40-F

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 40-F

REGISTRATION STATEMENT PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

OR

X ANNUAL REPORT PURSUANT TO SECTION 13(A) OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended: December 31, 2017 Commission File Number: 1-8481

BCE INC.
(Exact name of Registrant as specified in its charter)

Canada
(Province or other jurisdiction of incorporation or organization)

4813
(Primary Standard Industrial Classification Code Number (if applicable))

98-0134477
(I.R.S. Employer Identification Number (if applicable))

1, carrefour Alexander-Graham-Bell, Building A, 8^th Floor,
Verdun, Québec, Canada H3E 3B3, (514) 870-8777
(Address and telephone number of Registrant’s principal executive offices)

CT Corporation System, 111 Eighth Avenue, 13th Floor, New York, N.Y. 10011, (212) 894-8940
(Name, address (including zip code) and telephone number (including area code) of agent for service in the United States)

Copies of all correspondence should be sent to:
Michel Lalande Senior Vice-President - General Counsel & Corporate Secretary BCE Inc. 1, carrefour Alexander-Graham-Bell Building A, 7th Floor Verdun, Québec H3E 3B3 Canada Tel: (514) 786-8424	Donald R. Crawshaw Sullivan & Cromwell LLP 125 Broad Street New York, New York 10004-2498 Tel: (212) 558-4000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Common shares Name of each exchange on which registered
New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

For annual reports, indicate by check mark the information filed with this form:

X Annual Information Form X Audited Annual Financial Statements

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report:

Common Shares	900,996,640
First Preferred Shares
Series R	8,000,000
Series S	3,513,448
Series T	4,486,552
Series Y	8,081,491
Series Z	1,918,509
Series AA	11,398,396
Series AB	8,601,604
Series AC	5,069,935
Series AD	14,930,065
Series AE	9,292,133
Series AF	6,707,867
Series AG	4,985,351
Series AH	9,014,649
Series AI	5,949,884
Series AJ	8,050,116
Series AK	22,745,921
Series AL	2,254,079
Series AM	9,546,615
Series AN	1,953,385
Series AO	4,600,000
Series AQ	9,200,000
Total First Preferred Shares	160,300,000

Indicate by check mark whether the Registrant by filing the information contained in this Form is also thereby furnishing the information to the U.S. Securities and Exchange Commission (the “SEC” or “Commission”) pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934 (the “Exchange Act”). If “Yes” is marked, indicate the file number assigned to the Registrant in connection with such Rule.

YES 82-____________ NO X

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Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.

YES X NO

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).

YES X NO

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.

Emerging Growth Company

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised accounting standards† provided pursuant to Section 13(a) of the Exchange Act.

† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

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PRIOR FILINGS MODIFIED AND SUPERSEDED

The annual report on Form 40-F of BCE Inc. (“BCE”) for the year ended December 31, 2017, at the time of filing with the Commission, modifies and supersedes all prior documents filed pursuant to Sections 13, 14 and 15(d) of the Exchange Act for purposes of any offers or sales of any securities after the date of such filing pursuant to any registration statement or prospectus filed pursuant to the Securities Act of 1933 which incorporates by reference such annual report on Form 40-F.

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AND
MANAGEMENT’S DISCUSSION AND ANALYSIS

A. Annual Audited Consolidated Financial Statements

For the BCE annual audited consolidated financial statements for the year ended December 31, 2017 (the “BCE 2017 Financial Statements”), see pages 114 to 163 of the BCE 2017 Annual Report (the “BCE 2017 Annual Report”), which BCE 2017 Financial Statements are contained in Exhibit 99.2 and are incorporated herein by reference.

B. Management’s Discussion and Analysis

For the BCE management’s discussion and analysis of financial condition and results of operations for the year ended December 31, 2017 (the “BCE 2017 MD&A”), see pages 28 to 111 of the BCE 2017 Annual Report, which BCE 2017 MD&A is contained in Exhibit 99.2 and is incorporated herein by reference.

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 filed or submitted under Canadian or U.S. securities laws is recorded, processed, summarized and reported within the time periods specified under those laws, and include controls and procedures that are designed to ensure that the information is accumulated and communicated to management, including BCE’s President and Chief Executive Officer (“CEO”) and Executive Vice-President and Chief Financial Officer (“CFO”), to allow timely decisions regarding required disclosure.

As of December 31, 2017, 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 defined in Rule 13a-15(e) under the Exchange Act, and under National Instrument 52-109 – Certification 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 Manitoba Telecom Services Inc. (MTS), which we acquired on March 17, 2017. The contribution of the acquired MTS operations to our consolidated financial statements for the year ended December 31, 2017 was approximately 3% of consolidated revenues and 3% of consolidated net earnings. Additionally, at December 31, 2017, the current assets and current liabilities of the acquired MTS operations represented approximately 2% and 4% of our consolidated current assets and current liabilities, respectively, and their non-current assets and non-current liabilities represented approximately 7% and 2% of our consolidated non-current assets and non-current liabilities, respectively. The design and evaluation of the disclosure controls and procedures of MTS will be completed for the first quarter of 2018. Further details related to the acquisition of MTS are disclosed in Note 3 Business acquisitions and dispositions, in the BCE 2017 Financial Statements.

Based on that evaluation, which excluded the disclosure controls and procedures of MTS, the CEO and CFO concluded that our disclosure controls and procedures were effective as of December 31, 2017.

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INTERNAL CONTROL OVER FINANCIAL REPORTING

A. Management’s report on internal control over financial reporting

The report of BCE’s management entitled “Management’s report on internal control over financial reporting” appearing at page 112 of the BCE 2017 Annual Report, which report is contained in Exhibit 99.3, is incorporated herein by reference.

B. Auditors’ report on internal control over financial reporting

The report of independent registered public accounting firm concerning the effectiveness of BCE’s internal control over financial reporting appearing at page 113 of the BCE 2017 Annual Report, which report is contained in Exhibit 99.3, is incorporated herein by reference.

C. Changes in internal control over financial reporting

There have been no changes during the year ended December 31, 2017 in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

STATEMENT REGARDING CONTROLS AND PROCEDURES

There can be no assurance that our disclosure controls and procedures will detect or uncover all failures to disclose all material information otherwise required to be set forth in our disclosure. Furthermore, a control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance with respect to the reliability of financial reporting and financial statement preparation. Accordingly, BCE does not expect that BCE’s internal control over financial reporting will prevent or detect all errors and all fraud. BCE will continue to periodically review its disclosure controls and procedures and internal control over financial reporting and may make modifications from time to time as considered necessary or desirable.

AUDIT COMMITTEE FINANCIAL EXPERT

In respect of the current members of BCE’s Audit Committee (Audit Committee), the board of directors of BCE determined that the current Chair of the Audit Committee, Mr. P.R. Weiss, and Mr. D.F. Denison, Ms. K. Lee and Ms. M.F. Leroux are qualified as “audit committee financial experts”, and that all members of the Audit Committee are independent under the listing standards of the New York Stock Exchange.

CODE OF ETHICS

All employees, directors and officers must follow Bell Canada’s Code of Business Conduct (the “Code of Conduct”), which provides guidelines for ethical behaviour. The Code of Conduct includes additional guidelines for executive officers and management, including the CEO, CFO, Controller and Treasurer. The Code of Conduct is available in the governance section of BCE’s website at BCE.ca and will be provided in print at no charge to any person who sends a written request by mail to BCE Inc. addressed to the Corporate Secretary, at 1, carrefour Alexander-Graham-Bell, Building A, 7th Floor, Verdun, Québec, Canada H3E 3B3.

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In 2017, amendments were adopted to the Code of Conduct in order to:

• update the section entitled Conflicts of Interest as it relates to the obligation, and method, of disclosing actual or potential conflicts of interest
• update the section entitled Political Activities to clarify the scope of the policy as it relates to lobbying on behalf of Bell Canada
• update the section entitled Hiring Consultants or Contractors as it relates to the pre-qualification process of contractors performing high risk work
• update the section entitled Protecting the Environment to reorganize some of its content

In addition to these changes, certain other technical, administrative and non-substantive amendments were made to clarify the Code of Conduct and update various references.

A copy of the Code of Conduct, as amended, has been posted on BCE’s website at BCE.ca and is included as Exhibit 99.4 to this annual report on Form 40-F.

PRINCIPAL ACCOUNTANT FEES AND SERVICES

A brief description of our pre-approval policies and procedures and information about principal accountant fees and services can be found under the sections entitled “Pre-approval policies and procedures” and “External auditors’ fees” on pages 34 and 35 of our Annual Information Form contained in Exhibit 99.1, which sections are incorporated by reference in this annual report on Form 40-F.

In 2017 and 2016, no audit-related, tax or other services were submitted to BCE’s Audit Committee for approval pursuant to the pre-approval requirement waiver provision set out in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

OFF-BALANCE SHEET ARRANGEMENTS

Please see the sections entitled “Contractual obligations” and “Indemnifications and guarantees (off-balance sheet)” at page 85 of the BCE 2017 MD&A contained in Exhibit 99.2 (which sections are incorporated by reference in this annual report on Form 40-F) for a discussion of certain off-balance sheet arrangements.

TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS

Please see the section entitled “Contractual obligations” at page 85 of the BCE 2017 MD&A contained in Exhibit 99.2 (which section is incorporated by reference in this annual report on Form 40-F) for a tabular disclosure and discussion of contractual obligations.

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IDENTIFICATION OF THE AUDIT COMMITTEE

BCE has a separately designated standing Audit Committee established in accordance with section 3(a)(58)(A) of the Exchange Act. BCE’s Audit Committee is comprised of seven independent members: Mr. P.R. Weiss (Chair), Mr. D.F. Denison, Mr. R.P. Dexter, Mr. I. Greenberg, Ms. K. Lee, Ms. M.F. Leroux and Mr. R.C. Simmonds.

MINE SAFETY DISCLOSURE

Not applicable.

UNDERTAKING

BCE undertakes to make available, in person or by telephone, representatives to respond to inquiries made by the Commission staff, and to furnish promptly, when requested to do so by the Commission staff, information relating to the securities in relation to which the obligation to file this annual report on Form 40-F arises or transactions in said securities.

WEBSITE INFORMATION

Notwithstanding any reference to BCE’s website or other websites on the World Wide Web in this annual report on Form 40-F or in the documents attached as Exhibits hereto, the information contained in BCE’s website or any other site on the World Wide Web referred to in this annual report on Form 40-F or in the documents attached as Exhibits hereto, or referred to in BCE’s website, is not a part of this annual report on Form 40-F and, therefore, is not filed with the Commission.

SUMMARY OF SIGNIFICANT DIFFERENCES FROM NYSE CORPORATE GOVERNANCE RULES

A summary of significant differences between corporate governance practices followed by BCE and corporate governance practices required to be followed by U.S. domestic companies under the New York Stock Exchange’s Listing Standards (disclosure required by section 303A.11 of the NYSE Listed Company Manual) is available in the governance section of BCE’s website at BCE.ca.

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SIGNATURES

Pursuant to the requirements of the Exchange Act, the registrant certifies that it meets all of the requirements for filing on Form 40-F and has duly caused this annual report to be signed on its behalf by the undersigned, thereto duly authorized.

BCE Inc.
By:	(signed) Glen LeBlanc
	Glen LeBlanc Executive Vice-President and Chief Financial Officer
Date:	March 14, 2018

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	LIST OF EXHIBITS
	TO FORM 40-F
Annual Information Form of BCE Inc. for the year ended December 31, 2017	Exhibit 99.1
Annual audited consolidated financial statements of BCE Inc. for the year ended December 31, 2017 and the related management's discussion and analysis of financial condition and results of operations	Exhibit 99.2
Management report on internal control over financial reporting and the Report of Independent Registered Public Accounting Firm thereon	Exhibit 99.3
Code of Business Conduct	Exhibit 99.4
Consent of Independent Registered Public Accounting Firm	Exhibit 99.5
Bell Canada Unaudited Selected Summary Financial Information	Exhibit 99.6
Exhibit to 2017 Annual Financial Statements – Earnings Coverage	Exhibit 99.7
Certifications of the Chief Executive Officer and the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Exhibit 99.31
Certification of the Chief Executive Officer and the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Exhibit 99.32
XBRL Instance Document	Exhibit 101

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EX-99.1

Exhibit 99.1

In this Annual Information Form, we, us, our and BCE mean, as the context may require, either BCE Inc. or, collectively, BCE Inc., Bell Canada, their subsidiaries, joint arrangements and associates. Bell means, as the context may require, either Bell Canada or, collectively, Bell Canada, its subsidiaries, joint arrangements and associates. MTS means, as the context may require, until March 17, 2017, either Manitoba Telecom Services Inc. or, collectively, Manitoba Telecom Services Inc. and its subsidiaries; and Bell MTS means, from March 17, 2017, the combined operations of MTS and Bell Canada in Manitoba. Bell Aliant means, until December 31, 2014, collectively, Bell Aliant Inc., its subsidiaries and associates.

Each section of BCE’s 2015, 2016 and 2017 management’s discussion and analysis of financial condition and results of operations (BCE 2015 MD&A, BCE 2016 MD&A and BCE 2017 MD&A, respectively) and each section of BCE’s 2017 consolidated financial statements that is referred to in this Annual Information Form is incorporated by reference herein. The BCE 2015 MD&A, BCE 2016 MD&A, BCE 2017 MD&A and BCE 2017 consolidated financial statements have been filed with the Canadian provincial securities regulatory authorities (available at sedar.com) and with the United States (U.S.) Securities and Exchange Commission (available at sec.gov). They are also available on BCE’s website at BCE.ca.

All dollar figures are in Canadian dollars, unless stated otherwise. The information in this Annual Information Form is as of March 8, 2018, unless stated otherwise, and except for information in documents incorporated by reference that have a different date.

Trade-marks: The following are trade-marks referred to and used as such in this Annual Information Form that BCE Inc., its subsidiaries, joint arrangements, associates or other entities in which we hold an equity interest, own or use under licence. BCE is a trade-mark of BCE Inc.; Aliant, Alt TV, Bell, Bell Canada, Bell Centre, Bell Media, Bell Mobility, Bell MTS, Bell Total Connect, Bell TV, Fibe, Let’s Talk, MTS, Q9, Q9 Networks and TV Everywhere are trade-marks of Bell Canada; Astral, Astral Media, BNN, CraveTV, CTV, CTV GO, CTV Two, Space, The Movie Network, TMN, TMN Encore and TMN GO are trade-marks of Bell Media Inc.; Lucky Mobile is a trade-mark of Bell Mobility Inc.; AlarmForce is a trade-mark of AlarmForce Industries Inc.; Discovery and Discovery GO are trade-marks of Discovery Communications, LLC; Expertech is a trade-mark of Expertech Network Installation Inc.; ExpressVu is a trade-mark of Bell ExpressVu Limited Partnership; Glentel, WIRELESSWAVE, Tbooth Wireless and WIRELESS etc. are trade-marks of Glentel Inc.; HBO Canada is a trade-mark of Home Box Office Inc.; Historia is a trademark of 8504644 Canada Inc.; iHeartRadio is a trade-mark of iHM Identity Inc.; MLSE is a trade-mark of Maple Leaf Sports & Entertainment Ltd.; Montreal Canadiens is a trade-mark of Le Club de Hockey Canadien Inc.; Northwestel is a trade-mark of Northwestel Inc.; Séries+ is a trademark of 8504652 Canada Inc.; The Source is a trade-mark of The Source (Bell) Electronics Inc.; TSN, TSN GO, RDS and RDS GO are trade-marks of The Sports Network Inc.; Virgin Mobile Canada is a trade-mark 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 Information Form are the property of their respective owners.

© BCE Inc., 2018. All rights reserved.

Table of contents

			ANNUAL INFORMATION FORM	PARTS OF MD&A AND FINANCIAL STATEMENTS INCORPORATED BY REFERENCE (REFERENCES ARE TO PAGES OF THE BCE 2017 ANNUAL REPORT, EXCEPT WHERE OTHERWISE INDICATED)
1	Caution regarding forward-looking statements		2	44-45; 61-62; 69-70; 76-77; 97-102
2	Corporate structure		4
	2.1	Incorporation and registered office	4
	2.2	Subsidiaries	4
3	Description of our business		5
	3.1	General summary	5	31-34; 49; 58; 65; 61-62; 69; 70; 76; 79
	3.2	Strategic imperatives	5	40-43
	3.3	Competitive strengths	6
	3.4	Marketing and distribution channels	8
	3.5	Networks	9
	3.6	Employees	11
	3.7	Corporate responsibility	12
	3.8	Competitive environment	14	45-46; 60-62; 68-69; 71; 74-77
	3.9	Regulatory environment	14	91-96
	3.10	Intangible properties	15
4	General development of our business – three-year history		16
	4.1	Transactions	16
	4.2	Corporate initiatives	17	42-43; 41-42(1); 44-45(2);
	4.3	Regulatory environment	18	91-96; 90-94(1); 93-97(2)
5	Our capital structure		19
	5.1	BCE securities	19	155-156
	5.2	Bell Canada debt securities	20	145-146
	5.3	Credit Ratings	21
	5.4	Trading of our securities	24
6	Dividends and dividend payout policy		26	35-37
7	Our directors and executive officers		27
	7.1	Directors	27
	7.2	Executive officers	28
	7.3	Directors’ and executive officers’ share ownership	28
8	Legal proceedings		29
9	Interest of management and others in material transactions		32
10	Interest of experts		32
11	Transfer agent and registrar		32
12	For more information		32
13	Schedule 1 – Audit Committee information		33
14	Schedule 2 – Audit Committee charter		36

(1)	References to parts of the BCE 2016 MD&A contained in BCE’s annual report for the year ended December 31, 2016 (BCE 2016 Annual Report).
(2)	References to parts of the BCE 2015 MD&A contained in BCE’s annual report for the year ended December 31, 2015 (BCE 2015 Annual Report).

		BCE Inc.     2017 ANNUAL INFORMATION FORM     1
1	Caution regarding forward-looking statements

1 Caution regarding forward-looking statements

Certain statements made in this Annual Information Form are forward-looking statements. These statements include, without limitation, statements relating to our network deployment and capital investment plans, BCE’s dividend growth objective, 2018 annualized common share dividend and common share dividend payout policy, the expected timing and completion of the proposed acquisition of French-language specialty channels Séries+ and Historia, our business outlook, objectives, plans and strategic priorities, and 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 identified 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 U.S. Private Securities Litigation Reform Act of 1995.

Unless otherwise indicated by us, forward-looking statements in this Annual Information Form describe our expectations as at March 8, 2018 and, accordingly, are subject to change after that 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 specific, 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 this Annual Information Form 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.

Forward-looking statements made in this Annual Information Form are based on a number of assumptions that we believed were reasonable, as at March 8, 2018. Refer in particular to the sections of the BCE 2017 MD&A entitled Business outlook and assumptions on pages 44, 45, 61, 62, 69, 70, 76 and 77 of BCE’s annual report for the year ended December 31, 2017 (BCE 2017 Annual Report) for a discussion of certain key economic, market and operational assumptions we have made in preparing forward-looking statements. If our assumptions turn out to be inaccurate, our actual results could be materially different from what we expect.

Important risk factors that could cause actual results or events to differ materially from those expressed in, or implied by, the previously mentioned forward-looking statements and other forward-looking statements contained in this Annual Information Form include, but are not limited to:

• the intensity of competitive activity, including from new and emerging competitors, and the resulting impact on the cost of retaining existing customers and attracting new ones, as well as on our market shares, service volumes and pricing strategies
• the level of technological substitution and the presence of alternative service providers contributing to reduced utilization of our traditional wireline services
• regulatory initiatives, proceedings and decisions, government consultations and government positions that affect us and influence our business, including, in particular, those relating to mandatory access to networks, spectrum auctions, approval of acquisitions, broadcast licensing and foreign ownership requirements
• the inability to protect our physical and non-physical assets, including networks, IT systems, offices, corporate stores and sensitive information, from events and attacks such as cyber threats, damage from fire and natural disasters
• the adverse effect of the fundamental separation of content and connectivity, which is changing our television (TV) and media ecosystems and may accelerate the disconnection of TV services and the reduction of TV spending, as well as the fragmentation of, and changes in, the advertising market
• competition with global competitors, in addition to traditional Canadian competitors, for programming content, which could drive significant increases in content acquisition costs and challenge our ability to secure key content

2     BCE Inc.     2017 ANNUAL INFORMATION FORM
	1	Caution regarding forward-looking statements

• adverse economic and financial market conditions, a declining level of retail and commercial activity, and the resulting negative impact on the demand for, and prices of, our products and services and the level of bad debts
• the failure to optimize network and IT deployment or upgrade timelines, accurately assess the potential of new technologies, or invest and evolve in the appropriate direction
• the failure to continue to invest in a disciplined and strategic manner in next-generation capabilities, including real-time information-based customer service strategies
• the inability to drive a positive customer experience resulting, in particular, from the failure to embrace new approaches and challenge operational limitations
• the complexity in our operations resulting from multiple technology platforms, billing systems, marketing databases and a myriad of rate plans, promotions and product offerings
• the failure to maintain optimal network operating performance in the context of significant increases in capacity demands on our Internet and wireless networks
• the failure to implement or maintain highly effective IT systems supported by an effective governance and operating framework
• the risk that we may need to incur significant capital expenditures beyond our capital intensity target in order to provide additional capacity and reduce network congestion
• the failure to generate anticipated benefits from our corporate restructurings, system replacements and upgrades, process redesigns and the integration of business acquisitions
• events affecting the functionality of, and our ability to protect, test, maintain and replace, our networks, IT systems, equipment and other facilities
• in-orbit and other operational risks to which the satellites used to provide our satellite TV services are subject
• the failure to attract and retain employees with the appropriate skill sets and to drive their performance in a safe and secure environment
• labour disruptions
• the inability to access adequate sources of capital and generate sufficient cash flows from operations to meet our cash requirements, fund capital expenditures or provide for planned growth
• uncertainty as to whether dividends will be declared by BCE’s board of directors or whether BCE’s dividend payout policy will be maintained
• the inability to manage various credit, liquidity and market risks
• pension obligation volatility and increased contributions to post-employment benefit plans
• higher taxes due to new tax laws or changes thereto or in the interpretation thereof, and the inability to predict the outcome of government audits
• the failure to reduce costs as well as unexpected increases in costs
• the failure to evolve practices to effectively monitor and control fraudulent activities, including unauthorized use of our content and the theft of our TV services
• events affecting the continuity of supply of products and services that we need to operate our business and to comply with various obligations from our third-party suppliers, outsourcers and consultants
• the failure of our procurement and vendor management practices to address risk exposures associated with existing and new supplier models
• the quality of our products and services and the extent to which they may be subject to manufacturing defects or fail to comply with applicable government regulations and standards
• security and data leakage exposure if security control protocols applicable to our cloud-based solutions are bypassed
• unfavourable resolution of legal proceedings and, in particular, class actions
• unfavourable changes in applicable laws and the failure to proactively address our legal and regulatory obligations
• health concerns about radiofrequency emissions from wireless communications devices
• the inability to maintain customer service and keep our key networks operational in the event of epidemics, pandemics and other health risks
• the failure to recognize and adequately respond to climate change concerns or public and governmental expectations on environmental matters
• the expected timing and completion of the proposed acquisition of French-language specialty channels Séries+ and Historia, which is subject to approval by the Canadian Radio-television and Telecommunications Commission (CRTC) and the Competition Bureau

These and other risk factors that could cause actual results or events to differ materially from our expectations expressed in, or implied by, our forward-looking statements are discussed in this Annual Information Form and the BCE 2017 MD&A and, in particular, in section 9, Business risks of the BCE 2017 MD&A, on pages 97 to 102 of the BCE 2017 Annual Report.

We caution readers that the risks previously described 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 financial position, financial performance, cash flows, business or reputation.

Except as otherwise indicated by us, forward-looking statements do not reflect 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 8, 2018. The financial impact of these transactions and special items can be complex and depends on 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.

		BCE Inc.     2017 ANNUAL INFORMATION FORM     3
2	Corporate structure

2 Corporate structure

2.1 Incorporation and registered office

BCE Inc. was incorporated in 1970 and was continued under the Canada Business Corporations Act in 1979. It is governed by a certificate and articles of amalgamation dated August 1, 2004, as amended by (a) a certificate and articles of arrangement dated July 10, 2006 to implement a plan of arrangement providing for the distribution by BCE Inc. to its shareholders of units in the Bell Aliant Regional Communications Income Fund and to consolidate outstanding BCE Inc. common shares, (b) a certificate and articles of amendment dated January 25, 2007 to implement a plan of arrangement providing for the exchange of Bell Canada preferred shares for BCE Inc. preferred shares, (c) a certificate and articles of amendment dated June 29, 2011 to create two additional series of BCE Inc. Cumulative Redeemable First Preferred Shares (first preferred shares), and (d) certificates and articles of amendment dated September 22, 2014 and November 11, 2014 to create six additional series of BCE Inc. first preferred shares. BCE Inc.’s head and registered offices are located at 1, Carrefour Alexander-Graham-Bell, Building A, 8th Floor, Verdun, Québec H3E 3B3.

2.2 Subsidiaries

The table below shows BCE Inc.’s main subsidiaries at December 31, 2017, which are all incorporated in Canada, and the percentage of voting securities that BCE Inc. beneficially owns, or directly or indirectly exercises control or direction over. BCE Inc. has other subsidiaries that have not been included in the table as each represents 10% or less of our total consolidated assets and 10% or less of our total consolidated operating revenues. These other subsidiaries together represented 20% or less of our total consolidated assets and 20% or less of our total consolidated operating revenues at December 31, 2017.

SUBSIDIARY	PERCENTAGE OF VOTING SECURITIES THAT BCE INC. BENEFICIALLY HELD AT DECEMBER 31, 2017(1)
Bell Canada	100%
Bell Mobility Inc.	100%
Bell Media Inc.	100%

(1) BCE Inc. beneficially owns all the voting securities of: (i) Bell Mobility Inc. (Bell Mobility) through Bell Canada, which in turn beneficially owns all the voting securities of Bell Mobility through its wholly-owned subsidiary, Bell Mobility Holdings Inc.; and (ii) Bell Media Inc. (Bell Media) through Bell Canada.

4     BCE Inc.     2017 ANNUAL INFORMATION FORM
	3	Description of our business

3 Description of our business

3.1 General summary

BCE is Canada’s largest communications company, providing residential, business and wholesale customers with a wide range of solutions for all their communications needs. Our results are reported in three segments: Bell Wireless, Bell Wireline and Bell Media.

Bell Wireless provides wireless voice and data communications products and services to our residential, small and medium-sized business and large enterprise customers across Canada.

Bell Wireline provides data, including Internet access and Internet protocol television (IPTV), local telephone, long distance, as well as other communications services and products to our residential, small and medium-sized business and large enterprise customers, primarily in Ontario, Québec, the Atlantic provinces and Manitoba, while satellite TV service and connectivity to business customers are available nationally across Canada. 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.

Bell Media provides conventional, specialty and pay TV, digital media, radio broadcasting services and out-of-home (OOH) advertising services to customers nationally across Canada.

Additional information regarding our business operations and the products and services we provide can be found in section 1.2, About BCE of the BCE 2017 MD&A, on pages 31 to 34 of the BCE 2017 Annual Report.

In addition to our operating segments, we also hold investments in a number of other assets, including:

• a 28% indirect equity interest in Maple Leaf Sports & Entertainment Ltd. (MLSE), a sports and entertainment company that owns several sports teams as well as real estate and entertainment assets in Toronto
• a 50% indirect equity interest in Glentel Inc. (Glentel), a Canadian-based dual-carrier, multi-brand mobile products distributor
• an 18.4% indirect equity interest in entities that operate the Montreal Canadiens Hockey Club and the Bell Centre in Montréal

A discussion of the key acquisitions, investments and dispositions completed by BCE in the last three financial years can be found in section 4.1, Transactions of this Annual Information Form.

For the year ended December 31, 2017, we generated consolidated operating revenues of $22,719 million and consolidated net earnings of $2,970 million. Bell Wireless’ operating revenues totalled $7,883 million ($7,838 million external revenues), Bell Wireline’s operating revenues totalled $12,415 million ($12,205 million external revenues) and Bell Media’s operating revenues totalled $3,104 million ($2,676 million external revenues). For the year ended December 31, 2016, Bell Wireless’ operating revenues totalled $7,159 million ($7,117 million external revenues), Bell Wireline’s operating revenues totalled $12,104 million ($11,917 million external revenues) and Bell Media’s operating revenues totalled $3,081 million ($2,685 million external revenues). A table showing the operating revenues that each segment contributed to total operating revenues for the years ended December 31, 2017 and 2016 can be found in section 4.3, Operating revenues of the BCE 2017 MD&A, on page 49 of the BCE 2017 Annual Report. A table showing the operating revenues of our Bell Wireless and Bell Wireline segments by category of product and service can be found in section 5.1, Bell Wireless and section 5.2, Bell Wireline, of the BCE 2017 MD&A, on pages 58 and 65, respectively, of the BCE 2017 Annual Report.

Some of our segments’ revenues vary slightly by season. For more information, refer to section 7.2, Quarterly financial information – Seasonality considerations of the BCE 2017 MD&A, on page 90 of the BCE 2017 Annual Report.

Finally, additional information regarding the business outlook of our Bell Wireless, Bell Wireline and Bell Media segments can be found in the sections entitled Business outlook and assumptions of the BCE 2017 MD&A, on pages 61, 62, 69, 70, 76 and 77 of the BCE 2017 Annual Report.

3.2 Strategic imperatives

Our goal is to be recognized by customers as Canada’s leading communications company. Our primary business objectives are to grow our subscriber base profitably and to maximize revenues, operating profit, free cash flow and return on invested capital by further enhancing our position as the foremost provider in Canada of comprehensive communications services to residential, business and wholesale customers, and as Canada’s premier content creation company. 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 BCE’s business plan are:

1. Invest in broadband networks and services
2. Accelerate wireless
3. Leverage wireline momentum
4. Expand media leadership
5. Improve customer service
6. Achieve a competitive cost structure

Additional information regarding our strategic imperatives can be found in section 2, Strategic imperatives of the BCE 2017 MD&A, on pages 40 to 43 of the BCE 2017 Annual Report.

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3.3 Competitive strengths

CANADA’S LARGEST COMMUNICATIONS COMPANY

We are Canada’s largest communications company, offering a broad scope of telecommunications products and services to approximately 22 million subscribers, as indicated below:

• We are the largest local exchange carrier in Canada. BCE operates an extensive local access network in the provinces of Ontario, Québec, the Atlantic provinces and Manitoba, as well as in Canada’s Northern Territories. We provide a complete suite of wireline voice, wireless communications, Internet access, data and TV product and service offerings to residential, business and wholesale customers
• We also offer competitive local exchange carrier (CLEC) services in Alberta and British Columbia
• BCE operated approximately 6.3 million network access service (NAS) lines at December 31, 2017
• At December 31, 2017, BCE was one of the largest wireless operators in Canada based on number of subscribers, providing approximately 9.2 million subscribers with nationwide mobile voice and data services
• BCE is the largest TV provider in Canada, nationally broadcasting a wide range of domestic and international programming to more than 2.8 million subscribers at December 31, 2017 through its IPTV services, Fibe TV and Alt TV, and its direct-to-home (DTH) satellite TV service
• BCE is the largest Internet service provider in Canada, providing approximately 3.8 million customers at December 31, 2017 with high-speed Internet access through fibre-optic or digital subscriber line (DSL) technology

Our scale, due to a large customer base, our wireline and wireless network reach, and our ability to sell through a variety of distribution channels, as discussed in more detail in section 3.4, Marketing and distribution channels in this Annual Information Form, give us a key competitive advantage. With a wireless network service footprint that encompasses approximately 99% of Canada’s population, and a wireline incumbent local exchange carrier footprint that extends to approximately three-quarters of Canadian households, BCE is well positioned to take advantage of integrated wireless and wireline solutions in the future.

Our approximately 1,400 Bell-branded stores and The Source (Bell) Electronics Inc. (The Source) locations across Canada provide a significant number of retail outlets where customers can buy Bell products and services, including in Canada’s highest-traffic mall locations. In addition, our products and services offered under the Virgin Mobile Canada (Virgin Mobile) and Lucky Mobile brands enhance our competitive market position by allowing us to compete more effectively with the Canadian industry’s other discount brands as well as with the newer wireless entrants. Our products and services are also offered at the wireless retail locations of Glentel, in which we hold a 50% ownership interest.

TECHNOLOGICALLY ADVANCED WIRELESS NETWORKS AND SERVICES

Our Bell Wireless segment provides wireless services over technologically advanced wireless networks that are available to virtually all of the Canadian population. We offer a broad range of wireless voice and data communications products and services to residential and business customers through our Bell, Virgin Mobile and, more recently, Lucky Mobile brands.

On December 1, 2017, Bell announced the launch of Lucky Mobile, an easy and low-cost prepaid wireless service for budget-conscious Canadians, with monthly plans starting at just $20 for unlimited local calling. Initially available to consumers in Ontario, Alberta and British Columbia, Lucky Mobile offers service in 17 zones covering most major cities across the country, including data access at 3G-equivalent access speeds.

Wireless is a key growth segment for us and, as such, we have established strategic priorities seeking to further enhance our offerings. We are focused on maintaining our market share momentum of incumbent wireless postpaid customer activations, growing our subscriber base and generating higher average revenue per user, improving sales execution and customer retention, and increasing data service offerings. We also believe our priorities for improved customer experience at all touch points, enhanced network quality and performance driven by effective spectrum deployment and carrier aggregation that support bandwidth and speeds, and a broad device offering should continue to improve our ability to attract and retain wireless customers. With our national high-speed packet access plus (HSPA+) network, our fourth-generation (4G) long-term evolution (LTE) wireless service available in most urban centres across Canada (our 4G LTE wireless network reached approximately 99% of the Canadian population as at December 31, 2017), and our Dual-band and Tri-band LTE Advanced (LTE-A) network service (our Dual-band LTE-A network service reached approximately 87% of the Canadian population at December 31, 2017), we are able to offer one of the broadest ranges of choice in wireless smartphones in Canada, along with extensive North American and international coverage.

In July 2016, we successfully demonstrated fifth-generation (5G) mobile technology in collaboration with Nokia Corporation. Conducted at Bell’s Wireless Innovation Centre in Mississauga, Ontario, the trial leveraged spectrum in the 73 Gigahertz (GHz) range to achieve sustained data speeds more than six times faster than top 4G mobile speeds now available in Canada. Expected to be made commercially available by certain wireless operators as early as 2020, 5G will provide significantly faster data speeds than current 4G networks and more capacity to meet the demands of mobile customers for broadcast video and Internet of Things (IoT) applications, including Connected Car and city-wide IoT solutions.

Bell has taken a leadership position in the fast-growing IoT sector, which enables the interconnection of a range of devices and applications that send and receive data. For example, in June 2017, Bell concluded an agreement with Hyundai AutoEver Telematics America, a subsidiary of Hyundai Motor Group, to deliver a range of connected telematics services including security, safety, diagnostics and infotainment to select Hyundai and Kia vehicles over Bell’s national mobile network. In August 2017, Bell became the first Canadian carrier to offer global connectivity for our leading-edge IoT platforms and

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applications. Bell’s new Global IoT connectivity solutions offer our customers uninterrupted worldwide network access and the ability to manage all of their international devices remotely from a single web platform.

NEXT-GENERATION TV AND HIGH-SPEED INTERNET SERVICES

Our strategic imperative to invest in broadband networks and services is focused on the deployment of high-speed fibre access through our fibre-to-the-node (FTTN) and fibre-to-the-premise (FTTP) initiatives. Our FTTP initiative encompasses both the deployment of fibre-to-the-home (FTTH) and fibre-to-the-building (FTTB). At December 31, 2017, our expanding FTTN and FTTP broadband fibre network covered approximately 9.2 million premises (homes and business locations) in Ontario, Québec, the Atlantic provinces and Manitoba. As discussed in more detail below, our broadband fibre network enables the delivery of Bell’s next-generation IPTV services, Fibe TV and Alt TV. It also enables the delivery of Bell’s next-generation fibre-optic high-speed Internet service, marketed as Fibe Internet and Virgin Internet, offering speeds of up to 100 megabits per second (Mbps) with FTTN or 1 Gigabit per second (Gbps) with FTTP, through our Gigabit Fibe service. Refer to section 3.5, Networks – Wireline – High-speed fibre deployment in this Annual Information Form for more details concerning the deployment of our fibre-optic high-speed Internet services.

Bell’s next-generation IPTV service targets areas in Ontario, Québec, the Atlantic provinces and Manitoba, where cable providers have long been dominant, providing us with the opportunity to gain significant market share through offering a comprehensive multi-product bundle of communications services to customers. Delivered over our advanced high-speed fibre-optic network, our IPTV service expands TV choice and competition in several markets and offers a viewing experience superior to that of cable.

Bell’s Fibe TV service, built on a next-generation IPTV platform, offers a wide range of flexible programming options and innovative features such as: the Fibe TV wireless receiver, which enables customers to enjoy the Fibe experience on up to five additional TVs anywhere in the house without the hassle of running cable through the house; the Restart and Look Back features, enabling customers to rewind and watch TV shows already in progress from the beginning and up to 30 hours after they started; and the Trending feature, which lists the five most-watched shows in both English and French among Fibe TV customers at any given time and allows the customer to switch to watch live or Restart from the beginning. We also offer the Bell Fibe TV app, which brings the rich Fibe TV viewing experience to tablets, smartphones and computers using a web browser with access to more than 500 live and on-demand channels at home or on the go, which allows customers to seamlessly transfer a channel being viewed from a mobile device to TV, or resume what is being watched on TV on a mobile device, and allows customers to control their TVs with their mobile devices. Fibe TV further allows access to Netflix directly from customer TV receivers, providing a seamless experience. Available in Ontario and Québec, our Fibe TV service became the first Canadian TV service offered on Apple TV.

In 2017, various additional Bell TV improvements and features were introduced. Fibe TV customers in Ontario and Québec can watch their personal video recorder (PVR) recordings on the go on their tablets, smartphones and laptops with the Fibe TV app. We also launched the Fibe Alt TV app, a completely new way to watch live and on-demand TV. With no traditional TV set-top box required, Alt TV is accessed through the Fibe TV app and offers up to 500 live and on-demand channels on laptops, smartphones, tablets and Apple TV (4th generation). Alt TV offers access to two TV streams at a time and customers can add individual channels to build their own Alt TV packages. Like Bell’s Fibe TV service, Alt TV operates as a licensed broadcast service on the privately managed Bell Fibe broadband network for in-home viewing, and on mobile or wireless fidelity (Wi-Fi) networks outside the home.

Bell’s Fibe TV has become a popular TV option increasing our IPTV subscriber base by 15.9% in 2017 to 1,550,317 customers at December 31, 2017.

INCUMBENT WIRELINE SERVICE PROVIDER WITH MARKET LEADERSHIP POSITION

Our leadership position in broadband Internet and TV and our broad suite of product offerings serve as a foundation for the other products and services we offer. This provides us with a significant number of established customer connections to drive uptake of new products and services, either through bundled offerings or on a standalone basis, and allows us to improve customer retention. Bell’s Fibe TV is driving strong multi-product bundle sales as we continue to expand our market share in communities across Ontario, Québec, the Atlantic provinces and Manitoba.

Our business markets team maintains a leadership position, having established relationships with a majority of Canada’s largest 100 corporations. Our team continues to deliver network-centric business service solutions to large business and public sector clients, including data hosting and cloud computing services, which are key to business communications today and increase the value of connectivity services.

OUR SIGNIFICANT MEDIA ASSETS

Bell Media’s range of video content enhances the execution of our strategic imperatives by leveraging our significant broadband network investments, accelerating Bell’s video growth across all screens and platforms and achieving a competitive cost structure. Ownership of Bell Media enables us to maximize strategic and operating synergies, including the efficiency of our content and advertising spend.

Bell Media’s assets in TV, radio, digital media and OOH advertising are a key competitive advantage, as indicated below:

• We own and operate 30 conventional TV stations, including CTV, Canada’s highest-rated TV network based on viewership
• We own and operate 30 specialty and pay TV channels, including TSN, Space, Discovery and RDS, Canada’s leading French-language specialty channel among viewers aged 25 to 54
• In 2017, our 105 licensed radio stations in 54 markets across Canada reached on average 17.4 million listeners per week from coast to coast
• We own and operate the most successful Canadian-owned online media business in the Canadian digital landscape

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• We own Astral, an OOH advertising business with a network of more than 31,000 advertising faces strategically located in the key markets of British Columbia, Alberta, Manitoba, Ontario, Québec and Nova Scotia. It offers a portfolio of five innovative product lines: outdoor advertising, street furniture, airport, transit and digital
• We own CraveTV, a subscription on-demand TV streaming service, providing premium content and a robust lineup of TV programming. Formerly available only to subscribers of a number of Canadian TV providers, CraveTV became available in January 2016 direct to consumers as a standalone product to all Canadians with an Internet subscription. CraveTV is also available for in-app purchase on Apple TV, enabling customers to subscribe directly from their iTunes account, as well as through Samsung Smart TVs, Chromecast and Xbox One
• On March 1, 2016, Bell Media became the sole operator of HBO Canada, and The Movie Network (TMN) was successfully launched nationally
• We provide live and on-demand access to content from our conventional TV networks, CTV and CTV Two, BNN, TSN, RDS, Comedy and other TV brands in news, sports and entertainment. Bell Media’s TV Everywhere services, including CTV GO, Discovery GO, TMN GO, TSN GO and RDS GO provide live and on-demand content delivered to smartphones, tablets and computers

In addition to our industry-leading position, our competitive strengths include our broad reach across Canada, our ability to acquire top programming for conventional, specialty and pay TV, our constant drive to provide the most engaging and interactive experience for viewers, and our ability to serve the needs of advertisers across multiple platforms.

Refer to section 5.3, Bell Media – Key elements of relevant strategic imperatives, of the BCE 2017 MD&A, on page 72 of the BCE 2017 Annual Report, for a description of certain agreements entered into and initiatives launched in 2017 by Bell Media.

3.4 Marketing and distribution channels

BELL WIRELESS AND BELL WIRELINE

The guiding principle driving our marketing strategy is to offer our clients the ultimate in reliable, simple and accessible telecommunications services. In doing so, our objective is to increase customer acquisition, retention and loyalty through multiple service offerings.

Through the bundling of services, which combines wireline local voice and long distance, high-speed Internet and TV, as well as wireless services, our goal is to use a multi-product offering to achieve competitive differentiation by offering a premium, integrated set of services that provides customers more freedom, flexibility and choice. We also make use of limited-time promotional offers featuring discounted rate plans, special rates on wireless handsets and TV receivers, as well as other incentives, to stimulate new customer acquisition and retain existing customers or to respond to competitive pressures in our markets.

We focus our marketing efforts on a coordinated program of TV, print, radio, Internet, outdoor signage, direct mail and point-of-sale media promotions. We engage in mass-market advertising in order to maintain our brand and support direct and indirect distribution channels. Coordinated marketing efforts throughout our service area ensure that our marketing message is presented consistently across all our markets. Promoting the Bell brands is complemented by our other brand marketing efforts, reinforcing awareness of all our services and capitalizing on the size and breadth of our customer base across all product lines.

The Bell brands play a key role in product positioning. Our branding is straightforward and directly supports our strategy of delivering a better customer experience at every level.

Specifically for Bell Wireless, acquiring and retaining postpaid subscribers is a key marketing objective that we seek to achieve through our networks and suite of leading-edge devices and services to drive higher usage and increased adoption of data services. We offer discounts on the price of wireless handsets in exchange for a contractual commitment from a subscriber, a practice also used by other Canadian wireless operators. Research has shown that a key driver of customer acquisition is handset selection and style. This factor is increasingly important as handset life cycles shorten. Our current wireless device portfolio includes many leading-edge devices, some launched as exclusive to Bell in the Canadian market. As the Canadian wireless market further matures and competition intensifies, including as a result of Innovation, Science and Economic Development Canada (ISED) spectrum auctions since 2008, customer retention is becoming increasingly important. Accordingly, we employ customer retention initiatives aimed at increasing our customers’ level of satisfaction and loyalty.

We deliver our products and services to residential customers through:

• a network of corporate and dealer-owned Bell, Bell Mobility and Virgin Mobile retail locations
• The Source’s approximately 530 retail locations
• national retailers such as Best Buy, Walmart, Loblaws and Glentel’s WIRELESSWAVE, Tbooth wireless and WIRELESS etc., as well as a network of regional and independent retailers in all regions
• call centre representatives
• our websites, including Bell.ca, virginmobile.ca and Luckymobile.ca
• door-to-door sales representatives

We also offer customers the convenience of One Bill for Home Phone, Internet, TV and wireless services.

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For small business customers, our residential and small business team offers a wide range of services, including Business Fibe Internet, Bell Total Connect, Business Phone and TV, along with many other communications solutions, all designed for companies that typically have fewer than 20 employees. Small business solutions are sold through dedicated call centre representatives and our bell.ca website, as well as our retail network and door-to-door sales representatives.

Communications solutions, other than wireless, for mid-sized and large business customers are delivered by our business markets team. Our products and services are sold through dedicated sales representatives, call centres, certified resellers and competitive bids.

By combining products and services, including professional services, into fully managed, end-to-end information and technology solutions, we have been successful in procuring both mid-sized and large enterprise customers with complex communications requirements. We continue to differentiate ourselves in the marketplace by enhancing our customer service levels and offering solutions designed to provide superior service, performance, availability and security. We deliver expertise in key solution areas, including Internet, private networks and broadcasts, voice and unified communications, data centres, customer contact and security solutions.

Our wireless products and services are delivered to business customers, including small business customers, by Bell Mobility through the same channels as those previously described for services to residential customers. In addition, Bell’s business customers are served by our nationwide sales team responsible for the sale of wireless products and services to business customers, as well as the execution of sales contracts.

Our wholesale business’ communications products and services are delivered by our wholesale team. They are sold through our dedicated sales representatives, web portals and call centres.

BELL MEDIA

Bell Media’s TV and OOH customer base is comprised primarily of large advertising agencies, which place advertisements with Bell Media on behalf of their customers. Bell Media also has contracts with a variety of broadcasting distribution undertakings (BDUs), under which monthly subscription fees for specialty and pay TV services are earned. Bell Media’s radio broadcast customer base is comprised of both advertising agencies and businesses in local markets.

Bell Media’s conventional TV networks are delivered to Canadians through over-the-air broadcast transmission and through distribution by BDUs. Bell Media’s specialty and pay TV channels are delivered through distribution arrangements with BDUs, and its radio programming is distributed through over-the-air transmission. In addition to these primary distribution channels, Bell Media distributes certain of its TV and radio programming through a variety of non-traditional means, such as mobile, Internet streaming and in-flight programming. CraveTV is available directly to all Canadians with access to the Internet, including via in-app purchase on AppleTV, as well as to customers of numerous Canadian BDUs. CraveTV streams on IPTV-enabled set-top boxes, mobile apps, the web, Chromecast, select Samsung Smart TVs and Apple TV. Finally, Bell Media’s OOH business delivers its services through an inventory of OOH faces and street furniture equipment in the key markets of British Columbia, Alberta, Manitoba, Ontario, Québec and Nova Scotia.

3.5 Networks

The telecommunications industry is evolving rapidly as it continues to move from multiple service-specific networks to Internet protocol (IP)-based integrated communications networks that can carry voice, data and video traffic. We continue to work with key vendor partners to expand our national multi-service IP-enabled networks.

Our communications networks provide wireless and wireline voice, data and video services to customers across Canada. Our infrastructure includes:

• national transport networks for voice, data and video traffic, including Internet traffic
• urban and rural access networks and infrastructure for delivering services to customers
• national wireless networks that provide voice, data and video services

WIRELESS

To provide wireless connectivity, we have deployed and operate a number of nationwide wireless broadband networks compatible with global standards that deliver high-quality and reliable voice and high-speed data services. With our high-speed data network, we are able to offer Canadian consumers a broad range of choice in wireless smartphones, including devices from Apple, Samsung, HTC, ZTE, Motorola, Google, BlackBerry, Novatel, Sony, Sonim, LG and Alcatel, as well as touch screen tablets and other devices designed for data services such as IoT communications, e-mail, messaging, Internet access and social networking.

HSPA+ NETWORK

Our wireless HSPA+ network offered high-speed mobile access to 99% of the Canadian population at December 31, 2017, and covered thousands of cities and towns in both urban and rural locations. The HSPA+ network supports global roaming, as well as a wide range of smartphones, data cards, universal serial bus (USB) sticks, tablets and other leading-edge mobile devices. Our HSPA+ network also supports international roaming to more than 230 destinations. The vast majority of the site connectivity for the new HSPA+ network was built with high-speed fibre and an all-IP architecture for enhanced reliability.

4G LTE NETWORK

With Bell’s 4G LTE wireless network coverage, customers have data access speeds similar to broadband connections and significantly faster than our HSPA+ network, making it easier for users to download applications, stream high-definition videos and music, play online games or videoconference and chat with virtually no delays or buffering.

Our LTE wireless network reached 99% of the Canadian population coast to coast at December 31, 2017 with downloads speeds ranging from 75 Mbps to 150 Mbps (expected average download speeds of 12 to 40 Mbps). LTE currently accounts for 85% of our total wireless data traffic.

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The HSPA+/LTE networks work together in that all Bell LTE devices support both networks. At first, voice calls initiated when an LTE device was attached to an LTE network were transferred to the HSPA+ network for processing. In April 2016, we introduced Voice over LTE (VoLTE) so that the phone stays on the LTE network for both voice and data calls. By implementing VoLTE, we can reduce the voice call set-up time and operate the network more efficiently.

LTE-A NETWORK SERVICE

With Dual-band LTE-A technology, Bell can deliver speeds of up to 260 Mbps (expected average download speeds of 18 to 74 Mbps).

By assigning three radio channels or carriers to one user, we can deliver, with Tri-band LTE-A technology, mobile data speeds of up to 335 Mbps (expected average download speeds of 25 Mbps to 100 Mbps). We have launched Tri-band LTE-A in certain cities and areas in Ontario, Québec, the Atlantic provinces and Manitoba.

In April 2017, Bell announced that its LTE network was the first in North America capable of delivering Quad Band LTE-A service, offering customers access to the fastest mobile data speeds available. Quad Band technology leverages multiple bands of wireless spectrum to boost top Tri-band LTE-A mobile data speeds from 335 Mbps (expected average download speeds of 25 to 100 Mbps) to 550 Mbps (expected average download speeds of 25 to 150 Mbps).

Bell’s LTE-A network provides service to 87% of the population in Canada. In addition, our Tri-band LTE-A footprint now covers 34% of Canadians. Combined with enhanced 256 QAM (quadrature amplitude modulation) technology, Bell’s Quad Band LTE-A network delivers mobile data speeds of up to 750 Mbps, with expected average download speeds of 25 to 230 Mbps in select areas. Bell’s Quad Band service has now expanded to 23% of Canadians, encompassing 91 cities. As the handset ecosystem matures, Bell’s advanced wireless services (AWS)-3 and 2500 MHz spectrum licences will enable upgrades of carrier aggregation that will support four and five simultaneous carriers.

3G/CDMA NETWORK

In addition to our LTE and HSPA+ networks, we operate a regional 3G code division multiple access (CDMA) network that covered 96% of the Ontario and Québec population, approximately 97% of the Atlantic Canada population and approximately 96% of the Manitoba population at December 31, 2017. The Western CDMA Network, which covered British Columbia, Alberta and Saskatchewan, was decommissioned during the second quarter of 2017.

The CDMA network shares sites, towers and antennae with the HSPA+ and LTE networks. As most of our development and network enhancement focus has been on the HSPA+/LTE networks, traffic is migrating off our CDMA network and onto the independently operating HSPA+/LTE networks. We began decommissioning our CDMA network in 2014 in a way that did not impact existing customers, by turning off coverage that overlapped with that of our network partners. Once the CDMA network is retired, the related spectrum will be repurposed to deliver additional LTE capacity. CDMA accounts for less than 0.01% of our total wireless data traffic and less than 1% of voice traffic. We are currently working with our existing CDMA customers to migrate their service to HSPA+ or LTE. Decommissioning of the remaining CDMA network is expected to be substantially completed in 2019.

WI-FI LOCATIONS

Bell manages 6,500 Wi-Fi access points at enterprise customer locations.

WIRELINE

VOICE AND DATA NETWORK

Our national voice and data network consists of an optical fibre network with the latest technologies to provide redundancy and fault protection. It reaches all major Canadian metropolitan centres, as well as New York, Chicago, Boston, Buffalo, Minneapolis, Ashburn and Seattle in the U.S.

Our network in major Canadian cities provides state-of-the-art high-speed access at gigabit speeds based on IP technology. We operate a national IP multi-protocol label switching network with international gateways to the rest of the world. This network delivers next-generation, business-grade IP virtual private network (IPVPN) services that connect our customers’ offices and data centres throughout Canada and around the world. The IPVPN service is the foundation platform required for the delivery of business service solutions that add value and efficiencies to customers’ businesses. These technology solutions include voice over IP/IP telephony, IP videoconferencing, IP call centre applications and other future IP-based applications. In addition, we maintain extensive copper and voice-switching networks that provide traditional local and interexchange voice and data services to all business and residential customers in Ontario, Québec, the Atlantic provinces and Manitoba.

To improve reliability and increase network capacity to support rapidly growing volumes of wireless and Internet usage carried on our networks, for several years we have been upgrading our fibre-based national backbone network with the deployment of 100 gigabit technologies. As of December 31, 2017, key traffic routes spanning more than 22,000 kilometres across Canada and into the U.S. had been upgraded. To satisfy continued traffic growth, Bell has begun the next phase of the national backbone network upgrade with the deployment of 200 gigabit of Dense Wavelength Division Multiplexing (DWDM) technologies able to support 400 gigabit.

HIGH-SPEED FIBRE DEPLOYMENT

Our strategic imperative to invest in broadband networks and services is focused on the deployment of high-speed fibre access through our FTTN and FTTP initiatives. Over the past few years, we have upgraded our access infrastructure by deploying fibre closer to our customers using FTTN with pair bonding technology, and overlaying FTTN with FTTP. In addition, Bell continues to deploy FTTP to all new urban and suburban housing developments in Ontario, Québec, the Atlantic provinces and Manitoba, in addition to Bell’s ongoing deployment of FTTP to multi-dwelling units and business locations. In our view, FTTP, in which optical fibre cables are used to connect each and every location, is an ideal network architecture to support future bandwidth-demanding IP services and applications.

On March 27, 2017, Bell announced an $854 million investment to bring direct fibre links and the fastest Internet speeds available to 1.1 million residences and business locations throughout Montréal, representing the largest-ever communications infrastructure project in Québec. More than 90% of Bell’s network in the city is on aerial structures already in place, which will help to speed the deployment of FTTP connection. Bell’s broadband FTTP network enables Gigabit Fibe Internet service that is already available in 14% of locations in Montréal. Gigabit Fibe currently delivers download speeds of up to

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1 Gbps and 40 Gbps in the future. Montréal will join a growing number of centres across Québec that are fully wired with Bell fibre, including Québec City, where fibre deployment was launched in 2012.

In 2016, we introduced Home Internet under the Virgin Mobile brand for eligible customers in Ontario. The new high-speed Internet service offers existing Virgin Mobile customers fast download speeds of up to 50 Mbps and upload speeds of up to 10 Mbps together with large monthly data bandwidth limits. Virgin Mobile Home Internet was subsequently made available to Québec customers in 2016.

In June 2015, Bell announced a $1.14 billion investment to roll out fibre to more than 1 million homes and businesses across the city of Toronto to enable its Gigabit Fibe Internet service. At the end of 2017, approximately 60% of the Toronto Fibre build program was completed. In February 2018, we announced the expansion of FTTP direct fibre connections throughout the populous and fast-growing GTA. Bell’s fibre plan will deliver Gigabit Internet speeds and other broadband Fibe service innovations to more than 1.3 million homes and businesses in the region.

The new Bell Gigabit Fibe Internet service was launched in August 2015 to more than 1.3 million homes and businesses across Ontario and Québec. As at December 31, 2017, approximately 3.7 million homes and businesses across Ontario, Québec, Atlantic Canada and Manitoba had the capability of receiving Gigabit Fibe service.

Our residential fibre-optic Internet service, marketed as Fibe Internet, is enabled by our FTTN and FTTP networks. We also offer DSL-based Internet service in areas where Fibe Internet is not available, with download speeds of up to 5 Mbps.

Additionally, since Bell Aliant’s launch of its IPTV service in the Atlantic provinces in 2005, Bell’s launch of its IPTV service in Ontario and Québec in 2010, and the acquisition of MTS’ IPTV subscribers in 2017, we have continued to deploy our next-generation IPTV services in areas in Ontario, Québec, the Atlantic provinces and Manitoba where cable providers had long been dominant. As of December 31, 2017, our IPTV service was available in approximately 7.1 million homes in major cities and municipalities across Ontario, Québec, the Atlantic provinces and Manitoba.

DTH SATELLITE TV SERVICE

We provide DTH satellite TV service nationwide under the Bell TV brand using satellites operated by Telesat Canada (Telesat). Pursuant to a set of commercial arrangements between Bell ExpressVu Limited Partnership (Bell ExpressVu) and Telesat, Bell ExpressVu currently has two satellites under contract with Telesat. Telesat operates or directs the operation of these satellites, which are used by Bell ExpressVu to provide its DTH satellite TV service.

3.6 Employees

The table below shows the number of BCE employees as at December 31, 2017 and 2016.

NUMBER OF EMPLOYEES AT DECEMBER 31	2017	2016
Bell Wireless	6,742	6,162
Bell Wireline	38,452	35,227
Bell Media	6,485	6,701
Total (1)	51,679	48,090

(1) The total number of BCE employees at the end of 2017 was 51,679 up from 48,090 at December 31, 2016, due primarily to the integration of MTS employees.

Approximately 45% of BCE employees are represented by unions and are covered by collective agreements.

The following collective agreements covering 250 or more employees were ratified in 2017 or early 2018:

• the collective agreement between Unifor and Bell Canada covering approximately 3,800 craft and services employees expired on November 30, 2016. A new collective agreement was ratified on February 23, 2017.
• the collective agreement between the International Brotherhood of Electrical Workers (IBEW) and Northwestel Inc. (Northwestel) covering approximately 350 craft and clerical employees expired on December 31, 2016. A new collective agreement was ratified on January 30, 2017.
• the collective agreement between Unifor and Bell Media (CTV Agincourt) covering approximately 550 employees expired on December 31, 2016. A new collective agreement was ratified on June 16, 2017.
• the collective agreement between Unifor Atlantic Communications Locals (ACL) and Bell Canada covering approximately 1,975 clerical and craft employees expired on December 13, 2017. A new collective agreement was ratified on February 28, 2018.
• the collective agreement between Unifor and Bell Canada covering approximately 4,550 clerical employees expired on November 30, 2017. A new collective agreement was ratified on March 7, 2018.

The following collective agreements covering 250 or more employees will expire in 2018:

• the collective agreements between Unifor and Bell Technical Solutions covering approximately 5,400 craft employees will expire on May 6, 2018, and bargaining began on December 6, 2017.
• the collective agreement between Unifor and Bell Media (CTV Toronto Specialties) covering approximately 725 employees will expire on May 31, 2018.
• the collective agreement between Unifor and Bell Canada covering approximately 375 sales employees will expire on December 31, 2018.

The following describes the status of collective agreements covering 250 or more employees that have already expired:

• the collective agreement between Unifor and CFCN-TV (Calgary) and CFRN-TV (Edmonton), divisions of Bell Media, covering approximately 250 employees expired on December 31, 2017.
• the collective agreement between IBEW and Bell MTS covering approximately 575 craft employees expired on January 31, 2018 and bargaining began on December 21, 2017.

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3	Description of our business

3.7 Corporate responsibility

GENERAL

We are committed to the highest standards of corporate responsibility and we seek to integrate environmental, social and economic considerations into our business decisions. We engage with stakeholders to identify opportunities to create benefits for both society and us while minimizing, where we can, any negative impact our activities may generate. In line with this commitment, in 2006 we adopted a resolution to support the United Nations Global Compact, a set of universal principles addressing human rights, labour, environment and anti-corruption. These principles serve as the foundation of our corporate responsibility approach.

An officer-level committee mandated by the BCE board of directors oversees issues related to environmental matters. The responsibilities of this committee have, over time, expanded, and now, BCE’s corporate responsibility strategy, including health and safety, security, environmental and compliance risks and opportunities, is overseen by the Health & Safety, Security, Environment and Compliance Oversight Committee (HSSEC). This cross-functional committee is co-chaired by the Executive Vice-President – Corporate Services and the Chief Legal & Regulatory Officer and Executive Vice-President – Corporate Development and seeks to ensure that relevant risks are adequately recognized and mitigation activities are well integrated and aligned across the organization and supported with sufficient resources.

BCE has implemented a range of social and environmental policies that are supported by various programs and initiatives. These policies address issues of importance to our many stakeholders, including: preventing conflicts of interest; protecting company assets; safeguarding privacy and confidentiality; treating clients, business partners, team members and competitors with respect and honesty; fostering a diverse and safe workplace; and protecting the environment.

The policies include, among others:

• Code of Business Conduct
• Privacy Policy
• Environmental Policy
• Supplier Code of Conduct
• Procurement Policy
• Political Contributions Policy
• Mandatory Reporting of Internet Child Pornography
• Health & Safety Policy Statement

In 2017, BCE was listed on the Best 50 Corporate Citizens in Canada by Corporate Knights and continues to be listed on socially responsible investment indices such as the FTSE4Good Index, the Jantzi Social Index, the United Nations Global Compact 100 (GC 100) and the Euronext Vigeo World 120 index. The latter index includes the 120 most advanced companies in the European, North American and Asia Pacific regions, and distinguishes companies achieving the best environmental, social and governance performances. BCE was also identified as a Prime Responsible Social and Environmental investment by oekom research, was selected for inclusion in the Ethibel EXCELLENCE Investment Register and is a component of the STOXX Global ESG Leaders indices, an innovative series of environmental, social and governance (ESG) equity indices.

We recognize that risks and opportunities exist related to climate change. In 2017, we became a member of the Responsible Business Alliance (RBA) (http://www.responsiblebusiness.org), a non-profit membership organization comprised of electronics, retail, auto and toy companies committed to supporting the rights and wellbeing of workers and communities worldwide affected by the global electronics supply chain. RBA members commit and are held accountable to a common Code of Conduct and utilize a range of RBA training and assessment tools to support continuous improvement in the social, environmental and ethical responsibility of their supply chains. The RBA is comprised of more than 110 companies with combined annual revenue of more than $4.75 trillion, directly employing more than six million people. Part of our commitment to RBA includes promoting information and communications technology as a way to mitigate and adapt to climate change – for example, by enabling travel substitution, virtualization, dematerialization and cloud computing. Monitoring and reducing energy consumption and greenhouse gas emissions are also key priorities at BCE because of their impacts on the environment, society and the economy. We also recognize that being a responsible service provider means having best practices in business continuity and being prepared to face extreme weather events that could be exacerbated by climate change. We report on our carbon footprint and carbon reduction initiatives through the CDP (formerly known as the Carbon Disclosure Project). The CDP represents more than 650 financial planners, advisors, wealth managers and institutional investors managing a total of U.S. $87 trillion in assets. The CDP gathers greenhouse gas data from organizations worldwide to help reveal the risk in the investment portfolios of these investors. BCE attained CDP Leadership status and made the list of the top 10 highest-scoring Canadian companies in 2017.

In addition, we consider the exploitation and trade of minerals that fuel armed conflicts and lead to human rights abuses as unacceptable. We monitor industry best practices and integrate them into our procurement programs on a continuing basis, as controls for conflict-free sourcing are being established globally.

Details on the performance of our programs and initiatives can be found under the heading Responsibility on BCE’s website at BCE.ca.

ENVIRONMENT

Bell Canada’s environmental policy affirms:

• our commitment to environmental protection
• our belief that environmental protection is an integral part of doing business and needs to be managed systematically under a continuous improvement process

The policy is reviewed annually and contains principles that support our goals, ranging from exercising due diligence to meet or exceed the environmental legislation that applies to us, to preventing pollution and promoting cost-effective initiatives that minimize use of resources and waste. For example, Bell Canada’s in-house stewardship program ensures our customers have access to a responsible way to dispose of electronic waste. We complemented this by supporting provincial industry-led stewardship programs across the country.

