shows than any other Canadian
conventional TV network, according to BBM Canada data,
making it the most-watched Canadian TV network for
the 12th year in a row
CTV consistently reported the strongest ratings in all seasons
in 2013, holding a majority of the top 20 programs nationally
among all viewers
In the key primetime hours, CTVs average audience was
56% higher than its closest conventional TV competitor
in the 2012/2013 broadcast year
Bell Medias specialty TV properties, led by TSN, RDS, Comedy,
E!, MTV and Discovery, reached 85% of all English specialty
and pay TV viewers in the average week during 2013
Bell Media ranked third behind Google (which includes YouTube)
and Facebook for video views, third in time spent viewing
video, and eighth in unique visitors among all online properties
in Canada, ahead of any Canadian-owned competitor
The Canadian media industry is highly competitive, with competitors
having signicant scale and nancial resources. In recent years,
there has been increased consolidation of traditional media assets
across the Canadian media landscape. The majority of players have
become more vertically integrated to better enable the acquisition
and monetization of premium content.
Bell Media competes in the TV, radio and OOH advertising markets:
TV: The TV market has become increasingly fragmented and
this trend is expected to continue as new services and techno-
logies increase the diversity of information and entertainment
outlets available to consumers
Radio: Competition within the radio broadcasting industry
occurs primarily in discrete local market areas among
individual stations
OOH: The Canadian OOH advertising industry is fragmented,
consisting of a few large companies, as well as numerous
smaller and local companies operating in a few local markets
Consumers have also been shifting their media consumption towards
digital media, mobile device usage and on-demand content. This
has caused new business models to emerge and advertisers to shift
portions of their spending to digital platforms.
5

B
U
S
I
N
E
S
S

S
E
G
M
E
N
T

A
N
A
L
Y
S
I
S

B
E
L
L

M
E
D
I
A
M
D
&
A

COMPETITORS
TV
Conventional Canadian TV stations (local and distant signals)
and specialty and pay channels, such as those owned by Shaw, Corus,
Rogers, TVA Group Inc., Canadian Broadcasting Corporation (CBC)/
Socit Radio-Canada (SRC) and Remstar Corp (V)
U.S. conventional TV stations and specialty channels
OTT providers such as Netix and Apple
Radio
Large radio operators, such as Rogers, Corus, Cogeco and Newcap that
also own and operate radio station clusters in various local markets
Radio stations in specic local markets
Satellite radio provider SiriusXM
Newer technologies such as online music information services, music
downloading, portable devices that store and play digital music and online
music streaming services
Other media such as newspapers, magazines, TV, outdoor advertising
and the Internet
OOH Advertising
Large outdoor advertisers, such as Pattison and CBS Television Network (CBS)
Numerous smaller and local companies operating a limited number of display
faces in a few local markets
Other media such as TV, radio, print media and the Internet
CANADIAN MARKET SHARE
TV VIEWERSHIP
(1)
ENGLISH LANGUAGE TV
29%
12%
13%
11%
20%
7%
8%
TV VIEWERSHIP
(1)
FRENCH LANGUAGE TV
35%
19%
20%
8%
9%
9%
RADIO
(1)
BROADCASTER HOURS TUNED
38%
16%
15%
19%
12%
INDUSTRY TRENDS
RAPID CHANGES IN CONNECTIVITY
AND CONSUMER BEHAVIOUR
Technology used in the media industry continues to evolve rapidly,
which has led to alternative methods for the distribution, storage
and consumption of content. These technological developments
have driven and reinforced changes in consumer behaviour as
consumers seek more control over when, where and how they
consume content. For example, consumer electronics innovations
have enabled consumers to view Internet-delivered content on
TVs, computers, tablets, smartphones and other mobile electronic
devices. The number of Canadian users that are connected to
the Internet through their TVs is growing as connection becomes
easier and more affordable. These changes in technology and
consumer behaviour have resulted in a number of challenges for
content aggregators and distributors. For example, technological
developments may disrupt traditional distribution platforms by
enabling content owners to provide content directly to distributors
and consumers, thus bypassing traditional content aggregators
such as Bell Media and distributors such as Bell TV.

Bell Media

Shaw

Corus

Rogers

CBC

US

All Other

TVA Group Inc.

Bell Media

SRC

V (Remstar)

Corus

Other

Bell Media

Rogers

Corus

Cogeco

Newcap
(1) Broadcast year-end at August 31, 2013.
5

B
U
S
I
N
E
S
S

S
E
G
M
E
N
T

A
N
A
L
Y
S
I
S

B
E
L
L

M
E
D
I
A
M
D
&
A

GROWTH OF ONLINE ALTERNATIVES TO TRADITIONAL TV
Consumers now have improved access to online entertainment and
information alternatives that did not exist a few years ago. While
linear TV was the only way to access consumer prime time program-
ming in the past, many people today watch TV in non-traditional
ways for at least a portion of their viewing. In particular, todays
viewers are consuming more content online, watching less scheduled
programming live, time-shifting original broadcasts through
PVRs, viewing more TV on mobile devices, and catching up on
past programming on demand. In addition, many consumers are
spending considerable time with online alternatives to traditional
TV. This is evident in the growing popularity of OTT video services
like Netix. To date, these OTT services have largely complemented
existing TV services. Media companies are evolving their content
and launching their own solutions to better compete with these
non-traditional offerings through services such as Bell Medias new
service TV Everywhere. Changing content consumption patterns and
growth of alternative providers could exert downward pressure on
rates and advertising revenues for traditional media broadcasters
and distributors such as Bell Media. However, live sports and special
events should continue to draw audiences and advertisers, which is
expected to result in pricing pressure on future broadcasting rights
on all platforms, including digital, for such programming.
2014 OUTLOOK
Bell Media revenue, EBITDA and cash ow are projected to increase
in 2014. The inclusion of a full year of operating results from Astral,
combined with the realization of operational and cost synergies
associated with that acquisition, is expected to contribute signi-
cantly to this year-over-year growth. We will continue to carefully
manage costs by leveraging assets, achieving productivity gains
and pursuing operational efciencies across all of our properties.
The anticipated increase in overall revenues and EBITDA will also
be tempered by retroactive rate increases recognized in 2013,
consisting of specialty TV rate increases and retransmission
royalties. We also plan to continue to invest in premium content
for all four screens.
Advertising markets are expected to remain relatively stable
throughout 2014; however, we expect softness in the rst quarter
as advertising demand shifts to the main broadcaster of the Sochi
2014 Olympic Games. Growth in subscriber revenue is expected
to be generated from the ow-through of 2013 rate increases for
certain specialty TV services.
In conventional TV, we intend to leverage the strength of our market
position to continue offering advertisers, both nationally and locally,
premium opportunities to reach their target audiences. Success in
this area requires that we focus on a number of factors, including:
Successfully acquiring high-rated programming and
differentiated content
Building and maintaining strategic supply arrangements
for content on four screens
Producing and commissioning high quality Canadian content,
including market-leading news, enhancements through
investments in HD broadcasting and improvements to our
news programming
In sports specialty TV, we will aim to continue delivering premium
content and exceptional viewing experiences to our viewers.
Investment in the integration of our digital platforms will be
an integral part of our strategy to further engage viewers. We
anticipate costs to secure content will increase as we face greater
competition from both new and established entrants and as
market rates for live sports content generally increase. While we
were unsuccessful in our bid to extend our NHL Hockey national
broadcasting rights, which expire at the end of the 2013/2014 NHL
season, we have secured key hockey and other sports content
that is important to Canadians. We intend to continue creating
innovative high-quality productions in the areas of sports news
and editorial coverage.
In non-sports specialty TV, audiences and advertising revenues
are expected to be driven by investment in quality programming
and production, as well as ongoing development of key brand
partnership initiatives on our existing services. We also intend to
strengthen our pay TV offerings.
Our English-language specialty services will attempt to
capitalize on Space, Bravo and Discoverys leading position
in the market, and we will focus on rebuilding audiences
and revitalizing the brands and content of our TV services
that appeal to younger viewers
In our French-language specialty services, we will leverage our
newly-launched Canal D Investigation channel that features
reality documentaries and crime dramas.
In radio, we will seek to grow our TSN Sports radio brand further
through our partnerships with several NHL franchises, including the
Toronto Maple Leafs, the Montral Canadiens, the Ottawa Senators,
and the Winnipeg Jets. We will also pursue the expansion of our
TSN footprint in other markets. Additionally, in conjunction with
local TV assets, we will pursue opportunities that can leverage
our promotional capabilities, provide an expanded platform for
content sharing, and offer synergistic colocation opportunities
where practical.
In our OOH operations, we plan to leverage the strength of our
products to provide advertisers premium opportunities in Toronto,
Vancouver and Montral. We will also continue to seek new
opportunities in digital markets.
ASSUMPTIONS
Relatively stable advertising market
Escalating costs to secure TV programming and sports content
Ability to successfully acquire highly rated programming
and differentiated content
Market rates for specialty content generally increasing
Building and maintaining strategic supply arrangements
for content on all four screens
Full realization of cost synergies from the integration
of Astral into Bell Media
No material nancial, operational and competitive
consequences of adverse changes in media regulation
5

B
U
S
I
N
E
S
S

S
E
G
M
E
N
T

A
N
A
L
Y
S
I
S

B
E
L
L

M
E
D
I
A
M
D
&
A

KEY GROWTH DRIVERS
Stronger economic growth that drives increased advertiser
demand and spending, particularly in the key automotive,
entertainment equipment, telecommunications and consumer
goods sectors
Higher audience levels from strong ratings maintained
across all TV and radio properties, as well as from securing
multi-platform rights
Investing in the best content, including more
in-house productions
Completion of Astral integration to fully realize synergies
This section discusses certain principal business risks which specically affect the Bell Media segment. For a detailed description of the
AGGRESSIVE
COMPETITION
ADVERTISING
REVENUE UNCERTAINTY
RISING
CONTENT COSTS
RISK
activity from traditional TV
services, as well as from new
technologies and alternative
distribution platforms such as
OTT content offerings, video on
demand, personal video platforms
and video services over mobile
devices and the Internet
IMPACT
The level of competitive activity
could have an adverse impact on
the level of audience acceptance
for Bell Medias TV services
Our inability to acquire popular
programming content could
adversely affect Bell Medias
viewership and subscription levels
and, consequently, advertising and
subscription revenues
RISK
Advertising is heavily dependent
on economic conditions
and viewership
IMPACT
Economic uncertainty reduces
advertisers spending
Increased fragmentation of
the advertising market given
the increasing adoption of new
technologies and alternative
distribution platforms increases
Bell Medias risk of losing
advertising revenue
RISK
Ability to secure key content to drive
revenues and subscriber growth
going forward
IMPACT
Rising programming costs could require
us to incur unplanned expenses and put
negative pressure on EBITDA
5

B
U
S
I
N
E
S
S

S
E
G
M
E
N
T

A
N
A
L
Y
S
I
S

B
E
L
L

A
L
I
A
N
T
M
D
&
A

5.4 BELL ALIANT
BELL ALIANT IS INVESTING IN THE BEST BROADBAND FIBRE TECHNOLOGY AVAILABLE
TO OFFER THE MOST VALUE TO TV AND INTERNET CUSTOMERS, TO HELP OFFSET
THE EFFECTS OF CONTINUED DECLINES IN THE TRADITIONAL VOICE BUSINESS
AND INTENSIFIED COMPETITION.
KEY ELEMENTS OF BELL ALIANTS STRATEGIC IMPERATIVES
Bell Aliants vision is to be the leading communications provider in the markets it serves by pursuing its ve key strategic imperatives.
Bell Aliant believes these strategies will continue to support its nancial performance as it manages the critical balance between improving
services, offering enhanced solutions to its customers and increasing productivity and protability.
GROW BROADBAND
2013 PROGRESS
Expanded FTTH network footprint to an additional
150,000 homes and businesses, bringing total coverage
to 806,000 customer premises
Completed a three-year program to build a 2,040 kilometre
bre network that will service more than 20 First Nations
communities in the remote regions of northwestern Ontario
2014 FOCUS
Continue to expand FTTH network to pass more than 1 million
homes and businesses
IMPROVE THE CUSTOMER EXPERIENCE
2013 PROGRESS
Improved online self-serve capabilities
Enhanced the FibreOP TV experience with the launch of
wireless receivers, allowing customers to move their TV
and set-top box throughout the home
2014 FOCUS
Improve further processes, tools and training to enhance
overall service to make every customer interaction consistent
and exceptional
RETAIN CUSTOMERS
2013 PROGRESS
Launched Bell Aliant UC, a unied communications solution
that enables customers to seamlessly connect their desktop
and mobile devices
Launched a new home security and monitoring service,
Bell Aliant NextGen Home Security, providing remote manage-
ment via web portal and mobile devices, appliance controls and
secure video monitoring
Enhanced TV offerings by adding 40 new HD channels,
bringing total number of HD channels to 137
Achieved highest level of high-speed Internet customer net
activations since 2010 and highest IPTV customer net additions
to date
2014 FOCUS
Increase penetration of FibreOP services, provide competitive
bundle offers, and provide new and enhanced products and
services
RESET THE COST STRUCTURE
2013 PROGRESS
Introduced a voluntary retirement offer for eligible employees
Achieved procurement savings and productivity initiatives
that mitigated additional costs associated with growing
and supporting the FibreOP customer base
2014 FOCUS
Continue to pursue cost reductions through productivity
initiatives, procurement improvements and cost controls
to meet nancial targets
ENGAGE EMPLOYEES
2013 PROGRESS
Received three employer awards in 2013: Bell Aliant
was named as one of Atlantic Canadas Top Employers,
one of Canadas Top Employers for Young People, and one
of the Best Employers for New Canadians
2014 FOCUS
Continue to promote a high performance culture by
recognizing top talent and further developing leadership
skills at all levels, while ensuring succession plans are in place
5

B
U
S
I
N
E
S
S

S
E
G
M
E
N
T

A
N
A
L
Y
S
I
S

B
E
L
L

A
L
I
A
N
T
M
D
&
A

BELL ALIANT
REVENUE MIX
BELL ALIANT
EBITDA
(% EBITDA MARGIN)
(IN $ MILLIONS)
44%
35%
11%
6%
4%
TOTAL REVENUE
$2,759
IN 2013 (IN $ MILLIONS)
TOTAL REVENUE
-0.1%
COMPARED TO 2012
Best year-over-year
revenue performance
since 2008
Data, which includes
Internet and IPTV, is
Bell Aliants fastest-
growing business
and now represents
more than 1/3 of its
total revenue
FTTH NETWORK
806,000
HOMES AND BUSINESSES
FIBREOP TV CUSTOMERS
158,044
+63% COMPARED TO 2012
FIBREOP INTERNET CUSTOMERS
183,971
+64% COMPARED TO 2012
BELL ALIANT RESULTS
REVENUE
Local and access 1,109 1,168 (59) (5.1%)
Long distance 286 322 (36) (11.2%)
Data 887 809 78 9.6%
Wireless 97 94 3 3.2%
Equipment and other 131 134 (3) (2.2%)
Total external revenues 2,510 2,527 (17) (0.7%)
Total revenue 2,759 2,761 (2) (0.1%)

Local and access

Long distance

Data

Wireless

Equipment and other
46.1%
$1,272 IN 2013
46.8%
$1,292 IN 2012
5

B
U
S
I
N
E
S
S

S
E
G
M
E
N
T

A
N
A
L
Y
S
I
S

B
E
L
L

A
L
I
A
N
T
M
D
&
A

Bell Aliant operating revenues remained relatively stable in 2013,
decreasing 0.1%, as growth in data revenues was offset by lower
local and access and long distance revenues.
Local and access revenues decreased 5.1% in 2013, as a result
of the ongoing reduction in Bell Aliants NAS customer base
and the effect of competition and bundling services
Long distance revenues were down 11.2% in 2013. The decline
was the result of lower NAS and lower overall conversation
minutes, due to substitution of traditional wireline service with
e-mail, wireless calling and VoIP services, as well as customer
migration from per-minute plans to at rate plans
Data revenues increased 9.6% in 2013, due to strong growth in
Internet and IPTV revenues, as well as to higher IP connectivity
revenues. Higher Internet revenues were driven by customer
growth, reecting continued steady demand for FibreOP
services, as well as growth in residential Internet ARPU resulting
from increased customer adoption of higher bandwidth
plans and price increases. Higher IPTV service revenues were
driven by growth in Bell Aliants FibreOP TV customer base
and the expiry of promotional pricing offers
Wireless revenues were 3.2% higher in 2013 as a result
of wireless customer growth over the past year, partly
offset by a modest decrease in ARPU reecting aggressive
competitive pricing
Equipment and other revenues decreased 2.2% in 2013,
as a result of lower telecommunications equipment sales
and rentals
Operating costs (1,487) (1,469) 18 1.2%
EBITDA 1,272 1,292 (20) (1.5%)
EBITDA margin 46.1% 46.8% (0.7%)
Bell Aliant operating costs increased 1.2% in 2013, reecting increased
marketing and sales expenses attributable to growth in FibreOP
customers and higher TV content costs resulting from IPTV customer
growth. Lower general and administrative expenses, driven by
procurement savings and productivity initiatives, partly offset the
increase in operating costs compared to 2012.
Bell Aliant EBITDA decreased 1.5% in 2013, mainly as a result of higher
operating costs. EBITDA margin declined by 7 basis points in 2013
to 46.1% as continued declines in higher-margin voice revenues
and higher operating costs were not offset fully by growth in
lower-margin data service revenues.
BELL ALIANT OPERATING METRICS
NAS LINES
Residential 1,462,462 1,571,199 (108,737) (6.9%)
Business 890,858 920,171 (29,313) (3.2%)
Total 2,353,320 2,491,370 (138,050) (5.5%)
NAS NET LOSSES
Residential (108,737) (107,671) (1,066) (1.0%)
Business (29,313) (29,734) 421 1.4%
Total (138,050) (137,405) (645) (0.5%)
HIGH-SPEED INTERNET
High-speed Internet net activations 33,679 22,894 10,785 47.1%
High-speed Internet subscribers 952,093 918,414 33,679 3.7%
FibreOP Internet customers included
in High-Speed Internet customers 183,971 112,203 71,768 64.0%
TV
Net subscriber activations 55,063 45,960 9,103 19.8%
Total Subscribers 178,083 123,020 55,063 44.8%
FibreOP TV 158,044 96,831 61,213 63.2%
WIRELESS
Subscribers 146,698 143,858 2,840 2.0%
5

B
U
S
I
N
E
S
S

S
E
G
M
E
N
T

A
N
A
L
Y
S
I
S

B
E
L
L

A
L
I
A
N
T
M
D
&
A

NAS net losses were a result of competitive losses driven by aggres-
sive pricing by competitors and continued customer substitution
to wireless and IP-based solutions. Despite intense competitive
activity, NAS net losses were consistent with 2012 as there was
improved retention in Bell Aliants residential FibreOP markets, as
well as expansion into new markets, which moderated the decline
in the residential customer NAS base. At December 31, 2013, Bell
Aliant had 2,353,320 NAS lines, compared to 2,491,370 NAS lines
at the end of 2012.
High-speed Internet subscriber net activations increased 47.1%, or
10,785 subscribers, in 2013 to 33,679, reecting continued steady
demand for FibreOP service bundles and wholesale customer
gains. At December 31, 2013, Bell Aliant had 952,093 high-speed
Internet subscribers, which included 183,971 FibreOP customers,
compared to 918,414 subscribers at the end of 2012, which included
112,203 FibreOP customers.
IPTV net activations increased 19.8%, or 9,103 subscribers in 2013,
to 55,063, as a result of increased customer demand for FibreOP
TV service. At December 31, 2013, Bell Aliant had 178,083 IPTV
customers, which included 158,044 FibreOP TV customers, compared
to 123,020 IPTV customers at the end of 2012, which included
96,831 FibreOP TV customers.
Wireless customers totalled 146,698 at December 31, 2013, representing
a 2.0% increase since the end of 2012.
Cable companies are the most signicant competitive threat to Bell
Aliant. At the end of 2013, its competitive footprint overlap with cable
companies was approximately 75.8% of residential households in
Bell Aliants markets, representing a 1.6 percentage point increase
from 2012. In addition, the rapid development of new technologies,
services and products has facilitated the entry of other competitors
into Bell Aliants markets, enabling these competitors to offer their
customers an alternative to traditional voice services through
wireless and IP-based technologies. Bell Aliant actively employs
marketing strategies to remain competitive in all of its operating
markets and continues to innovate and develop new and enhanced
services to meet the communications needs of its customers. Bell
Aliant also continues to invest in its FTTH network and extend its
FibreOP TV and Internet service to more communities across its
operating markets.
Competition comes from substitution of wireless services, including
Bell Aliant, Bell Mobility and Virgin Mobile wireless offerings, for
residential local and long distance services.
COMPETITORS
Cable TV providers provide cable TV, Internet and cable telephony services, including:
EastLink in Atlantic Canada and rural Ontario
Rogers in Newfoundland and Labrador, New Brunswick and Ontario
Vidotron in rural Qubec
Cogeco in rural Qubec
Shaw in rural Ontario
Shaw Direct, providing DTH satellite TV service nationwide
Some smaller private cable companies in rural communities
Various other companies, such as Vonage and Primus, that offer resale or VoIP-based
local, long distance and Internet services.
OTT voice and video services such as Skype, Netix and iTunes.
Digital media streaming devices such as Apple TV and Roku.
MARKET FACTS
There are 2.5 million households
in Bell Aliants territory, which includes
Atlantic Canada and rural Ontario
and Qubec
Approximately 76% of the house-
holds in its territory have a cable
telephony alternative
Over 85% of the households in its
territory have access to Bell Aliants
high-speed Internet services; Internet
penetration is estimated to be between
70% to 75% across its territories
INDUSTRY TRENDS
Bell Aliants operations include both wireline and wireless services. Therefore, the industry trends applicable to Bell Aliant are similar to
those described under sections 5.1 Bell Wireless and 5.2 Bell Wireline in this MD&A.
2014 OUTLOOK
Growing broadband, specically FTTH, is the cornerstone of Bell
Aliants strategy. Bell Aliants subscriber results in markets where
bre has been deployed greatly exceed performance in markets
where it does not have bre. This reinforces Bell Aliants objective
to expand its FTTH footprint to reach 1 million locations in 2014.
Since the middle of 2012, Bell Aliant has added a substantial number
of FibreOp customers to its FTTH network. As expected, this success
has led to some strong competitive reactions, specically in New
Brunswick and Newfoundland and Labrador, with extreme price
discounts being offered by competitors. Bell Aliant plans to compete
aggressively, where necessary, to maintain and grow customers,
but this competitive activity is anticipated to pressure revenue and
EBITDA growth in 2014, as it did in 2013.
5

B
U
S
I
N
E
S
S

S
E
G
M
E
N
T

A
N
A
L
Y
S
I
S

B
E
L
L

A
L
I
A
N
T
M
D
&
A

Bell Aliant believes that FTTH is the best technology to meet customer
requirements for the future. Although competitive pressures
experienced in 2013 may delay a return to positive revenue and
EBITDA growth, Bell Aliant believes that by providing the best
technology available, it has the ability to become the provider of
choice in its FTTH markets and that growth in FibreOP services
will more than offset declines in legacy services over time. In 2014,
growth in Internet and IPTV revenues is expected to continue, but
likely will be offset by ongoing declines in traditional voice revenues
due to intense competition and technology substitution. Bell Aliant
anticipates that net NAS declines, high-speed Internet customer
net additions and IPTV customer net additions will be similar to
those experienced in 2013. Other revenues also will decline in 2014
as several large projects in 2013 are not expected to recur and a
contact centre subsidiary ceased operations in late 2013.
Operating expenses in 2014 are expected to remain consistent
with 2013 levels, as savings from productivity initiatives and lower
current service pension costs are expected to offset higher spending
on TV content costs resulting from a growing TV customer base
and normal inationary pressures. As a result, EBITDA is expected
to decrease in 2014.
Capital expenditures in 2014 are expected to remain at ele-
vated levels. Higher spending on FTTH footprint expansion in
2014, compared to 2013, and new FibreOP customer connections
in 2014 are expected to be offset by lower spending on copper
network replacement and large customer network projects that
were completed in 2013. Bell Aliant intends to pass 190,000 to
200,000 incremental homes and businesses with FTTH.
As a result, free cash ow in 2014 is expected to be impacted by lower
EBITDA, higher cash income taxes paid, lower cash from changes
in working capital and continued elevated capital expenditures.
ASSUMPTIONS
Economy continues to rebound
Competitive activity in both consumer and business
will continue to be intense
Wireless substitution for wireline services will increase
in Bell Aliant markets, but is expected to lag other regions
of Canada
NAS net decline stabilizing
Steady demand for FibreOP service driving Internet and IPTV
customer acquisition at similar levels as 2013
Cost reductions achieved through productivity initiatives will
continue, largely offsetting cost increases associated with
growth in IPTV customers and associated TV content costs
and normal inationary pressures
KEY GROWTH DRIVERS
Continued expansion of the FTTH network
Increasing customer adoption of FibreOP Internet and FibreOP TV services
Lower residential customer churn
Increased spending by business customers
This section discusses certain principal business risks which specically affect the Bell Aliant segment. For a detailed description of the
INCREASING COMPETITION COST MANAGEMENT FINANCING AND
FREE CASH FLOW
RISK
activity from cable companies
and other competitors
IMPACT
Aggressive offers and techno-
logical substitution could lead
to higher customer churn and
increased retention costs through
use of promotional offers to
keep customers
Inability to make continued
investments in FTTH networks
which enable the provision of new
products and services to meet the
advanced technological needs
of customers
RISK
Cost structure does not support
the shift in product mix towards
growth services
IMPACT
It may be difcult to improve cus-
tomer service while reducing costs
through productivity initiatives
Capital investments may not be
effective in delivering the planned
operational efciencies
RISK
Unable to balance cash
allocation decisions
IMPACT
Reduced exibility in accessing
the capital and/or commercial
credit markets
The level of dividends, capital
expenditures or other strategic
uses of cash may vary
6

F
I
N
A
N
C
I
A
L

A
N
D

C
A
P
I
T
A
L

M
A
N
A
G
E
M
E
N
T
M
D
&
A

6 FINANCIAL AND
CAPITAL MANAGEMENT
This section tells you how we manage our cash and capital resources to carry out our strategy and deliver nancial results. It provides an
analysis of our nancial condition, cash ows and liquidity on a consolidated basis.
6.1 NET DEBT
(1)
Debt due within one year
(2)
2,571 2,136 435 20.4%
Long-term debt 16,341 13,886 2,455 17.7%
Preferred shares
(3)
1,698 1,698 0.0%
Cash and cash equivalents (335) (129) (206) n.m.
Net debt 20,275 17,591 2,684 15.3%
(1) Net debt is a non-GAAP nancial measure and does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented
by other issuers. See section 10.2, Non-GAAP Financial measures Net debt in this MD&A for more details.
(2) Includes bank advances, notes payable and loans secured by trade receivables.
(3) 50% of outstanding preferred shares of $3,395 million in 2013 and 2012, respectively, are classied as debt consistent with the treatment by some credit rating agencies.
The increase of $2,890 million in debt due within one year and long-
term debt was due to:
The issuance of Series M-26, M-27, M-28 and M-29 MTN
debentures at Bell Canada with a total principal amount
of $3 billion
$1 billion drawn under Bell Canadas unsecured committed term
acquisition credit facility to fund a portion of the purchase
price of Astral
The issuance of MTNs at Bell Aliant with a total principal amount
of $400 million
The assumption of $397 million of debt as part of the acquisition
of Astral
An increase in our nance lease obligations of $322 million
An increase in our notes payable and bank advances
(net of repayments) of $274 million
partly offset by:
Early redemption of Series M-20 MTN debentures at
Bell Canada amounting to $1 billion
$432 million of payments under nance leases
$400 million early redemption of Series 3 MTNs at Bell Aliant
$397 million repayment of debt assumed on the acquisition
of Astral
$150 million early redemption of Series EA debentures
at Bell Canada
$70 million repayment of Series AA debentures at Bell Aliant
The increase in cash and cash equivalents of $206 million was
due to free cash ow of $2,571 million, a net increase in debt of
$2,215 million and the issuance of preferred shares by Bell Aliant
to non-controlling interest (NCI) of $230 million, partly offset by
the purchase cost of Astral of $2,844 million and dividends paid
on common shares of $1,795 million.
6.2 OUTSTANDING SHARE DATA
COMMON SHARES OUTSTANDING NUMBER OF SHARES
Outstanding, January 1, 2013 775,381,645
Shares issued under employee stock option plan 420,822
Shares issued under employee savings plan 90,089
Outstanding, December 31, 2013 775,892,556
STOCK OPTIONS OUTSTANDING NUMBER OF OPTIONS
WEIGHTED AVERAGE
EXERCISE PRICE ($)
Outstanding, January 1, 2013 5,310,356 37
Granted 2,993,902 44
Exercised (420,822) 30
Forfeited (13,205) 40
Outstanding, December 31, 2013
(1)
7,870,231 40
(1) None of the options were vested at December 31, 2013.
At March 6, 2014, 777,093,077 common shares and 9,927,091 stock options were outstanding.
6
6

F
I
N
A
N
C
I
A
L

A
N
D

C
A
P
I
T
A
L

M
A
N
A
G
E
M
E
N
T
M
D
&
A

6.3 CASH FLOWS
Cash ows from operating activities 6,476 5,560 916 16.5%
Bell Aliant dividends paid to BCE 191 191 0.0%
Capital expenditures (3,571) (3,515) (56) (1.6%)
Cash dividends paid on preferred shares (127) (133) 6 4.5%
Cash dividends paid by subsidiaries to non-controlling interest (283) (340) 57 16.8%
Acquisition costs paid 80 101 (21) (20.8%)
Voluntary dened benet pension plan contributions 750 (750) (100.0%)
Bell Aliant free cash ow (195) (186) (9) (4.8%)
Free cash ow
(1)
2,571 2,428 143 5.9%
Bell Aliant free cash ow, excluding dividends paid 4 (5) 9 n.m.
Business acquisitions (2,850) (13) (2,837) n.m.
Acquisition costs paid (80) (101) 21 20.8%
Voluntary dened benet pension plan contributions (750) 750 100.0%
Increase in investments (3) (593) 590 99.5%
Other investing activities 23 20 3 15.0%
Net issuance (repayment) of debt instruments 2,215 486 1,729 n.m.
Reduction in securitized trade receivables (14) (15) 1 6.7%
Premiums on early redemption of debt (55) (55) n.m.
Issue of common shares 13 39 (26) (66.7%)
Issue of preferred shares 280 (280) (100.0%)
Issue of equity securities by subsidiaries to non-controlling interest 230 11 219 n.m.
Repurchase of common shares (107) 107 100.0%
Cash dividends paid on common shares (1,795) (1,683) (112) (6.7%)
Other nancing activities (53) (45) (8) (17.8%)
Net increase (decrease) in cash and cash equivalents 206 (48) 254 n.m.
(1) Free cash ow is a non-GAAP nancial measure and does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures
presented by other issuers. See section 10.2 Non-GAAP Financial Measures Free Cash Flow in this MD&A for more details, including a reconciliation to the most comparable
IFRS nancial measure.
CASH FLOWS FROM OPERATING ACTIVITIES
The increase in BCEs cash ows from operating activities was due to:
A decrease of $851 million in contributions to DB pension plans due to voluntary contributions made in 2012 of $750 million
and $100 million at Bell and Bell Aliant, respectively
An increase of $268 million in EBITDA, exclusive of post-employment benet plans service cost
Partly offset by higher income taxes paid of $190 million
Bell 3,001 2,923 78 2.7%
Capital intensity ratio 16.6% 16.6% 0.0%
Bell Aliant 570 592 (22) (3.7%)
Capital intensity ratio 20.7% 21.4% (0.7%)
BCE 3,571 3,515 56 1.6%
Capital intensity ratio 17.5% 17.6% (0.1%)
6

F
I
N
A
N
C
I
A
L

A
N
D

C
A
P
I
T
A
L

M
A
N
A
G
E
M
E
N
T
M
D
&
A

BCE capital expenditures were up $56 million, or 1.6%, in 2013 reect-
ing higher spending at Bell, partly offset by slightly lower spending
at Bell Aliant. As a percentage of revenue, capital expenditures for
BCE were 17.5% compared to 17.6% in 2012.
Bell capital expenditures increased $78 million, or 2.7%, corres-
ponding to a capital intensity ratio of 16.6% which was unchanged
compared to 2012. The increase was due to:
Higher spending to support expansion of our Fibe TV
service footprint
Deployment of broadband bre to existing residential
homes and neighbourhoods, new housing developments,
condominiums and other MDUs, as well as targeted
businesses in Ontario and Qubec
Ongoing roll-out of 4G LTE mobile service in markets
across Canada
Expansion of wireless network capacity to accommodate
increasing data usage
Spending to support the execution of customer contracts
in our Business Markets unit
Investment in customer service to improve client care support
systems and self-serve tools
Addition of new Bell and The Source stores across Canada.
Bell Aliant capital expenditures decreased $22 million, or 3.7%,
corresponding to a capital intensity ratio of 20.7% compared to
21.4% in 2012. The decrease was due to fewer incremental homes
passed with its FTTH network, a reduction in central Canada FibreOP
start-up costs and lower capital expenditures for legacy services.
FREE CASH FLOW
Free cash ow increased $143 million, driven mainly by higher EBITDA, offset partly by higher capital expenditures, increased interest
payments from a higher average level of outstanding debt and higher taxes paid.
BUSINESS ACQUISITIONS
Business acquisitions in 2013 reect our acquisition of Astral of $2,844 million, net of $32 million of cash acquired. Refer to section 1.3, Key
Corporate Developments Acquisition of Astral.
INCREASE IN INVESTMENTS
In 2012, BCE acquired a 28% indirect equity interest in MLSE for a net cash consideration of $398 million and a 35.3% indirect equity
interest in Q9 for a net cash consideration of $185 million.
DEBT INSTRUMENTS
We use a combination of short-term and long-term debt to nance
our operations. Our short-term debt consists mostly of bank
facilities, notes payable under commercial paper programs and
loans securitized by trade receivables. We usually pay xed rates of
interest on our long-term debt and oating rates on our short-term
debt. As at December 31, 2013, all of our debt was denominated
in Canadian dollars. The net issuance of debt instruments of
$2,215 million, net of repayments was due to:
The issuance of Series M-26, Series M-27, Series M-28 and
Series M-29 MTN debentures at Bell Canada with a total
principal amount of $3 billion
$1 billion drawn under Bell Canadas unsecured committed term
acquisition credit facility to fund a portion of the purchase
price of Astral
The issuance of MTNs at Bell Aliant with a total principal amount
of $400 million
An increase in our notes payable and bank advances, net of
repayments, of $272 million
partly offset by:
Early redemption of Series M-20 MTN debentures at
Bell Canada amounting to $1 billion
$432 million of payments under nance leases
$400 million early redemption of Series 3 MTNs at Bell Aliant
$397 million repayment of debt assumed on the acquisition
of Astral
$150 million early redemption of Series EA debentures
at Bell Canada
$70 million repayment of Series AA debentures at Bell Aliant
In 2012, we issued $486 million of debt, net of repayments. This
included the issuance of MTN debentures at Bell Canada with a
total principal amount of $1 billion and issuances of notes payable
and bank advances of $377 million, offset partly by the repayment
of another series of MTN debentures at Bell Canada with a total
principal amount of $500 million and payments under nance
leases of $391 million.
PREMIUMS ON EARLY REDEMPTION OF DEBT
In 2013, Bell Canada redeemed early its Series M-20 MTN debentures and Series EA debentures, incurring charges of $28 million and
$17 million, respectively, and Bell Aliant redeemed early its Series 3 MTN debentures, incurring charges of $10 million.
6

