Canadian Telecommunication Presented by : Jerry Cai Michael Jiang Ian So Tina Wu.

Presentation on theme: "Canadian Telecommunication Presented by : Jerry Cai Michael Jiang Ian So Tina Wu."— Presentation transcript:

1 Canadian Telecommunication Presented by : Jerry Cai Michael Jiang Ian So Tina Wu

2 Industry OverviewRogers CommunicationManitoba TelecomBell Canada Agenda Industry OverviewManitoba Telecom (MBT) Rogers Communication (RCI) Bell Canada (BCE)

3 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Telecommunication Distance communication by cable, telephone, video, or internet Involves the sending of information, through a medium, to a receiver

4 Industry OverviewManitoba TelecomRogers CommunicationBell Canada History of Telecommunication In the Middle Ages, beacons In 1792, the first visual telegraphy system In 1839, the first commercial electrical telegraph In 1866, the first permanent transatlantic telegraph cable In 1876, the conventional telephone In 1878, the first commercial telephone services In 1901, wireless communication In 1926, the first television system In 1969, ARPANET

5 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Segmentation Fixed line telephone Wireless Cable (TV) Internet

6 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Telecommunications revenues and annual growth

7 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Telecommunications revenues, by market sector ($ billions)

8 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Fixed Line Telephone

9 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Wireline voice market In 2010, 91% of Canadian households subscribed to wireline voice communication services. There were over 100 providers of local and access services and over 150 providers of long distance services in 2010. – Large incumbent TSPs – Small incumbent TSPs – Cable BDUs – Resellers

10 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Revenues

11 Industry OverviewManitoba TelecomRogers CommunicationBell Canada

12 Industry OverviewManitoba TelecomRogers CommunicationBell Canada

13 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Wireless Communication wireless communication is the transfer of information without the use of wires. It encompasses various types of fixed, mobile, and portable two-way radios, cellular telephones, personal digital assistants, and wireless networking.

14 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Technology

15 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Technology 1G 1 st generation of wireless telephone technology Launched in Japan in 1979 The analog telecommunications standards 2G Launched on the GSM standard in Finland by Radiolinja in 1991 Phone conversations were digitally encrypted 2G systems were significantly more efficient on the spectrum allowing for far greater mobile phone penetration levels 2G introduced data services for mobile, starting with SMS text messages

16 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Technology 3G Application services - wide-area wireless voice telephone - mobile Internet access - video calls and mobile TV Allow simultaneous use of speech and data services Provides peak data rates of at least 200 kbit/s 4G In 2009, the ITU-R organization specified the IMT-Advanced requirements for 4G standards Setting peak speed requirements for 4G service at 100 Mbit/s for high mobility communication and 1 Gbit/s for low mobility communication HSPA+ (up to 42Mbps) LTE (up to 75 Mbps)

17 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Revenue Breakdown

18 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Wireless revenue and subscriber growth rates

19 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Wireless revenue market share

20 Industry OverviewManitoba TelecomRogers CommunicationBell Canada

21 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Wireless subscriber market share, by province (2010)

22 Industry OverviewManitoba TelecomRogers CommunicationBell Canada

23 Industry OverviewManitoba TelecomRogers CommunicationBell Canada

24 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Internet The use of Internet has grown considerably In 2010, 80% of individuals aged 16 and older used the Internet for personal use. Significant differences in use rates exist based on age, income, location and other factors.

25 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Technology – Digital Subscriber Line (DSL) A family of technologies that provides digital data transmission over the wires of a local telephone network

26 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Technology – Fiber to the x (FTTx) A generic term for any broadband network architecture using optical fiber to replace all or part of the usual metal local loop used for last mile telecommunications

27 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Revenue

28 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Popular Internet activities for Canadian Internet users

29 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Broadband availability, by speed

30 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Residential Internet access technology mix

31 Industry OverviewManitoba TelecomRogers CommunicationBell Canada

32 Industry OverviewManitoba TelecomRogers CommunicationBell Canada

33 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Television The television broadcasting industry delivers over 700 television services to Canadians. The industry includes a number of large ownership groups representing over 92% of television revenues from private conventional television stations and pay, PPV, VOD, and specialty services.