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We have instructed subsidiaries subject to this policy to support these principles, and have established a management-level committee to oversee the implementation of the policy.

Bell Canada monitors its operations to seek to ensure that it complies with environmental requirements and standards, and takes action seeking to prevent and correct problems, when needed. It has an environmental management and review system in place that:

• seeks to provide early warning of potential problems
• identifies management accountability
• enables systematic environmental risks and opportunities management, including cost savings
• establishes a course of action
• ensures ongoing improvement through regular monitoring and reporting

In 2009, Bell Canada obtained the ISO 14001 certification for its environmental management system (registration number: 0068926-00). Bell Canada was the first telecommunications company in Canada to obtain this certification, which covers Bell Canada’s landline, wireless, TV and Internet services, broadband services, data hosting, cloud computing, radio broadcasting services and digital media services in addition to related administrative functions. Bell Canada has continuously maintained the certification since 2009, and was recertified in 2015 for another three-year cycle. Forty-six buildings leased or owned by Bell Canada across the country are certified BOMA BEST. In addition, our Montréal campus is certified LEED NC, our Mississauga campus expansion is certified LEED NC Silver, our data centre in the Gatineau area is certified LEED NC Gold and our 720 King Street West location in Toronto is certified LEED EB Gold. BCE’s strong showing in sustainable indices, such as Ethibel and FTSE4Good, reflects the effectiveness of our ISO 14001 certified environmental management system, energy-saving measures and waste reduction initiatives, including the Bell Blue Box mobile recycling program.

One of Bell Canada’s key tools is the Corporate Environmental Action Plan, which outlines the environmental activities of our various business units. The plan identifies funding requirements, accountabilities and deliverables, and monitors our progress in meeting its objectives.

For the year ended December 31, 2017, we spent $30.4 million on environmental activities, 50% of which was expensed and 50% of which was for capital expenditures. For 2018, we have budgeted $28.6 million (64% for expenses and 36% for capital expenditures) to seek to ensure that our environmental policy is applied properly and our environmental risks are minimized.

COMMUNITY

We are committed to advancing the cause of mental health across Canada through Bell Let’s Talk. Mental illness affects all Canadians, yet this major health issue remains significantly underfunded, misunderstood and stigmatized. With one in five Canadians expected to suffer from mental illness during his or her lifetime, everyone has a family member, friend or colleague who has struggled with mental illness. The impact on the Canadian economy is staggering, with an estimated $6 billion each year in lost productivity costs due to absenteeism and presenteeism. In any given week, at least 500,000 employed Canadians are unable to work due to mental health problems.

In 2010, Bell announced Bell Let’s Talk, a five-year, $50 million initiative supporting an extensive range of programs to enhance mental health in every aspect of Canadian life. Bell Let’s Talk has four action pillars: anti-stigma, enhanced care and access, new research and workplace leadership. It is the largest-ever corporate effort to promote mental health in Canada. Five years later, in 2015 Bell announced the extension of Bell Let’s Talk for another five years and an increase in its total funding commitment for Canadian mental health to at least $100 million. Since its launch, Bell Let’s Talk has funded more than 780 mental health partners across Canada, from large health care institutions and universities to small community organizations in every region.

Bell Let’s Talk initiatives have included the introduction of annual community funds supporting grassroots mental health initiatives across Canada and for military families, as well as dedicated funds for Canada’s northern territories and Indigenous mental health in Manitoba; the world’s first university chair in anti-stigma studies at Queen’s University; funding and implementation of the world’s first voluntary standard on workplace mental health; Canada’s first biobank of biological, social and psychological data at the Institut universitaire en santé mentale de Montréal; the Bell Gateway Building at the Centre for Addiction and Mental Health (CAMH), the first mental health facility named for a corporation; and the first university-certified workplace mental health training program. More than 10,000 Bell managers across Canada have received training in mental health support and more than 1,000 internal workplace events have taken place since 2010 in support of ending the stigma of mental illness and building resiliency.

In 2017, Bell Let’s Talk provided funding to several new mental health projects including a $1 million investment to Strongest Families Institute, matched by combined funding from the governments of New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island to expand services for youth mental health, helping families across Atlantic Canada. Additional commitments in 2017 included: $300,000 to the Fondation Santé Sud de Lanaudière and the Fondation pour la Santé du Nord de Lanaudière to introduce a new group therapy program for people with Borderline Personality Disorder, and create a specialized team to support those living with co-occurring disorders; $250,000 to McGill University’s Montreal Neurological Institute to help increase access to care by developing

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3	Description of our business

culturally relevant information for patients, families and care providers for people from diverse cultural backgrounds; a joint $250,000 gift with Northwestel to support the implementation of safeTALK, a half-day alertness training program, across Nunavut, led by Embrace Life Council; a joint $200,000 gift with Unifor to Ma Mawi Wi Chi Itata Centre and CMHA Manitoba and Winnipeg to support the launch of the Strengthening Wellness Education to Love Life (SWELL) program; and $150,000 to St. John Ambulance to create a standardized, world-class St. John Ambulance Mental Health First Aid module that will be integrated into Emergency, Standard and AED (Automated External Defibrillator) training courses across Canada. Bell Let’s Talk also partnered with Queen’s University to renew the Queen’s Bell Canada Mental Health and Anti-Stigma Research Chair, with another investment of $1,000,000 to provide the leadership and collaboration within the university and across the wider community for the development and adoption of best practices in stigma reduction.

Bell’s Let’s Talk partners also include CAMH, Université Laval, Sunnybrook Health Sciences Centre, the Jewish General Hospital, Royal Ottawa Hospital, Hôpital Charles-LeMoyne, the University of British Columbia, the Douglas Mental Health University Institute, CHU de Québec, Concordia University, Brain Canada, Kids Help Phone, Université de Montréal, Fondation CERVO and McGill University.

The 2017 Bell Let’s Talk Community Fund program gave $1 million in grants to 70 organizations from across the country that have demonstrated dedication and commitment to help increase access to mental health care for those living with mental health issues. From the Hamlet of Arviat in Nunavut to the University of Prince Edward Island, each unique program will positively impact many people living in local communities. In January 2018, Bell announced that it is doubling its annual Bell Let’s Talk Community Fund to $2 million for community organizations nationwide.

In November 2017, Bell was honoured with the highest level of recognition from the Canada Awards for Excellence, in recognition of its long term focus on excellence in psychological health and safety in the workplace, and leadership in its approach to continuous and positive improvements in the integration of mental health into our culture and systems.

Because the challenge of stigma remains the primary reason that an estimated two-thirds of people with mental health problems do not receive the help they need, Bell continues to invite Canadians to talk about the issue. The 2018 Bell Let’s Talk Day awareness campaign featured personal stories from Canadians of all ages from all walks of life living with mental illness or providing support for those who do. On Bell Let’s Talk Day, January 31, 2018, Canadians joined the conversation about mental health, while also generating new funding for Canadian mental health programs. With 138,383,995 text messages, mobile calls and long distance calls by our customers, and Bell Let’s Talk interactions on Twitter, Facebook, Instagram and Snapchat made that day, Bell’s five-cent donation per text, call and interaction means that it has committed a further $6,919,199.75 to support mental health programs across the country.

Adding this amount to the original Bell Let’s Talk commitment of $50 million in 2010, along with the results of the first seven Bell Let’s Talk Days, Bell has now committed $93,423,628.80 to improving Canadian mental health.

To learn more, please visit Bell.ca/LetsTalk.

Between mental health and its other initiatives, Bell contributed more than $25 million in community investment in 2017. Our employees and pensioners also donated more than $2.8 million in charitable gifts and logged more than 250,000 hours in volunteer time.

3.8 Competitive environment

A discussion of our competitive environment can be found in section 3.3, Principal business risks and the various subsections entitled Competitive landscape and industry trends and Principal business risks of the BCE 2017 MD&A, on pages 45 and 46, 60 to 62, 68, 69 and 71, and 74 to 77 of the BCE 2017 Annual Report.

See also section 3.3, Competitive strengths in this Annual Information Form for more information concerning our competitive position.

3.9 Regulatory environment

A discussion of the legislation that governs our businesses, as well as government consultations and recent regulatory initiatives and proceedings affecting us, can be found in section 8, Regulatory environment of the BCE 2017 MD&A, on pages 91 to 96 of the BCE 2017 Annual Report.

More information with respect to the Canadian ownership restrictions on BCE’s common shares can be found in section 5.1, BCE securities in this Annual Information Form.

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	3	Description of our business

3.10 Intangible properties

We use various works protected by intellectual property rights (IP Assets), which we own or for which we have been granted rights of use. These IP Assets include, without limitation: brand names; trade-marks such as names, designs and logos; copyrights of content, programs and musical works; broadcast signals, software and applications; domain names; patents or patent applications for inventions owned or produced by us and our employees; and various copyright materials, trade-marks, patents and other intellectual property owned or licensed by us. We derive value through the use of these IP Assets in various business activities, and they are important to our operations and our success. To protect these IP Assets, we rely on a combination of legal protections afforded under copyright, trade-mark, patent and other intellectual property laws, as well as contractual provisions under licensing arrangements.

In particular, the Bell brand plays a key role in product positioning. Our branding is straightforward and directly supports our strategy of delivering a better customer experience at every level. Our trade-mark rights are perpetual, provided that their registrations are renewed on a timely basis when applicable and that the trade-marks are used in commerce by us or our licensees. Other types of intangible proprietary information are also important to our operations, such as customer lists.

We believe that we take reasonable and appropriate measures to protect, renew and defend our IP Assets, including prosecuting infringers, and we take great care not to infringe on the intellectual property rights of others. However, we cannot provide any assurance that the laws protecting intellectual property in various jurisdictions are, or will continue to be, adequate to protect our IP Assets or that we will be successful in preventing or defending claims by others asserting rights in or to our IP Assets.

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4	General development of our business – three-year history

4 General development of our business – three-year history

In line with our strategic imperatives described in section 3.2, Strategic imperatives in this Annual Information Form, during the last three completed financial years we have entered, or proposed to enter, into transactions and implemented various corporate initiatives that have influenced, or may influence, the general development of our business. Our regulatory environment has also influenced the general development of our business during this three-year period. These principal transactions and corporate initiatives and the effects of our regulatory environment are discussed below.

4.1 Transactions

ACQUISITION OF ALARMFORCE INDUSTRIES INC.

On January 5, 2018, BCE announced the completion of its acquisition of AlarmForce Industries Inc. (AlarmForce). The transaction was completed through a plan of arrangement under which BCE acquired all the issued and outstanding common shares of AlarmForce for a total aggregate consideration of approximately $182 million, paid in a combination of cash and BCE common shares. BCE directly or indirectly funded the approximately $181 million cash component with available liquidity and issued 22,531 BCE common shares to fund the equity component. The share consideration was based on BCE’s 20-day volume weighted price of $61.60 per common share, ending December 27, 2017 (five business days prior to the effective date of the transaction). Subsequent to the acquisition of AlarmForce, on January 5, 2018, BCE sold AlarmForce’s approximate 39,000 customer accounts in British Columbia, Alberta and Saskatchewan to TELUS Communications Inc. for total proceeds of approximately $67 million subject to customary closing adjustments.

AlarmForce provides security alarm monitoring, personal emergency response monitoring, video surveillance and related services to residential and commercial subscribers. The acquisition of AlarmForce supports our strategic expansion in the Connected Home marketplace.

AlarmForce will be included in our Bell Wireline segment in our consolidated financial statements.

The fair values of AlarmForce’s assets and liabilities have not yet been determined.

PROPOSED ACQUISITION OF SÉRIES+ AND HISTORIA SPECIALITY CHANNELS

On October 17, 2017, BCE entered into an agreement with Corus Entertainment Inc. (Corus) to acquire French-language specialty channels Séries+ and Historia. The transaction is valued at approximately $200 million. Subject to closing conditions, including approval by the CRTC and the Competition Bureau, the transaction is expected to close in mid-2018.

Séries+ is a fiction channel, offering locally produced dramas as well as foreign series. Historia broadcasts a suite of locally produced original content including documentaries, reality series and drama series.

The acquisition of Séries+ and Historia is expected to further enhance our competitiveness in the Québec media landscape.

ACQUISITION OF MTS

On March 17, 2017, BCE completed the acquisition of MTS originally announced on May 2, 2016, purchasing all of the issued and outstanding common shares of MTS for a total consideration of $2,933 million, and assumed outstanding net debt of $972 million. BCE acquired all of the issued and outstanding common shares of MTS for $40 per share, which was paid 55% through the issuance of BCE common shares and 45% in cash. The cash component of $1,339 million was funded through debt financing and BCE issued approximately 27.6 million common shares for the equity portion of the transaction. The combined companies’ Manitoba operations are now known as Bell MTS. On April 1, 2017, BCE completed the divestiture of approximately one-quarter of postpaid wireless subscribers and 15 of the retail locations previously held by MTS, as well as certain Manitoba network assets, to TELUS Communications Inc. for total proceeds of $323 million.

Subsequent to the acquisition of MTS, on March 17, 2017, BCE transferred to Xplornet Communications Inc. (Xplornet) a total of 40 MHz of 700 MHz AWS-1 and 2500 MHz wireless spectrum which was previously held by MTS. BCE has also agreed to transfer to Xplornet wireless customers once Xplornet launches its mobile wireless service.

On April 1, 2017, MTS Inc. amalgamated with Bell Canada.

With the completion of the acquisition of MTS, our wireless, high-speed Internet, TV and NAS subscriber bases increased by 476,932 (418,427 postpaid), 229,470, 108,107 (104,661 IPTV) and 419,816 (223,663 residential and 196,153 business) subscribers, respectively. This resulted into a 5% increase in Bell’s total broadband service subscribers.

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	4	General development of our business – three-year history

OTHER KEY COMPLETED TRANSACTIONS

In addition to the above transactions, in line with our strategic imperatives, we have concluded certain other transactions from 2015 to 2017 that have influenced the general development of our business. More information with respect to these transactions is provided in the table below.

TRANSACTION	KEY CHARACTERISTICS
Acquisition of Cieslok Media Ltd. (Cieslok) (2017)	On January 3, 2017, Bell Media acquired all of the issued and outstanding common shares of Cieslok for a total cash consideration of $161 million. Cieslok specializes in large-format outdoor advertising in key urban areas across Canada. The acquisition will contribute to growing and strengthening our digital presence in OOH advertising.
Acquisition of Q9 Networks Inc. (Q9) (2016)	On August 8, 2016, BCE announced its agreement to acquire all equity not already owned by BCE in Q9, a Toronto-based data centre operator providing outsourced hosting and other data solutions to Canadian business and government customers. Q9 had previously been acquired in October 2012 by an investor group comprised of BCE, Ontario Teachers’ Pension Plan Board, Providence Equity Partners LLC and funds managed by Madison Dearborn Partners LLC. BCE held a 35.4% stake in Q9 and acquired the remaining 64.6% equity interest from its fellow investors. The transaction was valued at approximately $680 million, including Q9 net debt but excluding BCE’s prior ownership interest. The transaction closed on October 3, 2016. The acquisition supports BCE’s ability to compete against domestic and international providers in the growing outsourced data services sector. On January 1, 2017, various entities of the Q9 group of companies, as well as certain former Bell Aliant Inc. subsidiaries, amalgamated with Bell Canada.
National expansion of HBO and TMN (2016)	On November 19, 2015, BCE announced a transaction with Corus whereby Bell Media would pay Corus a total consideration of $211 million for Corus to waive its HBO content rights in Canada and wind down the operations of its Movie Central and Encore Avenue pay TV services in Western and Northern Canada, thereby allowing Bell Media to become the sole operator of HBO Canada nationally across all platforms and to expand TMN into a national pay TV service. In December 2015, Bell Media paid a deposit of $21 million to Corus and in January 2016 completed the final payment of $197 million for a total consideration of $218 million. TMN was successfully launched nationally on March 1, 2016 and Movie Central and Encore Avenue’s operations ceased on the same day.
Acquisition of Glentel (2015)	On November 28, 2014, BCE announced the signing of a definitive agreement to acquire all of the issued and outstanding shares of Glentel, a Canadian-based dual-carrier, multi-brand mobile products distributor offering wireless products and services from Bell Mobility and Rogers Communications Inc. (Rogers). On December 24, 2014, BCE further announced that it would divest 50% of its ownership interest in Glentel to Rogers following the closing of BCE’s acquisition of Glentel. On May 20, 2015, BCE completed the acquisition of all of the issued and outstanding common shares of Glentel for a total consideration of $592 million, of which $296 million ($284 million, net of cash on hand) was paid in cash and the balance through the issuance of 5,548,908 BCE common shares. Immediately following closing of the acquisition, BCE repaid Glentel’s outstanding debt in the amount of approximately $112 million and contributed $53 million in exchange for additional Glentel common shares. Subsequently, also on May 20, 2015, BCE divested 50% of its ownership interest in Glentel to Rogers for a total cash consideration of approximately $473 million ($407 million, net of divested cash and transaction costs).

4.2 Corporate initiatives

UPGRADE, EXPANSION AND TRANSFORMATION OF OUR NETWORK

Our competitive landscape continues to evolve with web-based and over-the-top (OTT) players penetrating the telecommunications space. With this evolution comes the demand from consumers for faster access to services and content. With data consumption greater than ever before, we continue to invest heavily in our LTE wireless and wireline fibre networks to keep up with the capacity to ensure customers are provided with the best possible experience. One of our key objectives in the past three financial years has been investing in our broadband networks and services to enhance our competitive position and promote future growth opportunities. During this period, we upgraded our access infrastructure by deploying fibre-optic technology closer to our customers, which made possible the expansion of our Bell Fibe Internet and TV services, and enabled us to launch our new Gigabit Fibe Internet service in August 2015. During this period, we also made substantial investments in our wireless networks, which led to the expansion of our 4G LTE wireless network and the subsequent rollout of our Dual-band, Tri-band and Quad Band LTE-A network services since 2015. Refer to section 3.5, Networks in this Annual Information Form for a detailed description of developments relating to our wireline and wireless networks during the three-year period ended December 31, 2017.

Most recently, we launched a project seeking to transform our network, systems and processes with three main objectives: (a) to become more agile in our service delivery and operations, including self-serve and instant-on capabilities for our customers; (b) to ensure best quality and best customer experience; and (c) to develop a new network infrastructure that enables a competitive cost structure with rapidly growing capacity needs. We are leveraging new technologies, including network functions virtualization, software-defined networks and cloud technologies. These technologies offer unprecedented levels of flexibility, automation and elastic capacity: 5G, IoT, enhanced Internet, communication and video services, as well as the next generation of enterprise cloud applications, all depend heavily on these capabilities. We work closely with our partners and are leveraging these connections by contributing to industry associations that are accelerating this evolution, such as the open source software and hardware initiatives. We are also focusing on transforming our organization and some key development and operational processes to meet our objectives.

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4	General development of our business – three-year history

EXPANDING MEDIA LEADERSHIP

In furtherance of our strategic imperative to expand media leadership, we seek to continue to deliver leading sports, news, entertainment and business content across all screens and platforms. Our objective is to grow audiences, introduce new services and create new revenue streams for our media assets, as well as create more of our own content. In the past three financial years, we have continued to make progress in expanding media leadership, including as previously discussed in this Annual Information Form. Refer to section 2.4, Expand media leadership of the BCE 2017 MD&A contained in the BCE 2017 Annual Report for a discussion of media initiatives that we implemented in the financial year ended December 31, 2017. Refer to section 2.4, Expand media leadership of the BCE 2016 MD&A and section 2.3, Expand media leadership of the BCE 2015 MD&A, contained in the BCE 2016 Annual Report and the BCE 2015 Annual Report, respectively, for a discussion of media initiatives that we implemented in the financial years ended December 31, 2016 and 2015.

ENHANCING CUSTOMER SERVICE

Our strategic priorities require that we constantly focus on delivering an improved customer experience while at the same time seeking to increase efficiency and reduce costs. During the past three financial years, we continued to make progress on enhancing the customer experience through ongoing investments in new service systems and improved processes. Refer to section 2.5, Improve customer service of the BCE 2017 MD&A contained in the BCE 2017 Annual Report for a discussion of customer service improvement initiatives that we implemented in the financial year ended December 31, 2017. Refer to section 2.5, Improve customer service of the BCE 2016 MD&A and section 2.6, Improve customer service of the BCE 2015 MD&A, contained in the BCE 2016 Annual Report and the BCE 2015 Annual Report, respectively, for a discussion of customer service improvement initiatives that we implemented in the financial years ended December 31, 2016 and 2015.

4.3 Regulatory environment

During the past three financial years, the general development of our business has been affected by decisions made by the Government of Canada and its relevant departments and agencies, including the CRTC, ISED, Canadian Heritage and the Competition Bureau. Although most of our retail services are not price-regulated, government agencies and departments such as those described above continue to play a significant role in regulatory matters such as mandatory access to networks, spectrum auctions, approval of acquisitions, broadcast licensing and foreign ownership requirements. Refer to section 8, Regulatory environment of the BCE 2017 MD&A, the BCE 2016 MD&A and the BCE 2015 MD&A contained in the BCE 2017 Annual Report, the BCE 2016 Annual Report and the BCE 2015 Annual Report, respectively, for a discussion of the regulatory initiatives and proceedings that influenced the general development of our business in the financial years ended December 31, 2017, 2016 and 2015.

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	5	Our capital structure

5 Our capital structure

This section describes BCE’s and Bell Canada’s securities, the trading of certain of such securities on the Toronto Stock Exchange (TSX) and the ratings that certain rating agencies have attributed to BCE’s preferred shares and Bell Canada’s debt securities that are issued and outstanding.

5.1 BCE securities

BCE’s articles of amalgamation, as amended, provide for an unlimited number of common shares, an unlimited number of first preferred shares issuable in series, an unlimited number of second preferred shares also issuable in series and an unlimited number of Class B shares. As at March 8, 2018, BCE had no Class B shares or second preferred shares outstanding.

Each common share entitles its holder to one vote at any meeting of shareholders. Additional information about the terms and conditions of the BCE preferred shares, common shares and Class B shares can be found in Note 25, Share capital of the BCE 2017 consolidated financial statements, on pages 155 and 156 of the BCE 2017 Annual Report.

Since 1993, the Telecommunications Act and associated regulations (Telecom Regulations) have governed Canadian ownership and control of Canadian telecommunications carriers. Bell Canada and other affiliates of BCE that are Canadian carriers are subject to this Act. In 2012, amendments to the Telecommunications Act largely eliminated the foreign ownership restrictions for any carrier that, with its affiliates, has annual revenues from the provision of telecommunications services in Canada that represent less than 10% of the total annual revenues from the provision of these services in Canada, as determined by the CRTC. However, given that Bell Canada and its affiliates exceed this 10% threshold, they remain subject to the pre-existing Canadian ownership and control restrictions, which are detailed below.

Under the Telecommunications Act, in order for a corporation to operate as a Canadian common carrier, the following conditions have to be met:

• Canadians own at least 80% of its voting shares
• at least 80% of the members of the carrier company’s board of directors are Canadian
• the carrier company is not controlled by non-Canadians

In addition, where a parent company (Carrier holding company) owns at least 66 2/3% of the voting shares of the carrier company, the Carrier holding company must have at least 66 2/3% of its voting shares owned by Canadians and must not be controlled by non-Canadians. BCE is a Carrier holding company. The Telecom Regulations give certain powers to the CRTC and to Canadian carriers and Carrier holding companies to monitor and control the level of non-Canadian ownership of voting shares to ensure compliance with the Telecommunications Act. Accordingly, BCE, which controls Bell Canada and other Canadian carriers, must satisfy the following conditions:

• Canadians own at least 66 2/3% of its voting shares, and
• it is not controlled by non-Canadians.

The powers under the Telecom Regulations include the right to:

• suspend the voting rights attached to shares considered to be owned or controlled by non-Canadians
• refuse to register a transfer of voting shares to a non-Canadian, and
• force a non-Canadian to sell his or her voting shares.

However, in our case, there is an additional control restriction under the Bell Canada Act. Prior approval by the CRTC is necessary for any sale or other disposal of Bell Canada’s voting shares unless BCE retains at least 80% of all Bell Canada voting shares.

Similarly, the Canadian ownership rules under the Broadcasting Act for broadcasting licensees, such as Bell Media and Bell Canada, generally mirror the rules for Canadian-owned and -controlled common carriers under the Telecommunications Act by restricting allowable foreign investments in voting shares at the licensee operating company level to a maximum of 20% and at the holding company level to a maximum of 33 1/3%. An additional requirement under these Canadian broadcasting ownership rules is that the chief executive officer of a company that is a licensed broadcasting undertaking must be a Canadian citizen or permanent resident of Canada. The CRTC is precluded under a direction issued under the Broadcasting Act from issuing, amending or renewing a broadcasting licence of an applicant that does not satisfy these Canadian ownership and control criteria.

Cultural concerns over increased foreign control of broadcasting activities lie behind an additional restriction that prevents the holding company of a broadcasting licensee that exceeds the former 20% limit (or its directors) from exercising control or influence over any programming decisions of a subsidiary licensee. In line with CRTC practice, programming committees have been established within the relevant subsidiary licensees, thereby allowing foreign investment in voting shares of BCE to reach the maximum of 33 1/3%.

We monitor the level of non-Canadian ownership of BCE’s common shares by obtaining data on: (i) registered shareholders from our transfer agent and registrar, AST Trust Company (Canada), and (ii) beneficial shareholders from the Canadian Depository for Securities (CDS) and the Depository Trust Company (DTC) in the U.S. We also provide periodic reports to the CRTC.

As of March 8, 2018, BCE had no debt securities outstanding.

		BCE Inc.     2017 ANNUAL INFORMATION FORM     19
5	Our capital structure

5.2 Bell Canada debt securities

As at December 31, 2017, Bell Canada has issued, or assumed, in the case of Bell MTS Inc., long-term debt securities as summarized in the table below.

DEBT SECURITIES	WEIGHTED AVERAGE INTEREST RATE	MATURITY	AT DECEMBER 31, 2017 (IN $ MILLIONS)
1997 trust indenture	3.86%	2018 – 2047	14,950
1976 trust indenture	9.54%	2021 – 2054	1,100
Subordinated debentures	8.21%	2026 – 2031	275
2011 trust indenture (1)	4.28%	2018 – 2024	425
2001 trust indenture (1)	5.63%	2019	200
Total	4.33%		16,950

(1) As part of the acquisition of MTS, on March 17, 2017, Bell Canada assumed all of MTS’ debt issued under its 2001 and 2011 trust indentures.

As part of the acquisition of MTS, on March 17, 2017, Bell Canada assumed all of Bell MTS Inc.’s (previously Manitoba Telecom Services Inc.) public debt in the aggregate principal amount of $625 million issued under its trust indentures. More specifically, Bell Canada assumed Bell MTS Inc.’s 5.625% Series 8 Notes in the principal amount of $200 million, due December 16, 2019, issued under Bell MTS Inc.’s trust indenture dated May 1, 2001, as amended, and Bell MTS Inc.’s 4.59% Series 9 Notes in the principal amount of $200 million, due October 1, 2018, and 4.00% Series 10 Notes in the principal amount of $225 million, due May 27, 2024, issued under Bell MTS Inc.’s trust indenture dated August 1, 2011, as amended. BCE Inc. guaranteed the full and timely payment of the above-mentioned Bell MTS Inc. Notes.

On May 12, 2017, Bell Canada redeemed, prior to maturity, all of its outstanding $350 million principal amount of 4.37% Debentures, Series M-35, due September 13, 2017, at a price equal to $1,011.110 per $1,000 of principal amount of debentures plus $7.184 for accrued and unpaid interest. On October 9, 2017, Bell Canada redeemed, prior to maturity, all of its outstanding $300 million principal amount of 4.88% Debentures, Series M-36, due April 26, 2018, at a price equal to $1,017.480 per $1,000 of principal amount of debentures plus $22.241 for accrued and unpaid interest. On October 30, 2017, Bell Canada redeemed, prior to maturity, $1 billion principal amount of its 4.40% medium-term debentures (MTN Debentures), Series M-22, due March 16, 2018, at a price equal to $1,011.150 per $1,000 of principal amount of debentures plus $5.304 per $1,000 of principal amount for accrued and unpaid interest.

The Bell Canada debentures are unsecured and have been guaranteed by BCE. Additional information about the terms and conditions of the Bell Canada debentures can be found in Note 20, Long-term debt of the BCE 2017 consolidated financial statements on pages 145 and 146 of the BCE 2017 Annual Report.

Under its shelf prospectus (2016 Shelf Prospectus) and prospectus supplement (2016 Prospectus Supplement) dated September 20, 2016 and September 30, 2016, respectively, Bell Canada could issue, over a 25-month period, up to $4 billion of unsecured MTN Debentures. On February 27, 2017, Bell Canada issued, under the 2016 Shelf Prospectus and 2016 Prospectus Supplement, $1.5 billion of MTN Debentures, Series M-44 and Series M-45. The $1 billion of 2.70% MTN Debentures, Series M-44, due February 27, 2024, were issued at a price of $99.886 per $100 principal amount, and the $500 million of 4.45% MTN Debentures, Series M-45, due February 27, 2047, were issued at a price of $99.475 per $100 principal amount. The net proceeds of the offering were used principally to fund the cash component of the acquisition of MTS, and to repay short-term debt. On September 29, 2017, Bell Canada issued, under the 2016 Shelf Prospectus and 2016 Prospectus Supplement, $1.5 billion of MTN Debentures, Series M-40 and Series M-46. The $700 million of 3.00% MTN Debentures, Series M-40, a re-opening of an existing series, due October 3, 2022, were issued at a price of $100.934 per $100 principal amount. The $800 million of 3.60% MTN Debentures, Series M-46, due September 29, 2027, were issued at a price of $99.709 per $100 principal amount. The net proceeds of the offering were used to fund the early redemption in October 2017 of two series of Bell Canada debentures maturing in 2018, as well as for other general corporate purposes. On March 7, 2018, Bell Canada announced that, on March 12, 2018, it would issue under the 2016 Shelf Prospectus and 2016 Prospectus Supplement $500 million principal amount of 3.35% MTN Debentures, Series M-47, at a price of $99.851 per $100 principal amount, to mature on March 12, 2025. The net proceeds of the offering are intended to be used to redeem prior to maturity Bell Canada’s 5.52% Series M-33 debentures having an outstanding principal amount of $300 million, which are due on February 26, 2019, and for the repayment of other short-term debt.

Certain of Bell Canada’s trust indentures and Bell MTS’ trust indentures assumed by Bell Canada impose covenants that place limitations on the issuance of additional debt with a maturity date exceeding one year based on certain tests related to interest and asset coverage. In addition, Bell Canada is required, under certain conditions, to make an offer to repurchase all or, at the option of the holder thereof, any part of certain series of its debt securities upon the occurrence of both a “Change of Control” of BCE or Bell Canada and a “Rating Event” relating to the relevant series of debt securities. “Change of Control” and “Rating Event” are defined in the terms and conditions of the relevant series of debt securities. Bell Canada is in compliance with all conditions and restrictions of its debt securities.

20     BCE Inc.     2017 ANNUAL INFORMATION FORM
	5	Our capital structure

Bell Canada may issue short-term notes (Notes) under its Canadian and U.S. commercial paper programs up to the maximum aggregate principal amount of $2.5 billion in Canadian or U.S. currency provided that at no time shall such aggregate principal amount of Notes exceed $3.5 billion in Canadian currency, which equals the amount available under Bell Canada’s supporting committed lines of credit as of March 8, 2018. The sale of Notes pursuant to Bell Canada’s separate Canadian or U.S. program decreases the Canadian or U.S. $2.5 billion maximum principal amount of Notes authorized to be outstanding at any time under both programs, with one Canadian dollar being treated as equal to one U.S. dollar for purposes of this limitation. At March 8, 2018, Bell Canada had Notes outstanding under its U.S. program in the principal amount of U.S. $2,497 million (CAN $3,154 million when taking into account hedges with forward currency contracts against foreign currency fluctuations). As at the same date, no Notes were outstanding under Bell Canada’s Canadian program.

5.3 Credit Ratings

Ratings generally address the ability of a company to repay principal and pay interest or dividends on issued and outstanding securities.

Our ability to raise financing 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 partly on the quality of our credit ratings at the time capital is raised. Investment-grade 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 our ability to access the capital markets.

As of March 8, 2018, BCE’s preferred shares are rated by DBRS Limited (DBRS) and Standard & Poor’s Ratings Services (Canada), a business unit of S&P Global Canada Corp. (S&P), and Bell Canada’s debt securities are rated by DBRS, Moody’s Investors Service, Inc. (Moody’s) and S&P.

This section describes the credit ratings, as of March 8, 2018, for certain of the issued and outstanding securities of BCE and Bell Canada. These ratings provide investors with an independent measure of the credit quality of an issue of securities. However, they are not recommendations to buy, sell or hold any of the securities referred to below, and they may be revised or withdrawn at any time by the assigning rating agency. Each credit rating should be evaluated independently of any other credit rating.

In the past two years, we have paid rating agencies to assign ratings to BCE’s preferred shares as well as Bell Canada’s short-term and long-term debt securities. The fees paid to DBRS and S&P include access to their websites. In addition, we paid DBRS and Moody’s to assign ratings in connection with Bell Canada’s accounts receivable programs.

RATINGS FOR BCE AND BELL CANADA SECURITIES

RATINGS FOR BELL CANADA SHORT-TERM DEBT SECURITIES

SHORT-TERM DEBT SECURITIES	RATING AGENCY	RATING	RANK
Bell Canada commercial paper	DBRS	R-2 (high)	4 out of 10
	Moody’s	P-2	2 out of 4
	S&P	A-1 (Low) (Canadian scale)	3 out of 8
		A-2 (Global scale)	3 out of 7

RATINGS FOR BELL CANADA LONG-TERM DEBT SECURITIES

LONG-TERM DEBT SECURITIES	RATING AGENCY	RATING	RANK
Bell Canada unsubordinated long-term debt	DBRS	BBB (high)	8 out of 26
	Moody’s	Baa1	8 out of 21
	S&P	BBB+	8 out of 22
Bell Canada subordinated long-term debt	DBRS	BBB (low)	10 out of 26
	Moody’s	Baa2	9 out of 21
	S&P	BBB	9 out of 22

		BCE Inc.     2017 ANNUAL INFORMATION FORM     21
5	Our capital structure

RATINGS FOR BCE PREFERRED SHARES

PREFERRED SHARES	RATING AGENCY	RATING	RANK
BCE preferred shares	DBRS	Pfd-3	8 out of 16
	S&P	P-2 (Low) (Canadian scale)	6 out of 18
		BBB- (Global scale)	8 out of 20

As of March 8, 2018, BCE and Bell Canada’s credit ratings have stable outlooks from DBRS, Moody’s and S&P.

GENERAL EXPLANATION

SHORT-TERM DEBT SECURITIES

The table below shows the range of credit ratings that each rating agency assigns to short-term debt instruments.

	HIGHEST QUALITY	LOWEST QUALITY
	OF SECURITIES RATED	OF SECURITIES RATED
DBRS	R-1 (high)	D
Moody’s	P-1	NP
S&P (Canadian scale)	A-1 (High)	D
S&P (Global scale)	A-1+	D

The DBRS short-term debt rating scale provides an opinion on the risk that a borrower will not meet its short-term financial obligations in a timely manner. Ratings are based on quantitative and qualitative considerations relevant to the borrowing entity.

Moody’s short-term debt ratings are Moody’s opinions on the ability of issuers to meet short-term financial obligations. Short-term ratings are assigned to obligations with an original maturity of 13 months or less and reflect the likelihood of a default on contractually promised payments and the expected financial loss suffered in the event of default.

An S&P Canadian commercial paper rating and short-term debt rating scale provides an assessment of whether the company can meet the financial commitments of a specific commercial paper program or other short-term financial instrument, compared to the debt servicing and repayment capacity of other companies in the relevant financial market.

LONG-TERM DEBT SECURITIES

The table below shows the range of credit ratings that each rating agency assigns to long-term debt instruments.

	HIGHEST QUALITY	LOWEST QUALITY
	OF SECURITIES RATED	OF SECURITIES RATED
DBRS	AAA	D
Moody’s	Aaa	C
S&P	AAA	D

The DBRS long-term debt rating scale provides an opinion on the risk of default; that is, the risk that an issuer will fail to satisfy its financial obligations in accordance with the terms under which an obligation has been issued. Ratings are based on quantitative and qualitative considerations relevant to the borrowing entity.

Moody’s long-term debt ratings are assigned to issuers or obligations with an original maturity of one year or more and reflect both the likelihood of a default on contractually promised payments and the expected financial loss suffered in the event of default.

S&P’s long-term debt credit rating scale provides an assessment of the creditworthiness of a company in meeting a specific financial obligation, a specific class of financial obligations or a specific financial program. It takes into consideration the likelihood of payment; that is, the capacity and willingness of the company to meet its financial commitment on an obligation according to the terms of the obligation, among other factors.

PREFERRED SHARES

The table below describes the range of credit ratings that each rating agency assigns to preferred shares.

	HIGHEST QUALITY	LOWEST QUALITY
	OF SECURITIES RATED	OF SECURITIES RATED
DBRS	Pfd-1 (high)	D
S&P (Canadian scale)	P-1 (High)	D
S&P (Global scale)	AA	D

The DBRS preferred share rating scale indicates its assessment of the risk that a borrower may not be able to meet its full obligation to pay dividends and principal in a timely manner. Every DBRS rating is based on quantitative and qualitative considerations relevant to the borrowing entity.

S&P’s preferred share rating is an assessment of the creditworthiness of a company in meeting a specific preferred share obligation issued in the relevant market, compared to preferred shares issued by other issuers in the relevant market.

22     BCE Inc.     2017 ANNUAL INFORMATION FORM
	5	Our capital structure

EXPLANATION OF RATING CATEGORIES RECEIVED FOR OUR SECURITIES

The following explanations of the rating categories received for our securities have been published by the applicable rating agencies.

The explanations and corresponding rating categories provided below are subject to change by the applicable rating agencies.

RATING	DESCRIPTION		EXPLANATION OF
AGENCY	OF SECURITIES	RATING CATEGORY	RATING CATEGORY RECEIVED
DBRS	Short-term debt	R-2 (high)	upper end of adequate credit quality
			capacity for the payment of short-term financial obligations as they fall due is acceptable
			may be vulnerable to future events
	Long-term debt	BBB (high)	adequate credit quality
			capacity for the payment of financial obligations is considered acceptable
			may be vulnerable to future events
	Long-term subordinated debt	BBB (low)	adequate credit quality
			capacity for the payment of financial obligations is considered acceptable
			may be vulnerable to future events
	Preferred shares	Pfd-3	adequate credit quality
			protection of dividends and principal is still considered acceptable, but the company is more
			susceptible to adverse changes in financial and economic conditions, and there may be other adverse conditions present which detract from debt protection. Generally, companies with Pfd-3 ratings have senior bonds rated at the higher end of the BBB category
Moody’s	Short-term debt	P-2	a strong ability to repay short-term debt obligations
	Long-term debt	Baa	subject to moderate credit risk
			considered medium-grade and may have certain speculative characteristics
S&P	Short-term debt	A-1 (Low) (Canadian scale)	satisfactory capacity of the company to fulfill its financial commitment on the obligation
		A-2 (Global scale)	somewhat more susceptible to changing circumstances and economic conditions than obligations rated higher
	Long-term debt	BBB	adequate protection parameters
			adverse economic conditions or changing circumstances are more likely to weaken the company’s ability to meet its financial commitments
	Preferred shares	P-2 (Canadian scale)	adequate protection parameters
		BBB- (Global scale)	adverse economic conditions or changing circumstances are more likely to weaken the company’s ability to meet its financial commitments

		BCE Inc.     2017 ANNUAL INFORMATION FORM     23
5	Our capital structure

5.4 Trading of our securities

The common and first preferred shares of BCE are listed on the TSX under the respective symbols set out in the tables below. BCE’s common shares are also listed on the New York Stock Exchange (NYSE) under the symbol BCE.

The tables below and on the next page show the range in share price per month and volume traded on the TSX in 2017 for BCE’s common shares and each series of BCE’s first preferred shares.

		FIRST PREFERRED SHARES
	COMMON	SERIES R	SERIES S	SERIES T	SERIES Y	SERIES Z	SERIES AA	SERIES AB	SERIES AC	SERIES AD	SERIES AE
	SHARES (BCE)	(BCE.PR.R)	(BCE.PR.S)	(BCE.PR.T)	(BCE.PR.Y)	(BCE.PR.Z)	(BCE.PR.A)	(BCE.PR.B)	(BCE.PR.C)	(BCE.PR.D)	(BCE.PR.E)
January 2017
High	$59.080	$18.670	$16.770	$16.680	$16.850	$16.890	$16.800	$16.800	$17.350	$16.830	$16.730
Low	$57.360	$17.680	$15.490	$14.920	$15.240	$15.200	$15.320	$15.340	$15.580	$15.280	$15.200
Volume	25,089,026	198,950	59,591	64,449	135,418	45,966	633,548	236,374	195,206	198,916	370,202
February 2017
High	$59.110	$19.090	$17.150	$17.140	$17.210	$17.150	$17.320	$17.200	$17.980	$17.300	$17.240
Low	$57.200	$18.010	$16.780	$16.650	$16.630	$16.580	$16.650	$16.670	$17.100	$16.670	$16.670
Volume	39,527,288	131,321	61,719	35,132	143,014	39,868	433,958	624,912	94,974	479,977	211,214
March 2017
High	$59.230	$19.890	$17.660	$17.500	$17.770	$17.650	$17.640	$17.580	$18.210	$17.700	$17.640
Low	$57.240	$18.900	$16.810	$16.570	$16.770	$16.890	$16.850	$16.810	$17.310	$16.810	$16.830
Volume	44,131,782	141,075	100,503	107,449	133,303	42,410	137,738	232,723	106,691	191,481	181,451
April 2017
High	$63.000	$19.870	$17.470	$17.340	$17.470	$17.570	$17.730	$17.410	$18.100	$17.590	$17.500
Low	$58.670	$19.260	$17.050	$16.660	$16.960	$17.140	$17.050	$16.950	$17.340	$16.950	$16.990
Volume	26,750,186	100,463	52,444	81,340	65,637	50,720	571,710	127,111	93,752	175,549	94,301
May 2017
High	$62.450	$19.840	$17.530	$16.900	$17.170	$17.190	$17.350	$17.160	$17.760	$17.180	$17.100
Low	$59.980	$18.750	$16.590	$16.250	$16.570	$16.480	$16.300	$16.320	$16.800	$16.500	$16.360
Volume	29,747,137	98,970	37,336	54,730	69,095	17,672	126,240	81,710	70,944	177,475	97,775
June 2017
High	$61.400	$19.400	$17.250	$16.780	$17.320	$17.150	$17.480	$17.250	$17.620	$17.350	$17.260
Low	$58.140	$18.650	$16.240	$16.100	$16.190	$16.200	$16.070	$16.170	$16.570	$16.170	$16.200
Volume	31,311,126	194,325	67,541	75,736	198,278	16,452	367,363	187,031	245,520	231,909	110,293
July 2017
High	$59.175	$19.570	$18.410	$17.530	$18.460	$18.450	$18.510	$18.510	$18.670	$18.580	$18.430
Low	$57.550	$19.050	$17.440	$16.760	$17.310	$17.400	$17.390	$17.300	$17.610	$17.260	$17.270
Volume	21,551,522	82,258	48,317	58,815	57,055	16,521	183,815	77,011	177,503	196,457	55,159
August 2017
High	$60.000	$19.290	$18.600	$17.530	$18.600	$18.620	$18.500	$18.600	$18.570	$18.710	$18.660
Low	$58.160	$18.850	$17.900	$17.250	$17.900	$17.900	$17.480	$17.640	$17.890	$17.350	$17.910
Volume	20,561,865	62,369	49,518	66,835	48,975	31,428	1,669,592	148,596	152,256	2,139,905	54,822
September 2017
High	$59.510	$19.300	$18.780	$17.790	$18.790	$18.800	$18.650	$18.860	$19.000	$18.830	$18.820
Low	$57.210	$18.900	$18.310	$17.330	$18.140	$18.040	$18.100	$18.200	$18.310	$18.230	$18.150
Volume	28,307,708	420,919	60,335	74,640	115,691	10,855	254,258	101,825	205,082	122,914	27,383
October 2017
High	$59.980	$20.320	$19.610	$18.690	$19.760	$19.660	$19.000	$19.730	$19.840	$19.770	$19.770
Low	$58.350	$19.180	$18.750	$17.560	$18.780	$18.810	$18.400	$18.760	$18.900	$18.730	$18.700
Volume	20,648,762	223,105	74,548	75,250	275,087	28,922	170,420	231,424	138,532	358,228	428,206
November 2017
High	$62.400	$20.450	$20.270	$19.090	$20.770	$20.160	$19.850	$20.200	$20.180	$20.250	$20.190
Low	$59.280	$19.620	$19.170	$18.300	$19.100	$19.100	$18.850	$19.170	$19.200	$19.170	$19.210
Volume	23,652,518	46,429	98,717	23,014	42,703	34,332	185,709	173,833	168,713	170,639	171,633
December 2017
High	$62.900	$21.430	$20.400	$19.000	$20.250	$20.300	$19.550	$20.300	$20.850	$20.360	$20.360
Low	$59.590	$20.250	$19.630	$18.380	$19.490	$19.850	$18.850	$19.650	$19.600	$19.600	$19.640
Volume	25,800,773	106,615	20,617	38,130	53,514	11,459	121,573	93,945	35,945	325,301	330,547

24     BCE Inc.     2017 ANNUAL INFORMATION FORM
	5	Our capital structure

	FIRST PREFERRED SHARES
	SERIES AF	SERIES AG	SERIES AH	SERIES AI	SERIES AJ	SERIES AK	SERIES AL	SERIES AM	SERIES AN	SERIES AO	SERIES AQ
	(BCE.PR.F)	(BCE.PR.G)	(BCE.PR.H)	(BCE.PR.I)	(BCE.PR.J)	(BCE.PR.K)	(BCE.PR.L)	(BCE.PR.M)	(BCE.PR.N)	(BCE.PR.O)	(BCE.PR.Q)
January 2017
High	$16.980	$16.400	$16.790	$16.970	$16.640	$16.990	$16.210	$17.200	$16.250	$23.240	$22.960
Low	$14.950	$14.240	$15.250	$14.120	$15.200	$15.120	$14.530	$15.590	$14.990	$22.040	$21.070
Volume	258,173	201,053	547,271	160,037	295,069	456,533	28,832	187,381	33,920	267,873	140,950
February 2017
High	$17.460	$17.010	$17.160	$16.820	$17.140	$17.890	$17.850	$18.340	$16.840	$24.210	$23.600
Low	$16.460	$16.240	$16.630	$16.260	$16.680	$16.720	$16.000	$16.880	$16.240	$22.940	$22.380
Volume	133,350	80,428	123,579	115,156	145,210	445,508	59,414	154,480	45,143	93,909	107,613
March 2017
High	$17.550	$17.130	$17.700	$17.230	$17.600	$18.190	$18.250	$18.550	$17.350	$23.820	$23.310
Low	$16.570	$16.410	$16.950	$16.300	$16.810	$17.250	$16.600	$17.830	$16.700	$22.690	$21.980
Volume	235,972	186,078	329,791	154,637	191,120	425,007	25,733	288,666	35,314	205,324	323,467
April 2017
High	$17.580	$17.010	$17.450	$16.890	$17.410	$18.010	$18.100	$18.370	$18.120	$24.630	$23.330
Low	$16.910	$16.390	$16.970	$16.270	$16.930	$17.260	$17.500	$17.970	$16.700	$23.690	$22.320
Volume	106,798	139,678	133,642	86,383	251,573	710,639	11,810	354,791	26,353	78,924	91,503
May 2017
High	$17.490	$16.620	$17.150	$16.590	$17.160	$17.530	$18.250	$18.100	$17.290	$24.700	$23.000
Low	$16.400	$15.940	$16.330	$15.440	$16.280	$16.220	$15.750	$16.700	$16.200	$24.000	$21.650
Volume	143,315	69,892	70,981	97,451	37,310	630,355	13,008	74,753	15,220	297,643	104,039
June 2017
High	$17.280	$16.850	$17.300	$16.680	$17.250	$17.670	$16.590	$18.500	$17.990	$25.180	$23.480
Low	$16.200	$15.890	$16.110	$15.830	$16.200	$15.990	$15.500	$16.790	$16.050	$23.500	$20.840
Volume	69,331	79,213	246,397	205,460	87,049	512,731	71,570	123,572	76,171	83,312	88,167
July 2017
High	$18.000	$17.600	$18.430	$17.360	$18.530	$18.680	$18.000	$19.200	$18.300	$25.000	$23.680
Low	$17.020	$16.810	$17.270	$16.510	$17.380	$17.430	$16.670	$18.000	$17.510	$24.600	$23.230
Volume	64,855	34,930	115,915	121,661	16,597	685,618	142,290	60,527	31,270	204,706	47,373
August 2017
High	$17.900	$17.550	$18.610	$17.390	$18.600	$18.680	$18.000	$19.500	$18.610	$24.840	$23.680
Low	$17.480	$17.220	$17.800	$16.900	$17.880	$17.950	$17.000	$18.430	$17.770	$24.150	$22.500
Volume	71,422	28,727	68,919	66,355	97,225	323,667	125,996	117,310	71,058	157,020	70,256
September 2017
High	$18.320	$17.730	$18.770	$17.560	$18.790	$18.350	$18.020	$19.100	$18.580	$24.680	$23.400
Low	$17.660	$17.150	$18.230	$17.050	$18.310	$18.000	$17.290	$18.270	$18.250	$24.300	$22.910
Volume	120,995	41,867	24,831	98,068	190,019	448,893	51,409	84,494	11,670	125,854	89,211
October 2017
High	$19.000	$18.360	$19.760	$18.000	$19.720	$18.790	$18.110	$19.750	$19.200	$25.160	$24.000
Low	$18.200	$17.470	$18.780	$17.350	$18.690	$18.240	$17.600	$18.910	$18.600	$24.610	$23.370
Volume	34,264	28,186	191,785	127,669	78,340	331,656	29,555	60,897	22,714	159,930	258,649
November 2017
High	$19.490	$18.640	$20.240	$18.630	$20.240	$19.140	$18.310	$20.000	$19.580	$25.520	$24.400
Low	$18.700	$17.900	$19.170	$17.810	$19.130	$18.510	$17.800	$19.360	$19.040	$25.100	$23.760
Volume	33,932	156,863	180,321	50,222	146,287	809,046	22,505	257,363	11,932	46,525	173,937
December 2017
High	$19.440	$18.710	$20.360	$18.710	$20.390	$18.640	$17.900	$19.460	$19.550	$25.460	$24.150
Low	$18.810	$18.170	$19.620	$18.100	$19.600	$17.910	$17.220	$18.000	$19.350	$24.620	$23.350
Volume	48,717	178,957	230,020	50,165	129,855	323,819	52,369	79,157	71,071	61,019	87,968

		BCE Inc.     2017 ANNUAL INFORMATION FORM     25
6	Dividends and dividend payout policy

6 Dividends and dividend payout policy

The board of directors of BCE reviews from time to time the adequacy of BCE’s common share dividend payout policy. BCE’s common share dividend payout policy is currently set to a target dividend payout ratio⁽¹⁾ of 65% to 75% of free cash flow⁽¹⁾. Our objective is to seek to achieve dividend growth while maintaining our dividend payout ratio within the target range and while balancing our strategic business priorities, including continuing to invest in strategic wireline and wireless network infrastructure and maintaining investment-grade credit ratings. For additional information, refer to section 1.4, Capital markets strategy of the BCE 2017 MD&A, on pages 35 to 37 of the BCE 2017 Annual Report.

BCE’s dividend payout policy and the declaration of dividends are subject to the discretion of BCE’s board of directors and, consequently, there can be no guarantee that BCE’s dividend payout policy will be maintained or that dividends will be declared.

The table below describes the increases in BCE’s common share dividend starting with the quarterly dividend payable on April 15, 2015.

DATE OF ANNOUNCEMENT	AMOUNT OF INCREASE	EFFECTIVE DATE
February 4, 2016	5.0% (from $2.60 per share to $2.73 per share)	Quarterly dividend payable on April 15, 2016
February 2, 2017	5.1% (from $2.73 per share to $2.87 per share)	Quarterly dividend payable on April 15, 2017
February 8, 2018	5.2% (from $2.87 per share to $3.02 per share)	Quarterly dividend payable on April 15, 2018

Dividends on BCE’s first preferred shares are, if declared, payable quarterly, except for dividends on Series S, Series Y, Series AB, Series AD, Series AE, Series AH and Series AJ first preferred shares, which, if declared, are payable monthly.

The table below shows the amount of cash dividends declared per BCE common share and per Series R, Series S, Series T, Series Y, Series Z, Series AA, Series AB, Series AC, Series AD, Series AE, Series AF, Series AG, Series AH, Series AI, Series AJ, Series AK, Series AL, Series AM, Series AN, Series AO and Series AQ first preferred share for 2017, 2016 and 2015.

	2017	2016	2015
Common shares	$2.87	$2.73	$2.60
First preferred shares
Series R	$1.0325	$1.0325	$1.10
Series S	$0.73681	$0.675	$0.69216
Series T	$0.75475	$0.824875	$0.84825
Series Y	$0.73681	$0.675	$0.69216
Series Z	$0.835	$0.788	$0.788
Series AA	$0.88251	$0.8625	$0.8625
Series AB	$0.73681	$0.675	$0.69216
Series AC	$0.88752	$0.88752	$0.88752
Series AD	$0.73681	$0.675	$0.69216
Series AE	$0.73681	$0.675	$0.69216
Series AF	$0.7775	$0.7775	$0.7775
Series AG	$0.70	$0.80625	$1.125
Series AH	$0.73681	$0.675	$0.69216
Series AI	$0.6875	$0.8625	$1.0375
Series AJ	$0.73681	$0.675	$0.69216
Series AK	$0.7385	$1.03752	$1.03752
Series AL	$0.61139	–	–
Series AM	$0.691	$0.821375	$1.2125
Series AN	$0.68625	$0.48868	–
Series AO	$1.083125	$1.1375	$1.1375
Series AQ	$1.0625	$1.061	$1.0625

(1) The terms free cash flow and dividend payout ratio 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. We define free cash flow as cash flows from operating activities, excluding acquisition and other costs paid (which include significant litigation costs) and voluntary pension funding, less capital expenditures, preferred share dividends and dividends paid by subsidiaries to non-controlling interest. We exclude acquisition and other costs paid and voluntary pension funding because they affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. Excluding these items does not imply they are non-recurring. We consider free cash flow to be an important indicator of the financial strength and performance of our businesses because it shows how much cash is available to pay dividends, repay debt and reinvest in our company. We believe that certain investors and analysts use free cash flow to value a business and its underlying assets and to evaluate the financial strength and performance of our businesses. The most comparable IFRS financial measure is cash flows from operating activities. We define dividend payout ratio as dividends paid on common shares divided by free cash flow. We consider dividend payout ratio to be an important indicator of the financial strength and performance of our businesses because it shows the sustainability of the company’s dividend payments.

26     BCE Inc.     2017 ANNUAL INFORMATION FORM
	7	Our directors and executive officers

7 Our directors and executive officers 

7.1 Directors

The table below lists BCE’s directors, where they lived, the date they were elected or appointed and their principal occupation on March 8, 2018.

Under BCE’s by-laws, each director holds office until the earlier of the next annual shareholder meeting or his or her resignation.

DIRECTORS
NAME, PROVINCE/STATE	DATE ELECTED OR APPOINTED
AND COUNTRY OF RESIDENCE	TO THE BCE BOARD	PRINCIPAL OCCUPATION ON MARCH 8, 2018
Barry K. Allen, Florida, United States	May 2009	Operating Partner, Providence Equity Partners LLC (a private equity firm focused on media, entertainment, communications and information investments), since September 2007
Sophie Brochu, Québec, Canada	May 2010	President and Chief Executive Officer, Énergir (a diversified energy company), since February 2007
Robert E. Brown, Québec, Canada	May 2009	Corporate director, since October 2009
George A. Cope, Ontario, Canada	July 2008	President and Chief Executive Officer, BCE and Bell Canada, since July 2008
David F. Denison, FCPA, FCA, Ontario, Canada	October 2012	Corporate director, since June 2012, and Chartered Professional Accountant
Robert P. Dexter, Nova Scotia, Canada	November 2014	Chair and Chief Executive Officer of Maritime Travel Inc. (an integrated travel company), since July 1979
Ian Greenberg, Québec, Canada	July 2013	Corporate director, since July 2013
Katherine Lee, Ontario, Canada	August 2015	Chief Executive Officer of 3 Angels Holdings Limited (a real estate holding company), since April 2016, and Chartered Professional Accountant
Monique F. Leroux, FCPA, FCA, Québec, Canada	April 2016	Corporate director, since April 2016, and Chartered Professional Accountant
Gordon M. Nixon, Ontario, Canada	November 2014	Chair of the board of directors, BCE and Bell Canada, since April 2016, and corporate director, since September 2014
Calin Rovinescu, Québec, Canada	April 2016	President and Chief Executive Officer, Air Canada (an airline company), since April 2009
Karen Sheriff, Ontario, Canada	April 2017	Corporate director, since October 2016
Robert C. Simmonds, Ontario, Canada	May 2011	Chair, Lenbrook Corporation (a national distributor of electronics components and radio products), since April 2002
Paul R. Weiss, FCPA, FCA, Ontario, Canada	May 2009	Corporate director, since April 2008, and Chartered Professional Accountant

PAST OCCUPATION

All of BCE’s directors have held the positions listed above or other executive positions with the same or associated firms or organizations during the past five years or longer, except for the directors listed below.

DIRECTORS	PAST OCCUPATION
Ian Greenberg	President and Chief Executive Officer of Astral Media Inc. (a media company), from 1995 to July 2013
Katherine Lee	President and Chief Executive Officer of GE Capital Canada (a leading global provider of financial and fleet management solutions to mid-market companies operating in a broad range of economic sectors), from 2010 to February 2015
Monique F. Leroux, FCPA, FCA	Chair, President and Chief Executive Officer of Desjardins Group (the leading cooperative financial group in Canada), from 2008 to April 2016
Gordon M. Nixon	President and Chief Executive Officer of Royal Bank of Canada (a chartered bank), from 2001 to August 2014

		BCE Inc.     2017 ANNUAL INFORMATION FORM     27
7	Our directors and executive officers

COMMITTEES OF THE BOARD

The table below lists the committees of BCE’s board of directors and their members on March 8, 2018.

COMMITTEES	MEMBERS
Audit	Paul R. Weiss (Chair) David F. Denison, Robert P. Dexter, Ian Greenberg, Katherine Lee, Monique F. Leroux, Robert C. Simmonds
Corporate Governance	Barry K. Allen (Chair) Sophie Brochu, Robert E. Brown, Monique F. Leroux, Robert C. Simmonds
Management Resources and Compensation	Robert E. Brown (Chair) Barry K. Allen, Sophie Brochu, Ian Greenberg, Calin Rovinescu
Pension Fund	David F. Denison (Chair) Robert P. Dexter, Katherine Lee, Calin Rovinescu, Karen Sheriff, Paul R. Weiss

7.2 Executive officers

The table below lists BCE’s and Bell Canada’s executive officers, where they lived and the office they held at BCE and/or Bell Canada on March 8, 2018.

NAME	PROVINCE AND COUNTRY OF RESIDENCE	OFFICE HELD AT BCE/BELL CANADA
Mirko Bibic	Ontario, Canada	Chief Legal & Regulatory Officer and Executive Vice-President – Corporate Development (BCE and Bell Canada)
Charles W. Brown	Ontario, Canada	President – The Source (Bell Canada)
Michael Cole	Ontario, Canada	Executive Vice-President and Chief Information Officer (Bell Canada)
George A. Cope	Ontario, Canada	President and Chief Executive Officer (BCE and Bell Canada)
Stephen Howe	Ontario, Canada	Executive Vice-President and Chief Technology Officer (Bell Canada)
Rizwan Jamal	Ontario, Canada	President – Bell Residential & Small Business (Bell Canada)
Blaik Kirby	Ontario, Canada	President – Bell Mobility (Bell Canada)
Glen LeBlanc	Nova Scotia, Canada	Executive Vice-President and Chief Financial Officer (BCE and Bell Canada)
Bernard le Duc	Ontario, Canada	Executive Vice-President – Corporate Services (BCE and Bell Canada)
Randy Lennox	Ontario, Canada	President – Bell Media (Bell Canada)
Thomas Little	Ontario, Canada	President – Bell Business Markets (Bell Canada)
Wade Oosterman	Ontario, Canada	Group President (BCE and Bell Canada)
Martine Turcotte	Québec, Canada	Vice Chair – Québec (BCE and Bell Canada)
John Watson	Ontario, Canada	Executive Vice-President – Customer Experience (Bell Canada)

PAST OCCUPATION

All of our executive officers have held their present positions or other executive positions with BCE or Bell Canada during the past five years or longer, except for:

NAME	PAST OCCUPATION
Glen LeBlanc	Executive Vice-President and Chief Financial Officer of Bell Aliant Inc. from 2010 to December 2014
Randy Lennox	President and Chief Executive Officer of Universal Music Canada from 1998 to August 2015

7.3 Directors’ and executive officers’ share ownership

As at December 31, 2017, BCE’s directors and executive officers as a group beneficially owned, or exercised control or direction over, directly or indirectly, 616,446 common shares (or less than 0.1%) of BCE.

28     BCE Inc.     2017 ANNUAL INFORMATION FORM
	8	Legal proceedings

8 Legal proceedings

In the ordinary course of our business, we become involved in various claims and legal proceedings seeking monetary damages and other relief. In particular, because of the nature of our consumer-facing business, we are exposed to class actions pursuant to which substantial monetary damages may be claimed. This section describes important legal proceedings in which we were involved as at March 8, 2018. This list is not comprehensive and we are involved in a number of other legal proceedings. Due to the inherent risks and uncertainties of the litigation process, we cannot predict the final outcome or timing of claims and legal proceedings. Subject to the foregoing, and based on information currently available and management’s assessment of the merits of the claims and legal proceedings pending at March 8, 2018, management believes that the ultimate resolution of these claims and legal proceedings is unlikely to have a material and negative effect on our financial statements or operations. We believe that we have strong defences and we intend to vigorously defend our positions.

PURPORTED CLASS ACTION CONCERNING INDEXATION RATE OF PENSION PAYMENTS

On January 16, 2018, a statement of claim was filed in the Ontario Superior Court against Bell Canada, Bell Mobility, Bell Media and Expertech Network Installation Inc. alleging that the indexation rate under the Bell Canada Pension Plan was not properly calculated for the year 2017. The action seeks to certify a class action consisting of all persons, wherever resident, who are or were members of the Bell Canada Pension Plan, or otherwise entitled to benefits thereunder, and were entitled to receive indexed pension payments as of January 1, 2017, together with the spouses, estates, heirs, beneficiaries, and representatives of those who died. The action seeks damages in the amount of $150 million or any greater amount determined by the court, for breach of contract under the Bell Canada Pension Plan, as well as for breach of fiduciary and trust duties under the Pension Benefits Standards Act of 1985.

PURPORTED CLASS ACTION CONCERNING PROMOTIONAL PRICING

On July 4, 2016, an application for authorization to institute a class action was filed in the Québec Superior Court against Bell Canada and 23 other defendants (including telecommunications companies, banks and other service providers) on behalf of all customers in Québec who, since July 4, 2013, were provided a service either for free or at a discounted price for a fixed period of time, after which a regular price applied unless the customers sent a notice indicating that they did not wish to obtain the service at the regular price (regardless of the disclosure made to customers of the temporary nature of the free or discounted period). The plaintiff alleges that such practice violates the Québec Consumer Protection Act. The action seeks unspecified compensatory damages as well as punitive damages. The action has not yet been authorized as a class action.

