strategy case

STRATEGY CASE
JEUX DU COMMERCE 2013
BCE Inc.
Case written by:
Marc-Antoine Coutu, M. Sc.
Guillaume Tremblay, M. Sc. CPA
Few North American companies are able to say that they have a past and a history as rich as Bell’s (BCE),
also known today as Bell Canada Enterprises. Everything began over 132 years ago, when Alexander
Graham Bell unveiled the idea of a very first telephone to his father. Shortly after, on April 29th, 1880,
the Bell Telephone Company of Canada was incorporated and has been headquartered in Montreal1
since then. Very few companies have had as great an impact on what Canada has become over the last
100 years as Bell has.
...At the beginning of 2013, BCE remains a Canadian success story with more than $20B in revenues and
60,000 employees and continues as a leader within Canadian communications industry. Between
December 2008 and December 2011 Bell’s share price has increased by 141%, one of the best results in
Canada and annual common dividend growth was an admirable 49%. Through successful execution and
a series of major acquisitions George has transformed Bell’s revenue mix so that 81% of revenues are
now derived from the growth segments of Wireless, TV, Data and Media a dramatic shift since 2008.
This success was far from secure only four short years ago prior to George Cope’s appointment as the
Chief Executive Officer of Bell Canada Inc. on July 11, 2008 bringing to a close an eight year cycle of
modest company and share price performance. In 2008 Bell was struggling and had entered into an
agreement to be acquired by an investor group led by Teachers' Private Capital, the private investment
arm of the Ontario Teachers' Pension Plan, Providence Equity Partners Inc., Madison Dearborn Partners,
LLC, and Merrill Lynch Global Private Equity. The transaction was scheduled to close on or before
December 11, 2008 but failed to proceed due to KPMG’s conclusion that a required test for the solvency
opinion was not met, this mutual condition to completion of the acquisition could not be, and was not,
satisfied," said a statement from BCE Acquisition Group Inc.
Share Price Performance
During the decade prior to 2008 Bell’s business increasingly came under fire due to the combination of
competitive threats and technology changes. The wireless business had failed to capture an equal share
of the category growth and the landline trajectory became negative due to wireless substitution, the
launch of Cableco VoIP services and their enhanced internet DOCSIS technology investments.
Consequently BCE was not as successful as its competitors were. Bell’s ‘Holding company’ strategy
including the significant failure of the $11.8B Teleglobe acquisition on Feb 15th, 2000 which cannibalized
massive sums of capital required to support the competitiveness of the core wireless and wireline
businesses. The Teleglobe asset was written off in 2002 and the CEO later resigned. The combination of
1
BCE.ca
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these factors resulted in very weak relative share price performance during the decade. Bell’s share
price growth rate was only 5% between February 2001 and February 2010 which was well below the
competition and disappointing when compared to the 50% gains recorded by the S&P/TSX over the
same time period. Bell’s current strategy has moved from a Holding Company to an Operating Company
and the combination of the improved strategy as well as execution has rewarded shareholders with a
two year return from February 2010 to December 2012 of 60%, far superior to the S&P/TSX’s at 7%2.
BELL’S Strategy
Post the cancelled privatization of BELL, George Cope, President and Chief Executive Officer, BCE Inc.
and Bell Canada, reconfirmed his goal for the company - “We are dedicated to achieving a clear goal: For
Bell to be recognized by customers as Canada’s leading communications company. Diligent execution of
the 5 Strategic Imperatives we first set out in 2008 has transformed Bell into an increasingly efficient,
customer-focused competitor in every sector of the communications industry.”3 BCE added a sixth
strategic imperative to the five set out in 2008, it is especially related to the acquisition of CTV and it
aims to expand media leadership. Here are the six strategic imperatives, as introduced by the president
in the last annual report of 2011:






Accelerate wireless
Leverage wireline momentum
Expand media leadership
Invest in broadband networks and services
Achieve a competitive cost structure
Improve customer service
“The Bell team is excited about the opportunities ahead for your company and we are eager to
achieve our goal. We remain dedicated both to this great company’s success and to continuing to
deliver exceptional value to you, our shareholders.
- George Cope
Under the direction of a new, more focused leadership team the company aggressively pursued each of
the key initiatives.
Accelerate Wireless
Wireless has been an excellent growth category since it was launched about 28 years ago in Canada.
Notwithstanding this tremendous opportunity, Bell’s fortunes in this segment were weak in 2007 when
the company only captured 18% of the market growth versus Rogers and Telus. Significant leadership
and strategy changes were made resulting in dramatically improved performance, by 2011 Bell now
captured a 39% share of subscriber growth.
2
3
Bloomberg
BCE Annual Report, 2011
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The transformation of Bell Mobility’s performance required strategic investments in the following areas:







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A multi-billion dollar investment in two new wireless network technologies, HSPA and LTE to
create a truly best in world network experience – largest and fastest
New, fresh company branding and creative execution introduced during Bell’s sponsorship of
the Vancouver Olympics
Large scale distribution expansion post the acquisition of The Source retailer that added over
700 stores
Secured distribution rights to sell the iPhone in Canada, over 52% of Bell’s customers have
smartphones
Undisputed mobile TV leadership with the most live TV channels and viewership
Secured full ownership of the Virgin Mobile joint venture and merged the business into Bell
Mobility
Dramatically improved customer service and experience while reducing support cost and
customer churn to much lower levels
Network investments are shared with Telus on a national basis resulting in lower capex
expenditures and greater cash flow
Expand Media Leadership
Bell’s successful acquisition of CTV to create Bell Media has been a key highlight of Bell’s success since
2008. George Cope believes in a core strategy of convergence - the seamless flow of content across
the “four screens” – of TVs, smartphones, tablets and computers – and the ability for Bell’s
television programming to enhance the appeal of Bell’s bread-and-butter telecom services like
Internet, wireless phones and TV. “We’re not acquiring it as a hedge,” Mr. Cope explained on a
Friday call with analysts. “It’s part of a clear strategy in a market where all of our major
competitors in Canada, in the TV business, have content relationships and content businesses.”
To further support Bell’s leadership position in the media segment Bell has made an offer to purchase
Astral Media. Astral has an attractive mix of speciality channels, radio stations and outdoor media that
will further support Bell’s success. The deal levels that playing field in Quebec by giving Bell a 32% share
of French Language TV versus Videotron’s 35% market share. The deal still requires regulatory approval
from the Canadian Radio-television and Telecommunications Commission, as well as the Competition
Bureau. The combined business will have revenues of about $3B and if the deal is approved, it will
continue George Cope’s reshaping of the historic company. The proof of Bell’s sharp turn is on the
financial statements: Since 2010, Bell has pulled in more revenue from TV services than it has from its
deteriorating land-line phone business. That’s “quite a statement, if you think of the history of Bell
Canada,” Mr. Cope said when the company bought CTV.
Invest in Broadband Networks and Services & Leverage Wireline Momentum
Bell invests more than $3B each year in network expansion and capacity, new IT systems and new
services. The capital expenditure represents approximately 16% of revenues and is the largest annual
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capital investment excluding natural resource companies and the third highest level of R&D expenditure
within Canada. Bell is committed to a multi-year program that will see billions invested in faster wireline
network capacity through a combination of fibre to the node and fibre to the home technologies.
Quebec City was one of the first cities to be completely built with Fibre to the Home technology
delivering the capability for internet data speeds well in excess of 200 MB. The launch of Fibe TV in all of
the homes where the faster network has been deployed is a key strategy to improve Bell’s hare of wallet
and household bundle penetration. Bell is also at the forefront of data hosting and cloud computing
through recent billion dollar acquisitions as well as the construction of a state-of-the-art centre hosting
center that opened in Gatineau recently. Businesses overwhelming run on Bell’s network and the Bell
Business Markets Division would be one of the 60 largest companies in Canada if it was a separate
company.
Achieve a Competitive Cost Structure
George knew that competitive pressure combined with structural issues in some of the businesses
would require significant improvements in Bell’s cost structure. While the task of delivering the cost
efficiency savings is one of the most challenging activities a leadership team needs to deliver upon,
successful execution in this area has directly supported Bell’s strategy to both grow and diversify the
revenue stream into new business areas. The more than $1B in cost savings have been used to partially
enhance margins as well as fund some of the following acquisitions since 2008:
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The Source - $135 million
CTV – $3.2 billion
Naming right to the Molson Center (Montreal Canadiens’ home), Now called Bell Centre- $100
million for 20 years.
HyperTec Data Hosting – terms not disclosed
Q9 Networks - $1.1 billion
Virgin Mobile Canada- $142 million
Maple Leaf Sports and Entertainment (Toronto Maple Leafs, Toronto FC, Toronto Marlies,
Toronto Raptors) – $1.07 billion (with Rogers)
Improve Customer Service
Over the last decade Bell had earned a less than admirable service reputation across most areas of their
business. Significant improvements were made in the Field Services team after the appointment of Mary
Ann Turcke as EVP during 2008 resulting in a much better experience:


Appointment arrival on time – 98% vs. 80% prior to 2008
Same Day/Next Day Repair - >90% vs. < 50% “ “
“
During the fall of 2010 a new role was created at the Executive level reporting to the CEO in order to
accelerate the improvement in customer service, John Watson joined Bell to lead this new role. A
significant 135% increase in capital expenditures to deliver improvements in processes and systems was
approved for 2011 and 2012 resulting in a much better call center and self service experience at lower
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costs and churn levels. Customer satisfaction scores have risen over 60% since 2010 and service
improvement within industry benchmark surveys over the same time period have been industry
leading. Notwithstanding the improvement is service since 2010 Bell has much work left accomplish
before they eclipse the performance of the best –in-class competitor.
INDUSTRY
Telecommunications, radio and television broadcasting play a central role in the Canadian economy. In
2011, this sector was generating total revenues of $5.9 billion within a $1,750 billion GDP in Canada
(3.4%). In the same year, 99% of Canadians had access to telecommunication services and 72% had
access to a 4-service platform (Internet, cable, satellite TV, mobile phone).4
In 2011, the 13.7 million households in Canada spent an average of $181 a month for these services.
Residential users generate approximately 50% of the industry’s total revenues.5 This sector has shown
an important growth for the last few years, starting at $51 billion in 2007 and reaching $59.3 billion five
years later. The growth, compared with 2010, was of 2.8%.
Telecommunications are a key element in Canada’s economic development, but also present a
considerable challenge. Indeed, Canada is an extremely vast country. This creates a need for major
investments in order to offer all Canadians a complete selection of quality services, even in remote
regions. In Canada, the population density is of 3.5 residents per square kilometer, comparatively to a
world average of 45.3 residents per square kilometer. If we compare, Canada’s population density is 10
times less important than in the United States and 30 times less important than in France.6 The key
implication is that it costs a lot more to provide services reducing profits and or increasing rates.
This industry is regulated by the 1993 Telecommunications Act and the Canadian Radio-television and
Telecommunications Commission (CRTC): “The CRTC’s mandate is to ensure that both the broadcasting
and telecommunications systems serve the Canadian public. The CRTC uses the objectives in
the Broadcasting Act and the Telecommunications Act to guide its policy decisions.”7 The essential point
of CRTC’s mission is to insure that Canadians have access to a world-class communications system. In
concrete terms, it does not want the consumer to be limited in its options and it wants the competition
to be fair. The CRTC can forbid mergers and acquisitions and can also stop companies from offering a
service, in the condition that the customer already uses another service. This creates barriers to entry
that are too restrictive and does not perceive the services as mutually independent.
TELECOMMUNICATIONS
In 2011, the telecommunications industry revenue was $42.7 billion, which represents a 2.5% growth
compared to 2010. The sector’s growth is highly stimulated by the robust expansion of wireless demand,
4
CRTC Monitoring report 2012
IBID
6
Statistics Canada
7
http://www.crtc.gc.ca/eng/backgrnd/brochures/b29903.htm
5
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which went from $26.6 billion to $28.4 billion (6.8%) during the same period. Wireless services
represent 66.5% of all telecommunications services. The remaining percentage comprises “wireline”
services, which recorded a 5% decrease since 2010. For instance, long-distance telephony services
recorded a 13.1% decline within a single year.
The wireline segment within the telecommunications industry has experienced a significant decline
since 2007, when wireline services represented $20.7 billion and 60% of the industry’s revenues. Today,
they only represent 35% and $14.3 billion. The average rate of revenues decline over five years, is about