34 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Categories Cable TV – widely used in the world Digital TV (HDTV and SDTV) – more digital channels in the same space, high-definition television service, and other non-television services – special services Internet Protocol television – Interactivity – Video-on-demand – IPTV-based converged services

35 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Market share of major operators

36 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Regulator The Canadian Radio-television and Telecommunications Commission (CRTC) – establishing, monitoring, assessing and reviewing, where appropriate, regulatory frameworks to meet its policy objectives – implementing procedures for the efficient and effective resolution of competitive disputes – making determinations on industry mergers, acquisitions and changes of ownership in the industry

37 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Spectrum Auction Last Spectrum Auction: 2008 Next Spectrum Auction is for 700 and 2500 MHz bands Rules for next spectrum auction will be released by the end of 2011 Rumor: Government will relax the foreign-ownership restrictions in telecommunications Future: Intense competition (some smaller companies are expected to merge)

38 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Spectrum Auction (2008)

39 Industry OverviewManitoba TelecomRogers CommunicationBell Canada MBT – Manitoba Telecom Services

40 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financial Snapshot

41 Industry OverviewManitoba TelecomRogers CommunicationBell Canada 1 Year Performance

42 Industry OverviewManitoba TelecomRogers CommunicationBell Canada 1 Year Relative Performance vs TSX Composite

43 Industry OverviewManitoba TelecomRogers CommunicationBell Canada 1 Year Relative Performance vs TSX Telecom

44 Industry OverviewManitoba TelecomRogers CommunicationBell Canada 5 Year Performance

45 Industry OverviewManitoba TelecomRogers CommunicationBell Canada 5 Year vs. TSX Composite

46 Industry OverviewManitoba TelecomRogers CommunicationBell Canada MTS Allstream Provides a broad range of solutions including high-speed internet, wireless, digital TV, converged IP networking, and unified communications. Operates through two divisions: national and Manitoba division Fourth-largest communications provider in Canada

47 Industry OverviewManitoba TelecomRogers CommunicationBell Canada History 1908: Manitoba Telecom Services Inc. (MTS) was founded by the Manitoba government 1988: MTS entered the wireless business 1994: MTS came under CRTC regulations 1997: Manitoba Telecom Service became a public traded company 1999: Strategic alliance with Bell to form Intrigna, which was a company created to expand telecommunications options for the business market in Alberta and British Columbia. 2004: Ended strategic alliance with Bell and acquired Allstream ($1.6 billion) and become the 3 rd largest national telecom provider in Canad 2006: MTS Allstream acquired Valley Cable Vision (local cable company serving 3700 cable customers) 2009: MTS Allstream formed strategic partnership with Rogers to build state-of-the art HSPA network in Manitoba, and gains access to Rogers’ leading national and international roaming capabilities

48 Industry OverviewManitoba TelecomRogers CommunicationBell Canada MTS Allstream MTS Allstream (TSX: MBT) Serving customers for more than 100 years More than 1.94 million customer connections Revenues of $1.8 billion in 2009 30,000 kilometre national IP fibre network One of Canada’s top employers Allstream (Enterprise Solutions) Operating in business markets nationally Coast-to-coast national IP fibre network Provides international connections through strategic alliances and interconnection agreements with other international service providers Solutions MTS (Consumer market) Operating in consumer and business markets in Manitoba #1 in all telecom markets in Manitoba Highest in-region margins in Canadian telecom industry

49 Industry OverviewManitoba TelecomRogers CommunicationBell Canada MTS Allstream operations MTS Wireless High-speed Internet Television services Converged IP Unified communications, security and monitoring services Local access Long distance and data Allstream Converged IP Unified communications and security Local access Long distance and data

50 Industry OverviewManitoba TelecomRogers CommunicationBell Canada MTS Allstream Revenue Breakdown

51 Industry OverviewManitoba TelecomRogers CommunicationBell Canada MTS Allstream Revenue (year-to-year)

52 Industry OverviewManitoba TelecomRogers CommunicationBell Canada MTS Wireline Revenue (year-to-year)

53 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Allstream Revenue (year-to-year)