PATENT INFRINGEMENT LAWSUIT CONCERNING 4G LTE WIRELESS COMMUNICATIONS SYSTEMS

On February 18, 2016, a claim was filed in the Federal Court against Bell Canada and BCE Inc. by Wi-LAN Inc. The claim alleges that the defendants, by making, using and selling 4G LTE wireless communications systems, including wireless products and services, infringe three patents owned by Wi-LAN Inc. This claim seeks declaratory and injunctive relief as well as unspecified damages or an accounting of profits. On June 9, 2016, the claim was amended to remove Bell Canada and BCE Inc. as defendants and add Bell Mobility as the sole defendant. The defendant intends to exercise all available indemnity recourses from third parties that provide the intellectual property upon which the defendant’s wireless communications systems are based.

CLASS ACTION CONCERNING SERVICE FEE MODIFICATIONS

On November 27, 2015, an application for authorization to institute a class action was filed in the Québec Superior Court against Bell Canada, Bell ExpressVu and Bell Mobility on behalf of all consumers whose monthly fees for wireline telephone services, Internet services, Fibe TV services, satellite TV services or wireless postpaid services were unilaterally modified at any time since November 2012. The plaintiff alleges that the notices provided by the defendants of the price increases or reductions of the bundle discount were not compliant under the Québec Consumer Protection Act. The action seeks the reimbursement, since November 2012, of the monthly price increases and/or reductions of the bundle discount, and payment of punitive damages in the amount of $100 per class member. On July 10, 2017, the court authorized the action to proceed as a class action.

PURPORTED CLASS ACTION CONCERNING RELEVANT ADVERTISEMENTS INITIATIVE

On April 14 and 16, 2015, respectively, an application for authorization to institute a class action was filed against Bell Canada and Bell Mobility in the Québec Superior Court and a statement of claim was filed against Bell Canada and Bell Mobility pursuant to the Class Proceedings Act (Ontario) in the Ontario Superior Court (collectively, the Actions). Together, the Actions seek to certify a national class consisting of Bell Mobility customers who subscribed to mobile data services between November 16, 2013 and April 13, 2015. The plaintiffs seek damages for breach of contract, breach of the Telecommunications Act, breach of the Québec Consumer Protection Act, intrusion upon seclusion and waiver of tort resulting from Bell Canada’s and Bell Mobility’s alleged unauthorized use and disclosure of personal information pursuant to their “Relevant Advertisements Initiative”. Unspecified punitive damages are also sought in the Québec action. On November 16, 2017, the court stayed the Québec action. The Actions have not yet been certified as class actions.

		BCE Inc.     2017 ANNUAL INFORMATION FORM     29
8	Legal proceedings

PURPORTED CLASS ACTION CONCERNING CELLULAR USAGE AND HEALTH RISK

In July 2013, BCE Inc., Bell Canada, Bell Mobility and Bell Aliant Inc. (subsequently replaced by Bell Aliant LP and now Bell Mobility as successor to the Bell Aliant LP wireless business) were served with a statement of claim previously filed pursuant to the Class Proceedings Act (British Columbia) in the Supreme Court of British Columbia. The action was brought against more than 25 defendants, including wireless carriers and device manufacturers, and seeks certification of a national class encompassing all persons in Canada, including their estates and spouses, who have used cellular phones next to their heads for a total of at least 1,600 hours. The action also seeks certification of a subclass of such persons who have been diagnosed with a brain tumour (as well as their estates and spouses). The statement of claim alleges that the defendants that are wireless carriers are liable to the purported class on the basis of, among other things, negligence in the design and testing of cellular phones, failure to warn about the health risks associated with cellular phones, negligent misrepresentation, deceit, breach of warranty and breach of competition, consumer protection and trade practices legislation. The plaintiffs seek unspecified damages, including reimbursement of defendants’ revenue earned from selling cellular phones to class members, and punitive damages. The lawsuit has not yet been certified as a class action. On September 3, 2014, the Supreme Court of British Columbia ordered the removal of BCE Inc. and Bell Canada as defendants.

IP INFRINGEMENT LAWSUITS CONCERNING IPTV SYSTEMS

On April 23, 2013, a claim was filed in the Federal Court against Bell Canada and Bell Aliant LP (now Bell Canada) by Mediatube Corp. and NorthVu Inc. The claim alleges that the defendants, through their development and use of IPTV systems, infringed on a patent owned by NorthVu Inc. and licensed to Mediatube Corp. In addition to declaratory and injunctive relief, the plaintiffs seek damages in the form of unpaid royalties in relation to the defendants’ revenues from their IPTV services (the plaintiffs estimate that the monetary value of these royalties exceed $350 million) or an accounting of the defendants’ profits, as well as punitive damages. On January 4, 2017, the Federal Court dismissed the action on the basis that Bell Canada did not infringe the patent and that the claims of punitive damages were without merit. On February 3, 2017, the plaintiffs appealed the decision, which appeal is scheduled to be heard by the Federal Court of Appeal on May 20, 2018. Plaintiff NorthVu Inc. discontinued its appeal, leaving Mediatube Corp. as the sole appellant. Bell Canada intends to exercise all available indemnity recourses from third parties that provide the intellectual property upon which its IPTV services are based.

On April 2, 2014, a claim was filed in the Federal Court against Bell Canada, Bell Aliant LP (now Bell Canada) and TELUS Communications Company by Two-Way Media Ltd. The claim alleged that the defendants, by making, constructing, using and selling their IPTV systems, infringed on patents owned by Two-Way Media Ltd. In addition to declaratory and injunctive relief, the plaintiffs sought unspecified damages or an accounting of the defendants’ profits, as well as punitive damages. Bell Canada exercised all available indemnity recourses from third parties that provide the intellectual property upon which its IPTV services are based. In October 2014, the defendants filed a counterclaim seeking a declaration that the patents of Two-Way Media Ltd. are invalid. On April 7, 2017, an out-of-court settlement was entered into.

On January 19, 2018, a claim was filed in the Federal Court against BCE Inc., Bell Canada, Bell Aliant Regional Communications Inc., Bell MTS Inc., and Northerntel L.P. by Rovi Guides, Inc. and Tivo Solutions Inc. Separate and similar actions have been filed by the same plaintiffs against other Canadian telecommunications and cable companies. The claim alleges that the defendants, through their manufacture, distribution, sale and use of certain features of their IPTV systems, have infringed six patents variously owned by the defendants. The claim also alleges that the defendants have, through their marketing and customer support activities, induced users to infringe the patents. In addition to declaratory and injunctive relief, the plaintiffs seek damages in the form of unpaid royalties in relation to the defendants’ revenues from their IPTV services or an accounting of the defendants’ profits. Bell Canada intends to exercise all available indemnity recourses from third parties that provide the intellectual property upon which its IPTV services are based.

CLASS ACTIONS CONCERNING INCREASE TO LATE PAYMENT CHARGES

On October 28, 2010, an application for authorization to institute a class action was filed in the Québec Superior Court against Bell Canada and Bell Mobility on behalf of all physical persons and companies of 50 employees or less in Canada who were billed late payment charges since June 2010. The plaintiffs allege that the increase by Bell Canada and Bell Mobility of the late payment charge imposed on customers who fail to pay their invoices by the due date from 2% to 3% per month is invalid. The action seeks an order requiring Bell Canada and Bell Mobility to repay all late payment charges in excess of 2% per month to the members of the class. In addition to the reimbursement of such amounts, the action also seeks payment of general and punitive damages by Bell Canada and Bell Mobility. On December 16, 2011, the court authorized the action but limited the class members to residents of the province of Québec with respect to home phone, wireless and Internet services.

On January 10, 2012, another application for the authorization to institute an identical class action was filed in the Québec Superior Court against Bell ExpressVu with respect to TV services, later amended to add Bell Canada as defendant. On December 19, 2014, the court authorized the action to proceed as a class action.

30     BCE Inc.     2017 ANNUAL INFORMATION FORM
	8	Legal proceedings

CLASS ACTIONS CONCERNING ROUNDING-UP OF MINUTES

On July 25, 2008, a class action was filed against BCE Inc. in the Ontario Superior Court of Justice on behalf of all its residential long distance customers in Canada who, since July 2002, have had their call times rounded up to the next full minute for billing purposes (the First Rounding-Up Action). On August 18, 2008, a similar class action (the Second Rounding-Up Action) was filed against Bell Mobility in the same court on behalf of all Canadian Bell Mobility customers who, since July 2002, have had their wireless airtime rounded up to the next full minute. Both actions allege that BCE Inc. and Bell Mobility misrepresented and did not disclose that they round up to the next full minute when calculating long distance call time or wireless airtime. The class actions seek reimbursement of all amounts received by BCE Inc. and Bell Mobility as a result of the rounded-up portion of per minute charges for residential long distance calls and wireless airtime. Each action originally claimed general damages of $20 million, costs of $1 million for administering the distribution of damages and $5 million in punitive damages.

On January 15, 2014, the Second Rounding-Up Action was amended to include an allegation of breach of contract and to increase claimed general damages to $500 million and claimed punitive damages to $20 million, without setting out the basis for the increases. The Second Rounding-Up Action was certified by the court on November 25, 2014.

The First Rounding-Up Action has not yet been certified as a class action.

PURPORTED CLASS ACTION CONCERNING 911 FEES

On June 26, 2008, a statement of claim was filed under The Class Actions Act (Saskatchewan) in the Saskatchewan Court of Queen’s Bench against a number of communications service providers, including Bell Mobility and Bell Aliant LP (now Bell Mobility as successor to the Bell Aliant LP wireless business), on behalf of certain alleged customers. The action also named BCE Inc. and Bell Canada as defendants. The statement of claim alleges, among other things, breach of contract and duty to inform, deceit, misrepresentation and collusion in connection with certain “911 fees” invoiced by communications service providers to their customers. The plaintiffs seek unspecified damages and punitive damages and an accounting and constructive trust of the “911 fees” collected. The action seeks certification of a national class encompassing all customers of communications service providers wherever resident in Canada. On July 22, 2013, the plaintiffs delivered an amended statement of claim which removed BCE Inc. and Bell Canada as defendants, and added claims for unjust enrichment and breaches of provincial consumer protection legislation and the Competition Act. The lawsuit has not yet been certified as a class action.

CLASS ACTION CONCERNING WIRELESS SYSTEM ACCESS FEES

On August 9, 2004, a statement of claim was filed under The Class Actions Act (Saskatchewan) in the Saskatchewan Court of Queen’s Bench against a number of wireless service providers, including Bell Mobility and Bell Aliant LP (now Bell Mobility as successor to the Bell Aliant LP wireless business), on behalf of certain alleged customers. This statement of claim alleges, among other things, breach of contract and duty to inform, deceit, misrepresentation, unjust enrichment and collusion in connection with certain system access fees and system licensing charges invoiced by wireless communications service providers to their customers. The plaintiffs are seeking unspecified general and punitive damages. On September 17, 2007, the court granted certification, on the grounds of unjust enrichment only, of a national class encompassing all customers of the defendant wireless service providers wherever resident in Canada, on the basis of an opt-out class in Saskatchewan and an opt-in class elsewhere in Canada.

OTHER

We are subject to other claims and legal proceedings in the ordinary course of our current and past operations, including class actions, employment-related disputes, contract disputes and customer disputes. In some claims and legal proceedings, the claimant seeks damages as well as other relief which, if granted, could require substantial expenditures on our part or could result in changes to our business practices.

								BCE Inc.     2017 ANNUAL INFORMATION FORM     31
9	Interest of management and others in material transactions	10	Interest of experts	11	Transfer agent and registrar	12	For more information

9 Interest of management and others in material transactions

To the best of our knowledge, there were no current or nominated directors or executive officers or any associate or affiliate of a current or nominated director or executive officer with a material interest in any transaction within the three most recently completed financial years or during the current financial year that has materially affected us or is reasonably expected to materially affect us.

10 Interest of experts

Deloitte LLP prepared the Report of independent registered public accounting firm in respect of our audited consolidated financial statements and the Report of independent registered public accounting firm in respect of our internal control over financial reporting. Deloitte LLP is independent of BCE within the meaning of the Code of Ethics of the Ordre des comptables professionnels agréés du Québec and the rules and standards of the Public Company Accounting Oversight Board (PCAOB) (U.S.), as well as the securities laws and regulations administered by the U.S. Securities and Exchange Commission.

11 Transfer agent and registrar

The transfer agent and registrar for the common shares and preferred shares of BCE in Canada is AST Trust Company (Canada) at its principal offices in Montréal, Québec; Toronto, Ontario; Calgary, Alberta; and Vancouver, British Columbia; and in the U.S. is American Stock Transfer & Trust Company, LLC at its principal office in Brooklyn, New York.

The register for Bell Canada’s debentures and Bell Canada’s subordinated debentures is kept at the principal office of CIBC Mellon Trust Company (CIBC Mellon), through BNY Trust Company of Canada (BNY) acting as attorney, in Montréal, and facilities for registration, exchange and transfer of the debentures are maintained at the principal offices of CIBC Mellon, through BNY acting as attorney, in Montréal and Toronto.

The register for Bell MTS’ notes assumed by Bell Canada is kept at the principal office of Computershare Trust Company of Canada (Computershare) in Montréal, and facilities for registration, exchange and transfer of the notes are maintained at Computershare’s offices in Montréal, Toronto and Calgary.

12 For more information

This Annual Information Form as well as BCE’s annual and quarterly reports and news releases are available on BCE’s website at BCE.ca.

Additional information, including information about directors’ and officers’ remuneration and securities authorized for issuance under equity compensation plans, is contained in BCE’s management proxy circular for its most recent annual meeting of security holders that involved the election of directors.

Additional information relating to BCE is available on SEDAR at sedar.com and on EDGAR at sec.gov. Additional financial information is provided in BCE’s audited consolidated financial statements and the related management’s discussion and analysis for BCE’s most recently completed financial year, contained in the BCE 2017 Annual Report. You may ask for a copy of the annual and quarterly management’s discussion and analysis of BCE by contacting the Investor Relations group of BCE at Building A, 8th Floor, 1, Carrefour Alexander-Graham-Bell, Verdun, Québec H3E 3B3 or by sending an e-mail to investor.relations@bce.ca.

Shareholder inquiries 1-800-561-0934

Investor relations 1-800-339-6353

32     BCE Inc.     2017 ANNUAL INFORMATION FORM
	13	Schedule 1 – Audit Committee information

13 Schedule 1 – Audit Committee information

The purpose of BCE’s Audit Committee (Audit Committee) is to assist the board of directors in its oversight of:

• the integrity of BCE’s financial statements and related information
• BCE’s compliance with applicable legal and regulatory requirements
• the independence, qualifications and appointment of the external auditors
• the performance of both the external and internal auditors
• BCE management’s responsibility for assessing and reporting on the effectiveness of internal controls
• BCE’s enterprise risk management processes

MEMBERS’ FINANCIAL LITERACY, EXPERTISE AND SIMULTANEOUS SERVICE

Under the Sarbanes-Oxley Act of 2002 and related U.S. Securities and Exchange Commission rules, BCE is required to disclose whether its Audit Committee members include at least one “audit committee financial expert” as defined by these rules. In addition, National Instrument 52-110 – Audit Committees and the NYSE governance rules followed by BCE require that all audit committee members be “financially literate” and “independent”.

The BCE board of directors has determined that all the members of the Audit Committee during 2017 were, and all current members of the Audit Committee are, financially literate and independent, and that the current Chair of the Audit Committee, Mr. P.R. Weiss, and Mr. D.F. Denison, Ms. K. Lee and Ms. M.F. Leroux are qualified as “audit committee financial experts”. The table below outlines the relevant education and experience of all members of the Audit Committee, whether during 2017 or currently.

RELEVANT EDUCATION AND EXPERIENCE

P.R. Weiss, FCPA, FCA (Chair)	Mr. Weiss has been a director of BCE since May 2009 and became Chair of the Audit Committee on May 7, 2009. Mr. Weiss is a director and audit committee Chair at Torstar Corporation and a member of the board of trustees and audit committee Chair of Choice Properties REIT. He was a director and audit committee member of The Empire Life Insurance Company until May 2014 and was a director and audit committee member of ING Bank of Canada until November 2012. He is a past Chair of Soulpepper Theatre Company and of Toronto Rehab Foundation. For over 40 years, until his retirement in 2008, he was with KPMG LLP (an accounting firm). He served as Managing Partner of the Canadian Audit Practice, a member of KPMG Canada’s management committee and a member of the International Global Audit Steering Group. Mr. Weiss holds a Bachelor of Commerce degree from Carleton University. He is a Chartered Professional Accountant and a Fellow of CPA Ontario.
D.F. Denison, FCPA, FCA	Mr. Denison has been a director of BCE since October 2012. Mr. Denison is a corporate director with extensive experience in the financial services industry. He served as President and Chief Executive Officer of the Canada Pension Plan Investment Board from 2005 to 2012. Prior to that, Mr. Denison was President of Fidelity Investments Canada Limited (a financial services provider). He has also held a number of senior positions in the investment banking, asset management and consulting sectors in Canada, the U.S. and Europe. Mr. Denison serves as a member of the Investment Board and International Advisory Committee of the Government of Singapore Investment Corporation, the China Investment Corporation International Advisory Council and co-chairs the University of Toronto Investment Committee. He is a director of Royal Bank of Canada, and is Chair of Hydro One Limited. Mr. Denison earned bachelor’s degrees in Mathematics and Education from the University of Toronto, is a Chartered Professional Accountant and a Fellow of CPA Ontario. He was named an Officer of the Order of Canada in 2014 and received an honourary Doctor of Laws degree from York University in 2016.
R.P. Dexter	Mr. Dexter has been a director of BCE since November 2014. He is Chairman and Chief Executive Officer of Maritime Travel Inc. (an integrated travel company) since 1979. He holds both a bachelor’s degree in Commerce and a bachelor’s degree in Law from Dalhousie University and was appointed Queen’s Counsel in 1995. Mr. Dexter has over 20 years of experience in the communications sector, having served as a director of Maritime Tel & Tel Limited from 1997 to 1999 prior to joining the Aliant, and later the Bell Aliant boards until October 2014. He is also a counsel to the law firm Stewart McKelvey and Chairman of Sobeys Inc. and Empire Company Limited from 2004 to 2016. Mr. Dexter is also a director of High Liner Foods Incorporated and Chairman of Wajax Corporation. He is a past audit committee member of each of these companies, as well as the audit committee of Bell Aliant.
I. Greenberg	Mr. Greenberg has been a director of BCE since July 2013. He is a corporate director and one of four brothers who founded Astral. From 1995 until July 2013, Mr. Greenberg was President and Chief Executive Officer of Astral. He is Chair of Cineplex Inc., a member of the Broadcasting Hall of Fame and a recipient of the prestigious Ted Rogers and Velma Rogers Graham Award for his unique contribution to the Canadian broadcasting system. With his brothers, he also received the Eleanor Roosevelt Humanities Award for their active support of numerous industry and charitable organizations. Mr. Greenberg was a member of the Canadian Council of Chief Executives and a governor of Montréal’s Jewish General Hospital.
K. Lee	Ms. Lee has been a director of BCE since August 2015 and is Chief Executive Officer of 3 Angels Holdings Limited, a real estate holding company, since April 2016. Ms. Lee served as President and Chief Executive Officer of GE Capital Canada from 2010 to February 2015. Prior to this role, Ms. Lee served as Chief Executive Officer of GE Capital Real Estate in Canada from 2002 to 2010, building it to a full debt and equity operating company. Ms. Lee joined GE in 1994, where she held a number of positions, including Director, Mergers & Acquisitions for GE Capital’s Pension Fund Advisory Services based in San Francisco, and Managing Director of GE Capital Real Estate Korea based in Seoul and Tokyo. Ms. Lee earned a Bachelor of Commerce degree from the University of Toronto. She is a Chartered Professional Accountant and Chartered Accountant. She is active in the community, championing women’s networks and Asia-Pacific forums. Ms. Lee is also a director of Colliers International Group Inc.

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13	Schedule 1 – Audit Committee information

M.F. Leroux, FCPA, FCA

Ms. Leroux is Chair of Investissement Quebec and a member of the Canada-U.S. Council for Advancement of Women Entrepreneurs and Business Leaders. She is also Strategic Advisor, Fiera Capital Corporation, and Vice-Chair (Canada) of the Trilateral Commission. Ms. Leroux was Chair, President and CEO of Desjardins Group (the leading cooperative financial group in Canada) from March 2008 to April 2016. Prior to that, Ms. Leroux was CFO of Desjardins, Senior Vice-President of Royal Bank of Canada, COO of Quebecor Inc. and Partner of EY Canada. She is a director of Lallemand Investments Inc. and the Rideau Hall Foundation. From 2015 to 2017, Ms. Leroux was President of the International Co-operative Alliance, a global organization representing co-operatives across 105 countries. In 2018, Ms. Leroux will co-Chair the B7 business summit in Quebec City. A Fellow of the Institute of Corporate Directors and a recipient of the Woodrow Wilson Award (U.S.) and of the Outstanding Achievement Award and Fellowship of the CPA Order. Ms. Leroux is a Member of the Order of Canada, an Officer of the Ordre national du Québec and a Chevalier of the Légion d’honneur (France). She received honourary doctorates from eight Canadian universities and is an “honourary citizen” of the City of Lévis. With a special interest for youth and education, Ms. Leroux lends her time and support to a host of not-for-profit organizations. In 2018, Ms. Leroux will be inducted in the Canadian Business Hall of Fame.

R.C. Simmonds

Mr. Simmonds has been a director of BCE since May 2011. He is a seasoned Canadian telecommunications executive who has served in public company roles from 1994 to 2006. From 1985 until 2000, he served as Chair of Clearnet Communications Inc., a Canadian wireless competitor that launched two all-new digital mobile networks. He became Chair of Lenbrook Corporation in 2002, having been a founder and director of the company since 1977. Internationally regarded as a leading wireless communications engineer and mobile spectrum authority, Mr. Simmonds has played a key role in the development of Canada’s mobile spectrum policies for more than 30 years. He is Chair of the Mobile and Personal Communications Committee of the Radio Advisory Board of Canada, a body that provides unbiased and technically expert advice to the federal Department of Innovation, Science and Economic Development, and is a past Chair of the Canadian Wireless Telecommunications Association. A laureate and member of Canada’s Telecommunications Hall of Fame and recipient of the Engineering Medal for Entrepreneurship from Professional Engineers Ontario, Mr. Simmonds earned a B.A.Sc. in Engineering Science (Electrical) at the University of Toronto. In October 2013, Mr. Simmonds became a Fellow of the Wireless World Research Forum (an organization dedicated to long-term research in the wireless industry) in recognition of his contribution to the industry.

The NYSE governance rules followed by BCE require that if an audit committee member serves simultaneously on the audit committee of more than three public companies, the board of directors must determine and disclose that this simultaneous service does not impair the ability of the member to effectively serve on the Audit Committee. In addition to serving on the BCE’s Audit Committee, Ms. Monique F. Leroux currently serves on the audit committee of three public companies, Alimentation Couche-Tard Inc., Michelin Group and S&P Global Inc. The Board has reviewed the Audit Committee service of Ms. Leroux and has concluded that these other activities do not impair her ability to effectively serve on the Audit Committee. This conclusion is based, on the following considerations among others:

• she is not involved in full time professional activities other than serving on various boards of directors and not-for-profit organizations
• she has extensive accounting and financial knowledge and experience, which serves the best interests of the corporation and assists the Audit Committee in the discharge of its duties
• she makes valuable contributions to the corporation’s Audit Committee, and
• she attended 100% of Board and committee meetings, including the Audit Committee, in 2017.

PRE-APPROVAL POLICIES AND PROCEDURES

BCE’s Auditor Independence Policy is a comprehensive policy governing all aspects of our relationship with the external auditors, including:

• establishing a process for determining whether various audit and other services provided by the external auditors affect their independence
• identifying the services that the external auditors may and may not provide to BCE and its subsidiaries
• pre-approving all services to be provided by the external auditors of BCE and its subsidiaries
• establishing a process outlining procedures when hiring current or former personnel of the external auditors in a financial oversight role to ensure auditor independence is maintained

In particular, the policy specifies that:

• the external auditors cannot be hired to provide any services falling within the prohibited services category, such as bookkeeping, financial information system design and implementation or legal services
• for all audit and non-audit services falling within the permitted services category (such as prospectus, due diligence and non-statutory audits), a request for approval must be submitted to the Audit Committee prior to engaging the external auditors
• specific permitted services, however, are pre-approved annually and quarterly by the Audit Committee and consequently only require approval by the Executive Vice-President and Chief Financial Officer prior to engaging the external auditors
• at each regularly scheduled Audit Committee meeting, a summary of all fees billed by the external auditors by type of service is presented. This summary includes the details of fees incurred within the pre-approval amounts.

The Auditor Independence Policy is available in the governance section of BCE’s website at BCE.ca.

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	13	Schedule 1 – Audit Committee information

EXTERNAL AUDITORS’ FEES

The table below shows the fees that BCE’s external auditors, Deloitte LLP, billed to BCE and its subsidiaries for various services in each of the past two fiscal years.

	2017	2016
	(IN $ MILLIONS)	(IN $ MILLIONS)
Audit fees (1)	10.8	8.8
Audit-related fees (2)	2.1	1.7
Tax fees (3)	0.5	0.5
All other fees (4)	0.0	0.1
Total (5)	13.4	11.1

(1)	These fees include professional services provided by the external auditors for statutory audits of the annual financial statements, the audit of the effectiveness of internal control over financial reporting, the review of interim financial reports, the review of financial accounting and reporting matters, the review of securities offering documents, other regulatory audits and filings and translation services.
(2)	These fees relate to non-statutory audits and due diligence procedures.
(3)	These fees include professional services for tax compliance, tax advice and assistance with tax audits.
(4)	These fees include any other fees for permitted services not included in any of the above-stated categories. In 2016, the fees are for a subscription to Bersin HR Management.
(5)	The amounts of $13.4 million for 2017 and $11.1 million for 2016 reflect fees billed in those fiscal years without taking into account the year to which those services relate. Total fees for services provided for each fiscal year amounted to $10.4 million in 2017 and $9.2 million in 2016.

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14	Schedule 2 – Audit Committee charter

14 Schedule 2 – Audit Committee charter

I.	Purpose
The purpose of the Audit Committee is to assist the Board of Directors in its oversight of:
A.	the integrity of the Corporation’s financial statements and related information;
B.	the Corporation’s compliance with applicable legal and regulatory requirements;
C.	the independence, qualifications and appointment of the shareholders’ auditor;
D.	the performance of the Corporation’s shareholders’ auditor and internal audit;
E.	management responsibility for assessing and reporting on the effectiveness of internal controls; and
F.	the Corporation’s enterprise risk management processes.
II.	Duties and responsibilities
The Audit Committee shall perform the functions customarily performed by audit committees and any other functions assigned by the Board of Directors. In particular, the Audit Committee shall have the following duties and responsibilities:
A.	Financial Reporting and Control
1.	On a periodic basis, review and discuss with management and the shareholders’ auditor the following:
	a.	major issues regarding accounting principles and financial statement presentation, including any significant changes in the Corporation’s selection or application of accounting principles, and issues as to the adequacy of the Corporation’s internal controls and any special audit steps adopted in light of material control deficiencies;
	b.	analyses prepared by management and/or the shareholders’ auditor setting forth significant financial reporting issues and judgements made in connection with the preparation of the financial statements, including the impact of selecting one of several generally accepted accounting principles (GAAP) on the financial statements when such a selection has been made in the current reporting period;
	c.	the effect of regulatory and accounting developments, as well as off-balance sheet arrangements, on the financial statements of the Corporation; and
	d.	the type and presentation of information to be included in earnings press releases (including any use of pro-forma or non-GAAP information).
2.	Meet to review and discuss with management and the shareholders’ auditor, report and, where appropriate, provide recommendations to the Board of Directors on the following prior to its public disclosure:
	a.	the Corporation’s annual and interim consolidated financial statements and the related “Management’s Discussion and Analysis”, Annual Information Forms, earnings press releases and earnings guidance provided to analysts and rating agencies and the integrity of the financial reporting of the Corporation;
		–	In addition to the role of the Audit Committee to make recommendations to the Board of Directors, where the members of the Audit Committee consider that it is appropriate and in the best interest of the Corporation, the Corporation’s interim consolidated financial statements and the related “Management’s Discussion and Analysis”, the interim earnings press releases and the earnings guidance, may also be approved on behalf of the Board of Directors by the Audit Committee, provided that such approval is subsequently reported to the Board of Directors at its next meeting;
	b.	any audit issues raised by the shareholders’ auditor and management’s response thereto, including any restrictions on the scope of the activities of the shareholders’ auditor or access to requested information and any significant disagreements with management.
3.	Review and discuss reports from the shareholders’ auditor on:
	a.	all critical accounting policies and practices used by the Corporation;
	b.	all material selections of accounting policies when there is a choice of policies available under GAAP that have been discussed with management, including the ramifications of the use of such alternative treatment and the alternative preferred by the shareholders’ auditor; and
	c.	other material written communications between the shareholders’ auditor and management, and discuss such communication with the shareholders’ auditor.

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	14	Schedule 2 – Audit Committee charter

B.	Oversight of the Shareholders’ Auditor
1.	Be directly responsible for the appointment, compensation, retention and oversight of the work of the shareholders’ auditor and any other auditor preparing or issuing an audit report or performing other audit services or attest services for the Corporation or any consolidated subsidiary of the Corporation, where required, and review, report and, where appropriate, provide recommendations to the Board of Directors on the appointment, terms and review of engagement, removal, independence and proposed fees of the shareholders’ auditor.
2.	Approve in advance all audit, review or attest engagement fees and terms for all audit, review or attest services to be provided by the shareholders’ auditor to the Corporation and any consolidated subsidiary and any other auditor preparing or issuing an audit report or performing other audit services or attest services for the Corporation or any consolidated subsidiary of the Corporation, where required.
3.	Pre-approve all engagements for permitted non-audit services provided by the shareholders’ auditor to the Corporation and any consolidated subsidiary and to this effect may establish policies and procedures for the engagement of the shareholders’ auditor to provide to the Corporation and any consolidated subsidiary permitted non-audit services, which shall include approval in advance by the Audit Committee of all audit/ review and permitted non-audit services to be provided by the shareholders’ auditor to the Corporation and any consolidated subsidiary.
4.	Delegate, if deemed appropriate, authority to one or more members of the Audit Committee to grant pre-approvals of audit, review and permitted non-audit services, provided that any such approvals shall be presented to the Audit Committee at its next scheduled meeting.
5.	Establish policies for the hiring of partners, employees and former partners and employees of the shareholders’ auditor.
6.	At least annually, consider, assess, and report to the Board of Directors on:
	a.	the independence, objectivity and professional skepticism of the shareholders’ auditor, including that the shareholders’ auditor’s performance of permitted non-audit services does not impair the shareholders’ auditor’s independence;
	b.	obtaining from the shareholders’ auditor a written statement (i) delineating all relationships between the shareholders’ auditor and the Corporation; (ii) assuring that lead audit partner rotation is carried out, as required by law; and (iii) delineating any other relationships that may adversely affect the independence of the shareholders’ auditor;
	c.	the quality of the engagement team including the evaluation of the lead audit partner, taking into account the opinions of management and internal audit; and
	d.	the quality of the communications and interactions with the external auditor.
7.	At least annually, obtain and review a report by the shareholders’ auditor describing:
	a.	the shareholders’ auditor’s internal quality-control procedures;
	b.	any material issues raised by the most recent internal quality-control review, or peer review of the shareholders’ auditor firm, or by any inquiry or investigation by governmental or professional authorities, issued in the reporting year, respecting one or more independent audits carried out by the shareholders’ auditor firm in Canada and the United States, limited to the Public Company Accounting Oversight Board, and any steps taken to deal with any such issues.
8.	At least every 5 years, unless the annual assessment indicates otherwise, conduct a comprehensive review of the shareholders’ auditor and report to the Board of Directors on:
	a.	the independence, objectivity and professional skepticism of the shareholders’ auditor;
	b.	the quality of the engagement team; and
	c.	the quality of communications and interactions with the shareholders’ auditor.
9.	Resolve any disagreement between management and the shareholders’ auditor regarding financial reporting.
10.	Review the annual audit plan with the shareholders’ auditor.
11.	Meet periodically with the shareholders’ auditor in the absence of management and internal audit.
C.	Oversight of Internal Audit
1.	Review and discuss with the head of internal audit, report and, where appropriate, provide recommendations to the Board of Directors on the following:
	a.	the appointment and mandate of internal audit, including the responsibilities, budget and staffing of internal audit;
	b.	discuss with the head of internal audit the scope and performance of internal audit, including a review of the annual internal audit plan, and whether there are any restrictions or limitations on internal audit; and
	c.	obtain periodic reports from the head of internal audit regarding internal audit findings, including those related to the Corporation’s internal controls, and the Corporation’s progress in remedying any audit findings.
2.	Meet periodically with the head of internal audit in the absence of management and the shareholders’ auditor.

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14	Schedule 2 – Audit Committee charter

D.	Oversight of the Corporation’s Internal Control System
1.	Review and discuss with management, the shareholders’ auditor and internal audit, monitor, report and, where appropriate, provide recommendations to the Board of Directors on the following:
	a.	the Corporation’s systems of internal controls over financial reporting;
	b.	compliance with the policies and practices of the Corporation relating to business ethics;
	c.	compliance by Directors, Officers and other management personnel with the Corporation’s Disclosure Policy; and
	d.	the relationship of the Audit Committee with other committees of the Board of Directors, management and the Corporation’s consolidated subsidiaries’ audit committees.
2.	Review and discuss with the Chief Executive Officer and Chief Financial Officer of the Corporation the process for the certifications to be provided in the Corporation’s public disclosure documents.
3.	Review, monitor, report, and, where appropriate, provide recommendations to the Board of Directors on the Corporation’s disclosure controls and procedures.
4.	Establish procedures for the receipt, retention, and treatment of complaints received by the Corporation regarding accounting, internal accounting controls or auditing matters, including procedures for confidential, anonymous submissions by employees regarding questionable accounting or auditing matters.
5.	Meet periodically with management in the absence of the shareholders’ auditor and internal audit.
E.	Oversight of the Corporation’s Risk Management
1.	Review, monitor, report and, where appropriate, provide recommendations to the Board of Directors on the following:
	a.	the Corporation’s processes for identifying, assessing, mitigating and, where required, reporting strategic, operational, regulatory and general risks exposures and the steps the Corporation has taken to monitor and control such exposures, including:
		–	the Corporation’s major financial risk exposures including fraud prevention;
		–	the Corporation’s major operational risk exposures including the Corporation’s business continuity plans, work stoppage and disaster recovery plans;
		–	the Corporation’s major vendor oversight risk exposures;
		–	the Corporation’s major security risks, including the physical, information and cyber security as well as security trends that may impact the Corporation’s operations and business; and
		–	the Corporation’s major legal obligation and compliance risks including regulatory, privacy and records management, environmental risks, and environment trends that may impact the Corporation’s operations and business.
2.	Review, monitor, report and, where appropriate, provide recommendations to the Board of Directors on the Corporation’s compliance with internal policies and the Corporation’s progress in remedying any material deficiencies related to:
	a.	security policies, including the physical safeguarding of corporate assets and security of networks and information systems; and
	b.	environmental policy and environmental management systems.
3.	When appropriate, ensure that the Corporation’s subsidiaries establish an environmental policy and environmental management systems, and review and report thereon to the Board of Directors.
F.	Journalistic Independence
1.	Consider and approve, on recommendation from the Chief Executive Officer, the appointment and termination of the President, CTV News.
2.	At least annually, obtain and review a report by the President, CTV News regarding compliance with the Corporation’s Journalistic Independence Policy.
G.	Compliance with Legal Requirements
1.	Review and discuss with management, the shareholders’ auditor and internal audit, monitor, report and, when appropriate, provide recommendation to the Board of Directors on the adequacy of the Corporation’s process for complying with laws and regulations.
2.	Receive, on a periodic basis, reports from the Corporation’s Chief Legal Officer, with respect to the Corporation’s pending or threatened material litigation.
III.	Evaluation of the audit committee and report to board of directors
A.	The Audit Committee shall evaluate and review with the Corporate Governance Committee of the Board of Directors, on an annual basis, the performance of the Audit Committee.
B.	The Audit Committee shall review and discuss with the Corporate Governance Committee of the Board of Directors, on an annual basis, the adequacy of the Audit Committee charter.
C.	The Audit Committee shall report to the Board of Directors periodically on the Audit Committee’s activities.

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	14	Schedule 2 – Audit Committee charter

IV.	Outside advisors
The Audit Committee shall have the authority to engage outside counsel and other outside advisors as it deems appropriate to assist the Audit Committee in the performance of its functions. The Corporation shall provide appropriate funding for such advisors as determined by the Audit Committee.
V.	Membership
The Audit Committee shall consist of such number of directors, in no event to be less than three, as the Board of Directors may from time to time by resolution determine. The members of the Audit Committee shall meet the independence, experience and other membership requirements under applicable laws, rules and regulations as determined by the Board of Directors.
VI.	Audit committee chair
The Chair of the Audit Committee shall be appointed by the Board of Directors. The Chair of the Audit Committee leads the Audit Committee in all aspects of its work and is responsible to effectively manage the affairs of the Audit Committee and ensure that it is properly organized and functions efficiently. More specifically, the Chair of the Audit Committee shall:
A.	Provide leadership to enable the Audit Committee to act effectively in carrying out its duties and responsibilities as described elsewhere in this charter and as otherwise may be appropriate;
B.	In consultation with the Board Chair and the Chief Executive Officer, ensure that there is an effective relationship between management and the members of the Audit Committee;
C.	Chair meetings of the Audit Committee;
D.	In consultation with the Chief Executive Officer, the Corporate Secretary’s Office and the Board Chair, determine the frequency, dates and locations of meetings of the Audit Committee;
E.	In consultation with the Chief Executive Officer, the Chief Financial Officer, the Corporate Secretary’s Office and, as required, other Officers, review the annual work plan and the meeting agendas to ensure all required business is brought before the Audit Committee to enable it to efficiently carry out its duties and responsibilities;
F.	Ensure, in consultation with the Board Chair, that all items requiring the Audit Committee’s approval are appropriately tabled;
G.	Ensure the proper flow of information to the Audit Committee and review, with the Chief Executive Officer, the Chief Financial Officer, the Corporate Secretary’s Office and, as required, other Officers, the adequacy and timing of materials in support of management’s proposals;
H.	Report to the Board of Directors on the matters reviewed by, and on any decisions or recommendations of, the Audit Committee at the next meeting of the Board of Directors following any meeting of the Audit Committee; and
I.	Carry out any special assignments or any functions as requested by the Board of Directors.
VII.	Term
The members of the Audit Committee shall be appointed or changed by resolution of the Board of Directors to hold office from the time of their appointment until the next annual general meeting of the shareholders or until their successors are so appointed.
VIII.	Procedures for meetings
The Audit Committee shall fix its own procedure at meetings and for the calling of meetings. The Audit Committee shall meet separately in executive session in the absence of management, internal audit and the shareholders’ auditor, at each regularly scheduled meeting.
IX.	Quorum and voting
Unless otherwise determined from time to time by resolution of the Board of Directors, two members of the Audit Committee shall constitute a quorum for the transaction of business at a meeting. For any meeting(s) at which the Audit Committee Chair is absent, the Chair of the meeting shall be the person present who shall be decided upon by all members present. At a meeting, any question shall be decided by a majority of the votes cast by members of the Audit Committee, except where only two members are present, in which case any question shall be decided unanimously.
X.	Secretary
Unless otherwise determined by resolution of the Board of Directors, the Corporate Secretary of the Corporation or his/her delegate shall be the Secretary of the Audit Committee.
XI.	Vacancies
Vacancies at any time occurring shall be filled by resolution of the Board of Directors.
XII.	Records
The Audit Committee shall keep such records as it may deem necessary of its proceedings and shall report regularly its activities and recommendations to the Board of Directors as appropriate.

  BCE Inc.     2017 ANNUAL INFORMATION FORM     39

EX-99.2

Exhibit 99.2

Management’s discussion and analysis

In this management’s discussion and analysis of financial 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., Bell Canada, their subsidiaries, joint arrangements and associates. Bell means, as the context may require, either Bell Canada or, collectively, Bell Canada, its subsidiaries, joint arrangements and associates. MTS means, as the context may require, until March 17, 2017, either Manitoba Telecom Services Inc. or, collectively, Manitoba Telecom Services Inc. and its subsidiaries; and Bell MTS means, from March 17, 2017, the combined operations of MTS and Bell Canada in Manitoba.

All amounts in this MD&A are in millions of Canadian dollars, except where noted. Please refer to section 10.2, Non-GAAP financial measures and key performance indicators (KPIs) on pages 108 to 110 for a list of defined non-GAAP financial measures and key performance indicators.

Please refer to BCE’s audited consolidated financial statements for the year ended December 31, 2017 when reading this MD&A.

In preparing this MD&A, we have taken into account information available to us up to March 8, 2018, the date of this MD&A, unless otherwise stated.

You will find additional information relating to BCE, including BCE’s audited consolidated financial statements for the year ended December 31, 2017, BCE’s annual information form for the year ended December 31, 2017, dated March 8, 2018 (BCE 2017 AIF) and recent financial reports, on BCE’s website at BCE.ca, on SEDAR at sedar.com and on EDGAR at sec.gov.

This MD&A comments on our business operations, performance, financial position and other matters for the two years ended December 31, 2017 and 2016.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

BCE’s 2017 annual report, including this MD&A and, in particular, but without limitation, section 1.3, Key corporate developments, section 1.4, Capital markets strategy, section 2, Strategic imperatives, section 3.2, Business outlook and assumptions, section 5, Business segment analysis and section 6.7, Liquidity of this MD&A, contains forward-looking statements. These forward-looking statements include, without limitation, statements relating to our projected financial performance for 2018, BCE’s dividend growth objective, common share dividend payout policy and 2018 annualized common share dividend, the expected improvement of BCE’s net debt leverage ratio and return thereof within BCE’s target range, the sources of liquidity we expect to use to meet our anticipated 2018 cash requirements, our expected 2018 post-employment benefit plans funding, our network deployment and capital investment plans, BCE’s business outlook, objectives, plans and strategic priorities, and 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 identified 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 (U.S.) Private Securities Litigation Reform Act of 1995.

Unless otherwise indicated by us, forward-looking statements in BCE’s 2017 annual report, including in this MD&A, describe our expectations as at March 8, 2018 and, accordingly, are subject to change after that 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 specific, 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 BCE’s 2017 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 assumptions in preparing the forward-looking statements contained in BCE’s 2017 annual report and, in particular, but without limitation, the forward-looking statements contained in the previously 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 our assumptions were reasonable at March 8, 2018. 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, financial, operational, technological and other risks that could cause actual results or events to differ materially from those expressed in, or implied by, the previously-mentioned forward-looking statements and other forward-looking statements contained in BCE’s 2017 annual report, and in particular in this MD&A, include, but are not limited to, the risks described or referred to in section 9, Business risks, which section is incorporated by reference in this cautionary statement.

We caution readers that the risks described in the previously 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 financial position, financial performance, cash flows, business or reputation. Except as otherwise indicated by us, forward-looking statements do not reflect 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 8, 2018. The financial impact of these transactions and special items can be complex and depends on 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.

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1 Overview

1.1 Introduction

AT A GLANCE

BCE is Canada’s largest communications company, providing residential, business and wholesale customers with a wide range of solutions for all their communications needs. BCE’s shares are publicly traded on the Toronto Stock Exchange and on the New York Stock Exchange (TSX, NYSE: BCE).

Our results are reported in three segments: Bell Wireless, Bell Wireline and Bell Media.

Bell Wireless provides wireless voice and data communications products and services to our residential, small and medium-sized business and large enterprise customers across Canada.

Bell Wireline provides data, including Internet access and Internet protocol television (IPTV), local telephone, long distance, as well as other communications services and products to our residential, small and medium-sized business and large enterprise customers, primarily in Ontario, Québec, the Atlantic provinces and Manitoba, while satellite television (TV) service and connectivity to business customers are available nationally across Canada. 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.

Bell Media provides conventional, specialty and pay TV, digital media, radio broadcasting services and out-of-home (OOH) advertising services to customers nationally across Canada.

We also hold investments in a number of other assets, including:

• a 28% indirect equity interest in Maple Leaf Sports & Entertainment Ltd. (MLSE)
• a 50% indirect equity interest in Glentel Inc. (Glentel)
• an 18.4% indirect equity interest in entities that operate the Montreal Canadiens Hockey Club and the Bell Centre in Montréal

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BCE CONSOLIDATED RESULTS

BCE CUSTOMER CONNECTIONS

OUR GOAL

Our goal is to be recognized by customers as Canada’s leading communications company. Our primary business objectives are to grow our subscribers profitably and to maximize revenues, operating profit, free cash flow and return on invested capital by further enhancing our position as the foremost provider in Canada of comprehensive communications services to residential, business and wholesale customers and as Canada’s premier content creation company. 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 BCE’s business plan are:

(1)	Adjusted EBITDA, adjusted net earnings and free cash flow are non-GAAP financial 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 and key performance indicators (KPIs) – Adjusted EBITDA and adjusted EBITDA margin, Adjusted net earnings and adjusted EPS and Free cash flow and dividend payout ratio in this MD&A for more details, including reconciliations to the most comparable IFRS financial measure.
(2)	As a result of the acquisition of MTS on March 17, 2017, our wireless, high-speed Internet, TV and NAS subscriber bases increased by 476,932 (418,427 postpaid), 229,470, 108,107 (104,661 IPTV) and 419,816 (223,663 residential and 196,153 business) subscribers, respectively. Subsequently, in Q2 2017, Bell’s wireless subscriber base reflected the divestiture of 104,833 postpaid subscribers to TELUS Communications Inc. (TELUS) related to BCE’s acquisition of MTS. Bell’s wireless subscriber base in Q2 2017 also reflected the removal of 7,268 subscribers (2,450 postpaid and 4,818 prepaid) due to the decommissioning of the code division multiple access (CDMA) network in western Canada.
(3)	Following a review of customer accounts by a wholesale reseller, we adjusted our high-speed Internet subscriber base at the beginning of Q1 2017 to remove 3,751 non-revenue generating units.

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1.2 About BCE

We report the results of our operations in three segments: Bell Wireless, Bell Wireline and Bell Media. 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 our wholly-owned subsidiary, national consumer electronics retailer, The Source (Bell) Electronics Inc. (The Source)

OUR NETWORKS AND REACH

We hold licensed national wireless spectrum, with holdings across various spectrum bands, totalling more than 4,600 million Megahertz (Mhz) per Population (MHz-pop), corresponding to a weighted-average of approximately 138 MHz-pop of spectrum across Canada.

The vast majority of our cell towers are connected by fibre, the latest in network infrastructure technology, for a more reliable connection.

Our Fourth Generation (4G) Long-term Evolution (LTE) and LTE Advanced (LTE-A) nationwide wireless broadband networks are compatible with global standards and deliver high-quality and reliable voice and high-speed data services to virtually all of the Canadian population.

• LTE covered 99% of the Canadian population coast to coast, while LTE-A covered approximately 87% of the Canadian population at December 31, 2017
• Expansion of our LTE and LTE-A services is supported by continued repurposing of wireless spectrum to increase capacity and coverage
• In-building coverage improvements to deliver a stronger signal
• LTE-A provides mobile Internet data access speeds as fast as 750 Megabits per second (Mbps) (expected average download speeds of 25 to 230 Mbps), while LTE offers speeds up to 150 Mbps (typical speeds of 12 to 40 Mbps)⁽¹⁾
• Reverts to the High-speed packet access plus (HSPA+) network outside LTE coverage areas, with speeds up to 42 Mbps (typical speeds of 7 to 14 Mbps)
• International voice and roaming capabilities in more than 230 destinations

We manage 6,500 wireless fidelity (Wi-Fi) access points at enterprise customer locations.

More than 2,400 retail points of distribution across Canada, including approximately 1,400 Bell-branded stores and The Source locations, Glentel-operated stores (WIRELESSWAVE, Tbooth wireless and WIRELESS etc.) as well as other third-party dealer and retail locations.

OUR PRODUCTS AND SERVICES

• Voice and data plans: available on either postpaid or prepaid options, providing fast Internet access for video, social networking, messaging and mobile applications, as well as a host of call features
• Specialized plans: for tablets, mobile Internet, smartwatches, Connected Car
• Extensive selection of devices: leading 4G LTE and LTE-A smartphones and tablets, mobile Internet hubs and sticks, mobile Wi-Fi devices, connected things (smartwatches, Bell Connected Car, trackers, smart home, lifestyle products, virtual reality)
• Mobile content: over 40 live and on-demand channels on smartphones and tablets, access to over 7,000 newspapers and magazines from around the world with PressReader
• Travel: roaming services with other wireless service providers in more than 230 destinations worldwide with LTE roaming in over 145 destinations, Roam Better feature and Travel Passes
• Internet of Things (IoT) solutions: fleet management, asset management, digital signage, wireless backup connectivity, remote monitoring, telematics, energy management
• Mobile business solutions: workforce management, worker safety, dispatch solutions, mobile device management, two-way radio, mobile solutions for public safety

(1) Network speeds vary with location, signal and customer device. Compatible device required.

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Bell Wireline

SEGMENT DESCRIPTION

• Provides data, including Internet access and IPTV, local telephone, long distance, as well as other communications services and products to residential, small and medium-sized business and large enterprise customers, primarily in Ontario, Québec, the Atlantic provinces and Manitoba, while satellite TV service and connectivity to business customers are available nationally across Canada. We also offer competitive local exchange carrier (CLEC) services in Alberta and British Columbia.
• Includes the results of our wholesale business, which buys and sells local telephone, long distance, data and other services from or to resellers and other carriers, and the wireline operations of Northwestel Inc. (Northwestel), which provides telecommunications services in Canada’s Northern Territories
• Includes wireline-related product sales from The Source

OUR NETWORKS AND REACH

• Extensive local access network in Ontario, Québec, the Atlantic provinces and Manitoba, as well as in Canada’s Northern Territories
• Largest fibre network in Canada, spanning over 240,000 kilometres (km)
• Broadband fibre network, consisting of fibre-to-the-node (FTTN) and fibre-to-the-premise (FTTP) locations, covering 9.2 million homes and businesses in Ontario, Québec, the Atlantic provinces and Manitoba. Our FTTP direct fibre footprint encompassed more than 3.7 million homes and commercial locations at the end of 2017, representing the largest FTTP footprint in Canada.
• 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 traffic and to optimize bandwidth for real-time voice and TV
• Largest data centre footprint in Canada with 28 locations in eight provinces, enabling us to offer data centre co-location and hosted services to business customers across Canada
• Approximately 1,400 Bell-branded stores and The Source locations across Canada

OUR PRODUCTS AND SERVICES

RESIDENTIAL

• TV: Bell Fibe TV (our IPTV service) and direct-to-home (DTH) satellite TV provide extensive content options with Full high-definition (HD) and 4K Resolution (4K) Whole Home personal video recorder (PVR), 4K Ultra HD programming and on-demand content. Our IPTV service also offers consumers innovative features, including wireless receivers, the Fibe TV app, Restart and access to CraveTV, Netflix and YouTube. We also offer Fibe Alt TV, an app-based live TV streaming service offering up to 500 live and on-demand channels on laptops, smartphones, tablets and Apple TV with no traditional TV set-top box (STB) required.
• Internet: high-speed Internet access through fibre optic broadband technology or digital subscriber line (DSL) with a wide range of options, including Whole Home Wi-Fi, unlimited usage, security services and mobile Internet. Our fibre optic Internet service, marketed as Fibe Internet, offers speeds up to 100 Mbps with FTTN or 1 Gigabit per second (Gbps) with FTTP.
• Home Phone: local telephone service, long distance and advanced calling features
• Home Security: home security and monitoring services from AlarmForce Industries Inc. (AlarmForce) in Ontario and Québec, from Bell Aliant NextGen Home Security in Atlantic Canada and from AAA Security, a Bell MTS company, in Manitoba
• Bundles: multi-product bundles of TV, Internet and home phone services with monthly discounts

BUSINESS

• IP-based services: business Internet, IP VPN, point-to-point data networks and global network solutions
• Business service solutions: hosting and cloud services, managed services, professional services and infrastructure services that support and complement our data connectivity services
• Voice and unified communications: IP telephony, local and long distance, web and audio conferencing and e-mail solutions

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Bell Media

SEGMENT DESCRIPTION

• Canada’s leading content creation company with premier assets in TV, radio, OOH advertising and digital media
• 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
  • Digital media revenues are generated from advertising

OUR ASSETS AND REACH

TV

• 30 conventional TV stations, including CTV, Canada’s highest-rated TV network based on viewership
• 30 specialty TV channels, including TSN, Space, Discovery and RDS, Canada’s leading French-language specialty channel among viewers aged 25 to 54
• Four national pay TV services, including The Movie Network (TMN) and Super Écran

RADIO

• 105 licensed radio stations in 54 markets across Canada

OOH ADVERTISING

• Network of more than 31,000 advertising faces in British Columbia, Alberta, Manitoba, Ontario, Québec and Nova Scotia

DIGITAL MEDIA

• More than 200 websites and over 30 apps

BROADCAST RIGHTS

• Sports: Bell Media has secured long-term media rights to many of the key sports properties that are popular among Canadians, and is the official Canadian broadcaster of the Super Bowl, Grey Cup and International Ice Hockey Federation (IIHF) World Junior Championship. Bell Media’s slate of live sports coverage also includes the Toronto Maple Leafs, Montreal Canadiens, Winnipeg Jets and Ottawa Senators, Canadian Football League (CFL), National Football League (NFL), National Basketball League (NBA), Major League Soccer (MLS), Fédération Internationale de Football Association (FIFA) World Cup events through to 2026, Season of Champions Curling, Major League Baseball (MLB), Premier League, Union of European Football Associations (UEFA) Champions League, UEFA Europa League, golf’s major championships, Monster Energy NASCAR Cup Series, Formula 1, Formula E, Grand Slam Tennis, Ultimate Fighting Championship (UFC), National Collegiate Athletic Association (NCAA) March Madness and more.
• HBO: long-term agreement to deliver all current-season, past-season and library HBO programming in Canada exclusively on our linear, on-demand and over-the-top (OTT) platforms
• SHOWTIME: long-term content licensing and trademark agreement for past, present and future SHOWTIME-owned programming
• Starz: long-term agreement with Lionsgate to bring U.S. premium pay TV service Starz to Canada
• iHeartRadio: exclusive partnership for digital and streaming music services in Canada

OTHER ASSETS

• 50% interest in Dome Productions Partnership, one of North America’s leading providers of sports and other event production and broadcast facilities

OUR PRODUCTS AND SERVICES

• 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
• CraveTV subscription on-demand TV streaming service offering a large collection of premium content in one place, including HBO and SHOWTIME programming, on STBs, mobile devices and online. CraveTV is offered through a number of Canadian TV providers and is available directly to all Canadian Internet subscribers as an OTT service.
• TV Everywhere services, including CTV GO, Discovery GO, TMN GO, TSN GO and RDS GO, which provide live and on-demand content delivered over mobile and Wi-Fi networks to smartphones, tablets and computers
• Mobile TV service with live and on-demand access to content from our conventional TV networks, CTV and CTV Two, BNN, TSN, RDS, Comedy and other brands in news, sports and entertainment. This mobile content is offered on commercial terms to all Canadian wireless providers.

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Other BCE investments

BCE also holds investments in a number of other assets, including:

• a 28% indirect equity interest in MLSE, a sports and entertainment company that owns several sports teams as well as real estate and entertainment assets in Toronto
• a 50% indirect equity interest in Glentel, a Canadian-based dual-carrier, multi-brand mobile products distributor
• an 18.4% indirect equity interest in entities that operate the Montreal Canadiens Hockey Club and the Bell Centre in Montréal

OUR PEOPLE

EMPLOYEES

At the end of 2017, our team included 51,679 employees dedicated to driving shareholder return and improving customer service.

The total number of BCE employees at the end of 2017 increased by 3,589 employees compared to the end of 2016, due primarily to the integration of MTS employees.

Approximately 45% 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 specific expectations and accountabilities, providing employees with practical guidelines to conduct business in an ethical manner. Our commitment to the Code of Business Conduct is renewed by employees each year in an ongoing effort to ensure that all employees are aware of, and adhere to, Bell’s standards of conduct.

1.3 Key corporate developments

MTS ACQUISITION COMPLETED

On March 17, 2017, BCE completed the acquisition of MTS originally announced on May 2, 2016, purchasing all of the issued and outstanding common shares of MTS for a total consideration of $2,933 million and assumed outstanding net debt of $972 million. BCE acquired all of the issued and outstanding common shares of MTS for $40 per share, which was paid 55% through the issuance of BCE common shares and 45% in cash. The cash component of $1,339 million was funded through debt financing and BCE issued approximately 27.6 million common shares for the equity portion of the transaction. The combined companies’ Manitoba operations are now known as Bell MTS. On April 1, 2017, BCE completed the divestiture of approximately one-quarter of postpaid wireless subscribers and 15 retail locations previously held by MTS, as well as certain Manitoba network assets, to TELUS for total proceeds of $323 million.

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ACQUISITION OF ALARMFORCE

BCE completed its $182 million acquisition of AlarmForce, one of Canada’s largest home and business security companies, on January 5, 2018. Combining Bell’s residential services brand, broadband network connectivity, distribution, installation and customer service capabilities with AlarmForce’s innovative technology and customer base accelerates our competitiveness in the fast-growing Connected Home marketplace.

Bell also offers monitoring and other Connected Home services with Bell Aliant NextGen Home Security in Atlantic Canada and AAA Security, a Bell MTS company, in Manitoba. Also on January 5, 2018, BCE sold AlarmForce’s approximate 39,000 customer accounts in British Columbia, Alberta and Saskatchewan to TELUS for total proceeds of approximately $67 million, subject to customary closing adjustments.

RECOGNITION OF BELL’S ENVIRONMENTAL LEADERSHIP

As part of Canada’s Top 100 Employers program, Bell was named one of Canada’s Greenest Employers for 2017. The award recognizes Bell’s ongoing commitment to minimize the environmental impact of our operations and our success in reducing waste and saving energy across our network infrastructure, information technology (IT) systems, buildings and vehicle fleet. Key factors that contributed to Bell’s win include:

• Our ISO 14001 certified environmental management system. Bell was the first Canadian communications company to achieve this international standard.
• The Bell Blue Box mobile recycling program, which has recovered more than 1.4 million phones since 2010 and donates proceeds to the Canadian Mental Health Association
• 46 Bell buildings have received BOMA BEST certifications for environmental performance, including our Montréal campus, which is the largest Leadership in Energy and Environmental Design (LEED) certified building in Québec
• Telematics systems in 85% of Bell vehicles provide vital engine information that supports more fuel efficient driving practices

NOMINATION TO BCE’S BOARD OF DIRECTORS

On March 8, 2017, BCE announced the nomination of Karen Sheriff for election to the BCE board of directors (BCE Board or Board) and the retirement of Ronald Brenneman from the BCE Board at BCE’s annual general shareholder meeting, held on April 26, 2017. One of Canada’s most successful telecommunications executives, Ms. Sheriff was most recently President and Chief Executive Officer (CEO) of Q9 Networks Inc. (Q9), from January 2015 to October 2016. Prior to her role at Q9, she was President and CEO of Bell Aliant from 2008 to 2014, following more than nine years in senior leadership positions at BCE.

1.4 Capital markets strategy

We seek to deliver sustainable shareholder returns through consistent dividend growth. This objective is underpinned by continued growth in free cash flow and a strong balance sheet, supporting a healthy level of ongoing capital investment on advanced broadband network and services that are essential to driving the long-term growth of our business.

DIVIDEND GROWTH AND PAYOUT POLICY

On February 8, 2018, we announced a 5.2%, or 15 cents, increase in the annualized dividend payable on BCE’s common shares for 2018 to $3.02 per share from $2.87 per share in 2017, starting with the quarterly dividend payable on April 15, 2018. This represents BCE’s 14th increase to its annual common share dividend, representing a 107% increase, since the fourth quarter of 2008. This is BCE’s 10th consecutive year of 5% or better dividend growth, while maintaining the dividend payout ratio⁽¹⁾ within the target policy range of 65% to 75% of free cash flow.

Our objective is to seek to achieve dividend growth while maintaining our dividend payout ratio within the target range and balancing our strategic business priorities. BCE’s dividend payout policy and the declaration of dividends are subject to the discretion of the BCE Board and, consequently, there can be no guarantee that BCE’s dividend policy will be maintained or that dividends will be increased or declared.

(1) Dividend payout ratio is a non-GAAP financial 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 and key performance indicators (KPIs) – Free cash flow and dividend payout ratio for more details.

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We have a strong alignment of interest between shareholders and our management’s 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 reflect our objective to increase the share price for our shareholders.

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 Clawbacks for the President and CEO and all Executive Vice-Presidents as well as all options holders Caps on all supplemental executive retirement plans (SERPs) and annual bonus payouts, in addition to mid-term and long-term incentive grants Vesting criteria fully aligned to shareholder interests

USE OF EXCESS CASH⁽¹⁾

Our dividend payout policy allows BCE to retain a high level of excess cash. Consistent with our capital markets objective to deliver sustainable shareholder returns through dividend growth while maintaining appropriate levels of capital investment, investment-grade credit ratings and considerable overall financial flexibility, we deploy excess cash in a balanced manner.

Uses of excess cash include, but are not limited to:

• Financing of strategic acquisitions and investments (including wireless spectrum purchases) that support the growth of our business
• Debt reduction
• Voluntary contributions to BCE’s defined benefit (DB) pension plans to improve the funded position of the plans and help minimize volatility of future funding requirements
• Share buybacks through normal course issuer bid (NCIB) programs

In 2017, BCE’s excess cash of $906 million, down from $921 million in 2016, was directed towards a $100 million voluntary contribution to fund certain of BCE’s DB pension plans and various acquisitions that support our strategic imperatives, including MTS.

On February 8, 2018, we announced a NCIB program totaling $175 million, under which BCE may purchase for cancellation up to 3,500,000 common shares (subject to a maximum aggregate purchase price of $175 million) over the twelve-month period starting February 13, 2018 and ending no later than February 12, 2019. The repurchase of common shares represents an appropriate use of funds for offsetting share dilution resulting from the exercise of stock options, and will be funded from cash on hand.

TOTAL SHAREHOLDER RETURN PERFORMANCE

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⁽⁴⁾, for the five-year period ending December 31, 2017, assuming an initial investment of $100 on December 31, 2012 and the quarterly reinvestment of all dividends.

(1)	Free cash flow less dividends paid on common shares.
(2)	The change in BCE’s common share price for a specified period plus BCE common share dividends reinvested, divided by BCE’s common share price at the beginning of the period.
(3)	Based on BCE’s common share price on the TSX and assumes the reinvestment of dividends.
(4)	As the headline index for the Canadian equity market, the S&P/TSX Composite Index is the primary gauge against which to measure total shareholder return for Canadian-based, TSX-listed companies.

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STRONG CAPITAL STRUCTURE

BCE’s balance sheet is underpinned by considerable liquidity and an investment-grade credit profile, providing the company with a solid financial foundation and a high level of overall financial flexibility. BCE is well-positioned with an attractive long-term debt maturity profile and minimal near-term requirements to repay publicly issued debt securities. We continue to monitor the capital markets for opportunities where we can further reduce our cost of debt and our cost of capital. We seek to proactively manage financial risk in terms of currency exposure of our U.S. dollar-denominated purchases, as well as equity risk exposure under BCE’s long-term equity-based incentive plans and interest rate and foreign currency exposure under our various debt instruments. We also seek to maintain investment-grade credit ratings with stable outlooks.

We monitor capital by utilizing a number of measures, including net debt⁽¹⁾ to adjusted EBITDA, adjusted EBITDA to net interest expense⁽¹⁾, and dividend payout ratio.

ATTRACTIVE LONG-TERM DEBT MATURITY PROFILE Average term of Bell Canada’s publicly issued debt securities: 9.1 years Average after-tax cost of publicly issued debt securities: 3.2% $600 million of publicly issued debt securities maturing in 2018

STRONG LIQUIDITY POSITION $0.4 billion available under our $3.5 billion multi-year committed credit facilities $500 million accounts receivable securitization available capacity $625 million cash and cash equivalents on hand at the end of 2017

FAVOURABLE CREDIT PROFILE Long-term debt credit rating of BBB (high) by DBRS Limited (DBRS), Baa 1 by Moody’s Investors Services Inc. (Moody’s) and BBB+ by Standard & Poor’s Ratings Services (Canada) (S&P), all with stable outlooks

As a result of financing a number of strategic acquisitions made since 2010, including CTV Inc., Astral Media Inc., MLSE, Bell Aliant Inc. (Bell Aliant), Q9 and MTS; voluntary pension plan funding contributions to reduce our pension solvency deficit; wireless spectrum purchases; as well as the incremental debt that was assumed as a result of the privatization of Bell Aliant and the acquisition of MTS, our net debt leverage ratio⁽¹⁾ has increased above the limit of our internal target range of 1.75 to 2.25 times adjusted EBITDA. That ratio is expected to improve over time and return within the net debt leverage ratio target range through growth in free cash flow and applying a portion of excess cash to the reduction of BCE’s indebtedness.