F
I
N
A
N
C
I
A
L

A
N
D

C
A
P
I
T
A
L

M
A
N
A
G
E
M
E
N
T
M
D
&
A

ISSUE OF PREFERRED SHARES
In 2012, BCE issued 11,200,000 Series AK Preferred Shares for gross proceeds of $280 million.
ISSUE OF EQUITY SECURITIES BY SUBSIDIARIES TO NCI
In 2013, Bell Aliant Preferred Equity Inc., an indirect subsidiary of Bell Aliant, issued preferred shares for gross proceeds of $230 million.
REPURCHASE OF COMMON SHARES
In 2011, BCE announced its plan to repurchase up to $250 million of its outstanding common shares through a NCIB. BCE repurchased and
cancelled 2,604,439 of its common shares for a total cash outlay of $107 million under the program in 2012. The program was completed
in March 2012.
CASH DIVIDENDS PAID ON COMMON SHARES
The BCE board approved increases in the common share dividend in 2013 and 2012. Accordingly, in 2013, the cash dividend paid on a BCE
common share increased to $2.315 per common share, compared to a cash dividend of $2.17 per common share in 2012.
6.4 POST-EMPLOYMENT BENEFIT PLANS
For the year ended December 31, 2013, we recorded a decrease
in our post-employment benet obligations and an actuarial gain,
before taxes and NCI, in OCI of $1,416 million. The change was due
to a higher actual discount rate and a higher-than-expected return
on plan assets.
For the year ended December 31, 2012, we recorded an increase
in our post-employment benet obligations and an actuarial loss,
before taxes and NCI, in other comprehensive loss of $1,449 million.
This was due to a lower actual discount rate, offset partly by a
higher-than-expected return on plan assets.
6.5 CREDIT RATINGS
Credit ratings generally address the ability of a company to repay
principal and pay interest on debt or dividends on issued and
outstanding preferred shares.
Our ability to raise nancing depends on our ability to access the
public equity and debt capital markets as well as the bank credit
market. Our ability to access such markets and the cost and
amount of funding available partly depends on the quality of our
credit ratings at the time capital is raised. Investment-grade credit
ratings usually mean that when we borrow money, we qualify for
lower interest rates than companies that have ratings lower than
investment-grade. A ratings downgrade could result in adverse
consequences for our funding capacity or ability to access the
capital markets.
As of March 6, 2014, the BCE and Bell Canada ratings remained
unchanged at investment-grade levels and were assigned stable
outlooks from Standard & Poors Rating Services, DBRS Limited and
Moodys Investors Service, Inc.
KEY CREDIT RATINGS
MARCH 6, 2014
BCE
(1)
DBRS MOODY'S S&P
Long-term debt BBB (high) Baa2 BBB+
Preferred shares Pfd-3 (high) P-2 (low)
BELL CANADA
(1)
DBRS MOODY'S S&P
Commercial paper R-1 (low) P-2 A-2
Long-term debt A (low) Baa1 BBB+
Subordinated long-term debt BBB Baa2 BBB
(1) These credit ratings are not recommendations to buy, sell or hold any of the securities referred to above, and they may be revised or withdrawn at any time by the assigning
rating organization. Each credit rating should be evaluated independently of any other credit rating.
6

F
I
N
A
N
C
I
A
L

A
N
D

C
A
P
I
T
A
L

M
A
N
A
G
E
M
E
N
T
M
D
&
A

6.6 LIQUIDITY
SOURCES OF LIQUIDITY
Our cash and cash equivalents balance at the end of 2013 was
$335 million. We expect that this balance, our 2014 estimated cash
ows from operations, and possible capital markets nancing,
including commercial paper, will permit us to meet our cash require-
ments in 2014 for capital expenditures, post-employment benet
plans funding, dividend payments, the payment of contractual
obligations, maturing debt, the purchase of spectrum licences,
ongoing operations and other cash requirements.
Should our 2014 cash requirements exceed our cash and cash
equivalents balance, cash generated from our operations, and
capital markets nancings, we would cover such a shortfall by
drawing under committed revolving credit facilities that are
currently in place or through new facilities, to the extent available.
Our cash ows from operations, cash and cash equivalents balance,
capital markets nancings and credit facilities should give us
exibility in carrying out our plans for future growth, including
business acquisitions and contingencies.
AT DECEMBER 31, 2013 TOTAL AVAILABLE DRAWN LETTERS OF CREDIT
COMMERCIAL PAPER
OUTSTANDING NET AVAILABLE
Committed credit facilities
Bell Canada
Revolving facility
(1)
2,500 837 1,663
Unsecured committed term acquisition
credit facility (Astral) 1,000 1,000
Other 286 240 46
Bell Aliant
Revolving facility
(1)
750 55 193 502
Other 234 70 134 30
Total committed credit facilities 4,770 1,125 567 837 2,241
Non-committed credit facilities
Bell Canada 817 4 640 173
Bell Aliant 3 3
Total non-committed credit facilities 820 4 640 176
Total committed and non-committed
credit facilities 5,590 1,129 1,207 837 2,417
(1) Bell Canadas $2,500 million revolving facility expires in November 2018 and Bell Aliants $750 million revolving facility expires in June 2017.
Bell Canada may issue up to $2 billion of notes under its commercial
paper program, that is supported by a committed revolving bank
credit facility. The total amount of this credit facility may be drawn
at any time. Some of our credit agreements require us to meet
specic nancial ratios and to offer to repay and cancel the credit
agreement upon a change of control of BCE or Bell Canada. We are
in compliance with all conditions and restrictions.
6

F
I
N
A
N
C
I
A
L

A
N
D

C
A
P
I
T
A
L

M
A
N
A
G
E
M
E
N
T
M
D
&
A

CASH REQUIREMENTS
In 2014, our capital spending is planned to focus on our strategic imperatives, reecting an appropriate level of investment in our networks
and services.
POST-EMPLOYMENT BENEFIT PLANS FUNDING
Our post-employment benet plans include both DB pension
and dened contribution (DC) pension plans, as well as OPEBs.
The funding requirements of our post-employment benet plans,
resulting from valuations of our plan assets and liabilities, depend on
a number of factors, including actual returns on post-employment
benet plan assets, long-term interest rates, plan demographics,
and applicable regulations and actuarial standards. Our expected
funding for 2014 is detailed in the following table and is subject to
actuarial valuations that will be completed in mid-2014. An actuarial
valuation was last performed for our signicant post-employment
benet plans as at December 31, 2012.
2014 EXPECTED FUNDING BELL BELL ALIANT TOTAL
DB pension plans service cost 187 45 232
DB pension plans decit 3 5 8
DB pension plans 190 50 240
OPEBs 75 10 85
DC pension plans 85 10 95
Total net post-employment benet plans 350 70 420
Bell Canada closed the membership of its DB pension plans to
new employees in January 2005 to reduce the impact of pension
volatility on earnings over time. Generally, new employees now enrol
in the DC pension plans. In 2006, we announced the phase-out, over
a ten-year period, of OPEBs for all employees, which will result in
Bells OPEBs funding being phased out gradually after 2016.
DIVIDEND PAYMENTS
In 2014, the cash dividends to be paid on BCEs common shares
are expected to be higher than in 2013 as BCEs common share
dividend increased by 6.0% to $2.47 per common share from
$2.33 per common share at the end of 2013. These increases are
consistent with BCEs common share dividend policy of a target
payout between 65% and 75% of free cash ow. BCEs dividend
policy and the declaration of dividends are subject to the discretion
of the BCE Board.
CONTRACTUAL OBLIGATIONS
The following table is a summary of our contractual obligations at December 31, 2013 that are due in each of the next ve years and thereafter.
2014 2015 2016 2017 2018
THERE-
AFTER TOTAL
Recognized nancial liabilities
Long-term debt 349 1,379 2,220 1,183 1,670 7,980 14,781
Notes payable and bank advances 972 972
Minimum future lease payments under nance leases 489 418 288 260 237 1,618 3,310
Loan secured by trade receivables 921 921
Interest payable on long-term debt, notes payable,
bank advances and loan secured by trade receivables 734 677 605 538 476 4,634 7,664
MLSE nancial liability 135 135
Net interest receipts on derivatives (23) (22) (19) (7) (71)
Commitments (Off-Balance Sheet)
Operating leases 296 249 207 165 128 692 1,737
Commitments for property, plant and equipment
and intangible assets 232 78 47 12 10 25 404
Purchase obligations 1,968 1,360 602 430 279 1,177 5,816
Total 5,938 4,139 3,950 2,716 2,800 16,126 35,669
6

F
I
N
A
N
C
I
A
L

A
N
D

C
A
P
I
T
A
L

M
A
N
A
G
E
M
E
N
T
M
D
&
A

BCEs signicant nance leases are for satellites and ofce premises.
The leases for satellites, used to provide programming to our Bell
TV customers, have a term of 15 years. The satellite leases are
non-cancellable. The ofce leases have a typical lease term of
15 years. Minimum future lease payments under nance leases
include future nance costs of $1,062 million.
BCEs signicant operating leases are for ofce premises, cellular
tower sites and retail outlets with lease terms ranging from 1 to
33 years. These leases are non-cancellable and generally are
renewable at the end of the lease period. Rental expense relating to
operating leases was $300 million in 2013 and $269 million in 2012.
Purchase obligations consist of contractual obligations under service
and product contracts, for both operating and capital expenditures.
Our commitments for property, plant, and equipment and intangible
assets include investments to expand and update our networks,
and to meet customer demand.
INDEMNIFICATIONS AND GUARANTEES
As a regular part of our business, we enter into agreements that
provide for indemnications and guarantees to counterparties in
transactions involving business dispositions, sales of assets, sales
of services, purchases and development of assets, securitization
agreements and operating leases.
We cannot reasonably estimate the maximum potential amount we
could be required to pay counterparties because of the nature of
almost all of these indemnications and guarantees. As a result, we
cannot determine how they could affect our future liquidity, capital
resources or credit risk prole. We have not made any signicant
payments under indemnications or guarantees in the past.
LITIGATION
We become involved in various legal proceedings as a part of our
business. While we cannot predict the nal outcome or timing of the
legal proceedings that were pending at March 6, 2014, based on
information currently available and managements assessment
of the merits of such legal proceedings, management believes that
the resolution of these legal proceedings will not have a material and
negative effect on our nancial statements. We believe that we have
strong defences and we intend to vigorously defend our positions.
You will nd a description of the principal legal proceedings pending
at March 6, 2014 in the BCE 2013 AIF.
7

S
E
L
E
C
T
E
D

A
N
N
U
A
L

A
N
D

Q
U
A
R
T
E
R
L
Y

I
N
F
O
R
M
A
T
I
O
N
M
D
&
A

7 SELECTED ANNUAL AND
QUARTERLY INFORMATION
7.1 ANNUAL FINANCIAL INFORMATION
The following table shows selected consolidated nancial data of BCE for 2013, 2012 and 2011, prepared in accordance with IFRS as issued
by the International Accounting Standards Board (IASB). We discuss the factors that caused our results to vary over the past two years
throughout this MD&A.
2013 2012 2011
CONSOLIDATED INCOME STATEMENTS
Operating revenues 20,400 19,978 19,502
Operating costs (12,311) (12,090) (11,864)
EBITDA 8,089 7,888 7,638
Severance, acquisition and other costs (406) (133) (409)
Depreciation (2,734) (2,678) (2,545)
Amortization (646) (714) (723)
Finance costs
Interest expense (931) (865) (853)
Interest on post-employment benet obligations (150) (131) (149)
Other (expense) income (6) 269 127
Income taxes (828) (760) (662)
Net earnings 2,388 2,876 2,424
Common shareholders 1,975 2,456 2,081
Preferred shareholders 131 139 119
Non-controlling interest 282 281 224
Net earnings 2,388 2,876 2,424
Net earnings per common share
Basic 2.55 3.17 2.70
Diluted 2.54 3.17 2.70
Included in net earnings:
Severance, acquisition and other costs (299) (94) (282)
Net (losses) gains on investments (7) 256 89
Premiums on early redemption of debt (36)
Adjusted net earnings 2,317 2,294 2,274
Adjusted EPS 2.99 2.96 2.95
RATIOS
EBITDA margin (%) 39.7% 39.5% 39.2%
Return on equity (%) 17.9% 23.2% 19.7%
(1) On July 5, 2013, BCE acquired 100% of the issued and outstanding shares of Astral. Refer to section 1.3, Key Corporate Developments Acquisition of Astral, and Note 4
to BCEs 2013 consolidated nancial statements, for further details on the transaction.
(2) On April 1, 2011, BCE acquired the remaining 85% of CTV common shares that we did not already own. As part of its approval of the acquisition, the CRTC ordered BCE to spend
$239 million over seven years to benet the Canadian broadcasting system. The present value of this tangible benets obligation, amounting to $164 million, net of $57 million
assumed by CTVs previous shareholders, was recorded as an acquisition cost in Severance, acquisition and other costs in 2011. A gain of $89 million was realized on our
previously held 15% equity interest in CTV at the acquisition date, which was recorded in Other income in 2011.
7
(1) (2)
7

S
E
L
E
C
T
E
D

A
N
N
U
A
L

A
N
D

Q
U
A
R
T
E
R
L
Y

I
N
F
O
R
M
A
T
I
O
N
M
D
&
A

2013 2012 2011
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Total assets 45,384 40,969 39,461
Cash and cash equivalents 335 129 177
Debt due within one year (including bank advances,
notes payable and loan secured by trade receivables) 2,571 2,136 2,132
Long-term debt 16,341 13,886 12,721
Total non-current liabilities 21,244 19,498 17,882
Equity attributable to BCE shareholders 15,011 13,875 13,777
Total equity 16,250 14,725 14,759
RATIOS
Total debt to total assets (times) 0.42 0.39 0.38
Total debt to total equity (times) 1.05 0.98 0.92
CONSOLIDATED STATEMENTS OF CASH FLOWS
Cash ows from operating activities 6,476 5,560 4,881
Cash ows used in investing activities (6,401) (4,101) (3,894)
Capital expenditures (3,571) (3,515) (3,256)
Business acquisitions (2,850) (13) (680)
Increase in investments (3) (593) (14)
Cash ows from (used in) nancing activities 131 (1,507) (1,581)
Repurchase of common shares (107) (143)
Issue of common shares 13 39 152
Issue of preferred shares 280 345
Net issuance (repayment) of debt instruments 2,215 486 (6)
Cash dividends paid on common shares (1,795) (1,683) (1,520)
Cash dividends paid on preferred shares (127) (133) (118)
Cash dividends paid by subsidiaries
to non-controlling interest (283) (340) (315)
Free cash ow 2,571 2,428 2,273
SHARE INFORMATION
Average number of common shares (millions) 775.8 774.3 771.4
Common shares outstanding at end of year (millions) 775.9 775.4 775.4
Market capitalization 35,691 33,055 32,931
Dividends declared per common share (dollars) 2.3300 2.2200 2.0450
Book value per share (dollars) 14.97 13.52 13.75
Dividends declared on common shares (1,807) (1,720) (1,579)
Dividends declared on preferred shares (131) (138) (119)
Market price per common share (dollars)
High (end of day) 48.43 45.06 42.47
Low (end of day) 41.57 39.37 34.31
Close 46.00 42.63 42.47
Total shareholder return 13.6% 5.9% 27.0%
RATIOS
Capital intensity (%) 17.5% 17.6% 16.7%
Price to earnings ratio (times) 18.04 13.45 15.73
Price to book ratio (times) 3.07 3.15 3.09
Price to cash ow ratio (times) 12.30 16.15 20.13
OTHER DATA
Number of employees (thousands) 56 56 55
7

S
E
L
E
C
T
E
D

A
N
N
U
A
L

A
N
D

Q
U
A
R
T
E
R
L
Y

I
N
F
O
R
M
A
T
I
O
N
M
D
&
A

7.2 QUARTERLY FINANCIAL INFORMATION
The following table shows selected BCE consolidated nancial data by quarter for 2013 and 2012. This quarterly information is unaudited
but has been prepared on the same basis as the annual consolidated nancial statements. We discuss the factors that caused our results
to vary over the past eight quarters throughout this MD&A.
2013 2012
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Operating revenues 5,382 5,099 5,000 4,919 5,161 4,982 4,925 4,910
EBITDA 1,998 2,063 2,066 1,962 1,896 2,019 2,044 1,929
Severance, acquisition and other costs (48) (297) (28) (33) (69) (25) (20) (19)
Depreciation (695) (683) (681) (675) (693) (673) (666) (646)
Amortization (160) (162) (161) (163) (175) (180) (178) (181)
Net earnings 593 452 671 672 765 644 836 631
Net earnings attributable
to common shareholders 495 343 571 566 666 527 732 531
Basic 0.64 0.44 0.74 0.73 0.86 0.68 0.94 0.69
Diluted 0.63 0.44 0.74 0.73 0.86 0.68 0.94 0.69
Included in net earnings:
Severance, acquisition and other costs (33) (222) (21) (23) (46) (19) (15) (14)
Net (losses) gains on investments (12) 2 1 2 248 8
Premiums on early redemption of debt (21) (3) (12)
Adjusted net earnings 540 584 594 599 464 546 747 537
Adjusted EPS 0.70 0.75 0.77 0.77 0.60 0.70 0.97 0.69
Average number of common shares
outstanding basic (millions) 775.9 775.9 775.9 775.7 775.0 774.2 773.7 774.3
FOURTH QUARTER HIGHLIGHTS
OPERATING REVENUES Q4 2013 Q4 2012 $ CHANGE % CHANGE
Bell Wireline 2,601 2,608 (7) (0.3%)
Bell Wireless 1,505 1,458 47 3.2%
Bell Media 821 591 230 38.9%
Bell 4,813 4,577 236 5.2%
Bell Aliant 688 694 (6) (0.9%)
Total BCE operating revenues 5,382 5,161 221 4.3%
EBITDA Q4 2013 Q4 2012 $ CHANGE % CHANGE
Bell Wireline 934 931 3 0.3%
Bell Wireless 529 479 50 10.4%
Bell Media 230 172 58 33.7%
Bell 1,693 1,582 111 7.0%
Bell Aliant 305 314 (9) (2.9%)
Total BCE EBITDA 1,998 1,896 102 5.4%
BCE operating revenues in Q4 2013 were 4.3% higher compared to
Q4 2012, translating into BCE EBITDA growth of 5.4%.
BCE EBITDA increased year-over-year driven by higher EBITDA at
Bell Wireless, Bell Media and Bell Wireline, partly offset by lower
EBITDA at Bell Aliant.
Bell operating revenues in Q4 2013 were 5.2% higher compared to
Q4 2012, driven by steady Bell Wireless revenue growth, positive
Bell Wireline residential services revenue growth as strong TV and
high-speed Internet expansion outpaced declines in traditional voice
services, and Astrals contribution to Bell Media results.
7

S
E
L
E
C
T
E
D

A
N
N
U
A
L

A
N
D

Q
U
A
R
T
E
R
L
Y

I
N
F
O
R
M
A
T
I
O
N
M
D
&
A

Bell EBITDA increased 7.0%, year over year, reecting strong EBITDA
growth of 10.4% at Bell Wireless and 33.7% at Bell Media over the
same period last year. Notably, we generated positive EBITDA
growth of 0.3% at Bell Wireline in Q4 2013 with a 41,000 year-
over-year improvement in total Bell Wireline residential customer
net losses, higher household ARPU, and a reduction in operating
costs. Higher EBITDA across all Bell segments contributed to a
0.6 percentage-point improvement in Bells consolidated EBITDA
margin to 35.2%.
Bell Wireline operating revenues were essentially unchanged
year over year, decreasing 0.3%. Bell Residential Services
delivered revenue growth of 3.1%, reecting accelerated Fibe TV
and related Fibe Internet customer growth, as well as slowing
voice erosion, while the rate of revenue decline at Bell Business
Markets improved year over year. Bell Wireline EBITDA was up
0.3% compared to Q4 2012 with margin improving 0.2 percentage
points to 35.9%, supported by a $10 million year-over-year
reduction in operating costs.
Bell Wireless operating revenues increased 3.2% in Q4 2013 with
service revenues up 3.7%, reecting the positive impact of
postpaid smartphone subscribers acquired in 2013 combined with
blended ARPU growth of 2.1% due to higher data revenues. Bell
Wireless EBITDA grew 10.4%, delivering a 2.4 percentage-point
expansion in EBITDA service margin to 38.9%, which also bene-
ted from a 0.3% reduction in operating costs resulting from
disciplined spending on postpaid subscriber acquisition and
customer retention.
Bell Media operating revenues in Q4 2013 were 38.9% higher,
year over year. The increase reects higher advertising and
subscriber fee revenues from the Astral acquisition, as well
as planned, market-based step-ups in non-Astral specialty TV
rates paid by broadcast distributors for Bell Media content and
programming. Similarly, Bell Medias EBITDA increased 33.7%, year
over year, reecting the ow-through of higher advertising and
subscriber fee revenues, partly offset by higher operating costs.
Bell Aliant operating revenues in Q4 2013 were 0.9% lower compared
to Q4 2012, driven by growth in data and wireless revenues which
was effectively offset by lower local and access and long distance
revenues.
Bell Aliant EBITDA decreased 2.9%, year over year, reecting
increased marketing and sales expenses attributable to aggressive
competitive activity and higher TV content costs resulting from
IPTV customer growth, partially mitigated by savings from ongoing
productivity initiatives and operating efciencies.
Bell capital expenditures totalled $992 million in Q4 2013. Spending
was focused on the ongoing roll-out of Bells 4G LTE mobile network
and the continued deployment of broadband infrastructure, includ-
ing new bre to residential homes, neighbourhoods and businesses
in Ontario and Qubec to support the expansion of Fibe TV.
BCE depreciation of $695 million increased $2 million, year over year,
due to a higher depreciable asset base in 2013 as we continued to
invest in our broadband wireline and wireless networks, and incre-
mental depreciation expense attributable to our acquisition of Astral.
This was partly offset by a net decrease in depreciation expense
due to changes in the estimates of useful lives of certain assets.
BCE amortization was $160 million in Q4 2013, down from $175 million
in Q4 2012 as certain intangible assets became fully amortized,
resulting in a lower asset base in 2013. In addition, amortization
expense decreased due to an increase in the estimates of useful
lives of certain assets.
BCE cash ow from operating activities was $1,838 million in
Q4 2013 compared to $863 million in the previous year, due to
a decrease in contributions to post-employment benet plans
attributable to voluntary DB pension plan contributions in 2012 and
higher EBITDA, partly offset by higher income taxes paid in 2013.
BCE free cash ow in Q4 2013 was $674 million, up 11.4% from
$605 million in Q4 2012, driven by higher EBITDA and an increase
in working capital, offset partly by higher capital expenditures.
BCE net earnings attributable to common shareholders were
$495 million, or $0.64 per share, in Q4 2013 compared to $666 million,
or $0.86 per share, in Q4 2012. The year-over-year decrease in
earnings was due to a non-cash gain recognized in Q4 2012 on
the sale of assets by Inukshuk to its owners. Adjusted net earnings
attributable to common shareholders were $540 million, an increase
of 16.4%, and Adjusted EPS increased 16.7% to $0.70 from $0.60,
mainly as a result of higher EBITDA at Bell.
SEASONALITY CONSIDERATIONS
Some of our segments revenues and expenses vary slightly by
season, which may impact quarter-to-quarter operating results.
Wireline segment revenues tend to be higher in the fourth quarter
because of higher data and equipment product sales to business
customers and higher consumer electronics equipment sales during
the holiday period in December. Home Phone, TV and Internet
subscriber activity is subject to modest seasonal uctuations,
attributable largely to residential moves during the summer months
and the back-to-school period in the third quarter. Targeted
marketing efforts conducted during various times of the year to
coincide with special events or broad-based marketing campaigns
also may have an impact on overall wireline operating results.
Wireless operating results are inuenced by the timing of our
marketing and promotional expenditures and higher levels of
subscriber additions and handset discounts, resulting in higher
subscriber acquisition and activation-related expenses in certain
quarters. In particular, Bell Wireless EBITDA tends to be lower in the
fourth quarter due to higher subscriber acquisition costs associated
with a higher number of new subscriber activations during the
holiday season. Additionally, the third quarter has become more
signicant in terms of wireless subscriber additions in recent years
as a result of back-to-school offers, while subscriber additions have
typically been lowest in the rst quarter.
Bell Media revenues and related expenses from TV and radio
broadcasting are largely derived from the sale of advertising, the
demand for which is affected by prevailing economic conditions,
as well as cyclical and seasonal variations. Seasonal variations
are driven by the strength of TV ratings particularly during the
fall programming season, major sports league seasons and other
special sporting events such as the Olympic Games, NHL playoffs
and World Cup soccer, as well as uctuations in consumer retail
activity during the year.
8

R
E
G
U
L
A
T
O
R
Y

E
N
V
I
R
O
N
M
E
N
T
M
D
&
A

8 REGULATORY ENVIRONMENT
8.1 INTRODUCTION
This section describes certain legislation that governs our busi-
nesses and provides highlights of recent regulatory initiatives and
proceedings, government consultations and government positions
that affect us and that inuence our business and may continue to
affect our exibility to compete in the marketplace. Bell Canada
and Bell Aliant Regional Communications Inc. (Bell Aliant Regional)
and several of their direct and indirect subsidiaries, including Bell
Mobility, Bell ExpressVu Limited Partnership, Bell Aliant Regional
Communications, Limited Partnership (Bell Aliant LP), NorthernTel,
Limited Partnership (NorthernTel), Tlbec, Limited Partnership
(Tlbec) and NorthwesTel, are governed by the Telecommunications
Act, the Broadcasting Act, the Radiocommunication Act and/or the
Bell Canada Act. They are also subject to regulations and policies
enforced by the CRTC. Our business is affected by decisions made
by various regulatory agencies, including the CRTC, an independent
agency of the Government of Canada responsible for regulating
Canadas telecommunications and broadcasting industries. Other
aspects of the businesses of these companies are regulated in
various ways by federal government departments, in particular
Industry Canada.
The CRTC regulates the prices we can charge for telecommuni-
cations services in areas where it determines there is not enough
competition to protect the interests of consumers. The CRTC has
determined that competition was sufcient to grant forbearance
from retail price regulation under the Telecommunications Act for
the vast majority of Bell Canadas residential and business local
telephone service lines in Ontario and Qubec, as well as for our
wireless and Internet services. Under the Broadcasting Act, our TV
distribution business is not subject to retail price regulation.
Although most of our wireline and wireless services are forborne
from price regulation under the Telecommunications Act, the
Government of Canada and its relevant departments and agencies,
including the CRTC, Industry Canada and the Competition Bureau,
continue to play a signicant role in telecommunications policy
and regulatory matters, such as spectrum auctions, approval of
acquisitions, foreign ownership and broadcasting, and this may
adversely affect our competitive position. The federal government
recently signicantly increased its focus on consumer protection,
especially in the wireless sector, and adopted more stringent regu-
lations. This increased focus on consumer protection is evidenced
by the adoption in 2013 of a new mandatory code of conduct
for providers of retail mobile wireless voice and data services
(Wireless Code) by the CRTC, which, as discussed in more detail
in section 8.2, Telecommunications Act Adoption of a National
Wireless Services Consumer Code, could decrease our exibility
in the marketplace. The federal government may take positions
against the telecommunications and media industries in general,
or specically against Bell Canada or certain of its subsidiaries.
Failure to positively inuence changes in any of these areas, or
to meet the required regulatory standards, adverse decisions by
regulatory agencies or increasing regulation, could have negative
nancial, operational, reputational or competitive consequences
for our business.
8.2 TELECOMMUNICATIONS ACT
The Telecommunications Act governs telecommunications in Canada.
It denes the broad objectives of Canadas telecommunications
policy and provides the Government of Canada with the power to
give general direction to the CRTC on any of its policy objectives.
It applies to several of the BCE group companies and partnerships,
including Bell Canada, Bell Mobility, Bell Aliant LP, NorthernTel,
Tlbec and Northwestel.
Under the Telecommunications Act, all facilities-based telecommuni-
cations service providers in Canada, known as telecommunications
common carriers (TCCs), must seek regulatory approval for all
proposed tariffs for telecommunications services, unless the services
are exempt from regulation or forborne from regulation. The CRTC
may exempt an entire class of carriers from regulation under the
Telecommunications Act if the exemption meets the objectives of
Canadas telecommunications policy. A few large TCCs, including
the BCE group TCCs, must also meet certain Canadian ownership
requirements. BCE monitors and periodically reports on the level
of non-Canadian ownership of its common shares.
8
8

R
E
G
U
L
A
T
O
R
Y

E
N
V
I
R
O
N
M
E
N
T
M
D
&
A

PROCEEDINGS REGARDING WHOLESALE DOMESTIC WIRELESS SERVICES
On December 18, 2013, the Minister of Industry announced the
federal governments intention to amend the Telecommunications
Act to place an interim cap on the rates charged by Canadian
wireless carriers for wholesale domestic roaming. The interim rate
cap would apply until such time as the CRTC determines what, if any,
regulatory measures should apply to wholesale domestic roaming.
The CRTC is currently running a proceeding with respect to wireless
roaming and a decision is expected by June 2014.
On February 20, 2014, the CRTC initiated a regulatory proceeding
to determine whether the wholesale mobile wireless services
market is sufciently competitive. This proceeding will specically
examine: the market conditions for wholesale roaming, wholesale
tower and site sharing and other wholesale mobile wireless
services; the impact that the wholesale mobile wireless services
market has on the development of the retail services market and
on sustainable competition in that market; and whether greater
regulatory oversight, including mandating access to any existing
or potential wholesale mobile wireless service, would be appropriate.
Greater regulation of wholesale mobile wireless services could limit
Bells marketing exibility, improve the business position of Bells
competitors and negatively impact the nancial performance
of Bells mobile wireless business. This CRTC proceeding will conclude
in the fourth quarter of 2014 and a CRTC decision is expected
in early 2015. The nancial impact of these initiatives is not possible
to assess at this time.
CRTC AND INDUSTRY CANADA ADMINISTRATIVE MONETARY PENALTIES
On December 18, 2013, the Minister of Industry announced the federal
governments intention to amend both the Telecommunications Act
and the Radiocommunication Act to provide the CRTC and Industry
Canada with the authority to impose administrative monetary
penalties on companies that violate established rules. No further
details have been announced. However, the amendments are
expected to be implemented in early 2014. The nancial impact
associated with the amendments is unclear at this time.
WHOLESALE SERVICES FRAMEWORK REVIEW
On October 15, 2013, the CRTC initiated a review of wholesale
telecommunications services and associated policies. This com-
prehensive review, which will run until the end of 2014, will notably
examine whether currently mandated wholesale services should be
forborne, whether currently forborne wholesale services should be
re-regulated and whether additional wholesale high-speed access
services should be mandated, including over bre-to-the-premises
facilities. The CRTC has specically excluded from this review any
consideration of wireless wholesale services. Modications to the
regulatory regime applicable to our wholesale telecommunica-
tions services could have signicant impacts on our wholesale
telecommunications business and potentially, by extension, in
certain retail markets.
ADOPTION OF A NATIONAL WIRELESS SERVICES CONSUMER CODE
On June 3, 2013, the CRTC issued Telecom Regulatory Policy CRTC
2013-271, which established the Wireless Code. The Wireless Code
applies to all wireless services provided to individual and small
business consumers (e.g. businesses that on average spend less
than $2,500 per month on telecom services) in all provinces and
territories. Where the Wireless Code is in direct conict with a valid
provincial law, the Wireless Code takes precedence.
The Wireless Code establishes regulations related to unlocking
mobile phones, calculating early cancellation fees, and setting
default caps for data roaming charges and data overage charges,
among other measures. The Wireless Code also stipulates that
wireless service providers may not charge an early cancellation
fee after a customer has been under contract for 24 months,
which reduces the incentive for wireless service providers to offer
contracts with longer terms. Implementation of the Wireless Code
could lead to signicant changes in consumer wireless market
dynamics, including higher industry churn due to the discontinuance
of three-year contracts and their replacement with two-year
contracts. In addition, to the extent that higher costs due to a shorter
contract term are not passed on to consumers, the Wireless Code
could lead to higher costs for Bell. All of these factors could have
an adverse impact on our nancial results.
Where an obligation in the Wireless Code relates to a specic
contractual relationship between a wireless service provider and
a customer, the Wireless Code applies if the contract was entered
into, amended, renewed or extended on or after December 2, 2013.
The Wireless Code will apply to and modify all contracts, no matter
when they were entered into, on June 3, 2015. As a result, all three-
year contracts entered into on or after June 4, 2012, and before
December 1, 2013, will retroactively become subject to the Wireless
Code on June 3, 2015, despite having been entered into before
the Wireless Code came into effect. On July 3, 2013, Bell Mobility,
together with Rogers, TELUS, Saskatchewan Telecommunications
Holding Corporation and MTS, led an application with the Federal
Court of Appeal seeking leave to appeal this retroactive application
of the Wireless Code. The Federal Court of Appeal granted leave to
appeal on September 24, 2013. If the appeal is successful, consumer
contracts entered into before December 1, 2013 would remain
exempt from the Wireless Codes application and would be permitted
to run to their contracted 3-year end dates.
8