54 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Coverage

55 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Coverage (Wireless)

56 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Management Pierre J. Blouin Chief Executive Officer Appointed CEO of each of Manitoba Telecom Services Inc. and MTS Allstream Inc. on December 7, 2005. Group President - Consumer Markets of Bell Canada from May 2003 to October 2005. CEO of Emergis Inc. (formerly known as BCE Emergis Inc.) from May 2002 to May 2003 Executive Vice President of BCE Inc. from March 2002 to May 2002, President and CEO of Bell Mobility Inc., a subsidiary of Bell Canada, from January 2000 to March 2002. holds a Bachelor degree in Finance and Marketing from the École des Hautes Etudes Commerciales “HEC” (affiliated to the University of Montreal) in Montreal

57 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Management David Leith Chairperson became Chair of the Manitoba Telecom Services Inc. Board of Directors on January 8, 2010. was Deputy Chairman and Managing Director of CIBC World Markets and Head of the firm's Investment, Corporate and Merchant Banking activities until February 2009. Adviser to the Minister of Natural Resources on the restructuring of Atomic Energy of Canada Limited (AECL). Director of the Children's Aid Foundation.

58 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Management Wayne S. Demkey, C.A. Chief Financial Officer Wayne Demkey is Chief Financial Officer of each of Manitoba Telecom Services Inc. ("MTS") and MTS Allstream Inc. eleven years with KPMG Chartered Accountants, most recently in the position of Senior Manager Audit and Business Advisory Services. member of the Board of Directors of The Winnipeg Humane Society. Chairman of the Board of Directors of The Winnipeg Humane Society Foundation

59 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Management Kelvin A. Shepherd, P.Eng. President, MTS Mr. Shepherd joined the company in 2000 as Vice- President Network Services and Chief Technology Officer. 20 years with Saskatchewan Telecommunications,most recently as Senior Vice-President and Chief Technology Officer. Chairman of the Executive Board for LCL Cable Communications Ltd. (Leicester, England) prior to its sale by SaskTel in 1995 Chairman of the Board of TR Labs, a leading Western Canadian-based telecommunications research and development organization. Chairperson of the Board of Trustees of Victoria General Hospital in Winnipeg

60 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financials (Quarterly)

61 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financials (Quarterly)

62 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financials

63 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financials

64 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financials

65 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financials (Quarterly)

66 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financials

67 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financials

68 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financials (Quarterly)

69 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Recommendation SELL AND MONITOR!

70 Industry OverviewManitoba TelecomRogers CommunicationBell Canada RCI - Rogers Communication Inc.

71 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financial Snapshot

72 Industry OverviewManitoba TelecomRogers CommunicationBell Canada 1 Year Performance

73 Industry OverviewManitoba TelecomRogers CommunicationBell Canada 1 Year Relative Performance vs TSX Composite

74 Industry OverviewManitoba TelecomRogers CommunicationBell Canada 1 Year Relative Performance vs TSX Telecom

75 Industry OverviewManitoba TelecomRogers CommunicationBell Canada 1 Year Relative Performance vs Dow Jones Canada Titans 60

76 Industry OverviewManitoba TelecomRogers CommunicationBell Canada 5 Year Performance

77 Industry OverviewManitoba TelecomRogers CommunicationBell Canada 10 Year Performance

78 Industry OverviewManitoba TelecomRogers CommunicationBell Canada 2010 Financial and Operating Highlights

79 Industry OverviewManitoba TelecomRogers CommunicationBell Canada 2010 Financial Highlights

80 Industry OverviewManitoba TelecomRogers CommunicationBell Canada 2010 Financial Highlights

81 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Returning Cash to Shareholders

82 Industry OverviewManitoba TelecomRogers CommunicationBell Canada 2010 Cash Return to Shareholders

83 Industry OverviewManitoba TelecomRogers CommunicationBell Canada History 1962 – Ted Rogers founded Rogers Radio Broadcasting Limited and also bought CHFI-FM which quickly became a popular radio station 1967 – Rogers cable started and expanded past 12 channels in 1972 (first company in Canada to do so) 1985 – Rogers Cantel Inc. founded and signalled beginning of expansion into mobile phone market (now called Rogers Wireless) 1994 –Launches 3.1 billion takeover for Maclean Hunter, the largest Canadian takeover at the time