BCE’s adjusted EBITDA to net interest expense ratio remains significantly above our internal target range of greater than 7.5 times adjusted EBITDA, providing good predictability in our debt service costs and protection from interest rate volatility for the foreseeable future.

BCE CREDIT RATIOS	INTERNAL TARGET	DECEMBER 31, 2017
Net debt leverage ratio	1.75–2.25	2.70
Adjusted EBITDA to net interest expense ratio	> 7.5	9.12

Bell Canada successfully accessed the capital markets in February 2017 and September 2017, raising a combined total of $3.0 billion in gross proceeds from the issuance of five-year, seven-year, 10-year and 30-year medium-term note (MTN) debentures. These issuances lowered our after-tax cost of outstanding publicly issued debt securities to 3.2% (4.3% on a pre-tax basis) and maintained an average term to maturity of more than nine years. The net proceeds of the 2017 offerings were used to partially fund the acquisition of MTS, repay short-term debt, fund the early redemption of $1.3 billion of Bell Canada debentures maturing in 2018, and for general corporate purposes.

(1) Net debt, net debt leverage ratio and adjusted EBITDA to net interest expense ratio are non-GAAP financial 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 and key performance indicators (KPIs) – Net debt, Net debt leverage ratio and Adjusted EBITDA to net interest expense ratio in this MD&A for more details.

1.5 Corporate governance and risk management

CORPORATE GOVERNANCE PHILOSOPHY

The BCE 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 shareholders.

Key governance strengths and actions in support of our governance philosophy include:

• Separation of the Board Chair and CEO roles
• Director independence standards
• Audit Committee, Management Resources and Compensation Committee (Compensation Committee) and Corporate Governance Committee (Governance Committee) of the Board composed of 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 BCE’s ability to grow its common share dividend

For more information, please refer to BCE’s most recent notice of annual general shareholder meeting and management proxy circular (the Proxy Circular) filed with the Canadian provincial securities regulatory authorities (available at sedar.com) and with the U.S. Securities and Exchange Commission (available at sec.gov), and available on BCE’s website at BCE.ca.

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RISK GOVERNANCE FRAMEWORK

BOARD OVERSIGHT

BCE’s full Board is entrusted with the responsibility for identifying and overseeing the principal risks to which our 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 financial position, financial performance, cash flows, business or reputation. While the Board has overall responsibility for risk, the responsibility for certain elements of the risk oversight program is delegated to Board committees in order to ensure that they are treated with appropriate expertise, attention and diligence. The committees report to the Board in the ordinary course of business.

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 is responsible for overseeing financial reporting and disclosure as well as overseeing that appropriate risk management processes are in place across the organization. As part of its risk management activities, the Audit Committee reviews the organization’s risk reports and ensures that responsibility for each principal risk is formally assigned to a specific committee or the full Board, as appropriate. The Audit Committee also regularly considers risks relating to financial reporting, legal proceedings, the performance of critical infrastructure, information, cyber and physical security, journalistic independence, privacy and records management, business continuity and the environment.
• The Compensation Committee oversees risks relating to compensation, succession planning, and health and safety practices
• The Governance Committee assists the Board in developing and implementing BCE’s corporate governance guidelines and determining the composition of the Board and its committees. The Governance Committee also oversees matters such as the organization’s policies concerning business conduct, ethics and public disclosure of material information.
• The Pension Fund Committee (Pension Committee) has oversight responsibility for risks associated with the pension fund.

RISK MANAGEMENT CULTURE

There is a strong culture of risk management at BCE that is actively promoted by the Board and the company’s President and 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 its structure and operating principles, guiding the implementation of the organization’s strategic imperatives.

The President and CEO, selected by the Board, has set his strategic focus through the establishment of six strategic imperatives and focuses risk management around the factors that could impact the achievement of those strategic imperatives. While the constant state of change in the economic environment and the industry creates challenges that need to be managed, the clarity around strategic objectives, performance expectations, risk management and integrity in execution ensures discipline and balance in all aspects of our business.

RISK MANAGEMENT FRAMEWORK

While the Board is responsible for BCE’s risk oversight program, operational business units are central to the proactive identification and management of risk. They are supported by a range of corporate support functions that 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. Although the risk management framework described in this section 1.5 is aligned with industry best practices and is endorsed by the Institute of Internal Auditors, there can be no assurance that it will be sufficient to prevent the occurrence of events that could have a material adverse effect on our financial position, financial performance, cash flows, business or reputation.

38   BCE Inc.   2017 ANNUAL REPORT
	1	MD&A	Overview

FIRST LINE OF DEFENCE – OPERATIONAL BUSINESS UNITS

The first line refers to management within our operational business segments (Bell Wireless, Bell Wireline and Bell Media), who are expected to understand their operations in great detail and the financial results that underpin them. There are regular reviews of operating performance involving the organization’s executive and senior management. The discipline and precision associated with this process, coupled with the alignment and focus around performance goals, create a high degree of accountability and transparency in support of our 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 management are integral to these activities in driving the identification, assessment, mitigation and reporting of risks 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 fit the needs of its unique environment.

SECOND LINE OF DEFENCE – CORPORATE SUPPORT FUNCTIONS

BCE is a very large enterprise with 51,679 employees, as at December 31, 2017, multiple business units and a diverse portfolio of risks that is constantly evolving based on internal and external factors. In a large organization, it is common to manage certain functions centrally for efficiency, scale and consistency. While the first line of defence is often central to identification and management of business risks, in many instances operational management works collaboratively with, and also relies on, the corporate functions that 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 Legal and Regulatory, Corporate Responsibility, Human Resources, Real Estate and Procurement.

Finance function: BCE’s Finance function plays a pivotal role in seeking to identify, assess and manage risks through a number of activities, which include financial performance management, external reporting, pension management, capital management, and oversight and execution practices related to the U.S. Sarbanes-Oxley Act of 2002 and equivalent Canadian securities legislation, including the establishment and maintenance of appropriate internal control over financial reporting. BCE has established and maintains disclosure controls and procedures to seek to ensure that the information it publicly discloses, including its business risks, is accurately recorded, processed, summarized and reported on a timely basis. For more details concerning BCE’s internal control over financial reporting and disclosure controls and procedures, refer to the Proxy Circular and section 10.3, Effectiveness of internal controls of this MD&A.

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 definitions and monitors the organization’s 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 seek to mitigate the organization’s risks. For instance, we have implemented security awareness training and policies and procedures that seek to mitigate cybersecurity threats. We further rely on security assessments to identify risks, projects and implementation controls with the objective of ensuring that systems are deployed with the appropriate level of control based on risk and technical capabilities, including access management, vulnerability management, security monitoring and testing, to help identify and respond to attempts to gain unauthorized access to our information systems and networks. However, there is no assurance that our implemented safeguards will prevent the occurrence of material cybersecurity breaches, intrusions or attacks, or that any insurance we may have will cover the costs, damages, liabilities or losses that could result therefrom.

Corporate Risk Management function: This function works across the company to gather information and report on the organization’s assessment of its principal risks and the related exposures. Annually, senior management participate in a risk survey that provides an important reference point in the overall risk assessment process.

In addition to the activities described above, the second line of defence is also critical in building and operating the oversight mechanisms that bring focus to relevant areas of risk and reinforce the bridges between the first 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 first and second lines of defence, BCE has established a Health and Safety, Security, Environment and Compliance Oversight Committee. A significant number of BCE’s most senior leaders are members of this committee, the purpose of which is to oversee BCE’s strategic security (including cybersecurity), compliance and, 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 sufficient 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 company’s risk and control environment, to support management in fulfilling BCE’s strategic imperatives and to maintain an audit presence throughout BCE and its subsidiaries.

BCE Inc.   2017 ANNUAL REPORT   39
2	MD&A	Strategic imperatives

2 Strategic imperatives

Our success is built on the BCE team’s dedicated execution of the six strategic imperatives that support our goal to be recognized by customers as Canada’s leading communications company.

2.1 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 as well as the needs of our business market customers.

2017 PROGRESS

• Expanded our 4G LTE wireless network to reach 99% of the Canadian population coast to coast with download speeds ranging from 75 Mbps to 150 Mbps (expected average download speeds of 12 to 40 Mbps)
• Continued the rollout of our LTE-A wireless network, providing service to approximately 87% of the Canadian population at data speeds up to 260 Mbps (expected average download speeds of 18 to 74 Mbps). In addition, our Tri-band LTE-A footprint covered 34% of the population with download speeds of up to 335 Mbps (expected average download speeds of 25 to 100 Mbps).
• Launched North America’s first Quad-band LTE-A network deployment capable of delivering theoretical speeds of up to 750 Mbps (expected average download speeds of 25 to 230 Mbps in select areas). Bell’s Quad Band service expanded to 23% of Canadians, encompassing 91 cities.
• Continued to expand our FTTP direct fibre footprint, reaching more than 3.7 million homes and businesses in seven provinces, including approximately 60% of homes and businesses in the city of Toronto. Forty percent of our long-term broadband fibre program was completed at the end of 2017. FTTP enables symmetrical Internet download and upload speeds of up to 1 Gbps and will enable the delivery of even faster speeds in the future.
• Began the build-out of broadband fibre directly to 1.1 million residences and business locations throughout Montréal, representing the largest-ever communications infrastructure project in Québec with a planned capital investment of $854 million. Montréal joins a growing number of centres across Québec that are fully wired with Bell fibre, including Québec City where fibre deployment was launched in 2012. By the end of 2017, Bell fibre reached approximately 40% of homes and businesses throughout the province of Québec, including 14% of all locations in Montréal.

2018 FOCUS

• Expand FTTP broadband fibre footprint to approximately 4.5 million total combined homes and commercial locations
  • In February 2018, we announced the expansion of FTTP direct fibre connections throughout the Greater Toronto and 905 geographic region. Bell’s fibre plan will deliver Gigabit Internet speeds and other broadband Fibe service innovations to more than 1.3 million homes and businesses in the region.
• Expand LTE-A network footprint to approximately 92% of the Canadian population
• Deploy Quad-band LTE-A to approximately 60% of the Canadian population enabling theoretical speeds up to 750 Mbps (average expected speeds of 25 to 230 Mbps)
• Increase LTE-A peak theoretical speeds to 950 Mbps with 4×4 MIMO (Multiple Input Multiple Output) technology in select urban areas covering approximately 40% of the Canadian population
• Increase small cell deployment and in-building coverage to increase urban densification and support evolution to our Fifth Generation (5G) services
• Launch an LTE-category M1 (LTE-M) wireless network to support the rapidly increasing use of IoT devices on low-power, wide-area networks (LPWANs) in Canada. LTE-M improves the operating efficiency of IoT devices by enabling very low power consumption and better coverage in underground and other hard to reach locations.

2.2 Accelerate wireless

Our objective is to grow our Bell Wireless business profitably by focusing on postpaid subscriber acquisition and retention, maximizing average revenue per user (ARPU) by targeting premium smartphone subscribers in all geographic markets we operate in, leveraging our wireless networks, and maintaining device and mobile content leadership to drive greater wireless data penetration and usage.

2017 PROGRESS

• Acquired 36% of total new postpaid gross and net activations among the three national wireless carriers, while achieving leading service revenue, ARPU and adjusted EBITDA growth of 10.7%, 3.5% and 9.1%, respectively
• Increased the number of postpaid subscribers on our LTE network to 88% of our total postpaid subscribers, up from 81% at the end of 2016
• Expanded our smartphone and tablet lineup with 40 new devices, including Apple’s iPhone X, 8 and 8 Plus and Apple Watch Series 3 with built-in cellular, the Samsung Galaxy S8 and S8+, the Samsung Galaxy Note8, Google’s Pixel 2 and Pixel 2 XL and the LG G6, adding to our extensive selection of 4G LTE and LTE-A devices

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	2	MD&A	Strategic imperatives

• Launched Lucky Mobile, an easy and low-cost prepaid wireless service for budget-conscious Canadians with monthly plans starting at just $20 for unlimited local calling. Initially available to consumers in Ontario, Alberta and British Columbia, Lucky Mobile offers service in 17 zones covering most major cities across the country, including data access at 3G-equivalent access speeds.
• Became the Government of Canada’s primary wireless supplier for the next six years, with options to renew. Bell will supply voice, text, and data services and approximately 230,000 mobile devices to federal employees in more than 100 departments and agencies.
• First Canadian wireless provider to support the LTE network capabilities of the Apple Watch Series 3. In addition to providing Voice over LTE (VoLTE) technology, Bell launched NumberShare, a service that enables customers to pair their Apple Watch Series 3 with their iPhone using the same phone number.
• Launched the first integrated Advanced Messaging service on Samsung devices, offering a suite of mobile messaging features previously available through specialized third-party applications
• Took a leadership position in the fast-growing IoT sector, which enables the interconnection of a range of devices and applications that send and receive data
  • Bell MTS launched the Innovations in Agriculture program at the University of Manitoba, providing students with opportunities to develop innovative IoT technologies for application in agriculture and food science
  • Concluded an agreement with Hyundai AutoEver Telematics America (HATA), a subsidiary of Hyundai Motor Group, to deliver a range of connected telematics services including security, safety, diagnostics and infotainment to select Hyundai and Kia vehicles over Bell’s national mobile network
  • Partnered with BeWhere Technologies and Huawei to implement an automated IoT solution for the Henry of Pelham Family Estate Winery to help improve planning and sustainability programs
• First Canadian carrier to offer global connectivity for our leading-edge IoT platforms and applications. Bell’s Global IoT connectivity solutions offer our customers uninterrupted worldwide network access and the ability to manage all of their international devices remotely from a single web-based platform by embedding Bell’s Global subscriber identification module (SIM) cards into their products.

2018 FOCUS

• Profitably grow our wireless postpaid subscriber base, while maintaining market share momentum of incumbent postpaid subscriber activations
• Continue to increase ARPU
• Offer the latest handsets and devices in a timely manner to enable customers to benefit from ongoing technological improvements by manufacturers and from faster data speeds to optimize the use of our services
• Continue to increase the number of postpaid smartphone subscribers using our 4G LTE and LTE-A networks
• Leverage Lucky Mobile to grow prepaid subscriber market share, while providing Canadians with affordable wireless service options
• Expand VoLTE technology coverage areas and broaden rollout to more supported devices
• Accelerate new revenue streams by continuing to drive the commercialization of IoT services and applications
  • In February 2018, we partnered with the city of Kingston to employ Bell’s Smart City platform to provide a series of connected IoT applications which will enable Kingston to digitize its operations and collect data to make better informed decisions and investments in city operations and infrastructure, benefiting constituents, internal departments and employees while improving citizen engagement

2.3 Leverage wireline momentum

We focus on leveraging our fibre-based TV and Internet services to develop attractive residential offers that drive higher multi-product bundle sales and improve customer satisfaction and retention. These broadband 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.

2017 PROGRESS

• Maintained our position as Canada’s largest TV provider with 2,832,300 subscribers, and increased our total number of IPTV subscribers by 15.9% to 1,550,317
• Built on our position as the leading Internet service provider (ISP) in Canada with a high-speed Internet subscriber base of 3,790,141, up 9.0% over 2016, including one million FTTP customers
• Launched Fibe Alt TV, Canada’s first widely available app-based live TV service, providing a completely new way to watch live and on-demand television. With no traditional TV STB required, Alt TV is accessed through the Fibe TV app and offers up to 500 live and on-demand channels on laptops, smartphones, tablets and Apple TV 4th Generation.
• Continued to lead television innovation in Canada with ongoing enhancements to our IPTV service
  • Fibe TV customers in Ontario and Québec can watch their PVR recordings on the go on their tablets, smartphones and laptops with the Fibe TV app
  • Customers with 4K Whole Home PVR can access YouTube, in addition to CraveTV and Netflix
• Acquired AlarmForce (transaction completed on January 5, 2018), a Canadian leader in home security and monitoring services, as part of Bell’s strategic expansion in the fast-growing Connected Home marketplace. Combining the assets and experience of AlarmForce with Bell’s strength in networks, customer service and distribution will enable Bell to deliver the latest Connected Home services to customers in Ontario, Québec, Atlantic Canada and Manitoba.
• Partnered with Akamai Technologies Inc. (Akamai), a global leader in content delivery and cloud services, to expand our portfolio of integrated web security solutions for business customers. Complementing Bell solutions to help businesses increase productivity, minimize risk, and maximize service differentiation, Akamai’s leading cloud security, web performance, and media delivery products strengthen our ability to identify security threats, proactively prevent attacks, and support customers in optimizing their online presence.

BCE Inc.   2017 ANNUAL REPORT   41
2	MD&A	Strategic imperatives

• Recognized by International Data Corporation (IDC) Canada as a leader in delivering security services for business customers. Bell was the only telecom company in IDC’s Leaders Category, which included large multinationals such as CGI Group Inc. (CGI), International Business Machines Corporation (IBM) and Deloitte Touche Tohmatsu Limited (Deloitte). Evaluators noted that Bell’s extensive network enables us to quickly leverage cyber threat intelligence to provide a complete range of advanced threat detection, mitigation and prevention services.

2018 FOCUS

• Continue to enhance our Fibe TV and Alt TV services with more advanced features
  • In January 2018, we concluded a multi-year agreement with Ericsson to leverage its next generation, cloud-based MediaFirst TV platform to deliver an even more personalized and seamless multiscreen TV experience for Fibe TV and Alt TV customers
• Maintain our leadership position in Canadian broadband communications with the most advanced products in the home
  • In January 2018, we launched Whole Home Wi-Fi, Canada’s first Wi-Fi service that brings smart and fast Wi-Fi to every room in the home while adapting to changing user requirements. Bell partnered with Plume Design Inc. (Plume) to deliver new access points, called pods, that work with the cloud-based networking intelligence of Bell’s Home Hub 3000 modem to deliver a fully adaptive Wi-Fi service.
• Expand our total base and market share of TV and Internet subscribers profitably
• Reduce total wireline residential net losses
• Increase residential household ARPU through greater multi-product household penetration
• Increase share of wallet of large enterprise customers through greater focus on business service solutions and connectivity growth
• Increase the number of net new customer relationships in both large and mid-sized businesses and reduce small business customer losses

2.4 Expand media leadership

We strive to deliver leading sports, news, entertainment and business content across all screens and platforms to grow audiences. We are also creating more of our own content, ensuring that Canadian attitudes, opinions, values and artistic creativity are reflected in our programming and in our coverage of events in Canada and around the world, and to introduce new services in support of new revenue streams.

2017 PROGRESS

• Maintained CTV’s #1 ranking as the most-watched television network in Canada for the 16th year in a row, and continued to lead with a majority of the top 20 programs nationally in all key demographics
• Entered into an agreement with Corus Entertainment Inc. (Corus) to acquire French-language specialty channels Séries+ and Historia, further enhancing our competitiveness in the Québec media landscape. Séries+ is a fiction channel, offering locally produced dramas as well as foreign series. Historia broadcasts a suite of locally produced original content including documentaries, reality series and drama series. The transaction is subject to approval by the Canadian Radio-television and Telecommunications Commission (CRTC) and the Competition Bureau.
• Grew CraveTV viewership to approximately 1.3 million subscribers at the end of 2017
• Signed an agreement to acquire four FM radio stations in Ontario from Larche Communications Inc. (Larche). Pending completion of the transaction, which already received CRTC approval, the addition of these stations to Bell Media’s existing 105 iHeartRadio Canada properties will broaden the network’s industry-leading reach across the country.
• TMN, HBO Canada and TMN Encore launched an offline viewing feature on the TMN GO video-streaming platform, allowing subscribers to download movies and series on their iOS and Android tablets and smartphones for playback without an Internet connection
• Launched an enhanced iHeartRadio Canada app featuring more than 1,000 live radio stations of every genre from across North America, with availability on additional platforms including Apple Watch, Apple CarPlay, Android Wear, Android Auto and Sonos
• Concluded a comprehensive multi-year regional broadcast rights agreement with the Montreal Canadiens making TSN the official English-language regional broadcaster of the team beginning with the 2017-2018 season. The agreement sees TSN air a slate of games in the Montreal Canadiens’ designated broadcast region, which spans Eastern and Northern Ontario, Québec, and Atlantic Canada. RDS continues to be the French-language home for regional Montreal Canadiens games.
• Concluded a multi-year rights agreement extension with the NFL that makes Bell Media the exclusive TV broadcast partner of the NFL in Canada. The partnership also features expanded digital opportunities which include syndication rights for NFL highlights in Canada, as well as expanded footage and programming rights to further bolster Bell Media’s non-game NFL-focused content.
• Reached a multi-year media rights extension with NASCAR, with TSN and RDS retaining exclusive Canadian media rights to all Monster Energy NASCAR Cup Series and NASCAR Xfinity Series races across all platforms. The multi-platform agreement features expanded digital rights, with TSN and RDS delivering comprehensive coverage of these NASCAR series across the networks’ digital and social media platforms.
• Announced a strategic partnership with Wow Unlimited Media Inc. (Wow) to produce kids and youth entertainment
• Astral, in partnership with Toronto Pearson International Airport, introduced two new large-format digital superboards in close proximity to the country’s largest airport. The new structures provide information about the airport while offering an advertising opportunity reaching millions of commuters and passengers annually. The four faces of the new advertising structures deliver a daily circulation of close to 800,000.
• Astral launched a new and unique programmatic solution for large format digital inventory using an exclusive self-serve platform, enabling clients to use audience targeting previously only available online

2018 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
  • In January 2018, we concluded a long-term agreement with Lionsgate to bring premium U.S. pay TV platform Starz to Canada and distribute the first pay window of Lionsgate’s future theatrical releases in the territory. Starz and Bell Media will also rebrand pay TV channel TMN Encore in early 2019.

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	2	MD&A	Strategic imperatives

• Grow viewership and scale of CraveTV on-demand TV streaming service
  • In January 2018, we announced that CraveTV’s HBO offering would expand throughout 2018 with the addition of Game of Thrones, Girls, The Leftovers, Silicon Valley, Vice Principals, Ballers, Insecure and The Young Pope
• Develop in-house production and content creation for distribution and use across all screens and platforms
• Expand live and on-demand content through TV Everywhere services
• Build on our OOH leadership position in Canada
• Grow French media properties
• Leverage cross-platform and integrated sales and sponsorship
• Grow revenues through unique partnerships and strategic content investments
  • In January 2018, we partnered with Bloomberg Media to create BNN Bloomberg, Canada’s leading multi-platform business news brand.
    Expected to launch in Spring 2018, BNN Bloomberg will provide audiences and advertisers with an unparalleled suite of products across digital, television and radio, targeting Canada’s business decision makers.
  • In February 2018, we launched Snackable TV, a mobile-first, short-form video app delivering premium and shareable entertainment targeted at viewers looking to consume snack-size pieces of content, featuring exclusive content from HBO, Comedy Central, Etalk and more

2.5 Improve customer service

Our objective is to enhance customers’ overall experience by delivering call centre efficiency, 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 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.

2017 PROGRESS

• Virgin Mobile Canada (Virgin Mobile) was ranked highest in overall Customer Care Satisfaction in the J.D. Power 2017 Canadian Wireless Customer Care Study released in May, with top scores in the store, call centre and online service categories
• Improved wireless postpaid churn by 0.06 pts in 2017, driven by our investments in customer retention
• Introduced the Same Day/Next Day smartphone repairs pilot program in Ontario, resolving many common smartphone issues within a few hours with the help of certified technicians using manufacturer-approved parts
• Improved the MyBell app, achieving a four-star rating on the Apple App Store, and increased mobile transactions by 38% in 2017
• Reduced fibre-to-the-home (FTTH) Residential Fibe TV installation time by 9% in 2017
• Reduced FTTH Residential Fibe TV repair truck rolls per customer by 16% in 2017
• Launched a simplified wireless bill
• Offered Same Day repair appointments to 68% of small business customers, an improvement of 94% since 2014
• Increased the number of self-serve transactions by 15% in 2017

2018 FOCUS

• Continue to invest in customer service initiatives to simplify complexity for all customers, including billing
• Further reduce the total volume of customer calls to our call centres
• Further improve customer satisfaction scores
• Achieve better consistency in customer experience
• Continue to improve customer personalization
• Reduce FTTP installation times and improve service quality
• Deploy new diagnostic technology enabling enhanced troubleshooting and proactive service monitoring for our customers
• Simplify the technician in-field experience through simplification and innovation of technician tools
• Improve troubleshooting and diagnostic processes to manage increasing customer and device complexity

2.6 Achieve a competitive cost structure

Cost containment is a core element of our financial 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 efficiency and productivity gains.

2017 PROGRESS

• Maintained relatively stable BCE consolidated adjusted EBITDA margin⁽¹⁾ compared to 2016
• Improved Bell Wireline adjusted EBITDA margin by 0.1 pts over 2016
• Realized approximately $33 million of operating cost synergies from the integration of MTS into our Bell Wireline and Bell Wireless segments
• Delivered cost savings from ongoing service improvements and savings related to the deployment of FTTP
• Lowered Bell Canada’s average after-tax cost of publicly issued debt securities to 3.2%

2018 FOCUS

• Capture additional operating cost and capital expenditure synergies from the integration of Bell MTS
• Deliver cost savings from workforce reductions, ongoing service improvements, and savings related to the deployment of FTTP to support a stable consolidated adjusted EBITDA margin
• Optimize Bell Media’s operating cost structure to align with revenue results

(1) Adjusted EBITDA margin is a non-GAAP financial 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 and key performance indicators (KPIs) – Adjusted EBITDA and adjusted EBITDA margin in this MD&A for more details.

BCE Inc.   2017 ANNUAL REPORT   43
3	MD&A	Performance targets, outlook, assumptions and risks

3 Performance targets, outlook, assumptions and risks

This section provides information pertaining to our performance against 2017 targets, our consolidated business outlook and operating assumptions for 2018 and our principal business risks.

3.1 BCE 2017 performance vs. guidance targets

FINANCIAL GUIDANCE	2017 TARGET	2017 PERFORMANCE AND RESULTS
Revenue growth	4%–6%	4.6%	BCE revenues were up 4.6% in 2017 driven by growth in Bell Wireless of 10.1%, Bell Wireline of 2.6% and Bell Media of 0.7%. This included the contribution from the acquisitions of MTS and Q9, moderated by regulatory pressures impacting all three of our segments.
Adjusted EBITDA growth	4%–6%	4.4%	BCE adjusted EBITDA grew 4.4% in 2017 with a corresponding adjusted EBITDA margin of 40.4%, which remained relatively stable year over year. The growth was driven by higher wireless, Internet, IPTV and media revenues, the impact of the acquisitions of MTS and Q9, along with continued effective cost management. This more than offset the ongoing revenue declines in wireline voice, satellite TV and legacy data services, increased investment in wireless subscriber retention and acquisition, and regulatory pressures, as well as higher Bell Media programming and content costs.
Capital intensity	Approx. 17%	17.8%	BCE continued to focus its strategic investment in advanced broadband wireline and wireless infrastructure with capital expenditures totaling $4,034 million in 2017, up 7.0% over last year. This corresponded to an increased capital intensity ratio of 17.8% in 2017 compared to 17.4% last year and exceeded target due to the accelerated deployment of broadband fibre. Capital spending in 2017 was focused on the continued deployment of our broadband fibre directly to more homes and businesses, the ongoing rollout of our 4G LTE and LTE-A mobile networks, as well as the enhancement and expansion of our wireless network to increase network speeds and to support the growth in our subscriber base and data consumption.
Adjusted net earnings per share (adjusted EPS)(1)	$3.30–$3.40	$3.39	Adjusted net earnings in 2017 decreased by $24 million, or $0.07 per common share, due to higher depreciation and amortization expense, higher other expense which included impairment charges relating to our Bell Media segment, an increase in finance costs and higher severance, acquisition and other costs, partly offset by higher operating revenues, which resulted in higher adjusted EBITDA and lower income taxes. The average number of BCE common shares outstanding increased principally as a result of shares issued for the acquisition of MTS.
Free cash flow growth	Approx. 5%–10%	6.0%	Increase in free cash flow of $192 million in 2017 was driven by higher cash flows from operating activities excluding voluntary DB pension plan contributions, partly offset by higher capital expenditures.
Annualized common dividend per share	$2.87	$2.87	Annualized BCE common dividend per share for 2017 increased by 14 cents, or 5.1%, to $2.87 compared to $2.73 per share in 2016.
Dividend payout ratio	65%–75% of free cash flow	73.5%	Dividend payout ratio in 2017 increased by 2% from 71.5% to 73.5%.

3.2 Business outlook and assumptions

OUTLOOK

BCE’s 2018 outlook builds on the solid financial results achieved in 2017 that reflected higher wireless postpaid subscriber net additions and profitability; positive wireline adjusted EBITDA growth; an expanded direct fibre footprint offering more competitive Internet speeds; operating cost reductions at Bell Media to help offset content cost growth; and further integration synergies from the MTS acquisition.

Our projected financial performance for 2018 is underpinned by continued execution of our six strategic imperatives in a highly competitive and dynamic market. Growth in adjusted EBITDA, including the incremental financial contribution of Bell MTS in the first quarter of 2018, is expected to drive higher free cash flow generation, providing a strong and stable foundation for a higher BCE common share dividend for 2018, as well as continued significant capital investment in broadband fibre and wireless network infrastructure to support future growth.

(1) Adjusted EPS is a non-GAAP financial 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 and key performance indicators (KPIs) – Adjusted net earnings and adjusted EPS in this MD&A for more details, including a reconciliation to the most comparable IFRS financial measure.

44   BCE Inc.   2017 ANNUAL REPORT
	3	MD&A	Performance targets, outlook, assumptions and risks

The key 2018 operational priorities for BCE are to:

• Maintain market share of incumbent wireless postpaid net additions
• Drive continued adoption of mobile smartphone handsets, tablets and data applications, as well as the introduction of more 4G LTE and LTE-A devices and new data services
• Optimize wireless operating profitability through wireless subscriber base expansion and higher blended ARPU, driven by a higher postpaid smartphone mix, increased data consumption on 4G LTE and LTE-A networks, and higher access rates
• Further expand our LTE-A mobile network coverage to approximately 92% of the Canadian population
• Increase our FTTP footprint by approximately 800,000 homes and businesses to 4.5 million locations
• Achieve positive full-year wireline adjusted EBITDA growth through further growth of our residential IPTV and Internet subscriber bases, higher household ARPU from increased penetration of multi-product households and price increases, and realization of further Bell MTS operating cost synergies
• Increase revenue generation from monetization of content rights and Bell Media properties across all platforms, while controlling TV programming and premium content cost escalation
• Continue scaling Bell Media’s CraveTV on-demand streaming service
• Realize operating cost savings from workforce attrition and retirements, lower contracted rates from our suppliers, reduction in traffic that is not on our wireline network, broader deployment of FTTP, and customer service improvements

Our projected financial performance for 2018 enabled us to increase the annualized BCE common share dividend for 2018 by 15 cents, or 5.2%, to $3.02 per share, maintaining our dividend payout ratio within our target policy range of 65% to 75% of free cash flow.

ASSUMPTIONS

ASSUMPTIONS ABOUT THE CANADIAN ECONOMY

• Gradual slowdown in economic growth, given the Bank of Canada’s most recent estimated growth in Canadian gross domestic product of 2.2% in 2018
• Employment gains expected to slow in 2018, as the overall level of business investment is expected to remain soft
• Interest rates expected to increase in 2018
• Canadian dollar expected to remain at or around near current levels. Further movements may be impacted by the degree of strength of the U.S. dollar, interest rates and changes in commodity prices

MARKET ASSUMPTIONS

• A higher level of wireline and wireless competition in consumer, business and wholesale markets
• Higher, but slowing, wireless industry penetration and smartphone adoption
• A soft media advertising market expected, due to variable demand, and escalating costs to secure TV programming
• Ongoing linear TV subscriber erosion expected, due to growing cord-cutter and cord-never customer segments

3.3 Principal business risks

Provided below is a summary description of certain of our principal business risks that could have a material adverse effect on all of our segments. Certain additional business segment-specific risks are reported in section 5, Business segment analysis. For a detailed description of the principal risks relating to our regulatory environment and a description of the other principal business risks that could have a material adverse effect on our financial position, financial performance, cash flows, business or reputation, refer to section 8, Regulatory environment, and section 9, Business risks, respectively.

COMPETITIVE ENVIRONMENT

As the scope of our businesses increases and evolving technologies drive new services, delivery models and strategic partnerships, our competitive landscape expands to include new and emerging competitors, certain of which were historically our partners or suppliers, as well as other global scale competitors including, in particular, OTT TV service and voice over Internet protocol (VoIP) providers and other web-based and OTT players which are penetrating the telecommunications space. Pricing and investment decisions of market participants are based on many factors, such as strategy, market position, technology evolution, customer confidence and economic climate, and collectively these factors could adversely affect our market shares, service volumes and pricing strategies and, consequently, our financial results. Technology substitution, IP networks and recent regulatory decisions, 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 financial, marketing, human, technological and network resources than has historically been required. In particular, some competitors sell their services through the use of our networks as a result of regulatory requirements applicable to us, without the need to invest to build their own networks. Such lower necessary investment has enabled some competitors to be very disruptive in their pricing. Moreover, foreign OTT players such as Netflix are currently not subject to the same taxation obligations as those imposed on Canadian domestic digital suppliers, which provides them with a competitive advantage over us. We expect these trends to continue in the future and the increased competition we face as a result could negatively impact our business including, without limitation, in the following ways:

• Competitors’ aggressive market offers could result in pricing pressures, lower margins and increased costs of customer acquisition and retention, and our market shares and sales volumes could decrease if we do not match competitors’ pricing levels or increase customer acquisition and retention costs
• Higher Canadian wireless penetration could slow opportunities for new customer acquisition
• Product substitutions and spending rationalization by business customers could result in an acceleration of NAS erosion beyond our current expectations

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3	MD&A	Performance targets, outlook, assumptions and risks

• The continued OTT-based substitution and market expansion of VoIP service providers and traditional software players delivering low-cost voice line alternatives, which is changing our approach to service offers and pricing, could have an adverse effect on our business
• A fundamental separation of content and connectivity has emerged, allowing the expansion and market penetration of low-cost OTT TV providers and other alternative service providers, some of which may offer content as loss leaders to support their core business, which is changing our TV and media ecosystems, could lower our revenue streams and could affect our business negatively
• Competition with global competitors such as Netflix and Amazon, in addition to traditional Canadian competitors, for programming content could drive significant increases in content acquisition costs as these competitors, along with other global scale entities such as Google, disrupt local market dynamics as a result of innovative and flexible global market strategies
• Adverse economic conditions, such as economic downturns or recessions, adverse conditions in the financial markets, or a declining level of retail and commercial activity could have a negative impact on the demand for, and prices of, our wireline, wireless and media products and services, as well as drive an increase in bad debts as the creditworthiness of some customers declines
• Regulatory decisions regarding wholesale access to our wireless and fibre networks could bring new competitors or strengthen the market position of current competitors
• An increasing number of off-contract customers could increase customer acquisition activity and churn in the Canadian wireless market
• Foreign competitors could enter the Canadian market and leverage their global scale advantage

For a further discussion of our competitive environment and competition risk, as well as a list of our main competitors, on a segmented basis, refer to Competitive landscape and industry trends and Principal business risks in section 5, Business segment analysis.

REGULATORY ENVIRONMENT

Although most of our retail services are not price-regulated, government agencies and departments such as the CRTC, Innovation, Science and Economic Development Canada (ISED), Canadian Heritage and the Competition Bureau continue to play a significant role in regulatory matters such as mandatory access to networks, spectrum auctions, approval of acquisitions, broadcast licensing and foreign ownership requirements. As with all regulated organizations, planned strategies are contingent upon regulatory decisions. Adverse decisions by regulatory agencies or increased regulation could have negative financial, operational, reputational or competitive consequences for our business. For a discussion of our regulatory environment and the principal risks related thereto, refer to section 8, Regulatory environment.

SECURITY MANAGEMENT

Our operations, service performance and reputation depend on how well we protect our physical and non-physical assets, including networks, IT systems, offices, corporate stores and sensitive information, from events and attacks such as those referred to in section 9, Business risks – Operational performance – Our operations and business continuity depend on how well we protect, test, maintain and replace our networks, IT systems, equipment and other facilities. The protection and effective organization of our systems, applications and information repositories are central to the secure and continuous operation of our networks and business as electronic and physical records of proprietary business and personal data, such as confidential customer and employee information, are all sensitive from a market and privacy perspective. In particular, cyber attacks are constantly evolving and becoming more frequent and our IT defences need to be constantly monitored and adapted to respond to them. Cyber attacks include, but are not limited to, hacking, computer viruses, denial of service attacks, industrial espionage, unauthorized access to confidential, proprietary or sensitive information, phishing or other attacks on network or IT security. We are also exposed to cyber threats as a result of actions that may be taken by our customers, suppliers, employees or independent third parties, whether malicious or not, including as a result of the use of social media, cloud-based solutions and IT consumerization. Vulnerabilities could harm our brand and reputation and adversely affect customer and investor confidence as well as our financial results given that they may lead to:

• Network operating failures and service disruptions, which could directly impact our customers’ ability to maintain normal business operations and deliver critical services and/or the ability of third-party suppliers to deliver critical services to us
• Unauthorized access to proprietary or sensitive information about our business
• Theft, loss, leakage, destruction or corruption of data and confidential information, including personal information about our customers or employees, that could result in financial loss, exposure to claims for damages by customers, employees and others, and difficulty in accessing materials to defend legal cases
• Physical damage to network assets impacting service continuity
• Litigation, fines and liability for failure to comply with privacy and information security laws
• Fines and sanctions from credit card providers for failing to comply with payment card industry data security standards for protection of cardholder data
• Regulatory investigations and increased audit and regulatory scrutiny that could divert resources from project delivery
• Increased fraud as criminals leverage stolen information against us, our employees or our customers
• The potential for loss of subscribers or impairment of our ability to attract new ones
• Lost revenues due to service disruptions and the incurrence of remediation costs
• Higher insurance premiums

In addition, cyber attacks and other security breaches affecting our suppliers or other business partners could also adversely affect our operations and financial results.

Although we evaluate and seek to adapt our security policies, procedures and controls that are designed to protect our assets, there is no assurance that these will prevent the occurrence of material cybersecurity breaches, intrusions or attacks, or that any insurance we may have will cover the costs, damages, liabilities or losses that could result therefrom.

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	4	MD&A	Consolidated financial analysis

4 Consolidated financial analysis

This section provides detailed information and analysis about BCE’s performance in 2017 compared with 2016. It focuses on BCE’s consolidated operating results and provides financial information for our Bell Wireless, Bell Wireline and Bell Media business segments. For further discussion and analysis of our business segments, refer to section 5, Business segment analysis.

4.1 Introduction

BCE CONSOLIDATED INCOME STATEMENTS

	2017		2016		$ CHANGE		% CHANGE
Operating revenues
Service	21,143		20,090		1,053		5.2	%
Product	1,576		1,629		(53	)	(3.3	%)
Total operating revenues	22,719		21,719		1,000		4.6	%
Operating costs	(13,541	)	(12,931	)	(610	)	(4.7	%)
Adjusted EBITDA	9,178		8,788		390		4.4	%
Adjusted EBITDA margin	40.4	%	40.5	%			(0.1	) pts
Severance, acquisition and other costs	(190	)	(135	)	(55	)	(40.7	%)
Depreciation	(3,037	)	(2,877	)	(160	)	(5.6	%)
Amortization	(813	)	(631	)	(182	)	(28.8	%)
Finance costs
Interest expense	(955	)	(888	)	(67	)	(7.5	%)
Interest on post-employment benefit obligations	(72	)	(81	)	9		11.1	%
Other (expense) income	(102	)	21		(123	)	n.m.
Income taxes	(1,039	)	(1,110	)	71		6.4	%
Net earnings	2,970		3,087		(117	)	(3.8	%)
Net earnings attributable to:
Common shareholders	2,786		2,894		(108	)	(3.7	%)
Preferred shareholders	128		137		(9	)	(6.6	%)
Non-controlling interest	56		56		–		–
Net earnings	2,970		3,087		(117	)	(3.8	%)
Adjusted net earnings	3,033		3,009		24		0.8	%
Net earnings per common share (EPS)	3.12		3.33		(0.21	)	(6.3	%)
Adjusted EPS	3.39		3.46		(0.07	)	(2.0	%)

n.m.: not meaningful

Total operating revenues at BCE increased by 4.6%, compared to last year, reflecting higher service revenues of 5.2%, moderated by a decline in product revenues of 3.3%. The year-over-year increase in service revenues was driven by growth across all three of our segments, led by continued strength from Bell Wireless and higher Internet, IPTV and media subscription revenues, as well as reflecting the contributions from the acquisitions of MTS on March 17, 2017 and Q9 in Q4 2016. The growth in service revenues was moderated by the continued erosion in voice, satellite TV and legacy data revenues, including reduced customer spending and competitive pricing pressures in our business market, regulatory pressures impacting all three of our segments, and lower advertising revenues at Bell Media due to ongoing market softness.

Net earnings in 2017 decreased 3.8%, compared to 2016, due to higher depreciation and amortization expense, higher other expense which included impairment charges of $82 million relating to our Bell Media segment, an increase in finance costs and higher severance, acquisition and other costs which included costs related to the acquisition of MTS. This was partly offset by higher adjusted EBITDA, as growing revenues more than offset an increase in operating costs, and by lower income taxes.

2017 adjusted EBITDA grew by 4.4% with a corresponding adjusted EBITDA margin of 40.4% as a result of year-over-year increases in our Bell Wireless and Bell Wireline segments, offset by a decline in our Bell Media segment. The year-over-year increase in adjusted EBITDA was driven by the flow-through of the service revenue growth, the contribution from our acquisitions and continued effective cost management. This was moderated by higher investment in customer retention and acquisition at Bell Wireless and escalating content and programming costs at Bell Media.

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4	MD&A	Consolidated financial analysis

BCE STATEMENTS OF CASH FLOWS – SELECTED INFORMATION

	2017		2016		$ CHANGE		% CHANGE
Cash flows from operating activities	7,358		6,643		715		10.8	%
Capital expenditures	(4,034	)	(3,771	)	(263	)	(7.0	%)
Free cash flow	3,418		3,226		192		6.0	%

In 2017, BCE’s cash flows from operating activities, which included the contributions from the MTS acquisition, increased $715 million, compared to 2016, due mainly to higher adjusted EBITDA, a lower voluntary DB pension plan contribution made in 2017, improved working capital and lower severance and other costs paid, partly offset by higher income taxes paid and higher interest payments.

Free cash flow increased $192 million in 2017, compared to 2016, due to higher cash flows from operating activities excluding voluntary DB pension plan contributions, partly offset by higher capital expenditures.

4.2 Customer connections

TOTAL BCE CONNECTIONS

	2017	2016	% CHANGE
Wireless subscribers(1)	9,166,787	8,468,872	8.2	%
Postpaid(1)	8,418,650	7,690,727	9.5	%
High-speed Internet subscribers(1) (2)	3,790,141	3,476,562	9.0	%
TV (satellite and IPTV subscribers)(1)	2,832,300	2,744,909	3.2	%
IPTV(1)	1,550,317	1,337,944	15.9	%
Total growth services	15,789,228	14,690,343	7.5	%
Wireline NAS lines(1)	6,320,483	6,257,732	1.0	%
Total services	22,109,711	20,948,075	5.5	%

(1)

As a result of the acquisition of MTS on March 17, 2017, our wireless, high-speed Internet, TV and NAS subscriber bases increased by 476,932(418,427 postpaid), 229,470, 108,107 (104,661 IPTV) and 419,816 (223,663 residential and 196,153 business) subscribers, respectively. Subsequently, in Q2 2017, Bell’s wireless subscriber base reflected the divestiture of 104,833 postpaid subscribers to TELUS related to BCE’s acquisition of MTS. Bell’s wireless subscriber base in Q2 2017 also reflected the removal of 7,268 subscribers (2,450 postpaid and 4,818 prepaid) due to the decommissioning of the CDMA network in western Canada.

(2)

Following a review of customer accounts by a wholesale reseller, we adjusted our high-speed Internet subscriber base at the beginning of Q1 2017 to remove 3,751 non-revenue generating units.

BCE NET ACTIVATIONS

	2017		2016		% CHANGE
Wireless subscribers	333,084		223,041		49.3	%
Postpaid	416,779		315,311		32.2	%
High-speed Internet subscribers	87,860		85,099		3.2	%
TV (satellite and IPTV subscribers)	(20,716	)	6,413		(423.0	%)
IPTV	107,712		155,153		(30.6	%)
Total growth services	400,228		314,553		27.2	%
Wireline NAS lines	(357,065	)	(415,408	)	14.0	%
Total services	43,163		(100,855	)	142.8	%

BCE added 400,228 net new customer connections to its growth services in 2017, representing a 27.2% improvement over 2016. This consisted of:

• 416,779 postpaid wireless customers, and the net loss of 83,695 prepaid wireless customers
• 87,860 high-speed Internet customers
• 107,712 IPTV customers and 128,428 satellite TV net customer losses

NAS net losses were 357,065 in 2017, an improvement of 14.0% over 2016.

Total BCE customer connections across all services increased by 5.5% in 2017 compared to last year, driven by the subscribers acquired as part of the acquisition of MTS, as well as increases in our growth services customer base, offset in part by the continued but moderating erosion in traditional NAS lines.

At the end of 2017, BCE customer connections totaled 22,109,711 and were comprised of the following:

• 9,166,787 wireless subscribers, up 8.2% compared to 2016, and included 8,418,650 postpaid wireless subscribers, an increase of 9.5% compared to the prior year
• 3,790,141 high-speed Internet subscribers, 9.0% higher year over year
• 2,832,300 total TV subscribers, up 3.2% compared to 2016, and included 1,550,317 IPTV customers, up 15.9% year over year
• 6,320,483 total NAS lines, an increase of 1.0% compared to 2016

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4.3 Operating revenues

	2017		2016		$ CHANGE		% CHANGE
Bell Wireless	7,883		7,159		724		10.1	%
Bell Wireline	12,415		12,104		311		2.6	%
Bell Media	3,104		3,081		23		0.7	%
Inter-segment eliminations	(683	)	(625	)	(58	)	(9.3	%)
Total BCE operating revenues	22,719		21,719		1,000		4.6	%

BCE

Total operating revenues at BCE increased by 4.6% in 2017, compared to 2016, reflecting growth across all three of our segments. This was comprised of service revenues of $21,143 million in 2017, which grew by 5.2% compared to 2016, and product revenues of $1,576 million, which declined by 3.3% year over year.

BELL WIRELESS

Bell Wireless operating revenues increased by 10.1% in 2017, compared to last year, driven by both higher service and product revenues. Service revenues grew by 10.7%, reflecting a larger postpaid subscriber base, higher blended ARPU and the contribution from the acquisition of MTS. The growth in blended ARPU was driven by the greater proportion of postpaid customers in our total subscriber base, higher average monthly rates due to the flow-through of 2016 pricing changes, and higher smartphone penetration along with a growing base of postpaid LTE and LTE-A customers in our subscriber mix, driving up data consumption and demand for larger data plans. This was partially offset by the unfavourable impact of Telecom Decision CRTC 2016-171 (Telecom Decision CRTC 2016-171), issued by the CRTC on May 5, 2016, related to 30-day cancellation policies, which clarified that service providers must provide pro-rated refunds, based on the number of days left in the last monthly billing cycle after cancellation, certain aspects of which are currently the subject matter of an application for clarification by TELUS Communications Company pursuant to the Telecommunications Act and Part 1 of the CRTC Rules of Practice. The year-over-year growth in service revenues was also moderated by the increased adoption of all-inclusive voice and text rate plans resulting in lower out of bundle usage. Product revenues increased by 3.1%, mainly due to the greater proportion of premium devices in our sales mix, higher customer upgrades and gross activations, and the contribution from the acquisition of MTS, partially offset by greater promotional offers due to a highly competitive marketplace.

BELL WIRELINE

Bell Wireline operating revenues increased by 2.6% in 2017, compared to last year, driven by service revenue growth of 3.4%, offset in part by a decrease in product revenues of 5.9%. The growth in service revenues was attributable to the acquisitions of MTS and Q9, Internet and IPTV subscriber growth combined with higher household ARPU. The growth in revenues was moderated by the continued erosion in our voice, satellite TV and legacy data services, increased acquisition, retention and bundle discounts to match aggressive offers from cable competitors and regulatory pressures due to unfavourable CRTC rulings in 2016 relating to Internet tariffs for aggregated wholesale high-speed access services and Telecom Decision CRTC 2016-171. The decline in product revenues was driven by lower demand for equipment by large business customers, attributable to market softness and competitive pricing pressures, as well as lower sales of consumer electronics at The Source, partly offset by the favourable contribution from the MTS acquisition.

BELL MEDIA

Bell Media operating revenues increased by 0.7% in 2017, compared to 2016, due to higher subscriber revenues driven by growth in our subscriber base from our TV Everywhere GO Products and CraveTV, rate increases on contract renewals and the benefit from the expansion of TMN into a national pay TV service in March 2016. This was partially offset by lower advertising revenues mainly due to continued market softness and declines in audience levels across both conventional and specialty TV and radio media platforms, as well as reflecting the negative impact on conventional TV advertising revenues from the CRTC’s decision to eliminate simultaneous substitution for the NFL Super Bowl. The decline in advertising revenues was moderated by growth in OOH advertising revenues as a result of the contribution from the Cieslok Media Ltd. (Cieslok Media) acquisition in January 2017 and from newly awarded contracts.

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4	MD&A	Consolidated financial analysis

4.4 Operating costs

	2017		2016		$ CHANGE		% CHANGE
Bell Wireless	(4,607	)	(4,156	)	(451	)	(10.9	%)
Bell Wireline	(7,229	)	(7,062	)	(167	)	(2.4	%)
Bell Media	(2,388	)	(2,338	)	(50	)	(2.1	%)
Inter-segment eliminations	683		625		58		9.3	%
Total BCE operating costs	(13,541	)	(12,931	)	(610	)	(4.7	%)

(1)	Cost of revenues includes costs of wireless devices and other equipment sold, network and content costs, and payments to other carriers.
(2)	Labour costs (net of capitalized costs) include wages, salaries and related taxes and benefits, post-employment benefit plans service cost, 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.

BCE

Total BCE operating costs increased by 4.7% in 2017, compared to 2016, resulting from higher costs in all three of our segments.

BELL WIRELESS

Bell Wireless operating costs increased by 10.9% in 2017, compared to last year, as a result of:

• Increased customer retention spending primarily from greater promotional pricing driven by a competitive market, a higher proportion of premium smartphone devices in our upgrade mix, increased handset costs and an increase in the volume of subsidized upgrades reflecting a greater number of contract expiries
• Higher subscriber acquisition costs due to greater promotional pricing driven by a highly competitive market, a larger proportion of high-end smartphones in our sales mix, increased handset costs, a larger proportion of postpaid gross activations in our mix and increased gross activations
• The acquisition of MTS
• Increased network operating costs driven by higher LTE and LTE-A network usage
• Increased labour costs to support the growth of the business

BELL WIRELINE

Bell Wireline operating costs increased by 2.4% in 2017, compared to 2016, as a result of:

• The acquisitions of MTS and Q9
• Greater programming costs in our TV business due to the growth in our subscriber base and contractual rate increases
• Increased fleet expenses from higher fuel and refurbishment costs
• Greater marketing and sales expense in our retail market to support subscriber acquisitions

These factors were partially offset by:

• Lower labour costs attributable to workforce reductions, vendor contract savings, as well as fewer call volumes to our customer service centres
• Reduced cost of goods sold resulting from lower product sales
• Lower payments to other carriers driven by fewer sales of international long distance minutes
• Reduced bad debt expense

BELL MEDIA

Bell Media operating costs increased by 2.1% in 2017, compared to last year, mainly due to higher programming and content costs from the ongoing ramp up of content for CraveTV and pay TV services, deal renewals for specialty TV programming, content costs associated with TMN national expansion, escalating costs for sports rights as well as higher OOH expenses resulting from the Cieslok Media acquisition and the execution of newly awarded contracts. This increase in operating costs was partially mitigated by reduced labour costs driven mainly by workforce reductions.

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4.5 Net earnings

In 2017, net earnings decreased by 3.8%, compared to 2016, due to higher depreciation and amortization expense, higher other expense which included impairment charges of $82 million relating to our Bell Media segment, an increase in finance costs and higher severance, acquisition and other costs which included costs related to the acquisition of MTS. This was partly offset by higher adjusted EBITDA, as growing revenues more than offset an increase in operating costs, and by lower income taxes.

4.6 Adjusted EBITDA

	2017	2016	$ CHANGE		% CHANGE
Bell Wireless	3,276	3,003	273		9.1	%
Bell Wireline	5,186	5,042	144		2.9	%
Bell Media	716	743	(27	)	(3.6	%)
Total BCE adjusted EBITDA	9,178	8,788	390		4.4	%

BCE

BCE’s adjusted EBITDA increased by 4.4% in 2017, compared to 2016, driven by growth in our Bell Wireless and Bell Wireline segments, offset in part by a decline in our Bell Media segment. This resulted in a relatively stable adjusted EBITDA margin of 40.4% compared to 40.5% experienced last year.

The growth in adjusted EBITDA reflected higher wireless, Internet, IPTV and media revenues, the contribution from the acquisitions of MTS and Q9 and effective cost management. This was offset in part by the ongoing erosion in our voice, satellite TV and legacy data revenues, greater investment in wireless subscriber retention and acquisition, regulatory pressures impacting all three of our segments, as well as higher programming and content costs in our Bell Media segment.

BELL WIRELESS

Bell Wireless adjusted EBITDA increased by 9.1% in 2017, compared to last year, reflecting the flow-through of higher operating revenues from the continued growth in our subscriber base and in blended ARPU along with the contribution from the acquisition of MTS, moderated by higher year-over-year operating expenses primarily driven by our increased investment in customer retention and acquisition together with the incremental expense contribution from Bell MTS. Adjusted EBITDA margin, based on wireless operating service revenues, declined by 0.6 pts to 44.6%, in 2017, compared to 45.2% in the prior year.

BELL WIRELINE

Bell Wireline adjusted EBITDA increased by 2.9% in 2017, compared to 2016, resulting from the acquisitions of MTS and Q9, growth in our Internet and IPTV businesses, as well as reflecting disciplined cost containment. This was partly offset by the continued decline of voice, satellite TV and legacy data revenues, including the effect of reduced customer spending and competitive pressures in our business market and the impact of regulatory pressures.

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4	MD&A	Consolidated financial analysis

BELL MEDIA

Bell Media adjusted EBITDA decreased by 3.6% in 2017, compared to the previous year, due to higher programming and content costs and flow-through of the advertising revenue decline which included the unfavourable impact of the CRTC’s decision to eliminate simultaneous substitution for the NFL Super Bowl. This was moderated by continued growth in subscriber revenues and lower labour costs.

4.7 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.

2017

Severance, acquisition and other costs included:

• Severance costs related to workforce reduction initiatives of $79 million
• Acquisition and other costs of $111 million, which included transaction costs, such as legal and financial advisory fees, related to completed or potential acquisitions, severance and integration costs as well as a loss on transfer of spectrum licences to Xplornet Communications Inc. related to the MTS acquisition

2016

Severance, acquisition and other costs included:

• Severance costs related to workforce reduction initiatives of $87 million
• Acquisition and other costs of $48 million, which included transaction costs, such as legal and financial advisory fees, related to completed or potential acquisitions, as well as severance and integration costs relating to the privatization of Bell Aliant

4.8 Depreciation and amortization

The amount of our depreciation and amortization 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

DEPRECIATION

Depreciation in 2017 increased by $160 million, compared to 2016, mainly due to the acquisition of MTS and a higher asset base as we continued to invest in our broadband and wireless networks as well as our IPTV service. The increase was partly offset by lower depreciation due to an increase in the estimate of useful lives of certain assets as a result of our ongoing annual review process. The changes in useful lives have been applied prospectively, effective January 1, 2017, and did not have a significant impact on our financial statements.

AMORTIZATION

Amortization in 2017 increased by $182 million, compared to 2016, due mainly to the acquisition of MTS and a higher asset base.

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	4	MD&A	Consolidated financial analysis

4.9 Finance costs

INTEREST EXPENSE

Interest expense in 2017 increased by $67 million, compared to 2016, mainly as a result of higher average debt levels due in part to the acquisition of MTS, partly offset by lower average interest rates.

INTEREST ON POST-EMPLOYMENT BENEFIT OBLIGATIONS

Interest on our post-employment benefit obligations is based on market conditions that existed at the beginning of the year. On January 1, 2017, the discount rate was 4.0% compared to 4.2% on January 1, 2016.

In 2017, interest expense decreased by $9 million, compared to last year, due to a lower post-employment benefit obligation at the beginning of the year.

The impacts of changes in market conditions during the year are recognized in other comprehensive income (loss) (OCI).

4.10 Other (expense) income

Other (expense) income includes income and expense items, such as:

• Net mark-to-market gains or losses on derivatives used as economic hedges
• Impairment of assets
• Losses on disposal and retirement of software, plant and equipment
• Equity (loss) income from investments in associates and joint ventures
• Early debt redemption costs
• Net gains (losses) on investments, including gains (losses) when we dispose of, write down or reduce our ownership in investments

2017

Other expense of $102 million included impairment charges of $82 million related to our music TV channels and two small market radio station cash-generating units (CGUs) within our Bell Media segment, losses on retirements and disposals of property, plant and equipment and intangible assets of $47 million, losses from our equity investments of $31 million which included BCE’s share of an obligation to repurchase at fair value the minority interest in one of BCE’s joint ventures, early debt redemption costs of $20 million, partly offset by net mark-to-market gains on derivatives used as economic hedges of share-based compensation and U.S. dollar purchases of $88 million.

2016

Other income of $21 million included net mark-to-market gains of $67 million on derivatives used as economic hedges of share-based compensation and U.S. dollar purchases and gains on investments of $58 million which included a gain related to one of our equity investments of $34 million, as well as a gain of $12 million due to the remeasurement of BCE’s previously held equity interest in Q9 to its fair value. These were partly offset by losses of $89 million on equity investments which included BCE’s share of the loss recorded by one of our equity investments on the sale of a portion of their operations of $46 million and $11 million equity losses on our share of an obligation to repurchase at fair value the minority interest in one of BCE’s joint ventures. Additionally, BCE recorded losses of $28 million on disposal of property, plant and equipment and intangible assets.

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4	MD&A	Consolidated financial analysis

4.11 Income taxes

The following table provides information and reconciles the amount of reported income taxes in the income statements with income taxes calculated at a statutory income tax rate of 27.1% for 2017 and 2016.

FOR THE YEAR ENDED DECEMBER 31	2017		2016
Net earnings	2,970		3,087
Add back income taxes	1,039		1,110
Earnings before income taxes	4,009		4,197
Applicable statutory tax rate	27.1	%	27.1	%
Income taxes computed at applicable statutory rates	(1,086	)	(1,137	)
Non-taxable portion of (losses) gains on investments	(1	)	11
Uncertain tax positions	16		(9	)
Effect of change in provincial corporate tax rate	(3	)	4
Change in estimate relating to prior periods	51		46
Non-taxable portion of equity losses	(10	)	(23	)
Other	(6	)	(2	)
Total income taxes	(1,039	)	(1,110	)
Average effective tax rate	25.9	%	26.4	%

4.12 Net earnings attributable to common shareholders and EPS

Net earnings attributable to common shareholders in 2017 decreased by $108 million, compared to 2016, due to higher depreciation and amortization expense, higher other expense which included impairment charges of $82 million relating to our Bell Media segment, an increase in finance costs and higher severance, acquisition and other costs which included costs related to the acquisition of MTS. This was partly offset by higher adjusted EBITDA, as growing revenues more than offset an increase in operating costs, and by lower income taxes.

BCE’s EPS of $3.12 in 2017 decreased by $6.3% compared to 2016. The average number of BCE common shares outstanding increased principally as a result of shares issued for the acquisition of MTS which further diluted EPS as compared to 2016.

Excluding the impact of severance, acquisition and other costs, net (losses) gains on investments, early debt redemption costs and impairment charges, adjusted net earnings in 2017 was $3,033 million, or $3.39 per common share, compared to $3,009 million, or $3.46 per common share in 2016.

54   BCE Inc.   2017 ANNUAL REPORT
	4	MD&A	Consolidated financial analysis

4.13 Capital expenditures

BCE capital expenditures were up $263 million, or 7.0%, in 2017, compared to 2016, driven by greater spending at Bell Wireline and Bell Media, while spending at Bell Wireless remained relatively stable. As a percentage of revenue, capital expenditures for BCE were 17.8% in 2017 compared to 17.4% last year. Our capital spending supported the continued deployment of our broadband fibre directly to more homes and businesses, including the rollout of Gigabit Fibe infrastructure in the city of Toronto and other urban areas along with the commencement of the FTTP build-out in the city of Montréal that was announced on March 27, 2017. Our capital investments also included the continued rollout of our 4G LTE and LTE-A mobile networks, as well as the enhancement and expansion of our wireless network to increase network speeds and to support the growth in our subscriber base and data consumption.

4.14 Cash flows

In 2017, BCE’s cash flows from operating activities, which included the contributions from the MTS acquisition, increased $715 million, compared to 2016, due mainly to higher adjusted EBITDA, a lower voluntary DB pension plan contribution made in 2017, improved working capital and lower severance and other costs paid, partly offset by higher income taxes paid and higher interest payments.

Free cash flow increased $192 million in 2017, compared to 2016, due to higher cash flows from operating activities excluding voluntary DB pension plan contributions, partly offset by higher capital expenditures.

BCE Inc.   2017 ANNUAL REPORT   55
5	MD&A	Bell Wireless

5 Business segment analysis

5.1 Bell Wireless

In 2017, we achieved the highest market share of postpaid subscriber net additions in the Canadian wireless industry and delivered a fifth consecutive year of industry-leading wireless service revenue and adjusted EBITDA growth among incumbent national carriers.

KEY ELEMENTS OF RELEVANT STRATEGIC IMPERATIVES

Invest in broadband
networks and services

2017 PROGRESS

• Expanded our 4G LTE wireless network to reach 99% of the Canadian population coast to coast with download speeds ranging from 75 Mbps to 150 Mbps (expected average download speeds of 12 to 40 Mbps)
• Continued the rollout of our LTE-A wireless network, providing service to approximately 87% of the Canadian population at data speeds up to 260 Mbps (expected average download speeds of 18 to 74 Mbps). In addition, our Tri-band LTE-A footprint covered 34% of the population with download speeds of up to 335 Mbps (expected average download speeds of 25 to 100 Mbps).
• Launched North America’s first Quad-band LTE-A network deployment capable of delivering theoretical speeds of up to 750 Mbps (expected average download speeds of 25 to 230 Mbps in select areas). Bell’s Quad Band service expanded to 23% of Canadians, encompassing 91 cities.

2018 FOCUS

• Expand LTE-A network footprint to approximately 92% of the Canadian population
• Deploy Quad-band LTE-A to approximately 60% of the Canadian population enabling theoretical speeds up to 750 Mbps (average expected speeds of 25 to 230 Mbps)
• Increase LTE-A peak theoretical speeds to 950 Mbps with 4×4 MIMO (Multiple Input Multiple Output) technology in select urban areas covering approximately 40% of the Canadian population
• Increase small cell deployment and in-building coverage to increase urban densification and support evolution to 5G services
• Launch an LTE-M wireless network to support the rapidly increasing use of IoT devices on LPWANs in Canada. LTE-M improves the operating efficiency of IoT devices by enabling very low power consumption and better coverage in underground and other hard to reach locations.