R
E
G
U
L
A
T
O
R
Y

E
N
V
I
R
O
N
M
E
N
T
M
D
&
A

CANADAS TELECOMMUNICATIONS FOREIGN OWNERSHIP RULES
Under the Telecommunications Act, there are no foreign investment
restrictions applicable to TCCs that have less than a 10% share of
the total Canadian telecommunications market as measured by
annual revenues. However, foreign investment in telecommuni-
cations companies can still be refused by the government under
the Investment Canada Act. The absence of foreign ownership
restrictions on such TCCs could result in more foreign companies
entering the Canadian market, including by acquiring spectrum
licences or Canadian TCCs. Under the Broadcasting Act, foreign
ownership restrictions are applicable to broadcasters, such as
licensed cable and satellite TV service providers, or programming
licensees, such as Bell Media.
8.3 BROADCASTING ACT
The Broadcasting Act denes the broad objectives of Canadas
broadcasting policy and assigns the regulation and supervision
of the broadcasting system to the CRTC. Key policy objectives of
the Broadcasting Act are to protect and strengthen the cultural,
political, social and economic fabric of Canada and to encourage
the development of Canadian expression.
Most broadcasting activities require a broadcasting licence or
broadcasting distribution licence from the CRTC. The CRTC may
exempt broadcasting undertakings from complying with certain
licensing and regulatory requirements if the CRTC is satised that
not complying with those requirements will not materially affect
the implementation of Canadian broadcasting policy. A corporation
must also meet certain Canadian ownership requirements to
obtain a broadcasting or broadcasting distribution licence and
corporations must have the CRTCs approval before they can transfer
effective control of a broadcasting licensee.
The TV distribution business of our Bell TV business unit (Bell TV)
and Bell Medias TV and radio broadcasting operations are subject
to the requirements of the Broadcasting Act, the policies and
decisions of the CRTC and their respective broadcasting licences.
Any changes in the Broadcasting Act, amendments to regulations
or the adoption of new ones, or amendments to licences, could
negatively affect Bell TVs or Bell Medias competitive positions or
the cost of providing services.
CRTC CONSULTATION ON THE FUTURE OF CANADAS TV SYSTEM
On October 16, 2013, the federal government announced its intention
to require the unbundling of TV channels to allow Canadian
families to be able to choose the combination of TV channels to
which they want to subscribe, while protecting Canadian jobs. This
announcement was followed by the launch, on October 24, 2013,
of a CRTC consultation inviting Canadian consumers to provide
their input on the future of Canadas TV system. As part of this
consultation, the CRTC inquired whether consumers are satised
with Canadian TV programming content, how their channels are
packaged and other related matters. On February 18, 2014, the CRTC
launched Phase 2 of this public consultation with the Choicebook,
an interactive survey that poses a series of questions on topics such
as basic service, local news, pick-and-pay, sports, U.S. programming,
signal substitution and online programming. Comments are due
March 14, 2014.
In conjunction with this consultation, the federal government,
pursuant to section 15 of the Broadcasting Act, issued an order-
in-council mandating the CRTC to report on how the ability of
Canadian consumers to subscribe to pay and specialty TV services
on a service-by-service basis can be maximized in a manner that
most appropriately furthers the implementation of the broadcasting
policy for Canada. The CRTCs report to this order-in-council is due
no later than April 30, 2014.
Regulatory changes resulting from this consultation and order-
in-council report could have an adverse impact on Bell TVs and
Bell Medias businesses and nancial results, the extent of which is
unclear at this time. The CRTC has indicated that this consultation
will lead to a public hearing in September 2014. It is unlikely that
a decision on the new regulatory environment for TV will be released
prior to the end of 2014.
8

R
E
G
U
L
A
T
O
R
Y

E
N
V
I
R
O
N
M
E
N
T
M
D
&
A

8.4 RADIOCOMMUNICATION ACT
Industry Canada regulates the use of radio spectrum by Bell
Canada, Bell Mobility and other wireless service providers under
the Radiocommunication Act. Under the Radiocommunication
Act, Industry Canada ensures that radiocommunication
in Canada is developed and operated efciently. Under the
Radiocommunication Regulations, companies that are eligible for
radio licences, such as Bell Canada and Bell Mobility, must meet
the same ownership requirements that apply to companies under
the Telecommunications Act.
Companies must have a spectrum licence to operate a wireless
system in Canada. While we anticipate that the licences under
which we provide wireless services will be renewed at term, there
is no assurance that this will happen, or of the terms under which
renewal will be granted. Industry Canada can revoke a companys
licence at any time if the company does not comply with the licences
conditions. While we believe that we comply with the conditions of
our licences, there is no assurance that Industry Canada will agree.
Should there be a disagreement, this could have a negative effect
on our business and nancial performance.
700 MHz SPECTRUM AUCTION
The auction for licensing 700 MHz spectrum began on January 14, 2014.
As part of this auction, Industry Canada implemented spectrum
caps such that Bell Mobility, and the other large Canadian wireless
incumbents, were individually limited to obtaining one paired
spectrum block from the four most desirable 700 MHz blocks
available (i.e. blocks B, C, C1 and C2). Bidders not classied as large
wireless providers (such as small domestic wireless providers)
were not limited to obtaining only one paired spectrum block, but
rather were allowed to obtain two paired spectrum blocks from
the four most desirable 700 MHz blocks available. On February 19,
2014, Industry Canada announced the provisional licence winners.
Bell Mobility was one of 8 licence winners and was able to secure
spectrum licences in every provincial and territorial market at a
price in line with nancial community expectations.
LICENSING FRAMEWORK FOR BROADBAND RADIO SERVICES (BRS) 2500 MHz
On January 10, 2014, Industry Canada announced its framework for
the licensing of 2500 MHz spectrum, which sets out the rules and
procedures for participation in the 2500 MHz auction, scheduled
to begin on April 14, 2015. The framework includes details related to
the auction format and rules, the application process and timelines,
and the conditions of licence that will apply to licences issued
following the auction process, as well as to existing BRS spectrum
licences. The auctioned licences will be issued for 20-year terms,
with a 10-year build-out requirement. In aggregate, 61 service areas
and 318 individual licences across the country will be auctioned.
A spectrum aggregation limit of 40 MHz will apply in each individual
service area, except for the Northwest Territories, Yukon and
Nunavut, where no such limit will apply. A 5-year moratorium will
further apply to sales of 2500 MHz spectrum to an entity that
exceeds or would exceed the aggregation limit.
To the extent that Bell Mobility, or any other qualied bidder, wishes
to acquire 2500 MHz spectrum in areas where it currently is at
or over the aggregation limit, it would need to return sufcient
spectrum to Industry Canada or apply to transfer it to a third party
such that it is below the aggregation limit before the start of the
auction. Our ability to acquire our preferred spectrum blocks in
this auction may be affected by the auction strategies of other
participants and the extent to which foreign entities participate
in the auction process.
SPECTRUM LICENCE TRANSFERS
On June 28, 2013, Industry Canada released a decision revising its
policy regarding spectrum licence transfers. This decision signi-
cantly increases the number of criteria, many of which are highly
subjective, that Industry Canada may consider when determining
whether to approve or deny such transfers. In addition to subjecting
all licence transfers and licence subordination arrangements to
these new rules, the decision also requires that prospective and
option arrangements, (i.e. those designed to transfer spectrum
at a future date), would also have to be submitted for review
within 15 days of entering into such a business arrangement.
Such arrangements would have to be withdrawn within 90 days if
Industry Canada denies the proposed transfer. Industry Canada
had previously noted that the new licence transfer framework is one
of several initiatives the government is taking to promote at least
four wireless competitors in each region of the country. In a related
initiative, on June 4, 2013, the Minister of Industry announced that the
government had blocked a proposal by TELUS to acquire all of the
issued and outstanding shares of advanced wireless services (AWS)
entrant DAVE (carrying on business under the Mobilicity brand).
The Minister stated the government will not waive the condition of
licence applicable to 2008 set-aside spectrum reserved solely
for new entrants in the 2008 AWS spectrum auction restricting the
transfer of such spectrum to incumbent carriers before the 5-year
moratorium period has run its course.
8

R
E
G
U
L
A
T
O
R
Y

E
N
V
I
R
O
N
M
E
N
T
M
D
&
A

MANDATORY ROAMING AND TOWER SHARING
On March 7, 2013, Industry Canada announced amendments to the
conditions of licence governing mandatory roaming and tower
sharing. These changes effectively expand the scope of mandated
roaming and tower sharing rights and could increase the number
of wireless operators seeking mandated roaming on our wireless
networks. All of these changes are intended to facilitate the quicker
execution of roaming and tower-sharing agreements and the
resolution of disputes, to the extent they occur.
8.5 BELL CANADA ACT
Under the Bell Canada Act, the CRTC must approve any sale or other disposal of Bell Canada voting shares that are held by BCE, unless
the sale or disposal would result in BCE retaining at least 80% of all of the issued and outstanding voting shares of Bell Canada. Except
in the ordinary course of business, the sale or other disposal of facilities integral to Bell Canadas telecommunications activities must also
receive CRTC approval.
8.6 OTHER KEY LEGISLATION
CANADA ANTI-SPAM LEGISLATION
Federal legislation referred to as the Canada Anti-Spam Legislation
(CASL) received royal assent on December 15, 2010 and will come
into force on July 1, 2014. The CASL requires that commercial
electronic messages be sent only if the recipient has provided prior
consent and the message complies with certain formalities, including
the ability to unsubscribe easily from subsequent messages. The
CASL also requires that an organization have prior informed consent
before downloading software to an end-users computer. Penalties
for non-compliance include administrative monetary penalties of
up to $10 million and a private right of action. Because the CASL
creates deemed consent for commercial electronic messages where
there is an existing business relationship, the effect of the CASL on
the ability of the various BCE group companies to send messages
to their existing customers is limited. However, the law in its current
form may impose additional costs and processes with respect to
communicating with existing and prospective customers and may
limit cross-selling opportunities for afliated companies, depending
on whether the appropriate consents have been obtained. Further
interpretive guidance is anticipated from the CRTC and Industry
Canada, which will determine the full extent to which the CASL will
impact our business.
9

B
U
S
I
N
E
S
S

R
I
S
K
S
M
D
&
A

9 BUSINESS RISKS
A risk is the possibility that an event might happen in the future that could have a negative effect on our nancial position, nancial
performance, cash ows, business or reputation. The actual effect of any event could be materially different from what we currently
anticipate. The risks described in this MD&A are not the only ones that could affect us. Additional risks and uncertainties not currently known
to us or that we currently deem to be immaterial may also materially and adversely affect our nancial position, nancial performance,
cash ows, business or reputation.
This section describes the principal business risks that could have a material adverse effect on our nancial position, nancial performance,
cash ows, business or reputation, and cause actual results or events to differ materially from our expectations expressed in or implied
by our forward-looking statements. As indicated in the table below, certain of such principal business risks have already been discussed
in other sections of this MD&A and we refer the reader to those sections for a discussion of such risks. All of the risk discussions set out in
the sections referred to in the table below are incorporated by reference in this section 9.
RISKS DISCUSSED IN OTHER SECTIONS
OF THIS MD&A
SECTION REFERENCES
Competitive Environment Section 3.3, Principal Business Risks
Section 5, Business Segment Analysis
(Competitive Landscape and Industry Trends section
for each segment)
Regulatory Environment Section 3.3, Principal Business Risks
Section 8, Regulatory Environment
Economic and Financial Market Conditions Section 3.3, Principal Business Risks
Complexity and Service and Operational Effectiveness Section 3.3, Principal Business Risks
Strategic Network Evolution Section 3.3, Principal Business Risks
Risks Specically Relating to our Bell Wireless, Bell Wireline,
Bell Media and Bell Aliant segments
Section 5, Business Segment Analysis
(Principal Business Risks section for each segment)
The other principal business risks that also could have a material adverse effect on our nancial position, nancial performance, cash ows,
business or reputation are discussed below.
NETWORK CAPACITY PRESSURES
If we fail to maintain network operating performance, in the context
of increasing customer demand, this could have an adverse effect
on our reputation, business and nancial performance.
The demand for TV and other bandwidth-intensive applications on
the Internet, as well as the volume of wireless data-driven trafc,
have been growing at unprecedented rates. It is expected that
growth in such demand and trafc will further accelerate, especially,
in the case of wireless data-driven trafc, due to the increasing
adoption of smartphones and other mobile devices such as tablets.
Such rapid growth could drive capacity pressures on our Internet
and wireless networks and result in network performance issues.
Consequently, we may need to incur signicant capital expenditures
beyond those expenditures already anticipated by our subscriber
and trafc planning forecasts in order to provide additional capacity
and reduce network congestion on our Internet and wireless
networks. In addition, we may not be able to scale our networks in
a timely manner in order to handle growth in demand for TV and
other bandwidth-intensive applications on the Internet or in the
volume of wireless data-driven trafc. There is also a risk that our
efforts to optimize network performance, in the face of increasing
demand, through paced bre and equipment deployment, trafc
management and rate plan changes, could be unsuccessful or
generate adverse publicity, potentially resulting in an increase in
our subscriber churn rate beyond our current expectations, and
thereby compromising our efforts to attract new customers. All of
these risks could have an adverse effect on our reputation, business
and nancial performance.
9
9

B
U
S
I
N
E
S
S

R
I
S
K
S
M
D
&
A

TECHNOLOGICAL CHANGE
We need to anticipate technological change and invest in or
develop new technologies, products and services that will gain
market acceptance.
We operate in markets that are affected by constant techno-
logical change, evolving industry standards, changing customer
needs, frequent introductions of new products and services, and
short product life cycles. Rapidly evolving technology brings
new competitive threats, as well as new service opportunities,
on an almost continuous basis. Investment in our networks and
in new technologies, products and services, as well as our ability to
launch, on a timely basis, technologies, products and services that
will gain market acceptance, are critical to increasing the number
of our subscribers and achieving our nancial objectives. Failure to
understand new technologies, to evolve in the appropriate direction
in an environment of changing business models, or to optimize
network deployment timelines considering customer demand and
competitor activities, could have an adverse impact on our business
and nancial results.
We may face additional risks as we develop new products, services
and technologies, and update our networks to stay competitive.
New technologies, for example, may quickly become obsolete or
may require more capital than initially expected. Development
could be delayed for reasons beyond our control, and substantial
investments usually need to be made before new technologies
prove to be commercially viable. There is also a risk that current
regulations could be expanded to apply to new technologies, which
could delay our launch of new services. New products or services
that use new or evolving technologies could reduce demand for our
existing offerings or cause prices for those services to decline, and
could result in shorter estimated useful lives for existing technologies,
which could increase depreciation and amortization expense.
We have incurred signicant capital expenditures in order to deploy
next-generation bre networks and offer higher Internet speeds.
If we fail to make continued investments in our Internet networks
that enable us to offer Internet services at increasingly higher
speeds, and to offer a different range of products and services
than our competitors, this could adversely affect our ability
to compete, the pricing of our products and services, and our
nancial results. In particular, the introduction of mandated
wholesale services over FTTH or of a more burdensome wholesale
regime on FTTN by the CRTC may undermine our incentives
to invest in next-generation networks.
INFORMATION TECHNOLOGY
The failure to implement or maintain effective IT systems on a timely
basis, and the complexity and costs of our IT environment, could
have an adverse effect on our business and nancial performance.
We currently use a very large number of interconnected operational
and business support systems that are relevant to most aspects
of our operations, including provisioning, networking, distribution,
show production, billing and accounting. We also have various IT
system and process change initiatives that are in progress or are
proposed to be implemented. The development and launch of a new
service typically requires signicant systems development and
integration. The associated developmental and ongoing operational
costs are a signicant factor in maintaining a competitive position
and prot margins. As next-generation services are introduced, they
should be designed to work with both legacy and next-generation
support systems, which introduces uncertainty with respect to the
cost and effectiveness of solutions and the evolution of systems.
There can be no assurance that any of our proposed IT systems
or process change initiatives will be implemented successfully,
that they will be implemented in accordance with anticipated
timelines, or that sufciently skilled personnel will be available
to complete such initiatives. If we fail to implement and maintain
effective IT systems on a timely basis, fail to create and maintain
an effective governance and operating framework to support the
management of a largely outsourced staff, or fail to understand and
streamline our signicant number of legacy systems and proactively
meet constantly evolving business requirements, this could have
an adverse effect on our business and nancial performance.
In addition, any of the events referred to under Performance of
Critical Infrastructure in this section 9, including, in particular, cyber
attacks, sabotage, unauthorized access, re and natural disasters,
could cause damage to our IT systems and have an adverse effect
on our business and nancial performance.
INFORMATION SECURITY, PRIVACY AND RECORDS MANAGEMENT
Our operations and reputation depend on how well we protect
business and personal data.
Our operations and reputation depend on how well we protect our
data centres and electronic and physical records, and the business
and personal information stored therein, against unauthorized
access or entry, cyber attacks (such as, but not limited to, hacking,
computer viruses, denial of service attacks, industrial espionage,
unauthorized access to condential, proprietary or sensitive
information or other breaches of network or IT security), damage
from re, natural disaster and other events referred to under
Performance of Critical Infrastructure in this section 9. The protection
and the effective organization of our systems, applications and
information repositories are central to the secure operation of
our networks and business as electronic and physical records
of proprietary business and personal data, such as condential
customer and employee information, are all sensitive from a market
and privacy perspective. Any vulnerabilities could lead to system
operating failure or information theft, loss or leakage that could
result in nancial loss and difculty in accessing materials to defend
legal cases. The theft or loss of condential customer or employee
information could harm our brand and reputation as well as our
customer relationships, and lead to the loss of subscribers, impair
our ability to attract new ones, or expose us to claims of damages
by customers and employees.
9

B
U
S
I
N
E
S
S

R
I
S
K
S
M
D
&
A

HUMAN RESOURCES
Our business depends on the performance of, and our ability to
retain, our employees.
Our business depends on the efforts, engagement and expertise
of our employees and, in particular, of our senior executives and
other key employees. Competition for highly skilled management and
customer service employees is intense in our industry. In addition,
the increasing technical complexity of our businesses creates
a challenging environment for hiring, retaining and developing
skilled technical resources. If we fail to appropriately train, motivate,
remunerate and deploy employees on initiatives that further our
strategic imperatives, and efciently replace retiring employees, this
could have an adverse impact on our ability to attract and retain
talent and drive performance across the organization.
Our senior executives and other key employees are important
to our success because they have been instrumental in setting our
strategic direction, operating our business, identifying, recruiting
and training key personnel, and identifying business opportunities.
The loss of one or more of these key individuals could impair
our business until qualied replacements are found. There can
be no assurance that these individuals could be replaced quickly
with persons of equal experience and capabilities. Although we
have compensation programs in place designed to help retain
and motivate these individuals, we cannot prevent them from
terminating their employment with us.
Finally, deterioration in employee morale and engagement resulting
from staff reductions, reorganizations and ongoing cost reductions
could also adversely affect our business and nancial results.
Renegotiating collective bargaining agreements could result in
higher labour costs and work disruptions.
Approximately 44% of our employees are represented by unions and
are covered by collective bargaining agreements. Renegotiating
collective bargaining agreements could result in higher labour costs,
project delays and work disruptions, including work stoppages or
work slowdowns. There can be no assurance that should a strike
or work disruption occur, it would not adversely affect service
to our customers and, in turn, our customer relationships and
nancial performance. In addition, work disruptions, including
work slowdowns or work stoppages due to strikes, experienced by
our third-party suppliers and other telecommunications carriers
to whose networks ours are connected, could harm our business,
including our customer relationships and nancial performance.
STRATEGY EXECUTION
Should we fail to achieve any of our strategic imperatives, this
could have an adverse effect on our future growth, business and
nancial results.
We continue to pursue our goal to be recognized by customers
as Canadas leading communications company through focused
execution of our six strategic imperatives. Executing on our strategic
imperatives requires shifts in employee skills and capital invest-
ments to implement our strategies and operating priorities. If our
management, processes or employees are not able to adapt to these
changes or if required capital is not available on favourable terms,
we may fail to achieve certain or all of our strategic imperatives,
which could have an adverse effect on our business, nancial
performance and growth prospects. In particular, our strategies
require us to continue to transform our cost structure. Our objectives
for targeted cost reductions continue to be aggressive but there is
no assurance that we will be successful in reducing costs, especially
since incremental cost savings are more difcult to achieve on an
ongoing basis. Our cost reduction objectives require aggressive
negotiations with our key suppliers and there can be no assurance
that such negotiations will be successful or that replacement
products or services provided will not lead to operational issues.
The inability to continue to reduce costs could, in particular, have
an adverse effect on our Wireline segments protability.
CHANGE MANAGEMENT AND INTEGRATION
Ineffective change management and the failure to successfully
integrate assets could adversely affect our business and our ability
to achieve our strategic imperatives.
Corporate restructurings, system replacements and upgrades,
process redesigns and the integration of business acquisitions and
existing business units must be managed carefully to ensure that we
capture the intended benets of such changes. Ineffective change
management may adversely affect our business and negatively
impact the achievement of our strategic imperatives. There can be
no assurance that planned efciency initiatives will be completed or
that such initiatives, once implemented, will provide the expected
benets or will not have a negative impact on our operations,
nancial performance, employee engagement or customer service.
Achieving the anticipated benets from the integration of busi-
ness acquisitions and existing business units depends in part on
successfully integrating operations, procedures and personnel in a
timely and efcient manner, as well as on our ability to realize the
anticipated growth opportunities and synergies from combining
the businesses and operations. Integration requires the dedication
of substantial management effort, time and resources which may
divert managements focus from other strategic opportunities and
operational matters during this process. The integration process
may lead to greater-than-expected operational challenges and
costs, expenses, customer loss and business disruption for us
and, consequently, the failure to realize, in whole or in part, the
anticipated benets.
9

B
U
S
I
N
E
S
S

R
I
S
K
S
M
D
&
A

POST-EMPLOYMENT BENEFIT OBLIGATIONS
The economic environment, pension rules and ineffective governance
could have an adverse effect on our pension obligations, liquidity and
nancial performance.
With membership in our pension plans of over 50,000 employees,
signicant DB plans that are subject to the pressures of the global
economic environment, coupled with changing regulatory and
reporting requirements, our pension obligations are exposed to
potential volatility. Failure to understand economic exposure,
pension rule changes and ensure that effective governance is
in place for management and funding of the pension assets and
obligations, could have an adverse impact on our liquidity and
We may be required to increase contributions to our post-
employment benet plans in the future.
The funding requirements of our post-employment benet plans,
based on valuations of plan assets and obligations, depend on a
number of factors, including actual returns on post-employment
benet plan assets, long-term interest rates, plan demographics,
and applicable regulations and actuarial standards. Changes in
these factors could cause future contributions to signicantly
differ from our current estimates and could require us to increase
contributions to our post-employment benet plans in the future
and, therefore, could have a negative effect on our liquidity and
There is no assurance that the assets of our post-employment
benet plans will earn their assumed rate of return. A substantial
portion of our post-employment benet plans assets is invested
in public equity and debt securities. As a result, the ability of our
post-employment benet plans assets to earn the rate of return
that we have assumed signicantly depends on the performance
of capital markets. Market conditions also impact the discount rate
used to calculate our solvency obligations and, therefore, could also
signicantly affect our cash funding requirements.
Our expected funding for 2014 is in accordance with the latest
post-employment benet plans valuations as of December 31, 2012,
led in June 2013, and takes into account voluntary contributions at
Bell of $500 million in 2009 and $750 million in each of 2010, 2011
and 2012.
VENDOR, SUPPLY CHAIN AND CONTRACT MANAGEMENT
We depend on key third-party suppliers to provide products and
services that we need to operate our business.
We depend on key third-party suppliers over which we have no
operational or nancial control for certain products and services that
are critical to our operations. These critical products and services
may be available from only a limited number of suppliers, some of
which dominate their global market. Access to such key products
and services, allowing us to meet customer demand, is critical
to our ability to retain existing customers and acquire new ones.
If, at any time, suppliers cannot provide us with products or
services that are critical to our customer offerings including, without
limitation, billing, IT support and customer contact centre services, as
well as telecommunications equipment, software and maintenance
services that comply with evolving telecommunications standards
and are compatible with our equipment, IT systems and software,
our business and nancial performance could be adversely affected.
In addition, if we are unable to obtain products or services that are
essential to our operations on a timely basis and at an acceptable
cost, or if telecommunications equipment and other products, such
as handsets, that we sell or otherwise provide to customers, or the
telecommunications equipment and other products that we use to
provide services, have manufacturing defects, our ability to offer
our products and services and to roll out our advanced services,
and the quality of our services and networks, may be negatively
impacted. In addition, network deployment and expansion could
be impeded, and our business, strategy and nancial performance
could be adversely affected.
Various factors may affect our suppliers ability to provide us with
critical products and services.
The business and operations of our suppliers and their ability to
continue to provide us with products and services could be adversely
affected by various factors including, without limitation, natural dis-
asters (including seismic events and severe weather-related events
such as ice, snow or wind storms, ooding, hurricanes, tornadoes
and tsunamis), general economic and nancial market conditions,
the intensity of competitive activity, labour disruptions, litigation,
the availability of and access to capital, bankruptcy or other
insolvency proceedings, changes in technological standards and
other events referred to under Performance of Critical Infrastructure
in this section 9.
Our networks are connected with the networks of other telecom-
munications carriers and suppliers, and we rely on them to deliver
some of our services. Temporary or permanent operational failures
or service interruptions by these carriers and suppliers due to
technical difculties, strikes or other work disruptions, bankruptcies
or other insolvency proceedings, or other events including, but not
limited to, those referred to in the paragraph above, could have an
adverse effect on our networks, services, business and nancial
performance.
9

B
U
S
I
N
E
S
S

R
I
S
K
S
M
D
&
A

PERFORMANCE OF CRITICAL INFRASTRUCTURE
Our operations and business continuity depend on how well
we protect, test, maintain and replace our networks, equipment
and other facilities.
It is imperative that our critical infrastructure and facilities be
designed to provide a consistent and reliable environment to operate
network and IT infrastructure and house employees. Accordingly, our
operations depend on how well we protect our networks, as well as
other infrastructure and facilities, against damage from re, natural
disaster (including seismic and severe weather-related events such
as ice, snow and wind storms, ooding, hurricanes, tornadoes and
tsunamis), power loss, building cooling loss, unauthorized access or
entry, cyber attacks (such as, but not limited to, hacking, computer
viruses, denial of service attacks, industrial espionage, or breaches
of network or IT security), disabling devices, acts of war or terrorism,
sabotage, vandalism, actions of neighbours and other events. Global
climate change could exacerbate certain of these threats, including
the frequency and severity of weather-related events. Any of the
above-mentioned events, as well as the failure to complete the
planned testing, maintenance or replacement of our networks,
equipment and other facilities due to factors beyond our control,
could disrupt our operations (including through disruptions such
as network failures, billing errors or delays in customer service),
require signicant resources and result in signicant remediation
costs, which in turn could have an adverse effect on our business
and nancial performance or impair our ability to keep existing,
or attract new, subscribers.
Satellites used by Bell TV are subject to signicant operational
risks that could have an adverse effect on Bell TVs business and
Pursuant to a set of commercial arrangements between Bell TV and
Telesat Canada (Telesat), Bell TV currently has two satellites under
contract with Telesat. Telesat operates or directs the operation
of these satellites. Satellites utilize highly complex technology
and operate in the harsh environment of space and are therefore
subject to signicant operational risks while in orbit. These risks
include in-orbit equipment failures, malfunctions and other prob-
lems commonly referred to as anomalies that could reduce the
commercial usefulness of a satellite used by Bell TV. Acts of war or
terrorism, magnetic, electrostatic or solar storms, and space debris
or meteoroids could also damage the satellites used by Bell TV. Any
loss, failure, manufacturing defect, damage or destruction of these
satellites, of Bell TVs terrestrial broadcasting infrastructure or of
Telesats tracking, telemetry and control facilities to operate the
satellites could have an adverse effect on Bell TVs business and
nancial performance and could result in customers terminating
their subscriptions to Bell TVs DTH satellite TV service.
LITIGATION AND OTHER LEGAL MATTERS
Legal proceedings and, in particular, class actions could have an
adverse effect on our business and nancial performance.
We become involved in various legal proceedings as part of our
business. Plaintiffs within Canada are able to launch and obtain
certication of class actions on behalf of a large group of people
with increasing ease. Pending or future litigation, including an
increase in certied class actions which, by their nature, could result
in sizeable damage awards and costs relating to litigation, could
For a description of the principal legal proceedings involving us,
please see the section Legal Proceedings contained in BCE Inc.s
Annual Information Form for the year ended December 31, 2013
dated March 6, 2014.
Changes in applicable laws could have an adverse effect on our
business and nancial performance.
Changes in laws or regulations or in how they are interpreted, and
the adoption of new laws or regulations, could negatively affect us.
In particular, the adoption by the federal and provincial governments,
or agencies thereof, of increasingly stringent consumer protection
laws, and the regulations, rules or policies thereunder, could have
an adverse effect on our business and nancial results, including
as a result of an increase in the number of class actions against us.
In addition, amendments to Canadian securities laws in various
provinces have introduced statutory civil liability for misrepre-
sentations in continuous disclosure. These amendments have
facilitated the introduction in Canada of class action lawsuits by
secondary market investors against public companies for alleged
misrepresentations in public disclosure documents and oral
statements. Signicant damages could be awarded by courts in
these types of actions should they be successful. Such awards of
damages and costs relating to litigation could adversely affect our
FINANCIAL AND CAPITAL MANAGEMENT
If we are unable to raise the capital we need and generate sufcient
cash ows from operations, we may need to limit our capital
expenditures or our investments in new businesses, or try to raise
capital by disposing of assets.
Our ability to meet our cash requirements and provide for planned
growth depends on us having access to adequate sources of capital
and on our ability to generate cash ows from operations, which is
subject to competitive, regulatory, economic, nancial, technological
and other risk factors described in this MD&A, most of which are
not within our control.
Our ability to raise nancing depends on our ability to access the
public equity and debt capital markets, as well as the bank credit
market. Our ability to access such markets and the cost and amount
of funding available depend largely on prevailing market conditions
and the outlook for our business and credit ratings at the time capital
is raised. Risk factors such as capital market disruptions, sovereign
credit concerns in Europe, scal and public indebtedness issues in
the United States, central bank monetary policies, increased bank
capitalization regulations, reduced bank lending in general or fewer
banks as a result of reduced activity or consolidation, could reduce
capital available or increase the cost of such capital. In addition,
9

B
U
S
I
N
E
S
S

R
I
S
K
S
M
D
&
A

an increased level of debt borrowings could result in lower credit
ratings, increased borrowing costs and a reduction in the amount
of funding available to us, including through equity offerings.
Business acquisitions could also adversely affect our outlook and
credit ratings and have similar adverse consequences. In addition,
participants in the public capital and bank credit markets have
internal policies limiting their ability to invest in, or extend credit
to, any single entity or entity group or to a particular industry.
Our bank credit facilities, including credit facilities supporting our
commercial paper programs, are provided by various nancial
institutions. While it is our intention to renew such credit facilities
from time to time, there are no assurances that these facilities will
be renewed on favourable terms or in similar amounts.
If we cannot access the capital we need or generate cash ows
to implement our business plan or meet our nancial obligations
on acceptable terms, we may have to limit our ongoing capital
expenditures, limit our investment in new businesses, or try to
raise additional capital by selling or otherwise disposing of assets.
Any of these could have an adverse effect on our cash ows from
operations and on our growth prospects.
We are exposed to various credit, liquidity and market risks.
Our exposure to credit, liquidity and market risks, including equity
price, interest rate and currency uctuations, is discussed in Note 23
of BCEs audited consolidated nancial statements for the year
ended December 31, 2013.
Our failure to identify and manage our exposure to changes in
interest rates, foreign exchange rates, BCEs share price and other
market conditions could lead to missed opportunities, cash ow
shortages, reputational damage, stock and debenture devaluations
and challenges in raising capital on market competitive terms.
DISCONTINUANCE OF LEGACY SERVICES
We may not be able to discontinue certain services as necessary
to improve capital and operating efciencies.
Legacy circuit-based infrastructures are difcult and expensive
to operate and maintain. We continue to migrate voice and data
trafc from our legacy circuit-based infrastructures to newer
and more efcient IP and packet-based infrastructures. As part of
this transformation, we are also planning to discontinue certain
services that depend on circuit-based infrastructure and for
which there is now very low customer demand. This is necessary
to improve capital and operating efciencies. In some cases,
this discontinuation could be delayed or prevented by customer
complaints or regulatory actions. If we cannot discontinue these
services and have to maintain the operational status of the affected
legacy infrastructures longer than planned, we may not be able to
achieve the expected efciencies and related savings, which may
have an adverse effect on our nancial performance.
FRAUD
The failure to evolve practices to effectively monitor and
control fraudulent activities could result in nancial loss and
brand degradation.
Economic volatility, the complexity of modern networks and the
increasing sophistication of criminal organizations create challenges
in monitoring, preventing and detecting fraudulent activities. Fraud
affecting BCE group companies has evolved beyond the traditional
subscription fraud and now includes usage, technical, prepaid,
distribution and occupational fraud. The failure to evolve practices
to effectively monitor and control fraudulent activities could result
in nancial loss and brand degradation.
The theft of our DTH satellite TV services has an adverse effect on
Bell TVs business and nancial performance.
Bell TV faces a loss of revenue resulting from the theft of its DTH
satellite TV services. As is the case for all other TV distributors, Bell
TV has experienced, and continues to experience, ongoing efforts
to steal its services by way of compromise or circumvention of
Bell TVs signal security systems. The theft of Bell TVs services has
an adverse effect on Bell TVs business and nancial performance.
Copyright theft and other unauthorized use of our content could have
an adverse effect on Bell Medias business and nancial performance.
Bell Medias monetization of its intellectual property relies partly on
the exclusivity of content in its offerings and platforms. Copyright
theft and other forms of unauthorized use undermine such
exclusivities and could potentially divert users to unlicensed or
otherwise illegitimate platforms, thus impacting our ability to derive
distribution and advertising revenues. Although piracy is not a new
risk to content, new technologies (including tools that undermine
technology protection measures) coupled with the failure to enact
adequate copyright protection and enforcement measures to keep
up with those technologies, present the possibility of increased
erosion to exclusivities.
TAX MATTERS
Income and commodity tax amounts may materially differ from
the amounts expected.
Our complex business operations are subject to various tax laws
and the adoption of new tax laws or regulations or rules thereunder,
or changes thereto or in the interpretation thereof, could result in
higher tax rates, new taxes or other adverse tax implications. In
addition, while we believe that we have adequately provided for
all income and commodity taxes based on all of the information
that is currently available, the calculation of income taxes and the
applicability of commodity taxes in many cases require signicant
judgment in interpreting tax rules and regulations. Our tax lings are
subject to government audits that could result in material changes
to the amount of current and deferred income tax assets and
liabilities and other liabilities and could, in certain circumstances,
result in an assessment of interest and penalties.
9