84 Industry OverviewManitoba TelecomRogers CommunicationBell Canada History 2000 – Acquires the Toronto Blue Jays, a major league baseball team 2001 – Acquires Sportsnet and launches HDTV (up to 8 channels, the widest selection in Canada) 2004 – Buys back AT&T interest in Rogers Wireless for $1.8 billion and purchases Microcell(a wireless provider) for $1.6 billion 2007 – Acquires 5 Citytv television stations 2008 – Rogers Wireless launches Apple iPhone 2008 – Rogers takeover Aurora Cable

85 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Business & Strategy strategy- “Our Business is to maximize subscribers, revenue, operating profit and return on invested capital by enhancing our position as one of Canada’s leading diversified communications and media companies”

86 Industry OverviewManitoba TelecomRogers CommunicationBell Canada 2010 Financial Highlights Consolidated revenues up 4% to $12.2B with contributions from all three operating segments Expanded adjusted operating profit margin 80 basis points despite economic & competitive pressures Wireless data revenue up 34% to represent 28% of network revenue Adjusted net income up 10% to $1.7B, with adjusted EPS up 18% Consolidated pre-tax free cash flow increased 14% to $2.1B Repurchased 37.1M Rogers Class B shares for $1.3B Annualized dividend increase 10% to $1.28, further increased 11%to $1.42 in February 2011 Issued $1.7B of investment grade long-term notes on favorable terms reducing the average cost of debt by 59 basis points

87 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Operations 3 Main Divisions of Operations – Rogers Wireless – Rogers Cable – Rogers Media

88 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Wireless the largest Canadian wireless communications service provider serving approximately 9.0 million retail voice and data subscribers carry on both GSM(global standard, coverage to 95% Canada’s population) and 3G HSPA(88% population) technology platforms offers wireless voice, data and messaging services including related handset devices and accessories, across Canada

89 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Recent Wireless Industry Trends Focus on Customer Retention Demand for Sophisticated Data Applications Increased Competition from Other Wireless Operators Migration to Next Generation Wireless Technology Development of Additional Technologies(WiFi, WiMAX and LTE)

90 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Rogers Wireless Strategy Continually enhancing its scale and competitive position Focusing on offering innovative voice and wireless data services Enhancing the customer experience Increasing revenue from existing customers Maintaining the most technologically advanced, high-quality and national wireless network possible with global coverage provide bundled product and service offerings at attractiveprices to common customers

91 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Rogers Wireless Coverage

92 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Wireless Operating and Financial Results

93 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Cable one of Canada’s largest providers of cable television, high-speed Internet access and cable telephony services has 2.3 million television subscribers, representing approximately 29% of all television subscribers in Canada provided digital cable services to approximately 1.7 million of its television subscribers and high-speed Internet service to approximately 1.7 million residential subscribers 146,000 local line equivalents and 42,000 broadband data circuits in service operates a retail distribution chain with approximately 400 stores

94 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Rogers Cable’s Strategy Maintaining technologically advanced Offering a wide selection of advanced and innovative products and services Ongoing focus on enhanced customer experience Targeting its product and content development to the changing demographic trends Continuing to lead the development and expansion Continuing to deepen our presence and core connections

95 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Cable Operating and Financial Results

96 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Cable Operating and Financial Results

97 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Media Including radio and television broadcasting and specialty television businesses Comprises 55 radio stations Television division includes Citytv network, Rogers Sportsnet, Shopping channel, Outdoor Life Network, The Biography Channel and G4 Canada. Publishes consumer magazines and trade and professional publications and directories Owns the Toronto Blue Jays, “MLB” club, and Rogers Centre sports and entertainment venue

98 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Recent Media Industry Trends Migration to Digital Media Consolidation and Ownership of Industry Competitors

99 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Media Operating and Financial Results