7.1%. On the growth side, wireless services went from $17.3 billion in 2007 to $28.4 billion in 2011, with
an average growth rate of 10.4%.
These trends are expected to continue and wireless penetration will continue to grow as consumer add
tablets to their accounts. Wireless data consumption will experience massive growth over the next 5
years as consumers stay connected and entertained wherever they travel. Attractive unlimited wireless
pricing will likely a accelerate the growth of wireless only households. In 2011, 10% of households were
in that situation and this proportion was almost nonexistent five years ago. In this market, there is
enormous competition regarding the speed of the service and prices. Competition has stimulated one of
the earliest worldwide deployments of LTE technology resulting in 100% faster mobile internet speeds.
Smartphone subsidies are also moving up in lock step with the competitive intensity and growth of
consumer demand for iPhones and Samsung Galaxy smartphones resulting in higher costs to acquire
and retain wireless subscribers. Lastly, companies are also aggressively bundling 3 or 4 services with
attractive discounts to improve subscriber growth and retention.
BROADCASTING
The second segment is television and radio broadcasting. It represented $16.6 billion in 2011, with
attractive growth of 5.5% compared to 2010 and 28% compared to 2007 (5 years). The market is highly
stimulated by the expansion of HD cable and satellite services and channels ($8.6 billion and a 5.8%
growth compared to 2010) and by pay-per view and specialty channels expansion and penetration ($3.7
billion and a 7.9% growth compared to 2010).8 9
BCE INC.
BCE Inc. is the biggest telecommunications company in Canada. It provides services to both residential
and business clienteles in order to offer a solution that is adapted to all communication needs. In 2011,
it recorded annual sales of $19.5 billion. Since 2008, it generated an impressive return of 141% for its
shareholders. Bell’s activities are divided into four distinct sectors: wireline services, wireless services,
Bell Media and Bell Alliant.10
8
CRTC Monitoring report 2008
CTRTC Monitoring report 2012
10
BCE Annual Report, 2011
9
STRATEGY CASE – JDC 2013
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A- BELL WIRELINE SERVICES
Bell’s wireline sector offers local and long-distance services, data services including Internet access
services, and information technology solutions. This division serves both residential and business users.
It is accountable for 53% of Bell’s revenues and records an EBITDA of 39%, significantly higher than it’s
US peer group and Telus. It showed a 3% decrease in revenues compared to last year, but its dollar
profit is higher due to successful cost management. Since September 2010, Bell has been offering the
Fibe TV service, which is a new IPTV technology offering capabilities far superior to traditional cable.
Whole home PVR, integrated social media Apps the future potential of wireless 100 “ LCD TVs will
provide competitive product superiority but at a significant cost of acquisition. TV services (Satellite and
IPTV) were the only areas of growth within this Bell division yielding growth of 4.7% for a total of $1.8
billion in 2011. Bell put considerable effort in the sale of Fibe TV technology which has increased the
level of competitive intensity with Cablecos who are beginning to lose TV market share
B- BELL WIRELESS SERVICES
Bell wireless offers voice and digital data integrated services to residential and business users
throughout Canada. The division’s growth is consistent and was of 6.6% between 2010 and 2011,
reaching $5.2 billion. The division records a stable EBITDA of 35% between the two years. Generally
speaking, telecommunications specialists agree to estimate that the global increase should be
somewhere between 3% and 10% in the next years. This increase should normally be stimulated by the
growing demand for mobile telephony. The penetration rate of cell phones is of 78% in Canada and is
often over 100% in other countries such as the United States.
C- BELL MEDIA
This division was created in April 2011, when Bell acquired CTV Inc. Bell Media is the largest and most