Accelerate
wireless

2017 PROGRESS

• Acquired 36% of total new postpaid gross and net activations among the three national wireless carriers, while achieving leading service revenue, ARPU and adjusted EBITDA growth of 10.7%, 3.5% and 9.1%, respectively
• Increased the number of postpaid subscribers on our LTE network to 88% of our total postpaid subscribers, up from 81% at the end of 2016
• Expanded our smartphone and tablet lineup with 40 new devices, including Apple’s iPhone X, 8 and 8 Plus and Apple Watch Series 3 with built-in cellular, the Samsung Galaxy S8 and S8+, the Samsung Galaxy Note8, Google’s Pixel 2 and Pixel 2 XL and the LG G6, adding to our extensive selection of 4G LTE and LTE-A devices
• Launched Lucky Mobile, an easy and low-cost prepaid wireless service for budget-conscious Canadians with monthly plans starting at just $20 for unlimited local calling. Initially available to consumers in Ontario, Alberta and British Columbia, Lucky Mobile offers service in 17 zones covering most major cities across the country, including data access at 3G-equivalent access speeds.
• Became the Government of Canada’s primary wireless supplier for the next six years, with options to renew. Bell will supply voice, text, and data services and approximately 230,000 mobile devices to federal employees in more than 100 departments and agencies.
• First Canadian wireless provider to support the LTE network capabilities of the Apple Watch Series 3. In addition to providing VoLTE technology, Bell launched NumberShare, a service that enables customers to pair their Apple Watch Series 3 with their iPhone using the same phone number.
• Launched the first integrated Advanced Messaging service on Samsung devices, offering a suite of mobile messaging features previously available through specialized third-party applications

56   BCE Inc.   2017 ANNUAL REPORT
	5	MD&A	Bell Wireless

• Took a leadership position in the fast-growing IoT sector, which enables the interconnection of a range of devices and applications that send and receive data
  • Bell MTS launched the Innovations in Agriculture program at the University of Manitoba, providing students with opportunities to develop innovative IoT technologies for application in agriculture and food science
  • Concluded an agreement with Hyundai AutoEver Telematics America (HATA), a subsidiary of Hyundai Motor Group, to deliver a range of connected telematics services including security, safety, diagnostics and infotainment to select Hyundai and Kia vehicles over Bell’s national mobile network
  • Partnered with BeWhere Technologies and Huawei to implement an automated IoT solution for the Henry of Pelham Family Estate Winery to help improve planning and sustainability programs
• First Canadian carrier to offer global connectivity for our leading-edge IoT platforms and applications. Bell’s Global IoT connectivity solutions offer our customers uninterrupted worldwide network access and the ability to manage all of their international devices remotely from a single web-based platform by embedding Bell’s Global SIM cards into their products.

2018 FOCUS

• Profitably grow our wireless postpaid subscriber base, while maintaining market share momentum of incumbent postpaid subscriber activations
• Continue to increase ARPU
• Offer the latest handsets and devices in a timely manner to enable customers to benefit from ongoing technological improvements by manufacturers and from faster data speeds to optimize the use of our services
• Continue to increase the number of postpaid smartphone subscribers using our 4G LTE and LTE-A networks
• Leverage Lucky Mobile to grow prepaid subscriber market share, while providing Canadians with affordable wireless service options
• Expand VoLTE technology coverage areas and broaden rollout to more supported devices
• Accelerate new revenue streams by continuing to drive the commercialization of IoT services and applications
  • In February 2018, we partnered with the city of Kingston to employ Bell’s Smart City platform to provide a series of connected IoT applications which will enable Kingston to digitize its operations and collect data to make better informed decisions and investments in city operations and infrastructure, benefiting constituents, internal departments and employees while improving citizen engagement

Improve
customer service

2017 PROGRESS

• Virgin Mobile was ranked highest in overall Customer Care Satisfaction in the J.D. Power 2017 Canadian Wireless Customer Care Study released in May, with top scores in the store, call centre and online service categories
• Improved wireless postpaid churn by 0.06 pts in 2017, driven by our investments in customer retention
• Introduced the Same Day/Next Day smartphone repairs pilot program in Ontario, resolving many common smartphone issues within a few hours with the help of certified technicians using manufacturer-approved parts
• Improved the MyBell app, achieving a four-star rating on the Apple App Store, and increased mobile transactions by 38% in 2017
• Launched a simplified wireless bill
• Increased the number of self-serve transactions by 15% in 2017

2018 FOCUS

• Continue to invest in customer service initiatives to simplify complexity for all customers, including billing
• Further reduce the total volume of customer calls to our call centres
• Further improve customer satisfaction scores
• Achieve better consistency in customer experience
• Continue to improve customer personalization

Achieve a competitive
cost structure

2017 PROGRESS

• Realized operating cost synergies from the integration of MTS
• Delivered cost savings from ongoing service improvements

2018 FOCUS

• Capture additional operating cost and capital expenditure synergies from the integration of Bell MTS
• Deliver cost savings from ongoing service improvements

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5	MD&A	Bell Wireless

FINANCIAL PERFORMANCE ANALYSIS

2017 PERFORMANCE HIGHLIGHTS

(1) As a result of the acquisition of MTS on March 17, 2017, our wireless subscriber base in Q1 2017 increased by 476,932 subscribers (418,427 postpaid). Subsequently, in Q2 2017, Bell’s wireless subscriber base reflected the divestiture of 104,833 postpaid subscribers to TELUS related to BCE’s acquisition of MTS. Bell’s wireless subscriber base in Q2 2017 also reflected the removal of 7,268 subscribers (2,450 postpaid and 4,818 prepaid) due to the decommissioning of the CDMA network in western Canada.

BELL WIRELESS RESULTS

REVENUES

	2017	2016	$ CHANGE	% CHANGE
External service revenues	7,308	6,602	706	10.7	%
Inter-segment service revenues	42	40	2	5.0	%
Total operating service revenues	7,350	6,642	708	10.7	%
External product revenues	530	515	15	2.9	%
Inter-segment product revenues	3	2	1	50.0	%
Total operating product revenues	533	517	16	3.1	%
Total Bell Wireless revenues	7,883	7,159	724	10.1	%

Bell Wireless operating revenues increased by 10.1% in 2017, compared to last year, driven by growth in both service and product revenues.

• Service revenues grew by 10.7% in 2017, compared to 2016, reflecting a larger postpaid subscriber base and higher blended ARPU, which included the contribution from the acquisition of MTS. Blended ARPU increased due to the greater proportion of postpaid customers in our total subscriber base, higher average monthly rates mainly driven by the flow-through of 2016 pricing changes and greater smartphone penetration along with a growing base of postpaid LTE and LTE-A customers in our subscriber mix, driving up data consumption and demand for larger data plans. The growth in service revenues was moderated by the unfavourable impact of Telecom Decision CRTC 2016-171 and the increased adoption of all-inclusive voice and text rate plans resulting in lower out of bundle usage.
• Product revenues increased by 3.1% in 2017, compared to last year, mainly due to the greater proportion of premium devices in our sales mix, higher customer upgrades and gross activations, and the contribution from the acquisition of MTS, partially offset by greater promotional offers due to a highly competitive marketplace.

58   BCE Inc.   2017 ANNUAL REPORT
	5	MD&A	Bell Wireless

OPERATING COSTS AND ADJUSTED EBITDA

	2017		2016		$ CHANGE		% CHANGE
Operating costs	(4,607	)	(4,156	)	(451	)	(10.9	%)
Adjusted EBITDA	3,276		3,003		273		9.1	%
Total adjusted EBITDA margin	41.6	%	41.9	%			(0.3	) pts
Adjusted EBITDA margin (service revenues)	44.6	%	45.2	%			(0.6	) pts

Bell Wireless operating costs increased by 10.9% in 2017, compared to last year, as a result of:

• Increased customer retention spending primarily from greater promotional pricing driven by a competitive market, a higher proportion of premium smartphone devices in our upgrade mix, increased handset costs and an increase in the volume of subsidized upgrades reflecting a greater number of contract expiries
• Higher subscriber acquisition costs due to greater promotional pricing driven by a highly competitive market, a larger proportion of high-end smartphones in our sales mix, increased handset costs, a larger proportion of postpaid gross activations in our mix and a higher number of gross activations
• The acquisition of MTS
• Increased network operating costs driven by higher LTE and LTE-A network usage
• Higher labour costs to support the growth of the business

Bell Wireless adjusted EBITDA increased by 9.1% in 2017, compared to last year, reflecting the flow-through of higher year-over-year operating revenues from the continued growth in our subscriber base and blended ARPU along with the contribution from the acquisition of MTS, offset in part by higher year-over-year operating expenses primarily driven by our increased investment in customer retention and acquisition, together with the incremental expense contribution from Bell MTS. Adjusted EBITDA margin, based on wireless operating service revenues, declined by 0.6 pts to 44.6%, in 2017, compared to 45.2% in the prior year.

BELL WIRELESS OPERATING METRICS

	2017		2016		CHANGE		% CHANGE
Blended ARPU ($/month)	67.77		65.46		2.31		3.5	%
Gross activations	1,780,478		1,654,882		125,596		7.6	%
Postpaid	1,532,425		1,408,030		124,395		8.8	%
Prepaid	248,053		246,852		1,201		0.5	%
Net activations	333,084		223,041		110,043		49.3	%
Postpaid	416,779		315,311		101,468		32.2	%
Prepaid	(83,695	)	(92,270	)	8,575		9.3	%
Blended churn % (average per month)	1.36	%	1.44	%			0.08	pts
Postpaid	1.19	%	1.25	%			0.06	pts
Prepaid	3.17	%	3.13	%			(0.04	) pts
Subscribers(1)	9,166,787		8,468,872		697,915		8.2	%
Postpaid(1)	8,418,650		7,690,727		727,923		9.5	%
Prepaid(1)	748,137		778,145		(30,008	)	(3.9	%)

(1) As a result of the acquisition of MTS on March 17, 2017, our wireless subscriber base in Q1 2017 increased by 476,932 subscribers (418,427 postpaid). Subsequently, in Q2 2017, Bell’s wireless subscriber base reflected the divestiture of 104,833 postpaid subscribers to TELUS related to BCE’s acquisition of MTS. Bell’s wireless subscriber base in Q2 2017 also reflected the removal of 7,268 subscribers (2,450 postpaid and 4,818 prepaid) due to the decommissioning of the CDMA network in western Canada.

Blended ARPU of $67.77 increased by 3.5% in 2017, compared to last year, driven by the greater proportion of postpaid customers in our total subscriber base, growth in postpaid ARPU reflecting the flow-through of 2016 pricing changes and a greater mix of customers with smartphones and other data devices in our total subscriber base increasing the demand for larger data plans due to greater data consumption from e-mail, web browsing, social networking, mobile banking, messaging, mobile TV, and entertainment services such as video streaming, music downloads and gaming. The growth in ARPU was also favourably impacted by greater data consumption driven by the higher speeds enabled by the continued expansion of our LTE and LTE-A networks. The year-over-year increase in blended ARPU was moderated by the negative impact of Telecom Decision CRTC 2016-171 along with the unfavourable impact of larger plans with higher data usage thresholds, unlimited local and long distance calling, and a greater mix of shared plans.

Total gross wireless activations increased by 7.6% in 2017, compared to last year, due to both higher postpaid and prepaid gross activations.

• Postpaid gross activations increased by 8.8% in 2017, reflecting our leadership in technology and network speed, successful execution of targeted promotions across all our retail channels, greater market activity, the contribution from the acquisition of Bell MTS and the on-boarding of customers from a long-term mobile services contract win with Shared Services Canada
• Prepaid gross activations increased by 0.5% in 2017, driven by the contribution from the acquisition of Bell MTS and the launch of Lucky Mobile in December 2017, our new low-cost prepaid mobile service

Blended wireless churn of 1.36% improved by 0.08 pts in 2017, compared to last year, due to lower postpaid churn, offset in part by higher prepaid churn.

• Postpaid churn of 1.19% improved by 0.06 pts in 2017, compared to last year, due to the favourable impact of our ongoing investments in network speeds, customer retention and improved client experience

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5	MD&A	Bell Wireless

• Prepaid churn of 3.17% increased by 0.04 pts in 2017, due to the lower subscriber base outpacing the year-over-year favourability in the deactivations

Postpaid net activations increased by 32.2% in 2017, compared to 2016, driven by greater gross activations and the contribution from the acquisition of Bell MTS, offset in part by higher customer deactivations.

Prepaid net customer losses improved by 9.3% in 2017, compared to last year, driven by lower customer deactivations and higher gross activations.

Wireless subscribers at December 31, 2017 totaled 9,166,787, including the subscribers acquired through the acquisition of MTS, net of those divested to TELUS. The proportion of Bell Wireless customers subscribing to postpaid service increased to 92% in 2017 from 91% in 2016.

COMPETITIVE LANDSCAPE AND INDUSTRY TRENDS

COMPETITIVE LANDSCAPE

The wireless market is the largest sector of the Canadian telecommunications industry, representing over 50% of total revenues, and is currently growing at a mid-single digit rate annually.

There are more than 31 million wireless subscribers in Canada. The market is highly competitive among three well-established national competitors as well as a number of regional competitors. Rogers Communications Inc. (Rogers) holds the largest share by virtue of its legacy global system for mobile communications (GSM) network. However, Bell has had significant success winning subscribers as well as the largest proportion of industry revenue and adjusted EBITDA growth since 2009, supported by the launch of our HSPA+, 4G LTE and LTE-A networks, industry-leading mobile network speeds, expanded retail distribution, the purchase of Virgin Mobile, a strong brand and improved customer service.

In June 2017, the Western Canada-based cable TV company, Shaw Communications Inc. (Shaw), acquired 700 MHz and 2500 MHz spectrum licences from Québecor Media Inc. (Québecor) to support the build-out of an urban LTE network in major cities in Alberta, British Columbia and Ontario. Shaw reached an agreement with Apple Inc. enabling Shaw’s Freedom Mobile brand to offer iPhone products beginning in December 2017. Shaw’s re-farming of advanced wireless services-1 (AWS-1) spectrum and deployment of 2500 MHz spectrum is expected to be completed in 2018, and will make older smartphone versions (iPhones and Samsung Galaxy) compatible with Freedom Mobile’s LTE network. Québecor Media’s Vidéotron Ltée (Vidéotron) continues to operate as a regional facilities-based wireless service provider in Québec, and Eastlink in Atlantic Canada. These cable TV-based wireless providers, in addition to the provincial carrier in Saskatchewan, represent fourth carriers in their respective markets.

Canada’s wireless penetration was approximately 85% at the end of 2017, compared to well over 100% in the U.S. and even higher in Europe and Asia. Canada’s wireless sector is expected to continue growing at a steady pace for the foreseeable future, driven by immigration and population growth, the trend toward multiple devices, the increasing usage of data services, and mobile adoption by both younger and older generations.

Competitors

• Large facilities-based national wireless service providers Rogers and TELUS Corporation
• Smaller facilities-based wireless service provider Freedom Mobile, which currently provides service in Toronto, Calgary, Vancouver, Edmonton and Ottawa, as well as in several communities in southwestern Ontario
• Regional facilities-based wireless service providers Vidéotron, which provides service in Montréal and other parts of Québec; Saskatchewan Telecommunications Holding Corporation (SaskTel), which provides service in Saskatchewan; and 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

Canadian wireless market share⁽¹⁾

60   BCE Inc.   2017 ANNUAL REPORT
	5	MD&A	Bell Wireless

KEY WIRELESS METRICS – SHARE FOR NATIONAL CARRIERS⁽¹⁾

POSTPAID NET ADDITIONS (%)

REPORTED EBITDA GROWTH (%)

SERVICE REVENUE GROWTH (%)

(1)	Percentages may not add to 100 due to rounding.
(2)	Bell metrics shown include Bell Aliant as of 2015.
(3)	TELUS metrics shown include Public Mobile Inc. as of 2015.

INDUSTRY TRENDS

ACCELERATING DATA CONSUMPTION

Wireless data growth continues to be driven by the ongoing adoption of higher-value 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 LTE and LTE-A, that provide a richer user experience, a larger appetite for mobile connectivity and social networking, greater selection of smartphones, tablets and other connected devices, as well as increasing adoption of shared plans with multiple devices by families. Greater customer adoption of data services, including mobile TV, data roaming for travel, mobile commerce, mobile banking, and other IoT applications in the areas of retail and transportation (connected car, asset tracking, and remote monitoring) should also contribute to growth. In the consumer market, IoT represents a growth area for the industry as wireless connectivity on everyday devices, from home automation to cameras, becomes ubiquitous.

SIGNIFICANT INVESTMENTS IN WIRELESS NETWORKS

Fast growth in mobile data traffic is increasingly putting a strain on wireless carriers’ networks and their ability to manage and service this traffic. Industry Canada’s 700 MHz, advanced wireless services-3 (AWS-3), and 2500 MHz spectrum auctions that concluded in 2014 and 2015 provided wireless carriers with prime spectrum to roll out faster next-generation wireless networks and build greater capacity. Carrier aggregation is a technology currently being employed by Canadian wireless carriers that allows for multiple channels of spectrum to be used together, thereby significantly increasing network capacity and data transfer rates. Investments in fibre backhaul to cell sites and the deployment of small-cell technology further increase the efficient utilization of carriers’ spectrum holdings.

CUSTOMERS BRINGING THEIR OWN DEVICES

With the CRTC’s Wireless Code limiting wireless contract terms to two years from three years, the number of customers on expired contracts has increased. As a result, subscribers are increasingly bringing their own devices or keeping their existing devices for longer periods of time and therefore may not enter into new contracts for wireless services. This may negatively impact carriers’ subscriber churn, but may also create gross addition opportunities as a result of increased churn from other carriers. Additionally, this trend may negatively impact the monthly service fees charged to subscribers; however, the service revenue generated by these customers helps improve margins due to lower spending on device subsidies.

BUSINESS OUTLOOK AND ASSUMPTIONS

2018 OUTLOOK

We expect continued revenue growth driven primarily by a greater number of postpaid subscribers and higher ARPU. We expect ARPU to continue to increase, but at a slower pace compared to 2017, as the market continues to mature and as more customers subscribe to rate plans with larger data thresholds. We will seek to achieve higher revenues from data growth, through increased use of our 4G LTE and LTE-A networks, higher demand for services such as social media, music and streaming of content, as well as nascent services including mobile commerce and other IoT applications. Our intention is to introduce new services to the market in a way that balances innovation with profitability.

We also remain focused on sustaining our market share of incumbent postpaid net additions in a disciplined and cost-conscious manner, while also growing our share of new industry prepaid net additions. We anticipate higher year-over-year net additions, driven by continued strong postpaid market momentum, reflecting Bell’s network speed and technology leadership; the onboarding of customers from our recently won Shared Services Canada wireless services contract; a renewed focus on prepaid with the launch of Lucky Mobile; and incremental growth opportunities in Manitoba with the full integration of Bell MTS.

We plan to deliver adjusted EBITDA growth in 2018 from continued healthy revenue growth, which should be partly offset by higher subscriber acquisition and retention spending consistent with a sustained high level of competitive market activity.

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5	MD&A	Bell Wireless

ASSUMPTIONS

• Maintain our market share of incumbent wireless postpaid net additions
• Continued adoption of smartphone devices, tablets and data applications, as well as the introduction of more 4G LTE and LTE-A devices and new data services
• Higher subscriber acquisition and retention spending, driven by higher handset costs and more customer device upgrades, reflecting a higher number of off-contract subscribers due to earlier expiries under two-year contracts
• Higher blended ARPU, driven by a higher postpaid smartphone mix, increased data consumption on 4G LTE and LTE-A networks, and higher access rates
• Expansion of the LTE-A network coverage to approximately 92% of the Canadian population
• Ability to monetize increasing data usage and customer subscriptions to new data services
• Ongoing technological improvements by handset manufacturers and from faster data network speeds that allow customers to optimize the use of our services
• No material financial, operational or competitive consequences of changes in regulations affecting our wireless business

KEY GROWTH DRIVERS

• Increasing Canadian wireless industry penetration
• Increasing customer adoption of smartphones, tablets and other 4G LTE devices to increase mobile data usage
• Greater number of postpaid customers on our 4G LTE and LTE-A networks
• Customer usage of new data applications and services

PRINCIPAL BUSINESS RISKS

This section discusses certain principal business risks specifically related to 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 RISK The intensity of competitive activity from incumbent wireless operators, newer wireless entrants, non-traditional players and resellers POTENTIAL IMPACT Pressure on our adjusted EBITDA, ARPU, churn and cost of acquisition and retention would likely result if competitors aggressively increase discounts for handsets and price plans, offer shared plans based on sophisticated pricing requirements or offer other incentives, such as new data plans or unlimited data plans, instalment plans for smartphones or multi-product bundles, to attract new customers

REGULATORY ENVIRONMENT RISK Greater regulation of wireless services and pricing (e.g. the mandating of wholesale roaming rates by the CRTC that are materially different than those we have proposed, additional mandated access to wireless networks and limitations placed on future spectrum bidding) POTENTIAL IMPACT Greater regulation could limit our flexibility, influence the market structure, improve the business positions of our competitors and negatively impact the financial performance of our wireless business

MARKET MATURITY AND INCREASED DEVICE COSTS RISK Slower subscriber growth due to high Canadian smartphone penetration and increased device costs POTENTIAL IMPACT A maturing wireless market and higher device costs could challenge subscriber growth and the cost of acquisition and retention, putting pressure on the financial performance of our wireless business

62   BCE Inc.   2017 ANNUAL REPORT
	5	MD&A	Bell Wireline

5.2 Bell Wireline

Bell Wireline achieved positive adjusted EBITDA growth for a third consecutive year in 2017, driven by strong Internet and IPTV subscriber base growth, higher household ARPU, the financial contribution of Bell MTS and related integrated synergies, as well as operating cost savings that drove an improvement in our North American industry-leading margin to 41.8%.

KEY ELEMENTS OF RELEVANT STRATEGIC IMPERATIVES

Invest in broadband
networks and services

2017 PROGRESS

• Continued to expand our FTTP direct fibre footprint, reaching more than 3.7 million homes and businesses in seven provinces, including approximately 60% of homes and businesses in the City of Toronto.
  Forty percent of our long-term broadband fibre program was completed at the end of 2017. FTTP enables symmetrical Internet download and upload speeds of up to 1 Gbps and will enable the delivery of even faster speeds in the future.
• Began the build-out of broadband fibre directly to 1.1 million residences and business locations throughout Montréal, representing the largest-ever communications infrastructure project in Québec with a planned capital investment of $854 million. Montréal joins a growing number of centres across Québec that are fully wired with Bell fibre, including Québec City where fibre deployment was launched in 2012. By the end of 2017, Bell fibre reached approximately 40% of homes and businesses throughout the province of Québec, including 14% of all locations in Montréal.

2018 FOCUS

• Expand FTTP broadband fibre footprint to approximately 4.5 million total combined homes and commercial locations
  • In February 2018, we announced the expansion of FTTP direct fibre connections throughout the Greater Toronto and 905 geographic region. Bell’s fibre plan will deliver Gigabit Internet speeds and other broadband Fibe service innovations to more than 1.3 million homes and businesses in the region.

Leverage
wireline momentum

2017 PROGRESS

• Maintained our position as Canada’s largest TV provider with 2,832,300 subscribers, and increased our total number of IPTV subscribers by 15.9% to 1,550,317
• Built on our position as the leading ISP in Canada with a high-speed Internet subscriber base of 3,790,141, up 9.0% over 2016, including one million FTTP customers
• Launched Fibe Alt TV, Canada’s first widely available app-based live TV service, providing a completely new way to watch live and on-demand television. With no traditional TV STB required, Alt TV is accessed through the Fibe TV app and offers up to 500 live and on-demand channels on laptops, smartphones, tablets and Apple TV 4th Generation.
• Continued to lead television innovation in Canada with ongoing enhancements to our IPTV service
  • Fibe TV customers in Ontario and Québec can watch their PVR recordings on the go on their tablets, smartphones and laptops with the Fibe TV app
  • Customers with 4K Whole Home PVR can access YouTube, in addition to CraveTV and Netflix
• Acquired AlarmForce (transaction completed on January 5, 2018), a Canadian leader in home security and monitoring services, as part of Bell’s strategic expansion in the fast-growing Connected Home marketplace. Combining the assets and experience of AlarmForce with Bell’s strength in networks, customer service and distribution will enable Bell to deliver the latest Connected Home services to customers in Ontario, Québec, Atlantic Canada and Manitoba.

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• Partnered with Akamai Technologies Inc. (Akamai), a global leader in content delivery and cloud services, to expand our portfolio of integrated web security solutions for business customers. Complementing Bell solutions to help businesses increase productivity, minimize risk, and maximize service differentiation, Akamai’s leading cloud security, web performance, and media delivery products strengthen our ability to identify security threats, proactively prevent attacks, and support customers in optimizing their online presence.
• Recognized by IDC Canada as a leader in delivering security services for business customers. Bell was the only telecom company in IDC’s Leaders Category, which included large multinationals such as CGI, IBM and Deloitte. Evaluators noted that Bell’s extensive network enables us to quickly leverage cyber threat intelligence to provide a complete range of advanced threat detection, mitigation and prevention services.

2018 FOCUS

• Continue to enhance our Fibe TV and Alt TV services with more advanced features
  • In January 2018, we concluded a multi-year agreement with Ericsson to leverage its next generation, cloud-based MediaFirst TV platform to deliver an even more personalized and seamless multiscreen TV experience for Fibe TV and Alt TV customers
• Maintain our leadership position in Canadian broadband communications with the most advanced products in the home
  • In January 2018, we launched Whole Home Wi-Fi, Canada’s first Wi-Fi service that brings smart and fast Wi-Fi to every room in the home while adapting to changing user requirements. Bell partnered with Plume to deliver new access points, called pods, that work with the cloud-based networking intelligence of Bell’s Home Hub 3000 modem to deliver a fully adaptive Wi-Fi service.
• Expand our total base and market share of TV and Internet subscribers profitably
• Reduce total wireline residential net losses
• Increase residential household ARPU through greater multi-product household penetration
• Increase share of wallet of large enterprise customers through greater focus on business service solutions and connectivity growth
• Increase the number of net new customer relationships in both large and mid-sized businesses and reduce small business customer losses

Improve
customer service

2017 PROGRESS

• Improved the MyBell app, achieving a four-star rating on the Apple App Store, and increased mobile transactions by 38% in 2017
• Reduced FTTH Residential Fibe TV installation time by 9% in 2017
• Reduced FTTH Residential Fibe TV repair truck rolls per customer by 16% in 2017
• Offered Same Day repair appointments to 68% of small business customers, an improvement of 94% since 2014
• Increased the number of self-serve transactions by 15% in 2017

2018 FOCUS

• Continue to invest in customer service initiatives to simplify complexity for all customers, including billing
• Further reduce the total volume of customer calls to our call centres
• Further improve customer satisfaction scores
• Achieve better consistency in customer experience
• Continue to improve customer personalization
• Reduce FTTP installation times and improve service quality
• Deploy new diagnostic technology enabling enhanced troubleshooting and proactive service monitoring for our customers
• Simplify the technician in-field experience through simplification and innovation of technician tools
• Improve troubleshooting and diagnostic processes to manage increasing customer and device complexity

Achieve a competitive
cost structure

2017 PROGRESS

• Improved Bell Wireline adjusted EBITDA margin by 0.1 pts over 2016
• Realized operating cost synergies from the integration of MTS
• Delivered cost savings from ongoing service improvements and savings related to the deployment of FTTP

2018 FOCUS

• Capture additional operating cost and capital expenditure synergies from the integration of Bell MTS
• Deliver cost savings from workforce reductions, ongoing service improvements, and savings related to the deployment of FTTP to support a stable consolidated adjusted EBITDA margin

64   BCE Inc.   2017 ANNUAL REPORT
	5	MD&A	Bell Wireline

FINANCIAL PERFORMANCE ANALYSIS

2017 PERFORMANCE HIGHLIGHTS

(1)	As a result of the acquisition of MTS on March 17, 2017, our high-speed Internet, TV and NAS subscriber bases increased by 229,470, 108,107 (104,661 IPTV) and 419,816 (223,663 residential and 196,153 business) subscribers, respectively.
(2)	Following a review of customer accounts by a wholesale reseller, we have adjusted our high-speed Internet subscriber base at the beginning of Q1 2017 to remove 3,751 non-revenue generating units.

BELL WIRELINE RESULTS

REVENUES

	2017	2016	$ CHANGE		% CHANGE
Data	7,146	6,791	355		5.2	%
Local and access	3,161	3,089	72		2.3	%
Long distance	639	741	(102	)	(13.8	%)
Other services	213	182	31		17.0	%
Total external service revenues	11,159	10,803	356		3.3	%
Inter-segment service revenues	198	177	21		11.9	%
Total operating service revenues	11,357	10,980	377		3.4	%
Data	519	559	(40	)	(7.2	%)
Equipment and other	527	555	(28	)	(5.0	%)
Total external product revenues	1,046	1,114	(68	)	(6.1	%)
Inter-segment product revenues	12	10	2		20.0	%
Total operating product revenues	1,058	1,124	(66	)	(5.9	%)
Total Bell Wireline revenues	12,415	12,104	311		2.6	%

BCE Inc.   2017 ANNUAL REPORT   65
5	MD&A	Bell Wireline

Bell Wireline operating revenues grew by 2.6% in 2017, compared to last year, driven by increases in data, local and access and other services revenue, offset in part by declines in long distance and product revenues.

Bell Wireline service revenues increased by 3.4% in 2017, compared to 2016, driven by the acquisitions of MTS and Q9, Internet and IPTV subscriber growth, coupled with higher household ARPU. This was offset in part by the ongoing erosion in our voice, satellite TV and legacy data services, together with greater customer acquisition, retention and bundle discounts to match aggressive offers from cable competitors. Regulatory pressures due to unfavourable CRTC rulings in 2016 relating to Internet tariffs for aggregated wholesale high-speed access services and Telecom Decision CRTC 2016-171 also unfavourably impacted service revenue growth.

• Data revenues increased by 5.2% in 2017, compared to 2016, due to the acquisition of MTS, Internet and IPTV subscriber growth, and higher ARPU driven by residential rate increases and larger data usage Internet rate plans, greater business solutions services driven by the acquisition of Q9 and IP-based services growth. This was moderated by the continued decline in our satellite TV subscriber base, ongoing legacy data erosion due in part to migrations to IP-based services and competitive pricing pressures within our business and wholesale markets, as well as greater acquisition, retention and bundle discounts on residential Internet and TV services due to aggressive offers from cable competitors. Unfavourable CRTC regulatory impacts relating to lower revised interim rates for aggregated wholesale high-speed Internet access services and Telecom Decision CRTC 2016-171 further pressed data revenues.
• Local and access revenues increased by 2.3% in 2017, compared to prior year, attributable to the acquisition of MTS and residential rate increases, partially offset by continued NAS line erosion from technological substitution to wireless and Internet-based services, large business customer conversions to IP-based data services, competitive pricing pressures and the negative impact from Telecom Decision CRTC 2016-171.
• Long distance revenues decreased by 13.8% in 2017, compared to last year, reflecting fewer minutes of use by residential and business customers as a result of NAS line erosion, technology substitution to wireless and OTT Internet-based services, continued rate pressures in our residential market from customer adoption of premium rate plans and reduced sales of international long distance minutes in our wholesale market, offset in part by the contribution from the acquisition of MTS
• Other services revenues increased by 17.0% in 2017, compared to 2016, primarily driven by the contribution from the acquisition of MTS

Bell Wireline product revenues declined by 5.9% in 2017, compared to prior year, driven by lower demand for equipment by large business customers, attributable to market softness and competitive pricing pressures, as well as lower sales of consumer electronics at The Source, partly offset by the favourable contribution from the MTS acquisition.

OPERATING COSTS AND ADJUSTED EBITDA

	2017		2016		$ CHANGE		% CHANGE
Operating costs	(7,229	)	(7,062	)	(167	)	(2.4	%)
Adjusted EBITDA	5,186		5,042		144		2.9	%
Adjusted EBITDA margin	41.8	%	41.7	%			0.1	pts

Bell Wireline operating costs increased by 2.4% in 2017, compared to 2016, attributable to:

• The acquisitions of MTS and Q9
• Higher programming costs in our TV business due to the growth in our subscriber base and contractual rate increases
• Increased fleet expenses from higher fuel and refurbishment costs
• Greater marketing and sales expense in our residential market to support subscriber acquisitions

These factors were partially offset by:

• Lower labour costs attributable to workforce reductions and vendor contract savings, as well as fewer call volumes to our customer service centres
• Reduced cost of goods sold resulting from lower product sales
• Lower payments to other carriers driven by fewer sales of international long distance minutes
• Reduced bad debt expense

Bell Wireline adjusted EBITDA increased by 2.9% in 2017, compared to 2016, and the adjusted EBITDA margin increased to 41.8% in 2017 compared to the 41.7% achieved last year. The year-over-year growth in adjusted EBITDA was driven by:

• The contribution from the MTS and Q9 acquisitions
• Ongoing growth from our Internet and IPTV businesses in a highly competitive environment
• Effective cost management

These factors were partially offset by:

• The continued erosion of voice, satellite TV and legacy data revenues, reflecting ongoing competitive repricing and reduced customer spending in our business market
• Unfavourable CRTC regulatory rulings from 2016 relating to Internet tariffs for aggregated wholesale high-speed access services and Telecom Decision CRTC 2016-171

BELL WIRELINE OPERATING METRICS
DATA
High-speed Internet

	2017	2016	CHANGE	% CHANGE
High-speed Internet net activations	87,860	85,099	2,761	3.2	%
High-speed Internet subscribers(1) (2)	3,790,141	3,476,562	313,579	9.0	%

(1)	As a result of the acquisition of MTS on March 17, 2017, our high-speed Internet subscriber base increased by 229,470.
(2)	Following a review of customer accounts by a wholesale reseller, we adjusted our high-speed Internet subscriber base at the beginning of Q1 2017 to remove 3,751 non-revenue generating units.

66   BCE Inc.   2017 ANNUAL REPORT
	5	MD&A	Bell Wireline

High-speed Internet subscriber net activations increased by 3.2% in 2017, compared to 2016, driven by higher retail gross activations particularly in our FTTH footprint, ramp up in activations from Home Internet service by Virgin Mobile which launched in July 2016, richer promotional offers, a reduced number of retail customers coming off promotional offers and growth from our small business market. This was partly offset by increased residential churn driven by aggressive offers from cable competitors and competitive pressures in our wholesale market.

High-speed Internet subscribers at December 31, 2017 totaled 3,790,141, up 9.0% from the end of last year, including the subscribers acquired from MTS.

TV

	2017		2016	CHANGE		% CHANGE
Net subscriber (losses) activations	(20,716	)	6,413	(27,129	)	(423.0	%)
IPTV	107,712		155,153	(47,441	)	(30.6	%)
Total subscribers(1)	2,832,300		2,744,909	87,391		3.2	%
IPTV(1)	1,550,317		1,337,944	212,373		15.9	%

(1) As a result of the acquisition of MTS on March 17, 2017, our TV subscriber base increased by 108,107 (104,661 IPTV).

IPTV net subscriber activations decreased by 30.6% in 2017, compared to last year, driven by higher deactivations due to aggressive residential offers for service bundles from cable competitors, a greater number of retail customers coming off promotional offers, the impact of maturing Fibe TV markets, reduced footprint expansion in 2017, increased substitution of traditional TV services with OTT services, along with fewer customer migrations from satellite TV. This was mitigated in part by higher activations due to the launch of Fibe Alt TV on May 15, 2017, our application based live TV streaming service, and greater gross activations, particularly in our FTTH footprint.

Satellite TV net customer losses improved by 13.7% in 2017, compared to 2016, driven by lower residential deactivations attributable to a more mature subscriber base, a reduced number of customers coming off promotional offers and fewer migrations to IPTV, offset in part by aggressive residential promotional offers from cable competitors.

Total TV net subscriber activations (IPTV and satellite TV combined) declined by 27,129, compared to 2016, due to lower IPTV net activations, partly offset by fewer satellite TV net losses.

IPTV subscribers at December 31, 2017 totaled 1,550,317, up 15.9% from 1,337,944 subscribers reported at the end of 2016, including the subscribers acquired from MTS.

Satellite TV subscribers at December 31, 2017 totaled 1,281,983, down 8.9% from 1,406,965 subscribers at the end of last year, including the subscribers acquired from MTS.

Total TV subscribers (IPTV and satellite TV combined) at December 31, 2017 were 2,832,300, representing a 3.2% increase since the end of 2016, including the subscribers acquired from MTS.

LOCAL AND ACCESS

	2017		2016		CHANGE		% CHANGE
NAS LINES
Residential(1)	3,231,308		3,249,739		(18,431	)	(0.6	%)
Business(1)	3,089,175		3,007,993		81,182		2.7	%
Total	6,320,483		6,257,732		62,751		1.0	%
NAS NET LOSSES
Residential	(242,094	)	(283,993	)	41,899		14.8	%
Business	(114,971	)	(131,415	)	16,444		12.5	%
Total	(357,065	)	(415,408	)	58,343		14.0	%

(1) As a result of the acquisition of MTS on March 17, 2017, our NAS subscriber base increased by 419,816 (223,663 residential and 196,153 business) subscribers.

NAS net losses improved by 14.0% in 2017, compared to 2016, due to both lower residential and business net losses.

Residential NAS net losses improved by 14.8% in 2017, compared to last year, driven by greater acquisition of three-product households, increased pull-through from our IPTV service bundle offers, as well as lower customer deactivations, reflecting a reduced number of retail customers coming off of promotional offers. This was offset in part by aggressive competitive offers from cable TV providers, ongoing wireless and Internet-based technology substitution and the inclusion of Bell MTS net losses.

Business NAS net losses decreased by 12.5% in 2017, compared to prior year, as a result of fewer net losses in our small business market, together with lower competitive losses in our wholesale market. This was offset in part by higher net losses in our large business market, driven by greater customer wins in 2016, reduced demand for new access lines and increased migrations to IP-based services, mitigated in part by fewer competitive losses.

NAS subscribers at December 31, 2017 totaled 6,320,483, representing a 1.0% increase compared to the 6,257,732 subscribers reported at the end of 2016, including the subscribers acquired from MTS. This was a significant improvement over the 6.4% subscriber base decrease experienced in 2016.

BCE Inc.   2017 ANNUAL REPORT   67
5	MD&A	Bell Wireline

COMPETITIVE LANDSCAPE AND INDUSTRY TRENDS

COMPETITIVE LANDSCAPE

The financial performance of the overall Canadian wireline telecommunications market continues to be impacted by the ongoing declines in legacy voice service revenues resulting from technological substitution to wireless and OTT services, as well as by ongoing conversion to IP-based data services and networks by large business customers. Sustained competition from cable companies also continues to erode traditional telephone providers’ market share of residential local telephony. Canada’s four largest cable companies had approximately four million telephony subscribers at the end of 2017, representing a national residential market share of approximately 45%. Other non-facilities-based competitors also offer local and long distance VoIP services and resell high-speed Internet services.

Although the residential Internet market is maturing, with over 88% penetration across Canada, subscriber growth is expected to continue over the next several years. At the end of 2017, the four largest cable companies had approximately 6.7 million Internet subscribers, representing 54% of the total Internet market based on publicly reported data⁽¹⁾, while incumbent local exchange carriers (ILECs) held the remaining 46% or 5.8 million subscribers. Bell continues to make market share gains due to the expansion of our fibre optic network and the pull-through of subscribers from our IP-based Fibe TV and Alt TV services.

While Canadians still watch traditional TV, digital platforms are playing an increasingly important role in the broadcasting industry. Popular online video services are providing Canadians with more choice about where, when and how to access their video content. In 2017, ILECs offering IPTV service grew their subscriber bases by 6% to reach 2.7 million customers, driven by expanded network coverage, enhanced service offerings, and marketing and promotions focused on IPTV. This growth came at the expense of cable TV and DTH satellite TV subscriber losses. At the end of the year, Canada’s four largest cable companies had approximately 5.8 million TV subscribers, or a 55% market share, consistent with 55% at the end of 2016.

In 2017, our primary cable TV competitors, Rogers and Vidéotron, announced agreements with global media and technology company Comcast to adopt Comcast’s XFINITY X1 video platform for future commercial deployment. Our IP-based Fibe TV platform continues to have numerous service leadership advantages over this cable platform, including: flexible pricing, plans and packaging available to all customers; picture clarity and quality; content depth and breadth, including 4K content, as well as more HD, video on demand, sports, multicultural and OTT content, such as 4K Netflix and YouTube; and the number of ways customers can access content, including wireless STBs, Restart TV, higher capacity PVR and the Fibe TV app.

Competitors

• Cable TV providers offering cable TV, Internet and cable telephony services, including:
  • Rogers in Ontario, New Brunswick, Newfoundland and Labrador
  • Vidéotron in Québec
  • Cogeco Cable Inc. (a subsidiary of Cogeco Inc.) (Cogeco) in Ontario and Québec
  • 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
• TELUS provides residential voice, Internet and IPTV services in British Columbia, Alberta and Eastern Québec
• TELUS and Allstream Inc. provide wholesale products and business services across Canada
• Various others (such as TekSavvy Solutions, Distributel, VMedia, and Vonage Canada (a division of Vonage Holdings Corp.) (Vonage)) offer resale or VoIP-based local, long distance and Internet services
• OTT voice and video services such as Skype, Netflix, Amazon Prime Video and YouTube
• Digital media streaming devices such as Apple TV, Roku and Google Chromecast
• Other Canadian ILECs and cable TV operators
• Substitution to wireless services, including those offered by Bell
• Customized managed outsourcing solutions competitors, such as systems integrators CGI, EDS (a division of HP Enterprise Services) and IBM
• Wholesale competitors include cable operators, domestic CLECs, U.S. or other international carriers for certain services, and electrical utility-based telecommunications providers
• Competitors for home security range from local to national companies, such as ADT, Chubb Security, Stanley Security, Fluent and MONI Smart Security

Canadian market share

(1) Internet services provided by resellers are included as wholesale Internet subscribers for cable companies and ILECs.

68   BCE Inc.   2017 ANNUAL REPORT
	5	MD&A	Bell Wireline

INDUSTRY TRENDS

INVESTMENT IN BROADBAND FIBRE DEPLOYMENT

The Canadian ILECs continue to make substantial investments in deploying broadband fibre within their territories, with a focus on direct FTTP access to maintain and enhance their ability to support enhanced IP-based services and higher broadband speeds. Cable TV companies continue to evolve their cable networks with the gradual roll-out of the DOCSIS 3.1 platform. Although this platform increases speeds in the near term and is cost-efficient, it does not offer the same advanced capabilities as FTTP over the longer term. FTTP delivers broadband speeds of up to 1 Gbps currently, with faster speeds expected in the future as equipment evolves to support these higher speeds. Going forward, ILECs are expected to maintain high levels of capital spending for the ongoing expansion of their broadband fibre networks, with an increasing emphasis on upgrading current FTTN networks to FTTP.

ALTERNATIVE TV AND OTT SERVICES

The growing popularity of watching TV and on-demand content anywhere, particularly on handheld devices, is expected to continue as customers adopt services that enable them to view content on multiple screens. Streaming media providers, such as Netflix and Amazon Prime Video, continue to enhance OTT streaming services in order to compete for share of viewership in response to evolving viewing habits and consumer demand. TV providers are monitoring OTT developments and evolving their content and market strategy to compete with these non-traditional offerings. We view OTT as an opportunity to add increased capabilities to our linear and on-demand assets, provide customers with flexible options to choose the content they want and drive greater usage of Bell’s high-speed Internet and wireless networks. We continue to enhance our Fibe TV service with additional content and capabilities, including 4K Ultra HD content, the ability to watch recorded content on the go and access to Netflix and YouTube on STBs. Bell also launched Canada’s first widely available app-based live TV service called Fibe Alt TV to address the growing cord-cutting and cord-shaving markets with the ability to consume live and on-demand content on laptops, smartphones, tablets and Apple TV without the need for a traditional TV STB.

TECHNOLOGY SUBSTITUTION

Technology substitution, enabled by the broad deployment of higher speed Internet; the pervasive use of e-mail, messaging and social media as alternatives to voice services; and the growth of wireless and VoIP services, continues to drive legacy voice revenue declines for telecommunications companies. Wireless-only households were estimated to represent approximately 43% of households in Ontario, Québec and Atlantic Canada at the end of 2017, compared to approximately 38% at the end of 2016, while the disconnection of and reduction in spending for traditional TV (cord-cutting and cord-shaving) continues to rise. Although Bell is a key provider of these substitution services, the decline in this legacy business continues as anticipated.

ADOPTION OF IP-BASED SERVICES

The convergence of IT and telecommunications, facilitated by the ubiquity of IP, continues to shape competitive investments 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, manufacturers 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 provide combined IP voice, data and video solutions, creates potential cost efficiencies that compensate, in part, for reduced margins resulting from the continuing shift from legacy to IP-based services. The evolution of IT has created significant opportunities for our business markets services, such as cloud services and data hosting, that can have a greater business impact than traditional telecommunications services.

BUSINESS OUTLOOK AND ASSUMPTIONS

2018 OUTLOOK

We expect positive revenue and adjusted EBITDA growth in 2018. This reflects a full year of Bell MTS financial contribution compared to approximately nine months in 2017; a stronger broadband Internet and TV subscriber trajectory supported by a fast-growing direct fibre service footprint, mass-market Fibe advertising launch in Toronto, scaling of Alt TV and new innovative features enabled by the new MediaFirst IPTV platform; annual residential price increases; improving year-over-year organic business markets performance; as well as cost reductions to counter competitive repricing pressures and the ongoing decline in voice revenues. With respect to the acquisition of AlarmForce, while helpful in advancing Bell’s expansion in the fast-growing Connected Home marketplace, it is too small financially to have any material impact on overall wireline financial results and growth rates in 2018.

TV subscriber growth within our wireline footprint is expected to be driven by continued strong customer adoption of Fibe TV as we increase penetration of existing IPTV-enabled neighbourhoods and drive ongoing innovation in IPTV services. We also intend to seek greater penetration within the multiple-dwelling units (MDU) market, capitalize on our extensive retail distribution network, and leverage our market leadership position in HD and 4K programming and on-demand streaming services to drive incremental subscriber growth and higher revenue per household. Although satellite TV net customer losses will continue in 2018, as a result of aggressive residential promotional offers from cable competitors, they are expected to moderate, due to fewer residential deactivations reflecting a more mature and geographically better suited subscriber base for satellite TV service and reduced customer migrations to IPTV.

BCE Inc.   2017 ANNUAL REPORT   69
5	MD&A	Bell Wireline

Planned Internet subscriber base growth in 2018 is expected to be driven by a growing FTTP service footprint that enables faster Internet speeds and broadband innovation such as smart Whole Home Wi-Fi that ensures stronger signals, as well as by the pull-through of IPTV customer activations, including from Bell’s new app-based live TV streaming service Alt TV. This is expected to have an associated positive impact on household ARPU growth and residential customer churn.

In wireline business, although the economy is slowly rebounding, customers continue to look for opportunities to lower costs. As a result, telecom spending by large enterprise customers is expected to be variable and improve at a modest pace. This, combined with ongoing customer migration to IP-based systems and demand for cheaper bandwidth alternatives with faster speeds, will likely continue to negatively impact overall business markets results in 2018. We intend on seeking to minimize the overall revenue decline from legacy services by leveraging our market position to develop unique services and value enhancements, which further improve client experience by providing more features with improved flexibility to support client needs on demand. We intend to use marketing initiatives to slow NAS erosion, while investing in direct fibre expansion and new solutions in key portfolios such as Internet and private networks, data centre and cloud services, unified communications, and security services. We will continue to deliver network-centric managed and professional services solutions to large and mid-sized businesses that increase the value of connectivity services. Moreover, our acquisition of Q9 in October 2016 has strengthened our service offerings in data hosting, managed services and cloud computing solutions, allowing us to capture improved financial benefits, while enhancing our ability to achieve a higher pull-through of connectivity revenue.

We also expect to experience sustained competitive intensity in our mass and mid-sized business markets as cable operators and other telecom competitors maintain their focus on these customer segments. We also intend to introduce service offerings that help drive innovative solutions and value for our mass and mid-sized customers by leveraging Bell’s network assets, broadband fibre expansion and service capabilities to expand our relationships with them. We will maintain a focus on overall profitability by seeking to increase revenue per customer and customer retention, as well as through improving our processes to achieve further operating efficiencies and productivity gains.

Operating cost reduction will continue to be a key focus for our Bell Wireline segment, helping to offset costs related to the growth and retention of IPTV, Internet, IP broadband and hosted IP voice subscribers, the ongoing erosion of high-margin wireline voice and other legacy revenues, as well as competitive repricing pressures in our residential, business and wholesale markets. This, combined with further service-level improvements and operating synergies from the integration of Bell MTS, is expected to support our objective of maintaining our consolidated adjusted EBITDA margin relatively stable year over year.

We also plan to increase capital investment in broadband fibre expansion to more homes and commercial locations, upgrades to support our IPTV and residential Internet services, as well as new business solutions in key portfolios such as Internet and private networks, data centre and cloud services, unified communications and security services. We intend to pursue pricing methods that will assist us in covering the capital costs of upgrading our networks, providing new services and expanding capacity to meet growing data consumption.

ASSUMPTIONS

• Positive full-year adjusted EBITDA growth
• Continued growth in residential IPTV and Internet subscribers
• Increasing wireless and Internet-based technological substitution
• Residential services household ARPU growth from increased penetration of multi-product households and price increases
• Aggressive residential service bundle offers from cable TV competitors in our local wireline areas
• Continued large business customer migration to IP-based systems
• Ongoing competitive repricing pressures in our business and wholesale markets
• Continued competitive intensity in our small and mid-sized business markets as cable operators and other telecom competitors continue to intensify their focus on business customers
• Traditional high-margin product categories challenged by large global cloud and OTT providers of business voice and data solutions expanding into Canada with on-demand services
• Ongoing deployment of direct fibre and growing consumption of OTT TV services and on-demand streaming video, as well as the proliferation of devices, such as tablets, that consume vast quantities of bandwidth, will require considerable ongoing capital investment
• Accelerating customer adoption of OTT services resulting in downsizing of TV packages
• Realization of cost savings related to management workforce attrition and retirements, lower contracted rates from our suppliers, reduction of traffic that is not on our network and operating synergies from the integration of MTS
• No material financial, operational or competitive consequences of changes in regulations affecting our wireline business

70   BCE Inc.   2017 ANNUAL REPORT
	5	MD&A	Bell Wireline

KEY GROWTH DRIVERS

• Expanding FTTP footprint
• Increasing IPTV penetration of households
• Higher market share of industry TV and Internet subscribers
• Greater penetration of multi-product households
• Improved residential customer retention
• Increased business customer spending on connectivity services and managed and professional services solutions, as well as greater new business formation as the economy strengthens and employment rates improve
• Expansion of our business customer relationships to drive higher revenue per customer
• Ongoing service innovation and product value enhancements

PRINCIPAL BUSINESS RISKS

This section discusses certain principal business risks which specifically affect the Bell Wireline 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 RISK The intensity of competitive activity coupled with new product launches (e.g. IoT, connected home systems and devices, newer TV platforms, etc.) from incumbent operators, cable companies, non-traditional players and wholesalers POTENTIAL IMPACT An increase in the intensity level of competitive activity could result in higher churn, increased acquisition and retention expenses, and increased use of promotional competitive offers to acquire and keep customers, all of which would put pressure on Bell Wireline’s adjusted EBITDA

REGULATORY ENVIRONMENT RISK The CRTC mandates rates for the new disaggregated wholesale high-speed access service available on FTTP facilities that are materially different from the rates we proposed, and which do not sufficiently account for the investment required in these facilities POTENTIAL IMPACT The mandating of rates for the new disaggregated wholesale high-speed access service available on FTTP facilities that are materially different from the rates we proposed could improve the business position of our competitors and change our investment strategy, especially in relation to investment in next-generation wireline networks in smaller communities and rural areas

CHANGING CUSTOMER BEHAVIOUR RISK The traditional TV viewing model (i.e. the subscription for bundled channels) is challenged by an increasing number of legal and illegal viewing options available in the market offered by traditional, non-traditional and global players, as well as developing cord-cutting and cord-shaving trends Changing customer habits further contribute to the erosion of NAS lines POTENTIAL IMPACT Our market penetration and number of TV subscribers could decline as a result of broadcasting distribution undertaking (BDU) offerings and an increasing number of domestic and global unregulated OTT providers. The proliferation of IP-based products, including OTT content offerings directly to consumers, may accelerate the disconnection of TV services or the reduction of TV spending The ongoing loss of NAS lines from technological substitution to wireless and Internet-based services and large business customer conversions to IP-based data services challenge our traditional voice revenues and compel us to develop other service offerings

BCE Inc.   2017 ANNUAL REPORT   71
5	MD&A	Bell Media

5.3 Bell Media

Bell Media maintained industry leadership in TV and radio even as overall financial performance in 2017 was impacted by general softness in the TV advertising market, viewership decline for traditional linear TV, an ongoing shift in customer spending to online services, as well as escalating programming and content costs.

KEY ELEMENTS OF RELEVANT STRATEGIC IMPERATIVES

Expand
media leadership

2017 PROGRESS

• Maintained CTV’s #1 ranking as the most-watched television network in Canada for the 16th year in a row, and continued to lead with a majority of the top 20 programs nationally in all key demographics
• Entered into an agreement with Corus to acquire French-language specialty channels Séries+ and Historia, further enhancing our competitiveness in the Québec media landscape. Séries+ is a fiction channel, offering locally produced dramas as well as foreign series. Historia broadcasts a suite of locally produced original content including documentaries, reality series and drama series. The transaction is subject to approval by the CRTC and the Competition Bureau.
• Grew CraveTV viewership to approximately 1.3 million subscribers at the end of 2017
• Signed an agreement to acquire four FM radio stations in Ontario from Larche. Pending completion of the transaction, which already received CRTC approval, the addition of these stations to Bell Media’s existing 105 iHeartRadio Canada properties will broaden the network’s industry-leading reach across the country
• TMN, HBO Canada and TMN Encore launched an offline viewing feature on the TMN GO video-streaming platform, allowing subscribers to download movies and series on their iOS and Android tablets and smartphones for playback without an Internet connection
• Launched an enhanced iHeartRadio Canada app featuring more than 1,000 live radio stations of every genre from across North America, with availability on additional platforms including Apple Watch, Apple CarPlay, Android Wear, Android Auto and Sonos
• Concluded a comprehensive multi-year regional broadcast rights agreement with the Montreal Canadiens making TSN the official English-language regional broadcaster of the team beginning with the 2017-18 season. The agreement sees TSN air a slate of games in the Montreal Canadiens’ designated broadcast region, which spans Eastern and Northern Ontario, Québec, and Atlantic Canada. RDS continues to be the French-language home for regional Montreal Canadiens games
• Concluded a multi-year rights agreement extension with the NFL that makes Bell Media the exclusive TV broadcast partner of the NFL in Canada. The partnership also features expanded digital opportunities which include syndication rights for NFL highlights in Canada, as well as expanded footage and programming rights to further bolster Bell Media’s non-game NFL-focused content.
• Reached a multi-year media rights extension with NASCAR, with TSN and RDS retaining exclusive Canadian media rights to all Monster Energy NASCAR Cup Series and NASCAR Xfinity Series races across all platforms. The multi-platform agreement features expanded digital rights, with TSN and RDS delivering comprehensive coverage of these NASCAR series across the networks’ digital and social media platforms.
• Announced a strategic partnership with Wow to produce kids and youth entertainment
• Astral, in partnership with Toronto Pearson International Airport, introduced two new large-format digital superboards in close proximity to the country’s largest airport. The new structures provide information about the airport while offering an advertising opportunity reaching millions of commuters and passengers annually. The four faces of the new advertising structures deliver a daily circulation of close to 800,000.
• Astral launched a new and unique programmatic solution for large format digital inventory using an exclusive self-serve platform, enabling clients to use audience targeting previously only available online

2018 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
  • In January 2018, we concluded a long-term agreement with Lionsgate to bring premium U.S. pay TV platform Starz to Canada and distribute the first pay window of Lionsgate’s future theatrical releases in the territory. Starz and Bell Media will also rebrand pay TV channel TMN Encore in early 2019.
• Grow viewership and scale of CraveTV on-demand TV streaming service
  • In January 2018, we announced that CraveTV’s HBO offering would expand throughout 2018 with the addition of Game of Thrones, Girls, The Leftovers, Silicon Valley, Vice Principals, Ballers, Insecure and The Young Pope

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• Develop in-house production and content creation for distribution and use across all screens and platforms
• Expand live and on-demand content through TV Everywhere services
• Build on our OOH leadership position in Canada
• Grow French media properties
• Leverage cross-platform and integrated sales and sponsorship
• Grow revenues through unique partnerships and strategic content investments
  • In January 2018, we partnered with Bloomberg Media to create BNN Bloomberg, Canada’s leading multi-platform business news brand.
    Expected to launch in Spring 2018, BNN Bloomberg will provide audiences and advertisers with an unparalleled suite of products across digital, television and radio, targeting Canada’s business decision makers
• In February 2018, we launched Snackable TV, a mobile-first, short-form video app delivering premium and shareable entertainment targeted at viewers looking to consume snack-size pieces of content, featuring exclusive content from HBO, Comedy Central, Etalk and more

Achieve a competitive
cost structure

2018 FOCUS

• Optimize operating cost structure to align with revenue results

FINANCIAL PERFORMANCE ANALYSIS

2017 PERFORMANCE HIGHLIGHTS

BELL MEDIA RESULTS

REVENUES

	2017	2016	$ CHANGE		% CHANGE
Total external revenues	2,676	2,685	(9	)	(0.3	%)
Inter-segment revenues	428	396	32		8.1	%
Total Bell Media revenues	3,104	3,081	23		0.7	%

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5	MD&A	Bell Media

Bell Media operating revenues increased by 0.7% in 2017, compared to 2016, driven by higher subscriber revenues, offset in part by lower advertising revenues.

Subscriber revenues grew in 2017, compared to last year, mainly due to the growth in our subscriber base from our TV Everywhere GO Products and CraveTV, rate increases on contract renewals with TV distributors and the benefit from the expansion of TMN into a national pay TV service in March 2016.

Advertising revenues decreased in 2017, compared to 2016, reflecting continued market softness and declines in audience levels, which unfavourably impacted advertising revenues across both conventional and specialty TV and radio media platforms. The CRTC’s decision to eliminate simultaneous substitution for the NFL Super Bowl also contributed to the year-over-year decline in advertising revenues. These pressures were moderated by growth in OOH advertising revenues as a result of the contribution from newly awarded contracts and the Cieslok Media acquisition in January 2017, as well as by higher year-over-year revenues from digital properties.

OPERATING COSTS AND ADJUSTED EBITDA

	2017		2016		$ CHANGE		% CHANGE
Operating costs	(2,388	)	(2,338	)	(50	)	(2.1	%)
Adjusted EBITDA	716		743		(27	)	(3.6	%)
Adjusted EBITDA margin	23.1	%	24.1	%			(1.0	) pts

Bell Media operating costs increased by 2.1% in 2017, compared to last year, mainly due to higher programming and content costs primarily related to the ongoing ramp up of content for CraveTV and pay TV services, deal renewals for specialty TV programming, content costs associated with TMN national expansion, escalating sports rights costs, greater expenses resulting from the Cieslok Media acquisition and the execution of newly awarded contracts in OOH. This was partially mitigated by reduced labour costs driven mainly by workforce reductions.

Bell Media adjusted EBITDA decreased by 3.6% in 2017, compared to the previous year, due to escalating programming and content costs and flow-through of the advertising revenue decline which included the unfavourable impact of the CRTC’s decision to eliminate simultaneous substitution for the NFL Super Bowl. This was moderated by continued growth in subscriber revenues and lower labour costs.

BELL MEDIA OPERATING METRICS

• CTV maintained its #1 ranking as the most-watched network in Canada for the 16th year in a row, and continued to lead with a majority of the top 20 programs nationally in all key demographics
• Bell Media’s English specialty and pay TV properties reached 82% of all Canadian English specialty and pay TV viewers on an average weekly basis in 2017. Four of the top 10 Canadian English commercial specialty channels among viewers aged 25 to 54 are Bell Media properties (TSN, Space, Discovery and CP24).
• In Québec, Bell Media maintained its leadership position in the French specialty and pay TV market, reaching 72% of French-language TV viewers in the average week. Half of the Top 10 French specialty and pay channels among the key viewers aged 25 to 54 were Bell Media properties (RDS, Super Écran, Canal D, Canal Vie and Z).
• Bell Media continued to rank first in digital media among Canadian broadcast and video network competitors, and sixth among online properties in the country, with 18.9 million unique visitors per month, reaching 60% of the digital audience
• Bell Media remained Canada’s top radio broadcaster, reaching 17.4 million listeners who spent 73.6 million hours tuned in each week during 2017
• Astral is one of Canada’s leading OOH advertising companies with an offering of five innovative product lines and more than 31,000 at the end of 2017 advertising faces strategically located in the British Columbia, Alberta, Manitoba, Ontario, Québec and Nova Scotia markets

COMPETITIVE LANDSCAPE AND INDUSTRY TRENDS

COMPETITIVE LANDSCAPE

Competition in the Canadian media industry has changed in recent years as traditional media assets are increasingly being controlled by a small number of competitors with significant scale and financial resources. Technology has allowed new entrants to become media players in their own right. Some players have become more vertically integrated across both traditional and emerging platforms to better enable the acquisition and monetization of premium content. Global aggregators have also emerged and are competing for both content and viewers.

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 technologies 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 continue to shift their media consumption towards digital and online media, mobile devices and on-demand content, requiring industry players to increase their efforts in digital content and capabilities in order to compete. This trend is also causing advertisers to direct more of their spending to digital and online rather than traditional media. In addition, the number of competitors has increased as more digital and online media companies, including large global companies, enter the market.

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Competitors

TV

• Conventional Canadian TV stations (local and distant signals) and specialty and pay channels, such as those owned by Corus, Rogers, Québecor, Canadian Broadcasting Corporation (CBC)/ Société Radio-Canada (SRC) and Groupe V
• U.S. conventional TV stations and specialty channels
• OTT streaming providers such as Netflix, Amazon Prime Video and DAZN
• Video-sharing websites such as YouTube

RADIO

• Large radio operators, such as Rogers, Corus, Cogeco and Newcap Inc. (Newcap) that also own and operate radio station clusters in various local markets
• Radio stations in specific local markets
• Satellite radio provider SiriusXM
• Music streaming services such as Spotify, Apple Music and Google Play Music
• Music downloading services such as Apple’s iTunes Store
• Other media such as newspapers, local weeklies, TV, magazines, outdoor advertising and the Internet

OOH ADVERTISING

• Large outdoor advertisers, such as Jim Pattison Broadcast Group, Outfront Media, Québecor, Dynamic and Clear Channel Outdoor
• 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

INDUSTRY TRENDS

TECHNOLOGY AND CONSUMER HABITS TRANSFORMING THE WAY TV IS DELIVERED

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. Consumers now have the ability to watch content from a variety of media services on the screen of their choice, including TVs, computers, and mobile devices. The number of Canadian users who are connected to the Internet through their TVs is growing as connection becomes easier and more affordable. Changes in technology and consumer behaviour have resulted in a number of challenges for content aggregators and distributors. Ubiquitous access to content enabled by connected devices introduces risk to traditional distribution platforms by enabling content owners to provide content directly to distributors and consumers, thus bypassing traditional content aggregators.

GROWTH OF ALTERNATIVES TO TRADITIONAL LINEAR TV

Consumers have improved access to online entertainment and information alternatives that did not previously exist. While traditional linear TV was the only way to access entertainment programming in the past, the increase in alternative entertainment options has led to a fragmentation in consumption habits. Traditional linear TV still remains the most common form of video consumption and people are increasingly consuming content on their own terms. In particular, today’s 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, a growing number of consumers are spending considerable time viewing online alternatives to traditional TV. This is evident in the growing number and popularity of OTT video services like Netflix and Amazon Prime Video. To date, these OTT services have largely complemented existing TV services, with the majority of subscribers adding an OTT service subscription to complement their traditional linear package. In recognition of changing consumer behaviour, media companies are evolving their content and launching their own solutions to better compete with these non-traditional offerings through services such as Bell Media’s CraveTV on-demand TV streaming service and authenticated TV Everywhere services such as CTV GO, TSN GO, RDS GO, Discovery GO and TMN GO.