100 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Management Ted Rogers Former CEO & Founder Died December 2, 2008 CEO of Rogers from launch in 1960 until his death in 2008 Grew Rogers Communications into one of Canada’s largest media conglomerates

101 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Management Nadir Mohamed, F.C.A. President and Chief Executive Officer Rogers Communications Appointed CEO in March 2009 Joined in August 2000 as COO of Rogers Wireless UBC Undergraduate Degree Chartered Accountant

102 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Management Alan D. Horn, C.A. Chairman, Rogers Communications and President and Chief Executive Officer, Rogers Telecommunications Limited Chairman since 2006 served as VP, CFO of Rogers Communications (1996-2006) President and COO of Rogers Telecommunications Limited (1990-1996) A Chartered Accountant and received a B.Sc. with First Class Honors in Mathematics from the University of Aberdeen, Scotland

103 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Management Philip B. Lind, C.M. Executive Vice President Regulatory and Vice Chairman joined the Corporation in 1969 director of the Council for Business and Contemporary Art Gallery former member of the Board of the National Cable Television Association in the U.S former Chairman of the Canadian Cable Television Association Chairman of the Board of the CCPTA B.A. (Political Science and Sociology) from UBC M.A. (Political Science) from the University of Rochester

104 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financials (Balance Sheet - Quarterly)

105 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financials (Balance Sheet - Quarterly)

106 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financials (Balance Sheet)

107 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financials (Income Statement)

108 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financials (Income Statement - Quarterly)

109 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financials (Income Statement - Quarterly)

110 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financials (Statement of Cash Flows)

111 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financials (Statement of Cash Flows - Quarterly)

112 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financials (Statement of Cash Flows - Quarterly)

113 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financials (Statement of Shareholders’ Equity)

114 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Five-Year Summary of Consolidated Financial Results

115 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Recommendation BUY!

116 Industry OverviewManitoba TelecomRogers CommunicationBell Canada BCE – Bell Canada Enterprises

117 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financial Snapshot

118 Industry OverviewManitoba TelecomRogers CommunicationBell Canada 1 Year vs. TSX Telecom

119 Industry OverviewManitoba TelecomRogers CommunicationBell Canada 5 Year with 10/20 MAVG

120 Industry OverviewManitoba TelecomRogers CommunicationBell Canada 5 Year vs. TSX Telecom Privatization target, April 2007 Acquisition cancelled

121 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Max Year vs. TSX Telecom

122 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Max Year vs. TSX Composite IT bubble

123 Industry OverviewManitoba TelecomRogers CommunicationBell Canada History

124 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Organization Chart BCE Inc. Bell Wireline Bell Phone Bell TV Bell Internet Bell Wireless Bell Mobility Bell AliantBell Media CTV

125 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Privatization Target On June 30, 2007, BCE accepted a bid of $42.75 per share in cash (total $51.7 billion), from the group led by the Ontario Teachers' Pension Plan. On November 26, 2008, KPMG had informed BCE that it would not be able to issue a statement on the solvency of the company after its privatization. As a result, the purchase was cancelled.

126 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Acquisition of CTV Completed on April 1, 2011. BCE acquired the remaining 85% of CTV common shares that it did not already own. Bell Media - Canada's premier multimedia company, include: CTV, CTV2,TSN radio and other specialty TV channels.

127 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Services Bell Home phone local and long distance Bell Mobility, Virgin Mobile and Solo Mobile wireless High-speed Bell Internet and Fibe Internet Bell Satellite TV and Bell Fibe TV IP-broadband Information and communications technology (ICT) services. Bell Media in television, radio and digital media Equipment

128 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Revenue Breakdown

129 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Subscribers: Quarterly

130 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Subscribers: Quarterly

131 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Bell Wireline Wireline services include: – Local and access services (fixed line) – Long distance services (fixed line) – Data services (internet/broadband) – Video services (Bell TV) – Equipment and other

132 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Bell Wireline Subscribers

133 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Bell Wireline Revenue

134 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Best in five years

135 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Q3 11 Wireline Revenue

136 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Fixed line market (Local and access & Long distance services)

137 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Bell TV provide DTH satellite television services on a nationwide basis. Launched FibeTV in Sept. 2010 (IPTV-Internet Protocol television)