successful media business in Canada and operates 28 traditional channels including CTV, the most
watched television network in the country according to the number of viewers. It owns 30 specialty
channels including TSN Sports Network, the most popular specialty channel in Canada. It also owns RDS,
the most popular French-language specialty channel in Canada. However, Bell Media’s interest is not
limited to television: it owns 33 radio stations and numerous websites including sympatico.ca. Despite a
shortened year, its sales added up to $1.5 billion with an EBITDA of 22%.
D- BELL ALLIANT
Bell Alliant offers services to residential and commercial clients from Atlantic Canada and to rural and
regional zones in Ontario and Québec. The services selection is very wide: local and long-distance
telephony, Internet access, data, television, wireless, information technology (IT) and other information
and communication technology services. BA has deployed one of the largest Fibre to the Home
networks in Canada delivering internet speeds in excess of 200 MB and a high quality IPTV service
resulting in significant share gain from the Cablecos they compete with. Its revenues were of $2.8
billion, showing a small decline compared to 2010. EBITDAs remain at an extremely interesting 47.5%.
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COMPETITIVE ENVIRONMENT
BCE is exposed to intense competition in all the business segments in which it evolves. Its market shares
are coveted by many competitors. This can have a disadvantageous effect on the company’s
development, growth and financial 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 VoIP, in particular, have reduced 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 financial, marketing, personnel and technological resources than has historically been
required. We expect this trend to continue in the future, which could adversely affect our growth and
our financial performance.”11
Many competitors are involved in the Canadian communications industry. Among BCE’s most important
competitors are Telus, Rogers, Cogeco, MTS Allstream, Shaw and Quebecor. These companies also
compete for shares in one or several market segments currently exploited by BCE, such as wireline,
wireless, Internet, television, media and wholesale.
TELUS CORPORATION INC.
Telus Corporation Inc. is one of the biggest telecommunications suppliers in Canada, recording revenues
of $10.3 billion and a net benefit of $1.21 billion in 2011. These results are higher than the ones of 2010
by 6.1% or $605 million, compared to revenues of $9.7 billion in 2010. In 2012, the company projects
revenuees of anywhere between $10.7 and $11 billion, with a growth of 4% to 7% compared to 2011.
Just like BCE, Telus offers a wide variety of products. They offer, among others, products related to
wireline, wireless, Internet and long distance telephony services. They are not involved in the media
sector than BCE but benefit from a much higher proportion of their revenue mix is from wireless.12
From February 2001 to December 2012, Telus’ stock (TU) has showed a sometimes irregular growth but
nonetheless interesting, its value going from approximately $23 to $65 per share.
ROGERS COMMUNICATIONS INC.
Rogers Communications Inc. is a major Canadian company, also specialized in the communications and
media industry. The company offers services through three main divisions: Rogers Wireless, Rogers
Cable and Rogers Media, which contribute respectively for 57%, 27% and 13% of Rogers’ total revenues.
The other 3% come from other sources of income. The company offers a wide range of services in
relation to telephony, Internet and cable television and are a major player in radio broadcasting,
television broadcasting and other printed and online media13.
11
IBID
Bloomberg
13
Rogers Annual Report, 2011
12
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In 2011, Rogers Communications recorded total revenues of $12.4 billion, compared to $12.1 billion in
2010 and $11.7 billion in 2009. From February 2001 to December 2012, Rogers’ stock (RCI) went from
approximately $8 to nearly $4614.
VIDEOTRON
Videotron is a big player in Canadian telecommunications specialized in many fields such as cable