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5	MD&A	Bell Media

ESCALATING CONTENT COSTS AND SHIFTS IN ADVERTISING

Viewership and usage trends suggest that online and mobile Internet video consumption is increasing rapidly. Changing content consumption patterns and growth of alternative content providers could exert downward pressure on advertising revenues for traditional media broadcasters. However, premier content, live sports and special events should continue to draw audiences and advertisers, which is expected to result in pricing pressure on future broadcasting rights. Additionally, while access to premium content has become increasingly important to media companies in attracting viewers and advertisers, there is now increased competition for these rights from global competitors, including Netflix, Amazon, and DAZN. This has resulted in higher TV program rights costs, which is a trend that is expected to continue into the future.

ALTERNATIVE DELIVERY OF LIVE SPORTS CONTENT

Access to live sports and other premium content has become even more important for acquiring and retaining audiences that in turn attract advertisers and subscribers. Ownership of content and/or long-term agreements with content owners has, therefore, also become increasingly important to media companies. Leagues, teams, and networks are also experimenting with the delivery of live sports content through online, social, and virtual platforms, while non-traditional sports are also growing in mindshare.

BUSINESS OUTLOOK AND ASSUMPTIONS

2018 OUTLOOK

Revenue performance is expected to reflect Bell Media’s broadcast of the 2018 FIFA World Cup, further growth in CraveTV, higher outdoor advertising revenue at Astral and the financial contribution from the pending acquisition of radio stations from Larche. However, the effects of shifting media consumption towards OTT and digital platforms, further TV cord-shaving and cord-cutting, as well as the financial impact of higher content costs for sports broadcast rights and premium programming content will continue to weigh on adjusted EBITDA in 2018. We also intend to continue controlling costs by leveraging assets, achieving productivity gains and pursuing operational efficiencies across all of our media properties, while continuing to invest in premium content across all screens and platforms.

While the advertising market is expected to remain soft in 2018, we anticipate that the strength of our programming including the 2018 FIFA World Cup, and continued strong outdoor advertising growth, will offset some advertising pressure resulting from increased competition and declining audiences. Subscriber fee revenues are projected to remain stable, as growth in CraveTV and TV Everywhere is expected to offset subscriber erosion.

In conventional TV, we intend to leverage the strength of our market position combined with enhanced audience targeting 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 highly rated programming and differentiated content; building and maintaining strategic supply arrangements for content across all screens and platforms, producing and commissioning high-quality Canadian content, including market-leading news; and bringing our data-enhanced TV planning tool to market.

Our sports specialty TV offerings are expected to continue to deliver premium content and exceptional viewing experiences to our viewers. Expanded NFL and NHL offerings, combined with the integration of our digital platforms, are integral parts of our strategy to enhance viewership and engagement. Contractual price increases for strategic sports properties are the principal factors driving continued increases in sports rights costs. We will also continue to focus on 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 part of our objective to drive revenue growth, we intend to capitalize on our competitive position in key specialty services to improve both channel strength and channel selection.

In pay TV, we will continue to leverage our investments in premium content (including HBO and SHOWTIME) in order to attract subscribers.

In our French-language pay and specialty services, we will continue to optimize our programming to increase our appeal to audiences, including the pending acquisition of French-language specialty channels Séries+ and Historia, which are subject to closing conditions, including approval by the CRTC and the Competition Bureau.

In radio, we intend to leverage the strength of our market position and pending radio station acquisitions from Larche to continue offering advertisers, both nationally and locally, premium opportunities to reach their target audiences. We also plan to leverage our recently enhanced iHeartRadio digital service in Canada that provides access to more than 1,000 live radio stations and some of the most popular podcasts. Additionally, in conjunction with our local TV properties, we will continue to pursue opportunities that leverage our promotional capabilities, provide an expanded platform for content sharing, and offer synergistic co-location and efficiencies.

In our OOH operations, we plan to leverage the strength of our products to provide advertisers with premium opportunities in key Canadian markets. We will also continue to seek new opportunities in digital markets, including converting our premium outdoor structures to digital.

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	5	MD&A	Bell Media

ASSUMPTIONS

• Revenue performance is expected to reflect an improving TV advertising sales trajectory supported by our broadcast of the 2018 FIFA World Cup, further CraveTV subscriber growth and continued growth in outdoor advertising
• Operating cost growth driven by higher TV programming and sports broadcast rights costs, as well as continued investment in CraveTV content
• Continued scaling of CraveTV
• Ability to successfully acquire and produce highly rated programming and differentiated content
• Building and maintaining strategic supply arrangements for content across all screens and platforms
• Increased revenue generation from monetization of content rights and Bell Media properties across all platforms
• TV unbundling and growth in OTT viewing expected to result in lower subscriber levels for many Bell Media TV properties
• No material financial, operational or competitive consequences of changes in regulations affecting our media business

KEY GROWTH DRIVERS

• Leveraging data to better inform media planning, insights, and execution, leading to an enhanced advertiser experience
• Investing in the best content
• Converting premium OOH structures to digital
• Establishing unique partnerships and strategic content investments

PRINCIPAL BUSINESS RISKS

This section discusses certain principal business risks specifically related to the Bell Media 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 AND REGULATORY CHANGES RISK The intensity of competitive activity from traditional TV services, as well as from new technologies and alternative distribution platforms such as unregulated OTT content offerings, video on demand, personal video platforms and video services over mobile devices and the Internet, in combination with regulations that require all BDUs to make TV services available à la carte Acceleration among non-traditional global players developing more aggressive product and sales strategies in creating and distributing video POTENTIAL IMPACT Adverse impact on the level of subscriptions and/or viewership for Bell Media’s TV services and on Bell Media’s revenue streams

ADVERTISING AND SUBSCRIPTION REVENUE UNCERTAINTY RISK Advertising is heavily dependent on economic conditions and viewership, as well as on our ability to grow alternative advertising media such as digital and OOH platforms, in the context of a changing and fragmented advertising market. Conventional media is under increasing competitive pressure for advertising spend from non-traditional/ global technology companies Bell Media has contracts with a variety of BDUs, under which monthly subscription fees for specialty and pay TV services are earned. Agreements with several of these BDUs are expiring in 2018 POTENTIAL IMPACT Economic uncertainty could reduce advertisers’ spending. Our failure to increase or maintain viewership or capture our share of the changing and fragmented advertising market could result in the loss of advertising revenue If we are not successful in renegotiating expiring BDU agreements on favourable terms, it could result in the loss of subscription revenue

RISING CONTENT COSTS AND ABILITY TO SECURE KEY CONTENT RISK Rising content costs, as an increasing number of domestic and global competitors seek to acquire the same content, and the ability to secure key content to drive revenues and subscriber growth POTENTIAL IMPACT Rising programming costs could require us to incur unplanned expenses which could result in negative pressure on adjusted EBITDA Our inability to acquire popular programming content could adversely affect Bell Media’s viewership and subscription levels and, consequently, advertising and subscription revenues

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6	MD&A	Financial and capital management

6 Financial and capital management

This section tells you how we manage our cash and capital resources to carry out our strategy and deliver financial results. It provides an analysis of our financial condition, cash flows and liquidity on a consolidated basis.

6.1 Net debt

	DECEMBER 31, 2017		DECEMBER 31, 2016		$ CHANGE	% CHANGE
Debt due within one year	5,178		4,887		291	6.0	%
Long-term debt	18,215		16,572		1,643	9.9	%
Preferred shares(1)	2,002		2,002		–	–
Cash and cash equivalents	(625	)	(853	)	228	26.7	%
Net debt	24,770		22,608		2,162	9.6	%

(1) 50% of outstanding preferred shares of $4,004 million in 2017 and 2016 are classified as debt consistent with the treatment by some credit rating agencies.

The increase of $1,934 million in total debt, comprised of debt due within one year and long-term debt, was due to:

• the issuance of Series M-40 MTN, M-44 MTN, M-45 MTN and M-46 MTN debentures at Bell Canada with total principal amounts of $700 million, $1 billion, $500 million and $800 million, respectively
• an increase in our debt of $972 million due to the acquisition of MTS
• an increase in our notes payable (net of repayments) of $333 million

Partly offset by:

• the repayment of borrowings under our unsecured committed term credit facility of $480 million
• the early redemption of Series M-22 MTN, M-35 and M-36 debentures in the principal amounts of $1 billion, $350 million and $300 million, respectively
• a net decrease of $241 million in our finance lease obligations and other debt

The decrease in cash and cash equivalents of $228 million was due mainly to:

• $2,639 million of dividends paid on BCE common and preferred shares
• $4,034 million of capital expenditures
• $1,649 million paid for business acquisitions mainly related to the acquisitions of MTS and Cieslok Media
• $224 million for the purchase on the open market of shares for the settlement of share-based payments

Partly offset by:

• $7,358 of cash from operating activities
• $691 million of debt issuances (net of repayments)
• $323 million from the divestiture of approximately one-quarter of postpaid wireless subscribers and 15 retail locations previously held by MTS, as well as certain Manitoba network assets, to TELUS.

6.2 Outstanding share data

COMMON SHARES OUTSTANDING	NUMBER OF SHARES
Outstanding, January 1, 2017	870,706,332
Shares issued for the acquisition of MTS	27,642,714
Shares issued under employee stock option plan	2,555,863
Shares issued under employee savings plan (ESP)	91,731
Outstanding, December 31, 2017	900,996,640

Subsequent to year end, on February 8, 2018, BCE announced its plan to repurchase and cancel up to 3.5 million common shares, subject to a maximum aggregate purchase price of $175 million over the twelvemonth period starting February 13, 2018 and ending no later than February 12, 2019 through a NCIB.

STOCK OPTIONS OUTSTANDING	NUMBER OF OPTIONS		WEIGHTED AVERAGE EXERCISE PRICE ($)
Outstanding, January 1, 2017	10,242,162		52
Granted	3,043,448		59
Exercised(1)	(2,555,863	)	45
Forfeited	(239,498	)	58
Outstanding, December 31, 2017	10,490,249		55
Exercisable, December 31, 2017	2,013,983		45

(1) The weighted average share price for options exercised in 2017 was $60.

At March 8, 2018, 899,000,579 common shares and 14,092,467 stock options were outstanding.

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	6	MD&A	Financial and capital management

6.3 Cash flows

	2017		2016		$ CHANGE		% CHANGE
Cash flows from operating activities	7,358		6,643		715		10.8	%
Capital expenditures	(4,034	)	(3,771	)	(263	)	(7.0	%)
Cash dividends paid on preferred shares	(127	)	(126	)	(1	)	(0.8	%)
Cash dividends paid by subsidiaries to non-controlling interest	(34	)	(46	)	12		26.1	%
Acquisition and other costs paid	155		126		29		23.0	%
Voluntary DB pension plan contribution	100		400		(300	)	(75.0	%)
Free cash flow	3,418		3,226		192		6.0	%
Business acquisitions	(1,649	)	(404	)	(1,245	)	n.m.
Acquisition and other costs paid	(155	)	(126	)	(29	)	(23.0	%)
Voluntary DB pension plan contribution	(100	)	(400	)	300		75.0	%
Decrease in investments	6		107		(101	)	(94.4	%)
Loan to related party	–		(517	)	517		100.0	%
Disposition of intangibles and other assets	323		–		323		n.m.
Other investing activities	(83	)	1		(84	)	n.m.
Net issuance of debt instruments	691		719		(28	)	(3.9	%)
Issue of common shares	117		99		18		18.2	%
Repurchase of shares for settlement of share-based payments	(224	)	(106	)	(118	)	n.m.
Cash dividends paid on common shares	(2,512	)	(2,305	)	(207	)	(9.0	%)
Other financing activities	(60	)	(54	)	(6	)	(11.1	%)
Net (decrease) increase in cash and cash equivalents	(228	)	240		(468	)	n.m.

n.m.: not meaningful

CASH FLOWS FROM OPERATING ACTIVITIES AND FREE CASH FLOW

In 2017, BCE’s cash flows from operating activities, which included the contributions from the MTS acquisition, increased $715 million, compared to 2016, due mainly to higher adjusted EBITDA, a lower voluntary DB pension plan contribution made in 2017, improved working capital and lower severance and other costs paid, partly offset by higher income taxes paid and higher interest payments.

Free cash flow increased $192 million in 2017, compared to 2016, due to higher cash flows from operating activities excluding voluntary DB pension plan contributions, partly offset by higher capital expenditures.

CAPITAL EXPENDITURES

	2017		2016		$ CHANGE		% CHANGE
Bell Wireless	731		733		2		0.3	%
Capital intensity ratio	9.3	%	10.2	%			0.9	pts
Bell Wireline	3,174		2,936		(238	)	(8.1	%)
Capital intensity ratio	25.6	%	24.3	%			(1.3	) pts
Bell Media	129		102		(27	)	(26.5	%)
Capital intensity ratio	4.2	%	3.3	%			(0.9	) pts
BCE	4,034		3,771		(263	)	(7.0	%)
Capital intensity ratio	17.8	%	17.4	%			(0.4	) pts

BCE capital expenditures totaled $4,034 million in 2017, representing a 7% or $263 million increase over last year. Capital expenditures as a percentage of revenue (capital intensity ratio) increased to 17.8% in 2017, compared to 17.4% in 2016. The growth in capital spending was driven by increases in our Bell Wireline and Bell Media segments, while spending in our Bell Wireless segment remained relatively stable year over year. The growth in capital expenditures also included the impact from the acquisition and integration of Bell MTS. The higher year-over-year capital spending reflected:

• Greater spending in our wireline segment of $238 million in 2017 driven by the ongoing deployment of broadband fibre directly to more homes and businesses, including the rollout of Gigabit Fibe infrastructure in the city of Toronto and other urban areas along with the commencement of the FTTP build-out in the city of Montréal that was announced on March 27, 2017. The increase over last year also included the impact of the MTS acquisition and integration.

BCE Inc.   2017 ANNUAL REPORT   79
6	MD&A	Financial and capital management

• Higher capital spending at Bell Media of $27 million in 2017, mainly due to the Cieslok Media acquisition, the execution of contract wins in Astral and upgrades to Bell Media broadcast studios and TV production equipment
• Relatively stable spending at Bell Wireless, which declined $2 million year over year, primarily due to the slower pace of spending compared to 2016, offset in part by the acquisition and integration of MTS. Our capital investments in Wireless included the continued deployment of the LTE-A mobile network and the substantial completion of our 4G LTE network which reached 87% and 99% of the Canadian population, respectively, at December 31, 2017. Additionally, spending was focused on delivering faster speeds through carrier aggregation, the deployment of small-cell technology to optimize mobile coverage, signal quality and data back-haul, as well as the enhancement of customer experience and the expansion of wireless network capacity to support the growth in subscribers and data consumption.

VOLUNTARY DB PENSION PLAN CONTRIBUTION

In 2017, we made a voluntary contribution of $100 million, compared to a voluntary contribution of $400 million in 2016, to fund our post-employment benefit obligation. The voluntary contributions were funded from cash on hand at the end of 2017 and 2016 and will reduce the amount of BCE’s future pension funding obligations.

BUSINESS ACQUISITIONS

On March 17, 2017, BCE acquired all of the issued and outstanding common shares of MTS for a total consideration of $2,933 million, of which $1,339 million was paid in cash and the remaining $1,594 million through the issuance of approximately 27.6 million BCE common shares.

On January 3, 2017, BCE acquired all of the issued and outstanding common shares of Cieslok Media, for a total cash consideration of $161 million.

On October 3, 2016, BCE acquired the remaining 64.6% of the issued and outstanding shares of Q9 that it did not already own for a total cash consideration of approximately $158 million, net of cash on hand.

In Q1 2016, BCE completed a transaction with Corus under which Corus waived its HBO content rights in Canada and ceased operations of its Movie Central and Encore Avenue pay TV services in Western and Northern Canada, thereby allowing Bell Media to become the sole operator of HBO Canada nationally across all platforms and to expand TMN into a national pay TV service. TMN was successfully launched nationally on March 1, 2016. BCE paid to Corus a total consideration of $218 million, of which $21 million was paid in 2015.

Subsequent to year end, on January 5, 2018, BCE acquired all of the issued and outstanding shares of AlarmForce for a total consideration of $182 million, of which $181 million was paid in cash and the remaining $1 million through the issuance of 22,531 BCE common shares.

Subsequent to the acquisition of AlarmForce, on January 5, 2018, BCE sold AlarmForce’s approximate 39,000 customer accounts in British Columbia, Alberta, and Saskatchewan to TELUS for total proceeds of approximately $67 million subject to customary closing adjustments.

DECREASE IN INVESTMENTS

Decrease in investments of $107 million in 2016 included proceeds received from one of our equity investments from the sale of a portion of its operations.

LOAN TO A RELATED PARTY

In 2016, prior to closing the acquisition of Q9, Bell Canada provided a loan of $517 million to Q9 for the repayment of its debt.

DISPOSITION OF INTANGIBLE AND OTHER ASSETS

During Q2 2017, BCE completed the previously announced divestiture of approximately one-quarter of postpaid wireless subscribers and 15 retail locations previously held by MTS, as well as certain Manitoba network assets, to TELUS for total proceeds of $323 million.

DEBT INSTRUMENTS

We use a combination of short-term and long-term debt to finance our operations. Our short-term debt consists mostly of notes payable under commercial paper programs, loans securitized by trade receivables and bank facilities. We usually pay fixed rates of interest on our long-term debt and floating rates on our short-term debt. As at December 31, 2017, all of our debt was denominated in Canadian dollars with the exception of our commercial paper which is denominated in U.S. dollars, all of which has been hedged for foreign currency fluctuations through forward currency contracts.

2017

We issued $691 million of debt, net of repayments. This included the issuances of Series M-40 MTN, M-44 MTN, M-45 MTN and M-46 MTN debentures at Bell Canada with total principal amounts of $700 million, $1 billion, $500 million and $800 million, respectively and the issuance (net of repayments) of $333 million of notes payable. These issuances were partly offset by the early redemption of Series M-22 MTN, M-35 and M-36 debentures in the principal amounts of $1 billion, $350 million and $300 million, respectively, payments of finance leases and other debt of $512 million and the repayment of borrowings under our unsecured committed term credit facility of $480 million.

80   BCE Inc.   2017 ANNUAL REPORT
	6	MD&A	Financial and capital management

2016

We issued $719 million of debt, net of repayments. This included the issuance of Series M-41 MTN, M-42 MTN and M-43 MTN debentures at Bell Canada with principal amounts of $750 million, $850 million and $650 million, respectively, and the issuance (net of repayments) of $991 million of notes payable. These issuances were partly offset by the early debt redemption of Series M-18 MTN, M-19 MTN, M-23 MTN and M-32 debentures, with principal amounts of $700 million, $200 million, $500 million and $500 million, respectively, the repayment of Series M-38 debentures of $150 million and payments of finance leases and other debt of $472 million.

CASH DIVIDENDS PAID ON COMMON SHARES

In 2017, cash dividends paid on common shares of $2,512 million increased by $207 million compared to 2016, due to a higher dividend paid in 2017 of $2.835 per common share compared to $2.6975 per common share in 2016 and a higher number of outstanding common shares principally as a result of shares issued for the acquisition of MTS.

6.4 Post-employment benefit plans

For the year ended December 31, 2017, we recorded an increase in our post-employment benefit obligations and a loss, before taxes, in OCI of $338 million. This was due to a lower actual discount rate of 3.6% at December 31, 2017, compared to 4.0% at December 31, 2016. The loss was partly offset by a higher-than-expected return on plan assets.

For the year ended December 31, 2016, we recorded an increase in our post-employment benefit obligations and a loss, before taxes, in OCI of $262 million. This was due to a lower actual discount rate of 4.0% at December 31, 2016, compared to 4.2% at December 31, 2015. The loss was partly offset by a higher-than-expected return on plan assets.

6.5 Financial risk management

Management’s objectives are to protect BCE and its subsidiaries on a consolidated basis against material economic exposures and variability of results from various financial risks that include credit risk, liquidity risk, foreign currency risk, interest rate risk, equity price risk and longevity risk. These risks are further described in Note 2, Significant accounting policies, Note 8, Other (expense) income, Note 22, Post-employment benefit plans and Note 24, Financial and capital management in BCE’s 2017 consolidated financial statements.

The following table outlines our financial risks, how we manage these risks and their financial statement classification.

FINANCIAL RISK	DESCRIPTION OF RISK	MANAGEMENT OF RISK AND FINANCIAL STATEMENT CLASSIFICATION
Credit risk	We are exposed to credit risk from operating activities and certain financing activities, the maximum exposure of which is represented by the carrying amounts reported in the statements of financial position. We are exposed to credit risk if counterparties to our trade receivables and derivative instruments are unable to meet their obligations.	Large and diverse customer base Deal with institutions with investment-grade credit ratings Regularly monitor our credit risk and exposure Our trade receivables and allowance for doubtful accounts balances at December 31, 2017 were $3,138 million and $55 million, respectively
Liquidity risk	We are exposed to liquidity risk for financial liabilities.	Sufficient cash from operating activities, possible capital markets financing and committed bank facilities to fund our operations and fulfill our obligations as they become due Refer to section 6.7, Liquidity – Contractual obligations, for a maturity analysis of our recognized financial liabilities
Foreign currency risk	We are exposed to foreign currency risk related to anticipated transactions and certain foreign currency debt. A 10% depreciation (appreciation) in the value of the Canadian dollar relative to the U.S. dollar would result in a gain (loss) of $2 million recognized in net earnings at December 31, 2017 and a gain (loss) of $133 million recognized in OCI at December 31, 2017, with all other variables held constant. Refer to the following Fair value section for details on our derivative financial instruments.	Foreign currency forward contracts on our anticipated transactions and commercial paper maturing in 2018 to 2021 of $4.0 billion in U.S. dollars ($5.1 billion in Canadian dollars) at December 31, 2017, to manage foreign currency risk related to anticipated transactions and foreign currency debt For cash flow hedges, changes in the fair value are recognized in OCI, except for any ineffective portion, which is recognized immediately in earnings in Other (expense) income. Realized gains and losses in Accumulated OCI are reclassified to the income statements or as an adjustment to the cost basis of the hedged item in the same periods as the corresponding hedged transactions are recognized. For economic hedges, changes in the fair value are recognized in Other (expense) income In 2017, we settled a cross currency basis swap with a notional amount of $357 million in U.S. dollars ($480 million in Canadian dollars) used to hedge borrowings under a credit facility For cross currency basis swaps, changes in the fair value of these derivatives and the related credit facility were recognized in Other (expense) income in the income statements and offset, unless a portion of the hedging relationship was ineffective

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FINANCIAL RISK	DESCRIPTION OF RISK	MANAGEMENT OF RISK AND FINANCIAL STATEMENT CLASSIFICATION
Interest rate risk	We are exposed to risk on the interest rates of our debt, our post-employment benefit plans and on dividend rate resets on our preferred shares. A 1% increase (decrease) in interest rates would result in a decrease (increase) of $29 million in net earnings at December 31, 2017. Refer to the following Fair value section for details on our derivative financial instruments.	We use interest rate swaps to manage the mix of fixed and floating interest rates of our debt. We also use interest rate locks to hedge the interest rates on future debt issuances and to economically hedge dividend rate resets on preferred shares. There were no interest rate swaps and locks outstanding as of December 31, 2017 For our post-employment benefit plans, the interest rate risk is managed using a liability matching approach which reduces the exposure of the DB pension plans to a mismatch between investment growth and obligation growth
Equity price risk	We are exposed to risk on our cash flow related to share-based payment plans. A 5% increase (decrease) in the market price of BCE’s common shares at December 31, 2017 would result in a gain (loss) of $38 million recognized in net earnings for 2017, with all other variables held constant. Refer to the following Fair value section for details on our derivative financial instruments.	Equity forward contracts with a fair value of $45 million at December 31, 2017 on BCE’s common shares to economically hedge the cash flow exposure related to share-based payment plans Changes in the fair value are recorded in the income statements in Operating costs for derivatives used to hedge a cash-settled share-based payment plan and Other (expense) income for derivatives used to hedge equity-settled share-based payment plans
Longevity risk	We are exposed to life expectancy risk on our post-employment benefit plans.	The Bell Canada pension plan has an investment arrangement to hedge part of its exposure to potential increases in longevity which covers approximately $5 billion of post-employment benefit obligations

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 future cash flows and discount rates, all of which reflect varying degrees of risk. Income taxes and other expenses that would be incurred on disposition of financial instruments are not reflected 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, dividends payable, trade payables and accruals, compensation payable, severance and other costs payable, interest payable, notes payable and loans secured by trade receivables approximate fair value as they are short-term.

The following table provides the fair value details of financial instruments measured at amortized cost in the statements of financial position.

			DECEMBER 31, 2017		DECEMBER 31, 2016
	CLASSIFICATION	FAIR VALUE METHODOLOGY	CARRYING VALUE	FAIR VALUE	CARRYING VALUE	FAIR VALUE
CRTC tangible benefits obligation	Trade payables and other liabilities and non-current liabilities	Present value of estimated future cash flows discounted using observable market interest rates	111	110	166	169
CRTC deferral account obligation	Trade payables and other liabilities and non-current liabilities	Present value of estimated future cash flows discounted using observable market interest rates	124	128	136	145
Debt securities, finance leases and other debt	Debt due within one year and long-term debt	Quoted market price of debt or present value of future cash flows discounted using observable market interest rates	19,321	21,298	17,879	20,093

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The following table provides the fair value details of financial instruments measured at fair value in the statements of financial position.

				FAIR VALUE AT DECEMBER 31
	CLASSIFICATION	CARRYING VALUE OF ASSET (LIABILITY) AT DECEMBER 31		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)	OBSERVABLE MARKET DATA (LEVEL 2)(1)		NON-OBSERVABLE MARKET INPUTS (LEVEL 3)(2)
2017
Available-for-sale (AFS) publicly-traded and privately-held investments(3)	Other non-current assets	103		1	–		102
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities	(48	)	–	(48	)	–
MLSE financial liability(4)	Trade payables and other liabilities	(135	)	–	–		(135	)
Other	Other non-current assets and liabilities	60		–	106		(46	)

2016
AFS publicly-traded and privately-held investments(3)	Other non-current assets	103		1	–	102
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities	166		–	166	–
MLSE financial liability(4)	Trade payables and other liabilities	(135	)	–	–	(135	)
Other	Other non-current assets and liabilities	35		–	88	(53	)

(1)	Observable market data such as equity prices, interest rates, swap rate curves and foreign currency exchange rates.
(2)	Non-observable market inputs such as discounted cash flows and earnings multiples. A reasonable change in our assumptions would not result in a significant increase (decrease) to our level 3 financial instruments.
(3)	Unrealized gains and losses on AFS financial assets are recorded in OCI and are reclassified to Other (expense) income in the income statements when realized or when an impairment is determined.
(4)	Represents BCE’s obligation to repurchase the BCE Master Trust Fund’s (Master Trust) 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recorded in Other (expense) income in the income statements. The option is exercisable in 2017 and thereafter.

6.6 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 financing 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.

The following table provides BCE’s and Bell Canada’s credit ratings, which are considered investment grade, as at March 8, 2018 from DBRS, Moody’s and S&P.

KEY CREDIT RATINGS

	BELL CANADA(1)
MARCH 8, 2018	DBRS	MOODY’S	S&P
Commercial paper	R-2 (high)	P-2	A-1 (Low) (Canadian scale)
			A-2 (Global scale)
Long-term debt	BBB (high)	Baa1	BBB+
Subordinated long-term debt	BBB (low)	Baa2	BBB
	BCE(1)
	DBRS	MOODY’S	S&P
Preferred shares	Pfd-3	–	P-2 (Low) (Canadian scale)
			BBB- (Global scale)

(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.

As of March 8, 2018, BCE and Bell Canada’s credit ratings have stable outlooks from DBRS, Moody’s and S&P.

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6.7 Liquidity

SOURCES OF LIQUIDITY

Our cash and cash equivalents balance at the end of 2017 was $625 million. We expect that this balance, our 2018 estimated cash flows from operations, and capital markets financing, including commercial paper, will permit us to meet our cash requirements in 2018 for capital expenditures, post-employment benefit plans funding, dividend payments, the payment of contractual obligations, maturing debt, ongoing operations, and other cash requirements.

Should our 2018 cash requirements exceed our cash and cash equivalents balance, cash generated from our operations, and capital markets financing, we would expect to cover such a shortfall by drawing under committed credit facilities that are currently in place or through new facilities to the extent available.

Our cash flows from operations, cash and cash equivalents balance, capital markets financing and credit facilities should give us flexibility in carrying out our plans for future growth, including business acquisitions and contingencies.

Subsequent to year end, on March 7, 2018, we announced the issuance of 3.35% Series M-47 MTN debentures under Bell Canada’s 1997 trust indenture, with a principal amount of $500 million, which mature on March 12, 2025. The net proceeds of the offering are intended to be used to redeem, prior to maturity, Bell Canada’s 5.52% Series M-33 debentures having an outstanding principal amount of $300 million, which are due on February 26, 2019, and for the repayment of other short-term debt.

The table below is a summary of our total bank credit facilities at December 31, 2017.

DECEMBER 31, 2017	TOTAL AVAILABLE	DRAWN	LETTERS OF CREDIT	COMMERCIAL PAPER OUTSTANDING	NET AVAILABLE
Committed credit facilities
Unsecured revolving credit and expansion facilities (1)(2)	3,500	–	–	3,116	384
Other	134	–	106	–	28
Total committed credit facilities	3,634	–	106	3,116	412
Total non-committed credit facilities	1,829	–	1,148	–	681
Total committed and non-committed credit facilities	5,463	–	1,254	3,116	1,093

(1)	Bell Canada’s $2.5 billion revolving credit facility expires in November 2022 and its $1 billion expansion credit facility expires in November 2020.
(2)	As of December 31, 2017, Bell Canada’s outstanding commercial paper included $2,484 million in U.S. dollars ($3,116 in Canadian dollars). All of Bell Canada’s commercial paper outstanding is included in debt due within one year.

Bell Canada may issue notes under its Canadian and U.S. commercial paper programs up to the maximum aggregate principal amount of $2.5 billion in either Canadian or U.S. currency provided that at no time shall such maximum amount of notes exceed $3.5 billion in Canadian currency which equals the aggregate amount available under Bell Canada’s supporting committed revolving and expansion credit facilities as at December 31, 2017. The total amount of the committed revolving and expansion credit facilities may be drawn at any time. Some of our credit agreements require us to meet specific financial 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 under such agreements.

CASH REQUIREMENTS

CAPITAL EXPENDITURES

In 2018, our planned capital spending will be focused on our strategic imperatives, reflecting an appropriate level of investment in our networks and services.

POST-EMPLOYMENT BENEFIT PLANS FUNDING

Our post-employment benefit plans include DB pension and defined contribution (DC) pension plans, as well as other post-employment benefits (OPEBs) plans. The funding requirements of our post-employment benefit plans, resulting from valuations of our plan assets and liabilities, depend on a number of factors, including actual returns on post-employment benefit plan assets, long-term interest rates, plan demographics, and applicable regulations and actuarial standards. Our expected funding for 2018 is detailed in the following table and is subject to actuarial valuations that will be completed in mid-2018. Actuarial valuations were last performed for our significant post-employment benefit plans as at December 31, 2016.

2018 EXPECTED FUNDING	TOTAL
DB pension plans – service cost	203
DB pension plans – deficit	7
DB pension plans	210
OPEBs	80
DC pension plans	110
Total net post-employment benefit plans	400

DIVIDEND PAYMENTS

In 2018, the cash dividends to be paid on BCE’s common shares are expected to be higher than in 2017 as BCE’s annual common share dividend increased by 5.2% to $3.02 per common share from $2.87 per common share effective with the dividend payable on April 15, 2018. This increase is consistent with BCE’s common share dividend payout policy of a target payout between 65% and 75% of free cash flow. BCE’s dividend policy and the declaration of dividends are subject to the discretion of the BCE Board.

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CONTRACTUAL OBLIGATIONS

The following table is a summary of our contractual obligations at December 31, 2017 that are due in each of the next five years and thereafter.

	2018	2019	2020	2021	2022	THERE- AFTER	TOTAL
Recognized financial liabilities
Long-term debt	661	1,541	1,424	2,247	1,714	9,558	17,145
Notes payable	3,151	–	–	–	–	–	3,151
Minimum future lease payments under finance leases	572	501	326	278	248	883	2,808
Loans secured by trade receivables	921	–	–	–	–	–	921
Interest payable on long-term debt, notes payable and loan secured by trade receivables	792	688	628	586	525	5,197	8,416
MLSE financial liability	135	–	–	–	–	–	135
Commitments (off-balance sheet)
Operating leases	312	264	225	175	119	341	1,436
Commitments for property, plant and equipment and intangible assets	1,039	808	614	516	372	808	4,157
Purchase obligations	865	664	550	498	429	903	3,909
Proposed acquisition of Séries+ and Historia specialty channels	200	–	–	–	–	–	200
Acquisition of AlarmForce(1)	182	–	–	–	–	–	182
Total	8,830	4,466	3,767	4,300	3,407	17,690	42,460

(1) This commitment was settled on January 5, 2018, upon completion of the acquisition of AlarmForce.

BCE’s significant finance leases are for satellites and office premises. The office leases have a typical lease term of 22 years. The leases for satellites, used to provide programming to our Bell TV customers, have a term of 15 years. These satellite leases are non-cancellable. Minimum future lease payments under finance leases include future finance costs of $636 million.

BCE’s significant operating leases are for office premises, cellular tower sites, retail outlets, and OOH advertising spaces with lease terms ranging from 1 to 50 years. These leases are non-cancellable. Rental expense relating to operating leases was $399 million in 2017 and $353 million in 2016.

Our commitments for property, plant and equipment and intangible assets include program and feature film rights and investments to expand and update our networks to meet customer demand.

Purchase obligations consist of contractual obligations under service and product contracts for operating expenditures and other purchase obligations.

INDEMNIFICATIONS AND GUARANTEES (OFF-BALANCE SHEET)

As a regular part of our business, we enter into agreements that provide for indemnifications 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. While some of the agreements specify a maximum potential exposure, many do not specify a maximum amount or termination date.

We cannot reasonably estimate the maximum potential amount we could be required to pay counterparties because of the nature of almost all of these indemnifications and guarantees. As a result, we cannot determine how they could affect our future liquidity, capital resources or credit risk profile. We have not made any significant payments under indemnifications or guarantees in the past.

LITIGATION

In the ordinary course of our business, we become involved in various claims and legal proceedings seeking monetary damages and other relief. In particular, because of the nature of our consumer-facing business, we are exposed to class actions pursuant to which substantial monetary damages may be claimed. Due to the inherent risks and uncertainties of the litigation process, we cannot predict the final outcome or timing of claims and legal proceedings. Subject to the foregoing, and based on information currently available and management’s assessment of the merits of the claims and legal proceedings pending at March 8, 2018, management believes that the ultimate resolution of these claims and legal proceedings is unlikely to have a material and negative effect on our financial statements or operations. We believe that we have strong defences and we intend to vigorously defend our positions.

You will find a description of the principal legal proceedings pending at March 8, 2018 in the BCE 2017 AIF.

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7 Selected annual and quarterly information

7.1 Annual financial information

The following table shows selected consolidated financial data of BCE for 2017, 2016 and 2015, based on the annual consolidated financial statements, which are 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.

	2017		2016		2015
CONSOLIDATED INCOME STATEMENTS
Operating revenues
Service	21,143		20,090		19,759
Product	1,576		1,629		1,755
Total operating revenues	22,719		21,719		21,514
Operating costs	(13,541	)	(12,931	)	(12,963	)
Adjusted EBITDA	9,178		8,788		8,551
Severance, acquisition and other costs	(190	)	(135	)	(446	)
Depreciation	(3,037	)	(2,877	)	(2,890	)
Amortization	(813	)	(631	)	(530	)
Finance costs
Interest expense	(955	)	(888	)	(909	)
Interest on post-employment benefit obligations	(72	)	(81	)	(110	)
Other (expense) income	(102	)	21		(12	)
Income taxes	(1,039	)	(1,110	)	(924	)
Net earnings	2,970		3,087		2,730
Net earnings attributable to:
Common shareholders	2,786		2,894		2,526
Preferred shareholders	128		137		152
Non-controlling interest	56		56		52
Net earnings	2,970		3,087		2,730
Net earnings per common share
Basic	3.12		3.33		2.98
Diluted	3.11		3.33		2.98
RATIOS
Adjusted EBITDA margin (%)	40.4	%	40.5	%	39.7	%
Return on equity (%)(1)	19.4	%	21.8	%	21.1	%

(1) Net earnings attributable to common shareholders divided by total average equity attributable to BCE shareholders excluding preferred shares.

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	2017		2016		2015
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Total assets	54,263		50,108		47,993
Cash and cash equivalents	625		853		613
Debt due within one year (including notes payable and loans secured by trade receivables)	5,178		4,887		4,895
Long-term debt	18,215		16,572		15,390
Total non-current liabilities	23,993		22,146		20,672
Equity attributable to BCE shareholders	19,160		17,540		17,023
Total equity	19,483		17,854		17,329
CONSOLIDATED STATEMENTS OF CASH FLOWS
Cash flows from operating activities	7,358		6,643		6,274
Cash flows used in investing activities	(5,437	)	(4,584	)	(4,114	)
Capital expenditures	(4,034	)	(3,771	)	(3,626	)
Business acquisitions	(1,649	)	(404	)	(311	)
Business dispositions	–		18		409
Acquisition of spectrum licences	–		(1	)	(535	)
Disposition of intangibles and other assets	323		–		–
Loan to related party	–		(517	)	–
Cash flows used in financing activities	(2,149	)	(1,819	)	(2,113	)
Issue of common shares	117		99		952
Net issuance (repayment) of debt instruments	691		719		(510	)
Common shares issuance cost	–		–		(35	)
Cash dividends paid on common shares	(2,512	)	(2,305	)	(2,169	)
Cash dividends paid on preferred shares	(127	)	(126	)	(150	)
Cash dividends paid by subsidiaries to non-controlling interest	(34	)	(46	)	(41	)
Free cash flow	3,418		3,226		2,999
SHARE INFORMATION
Average number of common shares (millions)	894.3		869.1		847.1
Common shares outstanding at end of year (millions)	901.0		870.7		865.6
Market capitalization(1)	54,402		50,527		46,275
Dividends declared per common share (dollars)	2.87		2.73		2.60
Dividends declared on common shares	(2,564	)	(2,374	)	(2,213	)
Dividends declared on preferred shares	(128	)	(137	)	(152	)
Closing market price per common share (dollars)	60.38		58.03		53.46
Total shareholder return	8.9	%	13.7	%	5.3	%
RATIOS
Capital intensity (%)	17.8	%	17.4	%	16.9	%
Price to earnings ratio (times)(2)	19.35		17.43		17.94
OTHER DATA
Number of employees (thousands)	52		48		50

(1)	BCE’s common share price at the end of the year multiplied by the number of common shares outstanding at the end of the year.
(2)	BCE’s common share price at the end of the year divided by EPS.

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7.2 Quarterly financial information

The following table shows selected BCE consolidated financial data by quarter for 2017 and 2016. This quarterly information is unaudited but has been prepared on the same basis as the annual consolidated financial statements. We discuss the factors that caused our results to vary over the past eight quarters throughout this MD&A.

	2017								2016
	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1
Operating revenues
Service	5,435		5,322		5,335		5,051		5,169		5,025		4,988		4,908
Product	523		356		364		333		533		382		352		362
Total operating revenues	5,958		5,678		5,699		5,384		5,702		5,407		5,340		5,270
Adjusted EBITDA	2,217		2,366		2,381		2,214		2,121		2,236		2,268		2,163
Severance, acquisition and other costs	(47	)	(23	)	(36	)	(84	)	(11	)	(25	)	(57	)	(42	)
Depreciation	(781	)	(765	)	(769	)	(722	)	(719	)	(706	)	(713	)	(739	)
Amortization	(209	)	(208	)	(211	)	(185	)	(165	)	(161	)	(156	)	(149	)
Net earnings	617		817		811		725		699		800		830		758
Net earnings attributable to common shareholders	575		770		762		679		657		752		778		707
Net earnings per common share
Basic	0.64		0.86		0.84		0.78		0.75		0.87		0.89		0.82
Diluted	0.63		0.86		0.84		0.78		0.75		0.87		0.89		0.82
Average number of common shares outstanding – basic (millions)	900.6		900.4		900.1		875.7		870.5		869.9		869.1		867.1
OTHER INFORMATION
Cash flows from operating activities	1,658		2,233		2,154		1,313		1,520		1,943		1,890		1,290
Free cash flow	652		1,183		1,094		489		923		951		934		418
Capital expenditures	(1,100	)	(1,040	)	(1,042	)	(852	)	(993	)	(976	)	(950	)	(852	)

FOURTH QUARTER HIGHLIGHTS

OPERATING REVENUES	Q4 2017		Q4 2016		$ CHANGE		% CHANGE
Bell Wireless	2,070		1,883		187		9.9	%
Bell Wireline	3,222		3,137		85		2.7	%
Bell Media	834		845		(11	)	(1.3	%)
Inter-segment eliminations	(168	)	(163	)	(5	)	(3.1	%)
Total BCE operating revenues	5,958		5,702		256		4.5	%

ADJUSTED EBITDA	Q4 2017	Q4 2016	$ CHANGE		% CHANGE
Bell Wireless	736	674	62		9.2	%
Bell Wireline	1,310	1,259	51		4.1	%
Bell Media	171	188	(17	)	(9.0	%)
Total BCE adjusted EBITDA	2,217	2,121	96		4.5	%

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BCE operating revenues increased by 4.5% in Q4 2017, compared to the prior year, driven by growth in both our Bell Wireless and Bell Wireline segments, offset in part by a modest decline in our Bell Media segment.

BCE adjusted EBITDA grew by 4.5% in Q4 2017, compared to Q4 2016, due to year-over-year increases in our Bell Wireless and Bell Wireline segments, moderated by the decline in our Bell Media segment. BCE adjusted EBITDA margin remained unchanged at 37.2% compared to prior year.

Bell Wireless operating revenues increased by 9.9% in Q4 2017, compared to the same period last year, driven by growth in both service revenues of 10.6% and product revenues of 3.5%. The year-over-year increase in service revenue was mainly attributable to a greater postpaid subscriber base combined with higher blended ARPU of 2.4% and the contribution from Bell MTS. The increase in blended ARPU was driven by postpaid ARPU growth reflecting a higher postpaid subscriber mix, the flow-through of 2016 pricing changes, as well as a greater mix of postpaid LTE and LTE-A customers in our subscriber base resulting in greater data consumption and higher demand for larger data plans, offset in part by the unfavourable impact of Telecom Decision CRTC 2016-171 and the increased adoption of all-inclusive rate plans resulting in lower out of bundle usage. Wireless product revenues grew by 3.5%, year over year, mainly from a larger proportion of high end devices in our sales mix, higher gross activations and customer upgrades, along with the contribution from the MTS acquisition, moderated by increased promotional offers in a highly competitive marketplace and lower radio sales.

Bell Wireless adjusted EBITDA grew 9.2% in Q4 2017, compared to the prior year, driven by the flow-through of higher operating revenues, moderated by higher operating expenses primarily from our continued investment in customer retention and acquisition, expense contribution from Bell MTS, higher labour expense to support the growth in the business, greater network operating costs to support expanding capacity and higher advertising costs mainly driven by the recent launch of Lucky Mobile. Adjusted EBITDA margin, based on wireless operating service revenues of 38.9%, decreased 0.4 pts over last year.

Bell Wireline operating revenues in Q4 2017 increased by 2.7%, year over year, driven by higher service revenues of 3.6%, moderated by a decline in product revenues of 4.4%. The growth in service revenues was driven by the contribution from the acquisition of MTS, growth in our Internet and IPTV subscriber bases, higher household ARPU and growth in IP broadband connectivity services. This was offset in part by ongoing erosion in our voice, satellite TV, and legacy data revenues, lower business solution services revenue, increased residential customer acquisition, retention and bundle discounts due to aggressive offers from cable competitors, as well as the unfavourable CRTC regulatory impact from Telecom Decision CRTC 2016-171. The decline in product revenues reflected competitive pricing pressures in our business and wholesale markets and lower consumer electronic sales at The Source, mitigated in part by the contribution from the acquisition of MTS.

Bell Wireline adjusted EBITDA in Q4 2017 increased by 4.1%, year over year, with a corresponding adjusted EBITDA margin increase to 40.7% over the 40.1% experienced in Q4 2016, driven by the contribution from Bell MTS, growth in our Internet and IPTV businesses and continued effective cost containment, offset in part by the decline in our voice, satellite TV, and legacy data, including reduced customer spending and ongoing competitive pricing pressures in our business market.

Bell Media operating revenues decreased by 1.3% in Q4 2017, compared to the same period last year, due to lower advertising revenues driven by continued market softness and lower audience levels, which unfavourably impacted conventional and specialty TV and radio platforms, partially mitigated by higher OOH advertising revenues as a result of the contribution from the Cieslok Media acquisition and newly awarded contracts, as well as higher year-over-year revenue from digital properties. The decline in operating revenues was moderated by higher subscriber revenues driven by the growth in our subscriber base from our TV Everywhere GO Products, Crave TV and pay TV services, and the flow-through of rate increases on contract renewals that occurred earlier in the year.

Bell Media adjusted EBITDA decreased by 9.0% in Q4 2017, compared to the same period last year, due to lower operating revenues coupled with higher programming and content costs primarily related to sports broadcast rights and higher expenses in OOH resulting from the Cieslok Media acquisition and the execution of newly awarded contracts. This was partially mitigated by reduced labour costs driven mainly by workforce reductions.

BCE capital expenditures of $1,100 million in Q4 2017 increased by $107 million compared to last year, corresponding to an increased capital intensity ratio of 18.5% compared to 17.4% last year. The higher year-over-year capital investment was driven by increased spending across all three of our segments and included the impact from the acquisition and integration of Bell MTS in our wireless and wireline segments. The higher spending in our wireline segment of $67 million also reflected the continued deployment of broadband fibre directly to more homes and businesses, including the build-out of Gigabit Fibe infrastructure in the city of Toronto and other urban locations and the commencement of the FTTP build-out in the city of Montréal. The increased capital expenditures in our wireless segment of $25 million was mainly impacted by timing of spend. At Bell Media, spending increased by $15 million mainly due to the Cieslok Media acquisition, the execution of contract wins in Astral and upgrades to Bell Media broadcast studios, TV production equipment and digital platforms.

BCE severance, acquisition and other costs of $47 million in Q4 2017 increased by $36 million, compared to Q4 2016, due in part to higher workforce reduction initiatives and higher other costs.

BCE depreciation of $781 million in Q4 2017 increased by $62 million, year over year, mainly due to the acquisition of MTS and a higher asset base as we continued to invest in our broadband and wireless networks as well as our IPTV service. The increase was partly offset by lower depreciation due to an increase in the estimate of useful lives of certain assets as a result of our ongoing annual review process. The changes to useful lives have been applied prospectively, effective January 1, 2017, as described in section 10.1, Our accounting policies – Critical accounting estimates and key judgments.

BCE amortization was $209 million in Q4 2017, up from $165 million in Q4 2016, due mainly to the acquisition of MTS and a higher asset base.

BCE net earnings attributable to common shareholders of $575 million in Q4 2017, or $0.64 per share, were lower than the $657 million, or $0.75 per share, reported in Q4 2016. The year-over-year decrease was due mainly to higher depreciation and amortization expense, higher severance, acquisition and other costs and higher other expense which included impairment charges of $82 million relating to our Bell Media segment, partly offset by higher adjusted EBITDA. Adjusted net earnings increased to $684 million, from $667 million in Q4 2016, and adjusted EPS remained flat to prior year.

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BCE cash flows from operating activities was $1,658 million in Q4 2017 compared to $1,520 million in Q4 2016. The increase is mainly attributable to higher adjusted EBITDA and a lower voluntary DB pension plan contribution made in 2017, partly offset by reduced working capital, higher income taxes paid and higher interest payments, all of which included the contributions from MTS.

BCE free cash flow generated in Q4 2017 was $652 million, a decrease of $271 million compared to Q4 2016. This was due to lower cash flows from operating activities excluding a voluntary DB pension plan contribution and higher capital expenditures.

SEASONALITY CONSIDERATIONS

Some of our segments’ revenues and expenses vary slightly by season, which may impact quarter-to-quarter operating results.

Bell Wireless operating results are influenced by the timing and richness of promotional activities, the level of overall competitive intensity, and the seasonal effect of higher levels of subscriber additions and handset discounts that may result in higher subscriber acquisition and activation-related expenses in certain quarters. In particular, subscriber activations are typically lowest in the first quarter, while adjusted EBITDA tends to be lower in the third and fourth quarters, due to higher subscriber acquisition and retention costs associated with a greater number of new subscriber activations and upgrades during the back-to-school and Black Friday to Christmas holiday periods. Additionally, wireless ARPU historically has experienced seasonal sequential increases in the second and third quarters, due to higher levels of usage and roaming in the spring and summer months, followed by historical seasonal sequential declines in the fourth and first quarters. However, this seasonal effect on ARPU has moderated, as unlimited voice options and larger usage data plans with higher recurring monthly fees have become more prevalent, resulting in less variability in chargeable data usage.

Bell Wireline 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 Q4 Christmas holiday period. However, this may vary from year to year depending on the strength of the economy and the presence of targeted sales initiatives, which can influence customer spending. Home Phone, TV and Internet subscriber activity is subject to modest seasonal fluctuations, 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.

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 fluctuations in consumer retail activity during the year.

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8 Regulatory environment

8.1 Introduction

This section describes certain legislation that governs our business and provides highlights of recent regulatory initiatives and proceedings, government consultations and government positions that affect us, influence our business and may continue to affect our ability to compete in the marketplace. Bell Canada and several of its direct and indirect subsidiaries, including Bell Mobility, Bell ExpressVu Limited Partnership (Bell ExpressVu), Bell Media, NorthernTel, Limited Partnership (NorthernTel), Télébec, Limited Partnership (Télébec) and Northwestel, are governed by the Telecommunications Act, the Broadcasting Act, the Radiocommunication Act and/or the Bell Canada Act. Our business is affected by regulations, policies and decisions made by various regulatory agencies, including the CRTC, a quasi-judicial agency of the Government of Canada responsible for regulating Canada’s telecommunications and broadcasting industries, and other federal government departments, in particular ISED.

The CRTC regulates the prices we can charge for telecommunications services in areas where it determines there is not enough competition to protect the interests of consumers. The CRTC has determined that competition was sufficient to grant forbearance from retail price regulation under the Telecommunications Act for the vast majority of our wireline residential and business telephone services, as well as for our wireless services (except our domestic wholesale wireless roaming service and certain restrictions for retail wireless services set out in the Wireless Code of Conduct (the Wireless Code)) and Internet services (except in certain parts of Northwestel’s territory, where the CRTC re-regulated Internet services in 2013). Our TV distribution and our TV and radio broadcasting businesses are subject to the Broadcasting Act and are, for the most part, not subject to retail price regulation.

Although most of our retail services are not price-regulated, government agencies and departments such as the CRTC, ISED, Canadian Heritage and the Competition Bureau continue to play a significant role in regulatory matters such as mandatory access to networks, spectrum auctions, approval of acquisitions, broadcast licensing and foreign ownership requirements. Adverse decisions by regulatory agencies or increasing regulation could have negative financial, operational, reputational or competitive consequences for our business.

8.2 Telecommunications Act

The Telecommunications Act governs telecommunications in Canada. It defines the broad objectives of Canada’s 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 of companies and partnerships, including Bell Canada, Bell Mobility, NorthernTel, Télébec and Northwestel.

Under the Telecommunications Act, all facilities-based telecommunications service providers in Canada, known as telecommunications common carriers (TCCs), must seek regulatory approval for all 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 Canada’s telecommunications policy. In addition, 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.

REVIEW OF BASIC TELECOMMUNICATIONS SERVICES

On December 21, 2016, the CRTC issued Telecom Regulatory Policy CRTC 2016-496, in which it determined broadband Internet to be a basic service and created a new fund designed to complement government investments in expanding access to broadband Internet across Canada. The new fund will collect and distribute $750 million over a five-year period to support an aspirational goal of bringing broadband Internet with speeds of 50 Mbps to 90% of Canadian households by the end of 2021. The contributions to the new fund will be collected from telecommunications service providers, like those of the BCE group, and distributed through a competitive bidding process to support broadband deployment initiatives. The fund is to start at $100 million in its first year and grow by $25 million each year until it caps out at $200 million in the fifth year. While we will be required to contribute to the new broadband fund based on our percentage of industry revenues for voice, data and Internet services, the extent of the impact of this new fund on our business is not yet known, as funds contributed may be offset by any funds received should we seek and be awarded funds to deploy broadband services as part of the CRTC’s program. The CRTC has launched a proceeding to determine the details of the competitive bidding process and we anticipate that the fund will likely be operational in 2019.

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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 (i.e. businesses that on average spend less than $2,500 per month on telecom services) in all provinces and territories.

The Wireless Code regulates certain aspects of the provision of wireless services. Most notably, the Wireless Code prevents wireless service providers from charging an early cancellation fee after a customer has been under contract for 24 months and requires providers to recover any handset subsidies in two years or less. These requirements have effectively removed contracts with terms greater than two years from the marketplace.

On June 15, 2017, the CRTC issued Telecom Regulatory Policy CRTC 2017-200, making targeted changes to the Wireless Code, effective December 1, 2017, and clarifying existing rules. The revisions to the Wireless Code prevent service providers from selling locked devices, increase voice, text and data usage allowances for customers to try out their services during the mandatory 15-day buyer’s trial period for purchased devices, and establish additional controls related to data overage and data roaming charges, among other things. These changes have had an adverse effect on our wireless business.

PROCEEDINGS REGARDING WHOLESALE DOMESTIC WIRELESS SERVICES

In Telecom Regulatory Policy CRTC 2015-177, the CRTC mandated Bell Mobility, Rogers Communications Partnership (now Rogers Communications Canada Inc.) and TELUS to issue tariffs to introduce new domestic wholesale roaming services for purchase by non-national wireless service providers (NNWPs). The terms of our tariff were approved by the CRTC in Telecom Decision CRTC 2017-56 (Decision 2017-56). Approval for the rates that we have proposed remains pending. If the CRTC mandates rates that are materially different from the rates we have proposed, this could improve the business position of our competitors and have a negative impact on our wireless business.

On June 1, 2017, the Federal Cabinet issued an Order to the CRTC directing it to reconsider certain determinations made in Decision 2017-56. In Decision 2017-56, the CRTC determined that Bell Mobility, Rogers Communications Canada Inc. and TELUS were required to provide “incidental” access to their networks and not “permanent” access as part of the mandated roaming service. The CRTC also determined that the use of generally available public Wi-Fi does not form part of a NNWP’s home network for the purpose of establishing what constitutes incidental roaming access, since public Wi-Fi facilities represent infrastructure that is not necessarily owned, operated or controlled by a NNWP. As a result, NNWPs may not rely on the use of public Wi-Fi facilities to be eligible to purchase incidental roaming services. Among other things, the Federal Cabinet has asked the CRTC to consider whether allowing an end-user’s connectivity to public Wi-Fi to count as connectivity to a NNWP’s home network would make Canadian wireless services more affordable, and whether any affordability gains associated with such a changed rule would outweigh any disincentives for the national carriers to continue to invest in their networks. The Federal Cabinet’s Order requires the CRTC to report back to the Cabinet by March 31, 2018. It is unclear what, if any, new rules the CRTC may adopt in reconsidering Decision 2017-56. Moreover, it is unclear what, if any, impact such new rules may have on Bell’s wireless business.

MANDATED WHOLESALE ACCESS TO FTTP NETWORKS

On July 22, 2015, in Telecom Regulatory Policy CRTC 2015-326, the CRTC mandated the introduction of a new disaggregated wholesale high-speed access service, including over FTTP facilities, which had previously been exempt from mandated wholesale high-speed access. While this new service is mandated for all major incumbent telephone companies and cable carriers, the first stage of its implementation is to take place only in Ontario and Québec, our two largest markets. This adverse regulatory decision may impact the specific nature, magnitude, location and timing of our future FTTP investment decisions. In particular, the introduction by the CRTC of mandated wholesale services over FTTP will undermine the incentives for facilities-based digital infrastructure providers to invest in next-generation wireline networks, particularly in smaller communities and rural areas.

On September 20, 2016, the CRTC issued Telecom Decision CRTC 2016-379, in which it largely adopted our proposals concerning the technical design of our future disaggregated wholesale high-speed access service. On August 29, 2017, in Telecom Order CRTC 2017-312, the CRTC set interim rates for these services. The interim rates determined by the CRTC are essentially similar to those we proposed; however, the final rates remain to be determined. The mandating of final rates that are materially different from the rates we proposed could improve the business position of our competitors and further impact our investment strategy.

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PROPOSED EXPANSION OF AGGREGATED WHOLESALE ACCESS REGIME TO FTTP NETWORKS

On March 30, 2017, the Canadian Network Operators Consortium Inc. (CNOC) applied to the CRTC for an expansion of the aggregated wholesale high-speed access regime, which mandates aggregated access to FTTN facilities, to also include aggregated access to FTTP facilities. CNOC argued that aggregated access to FTTP facilities was necessary in order for competitors to offer high-speed services in areas where aggregated FTTN service is not available and only FTTP facilities are present to support the delivery of high-speed services. On February 2, 2018, the CRTC issued Telecom Decision CRTC 2018-44, in which it rejected CNOC’s application. The CRTC found that the exemption of FTTP facilities from aggregated access has limited impacts on competitors’ ability to compete in the retail market, and that the adoption of CNOC’s proposal would undermine the CRTC’s desired transition to a disaggregated access regime.

REVIEW OF WHOLESALE FTTN HIGH-SPEED ACCESS SERVICE RATES

As part of its ongoing review of wholesale Internet rates, on October 6, 2016 the CRTC significantly reduced, on an interim basis, some of the wholesale rates that Bell Canada and other major providers charge for access by ISPs to FTTN or cable networks, as applicable. Should such substantially lowered wholesale rates remain in place in the long-term and, in addition, should the interim rates be made retroactive, the business position of some of our competitors could improve, adversely affecting our financial performance, and our investment strategy could change, especially in relation to investment in next-generation wireline networks, particularly in smaller communities and rural areas.

CANADA’S 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 telecommunications companies can still be refused by the government under the Investment Canada Act. The absence of foreign ownership restrictions on such small or new entrant TCCs could result in more foreign companies entering the Canadian market, including by acquiring spectrum licences or Canadian TCCs.

8.3 Broadcasting Act

The Broadcasting Act outlines the broad objectives of Canada’s 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 programming or broadcasting distribution licence from the CRTC. The CRTC may exempt broadcasting undertakings from complying with certain licensing and regulatory requirements if it is satisfied that non-compliance will not materially affect the implementation of Canadian broadcasting policy. A corporation must also meet certain Canadian ownership and control requirements to obtain a broadcasting or broadcasting distribution licence, and corporations must have the CRTC’s approval before they can transfer effective control of a broadcasting licensee.

Our TV distribution operations and our 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 our competitive position or the cost of providing services.

THE TELEVISION SERVICE PROVIDER CODE

On January 7, 2016, the CRTC issued Broadcasting Regulatory Policy CRTC 2016-1, which established the Television Service Provider Code (the TV Code). The TV Code came into force on September 1, 2017 and requires all regulated television service providers, as well as exempt television service providers that are affiliated with a regulated service provider, to observe certain rules concerning their consumer agreements for television services. The TV Code does not apply to other exempt providers, such as OTT providers not affiliated with a regulated service provider.

The TV Code specifically imposes requirements relating to the clarity of offers, the content of contracts, trial periods for persons with disabilities, how consumers can change their programming options, and when services may be disconnected, among other things.

As part of Broadcasting Regulatory Policy CRTC 2016-1, the CRTC also expanded the mandate of the Commissioner for Complaints for Telecommunications Services, now the Commission for Complaints for Telecom-Television Services (CCTS), to include the administration of the TV Code and to enable the CCTS to accept consumer complaints about television services.

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CHANGES TO SIMULTANEOUS SUBSTITUTION

In Broadcasting Regulatory Policy CRTC 2015-25, the CRTC announced that it would eliminate simultaneous substitution for the Super Bowl starting in 2017. This decision was implemented in Broadcasting Order CRTC 2016-335 (the Order).

Bell Canada and Bell Media appealed the application of the Order to the Federal Court of Appeal, as did the NFL. Bell Canada and Bell Media argued that the CRTC does not have jurisdiction under the Broadcasting Act to ban simultaneous substitution for the Super Bowl and that doing so constitutes unauthorized retrospective regulation and interference with Bell Media’s vested economic rights. In a decision rendered on December 18, 2017, the Federal Court of Appeal denied the applications of Bell Media and Bell Canada, and that of the NFL, deferring to the CRTC’s discretion as to how competing broadcasting policy objectives should be balanced. On January 3, 2018, Bell Canada and Bell Media filed for leave to appeal the Federal Court of Appeal’s decision to the Supreme Court of Canada on an expedited basis. Bell Canada and Bell Media additionally sought a stay of the Order. On January 24, 2018, the Supreme Court of Canada denied the request for a stay of the Order, but agreed to hear our application for leave, and our appeal should leave be granted, on an expedited basis. We expect a decision on our leave application in the coming months.

On August 1, 2017, BCE filed an application with the CRTC requesting that it rescind the Order, arguing that there have been significant negative economic and cultural impacts resulting from the Order. The application is supported by the NFL along with national union Unifor, the Alliance of Canadian Cinema, Television and Radio Artists, the Association of Canadian Advertisers and the Canadian Media Directors’ Council.

The CRTC’s decision to eliminate simultaneous substitution for the Super Bowl has had an adverse impact on Bell Media’s conventional TV business and financial results, as a result of a reduction in viewership and advertising revenues. Such impacts will continue throughout the duration of our contract term with the NFL unless the CRTC’s Order is rescinded.

WHOLESALE CODE

In Broadcasting Regulatory Policy CRTC 2015-438, the CRTC announced it would implement a new Wholesale Code to govern the commercial arrangements between BDUs, programming services and digital media services, including imposing additional restrictions on the sale of TV channels at wholesale and the carriage of TV channels by BDUs. Bell Canada and Bell Media have appealed the decision to the Federal Court of Appeal, arguing that the CRTC’s implementation of the Wholesale Code conflicts with the Copyright Act and is outside the CRTC’s jurisdiction under the Broadcasting Act. The appeal was heard on November 14, 2017, and a decision is expected in 2018.

LICENCE RENEWALS

On May 15, 2017, the CRTC issued decisions in which it renewed the TV licences held by the large English-language and French-language ownership groups, including those owned by Bell Media. The CRTC’s decisions were generally positive for Bell Media as no adverse conditions of licence were imposed that could have negatively affected our business and financial performance.

In its renewals for the large English-language ownership groups (Broadcasting Decisions CRTC 2017-148 to 2017-151), the CRTC set symmetrical spending requirements across each licensing group for both Canadian programming (minimum 30% of revenues) and certain categories of programs of national interest (minimum 5% of revenues). Given that the new symmetrical requirements for spending on programs of national interest were lower than the pre-existing requirements for certain ownership groups (including Bell Media), several of the associations that represent creative groups are concerned about what they perceive will be a reduction in spending on this category of programming. Consequently, they filed petitions pursuant to section 28⁽¹⁾ of the Broadcasting Act, requesting that the Federal Cabinet set aside the decisions or refer them back to the CRTC for reconsideration.

In its renewals for the large French-language ownership groups (Broadcasting Decisions CRTC 2017-143 to 2017-147), the CRTC set minimum spending requirements for each group on a case-by-case basis, in accordance with recent historical levels. However, the Government of Québec and several of the associations that represent creative groups are concerned that the CRTC did not also set a specific minimum spending requirement relating to original French-language production. Consequently, they also filed petitions pursuant to section 28⁽¹⁾ of the Broadcasting Act, requesting that the Federal Cabinet refer the decisions back to the CRTC for reconsideration.

On August 14, 2017, the Federal Cabinet referred the English-language and French-language renewal decisions back to the CRTC for reconsideration to ensure that appropriate contributions are made to the creation and presentation of programs of national interest, original French-language programming and music programming, as well as short films and documentaries. The decisions remain in effect while the CRTC conducts its reconsideration process. Should the CRTC alter the current conditions of licence in an adverse manner, it could have a negative effect on Bell Media’s business and financial performance going forward.