B
U
S
I
N
E
S
S

R
I
S
K
S
M
D
&
A

HEALTH MATTERS
Health concerns about radiofrequency emissions from wireless
devices, as well as epidemics and other health risks, could have an
adverse effect on our business.
Many studies have been performed to assess whether wireless
phones, networks and towers pose a potential health risk. Some
studies have indicated that radiofrequency emissions may be
linked to certain medical conditions, while other studies could not
establish such a link between adverse health effects and exposure to
radiofrequency emissions. In May 2011, the International Agency for
Research on Cancer (IARC) of the World Health Organization (WHO)
classied radiofrequency electromagnetic elds from wireless
phones as possibly carcinogenic to humans, but also indicated that
chance, bias or confounding could not be ruled out with reasonable
condence. The IARC also called for additional research into
long-term heavy use of mobile phones. In its June 2011 fact sheet
on mobile phones, the WHO stated that to date, no adverse health
effects have been established as being caused by mobile phone
use. There can be no assurance that the conclusions drawn by
other health studies concerning radiofrequency emissions will not
As we deploy new technologies, especially in the wireless area, we
face current and potential lawsuits relating to alleged adverse health
effects on customers who use such technologies, including wireless
communications devices, as well as relating to our marketing and
disclosure practices in connection therewith. As it is the case for
any litigation, we cannot predict the nal outcome of such lawsuits
and such lawsuits could have an adverse effect on our business
Increasing concern over the use of wireless communications
devices, exposure to radiofrequency emissions and the possible
related health risks could lead to additional government regulation,
which could have an adverse effect on our business and nancial
performance. Actual or perceived health risks of using wireless
communications devices and exposure to radiofrequency emissions
could result in fewer new network subscribers, lower network
usage per subscriber, higher churn rates, higher costs as a result
of modifying handsets, relocating wireless towers or addressing
incremental legal requirements, an increase in the number of law-
suits led against us, or reduced outside nancing being available
to the wireless communications industry. In addition, public protest
could result in a slower deployment of, or in our inability to deploy,
new wireless networks, towers and antennas. Industry Canada is
responsible for establishing safe limits for signal levels of radio
devices. We believe that the handsets and devices we sell, as well
as our network equipment, comply with all Canadian government
safety standards. We also rely on our suppliers to ensure that the
network and customer equipment supplied to us meets all applicable
safety and regulatory requirements.
In addition, epidemics, pandemics and other health risks could
also occur, which could adversely affect our ability to maintain
operational networks and provide services to our customers. Any
of these events could also have an adverse effect on our business
SHAREHOLDER DISTRIBUTIONS AND STOCK MARKET VOLATILITY
BCE is dependent on the ability of its subsidiaries, joint arrangements
and other entities in which it has an interest to pay dividends or
otherwise make distributions to it.
BCE has no material sources of income or assets of its own, other
than the interests that it has in its subsidiaries, joint arrangements
and other entities, including, in particular, its direct ownership of the
equity of Bell Canada. BCEs cash ow and, consequently, its ability
to pay dividends on its equity securities and service its indebtedness
are therefore dependent upon the ability of its subsidiaries, joint
arrangements and other entities in which it has an interest to pay
dividends or otherwise make distributions to it.
BCEs subsidiaries, joint arrangements and other entities in which it
has an interest are separate and distinct legal entities and have no
obligation, contingent or otherwise, to pay any dividends or make
any other distributions to BCE. In addition, any right of BCE to receive
assets of its subsidiaries, joint arrangements and other entities in
which it has an interest upon their liquidation or reorganization is
structurally subordinated to the prior claims of creditors of such
subsidiaries, joint arrangements and other entities.
We cannot guarantee that BCEs dividend policy will be maintained
or that dividends will be declared.
The BCE Board reviews from time to time the adequacy of BCEs
dividend policy with the objective of allowing sufcient nancial
exibility to continue investing in our business while growing returns
to shareholders. Under the current dividend policy, increases in the
common share dividend are directly linked to growth in BCEs free
cash ow. BCEs dividend policy and the declaration of dividends
on any of its outstanding shares are subject to the discretion of the
BCE Board and, consequently, there can be no guarantee that BCEs
dividend policy will be maintained or that dividends will be declared.
A major decline in the market price of BCEs securities may negatively
impact our ability to raise capital, issue debt, retain employees, make
strategic acquisitions or enter into joint arrangements.
Differences between BCEs actual or anticipated nancial results and
the published expectations of nancial analysts, as well as events
affecting our business or operating environment, may contribute to
volatility in BCEs securities. A major decline in the capital markets
in general, or an adjustment in the market price or trading volumes
of BCEs securities, may negatively affect our ability to raise capital,
issue debt, retain senior executives and other key employees, make
strategic acquisitions or enter into joint arrangements.
1
0

F
I
N
A
N
C
I
A
L

M
E
A
S
U
R
E
S
,

A
C
C
O
U
N
T
I
N
G

P
O
L
I
C
I
E
S

A
N
D

C
O
N
T
R
O
L
S
M
D
&
A

10 FINANCIAL MEASURES,
ACCOUNTING POLICIES
AND CONTROLS
10.1 OUR ACCOUNTING POLICIES
This section discusses key estimates and assumptions that management has made and how they affect the amounts reported in the
nancial statements and notes. It also describes key changes in accounting standards and our accounting policies, and how they affect
our nancial statements.
We have prepared our consolidated nancial statements using IFRS. Other signicant accounting policies, not involving the same level
of measurement uncertainty as those discussed in this section, are nevertheless important to an understanding of our nancial statements.
See Note 2 to BCEs 2013 consolidated nancial statements for more information about the accounting principles we use to prepare our
consolidated nancial statements.
CRITICAL ACCOUNTING ESTIMATES AND KEY JUDGEMENTS
When preparing nancial statements, management makes estimates
and judgements relating to:
reported amounts of revenues and expenses
reported amounts of assets and liabilities
disclosure of contingent assets and liabilities.
We base our estimates on a number of factors, including historical
experience, current events and actions that the company may
undertake in the future, and other assumptions that we believe
are reasonable under the circumstances. By their nature, these
estimates and judgements are subject to measurement uncertainty
and actual results could differ.
We consider the estimates and judgements described in this section
to be an important part of understanding our nancial statements
because they require management to make assumptions about
matters that were highly uncertain at the time the estimate
and judgement were made, and changes to these estimates
and judgements could have a material impact on our nancial
statements and our segments.
Our senior management has reviewed the development and
selection of the critical accounting estimates and judgements
described in this section with the Audit Committee of the BCE Board.
Any sensitivity analysis included in this section should be used with
caution as the changes are hypothetical and the impact of changes
in each key assumption may not be linear.
Our more signicant estimates and judgements are described below.
ESTIMATES
USEFUL LIVES OF PROPERTY, PLANT AND EQUIPMENT
AND FINITE-LIFE INTANGIBLE ASSETS
We review our estimates of the useful lives of property, plant and
equipment and nite-life intangible assets on an annual basis and
adjust depreciation or amortization on a prospective basis, if needed.
Property, plant and equipment represent a signicant proportion
of our total assets. Changes in technology or our intended use of
these assets, as well as changes in business prospects or economic
and industry factors, may cause the estimated useful lives of these
assets to change.
The estimated useful lives of property, plant and equipment and
nite-life intangible assets are determined by internal asset life
studies which take into account actual and expected future usage,
physical wear and tear, replacement history and assumptions
about technology evolution. When factors indicate that assets
useful lives are different from the prior assessment, we depreciate
or amortize the remaining carrying value prospectively over the
adjusted estimated useful lives.
POST-EMPLOYMENT BENEFIT PLANS
The amounts reported in the nancial statements relating to DB
pension plans and OPEBs are determined using actuarial calculations
that are based on several assumptions.
Our actuaries perform an actuarial valuation at least every three
years to determine the actuarial present value of the accrued DB
pension plan and other post-employment benets (OPEB) obligations.
The actuarial valuation uses managements assumptions for,
among other things, the discount rate, life expectancy, the rate of
compensation increase, trends in healthcare costs and expected
average remaining years of service of employees.
While we believe that these assumptions are reasonable, differences
in actual results or changes in assumptions could materially affect
post-employment benet obligations and future net post-employ-
ment benet plans cost.
We account for differences between actual and expected results
in benet obligations and plan performance in OCI, which are then
recognized immediately in the decit.
10
1
0

F
I
N
A
N
C
I
A
L

M
E
A
S
U
R
E
S
,

A
C
C
O
U
N
T
I
N
G

P
O
L
I
C
I
E
S

A
N
D

C
O
N
T
R
O
L
S
M
D
&
A

The most signicant assumptions used to calculate the net
post-employment benet plans cost are the discount rate and
life expectancy.
A discount rate is used to determine the present value of the future
cash ows that we expect will be needed to settle post-employment
benet obligations.
The discount rate is based on the yield on long-term, high-quality
corporate xed income investments, with maturities matching the
estimated cash ows of the post-employment benet plans. Life
expectancy is based on publicly available Canadian mortality tables
and is adjusted for the companys specic experience.
A lower discount rate and a higher life expectancy result in a higher
net post-employment benet obligation and a higher current
service cost.
Sensitivity Analysis
The following table shows a sensitivity analysis of key assumptions used to measure the net post-employment benet obligations and
the net post-employment benet plans cost for our DB pension plans and OPEB plans.
IMPACT ON NET POST-EMPLOYMENT
BENEFIT PLANS COST FOR 2014
INCREASE / (DECREASE)
IMPACT ON POST-EMPLOYMENT BENEFIT
OBLIGATIONS AT DECEMBER 31, 2014
INCREASE / (DECREASE)
CHANGE IN
ASSUMPTION
INCREASE IN
ASSUMPTION
DECREASE IN
ASSUMPTION
INCREASE IN
ASSUMPTION
DECREASE IN
ASSUMPTION
Discount rate 1% (177) 151 (2,680) 3,007
Mortality rate 25% (72) 77 (1,287) 1,369
IMPAIRMENT OF NON-FINANCIAL ASSETS
Goodwill and indenite-life intangible assets are tested for
impairment annually or when there is an indication that the asset
may be impaired. Property, plant and equipment and nite-life
intangible assets are tested for impairment if events or changes
in circumstances, assessed quarterly, indicate that their carrying
amount may not be recoverable. For the purpose of impairment
tests, assets other than goodwill are grouped at the lowest level for
which there are separately identiable cash inows.
Impairment losses are recognized and measured as the excess of
the carrying value of the assets over their recoverable amount. An
assets recoverable amount is the higher of its fair value less costs
to sell and its value in use. Previously recognized impairment losses,
other than those attributable to goodwill, are reviewed for possible
reversal at each reporting date and, if the assets recoverable
amount has increased, all or a portion of the impairment is reversed.
We make a number of estimates when calculating recoverable
amounts using discounted future cash ows or other valuation
methods to test for impairment. These estimates include the
assumed growth rates for future cash ows, the number of years
used in the cash ow model, and the discount rate. When impairment
charges occur they are recorded in Other (expense) income.
Goodwill Impairment Testing
We perform an annual test for goodwill impairment in the fourth
quarter for each of our cash generating units (CGUs) or groups
of CGUs to which goodwill is allocated and whenever there is an
indication that goodwill might be impaired.
A CGU is the smallest identiable group of assets that generates
cash inows that are independent of the cash inows from other
assets or groups of assets.
We identify any potential impairment by comparing the carrying
value of a CGU or groups of CGUs to its recoverable amount. The
recoverable amount of a CGU or groups of CGUs is the higher of
its fair value less costs to sell and its value in use. Fair value less
costs to sell is based on estimates of discounted future cash ows
or other valuation methods. Cash ows are projected based on
past experience, actual operating results and business plans. When
the recoverable amount of a CGU or groups of CGUs is less than
its carrying value, the recoverable amount is determined for its
identiable assets and liabilities. The excess of the recoverable
amount of the CGU or groups of CGUs over the total of the amounts
assigned to its assets and liabilities is the recoverable amount
of goodwill.
An impairment charge is deducted from earnings for any excess
of the carrying value of goodwill over its recoverable amount. For
purposes of impairment testing of goodwill, BCEs CGUs or groups of
CGUs correspond to our reporting segments as disclosed in Note 3
to BCEs 2013 consolidated nancial statements.
Any signicant change in each of the estimates used could have a
material impact on the calculation of the recoverable amount and
resulting impairment charge. As a result, we are unable to reason-
ably quantify the changes in our overall nancial performance if
we had used different assumptions.
We cannot predict whether an event that triggers impairment will
occur, when it will occur or how it will affect the asset values we
have reported.
We did not recognize a goodwill impairment charge in 2013 or 2012.
DEFERRED TAXES
Deferred tax assets and liabilities are calculated at the tax rates
that are expected to apply when the asset or liability is recovered or
settled. Both our current and deferred tax assets and liabilities are
calculated using tax rates that have been enacted or substantively
enacted at the reporting date.
Deferred taxes are provided on temporary differences arising from
investments in subsidiaries, joint arrangements and associates,
except where we control the timing of the reversal of the temporary
difference and it is probable that the temporary difference will not
reverse in the foreseeable future.
The amount of deferred tax assets is estimated with consideration
given to the timing, sources and amounts of future taxable income.
FAIR VALUE OF FINANCIAL INSTRUMENTS
Certain nancial instruments, such as investments in equity
securities, derivative nancial instruments and certain elements of
borrowings, are carried in the statements of nancial position at fair
value, with changes in fair value reected in the income statements
and the statements of comprehensive income. Fair values are
estimated by reference to published price quotations or by using
other valuation techniques that may include inputs that are not
based on observable market data, such as discounted cash ows.
1
0

F
I
N
A
N
C
I
A
L

M
E
A
S
U
R
E
S
,

A
C
C
O
U
N
T
I
N
G

P
O
L
I
C
I
E
S

A
N
D

C
O
N
T
R
O
L
S
M
D
&
A

CONTINGENCIES
We become involved in various litigation matters as a part of
our business. Pending litigations represent a potential cost to our
business. We estimate the amount of the loss by analyzing potential
outcomes and assuming various litigation and settlement strategies,
based on information that is available at the time.
If the nal resolution of a legal or regulatory matter results in a
judgement against us or requires us to pay a large settlement,
it could have a material effect on our consolidated nancial
statements in the period in which the judgement or settlement
occurs. Any accrual would be charged to earnings and included
in Trade payables and other liabilities or Other non-current
liabilities. Any cash settlement would be deducted from cash from
operating activities.
ONEROUS CONTRACTS
A provision for onerous contracts is recognized when the unavoid-
able costs of meeting our obligations under a contract exceed the
expected benets to be received from a contract. The provision is
measured at the present value of the lower of the expected cost of
terminating the contract and the expected net cost of completing
the contract.
JUDGEMENTS
The determination of the discount rate used to value our post-
employment benet obligations requires judgement. The rate is set
by reference to market yields of high quality corporate bonds at
the beginning of each scal year. Signicant judgement is required
when setting the criteria for bonds to be included in the population
from which the yield curve is derived. The most signicant criteria
considered for the selection of bonds include the size of the issue
and credit quality, along with the identication of outliers, which
are excluded.
INCOME TAXES
The calculation of income taxes requires judgement in interpreting
tax rules and regulations. There are transactions and calculations for
which the ultimate tax determination is uncertain. Our tax lings also
are subject to audits, the outcome of which could change the amount
of current and deferred tax assets and liabilities. Management
believes that it has sufcient amounts accrued for outstanding tax
matters based on information that currently is available.
Management judgement is used to determine the amounts of
deferred tax assets and liabilities and future tax liabilities to be
recognized. In particular, judgement is required when assessing
the timing of the reversal of temporary differences to which future
income tax rates are applied.
MULTIPLE ELEMENT ARRANGEMENTS
Determining the amount of revenue to be recognized for multiple
element arrangements requires judgement to establish the separ-
ately identiable components and the allocation of the total price
between those components.
CONTINGENCIES
We accrue a potential loss if we believe a loss is probable and can
be reasonably estimated, based on information that is available at
the time. Any accrual would be charged to earnings and included in
Trade payables and other liabilities or Other non-current liabilities.
Any cash settlement would be deducted from cash from operating
activities. We estimate the amount of a loss by analyzing potential
outcomes and assuming various litigation and settlement strategies.
The determination of whether a loss is probable from litigation
and whether an outow of resources is likely requires judgement.
ADOPTION OF NEW OR AMENDED ACCOUNTING STANDARDS
As required, effective January 1, 2013, we adopted the following
new or amended accounting standards on a retrospective basis.
IAS 19
In June 2011, the IASB amended IAS 19 Employee Benets. Annual
nance expense for a funded benet plan includes net interest
expense or income, calculated by applying the discount rate to
the net DB pension asset or liability, replacing the nance charge
and expected return on plan assets, thereby reducing the current
expected return on plan assets to a return that is equal to the
discount rate. Entities are required to segregate changes in the DB
obligation and in the fair value of plan assets into three components:
service costs, net interest on the net DB pension liabilities (assets)
and remeasurements of the net DB pension liabilities (assets). The
amendments also eliminate the corridor approach for recognizing
actuarial gains and losses and enhance disclosure about the risks
arising from DB plans.
These amendments did not impact our consolidated statements
of nancial position or our consolidated statements of cash ows.
The impact of the decrease in the expected return on plan assets,
as a result of the amended standard, on our consolidated income
statements and consolidated statements of comprehensive income
is as follows.
FOR THE YEAR ENDED DECEMBER 31 2012
Interest on post-employment benet obligation increase (242)
Income taxes decrease 65
Net earnings decrease (177)
Actuarial losses on post-employment benet plans decrease / Other comprehensive loss decrease 177
Earnings per share decrease (0.22)
IFRS 11
In May 2011, the IASB issued IFRS 11 Joint Arrangements, which
requires joint arrangements to be classied either as joint operations
or joint ventures depending on the contractual rights and obligations
of each investor. For joint operations, a company recognizes its
share of assets, liabilities, revenues and expenses of the joint
operation. An investment in a joint venture is accounted for using
the equity method.
1
0

F
I
N
A
N
C
I
A
L

M
E
A
S
U
R
E
S
,

A
C
C
O
U
N
T
I
N
G

P
O
L
I
C
I
E
S

A
N
D

C
O
N
T
R
O
L
S
M
D
&
A

As a result of adopting IFRS 11, we account for our 50% interest in
Inukshuk as a joint operation. Inukshuk was previously classied as a
joint venture and accounted for using the equity method. IFRS 11 did
not have a material impact on our consolidated income statements
or our consolidated statements of cash ows. The impacts on our
consolidated statements of nancial position are as follows.
DECEMBER 31, 2012 JANUARY 1, 2012
Increase / (Decrease) in:
Cash 2 2
Trade and other receivables 27
Property, plant and equipment 17
Intangible assets 96 208
Investments in associates and joint ventures (97) (213)
Trade payables and other liabilities 1 15
Debt due within one year 26
The following new or amended standards did not have a signicant impact on our consolidated nancial statements.
IFRS 7
In December 2011, the IASB amended IFRS 7 Financial Instruments:
Disclosures, to require disclosures to better assess the effect or
potential effect of offsetting arrangements in the consolidated state-
ments of nancial position.
IFRS 10
In May 2011, the IASB issued IFRS 10 Consolidated Financial
Statements, which establishes principles for the presentation and
preparation of consolidated nancial statements. Under IFRS 10,
control is identied as the single basis of consolidation for all
types of entities.
IFRS 12
In May 2011, the IASB issued IFRS 12 Disclosure of Interests in Other
Entities, which integrates and enhances the disclosure requirements
for entities that have an interest in a subsidiary, a joint arrangement,
an associate or an unconsolidated structured entity.
The required disclosures are provided in Note 15, Note 27, and
Note 28 to BCEs 2013 consolidated nancial statements.
IFRS 13
In May 2011, the IASB issued IFRS 13 Fair Value Measurement, which
establishes a single source of guidance for fair value measurement
under IFRS. IFRS 13 denes fair value, provides guidance on meas-
urement and introduces certain disclosure requirements.
The adoption of IFRS 13 did not result in any measurement
adjustments or changes to our fair value valuation techniques.
The enhanced disclosures are included in Note 23 to BCEs 2013
consolidated nancial statements.
IAS 1
In June 2011, the IASB amended IAS 1 Presentation of Financial
Statements, providing guidance on items contained in OCI and
their classication.
As a result of adopting the amendments to IAS 1, we have grouped
items within our consolidated statements of comprehensive income
according to whether or not they will be reclassied subsequently
to net earnings.
FUTURE CHANGES TO ACCOUNTING STANDARDS
The following changes to IFRS are not expected to have a signicant impact on our consolidated nancial statements.
IAS 36
In May 2013, the IASB amended IAS 36 Impairment of Assets, pro-
viding guidance on recoverable amount disclosures for non-nancial
assets. The amendments to IAS 36 must be applied retrospectively
for annual periods beginning on or after January 1, 2014.
IAS 39
In June 2013, the IASB amended IAS 39 Financial Instruments:
Recognition and Measurement, providing guidance on novation of
over-the-counter derivatives and continued designation for hedge
accounting. The amendments to IAS 39 must be applied retro-
spectively for annual periods beginning on or after January 1, 2014.
IAS 32
In December 2011, the IASB amended IAS 32 Financial Instruments:
Presentation, clarifying the application of the offsetting require-
ments of nancial assets and nancial liabilities. The amendments to
IAS 32 must be applied retrospectively for annual periods beginning
on or after January 1, 2014.
IFRS 9
In November 2009, the IASB issued IFRS 9 Financial Instruments,
introducing new requirements for classifying and measuring nan-
cial assets. In October 2010, the IASB reissued IFRS 9, incorporating
new requirements on accounting for nancial liabilities, and carrying
over from IAS 39 the requirements for derecognition of nancial
assets and nancial liabilities. In December 2011, the IASB amended
IFRS 9, deferring the mandatory effective date to annual periods
beginning on or after January 1, 2015. In November 2013, the IASB
further amended IFRS 9 to delay the mandatory effective date to a
future date to be determined. The amendment also provides relief
from restating comparative information and required disclosures
in IFRS 7 Financial Instruments: Disclosures.
1
0

F
I
N
A
N
C
I
A
L

M
E
A
S
U
R
E
S
,

A
C
C
O
U
N
T
I
N
G

P
O
L
I
C
I
E
S

A
N
D

C
O
N
T
R
O
L
S
M
D
&
A

10.2 NON-GAAP FINANCIAL MEASURES
This section describes the non-GAAP nancial measures we use in this MD&A to explain our nancial results. It also provides reconciliations
of the non-GAAP nancial measures to the most comparable IFRS nancial measures.
EBITDA
The term EBITDA does not have any standardized meaning under
IFRS. Therefore, it is unlikely to be comparable to similar measures
presented by other issuers.
We dene EBITDA as operating revenues less operating costs, as
shown in BCEs consolidated income statements. EBITDA for BCEs
segments is the same as segment prot as reported in Note 3 to
BCEs 2013 consolidated nancial statements.
We use EBITDA to evaluate the performance of our businesses as it
reects their ongoing protability. We believe that certain investors
and analysts use EBITDA to measure a companys ability to service
debt and to meet other payment obligations or as a common meas-
urement to value companies in the telecommunications industry.
EBITDA also is one component in the determination of short-term
incentive compensation for all management employees. EBITDA has
no directly comparable IFRS nancial measure. Alternatively, the
following table provides a reconciliation of net earnings to EBITDA.
2013 2012
Net earnings 2,388 2,876
Severance, acquisition and other costs 406 133
Depreciation 2,734 2,678
Amortization 646 714
Finance costs
Interest expense 931 865
Interest on post-employment benet obligations 150 131
Other expense (income) 6 (269)
Income taxes 828 760
EBITDA 8,089 7,888
ADJUSTED NET EARNINGS AND ADJUSTED EPS
The terms Adjusted net earnings and Adjusted EPS do not have any
standardized meaning under IFRS. Therefore, they are unlikely to
be comparable to similar measures presented by other issuers.
Starting in 2013, our denition of Adjusted net earnings has been
modied to exclude premiums on early redemption of debt to align
with the reporting practices of our peers. We dene Adjusted net
earnings as net earnings attributable to common shareholders
before severance, acquisition and other costs, net (gains) losses on
investments, and premiums on early redemption of debt. We dene
Adjusted EPS as Adjusted net earnings per BCE common share.
We use Adjusted net earnings and Adjusted EPS, and we believe
that certain investors and analysts use these measures, among
others, to assess the performance of our businesses without the
effects of severance, acquisition and other costs, net (gains) losses
on investments, and premiums on early redemption of debt, net
of tax and NCI. We exclude these items because they affect the
comparability of our nancial 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 IFRS nancial measures are net earnings attributable to common shareholders and EPS. The following table is a
reconciliation of net earnings attributable to common shareholders and EPS to Adjusted net earnings and Adjusted EPS, respectively.
2013 2012
TOTAL PER SHARE TOTAL PER SHARE
Net earnings attributable to common shareholders 1,975 2.55 2,456 3.17
Severance, acquisition and other costs 299 0.38 94 0.12
Net losses (gains) on investments 7 0.01 (256) (0.33)
Premiums on early redemption of debt 36 0.05
Adjusted net earnings 2,317 2.99 2,294 2.96
1
0

F
I
N
A
N
C
I
A
L

M
E
A
S
U
R
E
S
,

A
C
C
O
U
N
T
I
N
G

P
O
L
I
C
I
E
S

A
N
D

C
O
N
T
R
O
L
S
M
D
&
A

FREE CASH FLOW
The term free cash ow does not have any standardized meaning
under IFRS. Therefore, it is unlikely to be comparable to similar
measures presented by other issuers.
Starting in 2013, our denition of free cash ow has been modied
to exclude voluntary pension funding because it is a discretionary
use of excess cash. Accordingly, our 2012 free cash ow has
been restated. We dene free cash ow as cash ows from
operating activities, excluding acquisition costs paid and voluntary
pension funding, plus dividends received from Bell Aliant, less
capital expenditures, preferred share dividends, dividends paid by
subsidiaries to NCI and Bell Aliant free cash ow.
We consider free cash ow to be an important indicator of the
nancial strength and performance of our business because it
shows how much cash is available to repay debt and reinvest in
our company.
We believe that certain investors and analysts use free cash ow
to value a business and its underlying assets.
The most comparable IFRS nancial measure is cash ows from operating activities. The following table is a reconciliation of cash ows
from operating activities to free cash ow on a consolidated basis.
2013 2012
Cash ows from operating activities 6,476 5,560
Bell Aliant dividends to BCE 191 191
Capital expenditures (3,571) (3,515)
Cash dividends paid on preferred shares (127) (133)
Cash dividends paid by subsidiaries to non-controlling interest (283) (340)
Acquisition costs paid 80 101
Voluntary dened benet pension plan contribution 750
Bell Aliant free cash ow (195) (186)
Free cash ow 2,571 2,428
NET DEBT
The term net debt does not have any standardized meaning under
IFRS. Therefore, it is unlikely to be comparable to similar measures
presented by other issuers.
We dene net debt as debt due within one year plus long-term
debt and 50% of preferred shares less cash and cash equivalents
as shown in BCEs consolidated statement of nancial position. We
include 50% of outstanding preferred shares in our net debt as to
be consistent with the treatment by certain credit rating agencies.
We consider net debt to be an important indicator of the companys
nancial leverage because it represents the amount of debt that
is not covered by available cash and cash equivalents. We believe
that certain investors and analysts use net debt to determine a
companys nancial leverage. Net debt is a calculation that has no
meaning under IFRS. The calculation is shown in the following table.
2013 2012
Debt due within one year 2,571 2,136
Long-term debt 16,341 13,886
50% of outstanding preferred shares 1,698 1,698
Cash and cash equivalents (335) (129)
Net debt 20,275 17,591
1
0

F
I
N
A
N
C
I
A
L

M
E
A
S
U
R
E
S
,

A
C
C
O
U
N
T
I
N
G

P
O
L
I
C
I
E
S

A
N
D

C
O
N
T
R
O
L
S
M
D
&
A

10.3 EFFECTIVENESS OF INTERNAL CONTROLS
DISCLOSURE CONTROLS AND PROCEDURES
Our disclosure controls and procedures are designed to provide
reasonable assurance that information required to be disclosed by
us in reports led or submitted under Canadian or U.S. securities
laws is recorded, processed, summarized and reported within
the time periods specied under those laws, and include controls
and procedures that are designed to ensure that the information
is accumulated and communicated to management, including
BCEs President and Chief Executive Ofcer (CEO) and Executive
Vice-President and Chief Financial Ofcer (CFO), to allow timely
decisions regarding required disclosure.
As at December 31, 2013, management evaluated, under the
supervision of and with the participation of the CEO and the CFO,
the effectiveness of our disclosure controls and procedures, as
dened in Rule 13a-15(e) under the U.S. Securities Exchange Act
of 1934 and under National Instrument 52-109 Certication
of Disclosure in Issuers Annual and Interim Filings. The CEO and
CFO have limited the scope of their design and evaluation of our
disclosure controls and procedures to exclude the disclosure controls
and procedures of Astral, which we acquired on July 5, 2013. Astrals
contribution to our consolidated nancial statements for the year
ended December 31, 2013 was approximately 2% of consolidated
revenues and 3% of consolidated net earnings. Additionally, at
December 31, 2013, Astrals current assets and current liabilities
were approximately 18% and 3% of consolidated current assets
and current liabilities, respectively, and its non-current assets and
non-current liabilities were approximately 7% and 1% of consolidated
non-current assets and non-current liabilities, respectively. The
design and evaluation of Astrals disclosure controls and procedures
will be completed for Q3 2014.
Further details related to the acquisition of Astral are disclosed in
Note 4 to BCEs 2013 consolidated nancial statements.
Based on that evaluation, which excluded Astrals disclosure controls
and procedures, the CEO and CFO concluded that our disclosure
controls and procedures were effective as at December 31, 2013.
INTERNAL CONTROL OVER FINANCIAL REPORTING
Management is responsible for establishing and maintaining
adequate internal control over nancial reporting, as dened in
Rule 13a-15(f) under the U.S. Securities Exchange Act of 1934 and
under National Instrument 52-109. Our internal control over nancial
reporting is a process designed under the supervision of the CEO
and CFO to provide reasonable assurance regarding the reliability
of nancial reporting and the preparation of nancial statements
for external purposes in accordance with IFRS. However, because
of its inherent limitations, internal control over nancial reporting
may not prevent or detect misstatements on a timely basis.
Management evaluated, under the supervision of and with the
participation of the CEO and the CFO, the effectiveness of our
internal control over nancial reporting as at December 31, 2013,
based on the criteria established in the Internal Control Integrated
Framework (1992) issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The CEO and
CFO have limited the scope of their design and evaluation of our
internal control over nancial reporting to exclude Astrals internal
control over nancial reporting.
Based on that evaluation, which excluded Astrals internal control
over nancial reporting, the CEO and CFO concluded that our
internal control over nancial reporting was effective as at
December 31, 2013.
There have been no changes during the year ended December 31, 2013
in our internal control over nancial reporting that have materially
affected, or are reasonably likely to materially affect, our internal
R
E
P
O
R
T
S

O
N

I
N
T
E
R
N
A
L

C
O
N
T
R
O
L
REPORTS ON INTERNAL CONTROL
MANAGEMENTS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
The management of BCE Inc. (BCE) is responsible for establishing
and maintaining adequate internal control over nancial reporting.
Our internal control over nancial reporting is a process designed
under the supervision of the President and Chief Executive Ofcer
and the Executive Vice-President and Chief Financial Ofcer of
BCE to provide reasonable assurance regarding the reliability of
nancial reporting and the preparation of nancial statements
for external purposes in accordance with International Financial
Reporting Standards (IFRS).
Due to its inherent limitations, internal control over nancial
reporting may not prevent or detect misstatements on a timely
basis. Also, projections of any evaluation of the effectiveness of
internal control over nancial reporting to future periods are subject
to the risk that the controls may become inadequate because of
changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
Management evaluated, under the supervision of and with the
participation of the President and Chief Executive Ofcer and
the Executive Vice-President and Chief Financial Ofcer, the
effectiveness of our internal control over nancial reporting as
at December 31, 2013, based on the criteria established in Internal
Control Integrated Framework (1992) issued by the Committee
of Sponsoring Organizations of the Treadway Commission (COSO).
Managements evaluation of and conclusion on the effectiveness
of our internal control over nancial reporting did not include
an evaluation of the internal control over nancial reporting of
Astral, which we acquired on July 5, 2013. Astrals contribution
to our consolidated nancial statements for the year ended
December 31, 2013 was approximately 2% of consolidated rev-
enues and 3% of consolidated net earnings. Additionally, on
December 31, 2013, Astrals current assets and current liabilities
were approximately 18% and 3% of consolidated current assets
and current liabilities, respectively, and its non-current assets and
non-current liabilities were approximately 7% and 1% of consolidated
non-current assets and non-current liabilities.
Based on that evaluation, which excluded Astrals internal control
over nancial reporting, the President and Chief Executive Ofcer
and the Executive Vice-President and Chief Financial Ofcer
concluded that our internal control over nancial reporting was
effective as at December 31, 2013.
Our internal control over nancial reporting as at December 31, 2013
has been audited by Deloitte LLP, Independent Registered Public
Accounting Firm, who also audited our consolidated nancial
statements for the year ended December 31, 2013. Deloitte LLP
issued an unqualied opinion on the effectiveness of our internal
(signed) George A. Cope
President and Chief Executive Ofcer
(signed) Siim A. Vanaselja
Executive Vice-President and Chief Financial Ofcer
(signed) Karyn A. Brooks
Senior Vice-President and Controller
March 6, 2014
R
E
P
O
R
T
S