138 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Bell TV Q3 2011

139 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Bell TV Connections Q3 2011

140 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Bell Internet provide high-speed Internet access service for residential and business customers through digital subscriber line (DSL) technology, fibre-optic or wireless broadband service. On December 31, 2010, has 2.1 million customers. Launched Bell Fibe internet on Feb 4, 2010 in the Montréal and Greater Toronto areas. (25Mbps, through FTTN network) Deploy the Dual cell technology (42Mbps)

141 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Internet Market

142 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Bell Internet Q3 2011

143 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Equipment and other The Source - a Canadian electronics retailer with over 800 locations across Canada. Purchased by Bell in 2009 from Circuit City Stores renting, selling and maintaining business terminal equipment

144 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Bell Wireless Bell Mobile- a CDMA and HSPA+ based wireless network Solo Mobile-a mobile brand started by Bell Mobility in 2000. Solo is considered a discount wireless brand, offering low price monthly plans with some unlimited options in BC, Alberta, Ontario and Quebec. Virgin Mobile Canada- acquired by Bell in May 2009 for CAN$142 million. 26% of Bell’s total revenue in Q3’11 Sole telecommunications provider of the Vancouver Winter Olympics

145 Industry OverviewManitoba TelecomRogers CommunicationBell Canada

146 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Coverage Map

147 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Bell Wireless Connections Q3 2011

148 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Bell Wireless Revenue

149 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Bell Wireless Operation Q3 2011

150 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Bell Media 9% of total revenue CTV (including 21 operated stations) CTV-TWO 30 cable TV specialty channels (e.g. TSN2, MTV, CTV News) TSN radio (fifth-largest private-sector radio broadcaster)

151 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Bell Media Quarterly Revenue

152 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Executing on cost reduction imperative Reduced 1200 management position ~100M in annualized saving (2010) Wire-line cost reductions in Q3 ~$80M Cost reductions help drive 1.7 point improvement in wire- line EBITDA margin

153 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Management George Cope President and Chief Executive Officer (Since July 2008) BComm (Honours) degree from the University of Western Ontario He had served in public-company CEO roles in the industry for more than 15 years prior to joining Bell in 2005. Also Board Members of BMO

154 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Management 4 th highest paid CEO in Canada

155 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Management Siim A. Vanaselja Executive Vice-President & Chief Financial Officer Honours Bachelor of Business degree from the York University He joined BCE in February 1994 and has held a variety of senior positions in the BCE group. Has been the CFO of BCE since Jan 15,2001 Prior to joining BCE, Mr. Vanaselja was a partner at the accounting firm KPMG Canada

156 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financials (Quarterly)

157 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financials (Quarterly)

158 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financials

159 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financials

160 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financials

161 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Financials (Consolidated Income Statement - Quarterly)

162 Industry OverviewManitoba TelecomRogers CommunicationBell Canada

163 Industry OverviewManitoba TelecomRogers CommunicationBell Canada

164 Industry OverviewManitoba TelecomRogers CommunicationBell Canada

165 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Dividend History (past 5 years)

166 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Summary of Cash Flows

167 Industry OverviewManitoba TelecomRogers CommunicationBell Canada

168 Industry OverviewManitoba TelecomRogers CommunicationBell Canada

169 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Quarterly Financials (Consolidated Statement of Cash Flows)

170 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Quarterly Financials (Consolidated Statement of Cash Flows)

171 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Have BCE shares peaked? It is a belief that BCE has become fully valued following a long run-up in share price since the end of 2008. Including dividends, the return to shareholders has been increased over 100 per cent.

172 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Have BCE shares peaked? Positives A diversified company with financial strengths Raised its dividend eight times since Q4 2008. Spent $1.5B on buying back Launched IPTV in 2010, U.S. experience appears to be encouraging. Negatives Competition is becoming more intense. Cost of revenue up 9.4% (cost of launch IPTV, spending to retain more customers, acquisitions of the source, virgin..)

173 Industry OverviewManitoba TelecomRogers CommunicationBell Canada Recommendation HOLD!