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CRTC REPORT ON FUTURE PROGRAMMING DISTRIBUTION MODELS

On September 27, 2017, the Governor in Council, at the recommendation of the Minister of Canadian Heritage, issued a direction to the CRTC asking it to examine the distribution model or models of programming that are likely to exist in the future, how Canadians would access that programming, and the extent to which those models will ensure a vibrant domestic market that is capable of supporting the continued creation, production and distribution of Canadian programming, including original entertainment and information programming. The CRTC launched its public consultation on October 12, 2017, and is required to provide its report no later than June 1, 2018. The Minister of Canadian Heritage indicated that the CRTC’s report will be used to inform a future review of the Broadcasting Act and the Telecommunications Act. At this time, it is unclear how the CRTC’s report, or future legislative reviews, may impact our business.

8.4 Radiocommunication Act

ISED regulates the use of radio spectrum under the Radiocommunication Act to ensure that radiocommunication in Canada is developed and operated efficiently. All companies wishing to operate a wireless system in Canada must hold a spectrum licence to do so. 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.

600 MHZ SPECTRUM CONSULTATION

ISED is currently in the process of repurposing the 600 MHz band, which is currently being used primarily by over-the-air TV broadcasters for TV transmission, for mobile use. As part of the transition, TV broadcasters must be moved off the 600 MHz spectrum. In April 2017, ISED released its new digital television allotment plan, developed jointly with the U.S. regulatory authorities. The transition of broadcasters off 600 MHz spectrum will have an impact on Bell Media TV broadcasting stations; however, the extent of such impact is not yet known.

On August 4, 2017, ISED released a consultation paper seeking input regarding a technical, policy and licensing framework to govern the auction of spectrum licences in the 600 MHz band for mobile use. The consultation paper indicates that ISED is proposing to auction 70 MHz of spectrum (30 MHz of which would be set aside for set-aside-eligible entities) using an auction format similar to that used in the 700 MHz and 2500 MHz spectrum auctions. The set-aside spectrum can only be transferred to set-aside-eligible entities for the first five years. ISED proposes that the auctioned licences will have a 20-year term and be subject to certain deployment requirements requiring licensees to provide network coverage to a certain percentage of the population in each licence area at five, 10 and 20 years following licence issuance. ISED has not yet indicated when the auction will take place.

While the potential overall impact of the proposed auction framework is not known at the present time, the adoption of the set-aside provisions outlined in the consultation paper would limit the amount of spectrum that Bell Mobility can bid on. A decision on the consultation remains pending.

CONSULTATION ON RELEASING MILLIMETRE WAVE SPECTRUM TO SUPPORT 5G

On June 5, 2017, ISED launched a consultation entitled “Consultation on Releasing Millimetre Wave Spectrum to Support 5G”. The consultation addresses the use of three key frequency bands, namely 28 GHz, 37-40 GHz and 64-71 GHz for possible 5G deployment. ISED has sought comments on a number of key technical and licensing policy considerations for the use of the above noted spectrum. As 5G is expected to be the next major advancement in mobile telecommunications standards, access to the millimetre spectrum will be important in order to facilitate the development and adoption of 5G technology. A decision on the consultation remains pending.

RENEWAL OF AWS-1 AND PCS G BLOCK AND I BLOCK SPECTRUM LICENCES

On February 15, 2018, ISED released its spectrum licence renewal process for the AWS-1 and the personal communications services (PCS) G Block and I Block spectrum. These spectrum licences were auctioned in 2008 with a ten-year term and begin to expire in December 2018. In its decision, ISED indicated that, where all conditions of licence have been met, licensees will be eligible for new spectrum licences. Compliant AWS-1 and G Block licensees will be eligible for new licences with a 20-year term and compliant I Block licensees will be eligible for new licences with a 10-year term. As part of the renewal process, ISED set population coverage targets that apply within the first eight years of the new licence term and a second set of population coverage targets that apply by the end of the 20-year licence term. As indicated in the consultation, the population targets are based on smaller geographic licensing areas.

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AUCTION OF RESIDUAL SPECTRUM LICENCES

On December 19, 2017, ISED released a decision entitled “Licensing Framework for Residual Spectrum Licences in the 700 MHz, 2500 MHz, 2300 MHz and PCS G Bands”. For residual licences in the 700 MHz and 2500 Mhz bands, ISED will impose the same aggregation limits that were in place for the primary auctions of these bands in 2014 and 2015, respectively. The licensing framework has set a sealed-bid auction with bids due on May 15, 2018.

CONSULTATION ON THE SPECTRUM OUTLOOK 2018 TO 2022

On October 6, 2017, ISED initiated a consultation entitled “Consultation on the Spectrum Outlook 2018 to 2022”. The outcome of this consultation is intended to provide a roadmap for ISED to follow in making spectrum available over the next five years. As part of this consultation, ISED is seeking views on how it should change its licensing regime, how much spectrum will be required in the future, and how technology is evolving, among other things. It is unclear what, if any, impacts the results of this consultation could have on our business.

8.5 Bell Canada Act

Among other things, the Bell Canada Act limits how Bell Canada voting shares and Bell Canada facilities may be sold or transferred. Specifically, 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 Canada’s telecommunications activities must also receive CRTC approval.

8.6 Other key legislation

PERSONAL INFORMATION PROTECTION AND ELECTRONIC DOCUMENTS ACT

On June 18, 2015, the Personal Information Protection and Electronic Documents Act was amended to include mandatory notification requirements that must be followed in relation to the loss or unauthorized disclosure of personal information held by an organization resulting from a breach of the organization’s security safeguards. Failure to comply with these notification requirements, or to log security breaches, may result in a fine of up to $100,000 per occurrence. These provisions dealing with notification requirements will come into force when related regulations are brought into force.

On September 28, 2017, the Office of the Privacy Commissioner of Canada (OPC) issued its Notice of Consultation and Call for Comments on Draft Consent Guidance Documents. The specific guidance documents at issue in this consultation are entitled “Draft Guidelines: Obtaining Meaningful Online Consent” and “Draft Guidelines: Inappropriate Data Practices – Interpretation and Application of Subsection 5(3)”. The OPC is expected to issue final guidelines later this year. The OPC’s guidelines could have significant impacts concerning how personal information may be collected, used and disclosed for analytics and marketing purposes.

CANADA’S ANTI-SPAM LEGISLATION

Federal legislation referred to as Canada’s anti-spam legislation (CASL) came into force on July 1, 2014. Pursuant to CASL, commercial electronic messages can 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. As of January 15, 2015, CASL also requires that an organization have prior informed consent before downloading software to an end-user’s computer. Penalties for non-compliance include administrative monetary penalties of up to $10 million.

While CASL is also intended to provide individual Canadians with a private right of action to commence proceedings for statutory damages in relation to instances of non-compliance, these provisions were deferred indefinitely from coming into force by the Federal Cabinet on June 2, 2017.

COPYRIGHT ACT REVIEW

On December 13, 2017, the Federal Government passed a motion in Parliament to formally launch a review of the Copyright Act. This review is mandated by the Copyright Act itself, which requires that the legislation be examined every five years. The Standing Committee on Industry, Science and Technology, working in collaboration with the Standing Committee on Canadian Heritage, will lead the process, beginning in early 2018. At this time, the impact of any potential amendments on our business is unknown.

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9 Business risks

A risk is the possibility that an event might happen in the future that could have a negative effect on our financial position, financial performance, cash flows, 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 financial position, financial performance, cash flows, business or reputation.

This section describes the principal business risks that could have a material adverse effect on our financial position, financial performance, cash flows, 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 these 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
Security management	Section 3.3, Principal business risks
Risks specifically relating to our Bell Wireless, Bell Wireline and Bell Media segments	Section 5, Business segment analysis (Principal business risks section for each segment)

The other principal business risks that could also have a material adverse effect on our financial position, financial performance, cash flows, business or reputation are discussed below.

TECHNOLOGY/INFRASTRUCTURE TRANSFORMATION

The failure to optimize network and IT deployment and upgrade timelines, accurately assess the potential of new technologies, or invest and evolve in the appropriate direction could have an adverse impact on our business and financial results

Globalization, increased competition and ongoing technological advances are driving customer expectations of faster market responses, enhanced user experiences and cost-effective delivery. Meeting these expectations requires the deployment of new service and product technologies that are network-neutral and based on a more collaborative and integrated development environment. Change can be difficult and may present unforeseen obstacles that might impact successful execution, and this transition is made more challenging by the complexity of our multi-product environment, combined with the complexity of our network and IT structures. In addition, new technologies may quickly become obsolete or their launch may be delayed. The failure to optimize network and IT deployment and upgrade timelines, in light of customer demand and competitor activities, to accurately assess the potential of new technologies, or to invest and evolve in the appropriate direction in an environment of changing business models could have an adverse impact on our business and financial results.

In particular, our network and IT evolution activities seek to leverage new as well as evolving and developing technologies, including network functions virtualization, software-defined networks and cloud technologies, and to transform our network and systems to achieve our objectives of becoming more agile in our service delivery and operations as well as providing self-serve and instant-on capabilities for our customers, ensuring best quality and customer experience, and developing a new network infrastructure that enables a competitive cost structure and rapidly growing capacity. These evolution activities require an operational and cultural shift. Alignment across technology, product development and operations is increasingly critical to ensure appropriate trade-offs and optimization of capital allocation.

If this cannot be achieved in accordance with our deployment schedules while maintaining network availability and performance through the migration process, we may lose customers as a result of poor service performance, which could adversely affect our ability to achieve our operational and financial objectives. Failure to leverage IP across all facets of our network and product and service portfolio could inhibit a fully customer-centric approach, limiting or preventing comprehensive self-serve convenience, real-time provisioning, cost savings and flexibility in delivery and consumption, leading to negative business and financial outcomes.

Parallel to our focus on next-generation investment, adverse regulatory decisions may impact the specific nature, magnitude, location and timing of investment decisions. In particular, the introduction by the CRTC of mandated wholesale services over FTTP or wireless networks will undermine the incentives for facilities-based digital infrastructure providers to invest in next-generation wireline and wireless networks, particularly in smaller communities and rural areas. Failure to continue investment in next-generation capabilities in a disciplined and strategic manner, including real-time information-based customer service strategies, could limit our ability to compete effectively and achieve desired business and financial results.

Other examples of risks affecting achievement of our desired technology/ infrastructure transformation include:

• Network construction and deployment on municipal or private property requires the issuance of municipal or property owner consents, respectively, for the installation of network equipment, which could cause delays in FTTP rollout

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• The increasing dependence on apps for content delivery, sales, customer engagement and service experience drives the need for new and scarce capabilities (sourced internally or externally), which may not be available, as well as the need for associated operating processes integrated into ongoing operations
• New products, services or apps could reduce demand for our existing, more profitable service 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
• As consumption habits evolve and TV viewing alternatives expand, our ability to develop alternative delivery vehicles, which may require significant software development and network investment, in order to compete in new markets is essential to maintaining customer engagement and revenue streams
• We must be able to leverage new opportunities, such as those introduced by “big data”, which is subject to many challenges, including evolving customer perceptions as well as legal and regulatory developments in order to meet our business objectives. If we cannot build market-leading competencies in this field across sales, service and operational platforms that respect societal values and legal and regulatory requirements, we may miss important opportunities to grow our business through enhanced market intelligence and a more proactive customer service model.

CUSTOMER EXPERIENCE

Driving a positive customer experience in all aspects of our engagement with customers by embracing new approaches and challenging operational limitations is important to avoid adverse impacts on our business and financial performance

As the bar continues to be raised based on customers’ evolving expectations of service and value, failure to get ahead of such expectations and build a more robust service experience could hinder products and services differentiation and customer loyalty. With the proliferation of connectivity services, apps and devices, customers are accustomed to doing things when, how and where they want through websites, self-serve options, web chat, call centres, Facebook, Twitter and other social media forums. Failure to embrace these new media in a positive way, incorporate them into multiple elements of our service delivery and ensure that we understand their potential impact on customer perceptions could adversely affect our reputation and brand value. As the foundation of effective customer service stems from our ability to deliver simple solutions to customers in an expeditious manner, on mutually agreeable terms, complexity in our operations resulting from multiple technology platforms, billing systems, marketing databases and a myriad of rate plans, promotions and product offerings may limit our ability to respond quickly to market changes and reduce costs, and may lead to customer confusion or billing errors, which could adversely affect customer satisfaction, acquisition and retention. While speed of service evolution is critical to a competitive differentiation, it must not be achieved at the expense of the quality of our service offerings or of our brand.

OPERATIONAL PERFORMANCE

Our networks, IT systems and data centre assets are the foundation of high-quality consistent services which are critical to meeting service expectations

Our ability to provide consistent wireless, wireline, media broadcasting, satellite and data centre services to customers in a complex and constantly changing operating environment is crucial for sustained success. In particular, network capacity demands for TV and other bandwidth-intensive applications on our Internet and wireless networks have been growing at unprecedented rates. Unexpected capacity pressures on our networks may negatively affect our network performance and our ability to provide services. Issues relating to network availability, speed, consistency and traffic management on our more current as well as our aging networks could have an adverse impact on our business and financial performance.

In addition, we currently use a very large number of interconnected operational and business support systems including for provisioning, networking, distribution, broadcast management, billing and accounting, which may restrain our operational efficiency. If we fail to implement or maintain highly effective customer-facing IT systems supported by an effective governance and operating framework, this may lead to inconsistent performance and dissatisfied customers, which over time could result in higher churn.

Further examples of risks to operational performance that could impact our reputation, business operations and financial performance include the following:

• We may need to incur significant capital expenditures beyond those already anticipated by our capital intensity target in order to provide additional capacity and reduce network congestion on our wireline and wireless networks, and we may not be able to generate sufficient cash flows or raise the capital we need to fund such capital expenditures, which may result in service degradation
• Corporate restructurings, system replacements and upgrades, process redesigns and the integration of business acquisitions may not deliver the benefits contemplated and could adversely impact our ongoing operations
• If we fail to streamline our significant IT legacy system portfolio and proactively improve operating performance, this could adversely affect our business and financial outcomes
• There may be a lack of competent and cost-effective resources to perform the life-cycle management and upgrades necessary to maintain the operational status of legacy networks

Our operations and business continuity depend on how well we protect, test, maintain and replace our networks, IT systems, equipment and other facilities

Our operations depend on how well we and our contracted service providers protect our networks and IT systems, as well as other infrastructure and facilities, against damage from fire, natural disaster (including, without limitation, seismic and severe weather-related events such as ice, snow and wind storms, flooding, hurricanes, tornadoes and tsunamis), power loss, building cooling loss, unauthorized access or entry, cyber threats, disabling devices, acts of war or terrorism, sabotage, vandalism, actions of neighbours and other events. Establishing response strategies and business continuity protocols to maintain service consistency if any disruptive event materializes is critical to the achievement of effective customer service. Any of the above-mentioned events, as well as the failure to complete planned and sufficient testing,

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maintenance or replacement of our networks, equipment and other facilities, could disrupt our operations (including through disruptions such as network failures, billing errors or delays in customer service), require significant resources and result in significant remediation costs, which in turn could have an adverse effect on our business and financial performance, or impair our ability to keep existing subscribers or attract new ones.

Satellites used to provide our satellite TV services are subject to significant operational risks that could have an adverse effect on our business and financial performance

Pursuant to a set of commercial arrangements between Bell ExpressVu and Telesat Canada (Telesat), we currently have two satellites under contract with Telesat. Telesat operates or directs the operation of these satellites, which utilize highly complex technology and operate in the harsh environment of space and are therefore subject to significant operational risks while in orbit. These risks include in-orbit equipment failures, malfunctions and other problems, commonly referred to as anomalies, that could reduce the commercial usefulness of a satellite used to provide our satellite TV services. Acts of war or terrorism, magnetic, electrostatic or solar storms, and space debris or meteoroids could also damage such satellites. Any loss, failure, manufacturing defect, damage or destruction of these satellites, of our terrestrial broadcasting infrastructure or of Telesat’s tracking, telemetry and control facilities to operate the satellites could have an adverse effect on our business and financial performance and could result in customers terminating their subscriptions to our DTH satellite TV service.

PEOPLE

Our employees and contractors are key resources, and there is a broad and complex range of risks that must be managed effectively to drive a winning corporate culture and outstanding performance

Our business depends on the efforts, engagement and expertise of our management and non-management employees and contractors, who must be able to operate safely and securely based on the tasks they are completing and the environment in which they are functioning. If we fail to achieve this basic expectation, this could adversely affect our organizational culture, reputation and financial results as well as our ability to attract high-performing team members. Competition for highly skilled team members is intense, which makes the development of approaches to identify and secure high-performing candidates for a broad range of job functions, roles and responsibilities essential. Failure to appropriately train, motivate, remunerate or deploy employees on initiatives that further our strategic imperatives, or to efficiently replace retiring employees, could have an adverse impact on our ability to attract and retain talent and drive performance across the organization. The positive engagement of members of our team represented by unions is contingent on negotiating collective agreements that deliver competitive labour conditions and uninterrupted service, both of which are critical to achieving our business objectives. In addition, if the skill sets, diversity and size of the workforce do not match the operational requirements of the business and foster a winning culture, we will likely not be able to sustain our performance.

Other examples of people-related risks include the following:

• The increasing technical and operational complexity of our businesses and the high demand in the market for skilled technical resources create a challenging environment for hiring, retaining and developing such skilled technical resources
• Failure to establish a complete and effective succession plan, including preparation of internal talent and identification of potential external candidates where relevant for key roles, could impair our business until qualified replacements are found
• Approximately 45% 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, which could adversely affect service to our customers and, in turn, our customer relationships and financial performance.
• Ensuring the safety and security of our workforce operating in different environments, including manholes, telephone poles, cell towers, vehicles, foreign news bureaus and war zones, requires focus, effective processes and flexibility to avoid injury, service interruption, fines and reputational impact
• Deterioration in employee morale and engagement resulting from staff reductions, ongoing cost reductions or reorganizations could adversely affect our business and financial results

FINANCIAL MANAGEMENT

If we are unable to raise the capital we need or generate sufficient cash flows 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, fund capital expenditures and provide for planned growth depends on having access to adequate sources of capital and on our ability to generate cash flows from operations, which is subject to various risks, including those described in this MD&A.

Our ability to raise financing depends on our ability to access the public equity, debt capital and money 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, political, economic and financial market instability in Canada or abroad, government policies, central bank monetary policies, changes to bank capitalization or other 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, 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 a particular industry.

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Our bank credit facilities, including credit facilities supporting our commercial paper program, are provided by various financial institutions. While it is our intention to renew certain of such credit facilities from time to time, there are no assurances that these facilities will be renewed on favourable terms or in similar amounts.

Differences between BCE’s actual or anticipated financial results and the published expectations of financial analysts, as well as events affecting our business or operating environment, may contribute to volatility in BCE’s securities. A major decline in the capital markets in general, or an adjustment in the market price or trading volumes of BCE’s securities, may negatively affect our ability to raise debt or equity capital, retain senior executives and other key employees, make strategic acquisitions or enter into joint arrangements.

If we cannot access the capital we need or generate cash flows to implement our business plan or meet our financial obligations on acceptable terms, we may have to limit our ongoing capital expenditures and 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 flows from operations and on our growth prospects.

We cannot guarantee that BCE’s dividend policy will be maintained or that dividends will be declared

From time to time, the BCE Board reviews the adequacy of BCE’s dividend policy with the objective of allowing sufficient financial flexibility 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 BCE’s free cash flow. BCE’s 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 BCE’s dividend policy will be maintained or that dividends will be declared. The declaration of dividends by the BCE Board is ultimately dependent on BCE’s operations and financial results which are, in turn, subject to various assumptions and risks, including those set out in this MD&A.

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 fluctuations, is discussed in section 6.5, Financial risk management of this MD&A and in Note 24 of BCE’s 2017 consolidated financial statements.

Our failure to identify and manage our exposure to changes in interest rates, foreign exchange rates (especially the weakening of the Canadian dollar), BCE’s share price and other market conditions could lead to missed opportunities, reduced profit margins, cash flow shortages, inability to complete planned capital expenditures, reputational damage, equity and debt securities devaluations and challenges in raising capital on market-competitive terms.

The economic environment, pension rules or ineffective governance could have an adverse effect on our pension obligations, liquidity and financial performance, and we may be required to increase contributions to our post-employment benefit plans in the future

With a large pension plan membership and DB pension plans that are subject to the pressures of the global economic environment and changing regulatory and reporting requirements, our pension obligations are exposed to potential volatility. Failure to recognize and manage economic exposure and pension rule changes or to ensure that effective governance is in place for management and funding of pension plan assets and obligations could have an adverse impact on our liquidity and financial performance.

The funding requirements of our post-employment benefit plans, based on valuations of plan assets and obligations, depend on a number of factors, including actual returns on post-employment benefit plan assets, long-term interest rates, plan demographics, and applicable regulations and actuarial standards. Changes in these factors could cause future contributions to significantly differ from our current estimates and could require us to increase contributions to our post-employment benefit plans in the future and, therefore, could have a negative effect on our liquidity and financial performance.

There is no assurance that the assets of our post-employment benefit plans will earn their assumed rate of return. A substantial portion of our post-employment benefit plans’ assets is invested in public equity and debt securities. As a result, the ability of our post-employment benefit plans’ assets to earn the rate of return that we have assumed depends significantly on the performance of capital markets. Market conditions also impact the discount rate used to calculate our solvency obligations and could therefore also significantly affect our cash funding requirements.

Our expected funding for 2018 is in accordance with the latest post-employment benefit plan valuations as of December 31, 2016, filed in June 2017, and takes into account voluntary contributions of $100 million in 2017.

Income and commodity tax amounts may materially differ from the expected amounts

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 significant judgment in interpreting tax rules and regulations. Our tax filings 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.

The failure to reduce costs as well as unexpected increases in costs could adversely affect our ability to achieve our strategic imperatives and our financial results

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 difficult to achieve on an ongoing basis. Our cost reduction objectives require aggressive negotiations with our 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.

Examples of risks to our ability to reduce costs or of potential cost increases include:

• Achieving timely cost reductions while moving to an IP-based network is dependent on disciplined network decommissioning, which can be delayed by customer contractual commitments, regulatory considerations and other unforeseen obstacles
• Fluctuations in energy prices are partly influenced by government policies to address climate change which, combined with growing data demand that increases our energy requirements, could increase our energy costs beyond our current expectations
• Failure to successfully deliver on our contractual commitments, whether due to security events, operational challenges or other reasons, may result in financial penalties and loss of revenues

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The failure to evolve practices to effectively monitor and control fraudulent activities could result in financial loss and brand degradation

As a public company with a range of desirable and valuable products and services and 51,679 employees at the end of 2017, fraud requires a disciplined program covering governance, exposure identification and assessment, prevention, detection and reporting that considers corruption, misappropriation of assets and intentional manipulation of financial statements by employees and/or external parties. Fraud events can result in financial loss and brand degradation.

Specific examples relevant to us include:

• Subscription fraud on accounts established with a false identity or paid with a stolen credit card
• Network usage fraud such as call/sell operations using our wireline or wireless networks
• Copyright theft and other forms of unauthorized use that undermine the exclusivity of Bell Media’s content offerings, which could potentially divert users to unlicensed or otherwise illegitimate platforms, thus impacting our ability to derive distribution and advertising revenues
• TV distributors including Bell Canada and Bell ExpressVu are subject to ongoing efforts to steal their services through compromise or circumvention of signal security systems, causing revenue loss

DEPENDENCE ON THIRD-PARTY SUPPLIERS

We depend on third-party suppliers, outsourcers and consultants, some of which are critical, to provide an uninterrupted supply of the products and services we need to operate our business and to comply with various obligations

We depend on key third-party suppliers and outsourcers, over which we have no operational or financial control, for products and services, some of which are critical to our operations. If there are gaps in our supplier governance and oversight models established to ensure full risk transparency at point of purchase and throughout the relationship, including any contract renegotiations, there is the potential for a breakdown in supply, which could impact our ability to make sales, service customers and achieve our business and financial objectives. Some of our third-party suppliers and outsourcers are located in foreign countries, which increases the potential for a breakdown in supply due to the risks of operating in foreign jurisdictions with different laws, geo-political environments, cultures and the potential for localized natural disasters. The outsourcing of services generally involves transfer of risk, and we must take appropriate steps to ensure that the outsourcers’ approach to risk management is aligned with our own standards in order to maintain continuity of supply and brand strength. Further, as cloud-based supplier models continue to evolve, our procurement and vendor management practices must also continue to evolve to fully address associated risk exposures.

In addition, certain company initiatives rely heavily upon professional consulting services provided by third parties, and a failure of such third parties may not be reasonably evident until their work is delivered or delayed. Depending on the size, complexity and level of third-party dependence, remedial strategies may be difficult to implement in respect of any professional consulting services provided by third-parties that are not performed in a proper or timely fashion. Any such difficulty when implementing remedial strategies could result in an adverse effect on our ability to comply with various obligations, including applicable legal and accounting requirements.

Other examples of risks associated with our dependence on third-party suppliers include the following:

• Demand for products and services available from only a limited number of suppliers, some of which dominate their global market, may lead to decreased availability, increased costs or delays in the delivery of such products and services, since suppliers may choose to favour global competitors that are larger than we are and, accordingly, purchase a larger volume of products and services. In addition, production issues affecting any such suppliers, or other suppliers, could result in decreased quantities, or a total lack, of supply of products or services.

Any of these events could adversely impact our ability to meet customer commitments and demand.

• Cloud-based solutions may increase the risk of security and data leakage exposure if security control protocols affecting our suppliers are bypassed
• Failure to maintain strong discipline around vendor administration (especially around initial account setup) may mask potential financial or operational risks and complicate future problem resolutions
• If products and services important to our operations have manufacturing defects or do not comply with applicable government regulations and standards (including product safety practices), our ability to sell products and provide services on a timely basis may be negatively impacted. We work with our suppliers to identify serious product defects (including safety incidents) and develop appropriate remedial strategies. Remedial strategies may include a recall of products. To the extent that a supplier does not actively participate in, and/or bear primary financial responsibility for, a recall of its products, our ability to perform such recall programs at a reasonable cost and/ or in a timely fashion may be negatively impacted. Any of the events referred to above could have an adverse effect on our operations and financial results.
• Products, services, software and other elements of our business supplied to us or used in our business operations may contain security issues including, but not limited to, latent security issues that would not be apparent upon an inspection. When any such security issue is discovered, we seek to identify and develop remedial strategies both internally and with our suppliers. Should we or a supplier fail to correct a security issue in a timely fashion, there could be an adverse effect on our business and financial performance.
• Temporary or permanent operational failures or service interruptions of the networks of other telecommunications carriers and suppliers on which we rely to deliver services could adversely affect our ability to provide services using such carriers’ and suppliers’ networks and could, consequently, have an adverse effect on our business and financial performance
• BCE depends on call centre and technical support services provided by a number of external suppliers and outsourcers, some of which are located in foreign countries. These vendors have access to customer and internal BCE information necessary for the support services that they provide. Information access and service delivery issues that are not managed appropriately may have an adverse impact on our reputation, the quality and speed of services provided to customers, and our ability to address technical issues.

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LITIGATION AND LEGAL OBLIGATIONS

Legal proceedings, changes in applicable laws and the failure to proactively address our legal and regulatory obligations could have an adverse effect on our business and financial performance

We become involved in various claims and legal proceedings as part of our business. Plaintiffs are able to launch and obtain certification of class actions on behalf of a large group of people with increasing ease, and securities laws facilitate the introduction of class action lawsuits by secondary market investors against public companies for alleged misrepresentations in public disclosure documents and oral statements. Changes in laws or regulations, or in how they are interpreted, and the adoption of new laws or regulations, as well as pending or future litigation, including an increase in certified class actions which, by their nature, could result in sizeable damage awards and costs relating to litigation, could have an adverse effect on our business and financial performance.

Examples of legal and regulatory obligations that we must comply with include those resulting from:

• As discussed in more detail in section 8, Regulatory environment, decisions, policies and other initiatives of the CRTC, ISED, the Competition Bureau and other governmental agencies, as well as laws of a regulatory nature
• Consumer protection and privacy legislation
• Tax legislation
• Corporate and securities legislation
• IFRS requirements
• Environmental protection and health and safety laws
• Payment card industry standards for protection against customer credit card infractions

The failure to comply with any of the above or other legal or regulatory obligations could expose us to litigation, including pursuant to class actions, and significant fines and penalties, as well as result in reputational harm.

For a description of the principal legal proceedings involving us, please see the section entitled Legal proceedings contained in the BCE 2017 AIF.

HEALTH AND ENVIRONMENTAL CONCERNS

Health concerns about radiofrequency emissions from wireless communication devices, as well as epidemics and other health risks, could have an adverse effect on our business

Many studies have been performed or are ongoing to assess whether wireless phones, networks and towers pose a potential health risk. While some studies suggest links to certain conditions, others conclude there is no established causation between mobile phone usage and adverse health effects. In 2011, the International Agency for Research on Cancer (IARC) of the World Health Organization classified radiofrequency electromagnetic fields from wireless phones as possibly carcinogenic to humans, but also indicated that chance, bias or confounding could not be ruled out with reasonable confidence. The IARC also called for additional research into long-term heavy use of mobile phones.

ISED is responsible for approving radiofrequency equipment and performing compliance assessments and has chosen Health Canada’s Safety Code 6, which sets the limits for safe exposure to radiofrequency emissions at home or at work, as its exposure standard. This code also outlines safety requirements for the installation and operation of devices that emit radiofrequency fields such as mobile phones, Wi-Fi technologies and base station antennas. ISED has made compliance to Safety Code 6 mandatory for all proponents and operators of radio installations.

Our business is heavily dependent on radiofrequency technologies, which could present significant challenges to our business and financial performance, such as the following:

• We face current and potential lawsuits relating to alleged adverse health effects on customers, as well as to our marketing and disclosure practices in connection therewith, and the likely outcome of such lawsuits is unpredictable and may change over time
• Changes in scientific evidence and/or public perceptions could lead to additional government regulations and costs for retrofitting infrastructure and handsets to achieve compliance
• Public concerns could result in a slower deployment of, or in our inability to deploy, infrastructure necessary to maintain and/or expand our wireless network as required by market evolution

In addition, epidemics, pandemics and other health risks could occur, which could adversely affect our ability to maintain operational networks and provide services to our customers. Any of these events could have an adverse effect on our business and financial performance.

Climate change and other environmental concerns could have an adverse effect on our business

Global climate change could exacerbate certain of the threats facing our business, including the frequency and severity of weather-related events referred to in Operational performance – Our operations and business continuity depend on how well we protect, test, maintain and replace our networks, IT systems, equipment and other facilities in this section 9. Several areas of our operations further raise environmental considerations such as fuel storage, greenhouse gas emissions, disposal of hazardous residual materials, and recovery and recycling of end-of-life electronic products we sell or lease. Failure to recognize and adequately respond to changing governmental and public expectations on environmental matters could result in fines, missed opportunities, additional regulatory scrutiny or harm our brand and reputation.

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	10	MD&A	Financial measures, accounting policies and controls

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 financial statements and notes. It also describes key changes in accounting standards and our accounting policies, and how they affect our financial statements.

We have prepared our consolidated financial statements using IFRS. Other significant accounting policies, not involving the same level of measurement uncertainty as those discussed in this section, are nevertheless important to an understanding of our financial statements. See Note 2, Significant accounting policies, in BCE’s 2017 consolidated financial statements for more information about the accounting principles we used to prepare our consolidated financial statements.

CRITICAL ACCOUNTING ESTIMATES AND KEY JUDGMENTS

When preparing financial statements, management makes estimates and judgments 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 judgments are subject to measurement uncertainty and actual results could differ.

We consider the estimates and judgments described in this section to be an important part of understanding our financial statements because they require management to make assumptions about matters that were highly uncertain at the time the estimates and judgments were made, and changes to these estimates and judgments could have a material impact on our financial statements and our segments.

Our senior management has reviewed the development and selection of the critical accounting estimates and judgments 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 significant estimates and judgments 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 finite-life intangible assets on an annual basis and adjust depreciation or amortization on a prospective basis, if needed.

Property, plant and equipment represent a significant 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 finite-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.

CHANGE IN ACCOUNTING ESTIMATE

In 2017 and 2016, as part of our ongoing annual review of property, plant and equipment and finite-life intangible assets, and to better reflect their useful lives, we increased the estimate of useful lives of certain assets. The changes have been applied prospectively effective January 1, 2017 and January 1, 2016, and did not have a significant impact on our financial statements.

POST-EMPLOYMENT BENEFIT PLANS

The amounts reported in the financial statements relating to DB pension plans and OPEBs are determined using actuarial calculations that are based on several assumptions.

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 actuarial valuation uses management’s 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 benefit obligations and future net post-employment benefit plans cost.

We account for differences between actual and expected results in benefit obligations and plan performance in OCI, which are then recognized immediately in the deficit.

The most significant assumptions used to calculate the net post-employment benefit plans cost are the discount rate and life expectancy.

A discount rate is used to determine the present value of the future cash flows that we expect will be needed to settle post-employment benefit obligations.

The discount rate is based on the yield on long-term, high-quality corporate fixed income investments, with maturities matching the estimated cash flows of the post-employment benefit plans. Life expectancy is based on publicly available Canadian mortality tables and is adjusted for the company’s specific experience.

A lower discount rate and a higher life expectancy result in a higher net post-employment benefit obligation and a higher current service cost.

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SENSITIVITY ANALYSIS

The following table shows a sensitivity analysis of key assumptions used to measure the net post-employment benefit obligations and the net post-employment benefit plans cost for our DB pension plans and OPEB plans.

	IMPACT ON NET POST-EMPLOYMENT BENEFIT PLANS COST FOR 2017 – INCREASE (DECREASE)						IMPACT ON POST-EMPLOYMENT BENEFIT OBLIGATIONS AT DECEMBER 31, 2017 – INCREASE (DECREASE)
	CHANGE IN ASSUMPTION		INCREASE IN ASSUMPTION		DECREASE IN ASSUMPTION		INCREASE IN ASSUMPTION		DECREASE IN ASSUMPTION
Discount rate	0.5	%	(70	)	62		(1,636	)	1,746
Life expectancy at age 65	1 year		33		(31	)	834		(808	)

IMPAIRMENT OF NON-FINANCIAL ASSETS

Goodwill and indefinite-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 finite-life intangible assets are tested for impairment if events or changes in circumstances, assessed at each reporting period, 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 identifiable cash inflows.

Impairment losses are recognized and measured as the excess of the carrying value of the assets over their recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs of disposal 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 asset’s 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 flows or other valuation methods to test for impairment. These estimates include the assumed growth rates for future cash flows, the number of years used in the cash flow model, and the discount rate. When impairment charges occur they are recorded in Other (expense) income.

In 2017, we recorded impairment charges of $82 million, of which $70 million was allocated to indefinite-life intangible assets, and $12 million to finite-life intangible assets. The impairment charges relate to our music TV channels and two small market radio station CGUs within our Bell Media segment. These impairments were the result of revenue and profitability declines from lower audience levels. The charges were determined by comparing the carrying value of the CGUs to their fair value less costs of disposal. We estimated the fair value of the CGUs using both discounted cash flows and market-based valuation models, which include five-year cash flow projections derived from business plans reviewed by senior management for the period of January 1, 2018 to December 31, 2022, using a discount rate of 8.5% and a perpetuity growth rate of nil, as well as market multiple data from public companies and market transactions. The carrying value of these CGUs was $67 million at December 31, 2017.

GOODWILL IMPAIRMENT TESTING

We perform an annual test for goodwill impairment in the fourth quarter for each of our 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 identifiable group of assets that generates cash inflows that are independent of the cash inflows from other assets or groups of assets.

We identify any potential impairment by comparing the carrying value of a CGU or group 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 of disposal and its value in use. Both fair value less costs of disposal and value in use are based on estimates of discounted future cash flows or other valuation methods. Cash flows 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 identifiable 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 recognized in Other (expense) income in the income statements for any excess of the carrying value of goodwill over its recoverable amount. For purposes of impairment testing of goodwill, BCE’s CGUs or groups of CGUs correspond to our reporting segments as disclosed in Note 4, Segmented information, in BCE’s 2017 consolidated financial statements.

Any significant 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 reasonably quantify the changes in our overall financial 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 believe that any reasonable possible change in the key assumptions on which the estimate of recoverable amounts of the Bell Wireless or Bell Wireline groups of CGUs is based would not cause their carrying amounts to exceed their recoverable amounts.

For the Bell Media group of CGUs, a decrease of (0.3%) in the perpetuity growth rate or an increase of 0.2% in the discount rate, would have resulted in its recoverable amount being equal to its carrying value.

There were no goodwill impairment charges in 2016 or 2017.

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 and liabilities are estimated with consideration given to the timing, sources and amounts of future taxable income.

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FAIR VALUE OF FINANCIAL INSTRUMENTS

Certain financial instruments, such as investments in equity securities, derivative financial instruments and certain elements of borrowings, are carried in the statements of financial position at fair value, with changes in fair value reflected 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 flows and earnings multiples.

CONTINGENCIES

In the ordinary course of business, we become involved in various claims and legal proceedings seeking monetary damages and other relief. Pending claims and legal proceedings 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.

If the final resolution of a legal or regulatory matter results in a judgment against us or requires us to pay a large settlement, it could have a material adverse effect on our consolidated financial statements in the period in which the judgment or settlement occurs.

ONEROUS CONTRACTS

A provision for onerous contracts is recognized when the unavoidable costs of meeting our obligations under a contract exceed the expected benefits to be received under the 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.

JUDGMENTS

POST-EMPLOYMENT BENEFIT PLANS

The determination of the discount rate used to value our post-employment benefit obligations requires judgment. The rate is set by reference to market yields of high-quality corporate fixed income investments at the beginning of each fiscal year. Significant judgment is required when setting the criteria for fixed income investments to be included in the population from which the yield curve is derived. The most significant criteria considered for the selection of investments include the size of the issue and credit quality, along with the identification of outliers, which are excluded.

INCOME TAXES

The calculation of income taxes requires judgment in interpreting tax rules and regulations. There are transactions and calculations for which the ultimate tax determination is uncertain. Our tax filings are also subject to audits, the outcome of which could change the amount of current and deferred tax assets and liabilities. Management believes that it has sufficient amounts accrued for outstanding tax matters based on information that currently is available.

Management judgment is used to determine the amounts of deferred tax assets and liabilities and future tax liabilities to be recognized. In particular, judgment 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 judgment to establish the separately identifiable components and the allocation of the total price between those components.

CGUs

The determination of CGUs or groups of CGUs for the purpose of impairment testing requires judgment.

CONTINGENCIES

We accrue a potential loss if we believe a loss is probable and an outflow of resources is likely 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 payment as a result of a judgment or 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 claims and legal proceedings and whether an outflow of resources is likely requires judgment.

ADOPTION OF AMENDED ACCOUNTING STANDARDS

As required, effective January 1, 2017, we adopted the following amended accounting standard.

STANDARD	DESCRIPTION	IMPACT
Amendments to IAS 7 –Statement of Cash Flows	Requires enhanced disclosures about changes in liabilities arising from financing activities, including changes from financing cash flows, changes arising from obtaining or losing control of subsidiaries or other businesses, the effect of changes in foreign exchange rates and changes in fair values.	The required enhanced disclosures have been provided in Note 27, Additional cash flow information.

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FUTURE CHANGES TO ACCOUNTING STANDARDS

The following new or amended standards and interpretation issued by the IASB have an effective date after December 31, 2017 and have not yet been adopted by BCE.

STANDARD	DESCRIPTION	IMPACT	EFFECTIVE DATE
IFRS 15 – Revenue from Contracts with Customers	Establishes principles to record revenues from contracts for the sale of goods or services, unless the contracts are in the scope of IAS 17 – Leases or other IFRSs. Under IFRS 15, revenue is recognized at an amount that reflects the expected consideration receivable in exchange for transferring goods or services to a customer, applying the following five steps: 1. Identify the contract with a customer 2. Identify the performance obligations in the contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations in the contract 5. Recognize revenue when (or as) the entity satisfies a performance obligation The new standard also provides guidance relating to principal versus agent relationships, licences of intellectual property, contract costs and the measurement and recognition of gains and losses on the sale of certain non-financial assets such as property and equipment. Additional disclosures will also be required under the new standard.	IFRS 15 will principally affect the timing of revenue recognition and how we classify revenues between product and service in our Bell Wireless segment. IFRS 15 will also affect how we account for costs to obtain a contract. Under multiple-element arrangements, revenue allocated to a satisfied performance obligation will no longer be limited to the amount that is not contingent upon the satisfaction of additional performance obligations. Although the total revenue recognized during the term of a contract will be largely unaffected, revenue recognition may be accelerated and reflected ahead of the associated cash inflows. This will result in the recognition of a contract asset on the balance sheet, corresponding to the amount of revenue recognized and not yet billed to a customer. The contract asset will be realized over the term of the customer contract. As revenues allocated to a satisfied performance obligation are no longer limited to the non-contingent amount, a greater proportion of the total revenue recognized during the term of certain customer contracts will be attributed to a delivered product, resulting in a corresponding decrease in service revenue. Sales commissions and any other incremental costs of obtaining a contract with a customer will be recognized on the balance sheet and amortized on a systematic basis that is consistent with the period and pattern of transfer to the customer of the related products or services, except as noted below. Under IFRS 15, certain practical expedients are permitted both on transition and on an ongoing basis. On transition, completed contracts that begin and end within the same annual reporting period and those completed before January 1, 2017 are not restated. Similarly, contracts modified prior to January 1, 2017 are not restated. When our right to consideration from a customer corresponds directly with the value to the customer of the products and services transferred to date, we will recognize revenue in the amount to which we have a right to invoice. Costs of obtaining a contract that would be amortized within one year or less will be immediately expensed. We continue to make progress towards adoption of IFRS 15 according to our detailed implementation plan. Changes and enhancements to our existing IT systems, business processes, and systems of internal control are being completed. A dedicated project team that leverages key resources throughout the company is in place to effect the necessary changes. While our testing and data validation process is ongoing, we expect that the impact of the new standard will be most pronounced in our Bell Wireless segment. Although total revenue recognized over the term of a customer contract is not expected to change significantly, our preliminary estimate of the impact of adopting IFRS 15 is a decrease in 2017 service revenues within the range of $1.2 billion to $1.4 billion, with a corresponding increase in product revenue. Total operating revenues less operating costs in 2017 is estimated to increase by approximately $0.1 billion. Total assets on our January 1, 2017 statement of financial position will increase as we record contract assets and costs to obtain a contract. We currently estimate the value of the gross contract assets to be in the range of $1.1 billion to $1.3 billion and an increase in costs to obtain a contract of approximately $0.3 billion to $0.4 billion, both of which would be recognized through an adjustment to opening retained earnings. Total liabilities will increase mainly to reflect a resulting $0.4 billion deferred tax liability, also recognized through an adjustment to opening retained earnings. We do not expect that IFRS 15 will impact our cash flows from operating activities.	Annual periods beginning on or after January 1, 2018, using a full retrospective approach for all periods presented in the period of adoption.

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STANDARD	DESCRIPTION	IMPACT	EFFECTIVE DATE
Amendments to IFRS 2 –Share-based Payment	Clarifies the classification and measurement of cash-settled share-based payment transactions that include a performance condition, share-based payment transactions with a net settlement feature for withholding tax obligations, and modifications of a share-based payment transaction from cash-settled to equity-settled.	The amendments to IFRS 2 will not have a significant impact on our financial statements.	Annual periods beginning on or after January 1, 2018.
IFRS 9 – Financial Instruments	Sets out the requirements for recognizing and measuring financial assets, financial liabilities and some contracts to buy and sell non-financial items. IFRS 9 replaces IAS 39 – Financial Instruments: Recognition and Measurement. The new standard establishes a single classification and measurement approach for financial assets that reflects the business model in which they are managed and their cash flow characteristics. It also provides guidance on an entity’s own credit risk relating to financial liabilities and modifies the hedge accounting model to better link the economics of risk management with its accounting treatment. Additional disclosures will also be required under the new standard.	The amendments to IFRS 9 will not have a significant impact on our financial statements.	Annual periods beginning on or after January 1, 2018.
IFRS 16 – Leases	Eliminates the distinction between operating and finance leases for lessees, requiring instead that leases be capitalized by recognizing the present value of the lease payments and showing them either as lease assets (right-of-use assets) or together with property, plant and equipment. If lease payments are made over time, an entity recognizes a financial liability representing its obligation to make future lease payments. A depreciation charge for the lease asset is recorded within operating costs and an interest expense on the lease liability is recorded within finance costs. IFRS 16 does not require a lessee to recognize assets and liabilities for short-term leases and leases of low-value assets, nor does it substantially change lease accounting for lessors.	We continue to make progress towards adoption of IFRS 16 according to our detailed implementation plan. Changes and enhancements to our existing IT systems, business processes and systems of internal control are being designed and tested. It is not yet possible to make a reliable estimate of the impact of the new standard on our financial statements.	Annual periods beginning on or after January 1, 2019, using either a full retrospective approach for all periods presented in the period of adoption or a modified retrospective approach.
International Financial Reporting Interpretations Committee (IFRIC) 23 –Uncertainty over Income Tax Treatments	IFRIC 23 clarifies the application of recognition and measurement requirements in IAS 12 – Income Taxes when there is uncertainty over income tax treatments. It specifically addresses whether an entity considers uncertain tax treatments separately or as a group, the assumptions an entity makes about the examination of tax treatments by taxation authorities, how an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates and how an entity considers changes in facts and circumstances.	We are currently evaluating the impact of IFRIC 23 on our financial statements.	Annual periods beginning on or after January 1, 2019, using either a full retrospective or a modified retrospective approach.

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10.2 Non-GAAP financial measures and key performance indicators (KPIs)

This section describes the non-GAAP financial measures and KPIs we use in this MD&A to explain our financial results. It also provides reconciliations of the non-GAAP financial measures to the most comparable IFRS financial measures.

In Q1 2017, we updated our definition of adjusted net earnings and adjusted EPS to also exclude impairment charges as they may affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. There was no impact to previously reported results as a result of this change.

ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN

The terms adjusted EBITDA and adjusted EBITDA margin do not have any standardized meaning under IFRS. Therefore, they are unlikely to be comparable to similar measures presented by other issuers.

We define adjusted EBITDA as operating revenues less operating costs, as shown in BCE’s consolidated income statements. Adjusted EBITDA for BCE’s segments is the same as segment profit as reported in Note 4, Segmented information, in BCE’s 2017 consolidated financial statements. We define adjusted EBITDA margin as adjusted EBITDA divided by operating revenues.

We use adjusted EBITDA and adjusted EBITDA margin to evaluate the performance of our businesses as they reflect their ongoing profitability. We believe that certain investors and analysts use adjusted EBITDA to measure a company’s ability to service debt and to meet other payment obligations or as a common measurement to value companies in the telecommunications industry. We believe that certain investors and analysts also use adjusted EBITDA and adjusted EBITDA margin to evaluate the performance of our businesses. Adjusted EBITDA is also one component in the determination of short-term incentive compensation for all management employees.

Adjusted EBITDA and adjusted EBITDA margin have no directly comparable IFRS financial measure. Alternatively, the following table provides a reconciliation of net earnings to adjusted EBITDA.

	2017		2016
Net earnings	2,970		3,087
Severance, acquisition and other costs	190		135
Depreciation	3,037		2,877
Amortization	813		631
Finance costs
Interest expense	955		888
Interest on post-employment benefit obligations	72		81
Other expense (income)	102		(21	)
Income taxes	1,039		1,110
Adjusted EBITDA	9,178		8,788
BCE operating revenues	22,719		21,719
Adjusted EBITDA margin	40.4	%	40.5	%

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.

We define adjusted net earnings as net earnings attributable to common shareholders before severance, acquisition and other costs, net losses (gains) on investments, impairment charges and early debt redemption costs. We define 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 other ones, to assess the performance of our businesses without the effects of severance, acquisition and other costs, net losses (gains) on investments, impairment charges and early debt redemption costs, net of tax and non-controlling interest (NCI). We exclude these items because they affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. Excluding these items does not imply they are non-recurring.

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The most comparable IFRS financial 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 on a consolidated basis and per BCE common share (adjusted EPS), respectively.

	2017		2016
	TOTAL	PER SHARE	TOTAL	PER SHARE
Net earnings attributable to common shareholders	2,786	3.12	2,894	3.33
Severance, acquisition and other costs	143	0.16	104	0.12
Net losses on investments	29	0.03	3	–
Early debt redemption costs	15	0.02	8	0.01
Impairment charges	60	0.06	–	–
Adjusted net earnings	3,033	3.39	3,009	3.46

FREE CASH FLOW AND DIVIDEND PAYOUT RATIO

The terms free cash flow and dividend payout ratio do not have any standardized meaning under IFRS. Therefore, they are unlikely to be comparable to similar measures presented by other issuers.

We define free cash flow as cash flows from operating activities, excluding acquisition and other costs paid (which include significant litigation costs) and voluntary pension funding, less capital expenditures, preferred share dividends and dividends paid by subsidiaries to NCI. We exclude acquisition and other costs paid and voluntary pension funding because they affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. Excluding these items does not imply they are non-recurring.

We consider free cash flow to be an important indicator of the financial strength and performance of our businesses because it shows how much cash is available to pay dividends, repay debt and reinvest in our company. We believe that certain investors and analysts use free cash flow to value a business and its underlying assets and to evaluate the financial strength and performance of our businesses. The most comparable IFRS financial measure is cash flows from operating activities.

We define dividend payout ratio as dividends paid on common shares divided by free cash flow. We consider dividend payout ratio to be an important indicator of the financial strength and performance of our businesses because it shows the sustainability of the company’s dividend payments.

The following table is a reconciliation of cash flows from operating activities to free cash flow on a consolidated basis.

	2017		2016
Cash flows from operating activities	7,358		6,643
Capital expenditures	(4,034	)	(3,771	)
Cash dividends paid on preferred shares	(127	)	(126	)
Cash dividends paid by subsidiaries to NCI	(34	)	(46	)
Acquisition and other costs paid	155		126
Voluntary defined benefit pension plan contribution	100		400
Free cash flow	3,418		3,226

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 define 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 BCE’s consolidated statements of financial position. We include 50% of outstanding preferred shares in our net debt as it is consistent with the treatment by certain credit rating agencies.

We consider net debt to be an important indicator of the company’s financial 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 company’s financial leverage.

Net debt has no directly comparable IFRS financial measure, but rather is calculated using several asset and liability categories from the statements of financial position, as shown in the following table.

	2017		2016
Debt due within one year	5,178		4,887
Long-term debt	18,215		16,572
50% of outstanding preferred shares	2,002		2,002
Cash and cash equivalents	(625	)	(853	)
Net debt	24,770		22,608

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NET DEBT LEVERAGE RATIO

The net debt leverage ratio does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers. We use, and believe that certain investors and analysts use, the net debt leverage ratio as a measure of financial leverage.

The net debt leverage ratio represents net debt divided by adjusted EBITDA. For the purposes of calculating our net debt leverage ratio, adjusted EBITDA is twelve-month trailing adjusted EBITDA.

ADJUSTED EBITDA TO NET INTEREST EXPENSE RATIO

The ratio of adjusted EBITDA to net interest expense does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers. We use, and believe that certain investors and analysts use, the adjusted EBITDA to net interest expense ratio as a measure of financial health of the company.

The adjusted EBITDA to net interest expense ratio represents adjusted EBITDA divided by net interest expense. For the purposes of calculating our adjusted EBITDA to net interest expense ratio, adjusted EBITDA is twelve-month trailing adjusted EBITDA. Net interest expense is twelvemonth trailing net interest expense as shown in our statements of cash flows, plus 50% of declared preferred share dividends as shown in our income statements.

KPIs

In addition to the non-GAAP financial measures described previously, we use a number of KPIs to measure the success of our strategic imperatives.

These KPIs are not accounting measures and may not be comparable to similar measures presented by other issuers.

KPI	DEFINITION
ARPU	Average revenue per user (ARPU) or subscriber is a measure used to track our recurring revenue streams. Wireless blended ARPU is calculated by dividing certain service revenues by the average subscriber base for the specified period and is expressed as a dollar unit per month.
Capital intensity	Capital expenditures divided by operating revenues.
Churn	Churn is the rate at which existing subscribers cancel their services. It is a measure of our ability to retain our customers. Wireless churn is calculated by dividing the number of deactivations during a given period by the average number of subscribers in the base for the specified period and is expressed as a percentage per month.
Subscriber unit	Wireless subscriber unit is comprised of an active revenue-generating unit (e.g. mobile device, tablet or wireless Internet products), with a unique identifier (typically International Mobile Equipment Identity (IMEI) number), that has access to our wireless networks. We report wireless subscriber units in two categories: postpaid and prepaid. Prepaid subscriber units are considered active for a period of 120 days following the expiry of the subscriber’s prepaid balance. Wireline subscriber unit consists of an active revenue-generating unit with access to our services, including Internet, satellite TV, IPTV, and/or NAS. A subscriber is included in our subscriber base when the service has been installed and is operational at the customer premise and a billing relationship has been established. Internet, IPTV and satellite TV subscribers have access to stand-alone services, and are primarily represented by a dwelling unit NAS subscribers are based on a line count and are represented by a unique telephone number

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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 filed or submitted under Canadian and U.S. securities laws is recorded, processed, summarized and reported within the time periods specified under those laws, and include controls and procedures that are designed to ensure that the information is accumulated and communicated to management, including BCE’s President and CEO and Executive Vice-President and Chief Financial Officer (CFO), to allow timely decisions regarding required disclosure.

As at December 31, 2017, 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 defined in Rule 13a-15(e) under the U.S. Securities Exchange Act of 1934, as amended, and under National Instrument 52-109 – Certification 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 MTS, which we acquired on March 17, 2017. The contribution of the acquired MTS operations to our consolidated financial statements for the year ended December 31, 2017 was approximately 3% of consolidated revenues and 3% of consolidated net earnings. Additionally, at December 31, 2017, the current assets and current liabilities of the acquired MTS operations represented approximately 2% and 4% of our consolidated current assets and current liabilities, respectively, and their non-current assets and non-current liabilities represented approximately 7% and 2% of our consolidated non-current assets and non-current liabilities, respectively. The design and evaluation of the disclosure controls and procedures of MTS will be completed for the first quarter of 2018. Further details related to the acquisition of MTS is disclosed in Note 3, Business acquisitions and dispositions, in BCE’s 2017 consolidated financial statements.

Based on that evaluation, which excluded the disclosure controls and procedures of MTS, the CEO and CFO concluded that our disclosure controls and procedures were effective as at December 31, 2017.

INTERNAL CONTROL OVER FINANCIAL REPORTING

Management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rule 13(a)-15(f) under the U.S. Securities Exchange Act of 1934, as amended, and under National Instrument 52-109. Our internal control over financial reporting is a process designed under the supervision of the CEO and CFO, and effected by the Board, management and other personnel of BCE, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS. However, because of its inherent limitations, internal control over financial 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 financial reporting as at December 31, 2017, based on the criteria established in Internal Control – Integrated Framework (2013) 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 financial reporting to exclude the internal control over financial reporting of MTS.

Based on that evaluation, which excluded the internal control over financial reporting of MTS, the CEO and CFO concluded that our internal control over financial reporting was effective as at December 31, 2017.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There have been no changes during the year ended December 31, 2017 in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. The adoption of IFRS 15–Revenue from Contracts with Customers, required the implementation of new accounting processes, which changed the Company’s internal controls over revenue recognition, contract acquisition costs and financial reporting. We are in the process of completing the design of these controls. We do not expect significant changes to our internal control over financial reporting due to the adoption of this new standard in 2018.

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Consolidated financial statements

MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING

These financial statements form the basis for all of the financial information that appears in this annual report.

The financial statements and all of the information in this annual report are the responsibility of the management of BCE Inc. (BCE) and have been reviewed and approved by the board of directors. The board of directors is responsible for ensuring that management fulfills its financial reporting responsibilities. Deloitte LLP, Independent Registered Public Accounting Firm, have audited the financial statements.

Management has prepared the financial statements in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. Under these principles, management has made certain estimates and assumptions that are reflected in the financial statements and notes. Management believes that these financial statements fairly present BCE’s consolidated financial position, results of operations and cash flows.

Management has a system of internal controls designed to provide reasonable assurance that the financial 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 financial records are reliable and form a proper basis for preparing the financial 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 Committee’s responsibilities include reviewing the financial statements and other information in this annual report, and recommending them to the board of directors for approval. You will find a description of the Audit Committee’s other responsibilities on page 164 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 Officer

(signed) Glen LeBlanc
Executive Vice-President and Chief Financial Officer

(signed) Thierry Chaumont
Senior Vice-President and Controller

March 8, 2018

114   BCE Inc.   2017 ANNUAL REPORT
	Consolidated financial statements

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Directors of BCE Inc.

OPINION ON THE CONSOLIDATED FINANCIAL STATEMENTS

We have audited the accompanying consolidated financial statements of BCE Inc. and subsidiaries (the “Company”), which comprise the consolidated statements of financial position as at December 31, 2017 and December 31, 2016, the consolidated income statements, consolidated statements of comprehensive income, consolidated statements of changes in equity and consolidated statements of cash flows for the years then ended, and the related notes, including a summary of significant accounting policies and other explanatory information (collectively referred to as the “financial statements”).

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2017 and December 31, 2016, and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 8, 2018 expressed an unqualified opinion on the Company’s internal control over financial reporting.

BASIS FOR OPINION

MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

Management is responsible for the preparation and fair presentation of these financial 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 financial statements that are free from material misstatement, whether due to fraud or error.

AUDITOR’S RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards and the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error. Those standards also require that we comply with ethical requirements. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. Further, we are required to be independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada and to fulfill our other ethical responsibilities in accordance with these requirements.

An audit includes performing procedures to assess the risks of material misstatement of the financial statements, whether due to fraud or error, and performing procedures that respond to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies and principles used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a reasonable basis for our audit opinion.

/s/ Deloitte LLP¹
Chartered Professional Accountants

Montréal, Canada
March 8, 2018

We have served as the Company’s auditor since 1880.

1 CPA auditor, CA, public accountancy permit No. A124391

BCE Inc.   2017 ANNUAL REPORT   115

Consolidated financial statements

CONSOLIDATED INCOME STATEMENTS

FOR THE YEAR ENDED DECEMBER 31 (IN MILLIONS OF CANADIAN DOLLARS, EXCEPT SHARE AMOUNTS)	NOTE	2017		2016
Operating revenues	4	22,719		21,719
Operating costs	4, 5	(13,541	)	(12,931	)
Severance, acquisition and other costs	4, 6	(190	)	(135	)
Depreciation	4, 13	(3,037	)	(2,877	)
Amortization	4, 14	(813	)	(631	)
Finance costs
Interest expense	7	(955	)	(888	)
Interest on post-employment benefit obligations	22	(72	)	(81	)
Other (expense) income	8	(102	)	21
Income taxes	9	(1,039	)	(1,110	)
Net earnings		2,970		3,087
Net earnings attributable to:
Common shareholders		2,786		2,894
Preferred shareholders		128		137
Non-controlling interest	30	56		56
Net earnings		2,970		3,087
Net earnings per common share	10
Basic		3.12		3.33
Diluted		3.11		3.33
Average number of common shares outstanding – basic (millions)		894.3		869.1

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31 (IN MILLIONS OF CANADIAN DOLLARS)	NOTE	2017		2016
Net earnings		2,970		3,087
Other comprehensive loss, net of income taxes
Items that will be subsequently reclassified to net earnings
Net change in value of available-for-sale financial assets, net of income taxes of nil for 2017 and 2016		–		(7	)
Net change in value of derivatives designated as cash flow hedges, net of income taxes of $21 million and $24 million for 2017 and 2016, respectively		(65	)	(68	)
Items that will not be reclassified to net earnings
Actuarial losses on post-employment benefit plans, net of income taxes of $92 million and $71 million for 2017 and 2016, respectively	22	(246	)	(191	)
Other comprehensive loss		(311	)	(266	)
Total comprehensive income		2,659		2,821
Total comprehensive income attributable to:
Common shareholders		2,477		2,630
Preferred shareholders		128		137
Non-controlling interest	30	54		54
Total comprehensive income		2,659		2,821

116   BCE Inc.   2017 ANNUAL REPORT
	Consolidated financial statements

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(IN MILLIONS OF CANADIAN DOLLARS)	NOTE	DECEMBER 31, 2017		DECEMBER 31, 2016
ASSETS
Current assets
Cash		442		603
Cash equivalents		183		250
Trade and other receivables	11	3,135		2,979
Inventory	12	380		403
Prepaid expenses		375		420
Other current assets		124		200
Total current assets		4,639		4,855
Non-current assets
Property, plant and equipment	13	24,033		22,346
Intangible assets	14	13,305		11,998
Deferred tax assets	9	144		89
Investments in associates and joint ventures	3, 15	814		852
Other non-current assets	16	900		1,010
Goodwill	17	10,428		8,958
Total non-current assets		49,624		45,253
Total assets		54,263		50,108
LIABILITIES
Current liabilities
Trade payables and other liabilities	18	4,623		4,326
Interest payable		168		156
Dividends payable		678		617
Current tax liabilities		140		122
Debt due within one year	19	5,178		4,887
Total current liabilities		10,787		10,108
Non-current liabilities
Long-term debt	20	18,215		16,572
Deferred tax liabilities	9	2,447		2,192
Post-employment benefit obligations	22	2,108		2,105
Other non-current liabilities	23	1,223		1,277
Total non-current liabilities		23,993		22,146
Total liabilities		34,780		32,254
Commitments and contingencies	28
EQUITY
Equity attributable to BCE shareholders
Preferred shares	25	4,004		4,004
Common shares	25	20,091		18,370
Contributed surplus	25	1,162		1,160
Accumulated other comprehensive (loss) income		(17	)	46
Deficit		(6,080	)	(6,040	)
Total equity attributable to BCE shareholders		19,160		17,540
Non-controlling interest	30	323		314
Total equity		19,483		17,854
Total liabilities and equity		54,263		50,108

BCE Inc.   2017 ANNUAL REPORT   117

Consolidated financial statements

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEAR ENDED DECEMBER 31, 2017 (IN MILLIONS OF CANADIAN DOLLARS)	NOTE	ATTRIBUTABLE TO BCE SHAREHOLDERS										NON- CONTROL- LING INTEREST		TOTAL EQUITY
		PREFERRED SHARES	COMMON SHARES	CONTRI- BUTED SURPLUS		ACCUMU- LATED OTHER COMPRE- HENSIVE INCOME (LOSS)		DEFICIT		TOTAL
Balance at January 1, 2017		4,004	18,370	1,160		46		(6,040	)	17,540		314		17,854
Net earnings		–	–	–		–		2,914		2,914		56		2,970
Other comprehensive loss		–	–	–		(63	)	(246	)	(309	)	(2	)	(311	)
Total comprehensive (loss) income		–	–	–		(63	)	2,668		2,605		54		2,659
Common shares issued under employee stock option plan	25	–	122	(6	)	–		–		116		–		116
Common shares issued under employee savings plan	25	–	5	–		–		–		5		–		5
Other share-based compensation		–	–	8		–		(16	)	(8	)	–		(8	)
Common shares issued for the acquisition of Manitoba Telecom Services Inc.	3, 25	–	1,594	–		–		–		1,594		–		1,594
Dividends declared on BCE common and preferred shares		–	–	–		–		(2,692	)	(2,692	)	–		(2,692	)
Dividends declared by subsidiaries to non-controlling interest		–	–	–		–		–		–		(45	)	(45	)
Balance at December 31, 2017		4,004	20,091	1,162		(17	)	(6,080	)	19,160		323		19,483

FOR THE YEAR ENDED DECEMBER 31, 2016 (IN MILLIONS OF CANADIAN DOLLARS)	NOTE	ATTRIBUTABLE TO BCE SHAREHOLDERS										NON- CONTROL- LING INTEREST		TOTAL EQUITY
		PREFERRED SHARES	COMMON SHARES	CONTRI- BUTED SURPLUS		ACCUMU- LATED OTHER COMPRE- HENSIVE INCOME (LOSS)		DEFICIT		TOTAL
Balance at January 1, 2016		4,004	18,100	1,150		119		(6,350	)	17,023		306		17,329
Net earnings		–	–	–		–		3,031		3,031		56		3,087
Other comprehensive loss		–	–	–		(73	)	(191	)	(264	)	(2	)	(266	)
Total comprehensive (loss) income		–	–	–		(73	)	2,840		2,767		54		2,821
Common shares issued under employee stock option plan	25	–	104	(6	)	–		–		98		–		98
Common shares issued under dividend reinvestment plan	25	–	38	–		–		–		38		–		38
Common shares issued under employee savings plan	25	–	128	–		–		–		128		–		128
Other share-based compensation		–	–	16		–		(19	)	(3	)	–		(3	)
Dividends declared on BCE common and preferred shares		–	–	–		–		(2,511	)	(2,511	)	–		(2,511	)
Dividends declared by subsidiaries to non-controlling interest		–	–	–		–		–		–		(46	)	(46	)
Balance at December 31, 2016		4,004	18,370	1,160		46		(6,040	)	17,540		314		17,854

118   BCE Inc.   2017 ANNUAL REPORT
	Consolidated financial statements

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31 (IN MILLIONS OF CANADIAN DOLLARS)	NOTE	2017		2016
Cash flows from operating activities
Net earnings		2,970		3,087
Adjustments to reconcile net earnings to cash flows from operating activities
Severance, acquisition and other costs	6	190		135
Depreciation and amortization	13, 14	3,850		3,508
Post-employment benefit plans cost	22	314		305
Net interest expense		942		875
Losses (gains) on investments	8	5		(58	)
Income taxes	9	1,039		1,110
Contributions to post-employment benefit plans	22	(413	)	(725	)
Payments under other post-employment benefit plans	22	(77	)	(76	)
Severance and other costs paid		(147	)	(231	)
Interest paid		(965	)	(882	)
Income taxes paid (net of refunds)		(675	)	(565	)
Acquisition and other costs paid		(155	)	(126	)
Net change in operating assets and liabilities		480		286
Cash flows from operating activities		7,358		6,643
Cash flows used in investing activities
Capital expenditures	4	(4,034	)	(3,771	)
Business acquisitions	3	(1,649	)	(404	)
Disposition of intangibles and other assets	3	323		–
Decrease in investments		6		107
Loan to related party	3	–		(517	)
Other investing activities		(83	)	1
Cash flows used in investing activities		(5,437	)	(4,584	)
Cash flows used in financing activities
Increase in notes payable		333		991
Issue of long-term debt	20	3,011		2,244
Repayment of long-term debt	20	(2,653	)	(2,516	)
Issue of common shares	25	117		99
Repurchase of shares for settlement of share-based payments	26	(224	)	(106	)
Cash dividends paid on common shares		(2,512	)	(2,305	)
Cash dividends paid on preferred shares		(127	)	(126	)
Cash dividends paid by subsidiaries to non-controlling interest		(34	)	(46	)
Other financing activities		(60	)	(54	)
Cash flows used in financing activities		(2,149	)	(1,819	)
Net (decrease) increase in cash		(161	)	503
Cash at beginning of year		603		100
Cash at end of year		442		603
Net decrease in cash equivalents		(67	)	(263	)
Cash equivalents at beginning of year		250		513
Cash equivalents at end of year		183		250

BCE Inc.   2017 ANNUAL REPORT   119

Notes to consolidated financial statements

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., Bell Canada, their subsidiaries, joint arrangements and associates. MTS means, as the context may require, until March 17, 2017, either Manitoba Telecom Services Inc. or, collectively, Manitoba Telecom Services Inc. and its subsidiaries; and Bell MTS means, from March 17, 2017, the combined operations of MTS and Bell Canada in Manitoba.