O
N

I
N
T
E
R
N
A
L

C
O
N
T
R
O
L
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of BCE Inc.
We have audited the internal control over nancial reporting of
BCE Inc. and subsidiaries (the Company) as of December 31, 2013,
based on the criteria established in Internal Control Integrated
Framework (1992) issued by the Committee of Sponsoring
Organizations of the Treadway Commission. As described in
Managements Report on Internal Control over Financial Reporting,
management excluded from its assessment the internal control
over nancial reporting at Astral Media Inc. (Astral), which was
acquired on July 5, 2013. Astrals contribution to the consolidated
nancial statements for the year ended December 31, 2013 was
approximately 2% of consolidated revenues and 3% of consolidated
net earnings. Additionally, at December 31, 2013, Astrals current
assets and current liabilities were approximately 18% and 3% of
consolidated current assets and current liabilities, respectively,
and its non-current assets and non-current liabilities were
approximately 7% and 1% of consolidated non-current assets and
non-current liabilities, respectively. Accordingly, our audit did not
include the internal control over nancial reporting at Astral. The
Companys management is responsible for maintaining effective
internal control over nancial reporting and for its assessment
of the effectiveness of internal control over nancial reporting,
included in the accompanying Management Report on Internal
Control over Financial Reporting. Our responsibility is to express an
opinion on the Companys internal control over nancial reporting
based on our audit.
We conducted our audit in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether effective internal control
over nancial reporting was maintained in all material respects.
Our audit included obtaining an understanding of internal control
over nancial reporting, assessing the risk that a material weakness
exists, testing and evaluating the design and operating effectiveness
of internal control based on the assessed risk, and performing such
other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion.
A companys internal control over nancial reporting is a process
designed by, or under the supervision of, the companys principal
executive and principal nancial ofcers, or persons performing
similar functions, and effected by the companys board of directors,
management, and other personnel to provide reasonable assurance
regarding the reliability of nancial reporting and the preparation
of nancial statements for external purposes in accordance
with International Financial Reporting Standards as issued by
the International Accounting Standards Board. A companys
internal control over nancial reporting includes those policies and
procedures that (1) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reect the transactions and
dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit
preparation of nancial statements in accordance with International
Financial Reporting Standards as issued by the International
Accounting Standards Board, and that receipts and expenditures of
the company are being made only in accordance with authorizations
of management and directors of the company; and (3) provide
reasonable assurance regarding prevention or timely detection
of unauthorized acquisition, use, or disposition of the companys
assets that could have a material effect on the nancial statements.
Because of the inherent limitations of internal control over nancial
reporting, including the possibility of collusion or improper manage-
ment override of controls, material misstatements due to error or
fraud may not be prevented or detected on a timely basis. Also,
projections of any evaluation of the effectiveness of the internal
control over nancial reporting to future periods are subject to the
risk that the controls may become inadequate because of changes
in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
In our opinion, the Company maintained, in all material respects,
effective internal control over nancial reporting as of December 31,
2013, based on the criteria established in Internal Control
Integrated Framework (1992) issued by the Committee of Sponsoring
Organizations of the Treadway Commission.
We have also audited, in accordance with Canadian generally
accepted auditing standards and the standards of the Public
Company Accounting Oversight Board (United States), the consoli-
dated nancial statements as of and for the year ended December 31,
2013 of the Company and our report dated March 6, 2014 expressed
an unqualied opinion on those nancial statements and included
an explanatory paragraph regarding the Companys adoption of
the new accounting standards, IAS 19 Employee Benets (amended
2011) and IFRS 11, Joint Arrangements.
(signed) Deloitte LLP
[1]
Montral, Canada
March 6, 2014
(1) CPA auditor, CA, public accountancy permit No. A104644
C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENTS RESPONSIBILITY FOR FINANCIAL REPORTING
These nancial statements form the basis for all of the nancial
information that appears in this annual report.
The nancial statements and all of the information in this annual
report are the responsibility of the management of BCE Inc. and
have been reviewed and approved by the board of directors.
The board of directors is responsible for ensuring that manage-
ment fullls its nancial reporting responsibilities. Deloitte LLP,
Independent Registered Chartered Accountants, have audited the
nancial statements.
Management has prepared the nancial statements according
to International Financial Reporting Standards (IFRS). Under
these principles, management has made certain estimates and
assumptions that are reected in the nancial statements and
notes. Management believes that these nancial statements fairly
present BCEs consolidated nancial position, results of operations
and cash ows.
Management has a system of internal controls designed to provide
reasonable assurance that the nancial statements are accurate
and complete in all material respects. This is supported by an internal
audit group that reports to the Audit Committee, and includes
communication with employees about policies for ethical business
conduct. Management believes that the internal controls provide
reasonable assurance that our nancial records are reliable and
form a proper basis for preparing the nancial statements, and that
our assets are properly accounted for and safeguarded.
The board of directors has appointed an Audit Committee, which
is made up of unrelated and independent directors. The Audit
Committees responsibilities include reviewing the nancial
statements and other information in this annual report, and
recommending them to the board of directors for approval. You will
nd a description of the Audit Committees other responsibilities
on page 152 of this annual report. The internal auditors and the
shareholders auditors have free and independent access to the
Audit Committee.
(signed) George A. Cope
President and Chief Executive Ofcer
(signed) Siim A. Vanaselja
Executive Vice-President and Chief Financial Ofcer
(signed) Karyn A. Brooks
Senior Vice-President and Controller
March 6, 2014
C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of BCE Inc.
We have audited the accompanying consolidated nancial
statements of BCE Inc. and subsidiaries (the Company), which
comprise the consolidated statements of nancial position as at
December 31, 2013 and December 31, 2012, and the consolidated
income statements, consolidated statements of comprehensive
income, consolidated statements of changes in equity, and con-
solidated statements of cash ows for the years then ended,
and a summary of signicant accounting policies and other
explanatory information.
MANAGEMENTS RESPONSIBILITY FOR THE
CONSOLIDATED FINANCIAL STATEMENTS
Management is responsible for the preparation and fair presentation
of these consolidated nancial statements in accordance with
International Financial Reporting Standards as issued by the
International Accounting Standards Board, and for such internal
control as management determines is necessary to enable the
preparation of consolidated nancial statements that are free from
material misstatement, whether due to fraud or error.
AUDITORS RESPONSIBILITY
Our responsibility is to express an opinion on these consolidated
nancial statements based on our audits. We conducted our
audits in accordance with Canadian generally accepted auditing
standards and the standards of the Public Company Accounting
Oversight Board (United States). Those standards require that we
comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the consolidated
nancial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the consolidated nancial
statements. The procedures selected depend on the auditors
judgment, including the assessment of the risks of material mis-
statement of the consolidated nancial statements, whether due
to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entitys preparation and
fair presentation of the consolidated nancial statements in order to
design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made
by management, as well as evaluating the overall presentation of
the consolidated nancial statements.
We believe that the audit evidence we have obtained in our audits
is sufcient and appropriate to provide a basis for our audit opinion.
OPINION
In our opinion, the consolidated nancial statements present fairly,
in all material respects, the nancial position of BCE Inc. and sub-
sidiaries as at December 31, 2013 and December 31, 2012, and their
nancial performance and their cash ows for the years then ended
in accordance with International Financial Reporting Standards as
issued by the International Accounting Standards Board.
EMPHASIS OF MATTER
Without modifying our opinion, we draw attention to Note 2 to
the consolidated nancial statements, which explains that the
Company has retrospectively changed its method of accounting
for pensions due to the adoption of IAS 19, Employee Benets
(amended 2011), as well as its method of accounting for interests
in arrangements that are controlled jointly due to the adoption of
IFRS 11, Joint Arrangements.
OTHER MATTER
We have also audited, in accordance with the standards of the
Public Company Accounting Oversight Board (United States),
the Companys internal control over nancial reporting as of
December 31, 2013, based on the criteria established in Internal
Control Integrated Framework (1992) issued by the Committee
of Sponsoring Organizations of the Treadway Commission and our
report dated March 6, 2014 expressed an unqualied opinion on the
Companys internal control over nancial reporting.
(signed) Deloitte LLP
[1]
Montral, Canada
March 6, 2014
(1) CPA auditor, CA, public accountancy permit No. A104644
C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
CONSOLIDATED INCOME STATEMENTS
FOR THE YEAR ENDED DECEMBER 31
(IN MILLIONS OF CANADIAN DOLLARS, EXCEPT SHARE AMOUNTS) NOTE 2013 2012
Operating revenues 3 20,400 19,978
Operating costs 5 (12,311) (12,090)
Severance, acquisition and other costs 6 (406) (133)
Depreciation 13 (2,734) (2,678)
Amortization 14 (646) (714)
Finance costs
Interest expense 7 (931) (865)
Interest on post-employment benet obligations 21 (150) (131)
Other (expense) income 8 (6) 269
Income taxes 9 (828) (760)
Common shareholders 1,975 2,456
Preferred shareholders 131 139
Basic 10 2.55 3.17
Diluted 10 2.54 3.17
Average number of common shares outstanding basic (millions) 775.8 774.3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(IN MILLIONS OF CANADIAN DOLLARS) NOTE 2013 2012
Other comprehensive income (loss), net of income taxes
Items that will be reclassied subsequently to net earnings
Net change in value of available-for-sale nancial assets, net of income taxes of nil
for 2013 and 2012 (6) 1
Net change in value of derivatives designated as cash ow hedges, net of income
taxes of ($9) million and ($1) million for 2013 and 2012, respectively 28 (10)
Items that will not be reclassied to net earnings
Actuarial gains (losses) on post-employment benet plans, net of income taxes of
($380) million and $397 million for 2013 and 2012, respectively 21 1,036 (1,052)
Other comprehensive income (loss) 1,058 (1,061)
Total comprehensive income 3,446 1,815
Total comprehensive income attributable to:
Common shareholders 2,872 1,475
Preferred shareholders 131 139
Total comprehensive income 3,446 1,815
C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(IN MILLIONS OF CANADIAN DOLLARS) NOTE DECEMBER 31, 2013 DECEMBER 31, 2012
ASSETS
Current assets
Cash 220 119
Cash equivalents 115 10
Trade and other receivables 11 3,043 2,946
Inventory 12 383 392
Prepaid expenses 415 301
Assets held for sale 4 719 5
Other current assets 175 140
Total current assets 5,070 3,913
Non-current assets
Property, plant and equipment 13 20,743 20,007
Intangible assets 14 9,552 8,183
Deferred tax assets 9 165 244
Investments in associates and joint ventures 15 775 800
Other non-current assets 16 698 637
Goodwill 17 8,381 7,185
Total non-current assets 40,314 37,056
Total assets 45,384 40,969
LIABILITIES
Current liabilities
Trade payables and other liabilities 18 4,339 3,916
Interest payable 147 128
Dividends payable 466 453
Current tax liabilities 367 113
Debt due within one year 19 2,571 2,136
Total current liabilities 7,890 6,746
Non-current liabilities
Long-term debt 20 16,341 13,886
Deferred tax liabilities 9 1,318 761
Post-employment benet obligations 21 2,127 3,422
Other non-current liabilities 22 1,458 1,429
Total non-current liabilities 21,244 19,498
Total liabilities 29,134 26,244
Commitments and contingencies 26
EQUITY
Equity attributable to BCE shareholders
Preferred shares 24 3,395 3,395
Common shares 24 13,629 13,611
Contributed surplus 2,615 2,557
Accumulated other comprehensive income (loss) 14 (6)
Decit (4,642) (5,682)
Total equity attributable to BCE shareholders 15,011 13,875
Non-controlling interest 28 1,239 850
Total equity 16,250 14,725
Total liabilities and equity 45,384 40,969
C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
ATTRIBUTABLE TO BCE SHAREHOLDERS
FOR THE YEAR ENDED DECEMBER 31, 2013
(IN MILLIONS OF CANADIAN DOLLARS) NOTE
PREFERRED
SHARES
COMMON
SHARES
CONTRI-
BUTED
SURPLUS
ACCUMU-
LATED
OTHER
COMPRE-
HENSIVE
INCOME
(LOSS) DEFICIT TOTAL
NON-
CONTROL-
LING
INTEREST
TOTAL
EQUITY
Balance at January 1, 2013 3,395 13,611 2,557 (6) (5,682) 13,875 850 14,725
Net earnings 2,106 2,106 282 2,388
Other comprehensive income 20 877 897 161 1,058
Total comprehensive income 20 2,983 3,003 443 3,446
Common shares issued under stock option plan 24 14 (1) 13 13
Common shares issued under employee
savings plan 24 4 4 4
Other share-based compensation 59 2 61 5 66
Dividends declared on BCE common and
preferred shares (1,938) (1,938) (1,938)
Dividends declared by subsidiaries
to non-controlling interest (290) (290)
Equity securities issued by subsidiaries
to non-controlling interest 225 225
Equity transaction with non-controlling interest (7) (7) 6 (1)
Balance at December 31, 2013 3,395 13,629 2,615 14 (4,642) 15,011 1,239 16,250
ATTRIBUTABLE TO BCE SHAREHOLDERS
(IN MILLIONS OF CANADIAN DOLLARS) NOTE
PREFERRED
SHARES
COMMON
SHARES
SHARES
SUBJECT TO
CANCEL-
LATION
CONTRI-
BUTED
SURPLUS
ACCUMU-
LATED
OTHER
COMPRE-
HENSIVE
INCOME
(LOSS) DEFICIT TOTAL
NON-
CONTROL-
LING
INTEREST
TOTAL
EQUITY
Balance at January 1, 2012 3,115 13,566 (50) 2,527 5 (5,385) 13,778 981 14,759
Net earnings 2,595 2,595 281 2,876
Other comprehensive loss (11) (970) (981) (80) (1,061)
Total comprehensive (loss) income (11) 1,625 1,614 201 1,815
Preferred shares issued 24 280 (3) 277 277
Common shares issued under stock
option plan 24 43 (4) 39 39
Common shares issued under
employee savings plan 24 48 48 48
Common shares repurchased
and cancelled 24 (46) (3) (58) (107) (107)
Common shares subject
to cancellation 50 50 50
Other share-based compensation 37 (3) 34 5 39
Dividends declared on BCE
common and preferred shares (1,858) (1,858) (1,858)
Dividends declared by subsidiaries
to non-controlling interest (348) (348)
Equity securities issued
by subsidiaries
to non-controlling interest 11 11
Balance at December 31, 2012 3,395 13,611 2,557 (6) (5,682) 13,875 850 14,725
C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN MILLIONS OF CANADIAN DOLLARS) NOTE 2013 2012
Cash ows from operating activities
Adjustments to reconcile net earnings to cash ows from operating activities
Severance, acquisition and other costs 6 406 133
Depreciation and amortization 13,14 3,380 3,392
Post-employment benet plans cost 21 442 356
Net interest expense 924 858
Losses (gains) on investments 8 7 (256)
Income taxes 9 828 760
Contributions to post-employment benet plans 21 (341) (1,192)
Payments under other post-employment benet plans 21 (73) (73)
Severance and other costs paid (203) (231)
Acquisition costs paid (80) (101)
Interest paid (879) (835)
Income taxes paid (net of refunds) (470) (280)
Net change in operating assets and liabilities 147 153
Cash ows from operating activities 6,476 5,560
Cash ows used in investing activities
Capital expenditures (3,571) (3,515)
Business acquisitions 4 (2,850) (13)
Increase in investments (3) (593)
Other investing activities 23 20
Cash ows used in investing activities (6,401) (4,101)
Cash ows from (used in) nancing activities
Increase in notes payable and bank advances 272 377
Reduction in securitized trade receivables (14) (15)
Issue of long-term debt 20 4,438 1,055
Repayment of long-term debt 20 (2,495) (946)
Premiums on early redemption of debt 8,20 (55)
Issue of common shares 13 39
Issue of preferred shares 24 280
Issue of equity securities by subsidiaries to non-controlling interest 230 11
Repurchase of common shares (107)
Cash dividends paid on common shares (1,795) (1,683)
Cash dividends paid on preferred shares (127) (133)
Cash dividends paid by subsidiaries to non-controlling interest (283) (340)
Other nancing activities (53) (45)
Cash ows from (used in) nancing activities 131 (1,507)
Net increase (decrease) in cash 101 (13)
Cash at beginning of period 119 132
Cash at end of period 220 119
Net increase (decrease) in cash equivalents 105 (35)
Cash equivalents at beginning of period 10 45
Cash equivalents at end of period 115 10
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
We, us, our, BCE and the company mean, as the context may require, either BCE Inc. or, collectively, BCE Inc., its subsidiaries, joint arrangements
and associates; Bell means our Bell Wireline, Bell Wireless and Bell Media segments on an aggregate basis; and Bell Aliant means, as the
context may require, either Bell Aliant Inc. or, collectively, Bell Aliant Inc. and its subsidiaries and associates.
NOTE 1 CORPORATE INFORMATION
BCE is incorporated and domiciled in Canada. BCEs head ofce is
located at 1, Carrefour Alexander-Graham-Bell, Verdun, Qubec,
Canada. BCE is a telecommunications and media company providing
wireline, wireless, Internet and television (TV) services to residential,
business and wholesale customers in Canada. Our Bell Media
segment provides conventional, specialty and pay TV, digital media,
and radio broadcasting services to customers across Canada
and out-of-home advertising services. The consolidated nancial
statements (nancial statements) were approved by BCEs board
of directors on March 6, 2014.
NOTE 2 SIGNIFICANT ACCOUNTING POLICIES
A) BASIS OF PRESENTATION
The nancial statements were prepared in accordance with
International Financial Reporting Standards (IFRS), as issued by
the International Accounting Standards Board (IASB). The nancial
statements have been prepared on a historical cost basis, except
for certain nancial instruments that are measured at fair value
as described in our accounting policies.
All amounts are in millions of Canadian dollars, except where noted.
FUNCTIONAL CURRENCY
The nancial statements are presented in Canadian dollars, the
companys functional currency.
B) BASIS OF CONSOLIDATION
We consolidate the nancial statements of all our subsidiaries.
Subsidiaries are entities we control, where control is achieved
when the company is exposed or has the right to variable returns
from its involvement with the investee and has the current ability
to direct the activities of the investee that signicantly affect the
investees returns.
The results of subsidiaries acquired (sold) during the year are
(de-)consolidated from the date of acquisition (disposal). Where
necessary, adjustments are made to the nancial statements of
subsidiaries to conform their accounting policies with ours. All
intercompany transactions, balances, income and expenses are
eliminated on consolidation.
Changes in BCEs ownership interest in a subsidiary that do not
result in a loss of control are accounted for as equity transactions,
with no effect on net earnings or on other comprehensive income.
At December 31, 2013, BCE owned 44.1% of Bell Aliant, with the
remaining 55.9% publicly held. BCE controls Bell Aliant through its
right to appoint a majority of the board of directors of Bell Aliant.
C) REVENUE RECOGNITION
We recognize revenues from the sale of products or the rendering
of services when they are earned; specically when all the following
conditions are met:
the signicant risks and rewards of ownership are transferred
to customers and we retain neither continuing managerial
involvement nor effective control
there is clear evidence that an arrangement exists
the amount of revenues and related costs can be
measured reliably
it is probable that the economic benets associated with the
transaction will ow to the company.
In particular, we recognize:
fees for local, long distance and wireless services when we
provide the services
other fees, such as network access fees, licence fees, hosting
fees, maintenance fees and standby fees, over the term of
the contract
subscriber revenues when customers receive the service
revenues from the sale of equipment when the equipment is
delivered and accepted by customers
revenues on long-term contracts as services are provided,
equipment is delivered and accepted, and contract milestones
are met
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
advertising revenue, net of agency commissions, when
advertisements are aired on radio or TV, posted on our
website, or appear on the companys advertising panels and
street furniture.
We measure revenues at the fair value of the arrangement con-
sideration. We record payments we receive in advance, including
upfront non-refundable payments, as deferred revenues until we
provide the service or deliver the product to customers. Deferred
revenues are presented in Trade payables and other liabilities
or in Other non-current liabilities on the consolidated statements
of nancial position (statements of nancial position).
Revenues are reduced for customer rebates and allowances and
exclude sales and other taxes we collect from our customers.
We expense subscriber acquisition costs when the related services
are activated.
MULTIPLE-ELEMENT ARRANGEMENTS
We enter into arrangements that may include the sale of a number
of products and services together, primarily to our wireless and
business customers. When two or more products or services have
value to our customers on a stand-alone basis, we separately
account for each product or service according to the methods
previously described. The total price to the customer is allocated
to each product or service based on its relative fair value. When
an amount allocated to a delivered item is contingent upon the
delivery of additional items or meeting specied performance
conditions, the amount allocated to that delivered item is limited
to the non-contingent amount.
If the conditions to account for each product or service separately
are not met, we recognize revenues proportionately over the term
of the sale agreement.
SUBCONTRACTED SERVICES
We may enter into arrangements with subcontractors and others
who provide services to our customers. When we act as the
principal in these arrangements, we recognize revenues based on
the amounts billed to our customers. Otherwise, we recognize the
net amount that we retain as revenues.
D) SHARE-BASED PAYMENTS
Our equity-settled share-based payment arrangements include
stock options, restricted share units (RSUs), deferred share units
(DSUs) and employee savings plans (ESPs).
STOCK OPTIONS
We use a fair value-based method to measure the cost of our
employee stock options, based on the number of stock options
that are expected to vest. Compensation expense is adjusted for
subsequent changes in managements estimate of the number of
stock options that are expected to vest.
We credit contributed surplus for stock option expense recognized
over the vesting period. When stock options are exercised, we credit
share capital for the amount paid and the amounts previously
credited to contributed surplus.
RSUs
For each RSU granted, we recognize compensation expense equal to
the market value of a BCE common share at the date of grant based
on the number of RSUs expected to vest, recognized over the term
of the vesting period, with a corresponding credit to contributed
surplus. Additional RSUs are issued to reect dividends declared
on the common shares.
Compensation expense is adjusted for subsequent changes in
managements estimate of the number of RSUs that are expected
to vest. The effect of these changes is recognized in the period of
the change. Upon settlement of the RSUs, any difference between
the cost of shares purchased on the open market and the amount
credited to contributed surplus is reected in the decit. Vested RSUs
are settled in BCE common shares, DSUs, or a combination thereof.
DSUs
If compensation is elected to be taken in DSUs we issue DSUs
equal to the fair value of the services received. Additional DSUs are
issued to reect dividends declared on the common shares. DSUs
are settled in BCE common shares purchased on the open market
following the cessation of employment or when a director leaves
the board. We credit contributed surplus for the fair value of DSUs
at the issue date. Upon settlement of the DSUs, any difference
between the cost of shares purchased on the open market and the
amount credited to contributed surplus is reected in the decit.
ESPs
We recognize our contributions to our ESPs as compensation
expense. Employer ESP contributions accrue over a two-year
vesting period. We credit contributed surplus for the ESP expense
recognized over the vesting period, based on managements
estimate of the accrued contributions that are expected to vest.
Upon settlement of the ESPs, any difference between the cost
of shares purchased on the open market and the amount credited
to contributed surplus is reected in the decit.
E) INCOME AND OTHER TAXES
Current and deferred income tax expense is recognized in the
consolidated income statements (income statements), except to
the extent that the expense relates to items recognized in other
comprehensive income or directly in equity.
A current or non-current tax asset (liability) is the estimated tax
receivable (payable) on taxable earnings for the current or past
periods. We also record future tax liabilities, which are included in
Other non-current liabilities.
We use the liability method to account for deferred tax assets and
liabilities, which arise from:
temporary differences between the carrying amount of assets
and liabilities recognized in the statements of nancial position
and their corresponding tax bases
the carryforward of unused tax losses and credits, to the extent
they can be used in the future.
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
Deferred tax assets and liabilities are calculated at the tax rates
that are expected to apply when the asset or liability is recovered or
settled. Both our current and deferred tax assets and liabilities are
calculated using tax rates that have been enacted or substantively
enacted at the reporting date.
Deferred taxes are provided on temporary differences arising from
investments in subsidiaries, joint arrangements and associates,
except where we control the timing of the reversal of the temporary
difference and it is probable that the temporary difference will not
reverse in the foreseeable future.
Tax liabilities are, where permitted, offset against tax assets within
the same taxable entity and tax jurisdiction.
INVESTMENT TAX CREDITS (ITCs), OTHER TAX
CREDITS AND GOVERNMENT GRANTS
We recognize ITCs, other tax credits and government grants given on
eligible expenditures when it is reasonably assured that they will be
realized. They are presented as part of Trade and other receivables
when they are expected to be utilized in the next year. We use the
cost reduction method to account for ITCs and government grants,
under which the credits are applied against the expense or asset
to which the ITC or government grant relates.
F) CASH EQUIVALENTS
Cash equivalents are comprised of highly liquid investments with original maturities of three months or less from the date of purchase.
G) SECURITIZATION OF TRADE RECEIVABLES
Proceeds on the securitization of trade receivables are recognized as a collateralized borrowing as we do not transfer control and
substantially all the risks and rewards of ownership to another entity.
H) INVENTORY
We measure inventory at the lower of cost and net realizable
value. Inventory includes all costs to purchase, convert and
bring the inventories to their present location and condition.
We determine cost using specic identication for major equipment
held for resale and the weighted average cost formula for all other
inventory. We maintain inventory valuation reserves for inventory
that is slow-moving or obsolete, calculated using an inventory
ageing analysis.
I) PROPERTY, PLANT AND EQUIPMENT
We record property, plant and equipment at historical cost. Historical
cost includes expenditures that are attributable directly to the
acquisition or construction of the asset, including the purchase
cost, and labour.
Borrowing costs are capitalized for qualifying assets if the time to
build or develop is in excess of one year.
We initially measure and record asset retirement obligations at
managements best estimate using a present value methodology,
adjusted subsequently for any changes in the timing or amount of
the cash ows and changes in discount rates. We capitalize asset
retirement costs as part of the related assets and amortize them
into earnings over time. We also increase the asset retirement
obligation and record a corresponding amount in interest expense
to reect the passage of time.
Gains or losses on the sale or retirement of property, plant and
equipment are recognized in Note 8, Other (expense) income.
LEASES
Leases of property, plant and equipment are recognized as nance
leases when we obtain substantially all the risks and rewards of
ownership of the underlying assets. At the inception of the lease,
we record an asset together with a corresponding long-term
lease liability, at the lower of the fair value of the leased asset or
the present value of the minimum future lease payments. If there
is reasonable certainty that the lease transfers ownership of the
asset to us by the end of the lease term, the asset is amortized over
its useful life. Otherwise, the asset is amortized over the shorter of
its useful life and the lease term. The long-term lease liability is
measured at amortized cost using the effective interest method.
All other leases are classied as operating leases. Operating lease
payments are expensed on a straight-line basis over the term of
the lease.
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
J) INTANGIBLE ASSETS
FINITE-LIFE INTANGIBLE ASSETS
Finite-life intangible assets are carried at cost less accumulated
amortization and accumulated impairment losses, if any.
SOFTWARE
We record internal-use software at historical cost. Cost includes
expenditures that are attributable directly to the acquisition
or development of the software, including the purchase cost,
and labour.
Software development costs are capitalized when all the following
conditions are met:
technical feasibility can be demonstrated
management has the intent and the ability to complete the
asset for use or sale
it is probable that economic benets will be generated
costs attributable to the asset can be measured reliably.
CUSTOMER RELATIONSHIPS
Customer relationship assets are acquired through business com-
binations and are recorded at fair value at the date of acquisition.
PROGRAM AND FEATURE FILM RIGHTS
We account for program and feature lm rights as intangible assets
when these assets are acquired for the purpose of broadcasting.
Program and feature lm rights, which include producer advances
and licence fees paid in advance of receipt of the program or lm,
are stated at acquisition cost less accumulated amortization and
accumulated impairment losses, if any. Programs and feature lms
under licence agreements are recorded as assets and liabilities for
rights acquired and obligations incurred when:
the company receives a broadcast master and the cost is
known or reasonably determinable for new program and
feature lm licences
the licence term commences for licence period extensions or
syndicated programs.
Programs and feature lms are classied as non-current assets
with related liabilities classied as current or non-current, based
on the payment terms. Amortization of program and feature lm
rights is recorded in Operating costs in the income statements.
INDEFINITE-LIFE INTANGIBLE ASSETS
Brand assets, mainly comprised of the Bell and Bell Media brands,
and broadcast licences are acquired through business combinations
and are recorded at fair value at the date of acquisition, less
accumulated impairment losses, if any. Wireless spectrum licences
are recorded at acquisition cost, including borrowing costs when the
time to build or develop the related network is in excess of one year.
Currently there are no legal, regulatory, competitive or other factors
that limit the useful lives of our brands or spectrum licences.
K) DEPRECIATION AND AMORTIZATION
We depreciate property, plant and equipment and amortize nite-life
intangible assets on a straight-line basis over their estimated useful
lives. We review our estimates of useful lives on an annual basis
and adjust depreciation and amortization on a prospective basis,
if needed. Land and assets under construction or development
are not depreciated.
ESTIMATED USEFUL LIFE
Property, plant and equipment
Network infrastructure and equipment 2 to 50 years
Buildings 5 to 50 years
Finite-life intangible assets
Software 2 to 12 years
Customer relationships 6 to 30 years
Program and feature lm rights Up to 5 years
L) INVESTMENTS IN ASSOCIATES AND JOINT ARRANGEMENTS
Our nancial statements incorporate our share of the results of our
associates and joint ventures using the equity method of accounting,
except when the investment is classied as held for sale. Equity
income from investments is recorded in Note 8, Other (expense)
income in the income statements.
Investments in associates and joint ventures are recognized initially
at cost and adjusted thereafter to include the companys share of
income or loss and comprehensive income on an after-tax basis.
Investments are reviewed for impairment by comparing their
recoverable amount to their carrying amount.
We recognize our share of the assets, liabilities, revenues and
expenses of joint operations in accordance with the related
contractual agreements.
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
M) BUSINESS COMBINATIONS AND GOODWILL
Business combinations are accounted for using the acquisition
method. The consideration transferred in a business combination is
measured at fair value at the date of acquisition. Acquisition-related
transaction costs are expensed as incurred.
Identiable assets and liabilities, including intangible assets,
of acquired businesses are recorded at their fair values at the
date of acquisition. When we acquire control of a business, any
previously-held equity interest also is remeasured to fair value.
The excess of the purchase consideration and any previously-held
equity interest over the fair value of identiable net assets acquired
is goodwill. If the fair value of identiable net assets acquired
exceeds the purchase consideration and any previously-held equity
interest, the difference is recognized in earnings immediately as
a bargain purchase gain.
Changes in our ownership interest in subsidiaries that do not
result in a loss of control are accounted for as equity transactions.
Any difference between the change in the carrying amount
of non-controlling interest (NCI) and the consideration paid or
received is attributed to owners equity.
N) IMPAIRMENT OF NON-FINANCIAL ASSETS
Goodwill and indenite-life intangible assets are tested for
impairment annually or when there is an indication that the asset
may be impaired. Property, plant and equipment and nite-life
intangible assets are tested for impairment if events or changes
in circumstances, assessed quarterly, indicate that their carrying
amount may not be recoverable. For the purpose of impairment
testing, assets other than goodwill are grouped at the lowest level
for which there are separately identiable cash inows.
Impairment losses are recognized and measured as the excess
of the carrying value of the assets over their recoverable amount.
An assets recoverable amount is the higher of its fair value less costs
to sell and its value in use. Previously recognized impairment losses,
other than those attributable to goodwill, are reviewed for possible
reversal at each reporting date and, if the assets recoverable
amount has increased, all or a portion of the impairment is reversed.