broadcasting, interactive multimedia development, Internet access services, cable telephony and
wireless telephone services. Videotron is a subsidiary of Quebecor Media since 2001 and has an
outstanding position in the Province of Quebec. Through Videotron, Quebecor is the largest cable
operator in the Province of Quebec and the third largest in Canada, covering approximately 78% of the
Province of Quebec as of 2011. The core business of Videotron is its cable services: Internet (71,6% of its
basic customers), television (75,3% of its basic customers) and telephony (penetration rate of 64,7% of
its basic cable subscribers). Being a leader in the cable industry, Videotron is now focusing more on the
mobile services industry. Videotron’s strategy in the coming years is to build on its position as a
telecommunication leader and gain market share in the mobile services industry with its 4G mobile
service.
In 2011, Quebecor Inc. recorded total revenues of $4.3 billion, compared to $4 billion in 2010 and $3,87
billion in 2009. From February 2001 to December 2012, Quebecor’s stock (QBR) went from
approximately $19 to nearly $38.
ECONOMIC ENVIRONMENT
Economists agree to say that the global GDP will show an increase of 3.3% in 2012, 0.2% less than what
was expected in July. Consequently, the GDP’S estimated growth in 2013 went from 3.9% to 3.6%, 1%
less than what was planned a year ago. Global economy remains at growth, but this growth remains
inferior to historical trends.
Despite many worries regarding the fiscal position in the United States, American economy is showing
encouraging signs of recovery. Indeed, the employment rate tends to be stable and might even lower to
less than 8%. The real estate market also shows interesting signs through a growth in single-family
house sales in 2012. An increase in the values of real estate is followed by an increase in the net value of
American households’ equity in real estate assets, which are now at 44% compared to 37% in 2009.15
In Canada, exportations did not meet expectations and never reached the peak they encountered
before the economic crisis. Fortunately, this gap is filled by household consumption, which largely
surpassed historical peaks. Thus it is no surprise that household debt has recently reached 163% of
disposable income, a disturbing statistics for many. Despite this high consumption, inflation remains
slightly above 1%, so it is not urgent for the Bank of Canada to tighten short-term interest rates. In 2012,
Canadians have spent 4.1% of their disposable income on telecommunications. It would be surprising to
14
15
Bloomberg
http://www.rbc.com/economics/market/pdf/fcst.pdf
STRATEGY CASE – JDC 2013
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see this proportion decline, even though a reduction in loans or interest rates would negatively affect
disposable incomes16.
Low interest rates should allow supporting the real estate market despite obvious signs of recession.
The income of major Canadian companies represented 9.5% of the GDP in the third quarter, a very
positive fact which encourages important investments in 2013.
CONCLUSION
In 2011, BCE’s achievement of various strategic and financial goals allowed them to successfully grow
once again and build on the investor confidence created since 2008. Bell’s stock performance has been
well supported due to its position as a stable, dividend growth stock during a period of stock market
volatility and very low interest rates. Reaching every financial target established beforehand, performing
strongly on stock markets and significantly improving operational efficiency has created impressive
growth in net benefits and favorable capital accumulation, which entitles the company with an
advantageous flexibility in such a competitive context. BCE is now ensured to have the capacity to invest
in new networks and strategic takeovers as well as increasing the return for their shareholders17.
Bell leaders are driven to achieve their primary objective: that BCE is recognized by its customers as the
leading communications company in Canada. To this effect, BCE’s President and Chief Executive Officer,
George Cope, remains convinced that achieving this ambitious goal will result from the successful
execution of the six strategic imperatives18:






Accelerate wireless
Leverage wireline momentum
Expand media leadership
Invest in broadband networks and services
Achieve a competitive cost structure
Improve customer service
George Cope’s transformation of Bell since 2008 has been simply profound and shareholders and
customers have been well rewarded with exceptional returns. However, past success counts for little
moving forward and the retail as well as institutional investors want to ensure that the company
continues to produce the results that yield their expected returns. Competitive pressures have grown in
a variety of areas and there are a number of risks facing the seasoned and capable Bell Executive team.
Key challenges facing Bell and its Executive team:
16
CRTC Monitoring report, 2012
17
BCE Annual Report, 2011
18
IBID
STRATEGY CASE – JDC 2013
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1) Competition
Traditional wireline
 TV category saturation and Cableco competitive response in the face of TV subscriber
losses for the first time due to Fibe TV growth
 Structural category declines due to substitution - Home Phone erosion
 New breed of TV competitors (Google, Apple, Netflix, Amazon)
2) Wireless
 flat rate voice pricing and deep discounts from new wireless entrants
 Higher smartphone subsidies
3) Regulatory Issues – Jean-Pierre Blais, the new head of the CRTC with a broad mandate to
improve customer experience.
 New wireless code of conduct hearings in February 2013 may have implications for the
wireless business
 700 MHz wireless spectrum auction in 2013-14 – important spectrum for long term
growth, impact of the auction rules
 Require approval for the revised proposal to acquire Astral Media
 Recent negative CRTC rulings: i) Astral acquisition (original proposal), ii) vertical
integration - media price arbitration, iii) wholesale usage based internet pricing, iv) Fibre
to the node resale, v) wireless entrant spectrum auction and resale
4) High wireline capital investments in networks, Fibe TV and new systems, modest revenue
growth and resulting cash flow implications
5) Pension Liability – over $2.3B in top up payments made over the last couple of years to reduce
the unfunded liability. Low interest rate environment has significantly reduced the fixed income
rate of return to support the funding for more than 30,000 current retirees with defined benefit
pension requirements.
In the face of these significant threats, George and his management team need to review their strategy
to ensure there is sufficient revenue and profit expansion to support their successful dividend growth
model while investing incrementally to ensure the competitiveness of their wireline business and the
resulting long terms success.
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Appendix 1 | Historical Stock Market Performance
January 2008 to December 20012
http://ca.finance.yahoo.com/echarts?s=BCE#symbol=bce;range=5y;compare=rci-b.to+tu+qbra.to+%5Egsptse;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined
January 2003 to December 2007
http://ca.finance.yahoo.com/echarts?s=BCE#symbol=bce;range=20010108,20080107;compare=rci-b.to+tu+qbra.to+%5Egsptse;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined
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Appendix 2 | Financial and Operational Highlights, BCE Inc
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Appendix 3 – Bell Products and Services
BCE Inc.
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Appendix 4 | Segmented Analysis, BCE Inc.
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Appendix 5 | Revenues by market sector
CRTC Communications Monitoring report 2012
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Appendix 6 | Evolution of Canadian Industry
CRTC Communications Monitoring report 2012
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Appendix 6 | Evolution of Canadian Industry (continued)
CRTC Communications Monitoring report 2012
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Appendix 7 | Competitive Environment
CRTC Communications Monitoring report 2012
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Appendix 8| Suggested Links
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BCE Inc. 2011 Annual Report
Telus Corporation Inc. 2011 Annual Report
Rogers Communications Inc. 2011 Annual Report
CRTC Communications Monitoring Report 2012
STRATEGY CASE – JDC 2013
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Additional Information
Source: CRTC Communications Monitoring Report 2012
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Additional Information (continued)
Source : CRTC Communications Monitoring Report 2012
STRATEGY CASE – JDC 2013
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Un joueur important dans la société québécoise
Employeur de
premier plan
Investissements
d’envergure
Leader en
innovation
Grand partenaire
dans la communauté

2ième plus grand
employeur du
secteur privé

Achats de biens et
services : 2,1 milliards $

R-D : >400 millions $
les 2 dernières années




Employés : >17 000
Salaires et avantages
sociaux : 900 millions $
Chef de file en
environnement
Partenaire majeur
d’événements culturels
et sportifs


Retraités : 13 000



Dirigeants : 45
Investissements :
3 milliards $ (2010-2012)

Taxes : 937 millions $
Plus de 20 millions $
en commandites et
partenariats par année
au Québec

Bell, Virgin, La Source :
+250 points de vente
Seule entreprise d’ici
listée au palmarès
mondial “Newsweek
Green Rankings” 2012
(13ième)

Appui majeur en santé
mentale: 20 millions $
Campus de l’Île-des-Sœurs
STRATEGY CASE – JDC 2013
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