GOODWILL IMPAIRMENT TESTING
We perform an annual test for goodwill impairment in the fourth
quarter for each of our cash generating units (CGUs) or groups
of CGUs to which goodwill is allocated and whenever there is an
indication that goodwill might be impaired.
A CGU is the smallest identiable group of assets that generates
cash inows that are independent of the cash inows from other
assets or groups of assets.
We identify any potential impairment by comparing the carrying
value of a CGU or groups of CGUs to its recoverable amount. The
recoverable amount of a CGU or group of CGUs is the higher of
its fair value less costs to sell and its value in use. Fair value less
costs to sell is based on estimates of discounted future cash ows
or other valuation methods. Cash ows are projected based on
past experience, actual operating results and business plans. When
the recoverable amount of a CGU or group of CGUs is less than
its carrying value, the recoverable amount is determined for its
identiable assets and liabilities. The excess of the recoverable
amount of the CGU or group of CGUs over the total of the amounts
assigned to its assets and liabilities is the recoverable amount
of goodwill.
An impairment charge is deducted from earnings for any excess
of the carrying value of goodwill over its recoverable amount. For
purposes of impairment testing of goodwill, BCEs CGUs or groups
of CGUs correspond to our reporting segments as disclosed in
Note 3, Segmented Information.
O) FINANCIAL INSTRUMENTS
AVAILABLE-FOR-SALE (AFS) FINANCIAL ASSETS
Our portfolio investments in equity securities are classied as AFS
and are presented in our statements of nancial position as Other
non-current assets. They have been designated as such based on
managements intentions or because they are not classied in any
other categories. These securities are recorded at fair value on the
date of acquisition, including related transaction costs, and are
adjusted to fair value at each reporting date. The corresponding
unrealized gains and losses are recorded in other comprehensive
income and are reclassied to Other (expense) income in the income
statements when realized or when an impairment is determined.
TRADE AND OTHER RECEIVABLES
Trade and other receivables, which include trade receivables
and other short-term receivables, are measured at amortized
cost using the effective interest method, net of any allowance for
doubtful accounts. An allowance for doubtful accounts is established
based on individually signicant exposures or on historical trends.
Factors considered when establishing an allowance include current
economic conditions, historical information and the reason for the
delay in payment. Amounts considered uncollectible are written off.
OTHER FINANCIAL LIABILITIES
Other nancial liabilities, which include trade payables and accruals,
compensation payable, obligations imposed by the Canadian
Radio-television and Telecommunications Commission (CRTC),
interest payable and long-term debt, are recorded at amortized
cost using the effective interest method.
COSTS OF ISSUING DEBT AND EQUITY
The cost of issuing debt is included as part of long-term debt and is
accounted for at amortized cost using the effective interest method.
The cost of issuing equity is reected in the consolidated statements
of changes in equity as a charge to the decit.
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
P) DERIVATIVE FINANCIAL INSTRUMENTS
We use derivative nancial instruments to manage interest rate
risk, foreign currency risk and cash ow exposures related to
share-based payment plans, capital expenditures, long-term debt
instruments and purchase commitments. We do not use derivative
nancial instruments for speculative or trading purposes.
HEDGE ACCOUNTING
To qualify for hedge accounting, we document the relationship
between the derivative and the related identied risk exposure
and our risk management objective and strategy. This includes
associating each derivative to a specic asset or liability, a specic
rm commitment, or a specic anticipated transaction.
We assess the effectiveness of a derivative in managing an identied
risk exposure when hedge accounting is initially applied, and on
an ongoing basis thereafter. If a hedge becomes ineffective, we
stop using hedge accounting.
FAIR VALUE HEDGES
Our fair value hedges consist of interest rate swaps used to
manage the effect of changes in interest rates relating to xed-rate
long-term debt. These swaps involve exchanging interest payments
without exchanging the notional amount on which the payments
are based. We record the exchange of payments as an adjustment
to interest expense on the hedged debt. We include the related net
receivable or payable from counterparties in Other current assets or
Trade payables and other liabilities for swaps due within one year
and in Other non-current assets or Other non-current liabilities for
swaps that have a maturity of more than one year. Changes in the
fair value of these derivatives and the related long-term debt are
recognized in Other (expense) income in the income statements and
offset, unless a portion of the hedging relationship is ineffective.
CASH FLOW HEDGES
Our cash ow hedges are used to mitigate foreign currency risk
on certain long-term debt instruments and purchase commitments,
as well as interest rate risk related to future debt issuances. We
use foreign currency forward contracts to manage the exposure
to anticipated transactions denominated in foreign currencies.
Changes in the fair value of these derivatives are recognized in our
consolidated statements of comprehensive income (statements of
comprehensive income), except for any ineffective portion, which
is recognized immediately in earnings. Realized gains and losses in
Accumulated other comprehensive income (loss) are reclassied to
the income statements in the same periods as the corresponding
hedged items are recognized in earnings. Cash ow hedges that
mature within one year are included in Other current assets or Trade
payables and other liabilities, whereas hedges that have a maturity
of more than one year are included in Other non-current assets or
Other non-current liabilities.
DERIVATIVES USED AS ECONOMIC HEDGES
Derivatives used to manage cash ow exposures related to
share-based payment plans and capital expenditures are marked
to market each reporting period because they do not qualify for
hedge accounting. The changes in fair value of these nancial assets
and liabilities are recognized in Note 8, Other (expense) income in
the income statements.
Q) POST-EMPLOYMENT BENEFIT PLANS
DEFINED BENEFIT (DB) AND OTHER POST-
EMPLOYMENT BENEFIT (OPEB) PLANS
We maintain DB pension plans that provide pension benets for
certain employees. Benets are based on the employees length of
service and average rate of pay during the highest paid consecutive
ve years of service. Most employees are not required to contribute
to the plans. The plans provide cost of living adjustments to help
protect the income of retired employees against ination.
We are responsible for adequately funding our DB pension plans.
We make contributions to them based on various actuarial cost
methods permitted by pension regulatory bodies. Contributions
reect actuarial assumptions about future investment returns,
salary projections and future service.
We provide OPEBs to some of our employees, including:
healthcare and life insurance benets during retirement,
which are being phased out over a ten-year period ending on
December 31, 2016. We do not fund most of these OPEB plans.
other benets, including workers compensation and medical
benets to former or inactive employees, their beneciaries
and dependants, from the time their employment ends until
their retirement starts, under certain circumstances.
We accrue our obligations and related costs under post-employment
benet plans, net of the fair value of the benet plan assets. Pension
and OPEB costs are determined using:
the projected unit credit method, prorated on years of service,
which takes into account future pay levels
a discount rate based on market interest rates of high-quality
corporate bonds with maturities that match the timing of
benets expected to be paid under the plans
managements best estimate of pay increases, retirement ages
of employees, expected healthcare costs and life expectancy.
We value post-employment benet plan assets at fair value using
current market values.
Post-employment benet plans current service cost is included in
operating costs. Interest on our post-employment benet obliga-
tions is recognized in net earnings and represents the accretion
of interest on the net obligations under the post-employment
benet plans. The interest rate is based on market conditions
that existed at the beginning of the year. Actuarial gains and
losses for all post-employment benet plans are recorded in other
comprehensive income in the period in which they occur and are
recognized immediately in the decit.
December 31 is the measurement date for our signicant post-
employ ment benet plans. Our actuaries perform a valuation at
least every three years to determine the actuarial present value
of the accrued DB pension plan and OPEB obligations. The most
recent actuarial valuation of our signicant pension plans was
December 31, 2012.
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
DEFINED CONTRIBUTION (DC) PENSION PLANS
We maintain DC pension plans that provide certain employees with
benets. Under these plans, we are responsible for contributing
a predetermined amount to an employees retirement savings,
based on a percentage of the employees salary.
We recognize a post-employment benet plans service cost for DC
pension plans when the employee provides service to the company,
essentially coinciding with our cash contributions.
Generally, new employees can participate only in the DC
pension plans.
R) PROVISIONS
Provisions are recognized when all the following conditions are met:
the company has a present legal or constructive obligation
based on past events
it is probable that an outow of economic resources will be
required to settle the obligation
the amount can be reasonably estimated.
Provisions are measured at the present value of the estimated
expenditures expected to settle the obligation, if the effect of the
time value of money is material. The present value is determined
using current market assessments of the discount rate and risks
specic to the obligation. The obligation increases as a result of
the passage of time, resulting in interest expense.
S) USING ESTIMATES AND KEY JUDGEMENTS
When preparing nancial statements, management makes estimates
and judgements relating to:
reported amounts of revenues and expenses
reported amounts of assets and liabilities
disclosure of contingent assets and liabilities.
We base our estimates on a number of factors, including historical
experience, current events and actions that the company may
undertake in the future, and other assumptions that we believe
are reasonable under the circumstances. By their nature, these
estimates and judgements are subject to measurement uncertainty
and actual results could differ. Our more signicant estimates and
judgements are described below.
ESTIMATES
USEFUL LIVES OF PROPERTY, PLANT AND EQUIPMENT
AND FINITE-LIFE INTANGIBLE ASSETS
Property, plant and equipment represent a signicant proportion
of our total assets. Changes in technology or our intended use of
these assets, as well as changes in business prospects or economic
and industry factors, may cause the estimated useful lives of these
assets to change.
The amounts reported in the nancial statements relating to DB
pension plans and OPEBs are determined using actuarial calculations
that are based on several assumptions.
The actuarial valuation uses managements assumptions for,
among other things, the discount rate, life expectancy, the rate of
compensation increase, trends in healthcare costs and expected
average remaining years of service of employees.
The most signicant assumptions used to calculate the net
post-employment benet plans cost are the discount rate and
life expectancy.
The discount rate is based on the yield on long-term, high-quality
corporate xed income investments, with maturities matching the
estimated cash ows of the post-employment benet plans. Life
expectancy is based on publicly available Canadian mortality tables
and is adjusted for the companys specic experience.
A lower discount rate and a higher life expectancy result in a higher
net post-employment benet obligation and a higher current
service cost.
IMPAIRMENT OF NON-FINANCIAL ASSETS
We make a number of estimates when calculating recoverable
amounts using discounted future cash ows or other valuation
methods to test for impairment. These estimates include the
assumed growth rates for future cash ows, the number of years
used in the cash ow model, and the discount rate.
DEFERRED TAX ASSETS
The amount of deferred tax assets is estimated with consideration
given to the timing, sources and amounts of future taxable income.
FAIR VALUE OF FINANCIAL INSTRUMENTS
Certain nancial instruments, such as investments in equity
securities, derivative nancial instruments and certain elements of
borrowings, are carried in the statements of nancial position at fair
value, with changes in fair value reected in the income statements
and the statements of comprehensive income. Fair values are
estimated by reference to published price quotations or by using
other valuation techniques that may include inputs that are not
based on observable market data, such as discounted cash ows.
CONTINGENCIES
We become involved in various litigation matters as a part of
our business. Pending litigations represent a potential cost to our
business. We estimate the amount of a loss by analyzing potential
outcomes and assuming various litigation and settlement strategies,
based on information that is available at the time.
ONEROUS CONTRACTS
A provision for onerous contracts is recognized when the unavoid-
able costs of meeting our obligations under a contract exceed the
expected benets to be received from a contract. The provision is
measured at the present value of the lower of the expected cost of
terminating the contract and the expected net cost of completing
the contract.
JUDGEMENTS
The determination of the discount rate used to value our post-
employ ment benet obligations requires judgement. The rate is set
by reference to market yields of high quality corporate bonds at
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
the beginning of each scal year. Signicant judgement is required
when setting the criteria for bonds to be included in the population
from which the yield curve is derived. The most signicant criteria
considered for the selection of bonds include the size of the issue
and credit quality, along with the identication of outliers, which
are excluded.
INCOME TAXES
The calculation of income taxes requires judgement in interpreting
tax rules and regulations. There are transactions and calculations for
which the ultimate tax determination is uncertain. Our tax lings also
are subject to audits, the outcome of which could change the amount
of current and deferred tax assets and liabilities. Management
believes that it has sufcient amounts accrued for outstanding tax
matters based on information that currently is available.
Management judgement is used to determine the amounts of
deferred tax assets and liabilities and future tax liabilities to be
recognized. In particular, judgement is required when assessing
the timing of the reversal of temporary differences to which future
income tax rates are applied.
MULTIPLE ELEMENT ARRANGEMENTS
Determining the amounts of revenue to be recognized for multiple
element arrangements requires judgement to establish the sepa-
rately identiable components and the allocation of the total price
between those components.
CONTINGENCIES
The determination of whether a loss is probable from litigation
and whether an outow of resources is likely requires judgement.
T) CHANGE IN ACCOUNTING ESTIMATE
As part of our annual review of the useful lives of property, plant
and equipment and nite-life intangible assets, we changed the
useful lives of certain network assets, customer premise equipment,
software and broadcasting equipment to better reect their useful
lives. The changes include both increases and decreases to useful
lives and have been applied prospectively effective January 1,
2013. On a net basis, depreciation and amortization expense for
these assets decreased by $139 million as a result of the changes.
U) ADOPTION OF NEW OR AMENDED ACCOUNTING STANDARDS
As required, effective January 1, 2013, we adopted the following
new or amended accounting standards on a retrospective basis.
IAS 19
In June 2011, the IASB amended IAS 19 Employee Benets. Annual
nance expense for a funded benet plan includes net interest
expense or income, calculated by applying the discount rate to
the net DB pension asset or liability, replacing the nance charge
and expected return on plan assets, thereby reducing the current
expected return on plan assets to a return that is equal to the
discount rate. Entities are required to segregate changes in the DB
obligation and in the fair value of plan assets into three components:
service costs, net interest on the net DB pension liabilities (assets)
and remeasurements of the net DB pension liabilities (assets). The
amendments also eliminate the corridor approach for recognizing
actuarial gains and losses and enhance disclosure about the risks
arising from DB plans.
These amendments did not impact our statements of nancial
position or our consolidated statements of cash ows (statements
of cash ows). The impact of the decrease in the expected return
on plan assets, as a result of the amended standard, on our income
statements and statements of comprehensive income is as follows.
FOR THE YEAR ENDED DECEMBER 31 2012
Interest on post-employment benet
obligation increase (242)
Income taxes decrease 65
Net earnings decrease (177)
Actuarial losses on post-employment benet plans
decrease/other comprehensive loss decrease 177
Earnings per share decrease (0.22)
IFRS 11
In May 2011, the IASB issued IFRS 11 Joint Arrangements, which
requires joint arrangements to be classied either as joint operations
or joint ventures depending on the contractual rights and obligations
of each investor. For joint operations, a company recognizes its
share of assets, liabilities, revenues and expenses of the joint
operation. An investment in a joint venture is accounted for using
the equity method.
As a result of adopting IFRS 11, we account for our 50% interest in
Inukshuk Limited Partnership (Inukshuk) as a joint operation. Inukshuk
was previously classied as a joint venture and accounted for using
the equity method. IFRS 11 did not have a material impact on our
income statements or our statements of cash ows. The impacts
on our statements of nancial position are as follows.
DECEMBER 31, 2012 JANUARY 1, 2012
Increase/(decrease) in:
Cash 2 2
Property, plant
and equipment 17
Intangible assets 96 208
Investments in associates
and joint ventures (97) (213)
Trade payables and
other liabilities 1 15
Debt due within one year 26
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
The following new or amended standards did not have a signicant
impact on our nancial statements.
IFRS 7
In December 2011, the IASB amended IFRS 7 Financial Instruments:
Disclosures, to require disclosures to better assess the effect or
potential effect of offsetting arrangements in the statements of
nancial position.
IFRS 10
In May 2011, the IASB issued IFRS 10 Consolidated Financial
Statements, which establishes principles for the presentation and
preparation of consolidated nancial statements. Under IFRS 10,
control is identied as the single basis of consolidation for all
types of entities.
IFRS 12
In May 2011, the IASB issued IFRS 12 Disclosure of Interests in Other
Entities, which integrates and enhances the disclosure requirements
for entities that have an interest in a subsidiary, a joint arrangement,
an associate or an unconsolidated structured entity.
The required disclosures are provided in Note 15, Investments in
Associates and Joint Ventures, Note 27, Related Party Transactions
and Note 28, Signicant Partly-Owned Subsidiaries.
IFRS 13
In May 2011, the IASB issued IFRS 13 Fair Value Measurement, which
establishes a single source of guidance for fair value measurement
under IFRS. IFRS 13 denes fair value, provides guidance on meas-
urement and introduces certain disclosure requirements.
The adoption of IFRS 13 did not result in any measurement adjust-
ments or changes to our fair value valuation techniques. The
enhanced disclosures are included in Note 23, Financial and
Capital Management.
IAS 1
In June 2011, the IASB amended IAS 1 Presentation of Financial
Statements, providing guidance on items contained in other
comprehensive income and their classication.
As a result of adopting the amendments to IAS 1, we have grouped
items within our statements of comprehensive income according to
whether or not they will be reclassied subsequently to net earnings.
V) FUTURE CHANGES TO ACCOUNTING STANDARDS
The following changes to IFRS are not expected to have a signicant
impact on our nancial statements.
IAS 36
In May 2013, the IASB amended IAS 36 Impairment of Assets, pro-
viding guidance on recoverable amount disclosures for non-nancial
assets. The amendments to IAS 36 must be applied retrospectively
for annual periods beginning on or after January 1, 2014.
IAS 39
In June 2013, the IASB amended IAS 39 Financial Instruments:
Recognition and Measurement, providing guidance on novation of
over-the-counter derivatives and continued designation for hedge
accounting. The amendments to IAS 39 must be applied retro-
spectively for annual periods beginning on or after January 1, 2014.
IAS 32
In December 2011, the IASB amended IAS 32 Financial Instruments:
Presentation, clarifying the application of the offsetting require-
ments of nancial assets and nancial liabilities. The amendments to
IAS 32 must be applied retrospectively for annual periods beginning
on or after January 1, 2014.
IFRS 9
In November 2009, the IASB issued IFRS 9 Financial Instruments,
introducing new requirements for classifying and measuring nan-
cial assets. In October 2010, the IASB reissued IFRS 9, incorporating
new requirements on accounting for nancial liabilities, and carrying
over from IAS 39 the requirements for derecognition of nancial
assets and nancial liabilities. In December 2011, the IASB amended
IFRS 9, deferring the mandatory effective date to annual periods
beginning on or after January 1, 2015. In November 2013, the IASB
further amended IFRS 9 to delay the mandatory effective date to a
future date to be determined. The amendment also provides relief
from restating comparative information and required disclosures
in IFRS 7 Financial Instruments: Disclosures.
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
NOTE 3 SEGMENTED INFORMATION
The accounting policies used in our segment reporting are the same
as those we describe in Note 2, Signicant Accounting Policies. Our
earnings are reported in four segments: Bell Wireline, Bell Wireless,
Bell Media and Bell Aliant. Our segments reect how we manage
our business and how we classify our operations for planning and
measuring performance. Accordingly, we operate and manage
our segments as strategic business units organized by products
and services. Segments negotiate sales with each other as if they
were unrelated parties.
We measure the performance of each segment based on segment
prot, which is equal to operating revenues less operating costs for
the segment. We report severance, acquisition and other costs and
depreciation and amortization by segment for external reporting
purposes. Substantially all of our nance costs and other (expense)
income are managed on a corporate basis and, accordingly, are
not reected in segment results.
Our operations and virtually all of our assets are located in Canada.
Our Bell Wireline segment provides local telephone, long dis-
tance, data, including Internet access and TV, as well as other
communications services and products to Bells residential, small
and medium-sized business and large enterprise customers,
primarily in the urban areas of Ontario and Qubec. In addition,
this segment includes our wholesale business, which buys and sells
local telephone, long distance, data and other services from or to
resellers and other carriers.
Our Bell Wireless segment provides wireless voice and data
communication products and services to Bells residential, small
and medium-sized business and large enterprise customers
across Canada.
Our Bell Media segment provides conventional, specialty and pay
TV, digital media, and radio broadcasting services to customers
across Canada and out-of-home advertising services. On July 5,
2013, BCE acquired 100% of the issued and outstanding shares of
Astral Media Inc. (Astral). The results of Astral are included in our
Bell Media segment from the date of acquisition.
Our Bell Aliant segment provides local telephone, long distance,
Internet, data, TV, wireless, home security and value-added business
solutions to residential and business customers in the Atlantic
provinces and in rural and regional areas of Ontario and Qubec.
SEGMENTED INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 2013 NOTE
BELL
WIRELINE
BELL
WIRELESS
BELL
MEDIA
INTER-
SEGMENT
ELIMINA-
TIONS BELL
BELL
ALIANT
INTER-
SEGMENT
ELIMINA-
TIONS BCE
Operating revenues
External customers 9,754 5,794 2,342 17,890 2,510 20,400
Inter-segment 343 55 215 (394) 219 249 (468)
Total operating revenues 10,097 5,849 2,557 (394) 18,109 2,759 (468) 20,400
Operating costs 5 (6,303) (3,509) (1,874) 394 (11,292) (1,487) 468 (12,311)
Segment prot
(1)
3,794 2,340 683 6,817 1,272 8,089
Severance, acquisition and other costs 6 (110) (2) (283) (395) (11) (406)
Depreciation and amortization 13,14 (2,248) (479) (110) (2,837) (543) (3,380)
Finance costs
Interest expense 7 (931)
Interest on post-employment
benet obligations 21 (150)
Other expense 8 (6)
Income taxes 9 (828)
Net earnings 2,388
Goodwill 17 2,521 2,302 2,588 7,411 970 8,381
Indenite-life intangible assets 14 1,315 2,502 2,708 6,525 340 6,865
Capital expenditures 2,247 639 115 3,001 570 3,571
(1) The chief operating decision maker uses only one measure of prot to make decisions and assess performance, being operating revenues less operating costs.
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
FOR THE YEAR ENDED DECEMBER 31, 2012 NOTE
BELL
WIRELINE
BELL
WIRELESS
BELL
MEDIA
INTER-
SEGMENT
ELIMINA-
TIONS BELL
BELL
ALIANT
INTER-
SEGMENT
ELIMINA-
TIONS BCE
Operating revenues
External customers 9,905 5,524 2,022 17,451 2,527 19,978
Inter-segment 315 62 161 (344) 194 234 (428)
Total operating revenues 10,220 5,586 2,183 (344) 17,645 2,761 (428) 19,978
Operating costs 5 (6,300) (3,471) (1,622) 344 (11,049) (1,469) 428 (12,090)
Segment prot
(1)
3,920 2,115 561 6,596 1,292 7,888
Severance, acquisition and other costs 6 (86) (11) (20) (117) (16) (133)
Depreciation and amortization 13,14 (2,231) (488) (108) (2,827) (565) (3,392)
Finance costs
Interest expense 7 (865)
Interest on post-employment
Other income 8 269
Income taxes 9 (760)
Net earnings 2,876
Goodwill 17 2,521 2,302 1,393 6,216 969 7,185
Indenite-life intangible assets 14 2,403 1,410 1,511 5,324 339 5,663
Capital expenditures 2,193 637 93 2,923 592 3,515
(1) The chief operating decision maker uses only one measure of prot to make decisions and assess performance, being operating revenues less operating costs.
REVENUES BY PRODUCT
FOR THE YEAR ENDED DECEMBER 31 2013 2012
Local and access
(1)
2,497 2,688
Long distance 722 801
Data
(1)
5,828 5,666
Wireless 5,362 5,086
Media 2,342 2,022
Equipment and other
(1)
1,139 1,188
Total external revenues 17,890 17,451
Inter-segment revenues 219 194
Bell 18,109 17,645
Bell Aliant 2,759 2,761
Inter-segment eliminations (468) (428)
BCE 20,400 19,978
(1) We have reclassied amounts for the prior year to make them consistent with the presentation for the current year.
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
NOTE 4 ACQUISITION OF ASTRAL
On July 5, 2013, BCE acquired 100% of the issued and outstanding
shares of Astral. Astral is a media company that operates specialty
and pay TV channels, radio stations and digital media properties
across Canada and provides out-of-home advertising services.
BCE acquired Astral to enhance our competitive position in French-
language broadcasting in Qubec, control content costs, and
increase opportunities for cross-platform innovation and advertising
packages spanning digital, TV, radio and out-of-home advertising.
Astrals results are included in our Bell Media segment.
The purchase price allocation includes certain estimates and will be
nalized upon completion of the sale of certain assets. The following
table summarizes the fair value of the consideration given and the
fair value assigned to each major class of assets and liabilities.
TOTAL
Cash purchase consideration 2,876
Current assets 39
Assets held for sale 687
Property, plant and equipment 198
Finite-life intangible assets 163
Indenite-life intangible assets 1,238
Non-current assets 15
Trade payables and other liabilities (183)
Long-term debt (397)
Net deferred tax liabilities (207)
Non-current liabilities (65)
1,641
Cash and cash equivalents 32
Fair value of net assets acquired 1,673
Goodwill
(1)
1,203
(1) Goodwill arises principally from the ability to leverage media content, the
reputation of assembled workforce and future growth. Goodwill is not deductible
for tax purposes. The allocation of goodwill to our groups of CGUs will be nalized
upon completion of the sale of the assets held for sale.
As part of its approval of the Astral acquisition, the CRTC ordered
BCE to spend $246.9 million in new benets for French- and
English-language TV, radio and lm content development, support
for emerging Canadian musical talent, training and professional
development for Canadian media, and new consumer participation
initiatives. The present value of this tangible benets obligation,
amounting to $230 million, was recorded as an acquisition cost in
Severance, acquisition and other costs in the income statement.
Total acquisition costs relating to Astral, including the tangible
benets obligation, amounted to $266 million for the year ended
December 31, 2013.
Astral revenues of $412 million and net earnings of $77 million are
included in the income statement from the date of acquisition.
BCEs consolidated operating revenues and net earnings for the
year ended December 31, 2013 would have been $20,759 million
and $2,385 million, respectively, had the Astral acquisition occurred
on January 1, 2013. These pro forma amounts exclude operating
revenues and net earnings attributable to the Astral radio stations
and TV services to be divested and reect nancing costs related to
the acquisition, the amortization of certain elements of the purchase
price allocation, the elimination of intercompany transactions and
related tax adjustments.
ASSETS HELD FOR SALE
Consistent with the CRTCs Common Ownership Policy for radio, BCE is required to sell ten Bell Media and Astral English-language radio
stations as part of the transaction. BCE also is required to sell eleven Astral TV services in order to comply with conditions attached to the
Competition Bureau and CRTC approvals.
As required by the CRTC and the Competition Bureau, the management and control of the assets to be divested was transferred to an
independent trustee pending their sale to third parties. They are classied as Assets held for sale in the statement of nancial position
and are recorded at their net realizable value.
Agreements are in place, subject to closing conditions, termination rights and applicable regulatory approvals, to sell all of the assets.
In Q1 2014, we completed the sale of six TV services and ve radio stations for total proceeds of $427.2 million.
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
NOTE 5 OPERATING COSTS
FOR THE YEAR ENDED DECEMBER 31 NOTE 2013 2012
Labour costs
Wages, salaries and related taxes and benets
(1)
(4,258) (4,126)
Post-employment benet plans service cost (net of capitalized amounts) 21 (292) (225)
Other labour costs
(1) (2)
(985) (1,021)
Less:
Capitalized labour
(1)
990 933
Total labour costs (4,545) (4,439)
Cost of revenues
(1) (3)
(5,908) (5,770)
Other operating costs
(1) (4)
(1,858) (1,881)
Operating costs (12,311) (12,090)
(2) Other labour costs include contractor and outsourcing costs.
(3) Cost of revenues includes costs of wireless devices and other equipment sold, network and content costs, and payments to other carriers.
(4) Other operating costs include marketing, advertising and sales commission costs, bad debt expense, taxes other than income taxes, information technology costs, professional
service fees and rent.
Research and development expenses of $201 million and $227 million are included in operating costs for 2013 and 2012, respectively.
NOTE 6 SEVERANCE, ACQUISITION AND OTHER COSTS
Severance (116) (107)
Acquisition (266) (9)
Other (24) (17)
Total severance, acquisition and other costs (406) (133)
ACQUISITION COSTS
Acquisition costs consist of transaction costs, such as legal and bankers fees, related to completed or potential acquisitions, employee
severance costs related to the purchase or sale of a business and the costs to integrate acquired companies into Bells operations, when
the integration costs are signicant.
Acquisition costs for the year ended December 31, 2013 include $230 million relating to the CRTC tangible benets obligation described
in Note 4, Acquisition of Astral.
NOTE 7 INTEREST EXPENSE
Interest expense on long-term debt (850) (792)
Interest expense on other debt (97) (92)
Capitalized interest 16 19
Total interest expense (931) (865)
Interest expense on long-term debt includes interest on nance leases of $174 million and $158 million for 2013 and 2012, respectively.
Capitalized interest was calculated using an average rate of 5.03% and 5.40% for 2013 and 2012, respectively, which represents the
weighted average interest rate on our outstanding long-term debt.
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
NOTE 8 OTHER (EXPENSE) INCOME
Net mark-to-market gains on derivatives used as economic hedges 94 22
Pension surplus distribution 36
(Losses) gains on investments (7) 256
Premiums on early redemption of debt 20 (55)
Losses on disposal/retirement of software, plant and equipment (44) (36)
Equity (loss) income 15 (32) 1
Other 2 26
Other (expense) income (6) 269
GAINS ON INVESTMENTS
In December 2012, Inukshuk, a joint operation owned 50% by
BCE, sold certain spectrum licences and network equipment to
its owners at fair market value. BCE and the non-related venturer
each purchased 50% of the assets having a fair market value
of $1,181 million and a carrying value of $250 million. As a result,
BCE recorded:
a gain on investment of $233 million representing BCEs 50%
share of the Inukshuk gain relating to the assets sold to the
non-related venturer
spectrum licences and network equipment of $233 million
representing the fair value of the assets purchased less BCEs
share of the Inukshuk gain.
EQUITY INVESTEES
In 2013, we recorded an equity loss of $25 million, representing our share of a goodwill impairment charge and a write-down of customer
relationship intangibles recognized by an equity investee. We also recognized a decrease of $14 million in the fair value of a related
nancial asset in Losses (gains) on investments.
NOTE 9 INCOME TAXES
The following table shows the signicant components of income taxes deducted from net earnings.
Current taxes
Current taxes (888) (756)
Resolution of uncertain tax positions 51 131
Change in estimate relating to prior periods 53 48
Effect of change in provincial corporate tax rate 2
Deferred taxes
Deferred taxes relating to the origination and reversal of temporary differences 72 (26)
Effect of change in provincial corporate tax rate (6) (37)
Change in estimate relating to prior periods (33) (39)
Recognition and utilization of loss carryforwards (68) (130)
Resolution of uncertain tax positions (10) 52
Other 1 (5)
Total income taxes (828) (760)
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
The following table reconciles the amount of reported income taxes in the income statements with income taxes calculated at a statutory
income tax rate of 26.6% for each of 2013 and 2012.
Earnings before income taxes 3,216 3,636
Applicable tax rate 26.6% 26.6%
Income taxes computed at applicable statutory rates (855) (967)
Non-taxable portion of gains on investments 66
Resolution of uncertain tax positions 41 183
Effect of change in provincial corporate tax rate (6) (35)
Change in estimate relating to prior periods 20 9
Other (28) (16)
Total income taxes (828) (760)
Average effective tax rate 25.7% 20.9%
The following table shows aggregate current and deferred taxes relating to items recognized outside the income statements.
AT DECEMBER 31 2013 2012
OTHER
COMPREHENSIVE
INCOME DEFICIT NCI
OTHER
COMPREHENSIVE
INCOME DEFICIT
Current taxes 1 1 170 2
Deferred taxes (390) 7 1 226 3
Total income tax (expense) recovery (389) 8 1 396 5
The following table shows deferred taxes resulting from temporary differences between the carrying amounts of assets and liabilities
recognized in the statements of nancial position and their corresponding tax basis, as well as tax loss carryforwards.
NET DEFERRED TAX LIABILITY
NON-
CAPITAL
LOSS CARRY-
FORWARDS
POST-
EMPLOY MENT
BENEFIT
PLANS

INDEFINITE-
LIFE
INTANGIBLE
ASSETS
PROPERTY,
PLANT AND
EQUIPMENT
AND
FINITE-LIFE
INTANGIBLE
ASSETS
INVESTMENT
TAX CREDITS
PARTNERSHIP
INCOME
DEFERRAL
CRTC
TANGIBLE
BENEFITS OTHER TOTAL
January 1, 2012 234 726 (1,212) (433) (106) (97) 73 263 (552)
Income statement (130) (26) (57) (20) 46 9 (27) 20 (185)
Other comprehensive income 227 (1) 226
Decit 3 3
Other (9) (9)
December 31, 2012 104 927 (1,269) (453) (60) (88) 46 276 (517)
Income statement (68) (3) (56) (105) 39 85 46 18 (44)
Other comprehensive income (384) (6) (390)
Decit 7 7
Acquisition of Astral 7 (202) (43) 1 30 (207)
NCI 1 1
Other 6 (9) (3)
December 31, 2013 36 547 (1,521) (601) (21) (3) 93 317 (1,153)
(2) The taxation year-end of certain of Bell Aliants corporate subsidiaries differs from the partnership year end. This results in a deferral of partnership income for tax purposes.
(1) (2) (1) (1)
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
At December 31, 2013, BCE had $214 million of non-capital loss
carryforwards. We:
recognized a deferred tax asset of $36 million, of which
$27 million related to Bell Media, for approximately $138 million
of the non-capital loss carryforwards. These non-capital loss
carryforwards expire in varying annual amounts from 2026
to 2033.
did not recognize a deferred tax asset for approximately
$76 million of non-capital loss carryforwards. This balance
expires in varying annual amounts from 2023 to 2032.
At December 31, 2013, BCE had $828 million of unrecognized capital
loss carryforwards which can be carried forward indenitely.
At December 31, 2012, BCE had $484 million of non-capital loss
carryforwards. We:
recognized a deferred tax asset of $104 million, of which
$86 million related to Bell Media, for approximately $400 million
of the non-capital loss carryforwards. These non-capital loss
carryforwards expire in varying annual amounts from 2025
to 2032.
did not recognize a deferred tax asset for approximately
$84 million of non-capital loss carryforwards. This balance
expires in varying annual amounts from 2016 to 2030.
At December 31, 2012, BCE had $772 million of unrecognized capital
loss carryforwards which can be carried forward indenitely.
NOTE 10 EARNINGS PER SHARE
The following table shows the components used in the calculation of basic and diluted earnings per common share for earnings attributable
to common shareholders.
Net earnings attributable to common shareholders basic 1,975 2,456
Dividends declared per common share (in dollars) 2.33 2.22
Weighted average number of common shares outstanding (in millions)
Weighted average number of common shares outstanding basic 775.8 774.3
Assumed exercise of stock options
(1)
0.6 0.3
Weighted average number of common shares outstanding diluted 776.4 774.6
(1) The calculation of the assumed exercise of stock options includes the effect of the average unrecognized future compensation cost of dilutive options. It does not include
anti-dilutive options which are options that will not be exercised because their exercise price is higher than the average market value of a BCE common share. The number of
excluded options was 2,621,806 in 2013 and 2,651,928 in 2012.
NOTE 11 TRADE AND OTHER RECEIVABLES
Trade receivables
(1)
23 3,074 2,975
Allowance for doubtful accounts 23 (79) (97)
Allowance for revenue adjustments (90) (90)
Current tax receivable 36 36
Other accounts receivable 102 122
Total trade and other receivables 3,043 2,946
(1) The details of securitized trade receivables are set out in Note 19, Debt Due Within One Year.
NOTE 12 INVENTORY
Work in progress 65 70
Finished goods 342 347
Provision (24) (25)
Total inventory 383 392
The total amount of inventory subsequently recognized as an expense in cost of revenues was $2,352 million in 2013 and $2,377 million in 2012.
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
NOTE 13 PROPERTY, PLANT AND EQUIPMENT
NETWORK
INFRASTRUCTURE
AND EQUIPMENT
LAND AND
BUILDINGS
ASSETS UNDER
CONSTRUCTION TOTAL
COST
January 1, 2013 52,925 4,789 1,202 58,916
Additions 2,014 60 1,623 3,697
Acquisition through business combinations 159 39 2 200
Transfers 1,066 125 (1,551) (360)
Retirements and disposals (1,490) (17) (1,507)
December 31, 2013 54,674 4,996 1,276 60,946
ACCUMULATED DEPRECIATION
January 1, 2013 36,539 2,370 38,909
Depreciation 2,545 189 2,734
Retirements and disposals (1,414) (14) (1,428)
Other (5) (7) (12)
December 31, 2013 37,665 2,538 40,203
NET CARRYING AMOUNT
At January 1, 2013 16,386 2,419 1,202 20,007
At December 31, 2013 17,009 2,458 1,276 20,743
(1) Includes assets under nance leases.
NETWORK
INFRASTRUCTURE
AND EQUIPMENT
LAND AND
BUILDINGS
ASSETS UNDER
CONSTRUCTION TOTAL
COST
January 1, 2012 49,747 4,684 1,164 55,595
Additions 2,529 88 1,529 4,146
Transfers 1,191 49 (1,491) (251)
Retirements and disposals (542) (32) (574)
December 31, 2012 52,925 4,789 1,202 58,916
ACCUMULATED DEPRECIATION
January 1, 2012 34,581 2,212 36,793
Depreciation 2,499 179 2,678
Retirements and disposals (489) (29) (518)
Other (52) 8 (44)
December 31, 2012 36,539 2,370 38,909
NET CARRYING AMOUNT
At January 1, 2012 15,166 2,472 1,164 18,802
At December 31, 2012 16,386 2,419 1,202 20,007
(1) Includes assets under nance leases.
(1)
(2) (2) (1)
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
FINANCE LEASES
BCEs signicant nance leases are for satellites and ofce premises. The ofce leases have a typical lease term of 15 years. The leases
for satellites, used to provide programming to our Bell TV customers, have a term of 15 years. The satellite leases are non-cancellable.
The following table shows additions to and the net carrying amount of assets under nance leases.
ADDITIONS NET CARRYING AMOUNT
2013 2012 2013 2012
Network infrastructure and equipment 319 814 1,655 1,596
Land and buildings 3 556 596
Total 322 814 2,211 2,192
The following table provides a reconciliation of our minimum future lease payments to the present value of our nance lease obligations.
AT DECEMBER 31, 2013 NOTE 2014 2015 2016 2017 2018 THEREAFTER TOTAL
Minimum future lease payments 23 489 418 288 260 237 1,618 3,310
Less:
Future nance costs (152) (139) (128) (118) (106) (419) (1,062)
Present value of future lease obligations 337 279 160 142 131 1,199 2,248
NOTE 14 INTANGIBLE ASSETS
FINITE-LIFE INDEFINITE-LIFE
YEAR ENDED
DECEMBER 31, 2013 SOFTWARE
CUSTOMER
RELATION-
SHIPS
PROGRAM
AND
FEATURE
FILM
RIGHTS OTHER TOTAL BRAND
SPECTRUM
AND OTHER
LICENCES
BROADCAST
LICENCES TOTAL
TOTAL
INTANGIBLE
ASSETS
COST
January 1, 2013 5,949 847 263 270 7,329 2,242 2,128 1,293 5,663 12,992
Additions 238 570 808 4 4 812
Acquisition through
business
combinations 14 25 101 23 163 102 1,136 1,238 1,401
Transfers 377 377 (25) (25) 352
Retirements
and disposals (537) (7) (544) (15) (15) (559)
Amortization included
in operating costs (545) (545) (545)
December 31, 2013 6,041 865 389 293 7,588 2,344 2,132 2,389 6,865 14,453
ACCUMULATED
AMORTIZATION
January 1, 2013 4,399 325 85 4,809 4,809
Amortization 577 50 19 646 646
Retirements
and disposals (535) (7) (542) (542)
Other (12) (12) (12)
December 31, 2013 4,429 368 104 4,901 4,901
NET CARRYING
AMOUNT
January 1, 2013 1,550 522 263 185 2,520 2,242 2,128 1,293 5,663 8,183
December 31, 2013 1,612 497 389 189 2,687 2,344 2,132 2,389 6,865 9,552
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
FINITE-LIFE INDEFINITE-LIFE
YEAR ENDED
DECEMBER 31, 2012 SOFTWARE
CUSTOMER
RELATION-
SHIPS
PROGRAM
AND
FEATURE
FILM
RIGHTS OTHER TOTAL BRAND
SPECTRUM
AND OTHER
LICENCES
BROADCAST
LICENCES TOTAL
TOTAL
INTANGIBLE
ASSETS
COST
January 1, 2012 5,788 847 364 278 7,277 2,242 1,895 1,293 5,430 12,707
Additions 225 437 662 233 233 895
Transfers 354 354 354
Retirements
and disposals (418) (8) (426) (426)
Amortization included
in operating costs (538) (538) (538)
December 31, 2012 5,949 847 263 270 7,329 2,242 2,128 1,293 5,663 12,992
ACCUMULATED
AMORTIZATION
January 1, 2012 4,140 274 72 4,486 4,486
Amortization 642 51 21 714 714
Retirements
and disposals (411) (8) (419) (419)
Other 28 28 28
December 31, 2012 4,399 325 85 4,809 4,809
NET CARRYING
AMOUNT
January 1, 2012 1,648 573 364 206 2,791 2,242 1,895 1,293 5,430 8,221
December 31, 2012 1,550 522 263 185 2,520 2,242 2,128 1,293 5,663 8,183
NOTE 15 INVESTMENTS IN ASSOCIATES
AND JOINT VENTURES
Summarized nancial information in respect to BCEs associates and joint ventures are tabled below. For a list of associates and joint
ventures please see Note 27, Related Party Transactions.
Assets 3,878 3,811
Liabilities (2,164) (2,040)
Total net assets 1,714 1,771
BCEs share of net assets 775 800
Revenues 805 517
Expenses (912) (505)
Total net (loss) earnings (107) 12
BCEs share of net (loss) earnings (32) 1
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
Q9 NETWORKS INC. (Q9)
In October 2012, an investor group comprising BCE, Ontario Teachers
Pension Plan Board (Teachers), Providence Equity Partners LLC
(Providence) and Madison Dearborn Partners LLC (Madison
Dearborn) completed its acquisition of Canadian data centre
operator Q9. Of the $1.1 billion purchase price, Teachers, Providence
and Madison Dearborn together contributed $430 million and BCE
provided $185 million of the equity funding. New debt nancing
by Q9 also funded a portion of the acquisition price. Our 35.3%
ownership in Q9 is accounted for using the equity method.
Concurrent with the closing, BCE and its partners settled the reverse
break-fee proceedings initiated in 2008 after the termination
of the proposed privatization of BCE. Under the settlement, BCE
received certain non-cash considerations, including increased
equity ownership in Q9, and an option at a favourable valuation
to acquire the partners entire equity interest in Q9 in the future.
MAPLE LEAF SPORTS AND ENTERTAINMENT LTD. (MLSE)
In August 2012, BCE, together with the BCE Master Trust Fund
(Master Trust), in a joint ownership arrangement with Rogers
Communications Inc. (Rogers), acquired a net 75% ownership
position in MLSE. BCEs net cash contribution totalled $398 million.
Through a co-investment arrangement with BCE, the Master Trust,
an independent trust that holds pension fund investments serving
the pension obligations of the BCE group pension plans, contributed
$135 million toward the MLSE acquisition. BCE and the Master
Trust own an aggregate 37.5% interest in MLSE through a holding
company controlled by BCE in which BCE and the Master Trust hold
approximate interests of 75% and 25%, respectively. BCE recorded
an investment in MLSE totalling $533 million and a liability of
$135 million for BCEs obligation to repurchase the Master Trusts
interest at a price not less than an agreed minimum price should
the Master Trust exercise its put option. BCE accounts for the
37.5% interest in MLSE using the equity method. The obligation
to repurchase is recorded in Other non-current liabilities and is
marked to market each reporting period. The gain or loss is recorded
in Other (expense) income.
As required by the terms of the National Hockey Leagues approval
of the MLSE acquisition, BCEs governance rights with respect to our
ownership interest in the Montreal Canadiens Hockey Club were
modied. While our ownership interest in the Montreal Canadiens
Hockey Club remains unchanged, we no longer have the ability to
exercise signicant inuence over its operations. As such, in 2012,
the investment was reclassied from investment in associates to
AFS investments and is included in Other non-current assets.
NOTE 16 OTHER NON-CURRENT ASSETS
Net assets of post-employment benet plans 21 136 106
AFS publicly-traded and privately-held investments 91 96
Long-term notes and other receivables 45 41
Derivative assets 199 219
Other 227 175
Total other non-current assets 698 637
NOTE 17 GOODWILL
The following table provides details about the changes in the carrying amounts of goodwill for the years ended December 31, 2013 and
2012. BCEs groups of CGUs correspond to our reporting segments.
BELL WIRELINE BELL WIRELESS BELL MEDIA BELL ALIANT BCE
Balance at January 1 and December 31, 2012 2,521 2,302 1,393 969 7,185
Acquisitions and other 1,195 1 1,196
Balance at December 31, 2013 2,521 2,302 2,588 970 8,381
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
IMPAIRMENT TESTING
As described in Note 2, Signicant Accounting Policies, goodwill is
tested annually for impairment by comparing the carrying value of
a group of CGUs to the recoverable amount, where the recoverable
amount is the higher of fair value or value in use.
VALUE IN USE
The value in use for our groups of CGUs is determined by discounting
ve-year cash ow projections from business plans reviewed
by senior management. The projections reect managements
expectations of revenue, segment prot, capital expenditures,
working capital and operating cash ows, based on past experience
and future expectations of operating performance.
Cash ows beyond the ve-year period are extrapolated using
perpetuity growth rates. None of the perpetuity growth rates
exceed the long-term historical growth rates for the markets in
which we operate.
The discount rates are applied to the cash ow projections and
are derived from the weighted average cost of capital for each
group of CGUs.
The following table shows the key assumptions used to estimate
the recoverable amounts of the groups of CGUs.
ASSUMPTIONS USED
GROUPS OF CGUs
PERPETUITY
GROWTH RATE DISCOUNT RATE
Bell Wireline 0.9% 7.2%
Bell Wireless 0.8% 9.1%
Bell Media 2.0% 8.3%
Bell Aliant 0.2% 6.1%
We believe that any reasonable possible change in the key assump-
tions on which the estimate of recoverable amounts of the groups of
CGUs is based would not cause their carrying amounts to exceed
their recoverable amounts.
NOTE 18 TRADE PAYABLES AND OTHER LIABILITIES
Trade payables and accruals 2,373 2,030
Compensation payable 576 608
Deferred revenues 743 719
Taxes payable 136 136
Severance and other costs payable 73 51
CRTC deferral account obligation 23 80 53
CRTC tangible benets obligation 23 100 62
Other current liabilities 258 257
Total trade payables and other liabilities 4,339 3,916
NOTE 19 DEBT DUE WITHIN ONE YEAR
FOR THE YEAR ENDED DECEMBER 31 NOTE
WEIGHTED AVERAGE
INTEREST RATE 2013 2012
Bank advances 2.61% 129 221
Notes payable 1.22% 843 477
Total bank advances and notes payable 23 972 698
Loans secured by trade receivables 23 1.78% 921 935
Long-term debt due within one year
(1)
Bell Canada 5.07% 340 401
CTV Specialty Television Inc. (CTV Specialty) 6.04% 305
Bell Aliant 5.42% 40 100
685 501
Net unamortized (discount) premium (2) 8
Unamortized debt issuance costs (5) (6)
Total long-term debt due within one year 20 678 503
Total debt due within one year 2,571 2,136
(1) Included in long-term debt due within one year is the current portion of nance leases of $337 million at December 31, 2013 and $386 million at December 31, 2012.
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
SECURITIZED TRADE RECEIVABLES
The Bell Canada and Bell Aliant securitized trade receivables are recorded as oating rate revolving loans secured by certain trade
receivables and expire on October 31, 2016 and November 30, 2016, respectively.
The following table provides further details on the securitized trade receivables.
BELL CANADA BELL ALIANT
FOR THE YEAR ENDED DECEMBER 31 2013 2012 2013 2012
Average interest rate
(1)
1.84% 1.82% 1.54% 1.51%
Pledged trade receivables 1,899 2,058 162 181
(1) Bell Canadas and Bell Aliants interest rates differ since the terms and conditions of the revolving loans are different.
Bell Canada and Bell Aliant continue to service these trade receiv-
ables. The buyers interest in the collection of these trade receivables
ranks ahead of the interests of Bell Canada and Bell Aliant, which
means that Bell Canada and Bell Aliant are exposed to certain risks
of default on the amounts securitized.
Bell Canada and Bell Aliant have provided various credit enhance-
ments in the form of overcollateralization and subordination of
their retained interests.
The buyers will reinvest the amounts collected by buying additional
interests in the Bell Canada and Bell Aliant trade receivables
until the securitized trade receivables agreements expire or are
terminated. The buyers and their investors have no further claim
on Bell Canadas and Bell Aliants other assets if customers do not
pay amounts owed.
CREDIT FACILITIES
Bell Canada may issue up to $2 billion of notes under its commercial paper program, supported by a committed revolving bank credit
facility. The total amount of this credit facility may be drawn at any time.
The table below is a summary of our total bank credit facilities at December 31, 2013.
TOTAL
AVAILABLE DRAWN
LETTERS
OF CREDIT
COMMERCIAL PAPER
OUTSTANDING
NET
AVAILABLE
Committed credit facilities
Bell Canada
Revolving facility
(1)
2,500 837 1,663
Unsecured committed term acquisition
credit facility (Astral) 1,000 1,000
Other 286 240 46
Bell Aliant
Revolving facility
(1)
750 55 193 502
Other 234 70 134 30
Total committed credit facilities 4,770 1,125 567 837 2,241
Non-committed credit facilities
Bell Canada 817 4 640 173
Bell Aliant 3 3
Total non-committed credit facilities 820 4 640 176
Total committed and non-committed
credit facilities 5,590 1,129 1,207 837 2,417
(1) Bell Canadas $2,500 million revolving facility expires in November 2018 and Bell Aliants $750 million revolving facility expires in June 2017.
RESTRICTIONS
Some of the credit agreements:
require us to meet specic nancial ratios
require us to offer to repay and cancel the credit agreement upon a change of control of BCE or Bell Canada.
We are in compliance with all conditions and restrictions.
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
NOTE 20 LONG-TERM DEBT
WEIGHTED AVERAGE
INTEREST RATE FOR THE YEAR ENDED DECEMBER 31 NOTE MATURITY 2013 2012
Bell Canada
Debentures
1997 trust indenture 4.39% 20152035 9,350 7,350
1976 trust indenture 9.54% 20212054 1,100 1,250
Subordinated debentures 8.21% 20262031 275 275
Finance leases 7.44% 20152047 2,166 2,272
Unsecured committed term credit facility 2.25% 2016 1,000
Other 197 227
Total Bell Canada 14,088 11,374
CTV Specialty
Notes 6.08% 2014 300 300
Finance leases 3.51% 20142018 19 15
Total CTV Specialty 319 315
Bell Aliant
Debentures and notes 5.16% 20142037 2,559 2,632
Finance leases and other 4.35% 20142017 63 58
Total Bell Aliant 2,622 2,690
Total debt 17,029 14,379
Net unamortized premium 40 51
Unamortized debt issuance costs (50) (41)
Less:
Amount due within one year 19 (678) (503)
Total long-term debt 16,341 13,886
All debentures and subordinated debentures have been issued in Canadian dollars and bear a xed rate of interest.
Interest payments on debt which has a principal amount of $700 million have been swapped from xed to oating. See Note 23, Financial
and Capital Management for additional details.
RESTRICTIONS
Some of the debt agreements:
require us to meet specic nancial ratios
impose covenants, maintenance tests and new issue tests
require us to make an offer to repurchase certain series of debentures upon the occurrence of a change of control event as dened
in the relevant debt agreements.
We are in compliance with all conditions and restrictions.
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
BELL CANADA
All outstanding debentures are issued under trust indentures and
are unsecured. All debentures are issued in series and certain series
are redeemable at Bell Canadas option prior to maturity at the
prices, times and conditions specied for each series.
On September 10, 2013, Bell Canada issued 4.70% Series
M-29 medium-term notes (MTN) debentures under its 1997 trust
indenture, with a principal amount of $600 million, which mature
on September 11, 2023. In addition, on the same date, Bell Canada
issued 3.50% Series M-28 MTN debentures under its 1997 trust
indenture, with a principal amount of $400 million, which mature
on September 10, 2018.
On August 9, 2013, Bell Canada redeemed early its 4.85% Series
M-20 MTN debentures, issued under its 1997 trust indenture,
having an outstanding principal amount of $1 billion which were
due on June 30, 2014. We incurred a $28 million charge for the
premium on early redemption of debt which was recorded in Other
(expense) income.
On July 5, 2013, Bell Canada borrowed $1 billion under its unsecured
committed term acquisition credit facility which matures on
July 5, 2016.
On June 17, 2013, Bell Canada issued 3.25% Series M-27 MTN
debentures under its 1997 trust indenture, with a principal amount
of $1 billion, which mature on June 17, 2020.
On March 22, 2013, Bell Canada issued 3.35% Series M-26 MTN
debentures under its 1997 trust indenture, with a principal amount
of $1 billion, which mature on March 22, 2023.
On February 11, 2013, Bell Canada redeemed early its 10.0% Series
EA debentures, issued under its 1976 trust indenture, having an out-
standing principal amount of $150 million which was due on June 15,
2014. We incurred a $17 million charge for the premium on early
redemption which was recorded in Other (expense) income.
On June 18, 2012, Bell Canada issued 3.35% Series M-25 debentures
under its 1997 trust indenture, with a principal amount of $1 billion,
which mature on June 18, 2019.
CTV SPECIALTY
The CTV Specialty notes and revolving credit facility are secured by all present and future assets of CTV Specialty and its wholly-owned
subsidiaries. At December 31, 2013, the carrying value of CTV Specialty assets exceeded the amounts owing.
On February 18, 2014, the CTV Speciality notes were repaid upon maturity.
BELL ALIANT
All outstanding debentures and notes are issued under trust
indentures and are unsecured with the exception of Tlbec, Limited
Partnerships debentures of $30 million, which are partially secured
by a mortgage on a property located in the province of Qubec. All
debentures and notes are issued in series and certain series are
redeemable at Bell Aliants option prior to maturity at the prices,
times and conditions specied in each series.
On June 25, 2013, Bell Aliant redeemed early its 4.95% MTN deben-
tures with a principal amount of $400 million. We incurred a
$10 million charge for the premium on early redemption of debt
which was recorded in Other (expense) income.
On June 14, 2013, Bell Aliant issued 3.54% MTN debentures, with a
principal amount of $400 million, which mature on June 12, 2020.
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
NOTE 21 POST-EMPLOYMENT BENEFIT PLANS
POST-EMPLOYMENT BENEFIT PLANS COST
We provide pension and other benets for most of our employees.
These include DB pension plans, DC pension plans and OPEBs.
We operate our DB and DC pension plans under applicable Canadian
and provincial pension legislation, which prescribe minimum and
maximum DB funding requirements. Plan assets are held in trust
and the oversight of governance of the plans, including investment
decisions, contributions to DB plans and the selection of the DC
plans investment options offered to plan participants, lies with the
Pension Fund Committee, a committee of our board of directors.
The interest rate risk is managed using a liability matching approach
which reduces the exposure of the DB plan to a mismatch between
investment growth and obligation growth.
COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS SERVICE COST
DB pension (252) (214)
DC pension (81) (72)
OPEBs (7) (6)
Plan amendment gain on OPEBs 1 24
Less:
Capitalized benet plans cost 47 43
Total post-employment benet plans service cost included in operating costs (292) (225)
Other benets (costs) recognized in Severance, acquisition and other costs 6 (44)
Total post-employment benet plans service cost (286) (269)
COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS FINANCING COST
DB pension (87) (60)
OPEBs (63) (71)
Total interest on post-employment benet obligations (150) (131)
The statements of comprehensive income include the following amounts before income taxes.
2013 2012
Cumulative losses recognized directly in equity, January 1 (3,452) (2,003)
Actuarial gains (losses) in other comprehensive income
(1)
1,403 (1,604)
Decrease in the effect of the asset limit 13 155
Cumulative losses recognized directly in equity, December 31 (2,036) (3,452)
(1) The cumulative actuarial losses recognized in the statements of comprehensive income are $2,301 million in 2013.
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
COMPONENTS OF POST-EMPLOYMENT BENEFIT (OBLIGATIONS) ASSETS
The following table shows the change in post-employment benet obligations and the fair value of plan assets.
DB PENSION PLANS OPEB PLANS TOTAL
2013 2012 2013 2012 2013 2012
Post-employment benet obligations, January 1 (19,542) (17,472) (1,707) (1,638) (21,249) (19,110)
Current service cost (252) (214) (7) (6) (259) (220)
Interest on obligations (850) (877) (73) (81) (923) (958)
Actuarial gains (losses)
(1)
1,025 (1,996) 69 (81) 1,094 (2,077)
Net curtailment gain (loss) 4 (44) 3 24 7 (20)
Business combinations (143) (3) (146)
Benet payments 1,088 1,069 77 75 1,165 1,144
Employee contributions (6) (7) (6) (7)
Other 4 (1) 4 (1)
Post-employment benet obligations, December 31 (18,672) (19,542) (1,641) (1,707) (20,313) (21,249)
Fair value of plan assets, January 1 17,727 16,384 220 207 17,947 16,591
Expected return on plan assets
(2)
763 817 10 10 773 827
Actuarial gains 294 468 15 5 309 473
Business combinations 120 120
Benet payments (1,088) (1,069) (77) (75) (1,165) (1,144)
Employer contributions 260 1,120 73 73 333 1,193
Employee contributions 6 7 6 7
Fair value of plan assets, December 31 18,082 17,727 241 220 18,323 17,947
Plan decit (590) (1,815) (1,400) (1,487) (1,990) (3,302)
Effect of asset limit (1) (14) (1) (14)
Post-employment benet liability, December 31 (591) (1,829) (1,400) (1,487) (1,991) (3,316)
Post-employment benet assets included in other non-current assets 136 106 136 106
Post-employment benet obligations (727) (1,935) (1,400) (1,487) (2,127) (3,422)
(1) The actuarial gains (losses) include experience gains of $424 million in 2013 and experience losses of $12 million in 2012.
(2) The actual return on plan assets was $1,082 million in 2013 and $1,300 million in 2012.
FUNDED STATUS OF POST-EMPLOYMENT BENEFIT PLANS COST
The following table shows the funded status of our post-employment benet obligations.
FUNDED PARTIALLY FUNDED UNFUNDED TOTAL
FOR THE YEAR ENDED DECEMBER 31 2013 2012 2013 2012 2013 2012 2013 2012
Present value of post-employment
benet obligations (18,134) (19,007) (1,820) (1,868) (359) (374) (20,313) (21,249)
Fair value of plan assets 18,048 17,697 275 250 18,323 17,947
Plan decit (86) (1,310) (1,545) (1,618) (359) (374) (1,990) (3,302)
(1) The partially funded plans consist of supplementary executive retirement plans (SERPs) for eligible employees and OPEBs. The company partially funds the SERPs through
letters of credit and a retirement compensation arrangement account with Canada Revenue Agency. Certain paid-up life insurance benets are funded through life
insurance contracts.
(2) Our unfunded plans consist of OPEBs, which are pay-as-you-go.
(1) (2)
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
SIGNIFICANT ASSUMPTIONS
We used the following key assumptions to measure the post-employment benet obligations and the net benet plans cost for the DB
pension plans and OPEB plans. These assumptions are long-term, which is consistent with the nature of post-employment benet plans.
DB PENSION AND OPEB PLANS
2013 2012
At December 31
Post-employment benet obligations
Discount rate 4.9% 4.4%
Rate of compensation increase 2.8% 3.0%
Cost of living indexation rate
(1)
1.7% 1.8%
Life expectancy at age 65 (years) 22.4 20.9
For the year ended December 31
Net post-employment benet plans cost
Discount rate 4.4% 5.1%
Rate of compensation increase 3.0% 3.0%
Cost of living indexation rate
(1)
1.8% 1.8%
Life expectancy at age 65 (years) 20.9 20.6
(1) Cost of living indexation rate is only applicable to DB pension plans.
The weighted average duration of the post-employment benet
obligation is 14 years.
We assumed the following trend rates in healthcare costs:
an annual increase of 4.5% in the cost per person of covered
healthcare benets for 2013 and the foreseeable future
an annual increase of 5.0% for retirees under age 65 and 4.5%
for retirees over age 65 in the cost of medication for 2013 and
the foreseeable future.
Assumed trend rates in healthcare costs have a signicant effect
on the amounts reported for the healthcare plans.
The following table shows the effect of a 1% change in the assumed
trend rates in healthcare costs.
EFFECT ON POST-EMPLOYMENT
BENEFITS INCREASE/(DECREASE) 1% INCREASE 1% DECREASE
Total service and interest cost 6 (5)
Post-employment
SENSITIVITY ANALYSIS
The following table shows a sensitivity analysis of key assumptions used to measure the net post-employment benet obligations and
the net post-employment benet plans cost for our DB pension plans and OPEB plans.
IMPACT ON NET POST-EMPLOYMENT
BENEFIT PLANS COST FOR 2014
INCREASE/(DECREASE)
IMPACT ON POST-EMPLOYMENT
BENEFIT OBLIGATIONS AT DECEMBER 31, 2014
INCREASE/(DECREASE)
CHANGE IN
ASSUMPTION
INCREASE IN
ASSUMPTION
DECREASE IN
ASSUMPTION
INCREASE IN
ASSUMPTION
DECREASE IN
ASSUMPTION
Discount rate 1% (177) 151 (2,680) 3,007
Mortality rate 25% (72) 77 (1,287) 1,369
POST-EMPLOYMENT BENEFIT PLAN ASSETS
The investment strategy for the post-employment benet plan assets is to maintain a diversied portfolio of assets invested in a prudent
manner to maintain the security of funds.
The following table shows the allocation of our post-employment benet plan assets at December 31, 2013 and 2012 and target allocations
for 2013.
WEIGHTED AVERAGE
TARGET ALLOCATION
TOTAL PLAN ASSETS
FAIR VALUE AT DECEMBER 31 (%)
ASSET CATEGORY 2013 2013 2012
Equity securities 20%35% 33% 36%
Debt securities 55%70% 59% 57%
Alternative investments 0%25% 8% 7%
Total 100% 100%
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
The fair value of the DB pension plan assets at the end of the year for each category are tabled below.
Observable markets
Equity securities
Canadian 1,278 1,636
Foreign 4,692 4,777
Debt securities
Real return bonds 1,040 957
Nominal bonds 9,243 7,959
Money market 376 1,089
Unobservable inputs
Alternative investments
Private equities 873 800
Hedge funds 602 439
Other (22) 70
Total 18,082 17,727
Equity securities included approximately $2 million of BCE common
shares, or 0.01% of total plan assets, at December 31, 2013 and
approximately $10 million of BCE common shares or 0.06% of total
plan assets, at December 31, 2012.
Debt securities included approximately $14 million of Bell Canada
and Bell Aliant debentures, or 0.08% of total plan assets, at
CASH FLOWS
We are responsible for adequately funding our DB pension plans. We
make contributions to them based on various actuarial cost methods
that are permitted by pension regulatory bodies. Contributions
reect actuarial assumptions about future investment returns,
salary projections and future service benets. Changes in these
factors could cause actual future contributions to differ from our
current estimates and could require us to increase contributions
to our post-employment benet plans in the future, which could
have a negative effect on our liquidity and nancial performance.
We contribute to the DC pension plans as employees provide service.
The following table shows the amounts we contributed to the DB and DC pension plans and the payments made to beneciaries under
OPEB plans.
PENSION PLANS OPEB PLANS
Bell Canada (245) (989) (64) (64)
Bell Media (40) (45)
Bell Aliant (56) (158) (9) (9)
Total (341) (1,192) (73) (73)
Comprised of:
Contributions to DB pension plans and OPEB plans
(1)
(260) (1,120) (73) (73)
Contributions to DC pension plans (81) (72)
(1) Includes voluntary contributions of $850 million in 2012.
We expect to contribute approximately $240 million to our DB pension plans in 2014, subject to actuarial valuations being completed.
We expect to pay approximately $85 million to beneciaries under OPEB plans and to contribute approximately $95 million to the DC
pension plans in 2014.
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
NOTE 22 OTHER NON-CURRENT LIABILITIES
Long-term disability benets obligation 224 235
CRTC tangible benets obligation 23 250 112
CRTC deferral account obligation 23 184 284
MLSE nancial liability 15,23 135 135
Deferred revenue on long-term contracts 99 98
Future tax liabilities 88 136
Other 478 429
Total other non-current liabilities 1,458 1,429
NOTE 23 FINANCIAL AND CAPITAL MANAGEMENT
FINANCIAL MANAGEMENT
Managements objectives are to protect BCE and its subsidiaries
on a consolidated basis against material economic exposures
and variability of results from various nancial risks that include
credit risk, liquidity risk, foreign currency risk, interest rate risk
and equity price risk.
DERIVATIVES
We use derivative instruments to manage our exposure to foreign
currency risk, interest rate risk and changes in the price of BCE
common shares under our share-based payment plans.
The following derivative instruments were outstanding during 2013
and/or 2012:
foreign currency forward contracts and options that manage
the foreign currency risk of certain purchase commitments
interest rate swaps that hedge interest rate risk on a portion of
our long-term debt
forward contracts on BCE common shares that mitigate the
cash ow exposure related to share-based payment plans
cross currency swaps on contracts that hedge foreign currency
risk on a portion of our long-term debt due within one year
interest rate locks on future debt issuances.
CREDIT RISK
We are exposed to credit risk from operating activities and
certain nancing activities, the maximum exposure of which is
represented by the carrying amounts reported on the statements
of nancial position.
We are exposed to credit risk if counterparties to our trade
receivables and derivative instruments are unable to meet their
obligations. The concentration of credit risk from our customers
is minimized because we have a large and diverse customer base.
There was minimal credit risk relating to derivative instruments at
December 31, 2013 and 2012. We deal with institutions that have
investment-grade credit ratings and as such we expect that they
will be able to meet their obligations. We regularly monitor our
credit risk and credit exposure.
The following table provides the change in allowance for doubtful
accounts for trade receivables.
2013 2012
Balance, January 1 (97) (105)
Additions (123) (126)
Use 145 134
Acquisition through
business combinations (4)
Balance, December 31 (79) (97)
In many instances, trade receivables are written off directly to
bad debt expense if the account has not been collected after a
predetermined period of time.
The following table provides further details on trade receivables
not impaired.
Trade receivables not past due 2,274 2,140
Trade receivables past due
and not impaired
Under 60 days 325 351
60 to 120 days 365 364
Over 120 days 31 23
Trade receivables,
net of allowance for
doubtful accounts 2,995 2,878
LIQUIDITY RISK
We generate enough cash from our operating activities to fund our
operations and fulll our obligations as they become due.
We have sufcient committed bank facilities in place should our
cash requirements exceed cash generated from our operations.
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
The following table is a maturity analysis for recognized nancial liabilities at December 31, 2013 for each of the next ve years and thereafter.
AT DECEMBER 31, 2013 NOTE 2014 2015 2016 2017 2018
THERE-
AFTER TOTAL
Long-term debt 349 1,379 2,220 1,183 1,670 7,980 14,781
Notes payable and bank advances 19 972 972
Minimum future lease payments under
nance leases 13 489 418 288 260 237 1,618 3,310
Loan secured by trade receivables 19 921 921
Interest payable on long-term debt, notes
payable, bank advances and loan secured
by trade receivables 734 677 605 538 476 4,634 7,664
MLSE nancial liability 15 135 135
Net interest receipts on derivatives (23) (22) (19) (7) (71)
Total 3,442 2,452 3,094 2,109 2,383 14,232 27,712
We are also exposed to liquidity risk for nancial liabilities due within one year as shown in the statements of nancial position.
MARKET RISK
CURRENCY EXPOSURES
We use cross currency swaps and foreign currency forward contracts and options to hedge debt that is denominated in foreign currencies.
We also use foreign currency forward contracts to manage foreign currency risk related to anticipated transactions, including certain
purchase commitments.
A 10% increase (decrease) in the Canadian/US dollar exchange rate would result in a gain of $33 million (loss of $52 million) recognized in net
earnings at December 31, 2013 and a gain of $42 million (loss of $42 million) recognized in other comprehensive income at December 31, 2013,
with all other variables held constant.
The following table provides further details on our outstanding foreign currency forward contracts and options as at December 31, 2013.
TYPE OF HEDGE
BUY
CURRENCY
AMOUNTS TO
RECEIVE IN USD
SELL
CURRENCY
AMOUNTS
TO PAY IN CAD MATURITY HEDGED ITEM
Cash ow USD 379 CAD 388 2014 Purchase commitments
Cash ow USD 135 CAD 140 2015 Purchase commitments
Cash ow USD 31 CAD 31 2016-2017 Purchase commitments
Economic USD 122 CAD 127 2014 Purchase commitments
Economic call options USD 475 CAD 485 2014 Purchase commitments
Economic put options USD 950 CAD 970 2014 Purchase commitments
INTEREST RATE EXPOSURES
We use interest rate swaps to manage the mix of xed and oating interest rates of our debt. We also used interest rate locks to hedge
the interest rates on future debt issuances.
A 1% change in interest rates would result in a $25 million impact on net earnings at December 31, 2013, all other variables held constant.
No interest rate locks were outstanding at December 31, 2013.
The following table shows the interest rate swap outstanding at December 31, 2013.
TYPE OF HEDGE
NOTIONAL
AMOUNT
RECEIVE
INTEREST RATE
PAY
INTEREST RATE MATURITY HEDGED ITEM
Fair value 700 5.00% 3-month CDOR
(1)
+ 0.42% 2017 Long-term debt
(1) Canadian dollar offered rate
In 2013, we recognized a loss of $22 million (2012 $33 million) on
an interest rate swap used as a fair value hedge of long-term
debt and an offsetting gain of $21 million (2012 $31 million) on the
corresponding long-term debt.
EQUITY PRICE EXPOSURES
We use equity forward contracts on BCEs common shares to eco-
nomically hedge the cash ow exposure related to share-based
payment plans. See Note 25, Share-Based Payments for details
on our share-based payment arrangements. The fair value of our
equity forward contracts at December 31, 2013 was $100 million
(2012 $106 million).
A 10% change in the market price of BCEs common shares at
December 31, 2013 would result in a $56 million impact on net
earnings for 2013, all other variables held constant.
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
FAIR VALUE
Fair value is the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market
participants at the measurement date.
Certain fair value estimates are affected by assumptions we make
about the amount and timing of estimated future cash ows and
discount rates, all of which reect varying degrees of risk. Income
taxes and other expenses that would be incurred on disposition of
nancial instruments are not reected in the fair values. As a result,
the fair values are not the net amounts that would be realized if
these instruments were settled.
The carrying values of our cash and cash equivalents, trade and
other receivables, trade payables and accruals, compensation
payable, interest payable and short-term obligations approximates
fair value because they are short-term.
The following table provides the fair value details of nancial instruments measured at amortized cost in the statements of nancial position.
CLASSIFICATION FAIR VALUE METHODOLOGY
DECEMBER 31, 2013 DECEMBER 31, 2012
CARRYING
VALUE FAIR VALUE
CARRYING
VALUE FAIR VALUE
CRTC tangible
benets obligation
Other current and
non-current liabilities
Present value of estimated
future cash ows discounted
using observable market
interest rates
350 350 174 178
CRTC deferral
account obligation
Other current and
non-current liabilities
Present value of estimated
future cash ows discounted
using observable market
interest rates
264 283 337 352
Debentures, nance leases
and other debt
Debt due within one year
and long-term debt
Quoted market price of debt
or present value of future cash
ows discounted using observ-
able market interest rates
17,019 18,714 14,389 16,895
Financial assets, nancial liabilities and derivatives carried at fair value are individually and in aggregate immaterial.
CAPITAL MANAGEMENT
We have various capital policies, procedures and processes which
are utilized to achieve our objectives for capital management. These
include optimizing our cost of capital and maximizing shareholder
return while balancing the interests of our stakeholders.
Our denition of capital includes equity attributable to BCE share-
holders, debt, and cash and cash equivalents.
In order to meet our objectives of maintaining a net debt to Adjusted
EBITDA
(1) (2)
ratio of between 1.5 and 2.0 times and an Adjusted
EBITDA to net interest expense
(3)
ratio greater than 7.5 times, we
monitor our capital structure and make adjustments, including
to our dividend policy, as required. At December 31, 2013, we had
exceeded our internal net debt to Adjusted EBITDA ratio by 0.49.
This increase over our internal ratio does not create risk to our
investment-grade credit rating.
On February 5, 2014, the board of directors of BCE approved an
increase of 6.0% in the annual dividend on BCEs common shares,
from $2.33 to $2.47 per common share. In addition, the board of
directors declared a quarterly dividend of $0.6175 per common
share, payable on April 15, 2014 to shareholders of record at
March 14, 2014.
On February 6, 2013, the board of directors of BCE approved an
from $2.27 to $2.33 per common share.
On August 7, 2012, the board of directors of BCE approved an
from $2.17 to $2.27 per common share.
The following table summarizes some of our key ratios used to
monitor and manage Bell Canadas capital structure. These ratios
are calculated for BCE, excluding Bell Aliant.
Net debt to Adjusted EBITDA
(1) (2)
2.49 2.15
Adjusted EBITDA to net
interest expense
(3)
8.40 8.82
(1) We dene net debt as debt due within one year plus long-term debt and 50% of preferred shares less cash and cash equivalents.
(2) Adjusted EBITDA, as also dened in our credit agreements, is twelve-month trailing Bell EBITDA including dividends from Bell Aliant to BCE.
(3) Net interest expense is twelve-month trailing Bell interest expense excluding interest on post-employment benet obligations and including 50% of preferred dividends.
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
NOTE 24 SHARE CAPITAL
PREFERRED SHARES
BCEs articles of amalgamation provide for an unlimited number
of First Preferred Shares and Second Preferred Shares, all without
par value. The terms set out in the articles authorize BCEs directors
to issue the shares in one or more series and to set the number of
shares and the conditions for each series.
The following table is a summary of the principal terms of BCEs
First Preferred Shares. There were no Second Preferred Shares
issued and outstanding at December 31, 2013. BCEs articles of
amalgamation, as amended, describe the terms and conditions of
these shares in detail.
NUMBER OF SHARES STATED CAPITAL
SERIES
ANNUAL
DIVIDEND
RATE
CONVERT-
IBLE INTO CONVERSION DATE REDEMPTION DATE
REDEMP-
TION PRICE AUTHORIZED
ISSUED AND
OUTSTANDING
DEC. 31,
2013
DEC. 31,
2012
Q oating Series R December 1, 2015 At any time $25.50 8,000,000
R
(1)
4.49% Series Q December 1, 2015 December 1, 2015 $25.00 8,000,000 8,000,000 200 200
S oating Series T November 1, 2016 At any time $25.50 8,000,000 3,606,225 90 90
T
(1)
3.393% Series S November 1, 2016 November 1, 2016 $25.00 8,000,000 4,393,775 110 110
Y oating Series Z December 1, 2017 At any time $25.50 10,000,000 8,772,468 219 219
Z
(1)
3.152% Series Y December 1, 2017 December 1, 2017 $25.00 10,000,000 1,227,532 31 31
AA
(1)
3.45% Series AB September 1, 2017 September 1, 2017 $25.00 20,000,000 10,144,302 259 259
AB oating Series AA September 1, 2017 At any time $25.50 20,000,000 9,855,698 251 251
AC
(1)
3.55% Series AD March 1, 2018 March 1, 2018 $25.00 20,000,000 5,069,935 129 236
AD oating Series AC March 1, 2018 At any time $25.50 20,000,000 14,930,065 381 274
AE oating Series AF February 1, 2015 At any time $25.50 24,000,000 1,422,900 36 36
AF
(1)
4.541% Series AE February 1, 2015 February 1, 2015 $25.00 24,000,000 14,577,100 364 364
AG
(1)
4.50% Series AH May 1, 2016 May 1, 2016 $25.00 22,000,000 10,841,056 271 271
AH oating Series AG May 1, 2016 At any time $25.50 22,000,000 3,158,944 79 79
AI
(1)
4.15% Series AJ August 1, 2016 August 1, 2016 $25.00 22,000,000 10,754,990 269 269
AJ oating Series AI August 1, 2016 At any time $25.50 22,000,000 3,245,010 81 81
AK
(1)
4.15% Series AL December 31, 2016 December 31, 2016 $25.00 25,000,000 25,000,000 625 625
AL
(2)
oating Series AK December 31, 2021 25,000,000
3,395 3,395
(1) BCE may redeem each of these series of shares on the applicable redemption date and every ve years after that date.
(2) If Series AL Preferred Shares are issued, BCE may redeem such shares at $25.00 per share on December 31, 2021 and on December 31 every ve years thereafter (collectively,
a Series AL conversion date) and at $25.50 per share on any date after December 31, 2016, which is not a Series AL conversion date.
VOTING RIGHTS
All of the issued and outstanding preferred shares at
December 31, 2013 are non-voting, except under special circum-
stances, when the holders are entitled to one vote per share.
ENTITLEMENT TO DIVIDENDS
Holders of Series R, T, Z, AA, AC, AF, AG, AI and AK shares are entitled
to xed cumulative quarterly dividends. The dividend rate on
these shares is reset every ve years, as set out in BCEs articles
of amalgamation, as amended.
Holders of Series S, Y, AB, AD, AE, AH and AJ shares are entitled
to oating adjustable cumulative monthly dividends. The oating
dividend rate on these shares is calculated every month, as set out
in BCEs articles of amalgamation, as amended.
Dividends on all series of preferred shares are paid as and when
declared by the board of directors of BCE.
CONVERSION FEATURES
All of the issued and outstanding preferred shares at
December 31, 2013 are convertible at the holders option into another
associated series of preferred shares on a one-for-one basis
according to the terms set out in BCEs articles of amalgamation,
as amended.
CONVERSION OF PREFERRED SHARES
On March 1, 2013, 4,415,295 of BCEs 9,244,555 Cumulative Redeemable
First Preferred Shares, Series AC (Series AC Preferred Shares) were
converted, on a one-for-one basis, into Cumulative Redeemable
First Preferred Shares, Series AD (Series AD Preferred Shares).
In addition, on March 1, 2013, 240,675 of BCEs 10,755,445 Series
AD Preferred Shares were converted, on a one-for-one basis, into
Series AC Preferred Shares.
ISSUANCE OF PREFERRED SHARES
On January 4, 2012, BCE issued 11,200,000 additional Series AK
Preferred Shares for total gross proceeds of $280 million. Issuance
costs were $8 million.
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
COMMON SHARES AND CLASS B SHARES
BCEs articles of amalgamation provide for an unlimited number of voting common shares and non-voting Class B shares, all without
par value. The common shares and the Class B shares rank equally in the payment of dividends and in the distribution of assets if BCE
is liquidated, dissolved or wound up, after payments due to the holders of preferred shares. No Class B shares were outstanding at
The following table provides details about the outstanding common shares of BCE.
2013 2012
NOTE NUMBER OF SHARES STATED CAPITAL NUMBER OF SHARES STATED CAPITAL
Outstanding, January 1 775,381,645 13,611 775,444,200 13,566
Shares issued under employee stock option plan 25 420,822 14 1,296,962 43
Shares issued under ESP 90,089 4 1,102,022 48
Shares repurchased and cancelled (2,461,539) (46)
Outstanding, December 31 775,892,556 13,629 775,381,645 13,611
CONTRIBUTED SURPLUS
Contributed surplus resulted from the distribution of fund units to the holders of BCE common shares by way of a return of capital upon
the conversion of Bell Aliant from a corporate structure to an income fund in 2006 and premium in excess of par value upon the issuance
of BCE common shares.
NOTE 25 SHARE-BASED PAYMENTS
The following share-based payment amounts are included in the income statements as operating costs.
ESPs (35) (32)
RSUs (44) (30)
Deferred share plans Bell Aliant (10) (11)
Other
(1)
(9) (7)
Total share-based payments (98) (80)
(1) Includes DSUs and stock options.
DESCRIPTION OF THE PLANS
ESPs
ESPs are designed to encourage employees of BCE and its partici-
pating subsidiaries to own shares of BCE. Each year, employees can
choose to have a certain percentage of their eligible annual earnings
withheld through regular payroll deductions for the purchase
of BCE common shares. In some cases, the employer also will
contribute a percentage of the employees eligible annual earnings
to the plan, up to a specied maximum. Dividends are credited to
the participants account on each dividend payment date and are
equivalent in value to the dividends paid on BCE common shares.
Each participating company decides on its maximum percentage
contribution. For Bell Canada, employees can contribute up to 12%
of their annual earnings. Bell Canada contributes up to 2%.
Employer contributions to the plan are subject to employees
holding their shares for a two-year vesting period. Dividends
related to employer contributions are also subject to the two-year
vesting period.
The trustee of the ESP buys BCE common shares for the participants
on the open market, by private purchase or from treasury. BCE
determines the method the trustee uses to buy the shares.
At December 31, 2013, 12,411,790 common shares were authorized
for issuance under the ESP.
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
The following table summarizes the status of unvested employer contributions at December 31, 2013 and 2012.
NUMBER OF ESPs 2013 2012
Unvested contributions, January 1 1,290,286 1,029,621
Contributions
(1)
659,568 699,063
Dividends credited 65,067 59,793
Vested (687,157) (336,408)
Forfeited (97,499) (161,783)
Unvested contributions, December 31 1,230,265 1,290,286
(1) The weighted average fair value of the ESPs contributed was $45 and $42 in 2013 and 2012, respectively.
RSUs
RSUs are granted to executives and other key employees. The
value of an RSU at the grant date is equal to the value of one
BCE common share. Dividends in the form of additional RSUs are
credited to the participants account on each dividend payment date
and are equivalent in value to the dividend paid on BCE common
shares. Executives and other key employees are granted a specic
number of RSUs for a given performance period based on their
position and level of contribution. RSUs vest fully after three years
of continuous employment from the date of grant and, in certain
cases, if performance objectives are met as determined by the
board of directors.
The following table summarizes outstanding RSUs at December 31, 2013 and 2012.
NUMBER OF RSUs 2013 2012
Outstanding, January 1 2,468,405 1,257,523
Granted
(1)
1,219,042 1,243,846
Settled (68,182) (59,491)
Forfeited (60,424) (86,023)
Outstanding, December 31 3,733,830 2,468,405
Vested, December 31
(2)
1,210,791
(1) The weighted average fair value of the RSUs granted was $45 and $40 in 2013 and 2012, respectively.
(2) The RSUs vested on December 31, 2013 were fully settled in February 2014 with BCE common shares and/or DSUs.
STOCK OPTIONS
Under BCEs long-term incentive plans, BCE may grant options to
executives to buy BCE common shares. The subscription price of
a grant is based on the higher of:
the volume-weighted average of the trading price on the
trading day immediately prior to the effective date of the grant
the volume-weighted average of the trading price for the
last ve consecutive trading days ending on the trading day
immediately prior to the effective date of the grant.
At December 31, 2013, 25,661,138 common shares were authorized for
issuance under these plans. Options vest fully after three years of
continuous employment from the date of grant. All options become
exercisable when they vest and can be exercised for a period of
seven years from the date of grant. Special vesting provisions
may apply if:
there is a change in control of BCE and the option holders
employment ends
the option holder is employed by a designated subsidiary of
BCE and BCEs ownership interest in that subsidiary falls below
the percentage set out in the plan.
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
The following table summarizes BCEs outstanding stock options at December 31, 2013 and 2012.
2013 2012
NOTE NUMBER OF OPTIONS
WEIGHTED AVERAGE
EXERCISE PRICE ($) NUMBER OF OPTIONS
WEIGHTED AVERAGE
EXERCISE PRICE ($)
Outstanding, January 1 5,310,356 $37 4,027,309 $33
Granted 2,993,902 $44 2,681,201 $40
Exercised
(1)
24 (420,822) $30 (1,296,962) $30
Expired (4,850) $28
Forfeited (13,205) $40 (96,342) $37
Outstanding, December 31 7,870,231 $40 5,310,356 $37
Exercisable, December 31 420,822 $30
(1) The weighted average share price for options exercised was $45 and $42 in 2013 and 2012, respectively.
The following table provides additional information about BCEs stock option plans at December 31, 2013.
STOCK OPTIONS OUTSTANDING
RANGE OF EXERCISE PRICES NUMBER
WEIGHTED AVERAGE
REMAINING LIFE
WEIGHTED AVERAGE
EXERCISE PRICE ($)
$30$39 2,237,606 4.1 $36
$40 or more 5,632,625 5.7 $42
7,870,231 5.2 $40
ASSUMPTIONS USED IN STOCK OPTION PRICING MODEL
The fair value of options granted was determined using a variation of a binomial option pricing model that takes into account factors
specic to the share incentive plans, such as the vesting period. The following table shows the principal assumptions used in the valuation.
2013
Weighted average fair value per option granted ($) 2.81
Weighted average share price ($) 45
Weighted average exercise price ($) 44
Dividend yield 5.2%
Expected volatility 18%
Risk-free interest rate 1.3%
Expected life (years) 4.5
Expected volatilities are based on the historical volatility of BCEs
share price. The risk-free rate used is equal to the yield available
on Government of Canada bonds at the date of grant with a term
equal to the expected life of the options.
DSUs
Eligible bonuses and RSUs may be paid in the form of DSUs when
executives or other key employees elect to or are required to
participate in the plan. The value of a DSU at the issuance date is
equal to the value of one BCE common share. For non-management
directors, compensation is paid in DSUs until the minimum share
ownership requirement is met or as elected by the directors
thereafter. There are no vesting requirements relating to DSUs.
Dividends in the form of additional DSUs are credited to the
participants account on each dividend payment date and are
equivalent in value to the dividends paid on BCE common shares.
DSUs are settled when the holder leaves the company.
The following table summarizes the status of outstanding DSUs at December 31, 2013 and 2012.
NUMBER OF DSUs 2013 2012
Outstanding, January 1 3,305,861 3,351,526
Issued
(1)
230,718 196,363
Settled (93,591) (415,597)
Outstanding, December 31 3,625,053 3,305,861
(1) The weighted average fair value of the DSUs issued was $44 and $40 in 2013 and 2012, respectively.
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
NOTE 26 COMMITMENTS AND CONTINGENCIES
COMMITMENTS
The following table is a summary of our contractual obligations at December 31, 2013 that are due in each of the next ve years and thereafter.
2014 2015 2016 2017 2018
THERE-
AFTER TOTAL
Operating leases 296 249 207 165 128 692 1,737
Commitments for property, plant and equipment
and intangible assets 232 78 47 12 10 25 404
Purchase obligations 1,968 1,360 602 430 279 1,177 5,816
Total 2,496 1,687 856 607 417 1,894 7,957
BCEs signicant operating leases are for ofce premises, cellular
tower sites and retail outlets with lease terms ranging from 1 to
33 years. These leases are non-cancellable and are renewable at
the end of the lease period. Rental expense relating to operating
leases was $300 million in 2013 and $269 million in 2012.
Purchase obligations consist of contractual obligations under service
and product contracts, for both operating and capital expenditures.
Our commitments for property, plant and equipment and intangible
assets include investments to expand and update our networks,
and to meet customer demand.
CONTINGENCIES
We become involved in various legal proceedings as a part of our
business. While we cannot predict the nal outcome or timing
of the legal proceedings pending at December 31, 2013, based on
the information currently available and managements assessment
of the merits of such legal proceedings, management believes that
the resolutions of these legal proceedings will not have a material
and negative effect on our nancial statements. We believe that
we have strong defences and we intend to vigorously defend
our positions.
NOTE 27 RELATED PARTY TRANSACTIONS
SUBSIDIARIES
The following table shows BCEs signicant subsidiaries at
December 31, 2013. BCE has other subsidiaries which have not been
included in the table as each represents less than 10% individually
and less than 20% in aggregate of total consolidated revenues.
All of these subsidiaries are incorporated in Canada and provide
services to each other in the normal course of operations. The value
of these transactions is eliminated on consolidation.
OWNERSHIP PERCENTAGE
SUBSIDIARY 2013 2012
Bell Canada 100.0% 100.0%
Bell Mobility Inc. 100.0% 100.0%
Bell Aliant Inc. 44.1% 44.1%
Bell Media Inc. 100.0% 100.0%
TRANSACTIONS WITH JOINT ARRANGEMENTS AND ASSOCIATES
During 2013 and 2012, BCE provided telecommunication services
and received programming content and other services in the
normal course of business on an arms length basis to and from
its joint arrangements and associates. Our joint arrangements
are comprised of MLSE, Inukshuk, Enstream Inc., Cirque du Soleil
Media Limited Partnership and Dome Productions Partnership.
Our associates are comprised of Summerhill Ventures LLP, Q9,
The NHL Network Inc., the Montreal Canadiens Hockey Club and
the Bell Centre until August 2012, and Viewers Choice Canada Inc.
until July 2013.
BCE recognized revenues and incurred expenses with our associates
and joint arrangements of $7 million (2012 $11 million) and $56 mil-
lion (2012 $72 million), respectively. See Note 8, Other (Expense)
Income for additional transactions with Inukshuk.
N
O
T
E
S

T
O

C
O
N
S
O
L
I
D
A
T
E
D

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S
BCE MASTER TRUST FUND
Bimcor Inc. (Bimcor), a wholly-owned subsidiary of Bell Canada, is
the administrator of the Master Trust. Bimcor recognized manage-
ment fees of $12 million and $13 million from the Master Trust for 2013
and 2012, respectively. The details of BCEs post-employment
benet plans are set out in Note 21, Post-employment Benet Plans.
Additionally, in 2012, BCE completed a co-investment arrangement
with the Master Trust with respect to MLSE for which the details
are set out in Note 15, Investments in Associates and Joint Ventures.
COMPENSATION OF KEY MANAGEMENT PERSONNEL AND BOARD OF DIRECTORS
The following table includes compensation of the key management personnel and board of directors for the years ended December 31, 2013
and 2012 included in our income statements. Key management personnel are the companys Chief Executive Ofcer (CEO) and the
executives who report directly to the CEO.
Wages, salaries and related taxes and benets (24) (22)
Post-employment benet plans and OPEBs cost (4) (3)
Share-based compensation (25) (17)
Key management personnel and board of directors compensation expense (53) (42)
NOTE 28 SIGNIFICANT PARTLY-OWNED SUBSIDIARIES
The following tables show summarized nancial information for our subsidiaries with signicant NCI.
SUMMARIZED STATEMENTS OF FINANCIAL POSITION
BELL ALIANT CTV SPECIALTY
Current assets 408 429 378 191
Non-current assets 4,584 4,590 1,004 1,025
Total assets 4,992 5,019 1,382 1,216
Current liabilities 712 808 448 117
Non-current liabilities 3,117 3,483 189 507
Total liabilities 3,829 4,291 637 624
Total equity attributable to BCE shareholders 221 130 522 415
NCI
(2)
942 598 223 177
(1) The ownership interest held by NCI is 55.9% and 29.9% for Bell Aliant and CTV Specialty, respectively. Both are incorporated and operate in Canada.
(2) The Bell Aliant NCI is greater than its share of net assets by $662 million and $433 million for 2013 and 2012, respectively, primarily due to preferred shares 100% owned by the NCI.
SELECTED INCOME AND CASH FLOW INFORMATION
BELL ALIANT CTV SPECIALTY
Operating revenues 2,759 2,761 781 729
Net earnings 379 385 190 187
Net earnings attributable to NCI 224 224 58 57
Total comprehensive income 664 243 194 187
Total comprehensive income attributable to NCI 384 144 59 57
Cash dividends paid to NCI 270 262 13 78
(1) Bell Aliant net earnings and total comprehensive income includes $28 million and $19 million of dividends declared on preferred shares for 2013 and 2012, respectively.
(2) CTV Specialty net earnings and total comprehensive income includes $2 million and $1 million directly attributable to NCI for 2013 and 2012, respectively.
(1) (1)
(1) (2)
M
E
A
S
U
R
E
S

U
S
E
D

T
O

M
A
N
A
G
E

O
U
R

B
U
S
I
N
E
S
S
MEASURES USED
TO MANAGE OUR BUSINESS
KEY PERFORMANCE INDICATORS (KPIs)
We measure the success of our strategies using various KPIs as
described below. These KPIs are not accounting measures and may
not be comparable to similar measures presented by other issuers.
EBITDA Margin
EBITDA divided by operating revenues.
Capital Intensity
Capital expenditures divided by operating revenues.
Dividend Payout Ratio
Dividends paid on common shares divided by free cash ow.
ARPU
Average revenue per user or subscriber is certain service revenues
divided by the average subscriber base for the specied period.
Churn
Churn is the rate at which existing subscribers cancel their services,
expressed as a percentage. Churn is calculated as the number of
subscribers disconnected divided by the average subscriber base.
It is a measure of monthly customer turnover.
Cost of Acquisition (COA)
COA is also referred to as subscriber acquisition costs. COA
represents the total cost associated with acquiring a customer
and includes costs such as hardware discounts, marketing and
distribution costs. This measure is expressed per gross activation
during a specied period.
Net Debt to Adjusted EBITDA
Bell net debt divided by twelve-month trailing Bell Adjusted EBITDA.
Net debt is debt due within one year, long-term debt and 50% of
preferred shares less cash and cash equivalents. Adjusted EBITDA
is Bell EBITDA including dividends from Bell Aliant to BCE.
Adjusted EBITDA to Net Interest Expense
Twelve-month trailing Adjusted EBITDA divided by twelve-month
trailing net interest expense. Adjusted EBITDA is Bell EBITDA including
dividends from Bell Aliant to BCE. Net interest expense is Bell interest
expense excluding interest on post-employment benet obligations
and including 50% of preferred dividends.
Free Cash Flow per Share
Free cash ow divided by the average number of common shares
outstanding.
FINANCIAL MEASURES
Below is a listing of nancial calculations or ratios commonly used
to assess nancial performance. We believe that certain investors,
creditors and analysts use these nancial measures, among others,
in reviewing our nancial condition and performance.
Book Value per Share
Total equity attributable to BCE shareholders, excluding preferred
shares, divided by the number of common shares outstanding.
Dividends Declared per Common Share
Common dividends declared divided by common shares outstanding
at the end of the period.
Market Capitalization
BCEs common share price at the end of the year multiplied by
the number of common shares outstanding at the end of the year.
Price to Book Ratio
BCEs common share price at the end of the year divided by the
book value per share.
Price to Cash Flow Ratio
BCEs common share price at the end of the year divided by cash
ow per common share. Cash ow per common share is cash ow
from operating activities less capital expenditures, divided by the
average number of common shares outstanding.
Price to Earnings Ratio
BCEs common share price at the end of the year divided by
earnings per share.
Return on Equity
Net earnings attributable to common shareholders divided by
total average equity attributable to BCE shareholders excluding
preferred shares.
Total Debt to Total Assets
Total debt (including debt due within one year) divided by total assets.
Total Debt to Total Equity
Total debt (excluding notes payable and bank advances) divided
by total equity.
Total Shareholder Return (TSR)
TSR is the change in the BCE share price for a specied period plus
BCE dividends reinvested, divided by the BCE share price at the
beginning of the period.
B
O
A
R
D

O
F

D
I
R
E
C
T
O
R
S

/

E
X
E
C
U
T
I
V
E
S
BOARD OF DIRECTORS
AS OF MARCH 6, 2014
Thomas C. ONeill,
FCPA, FCA
ONTARIO, CANADA
Chair of the Board,
Director since January 2003
Barry K. Allen
FLORIDA, UNITED STATES
Operating Partner, Providence
Equity Partners LLC
Director since May 2009
Andr Brard, O.C.
QUBEC, CANADA
Corporate Director
Ronald A. Brenneman
ALBERTA, CANADA
Corporate Director
Director since November 2003
Sophie Brochu
QUBEC, CANADA
President and
Chief Executive Ofcer,
Gaz Mtro Inc.
Robert E. Brown
QUBEC, CANADA
Corporate Director
George A. Cope
ONTARIO, CANADA
President and
Chief Executive Ofcer,
Director since July 2008
David F. Denison,
FCPA, FCA
ONTARIO, CANADA
Corporate Director
Director since October 2012
Anthony S. Fell, O.C.
ONTARIO, CANADA
Corporate Director
Ian Greenberg
QUBEC, CANADA
Corporate Director
The Honourable
Edward C. Lumley, P.C.
ONTARIO, CANADA
Vice-Chairman,
BMO Capital Markets
The Honourable
James Prentice, P.C., Q.C.
ALBERTA, CANADA
Senior Executive
Vice-President and
Vice-Chairman, Canadian
Imperial Bank of Commerce
Robert C. Simmonds
ONTARIO, CANADA
Chairman,
Lenbrook Corporation
Carole Taylor
BRITISH COLUMBIA, CANADA
Corporate Director
Director since August 2010
Paul R. Weiss, FCPA, FCA
ONTARIO, CANADA
Corporate Director
COMMITTEES OF THE BOARD
AUDIT COMMITTEE
P.R. Weiss (Chair), S. Brochu,
D.F. Denison, I. Greenberg,
R.C. Simmonds
The audit committee assists
the board in the oversight of:
the integrity of BCE Inc.s
nancial statements and
related information
BCE Inc.s compliance
with applicable legal and
regulatory requirements
the independence, qualica-
tions and appointment of the
external auditors
the performance of both the
external and internal auditors
managements responsibility
for assessing and reporting
on the effectiveness of
internal controls
BCE Inc.s enterprise risk
management processes.
PENSION FUND
COMMITTEE
D.F. Denison (Chair),
E.C. Lumley, J. Prentice,
C. Taylor, P.R. Weiss
The PFC assists the board
in the oversight of:
the administration, funding
and investment of BCE Inc.s
pension plans and fund
the unitized pooled fund
sponsored by BCE Inc. for
the collective investment of
the fund and the participant
subsidiaries pension funds.
CORPORATE GOVERNANCE
COMMITTEE
R.E. Brown (Chair), B.K. Allen,
S. Brochu, R.C. Simmonds,
C. Taylor
The CGC assists the board in:
developing and implementing
BCE Inc.s corporate
governance guidelines
identifying individuals
qualied to become members
of the board
determining the com-
position of the board and
its committees
determining the directors
remuneration for board
and committee service
developing and overseeing
a process to assess the Chair
of the board, the board,
committees of the board,
Chairs of committees and
individual directors
reviewing and recommending
for board approval BCE Inc.s
policies concerning business
conduct, ethics, public disclo-
sure of material information
and other matters.
MANAGEMENT RESOURCES
AND COMPENSATION
COMMITTEE
R.A. Brenneman (Chair),
B.K. Allen, A. Brard,
R.E. Brown, A.S. Fell
The MRCC assists the board
in the oversight of:
the compensation,
nomination, evaluation and
succession of ofcers and
other management personnel
the health and safety policies
and practices.
B
O
A
R
D

O
F

D
I
R
E
C
T
O
R
S

/

E
X
E
C
U
T
I
V
E
S
EXECUTIVES
AS OF MARCH 6, 2014
George A. Cope
President and Chief Executive Ofcer,
Mirko Bibic
Executive Vice-President and Chief Legal & Regulatory Ofcer,
Charles W. Brown
President The Source,
Bell Canada
Michael Cole
Executive Vice-President and Chief Information Ofcer,
Bell Canada
Kevin W. Crull
President Bell Media,
Bell Canada
Stephen Howe
Executive Vice-President and Chief Technology Ofcer,
Bell Canada
Bernard le Duc
Executive Vice-President Corporate Services,
Thomas Little
President Bell Business Markets,
Bell Canada
Wade Oosterman
President Bell Mobility and Bell Residential Services
and Chief Brand Ofcer, Bell Canada
Mary Ann Turcke
Executive Vice-President Field Operations,
Bell Canada
Martine Turcotte
Vice Chair Qubec,
Siim A. Vanaselja
Executive Vice-President and Chief Financial Ofcer,
John Watson
Executive Vice-President Customer Operations,
Bell Canada
I
N
V
E
S
T
O
R

I
N
F
O
R
M
A
T
I
O
N
INVESTOR INFORMATION
SHARE FACTS
SYMBOL
BCE
LISTINGS
TSX and NYSE Stock Exchanges
You will nd a summary of the differences
between our governance practices and
the NYSE corporate governance rules in
the governance section of our website
at BCE.ca
COMMON SHARES
OUTSTANDI NG
December 31, 2013 775,892,556
QUARTERLY DI VI DEND*
$0.6175 per common share
201 4 DI VI DEND SCHEDULE*
Record Date
March 14, 2014
June 16, 2014
September 15, 2014
December 15, 2014
Payment Date
April 15, 2014
July 15, 2014
October 15, 2014
January 15, 2015
* Subject to dividends being declared by the board
of directors
201 4 QUARTERLY EARNI NGS
RELEASE DATES
First quarter
Second quarter
Third quarter
Fourth quarter
May 6, 2014
August 7, 2014
November 6, 2014
February 5, 2015
Quarterly and annual reports as well as
other corporate documents can be found
on our website. Corporate documents
can also be requested from the Investor
Relations group.
TAX ASPECTS
CAPITAL GAINS ON YOUR SHARES
Shareholders are required to pay tax on dividends as well as any capital gains they realize
when they sell their shares or are deemed to have sold them.
If you received Nortel Networks common shares in May 2000 and/or Bell Aliant Regional
Communications Income Fund units in July 2006, you should contact the Investor Relations
group to learn more about the tax implications on your cost, or visit BCE.ca
DIVIDENDS
Since January 1, 2006 and unless stated otherwise, dividends paid by BCE Inc. to Canadian
residents are eligible dividends as per the Canadian Income Tax Act. Since March 24, 2006
and unless stated otherwise, dividends paid by BCE Inc. to Qubec residents also qualify
as eligible dividends.
NON-RESIDENTS OF CANADA
Dividends paid or credited to non-residents of Canada are subject to a 25% withholding
tax unless reduced by treaty. Under current tax treaties, U.S. and U.K. residents are subject
to a 15% withholding tax.
Beginning in 2012, the Canada Revenue Agency introduced new rules requiring residents
of any country with which Canada has a tax treaty to certify that they reside in that
country and are eligible to have Canadian non-resident tax withheld on the payment of
their dividends at the tax treaty rate. Registered shareholders should have completed the
Declaration of Eligibility for Benets under a Tax Treaty for a Non-Resident Taxpayer and
returned it to the transfer agent.
U.S. RESIDENTS
In addition to the Declaration of Eligibility for Benets under a Tax Treaty for a Non-Resident
Taxpayer mentioned above, we are required to solicit taxpayer identication numbers
and Internal Revenue Service (IRS) Form W-9 certications of residency from certain U.S.
residents. If these have not been received, we may be required to deduct the IRSs specied
backup withholding tax. For more information, please contact the transfer agent or the
Investor Relations group.
SHAREHOLDER SERVICES
DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN
The Plan provides a convenient method for eligible holders of common shares to reinvest
their dividends and make optional cash contributions to purchase additional common
shares without brokerage costs.
DIVIDEND DIRECT DEPOSIT SERVICE
Avoid postal delays and trips to the bank by joining the dividend direct deposit service.
E-DELIVERY SERVICE
Enrol in our e-delivery service to receive the proxy material, the annual report and/or
quarterly reports by e-mail. By doing so, you will receive your documents faster and in
an environmentally friendly manner while helping your company reduce printing and
postage costs.
MANAGE YOUR SHAREHOLDER ACCOUNT
Enrol with AnswerLine at www.canstockta.com and benet from a wide variety of self-service
tools to help track and manage your shares.
DUPLICATE MAILINGS
Help us control costs and eliminate duplicate mailings by consolidating your accounts.
For more details on any of these services, registered shareholders (shares are registered
under your name) must contact the transfer agent. Non-registered shareholders must
contact their brokers.
CONTACT INFORMATION
TRANSFER AGENT
AND REGISTRAR
For information on shareholder services or
any other inquiries regarding your account
(including stock transfer, address change,
lost certicates and tax forms), contact:
CST Trust Company
320 Bay Street, 3rd Floor
Toronto, Ontario M5H 4A6
e-mail [email protected]
tel 416-682-3861 or 1-800-561-0934
(toll free in Canada and the U.S.)
fax 514-985-8843 or 1-888-249-6189
(toll free in Canada and the U.S.)
website www.canstockta.com
INVESTOR RELATIONS
Building A, 8th Floor
1 Carrefour Alexander-Graham-Bell
Verdun, Qubec H3E 3B3
e-mail [email protected]
tel 1-800-339-6353
fax 514-786-3970
or visit the Investors section
of our website at BCE.ca
BCE Inc., 2014. All rights reserved.
Trade-marks: The following are trade-marks referred to and used as such in this annual report that BCE Inc., its subsidiaries, joint arrangements, associates or other entities in which
we hold an equity interest own or use under licence. Aliant and FibreOP are trade-marks of Bell Aliant Regional Communications, Limited Partnership; BCE is a trade-mark of BCE Inc.;
Bell, Bell Canada, Bell Centre, Bell Internet, Bell Media, Bell Mobility, Bell TV, Fibe, Lets Talk, and TV Everywhere are trade-marks of Bell Canada; Astral, Astral Media, Astral Out-of-Home,
BNN, BNN Business News Network, Canal D, Canal Vie, CinPop, Comedy, CTV, CTV News Channel, CTV Specialty, E Z Rock, Much, Space Design, Super cran, The Comedy Network,
The Movie Network, TMN, TMN Encore, TMN GO, The Loop, Vie & Dessin, VRAK.TV, and Ztl are trade-marks of Bell Media Inc.; Amazing Race is a trade-mark of Canadian Outback Adventure
Company Limited; Bimcor is a trade-mark of Bimcor Inc.; Discovery & Globe design and Discovery Channel are trade-marks of Discovery Communications, LLC; E! is a trade-mark
of E! Entertainment Television, LLC; HBO is a trade-mark of Home Box Ofce Inc.; Bravo is a trade-mark of Bravo Media LLC; Montreal Canadiens is a trade-mark of Le Club de Hockey
Canadien Inc.; MTV is a trade-mark of Viacom International Inc.; Telebec is a trade-mark of Tlbec, Limited Partnership; The Source is a trade-mark of The Source (Bell) Electronics Inc.; TSN
and RDS are trade-marks of The Sports Network Inc.; Northwestel is a trade-mark of Northwestel Inc.; MLSE is a trade-mark of Maple Leaf Sports & Entertainment Ltd.; Q9 is a trade-mark
of Q9 Networks Inc.; The Globe and Mail is a trade-mark of The Globe and Mail Inc.; Toronto Maple Leafs is a trade-mark of Maple Leaf Sports & Entertainment Ltd.; Virgin, Virgin Mobile,
Virgin Radio & Design and Virgin Mobile Canada are trade-marks of Virgin Enterprises Limited.
We believe that our trade-marks are very important to our success and take appropriate measures to protect, renew and defend them. Any other
trade-marks used in this annual report are the property of their respective owners.
Cette publication est disponible en franais. BCEs annual report is printed with vegetable-based ink and is recyclable.
B
C
E

I
N
C
.

2
0
1
3

A
N
N
U
A
L

R
E
P
O
R
T
BCE.ca

BCE 2013 Annual Report

Uploaded by

Copyright:

Available Formats

BCE 2013 Annual Report

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

BCE 2013 Annual Report

Uploaded by

Copyright:

Available Formats

BCE INC.

2013 ANNUAL REPORT

You might also like