Note 1 Corporate information

BCE is incorporated and domiciled in Canada. BCE’s head office is located at 1, Carrefour Alexander-Graham-Bell, Verdun, Québec, Canada. BCE is a telecommunications and media company providing wireless, wireline, Internet and television (TV) services to residential, business and wholesale customers nationally across Canada. Our Bell Media segment provides conventional, specialty and pay TV, digital media, radio broadcasting services and out-of-home (OOH) advertising services to customers nationally across Canada. The consolidated financial statements (financial statements) were approved by BCE’s board of directors on March 8, 2018.

Note 2 Significant accounting policies

A) BASIS OF PRESENTATION

The financial statements were prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB). The financial statements have been prepared on a historical cost basis, except for certain financial 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 financial statements are presented in Canadian dollars, the company’s functional currency.

B) BASIS OF CONSOLIDATION

We consolidate the financial statements of all of 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 significantly affect the investee’s returns.

The results of subsidiaries acquired during the year are consolidated from the date of acquisition and the results of subsidiaries sold during the year are deconsolidated from the date of disposal. Where necessary, adjustments are made to the financial statements of acquired subsidiaries to conform their accounting policies to ours. All intercompany transactions, balances, income and expenses are eliminated on consolidation.

Changes in BCE’s ownership interest in a subsidiary that do not result in a change of control are accounted for as equity transactions, with no effect on net earnings or on other comprehensive (loss) income.

C) REVENUE RECOGNITION

We recognize revenues from the sale of products or the rendering of services when they are earned; specifically when all the following conditions are met:

• the significant 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 benefits associated with the transaction will flow 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
• advertising revenue, net of agency commissions, when advertisements are aired on radio or TV, posted on our website or appear on the company’s advertising panels and street furniture

We measure revenues at the fair value of the arrangement consideration. 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 in the consolidated statements of financial position (statements of financial 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.

120   BCE Inc.   2017 ANNUAL REPORT
	Notes to consolidated financial statements

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 specified 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 share-based payment arrangements include stock options, restricted share units and performance share units (RSUs/PSUs), deferred share units (DSUs), an employee savings plan (ESP) and a deferred share plan (DSP).

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. We recognize compensation expense in Operating costs in the consolidated income statements (income statements). Compensation expense is adjusted for subsequent changes in management’s 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 received and the amounts previously credited to contributed surplus.

RSUs/PSUs

For each RSU/PSU granted, we recognize compensation expense in Operating costs in the income statements, equal to the market value of a BCE common share at the date of grant and based on the number of RSUs/PSUs expected to vest, recognized over the term of the vesting period, with a corresponding credit to contributed surplus. Additional RSUs/PSUs are issued to reflect dividends declared on the common shares.

Compensation expense is adjusted for subsequent changes in management’s estimate of the number of RSUs/PSUs that are expected to vest. The effect of these changes is recognized in the period of the change. Upon settlement of the RSUs/PSUs, any difference between the cost of shares purchased on the open market and the amount credited to contributed surplus is reflected in the deficit. Vested RSUs/PSUs 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 reflect 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 reflected in the deficit.

ESP

We recognize our ESP contributions as compensation expense in Operating costs in the income statements. We credit contributed surplus for the ESP expense recognized over the two-year vesting period, based on management’s estimate of the accrued contributions that are expected to vest. Upon settlement of shares under the ESP, any difference between the cost of shares purchased on the open market and the amount credited to contributed surplus is reflected in the deficit.

DSP

For each deferred share granted under the DSP, we recognize compensation expense in Operating costs in the income statements equal to the market value of a BCE common share and based on the number of deferred shares expected to vest, recognized over the vesting period. Additional deferred shares are issued to reflect dividends declared on the common shares.

Compensation expense is adjusted for subsequent changes in the market value of BCE common shares and any change in management’s estimate of the number of deferred shares that are expected to vest. The cumulative effect of any change in value is recognized in the period of the change. Participants have the option to receive either BCE common shares or a cash equivalent for each vested deferred share upon qualifying for payout under the terms of the grant.

E) INCOME AND OTHER TAXES

Current and deferred income tax expense is recognized in the income statements, except to the extent that the expense relates to items recognized in other comprehensive (loss) income or directly in equity.

A current or non-current tax asset (liability) is the estimated tax receivable (payable) on taxable earnings (loss) for the current or past periods. We also record future tax liabilities, which are included in Other non-current liabilities in the statements of financial position.

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 financial position and their corresponding tax bases
• the carryforward of unused tax losses and credits, to the extent they can be used in the future

BCE Inc.   2017 ANNUAL REPORT   121

Notes to consolidated financial statements

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 in the statements of financial position 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 specific identification 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 potentially obsolete, calculated using an inventory aging 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, at a rate that is based on our weighted average interest rate on our outstanding long-term debt. Gains or losses on the sale or retirement of property, plant and equipment are recorded in Other (expense) income in the income statements.

LEASES

Leases of property, plant and equipment are recognized as finance 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 classified as operating leases. We recognize operating lease expense in Operating costs in the income statements on a straight-line basis over the term of the lease.

ASSET RETIREMENT OBLIGATIONS (AROs)

We initially measure and record AROs at management’s best estimate using a present value methodology, adjusted subsequently for any changes in the timing or amount of cash flows 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 ARO and record a corresponding amount in interest expense to reflect the passage of time.

J) INTANGIBLE ASSETS

FINITE-LIFE INTANGIBLE ASSETS

Finite-life intangible assets are recorded 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 benefits will be generated
• costs attributable to the asset can be measured reliably

122   BCE Inc.   2017 ANNUAL REPORT
	Notes to consolidated financial statements

CUSTOMER RELATIONSHIPS

Customer relationship assets are acquired through business combinations and are recorded at fair value at the date of acquisition.

PROGRAM AND FEATURE FILM RIGHTS

We account for program and feature film rights as intangible assets when these assets are acquired for the purpose of broadcasting. Program and feature film rights, which include producer advances and licence fees paid in advance of receipt of the program or film, are stated at acquisition cost less accumulated amortization, and accumulated impairment losses, if any. Programs and feature films under licence agreements are recorded as assets for rights acquired and Iiabilities for obligations incurred when:

• we receive a broadcast master and the cost is known or reasonably determinable for new program and feature film licences
• the licence term commences for licence period extensions or syndicated programs

Programs and feature films are classified as non-current assets with related liabilities classified as current or non-current, based on the payment terms. Amortization of program and feature film rights is recorded in Operating costs in the income statements.

INDEFINITE-LIFE INTANGIBLE ASSETS

Brand assets, mainly comprised of the Bell, Bell Media and Bell MTS 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. Borrowing costs are calculated at a rate that is based on our weighted average interest rate on our outstanding long-term debt.

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 finite-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, as required. Land and assets under construction or development are not depreciated.

	ESTIMATED USEFUL LIFE
Property, plant and equipment
Network infrastructure and equipment	2 to 40 years
Buildings	5 to 50 years
Finite-life intangible assets
Software	2 to 12 years
Customer relationships	3 to 26 years
Program and feature film rights	Up to 5 years

L) INVESTMENTS IN ASSOCIATES AND JOINT ARRANGEMENTS

Our financial statements incorporate our share of the results of our associates and joint ventures using the equity method of accounting, except when the investment is classified as held for sale. Equity income from investments is recorded in Other (expense) income in the income statements.

Investments in associates and joint ventures are recognized initially at cost and adjusted thereafter to include the company’s share of income or loss and comprehensive income on an after-tax basis.

Investments are reviewed for impairment at each reporting period and we compare their recoverable amount to their carrying amount when there is an indication of impairment.

We recognize our share of the assets, liabilities, revenues and expenses of joint operations in accordance with the related contractual agreements.

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 and recorded in Severance, acquisition and other costs in the income statements.

Identifiable 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 is remeasured to fair value and any gain or loss on remeasurement is recognized in Other (expense) income in the income statements. The excess of the purchase consideration and any previously-held equity interest over the fair value of identifiable net assets acquired is recorded as Goodwill in the statements of financial position. If the fair value of identifiable net assets acquired exceeds the purchase consideration and any previously-held equity interest, the difference is recognized in Other (expense) income in the income statements 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 owner’s equity.

BCE Inc.   2017 ANNUAL REPORT   123

Notes to consolidated financial statements

N) IMPAIRMENT OF NON-FINANCIAL ASSETS

Goodwill and indefinite-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 finite-life intangible assets are tested for impairment if events or changes in circumstances, assessed at each reporting period, 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 identifiable cash inflows.

Impairment losses are recognized and measured as the excess of the carrying value of the assets over their recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs of disposal 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 asset’s 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 identifiable group of assets that generates cash inflows that are independent of the cash inflows from other assets or groups of assets.

We identify any potential impairment by comparing the carrying value of a CGU or group 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 of disposal and its value in use. Both fair value less costs of disposal and value in use are based on estimates of discounted future cash flows or other valuation methods. Cash flows 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 identifiable 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 recognized in Other (expense) income in the income statements for any excess of the carrying value of goodwill over its recoverable amount. For purposes of impairment testing of goodwill, our CGUs or groups of CGUs correspond to our reporting segments as disclosed in Note 4, Segmented information.

O) FINANCIAL INSTRUMENTS

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 significant 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 and recognized in Operating costs in the income statements.

AVAILABLE-FOR-SALE (AFS) FINANCIAL ASSETS

Our portfolio investments in equity securities are classified as AFS and are presented in our statements of financial position as Other non-current assets. They have been designated as such based on management’s intentions or because they are not classified 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 (loss) income in the consolidated statements of comprehensive income (statements of comprehensive income) and are reclassified to Other (expense) income in the income statements when realized or when an impairment is determined.

OTHER FINANCIAL LIABILITIES

Other financial 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 reflected in the consolidated statements of changes in equity as a charge to the deficit.

P) DERIVATIVE FINANCIAL INSTRUMENTS

We use derivative financial instruments to manage interest rate risk, foreign currency risk and cash flow exposures related to share-based payment plans, capital expenditures, long-term debt instruments and operating revenues and expenses. We do not use derivative financial instruments for speculative or trading purposes.

HEDGE ACCOUNTING

To qualify for hedge accounting, we document the relationship between the derivative and the related identified risk exposure, and our risk management objective and strategy. This includes associating each derivative to a specific asset or liability, a specific firm commitment, anticipated purchases or sales.

We assess the effectiveness of a derivative in managing an identified 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

We enter into interest rate swaps to manage the effect of changes in interest rates relating to fixed-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 in the

124   BCE Inc.   2017 ANNUAL REPORT
	Notes to consolidated financial statements

statements of financial position 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

We enter into cash flow hedges to mitigate foreign currency risk on certain debt instruments and anticipated purchases and sales, as well as interest rate risk related to future debt issuances. We use foreign currency forward contracts to manage the exposure to anticipated purchases and sales denominated in foreign currencies.

Changes in the fair value of foreign currency forward contracts related to anticipated purchases and sales are recognized in our statements of comprehensive income, except for any ineffective portion, which is recognized immediately in Other (expense) income in the income statements. Realized gains and losses in Accumulated other comprehensive income are reclassified to the income statements or as an adjustment to the cost basis of the hedged item in the same periods as the corresponding hedged transactions are recognized. Cash flow hedges that mature within one year are included in Other current assets or Trade payables and other liabilities in the statements of financial position, whereas hedges that have a maturity of more than one year are included in Other non-current assets or Other non-current liabilities.

We use cross currency basis swaps and foreign currency forward contracts to manage our U.S. dollar borrowings under our unsecured committed term credit facility and U.S. commercial paper program. Changes in the fair value of these derivatives and the related borrowings are recognized in Other (expense) income in the income statements and offset, unless a portion of the hedging relationship is ineffective.

DERIVATIVES USED AS ECONOMIC HEDGES

We use derivatives to manage cash flow exposures related to equity-settled share-based payment plans and anticipated purchases, equity price risk related to a cash-settled share-based payment plan, and interest rate risk related to preferred share dividend rate resets. As these derivatives do not qualify for hedge accounting, the changes in their fair value are recorded in the income statements in Operating costs for derivatives used to hedge cash-settled share-based payments and in Other (expense) income for other derivatives.

Q) POST-EMPLOYMENT BENEFIT PLANS

DEFINED BENEFIT (DB) AND OTHER POST-EMPLOYMENT BENEFIT (OPEB) PLANS

We maintain DB pension plans that provide pension benefits for certain employees. Benefits are based on the employee’s length of service and average rate of pay during the highest paid consecutive five years of service. Most employees are not required to contribute to the plans. Certain plans provide cost of living adjustments to help protect the income of retired employees against inflation.

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 reflect actuarial assumptions about future investment returns, salary projections, future service and life expectancy.

We provide OPEBs to some of our employees, including:

• healthcare and life insurance benefits during retirement, which were phased out for new retirees over a ten-year period ending on December 31, 2016. We do not fund most of these OPEB plans.
• other benefits, including workers’ compensation and medical benefits to former or inactive employees, their beneficiaries 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 benefit plans, net of the fair value of the benefit 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 fixed income investments with maturities that match the timing of benefits expected to be paid under the plans
• management’s best estimate of pay increases, retirement ages of employees, expected healthcare costs and life expectancy

We value post-employment benefit plan assets at fair value using current market values.

Post-employment benefit plans current service cost is included in Operating costs in the income statements. Interest on our post-employment benefit assets and obligations is recognized in Finance costs in the income statements and represents the accretion of interest on the assets and obligations under our post-employment benefit 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 benefit plans are recorded in Other comprehensive (loss) income in the statements of comprehensive income in the period in which they occur and are recognized immediately in the deficit.

December 31 is the measurement date for our significant post-employment benefit plans. Our actuaries perform a valuation based on management’s assumptions 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 significant pension plans was as at December 31, 2016.

DEFINED CONTRIBUTION (DC) PENSION PLANS

We maintain DC pension plans that provide certain employees with benefits. Under these plans, we are responsible for contributing a predetermined amount to an employee’s retirement savings, based on a percentage of the employee’s salary.

We recognize a post-employment benefit 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.

BCE Inc.   2017 ANNUAL REPORT   125

Notes to consolidated financial statements

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 outflow 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 specific to the obligation. The obligation increases as a result of the passage of time, resulting in interest expense which is recognized in Finance costs in the income statements.

S) ESTIMATES AND KEY JUDGMENTS

When preparing the financial statements, management makes estimates and judgments 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 judgments are subject to measurement uncertainty and actual results could differ. Our more significant estimates and judgments are described below.

ESTIMATES

USEFUL LIVES OF PROPERTY, PLANT AND EQUIPMENT AND FINITE-LIFE INTANGIBLE ASSETS

Property, plant and equipment represent a significant 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.

POST-EMPLOYMENT BENEFIT PLANS

The amounts reported in the financial statements relating to DB pension plans and OPEBs are determined using actuarial calculations that are based on several assumptions.

The actuarial valuation uses management’s 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 significant assumptions used to calculate the net post-employment benefit plans cost are the discount rate and life expectancy.

The discount rate is based on the yield on long-term, high-quality corporate fixed income investments, with maturities matching the estimated cash flows of the post-employment benefit plans. Life expectancy is based on publicly available Canadian mortality tables and is adjusted for the company’s specific experience.

IMPAIRMENT OF NON-FINANCIAL ASSETS

We make a number of estimates when calculating recoverable amounts using discounted future cash flows or other valuation methods to test for impairment. These estimates include the assumed growth rates for future cash flows, the number of years used in the cash flow model and the discount rate.

DEFERRED TAXES

The amount of deferred tax assets and liabilities are estimated with consideration given to the timing, sources and amounts of future taxable income.

FAIR VALUE OF FINANCIAL INSTRUMENTS

Certain financial instruments, such as investments in equity securities, derivative financial instruments and certain elements of borrowings, are carried in the statements of financial position at fair value, with changes in fair value reflected 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 flows and earnings multiples.

CONTINGENCIES

In the ordinary course of business, we become involved in various claims and legal proceedings seeking monetary damages and other relief. Pending claims and legal proceedings 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 unavoidable costs of meeting our obligations under a contract exceed the expected benefits to be received under the 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.

126   BCE Inc.   2017 ANNUAL REPORT
	Notes to consolidated financial statements

JUDGMENTS

POST-EMPLOYMENT BENEFIT PLANS

The determination of the discount rate used to value our post-employment benefit obligations requires judgment. The rate is set by reference to market yields of high-quality corporate fixed income investments at the beginning of each fiscal year. Significant judgment is required when setting the criteria for fixed income investments to be included in the population from which the yield curve is derived. The most significant criteria considered for the selection of investments include the size of the issue and credit quality, along with the identification of outliers, which are excluded.

INCOME TAXES

The calculation of income taxes requires judgment in interpreting tax rules and regulations. There are transactions and calculations for which the ultimate tax determination is uncertain. Our tax filings are also subject to audits, the outcome of which could change the amount of current and deferred tax assets and liabilities.

Management judgment is used to determine the amounts of deferred tax assets and liabilities and future tax liabilities to be recognized. In particular, judgment 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 judgment to establish the separately identifiable components and the allocation of the total price between those components.

CGUs

The determination of CGUs or groups of CGUs for the purpose of impairment testing requires judgment.

CONTINGENCIES

The determination of whether a loss is probable from claims and legal proceedings and whether an outflow of resources is likely requires judgment.

T) CHANGE IN ACCOUNTING ESTIMATE

In 2017 and 2016, as part of our ongoing annual review of property, plant and equipment and finite-life intangible assets, and to better reflect their useful lives, we increased the estimate of useful lives of certain assets. The changes have been applied prospectively effective January 1, 2017 and January 1, 2016, and did not have a significant impact on our financial statements.

U) ADOPTION OF AMENDED ACCOUNTING STANDARDS

As required, effective January 1, 2017, we adopted the following amended accounting standard.

STANDARD	DESCRIPTION	IMPACT
Amendments to IAS 7 – Statement of Cash Flows	Requires enhanced disclosures about changes in liabilities arising from financing activities, including changes from financing cash flows, changes arising from obtaining or losing control of subsidiaries or other businesses, the effect of changes in foreign exchange rates and changes in fair values.	The required enhanced disclosures have been provided in Note 27, Additional cash flow information.

BCE Inc.   2017 ANNUAL REPORT   127

Notes to consolidated financial statements

V) FUTURE CHANGES TO ACCOUNTING STANDARDS

The following new or amended standards and interpretation issued by the IASB have an effective date after December 31, 2017 and have not yet been adopted by BCE.

STANDARD	DESCRIPTION	IMPACT	EFFECTIVE DATE
IFRS 15 – Revenue from Contracts with Customers	Establishes principles to record revenues from contracts for the sale of goods or services, unless the contracts are in the scope of IAS 17 – Leases or other IFRSs. Under IFRS 15, revenue is recognized at an amount that reflects the expected consideration receivable in exchange for transferring goods or services to a customer, applying the following five steps: 1. Identify the contract with a customer 2. Identify the performance obligations in the contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations in the contract 5. Recognize revenue when (or as) the entity satisfies a performance obligation The new standard also provides guidance relating to principal versus agent relationships, licences of intellectual property, contract costs and the measurement and recognition of gains and losses on the sale of certain non-financial assets such as property and equipment. Additional disclosures will also be required under the new standard.	IFRS 15 will principally affect the timing of revenue recognition and how we classify revenues between product and service in our Bell Wireless segment. IFRS 15 will also affect how we account for costs to obtain a contract. Under multiple-element arrangements, revenue allocated to a satisfied performance obligation will no longer be limited to the amount that is not contingent upon the satisfaction of additional performance obligations. Although the total revenue recognized during the term of a contract will be largely unaffected, revenue recognition may be accelerated and reflected ahead of the associated cash inflows. This will result in the recognition of a contract asset on the balance sheet, corresponding to the amount of revenue recognized and not yet billed to a customer. The contract asset will be realized over the term of the customer contract. As revenues allocated to a satisfied performance obligation are no longer limited to the non-contingent amount, a greater proportion of the total revenue recognized during the term of certain customer contracts will be attributed to a delivered product, resulting in a corresponding decrease in service revenue. Sales commissions and any other incremental costs of obtaining a contract with a customer will be recognized on the balance sheet and amortized on a systematic basis that is consistent with the period and pattern of transfer to the customer of the related products or services, except as noted below. Under IFRS 15, certain practical expedients are permitted both on transition and on an ongoing basis. On transition, completed contracts that begin and end within the same annual reporting period and those completed before January 1, 2017 are not restated. Similarly, contracts modified prior to January 1, 2017 are not restated. When our right to consideration from a customer corresponds directly with the value to the customer of the products and services transferred to date, we will recognize revenue in the amount to which we have a right to invoice. Costs of obtaining a contract that would be amortized within one year or less will be immediately expensed. We continue to make progress towards adoption of IFRS 15 according to our detailed implementation plan. Changes and enhancements to our existing information technology (IT) systems, business processes, and systems of internal control are being completed. A dedicated project team that leverages key resources throughout the company is in place to effect the necessary changes. While our testing and data validation process is ongoing, we expect that the impact of the new standard will be most pronounced in our Bell Wireless segment. Although total revenue recognized over the term of a customer contract is not expected to change significantly, our preliminary estimate of the impact of adopting IFRS 15 is a decrease in 2017 service revenues within the range of $1.2 billion to $1.4 billion, with a corresponding increase in product revenue. Total operating revenues less operating costs in 2017 is estimated to increase by approximately $0.1 billion. Total assets on our January 1, 2017 statement of financial position will increase as we record contract assets and costs to obtain a contract. We currently estimate the value of the gross contract assets to be in the range of $1.1 billion to $1.3 billion and an increase in costs to obtain a contract of approximately $0.3 billion to $0.4 billion, both of which would be recognized through an adjustment to opening retained earnings. Total liabilities will increase mainly to reflect a resulting $0.4 billion deferred tax liability, also recognized through an adjustment to opening retained earnings. We do not expect that IFRS 15 will impact our cash flows from operating activities.	Annual periods beginning on or after January 1, 2018, using a full retrospective approach for all periods presented in the period of adoption.

128   BCE Inc.   2017 ANNUAL REPORT
	Notes to consolidated financial statements

STANDARD	DESCRIPTION	IMPACT	EFFECTIVE DATE
Amendments to IFRS 2 – Share-based Payment	Clarifies the classification and measurement of cash-settled share-based payment transactions that include a performance condition, share-based payment transactions with a net settlement feature for withholding tax obligations, and modifications of a share-based payment transaction from cash-settled to equity-settled.	The amendments to IFRS 2 will not have a significant impact on our financial statements.	Annual periods beginning on or after January 1, 2018.
IFRS 9 – Financial Instruments	Sets out the requirements for recognizing and measuring financial assets, financial liabilities and some contracts to buy and sell non-financial items. IFRS 9 replaces IAS 39 – Financial Instruments: Recognition and Measurement. The new standard establishes a single classification and measurement approach for financial assets that reflects the business model in which they are managed and their cash flow characteristics. It also provides guidance on an entity’s own credit risk relating to financial liabilities and modifies the hedge accounting model to better link the economics of risk management with its accounting treatment. Additional disclosures will also be required under the new standard.	The amendments to IFRS 9 will not have a significant impact on our financial statements.	Annual periods beginning on or after January 1, 2018.
IFRS 16 – Leases	Eliminates the distinction between operating and finance leases for lessees, requiring instead that leases be capitalized by recognizing the present value of the lease payments and showing them either as lease assets (right-of-use assets) or together with property, plant and equipment. If lease payments are made over time, an entity recognizes a financial liability representing its obligation to make future lease payments. A depreciation charge for the lease asset is recorded within operating costs and an interest expense on the lease liability is recorded within finance costs. IFRS 16 does not require a lessee to recognize assets and liabilities for short-term leases and leases of low-value assets, nor does it substantially change lease accounting for lessors.	We continue to make progress towards adoption of IFRS 16 according to our detailed implementation plan. Changes and enhancements to our existing IT systems, business processes, and systems of internal control are being designed and tested. It is not yet possible to make a reliable estimate of the impact of the new standard on our financial statements.	Annual periods beginning on or after January 1, 2019, using either a full retrospective approach for all periods presented in the period of adoption or a modified retrospective approach.
International Financial Reporting Interpretations Committee (IFRIC) 23 – Uncertainty over Income Tax Treatments	IFRIC 23 clarifies the application of recognition and measurement requirements in IAS 12 – Income Taxes when there is uncertainty over income tax treatments. It specifically addresses whether an entity considers uncertain tax treatments separately or as a group, the assumptions an entity makes about the examination of tax treatments by taxation authorities, how an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates and how an entity considers changes in facts and circumstances.	We are currently evaluating the impact of IFRIC 23 on our financial statements.	Annual periods beginning on or after January 1, 2019, using either a full retrospective or a modified retrospective approach.

BCE Inc.   2017 ANNUAL REPORT   129

Notes to consolidated financial statements

Note 3 Business acquisitions and dispositions

2017

ACQUISITION OF MTS

On March 17, 2017, BCE acquired all of the issued and outstanding common shares of MTS for a total consideration of $2,933 million, of which $1,339 million was paid in cash and the remaining $1,594 million through the issuance of approximately 27.6 million BCE common shares. BCE funded the cash component of the transaction through debt financing.

Bell MTS is an information and communications technology provider offering wireless, Internet, TV, phone services, security systems and information solutions including unified cloud and managed services to residential and business customers in Manitoba.

The acquisition of MTS allows us to reach more Canadians through the expansion of our wireless and wireline broadband networks while supporting our goal of being recognized by customers as Canada’s leading communications company.

The results from the acquired MTS operations are included in our Bell Wireline and Bell Wireless segments from the date of acquisition.

The following table summarizes the fair value of the consideration paid and the fair value assigned to each major class of assets and liabilities.

	TOTAL
Cash consideration	1,339
Issuance of 27.6 million BCE common shares (1)	1,594
Total cost to be allocated	2,933
Trade and other receivables	91
Other non-cash working capital	(164	)
Assets held for sale (2)	302
Property, plant and equipment	978
Finite-life intangible assets (3)	979
Indefinite-life intangible assets (4)	280
Deferred tax assets	32
Other non-current assets	129
Debt due within one year	(251	)
Long-term debt	(721	)
Other non-current liabilities	(49	)
	1,606
Cash and cash equivalents	(16	)
Fair value of net assets acquired	1,590
Goodwill (5)	1,343

(1)	Recorded at fair value based on the market price of BCE common shares on the acquisition date.
(2)	Consists of finite-life and indefinite-life intangible assets recorded at fair value less costs to sell.
(3)	Consists mainly of customer relationships.
(4)	Indefinite-life intangible assets of $228 million and $52 million were allocated to our Bell Wireless and Bell Wireline groups of cash generating units (CGUs), respectively.
(5)	Goodwill arises principally from the assembled workforce, expected synergies and future growth. Goodwill is not deductible for tax purposes. Goodwill arising from the transaction of $677 million and $666 million was allocated to our Bell Wireless and Bell Wireline groups of CGUs, respectively.

As a result of the acquisition of MTS, we acquired non-capital tax loss carryforwards of approximately $1.5 billion and recognized a deferred tax asset of approximately $300 million which was realized in 2017.

Revenues of $728 million and net earnings of $87 million from the acquired MTS operations are included in the consolidated income statements from the date of acquisition. BCE’s consolidated operating revenues and net earnings for the year ended December 31, 2017 would have been $22,913 million and $2,978 million, respectively, had the acquisition of MTS occurred on January 1, 2017. These proforma amounts reflect the elimination of intercompany transactions, financing costs and the amortization of certain elements of the purchase price allocation and related tax adjustments.

During Q2 2017, BCE completed the previously announced divestiture of approximately one-quarter of postpaid wireless subscribers and 15 retail locations previously held by MTS, as well as certain Manitoba network assets, to TELUS Communications Inc. (TELUS) for total proceeds of $323 million.

Subsequent to the acquisition of MTS, on March 17, 2017, BCE transferred to Xplornet Communications Inc. (Xplornet) a total of 40 Megahertz (MHz) of 700 MHz, advanced wireless services-1 and 2500 MHz wireless spectrum which was previously held by MTS. BCE has also agreed to transfer to Xplornet wireless customers once Xplornet launches its mobile wireless service.

130   BCE Inc.   2017 ANNUAL REPORT
	Notes to consolidated financial statements

ACQUISITION OF CIESLOK MEDIA LTD. (CIESLOK MEDIA)

On January 3, 2017, BCE acquired all of the issued and outstanding common shares of Cieslok Media for a total cash consideration of $161 million.

Cieslok Media specializes in large-format outdoor advertising in key urban areas across Canada. This acquisition will contribute to growing and strengthening our digital presence in out-of-home advertising. Cieslok Media is included in our Bell Media segment in our consolidated financial statements.

The following table summarizes the fair value of the consideration paid and the fair value assigned to each major class of assets and liabilities.

	TOTAL
Cash consideration	161
Total cost to be allocated	161
Trade and other receivables	11
Other non-cash working capital	(4	)
Property, plant and equipment	13
Finite-life intangible assets	6
Indefinite-life intangible assets	76
Deferred tax liabilities	(20	)
Other non-current liabilities	(1	)
	81
Cash and cash equivalents	1
Fair value of net assets acquired	82
Goodwill (1)	79

(1) Goodwill arises principally from the assembled workforce, expected synergies and future growth. Goodwill is not deductible for tax purposes. The goodwill arising from the transaction was allocated to our Bell Media group of CGUs.

The transaction did not have a significant impact on our consolidated operating revenues and net earnings for the year ended December 31, 2017.

ACQUISITION OF ALARMFORCE INDUSTRIES INC. (ALARMFORCE)

Subsequent to year end, on January 5, 2018, BCE acquired all of the issued and outstanding shares of AlarmForce for a total consideration of $182 million, of which $181 million was paid in cash and the remaining $1 million through the issuance of 22,531 BCE common shares.

Subsequent to the acquisition of AlarmForce, on January 5, 2018, BCE sold AlarmForce’s approximate 39,000 customer accounts in British Columbia, Alberta and Saskatchewan to TELUS for total proceeds of approximately $67 million subject to customary closing adjustments.

AlarmForce provides security alarm monitoring, personal emergency response monitoring, video surveillance and related services to residential and commercial subscribers. The acquisition of AlarmForce supports our strategic expansion in the Connected Home marketplace.

AlarmForce will be included in our Bell Wireline segment in our consolidated financial statements.

The fair values of AlarmForce’s assets and liabilities have not yet been determined.

PROPOSED ACQUISITION OF SÉRIES+ AND HISTORIA SPECIALTY CHANNELS

On October 17, 2017, BCE entered into an agreement with Corus Entertainment Inc. (Corus) to acquire French-language specialty channels Séries+ and Historia. The transaction is valued at approximately $200 million. Subject to closing conditions, including approval by the CRTC and the Competition Bureau, the transaction is expected to close in mid-2018.

Séries+ is a fiction channel, offering locally produced dramas as well as foreign series. Historia broadcasts a suite of locally produced original content including documentaries, reality series and drama series.

The acquisition of Séries+ and Historia is expected to further enhance our competitiveness in the Québec media landscape.

2016

ACQUISITION OF Q9 NETWORKS INC. (Q9)

On October 3, 2016, BCE acquired the remaining 64.6% of the issued and outstanding shares of Q9 that it did not already own for a total cash consideration of approximately $170 million.

Q9 is a Toronto-based data centre operator providing outsourced hosting and other data solutions to Canadian business and government customers. The acquisition supports BCE’s ability to compete against domestic and international providers in the growing outsourced data services sector. Q9 is included in our Bell Wireline segment in our financial statements.

BCE Inc.   2017 ANNUAL REPORT   131

Notes to consolidated financial statements

The following table summarizes the fair value of the consideration paid and the fair value assigned to each major class of assets and liabilities.

	TOTAL
Cash consideration	170
Fair value of previously held interest in Q9 and favourable purchase option	131
Note receivable from Q9	517
Total cost to be allocated	818
Trade and other receivables	19
Other non-cash working capital	(39	)
Property, plant and equipment	311
Finite-life intangible assets	267
Long-term debt	(7	)
Deferred tax liabilities	(69	)
Other non-current liabilities	(16	)
	466
Cash and cash equivalents	12
Fair value of net assets acquired	478
Goodwill (1)	340

(1) Goodwill arises principally from the assembled workforce, expected synergies and future growth. Goodwill is not deductible for tax purposes. The goodwill arising from the transaction was allocated to our Bell Wireline group of CGUs.

In 2016, prior to the acquisition of Q9, BCE provided a loan of $517 million to Q9 mainly for the repayment of certain of its debt.

A gain on investment of $12 million was recognized in Other (expense) income in the income statements in 2016 from remeasuring BCE’s previously held equity interest in Q9 to its fair value.

Revenues of $29 million and net earnings of $2 million were included in the income statements in 2016 from the date of acquisition. BCE’s consolidated operating revenues and net earnings for the year ended December 31, 2016 would have been $21,801 million and $3,038 million, respectively, had the Q9 acquisition occurred on January 1, 2016. These proforma amounts reflect the elimination of intercompany transactions and earnings related to our previously held interest, the amortization of certain elements of the purchase price allocation and related tax adjustments.

NATIONAL EXPANSION OF HBO AND THE MOVIE NETWORK (TMN)

In Q1 2016, BCE completed a transaction with Corus under which Corus waived its HBO content rights in Canada and ceased operations of its Movie Central and Encore Avenue pay TV services in Western and Northern Canada, thereby allowing Bell Media to become the sole operator of HBO Canada nationally across all platforms and to expand TMN into a national pay TV service. TMN was successfully launched nationally on March 1, 2016. BCE paid to Corus a total cash consideration of $218 million, of which $21 million was paid in 2015.

The following table summarizes the fair value of the consideration paid and the fair value assigned to each major class of assets and liabilities.

	TOTAL
Cash consideration	218
Finite-life intangible assets	8
Non-current assets	1
Current liabilities	(3	)
Non-current liabilities	(8	)
Fair value of net assets acquired	(2	)
Goodwill (1)	220

(1) Goodwill arises principally from the ability to leverage media content and expected future growth. The amount of goodwill deductible for tax purposes is $163 million at a 7% annual rate declining balance. The goodwill arising from the transaction was allocated to our Bell Media group of CGUs.

The transaction is part of our strategy to create, negotiate and deliver premium TV programming to Canadian consumers across more platforms on a national basis.

This transaction did not have a significant impact on our consolidated operating revenues and net earnings for the year ended December 31, 2016.

132   BCE Inc.   2017 ANNUAL REPORT
	Notes to consolidated financial statements

Note 4 Segmented information

The accounting policies used in our segment reporting are the same as those we describe in Note 2, Significant accounting policies. Our results are reported in three segments: Bell Wireless, Bell Wireline and Bell Media. Our segments reflect 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 profit, 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 finance costs and other (expense) income are managed on a corporate basis and, accordingly, are not reflected in segment results.

Substantially all of our operations and assets are located in Canada.

On March 17, 2017, BCE acquired all of the issued and outstanding common shares of MTS. The results from the acquired MTS operations are included in our Bell Wireless and Bell Wireline segments from the date of acquisition.

Our Bell Wireless segment provides wireless voice and data communication products and services to our residential, small and medium-sized business and large enterprise customers across Canada.

Our Bell Wireline segment provides data, including Internet access and Internet protocol television, local telephone, long distance, as well as other communications services and products to our residential, small and medium-sized business and large enterprise customers primarily in Ontario, Québec, the Atlantic provinces and Manitoba, while satellite TV service and connectivity to business customers are available nationally across Canada. 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 Media segment provides conventional, specialty and pay TV, digital media, radio broadcasting services and out-of-home advertising services to customers nationally across Canada.

SEGMENTED INFORMATION

FOR THE YEAR ENDED DECEMBER 31, 2017	NOTE	BELL WIRELESS		BELL WIRELINE		BELL MEDIA		INTER-SEGMENT ELIMINATIONS		BCE
Operating revenues
External customers		7,838		12,205		2,676		–		22,719
Inter-segment		45		210		428		(683	)	–
Total operating revenues		7,883		12,415		3,104		(683	)	22,719
Operating costs	5	(4,607	)	(7,229	)	(2,388	)	683		(13,541	)
Segment profit (1)		3,276		5,186		716		–		9,178
Severance, acquisition and other costs	6	(18	)	(150	)	(22	)	–		(190	)
Depreciation and amortization	13, 14	(603	)	(3,102	)	(145	)	–		(3,850	)
Finance costs
Interest expense	7									(955	)
Interest on post-employment benefit obligations	22									(72	)
Other expense	8									(102	)
Income taxes	9									(1,039	)
Net earnings										2,970
Goodwill	17	3,032		4,497		2,899		–		10,428
Indefinite-life intangible assets	14	3,891		1,692		2,645		–		8,228
Capital expenditures		731		3,174		129		–		4,034

(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.

BCE Inc.   2017 ANNUAL REPORT   133

Notes to consolidated financial statements

FOR THE YEAR ENDED DECEMBER 31, 2016	NOTE	BELL WIRELESS		BELL WIRELINE		BELL MEDIA		INTER-SEGMENT ELIMINATIONS		BCE
Operating revenues
External customers		7,117		11,917		2,685		–		21,719
Inter-segment		42		187		396		(625	)	–
Total operating revenues		7,159		12,104		3,081		(625	)	21,719
Operating costs	5	(4,156	)	(7,062	)	(2,338	)	625		(12,931	)
Segment profit (1)		3,003		5,042		743		–		8,788
Severance, acquisition and other costs	6	(6	)	(130	)	1		–		(135	)
Depreciation and amortization	13, 14	(555	)	(2,816	)	(137	)	–		(3,508	)
Finance costs
Interest expense	7									(888	)
Interest on post-employment benefit obligations	22									(81	)
Other income	8									21
Income taxes	9									(1,110	)
Net earnings										3,087
Goodwill	17	2,304		3,831		2,823		–		8,958
Indefinite-life intangible assets	14	3,663		1,640		2,640		–		7,943
Capital expenditures		733		2,936		102		–		3,771

(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.

REVENUES BY SERVICES AND PRODUCTS

FOR THE YEAR ENDED DECEMBER 31	2017	2016
Services
Wireless	7,308	6,602
Data	7,146	6,791
Local and access	3,161	3,089
Long distance	639	741
Media	2,676	2,685
Other services	213	182
Total services	21,143	20,090
Products
Wireless	530	515
Data	519	559
Equipment and other	527	555
Total products	1,576	1,629
Total operating revenues	22,719	21,719

134   BCE Inc.   2017 ANNUAL REPORT
	Notes to consolidated financial statements

Note 5 Operating costs

FOR THE YEAR ENDED DECEMBER 31	NOTE	2017		2016
Labour costs
Wages, salaries and related taxes and benefits		(4,158	)	(4,016	)
Post-employment benefit plans service cost (net of capitalized amounts)	22	(242	)	(224	)
Other labour costs (1)		(1,056	)	(1,036	)
Less:
Capitalized labour		1,043		967
Total labour costs		(4,413	)	(4,309	)
Cost of revenues (2)		(7,056	)	(6,705	)
Other operating costs (3)		(2,072	)	(1,917	)
Total operating costs		(13,541	)	(12,931	)

(1)	Other labour costs include contractor and outsourcing costs.
(2)	Cost of revenues includes costs of wireless devices and other equipment sold, network and content costs, and payments to other carriers.
(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.

Research and development expenses of $119 million and $147 million are included in operating costs for 2017 and 2016, respectively.

Note 6 Severance, acquisition and other costs

FOR THE YEAR ENDED DECEMBER 31	2017		2016
Severance	(79	)	(87	)
Acquisition and other	(111	)	(48	)
Total severance, acquisition and other costs	(190	)	(135	)

SEVERANCE COSTS

Severance costs consist of charges related to involuntary and voluntary employee terminations.

ACQUISITION AND OTHER COSTS

Acquisition and other costs consist of transaction costs, such as legal and financial advisory fees, related to completed or potential acquisitions, employee severance costs related to the purchase of a business, the costs to integrate acquired companies into our operations and litigation costs, when they are significant. Acquisition costs also include a loss on transfer of spectrum licences relating to the MTS acquisition in 2017 and severance and integration costs relating to the privatization of Bell Aliant Inc.

Note 7 Interest expense

FOR THE YEAR ENDED DECEMBER 31	2017		2016
Interest expense on long-term debt	(898	)	(852	)
Interest expense on other debt	(101	)	(86	)
Capitalized interest	44		50
Total interest expense	(955	)	(888	)

Interest expense on long-term debt includes interest on finance leases of $145 million and $153 million for 2017 and 2016, respectively.

Capitalized interest was calculated using an average rate of 3.81% and 3.95% for 2017 and 2016, respectively, which represents the weighted average interest rate on our outstanding long-term debt.

BCE Inc.   2017 ANNUAL REPORT   135

Notes to consolidated financial statements

Note 8 Other (expense) income

FOR THE YEAR ENDED DECEMBER 31	NOTE	2017		2016
Net mark-to-market gains on derivatives used as economic hedges		88		67
Impairment of assets	13, 14	(82	)	(9	)
Losses on retirements and disposals of property, plant and equipment and intangible assets		(47	)	(28	)
Equity losses from investments in associates and joint ventures	15
Loss on investment		(22	)	(57	)
Operations		(9	)	(32	)
Early debt redemption costs	20	(20	)	(11	)
(Losses) gains on investments		(5	)	58
Other		(5	)	33
Total other (expense) income		(102	)	21

IMPAIRMENT OF ASSETS

In 2017, we recorded impairment charges of $82 million, of which $70 million was allocated to indefinite-life intangible assets, and $12 million to finite-life intangible assets. The impairment charges relate to our music TV channels and two small market radio station CGUs within our Bell Media segment. These impairments were the result of revenue and profitability declines from lower audience levels. The charges were determined by comparing the carrying value of the CGUs to their fair value less costs of disposal. We estimated the fair value of the CGUs using both discounted cash flows and market-based valuation models, which include five-year cash flow projections derived from business plans reviewed by senior management for the period of January 1, 2018 to December 31, 2022, using a discount rate of 8.5% and a perpetuity growth rate of nil, as well as market multiple data from public companies and market transactions. The carrying value of these CGUs was $67 million at December 31, 2017.

EQUITY LOSSES FROM INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

In 2017 and 2016, we recorded a loss on investment of $20 million and $11 million, respectively, related to equity losses on our share of an obligation to repurchase at fair value the minority interest in one of BCE’s joint ventures. The obligation is marked to market each reporting period and the gain or loss on investment is recorded as equity gains or losses from investments in associates and joint ventures.

In 2016, we also recorded a loss on investment of $46 million related to BCE’s share of the loss recorded by one of our equity investments on the sale of a portion of its operations.

(LOSSES) GAINS ON INVESTMENTS

In 2016, BCE recorded gains on investments of $58 million which included a gain related to one of our equity investments of $34 million, as well as a gain on investment of $12 million due to the remeasurement of BCE’s previously held equity interest in Q9 to its fair value. See Note 3, Business acquisitions and dispositions for additional details.

136   BCE Inc.   2017 ANNUAL REPORT
	Notes to consolidated financial statements

Note 9 Income taxes

The following table shows the significant components of income taxes deducted from net earnings.

FOR THE YEAR ENDED DECEMBER 31	2017		2016
Current taxes
Current taxes	(758	)	(850	)
Uncertain tax positions	(9	)	(14	)
Change in estimate relating to prior periods	40		14
Other	–		(1	)
Deferred taxes
Deferred taxes relating to the origination and reversal of temporary differences	(41	)	(299	)
Change in estimate relating to prior periods	11		32
Recognition and utilization of loss carryforwards	(304	)	(1	)
Effect of change in provincial corporate tax rate	(3	)	4
Resolution of uncertain tax positions	25		5
Total income taxes	(1,039	)	(1,110	)

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 27.1% for 2017 and 2016.

FOR THE YEAR ENDED DECEMBER 31	2017		2016
Net earnings	2,970		3,087
Add back income taxes	1,039		1,110
Earnings before income taxes	4,009		4,197
Applicable statutory tax rate	27.1	%	27.1	%
Income taxes computed at applicable statutory rates	(1,086	)	(1,137	)
Non-taxable portion of (losses) gains on investments	(1	)	11
Uncertain tax positions	16		(9	)
Effect of change in provincial corporate tax rate	(3	)	4
Change in estimate relating to prior periods	51		46
Non-taxable portion of equity losses	(10	)	(23	)
Other	(6	)	(2	)
Total income taxes	(1,039	)	(1,110	)
Average effective tax rate	25.9	%	26.4	%

The following table shows aggregate current and deferred taxes relating to items recognized outside the income statements.

FOR THE YEAR ENDED DECEMBER 31	2017		2016
	OTHER COMPREHENSIVE LOSS	DEFICIT	OTHER COMPREHENSIVE LOSS		DEFICIT
Current taxes	10	9	127		11
Deferred taxes	103	2	(32	)	6
Total income tax recovery	113	11	95		17

BCE Inc.   2017 ANNUAL REPORT   137

Notes to consolidated financial statements

The following table shows deferred taxes resulting from temporary differences between the carrying amounts of assets and liabilities recognized in the statements of financial position and their corresponding tax basis, as well as tax loss carryforwards.

NET DEFERRED TAX LIABILITY	NOTE	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		CRTC TANGIBLE BENEFITS		OTHER		TOTAL
January 1, 2016		12		520		(1,619	)	(968	)	(6	)	61		265		(1,735	)
Income statement		(1	)	(28	)	(61	)	(152	)	(3	)	(17	)	3		(259	)
Business acquisitions		10		–		–		(79	)	–		–		(6	)	(75	)
Other comprehensive income		–		(38	)	–		–		–		–		6		(32	)
Deficit		–		–		–		–		–		–		6		6
Other		–		–		–		–		–		–		(8	)	(8	)
December 31, 2016		21		454		(1,680	)	(1,199	)	(9	)	44		266		(2,103	)
Income statement		(304	)	(31	)	(8	)	12		7		(14	)	26		(312	)
Business acquisitions	3	300		(11	)	(73	)	(223	)	(5	)	–		24		12
Other comprehensive income		–		82		–		–		–		–		21		103
Deficit		–		–		–		–		–		–		2		2
Other		–		–		–		(3	)	–		–		(2	)	(5	)
December 31, 2017		17		494		(1,761	)	(1,413	)	(7	)	30		337		(2,303	)

At December 31, 2017, BCE had $208 million of non-capital loss carryforwards. We:

• recognized a deferred tax asset of $17 million for $64 million of the non-capital loss carryforwards. These non-capital loss carryforwards expire in varying annual amounts from 2029 to 2037.
• did not recognize a deferred tax asset for $144 million of non-capital loss carryforwards. This balance expires in varying annual amounts from 2023 to 2037.

At December 31, 2017, BCE had $827 million of unrecognized capital loss carryforwards which can be carried forward indefinitely.

At December 31, 2016, BCE had $221 million of non-capital loss carryforwards. We:

• recognized a deferred tax asset of $21 million, of which $11 million related to Q9, for $77 million of the non-capital loss carryforwards. These non-capital loss carryforwards expire in varying annual amounts from 2029 to 2036.
• did not recognize a deferred tax asset for $144 million of non-capital loss carryforwards. This balance expires in varying annual amounts from 2023 to 2035.

At December 31, 2016, BCE had $765 million of unrecognized capital loss carryforwards which can be carried forward indefinitely.

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.

FOR THE YEAR ENDED DECEMBER 31	2017	2016
Net earnings attributable to common shareholders – basic	2,786	2,894
Dividends declared per common share (in dollars)	2.87	2.73
Weighted average number of common shares outstanding (in millions)
Weighted average number of common shares outstanding – basic	894.3	869.1
Assumed exercise of stock options (1)	0.6	1.2
Weighted average number of common shares outstanding – diluted (in millions)	894.9	870.3

(1) The calculation of the assumed exercise of stock options includes the effect of the average unrecognized future compensation cost of dilutive options. It excludes options for which the exercise price is higher than the average market value of a BCE common share. The number of excluded options was 3,031,125 in 2017 and 2,936,091 in 2016.

138   BCE Inc.   2017 ANNUAL REPORT
	Notes to consolidated financial statements

Note 11 Trade and other receivables

FOR THE YEAR ENDED DECEMBER 31	NOTE	2017		2016
Trade receivables (1)		3,138		2,967
Allowance for doubtful accounts	24	(55	)	(60	)
Allowance for revenue adjustments		(80	)	(85	)
Current tax receivable		31		35
Other accounts receivable		101		122
Total trade and other receivables		3,135		2,979

(1) The details of securitized trade receivables are set out in Note 19, Debt due within one year.

Note 12 Inventory

FOR THE YEAR ENDED DECEMBER 31	2017		2016
Finished goods	322		333
Work in progress	76		85
Provision	(18	)	(15	)
Total inventory	380		403

The total amount of inventory subsequently recognized as an expense in cost of revenues was $2,910 million and $2,689 million for 2017 and 2016, respectively.

Note 13 Property, plant and equipment

FOR THE YEAR ENDED DECEMBER 31, 2017	NETWORK INFRASTRUCTURE AND EQUIPMENT		LAND AND BUILDINGS		ASSETS UNDER CONSTRUCTION		TOTAL(1)
COST
January 1, 2017	58,680		5,572		1,374		65,626
Additions	2,492		70		1,587		4,149
Acquisition through business combinations	653		264		76		993
Transfers	775		77		(1,263	)	(411	)
Retirements and disposals	(1,105	)	(22	)	–		(1,127	)
December 31, 2017	61,495		5,961		1,774		69,230
ACCUMULATED DEPRECIATION
January 1, 2017	40,233		3,047		–		43,280
Depreciation	2,816		221		–		3,037
Retirements and disposals	(1,054	)	(19	)	–		(1,073	)
Other	(39	)	(8	)	–		(47	)
December 31, 2017	41,956		3,241		–		45,197
NET CARRYING AMOUNT
January 1, 2017	18,447		2,525		1,374		22,346
December 31, 2017	19,539		2,720		1,774		24,033

(1) Includes assets under finance leases.

BCE Inc.   2017 ANNUAL REPORT   139

Notes to consolidated financial statements

FOR THE YEAR ENDED DECEMBER 31, 2016	NOTE	NETWORK INFRASTRUCTURE AND EQUIPMENT		LAND AND BUILDINGS		ASSETS UNDER CONSTRUCTION		TOTAL(1)
COST
January 1, 2016		57,233		5,174		1,287		63,694
Additions		2,361		120		1,415		3,896
Acquisition through business combinations		32		282		1		315
Transfers		692		35		(1,325	)	(598	)
Retirements and disposals		(1,637	)	(39	)	(4	)	(1,680	)
Impairment losses recognized in earnings	8	(1	)	–		–		(1	)
December 31, 2016		58,680		5,572		1,374		65,626
ACCUMULATED DEPRECIATION
January 1, 2016		39,183		2,881		–		42,064
Depreciation		2,672		205		–		2,877
Retirements and disposals		(1,591	)	(35	)	–		(1,626	)
Other		(31	)	(4	)	–		(35	)
December 31, 2016		40,233		3,047		–		43,280
NET CARRYING AMOUNT
January 1, 2016		18,050		2,293		1,287		21,630
December 31, 2016		18,447		2,525		1,374		22,346

(1) Includes assets under finance leases.

FINANCE LEASES

BCE’s significant finance leases are for satellites and office premises. The office leases have a typical lease term of 22 years. The leases for satellites, used to provide programming to our Bell TV customers, have a term of 15 years.

The following table shows additions to and the net carrying amount of assets under finance leases.

	ADDITIONS		NET CARRYING AMOUNT
FOR THE YEAR ENDED DECEMBER 31	2017	2016	2017	2016
Network infrastructure and equipment	334	375	1,435	1,580
Land and buildings	2	72	467	506
Total	336	447	1,902	2,086

The following table provides a reconciliation of our minimum future lease payments to the present value of our finance lease obligations.

AT DECEMBER 31, 2017	NOTE	2018		2019		2020		2021		2022		THERE- AFTER		TOTAL
Minimum future lease payments	24	572		501		326		278		248		883		2,808
Less:
Future finance costs		(127	)	(111	)	(96	)	(80	)	(65	)	(157	)	(636	)
Present value of future lease obligations		445		390		230		198		183		726		2,172

140   BCE Inc.   2017 ANNUAL REPORT
	Notes to consolidated financial statements

Note 14 Intangible assets

FOR THE YEAR ENDED DECEMBER 31, 2017	NOTE	FINITE-LIFE										INDEFINITE-LIFE
		SOFTWARE		CUSTOMER RELATION- SHIPS		PROGRAM AND FEATURE FILM RIGHTS		OTHER		TOTAL		BRANDS	SPECTRUM AND OTHER LICENCES	BROADCAST LICENCES		TOTAL		TOTAL INTANGIBLE ASSETS
COST
January 1, 2017		7,861		1,159		682		350		10,052		2,333	3,288	2,322		7,943		17,995
Additions		344		31		1,009		7		1,391		–	–	–		–		1,391
Acquired through business combinations		98		830		–		103		1,031		110	246	–		356		1,387
Transfers		407		–		–		–		407		–	–	(1	)	(1	)	406
Retirements and disposals		(21	)	(20	)	–		(55	)	(96	)	–	–	–		–		(96	)
Impairment losses recognized in earnings	8	–		–		–		(12	)	(12	)	–	–	(70	)	(70	)	(82	)
Amortization included in operating costs		–		–		(950	)	–		(950	)	–	–	–		–		(950	)
December 31, 2017		8,689		2,000		741		393		11,823		2,443	3,534	2,251		8,228		20,051
ACCUMULATED AMORTIZATION
January 1, 2017		5,316		513		–		168		5,997		–	–	–		–		5,997
Amortization		672		102		–		39		813		–	–	–		–		813
Retirements and disposals		(21	)	–		–		(52	)	(73	)	–	–	–		–		(73	)
Other		9		–		–		–		9		–	–	–		–		9
December 31, 2017		5,976		615		–		155		6,746		–	–	–		–		6,746
NET CARRYING AMOUNT
January 1, 2017		2,545		646		682		182		4,055		2,333	3,288	2,322		7,943		11,998
December 31, 2017		2,713		1,385		741		238		5,077		2,443	3,534	2,251		8,228		13,305

FOR THE YEAR ENDED DECEMBER 31, 2016	NOTE	FINITE-LIFE								INDEFINITE-LIFE
		SOFTWARE		CUSTOMER RELATION- SHIPS	PROGRAM AND FEATURE FILM RIGHTS		OTHER	TOTAL		BRANDS	SPECTRUM AND OTHER LICENCES	BROADCAST LICENCES		TOTAL		TOTAL INTANGIBLE ASSETS
COST
January 1, 2016		6,906		866	577		325	8,674		2,333	3,267	2,334		7,934		16,608
Additions		412		–	973		17	1,402		–	21	–		21		1,423
Acquired through business combinations		–		293	–		8	301		–	–	–		–		301
Transfers		615		–	–		–	615		–	–	–		–		615
Retirements and disposals		(72	)	–	–		–	(72	)	–	–	–		–		(72	)
Business dispositions		–		–	–		–	–		–	–	(4	)	(4	)	(4	)
Impairment losses recognized in earnings	8	–		–	–		–	–		–	–	(8	)	(8	)	(8	)
Amortization included in operating costs		–		–	(868	)	–	(868	)	–	–	–		–		(868	)
December 31, 2016		7,861		1,159	682		350	10,052		2,333	3,288	2,322		7,943		17,995
ACCUMULATED AMORTIZATION
January 1, 2016		4,824		466	–		142	5,432		–	–	–		–		5,432
Amortization		558		47	–		26	631		–	–	–		–		631
Retirements and disposals		(69	)	–	–		–	(69	)	–	–	–		–		(69	)
Other		3		–	–		–	3		–	–	–		–		3
December 31, 2016		5,316		513	–		168	5,997		–	–	–		–		5,997
NET CARRYING AMOUNT
January 1, 2016		2,082		400	577		183	3,242		2,333	3,267	2,334		7,934		11,176
December 31, 2016		2,545		646	682		182	4,055		2,333	3,288	2,322		7,943		11,998

BCE Inc.   2017 ANNUAL REPORT   141

Notes to consolidated financial statements

Note 15 Investments in associates and joint ventures

The following table provides summarized financial information in respect to BCE’s associates and joint ventures. For a list of our associates and joint ventures please see Note 29, Related party transactions.

FOR THE YEAR ENDED DECEMBER 31	NOTE	2017		2016
Assets		3,796		3,856
Liabilities		(2,155	)	(2,119	)
Total net assets		1,641		1,737
BCE’s share of net assets		814		852
Revenues		1,863		2,511
Expenses		(1,924	)	(2,720	)
Total net losses		(61	)	(209	)
BCE’s share of net losses	8	(31	)	(89	)

Note 16 Other non-current assets

FOR THE YEAR ENDED DECEMBER 31	NOTE	2017	2016
Net assets of post-employment benefit plans	22	262	403
Investments (1)		106	88
AFS publicly-traded and privately-held investments	24	103	103
Long-term notes and other receivables		101	63
Derivative assets	24	51	126
Other		277	227
Total other non-current assets		900	1,010

(1) These amounts have been pledged as security related to obligations for certain employee benefits and are not available for general use.

Note 17 Goodwill

The following table provides details about the changes in the carrying amounts of goodwill for the years ended December 31, 2017 and 2016. BCE’s groups of CGUs correspond to our reporting segments.

	BELL WIRELESS	BELL WIRELINE	BELL MEDIA	BCE
Balance at January 1, 2016	2,303	3,491	2,583	8,377
Acquisitions and other	1	340	240	581
Balance at December 31, 2016	2,304	3,831	2,823	8,958
Acquisitions and other	728	666	76	1,470
Balance at December 31, 2017	3,032	4,497	2,899	10,428

142   BCE Inc.   2017 ANNUAL REPORT
	Notes to consolidated financial statements

IMPAIRMENT TESTING

As described in Note 2, Significant accounting policies, goodwill is tested annually for impairment by comparing the carrying value of a CGU or group of CGUs to the recoverable amount, where the recoverable amount is the higher of fair value less costs of disposal or value in use.

VALUE IN USE

The value in use for a CGU or group of CGUs is determined by discounting five-year cash flow projections derived from business plans reviewed by senior management. The projections reflect management’s expectations of revenue, segment profit, capital expenditures, working capital and operating cash flows, based on past experience and future expectations of operating performance.

Cash flows beyond the five-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 flow projections and are derived from the weighted average cost of capital for each CGU or group of CGUs.

The following table shows the key assumptions used to estimate the recoverable amounts of the groups of CGUs.

GROUPS OF CGUs	ASSUMPTIONS USED
	PERPETUITY GROWTH RATE	DISCOUNT RATE
Bell Wireless	0.8%	9.1%
Bell Wireline	1.0%	6.0%
Bell Media	1.0%	8.5%

We believe that any reasonable possible change in the key assumptions on which the estimate of recoverable amounts of the Bell Wireless or Bell Wireline groups of CGUs is based would not cause their carrying amounts to exceed their recoverable amounts.

For the Bell Media group of CGUs, a decrease of (0.3%) in the perpetuity growth rate or an increase of 0.2% in the discount rate, would have resulted in its recoverable amount being equal to its carrying value.

Note 18 Trade payables and other liabilities

FOR THE YEAR ENDED DECEMBER 31	NOTE	2017	2016
Trade payables and accruals		2,441	2,319
Deferred revenues		884	819
Compensation payable		560	531
Taxes payable		150	137
Maple Leaf Sports and Entertainment Ltd. (MLSE) financial liability (1)	24	135	135
Derivative liabilities	24	96	18
CRTC tangible benefits obligation	24	38	51
Provisions	21	55	39
Severance and other costs payable		29	30
CRTC deferral account obligation	24	28	32
Other current liabilities		207	215
Total trade payables and other liabilities		4,623	4,326

(1) Represents BCE’s obligation to repurchase the BCE Master Trust Fund’s (Master Trust) 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recorded in Other (expense) income in the income statements.

BCE Inc.   2017 ANNUAL REPORT   143

Notes to consolidated financial statements

Note 19 Debt due within one year

FOR THE YEAR ENDED DECEMBER 31	NOTE	WEIGHTED AVERAGE INTEREST RATE	2017	2016
Notes payable (1)	24	1.16%	3,151	2,649
Loans secured by trade receivables	24	2.11%	921	931
Long-term debt due within one year (2)		4.38%	1,106	835
Unsecured committed term credit facility (3)			–	479
Net unamortized discount			–	(1	)
Unamortized debt issuance costs			–	(6	)
Total long-term debt due within one year	20		1,106	1,307
Total debt due within one year			5,178	4,887

(1)	Includes commercial paper of $2,484 million in U.S. dollars ($3,116 million in Canadian dollars) and $1,945 million in U.S. dollars ($2,612 million in Canadian dollars) as at December 31, 2017 and 2016, respectively, which were issued under our U.S. commercial paper program and have been hedged for foreign currency fluctuations through forward currency contracts. See Note 24, Financial and capital management for additional details.
(2)	Included in long-term debt due within one year is the current portion of finance leases of $445 million and $435 million as at December 31, 2017 and December 31, 2016, respectively.
(3)	In 2017, Bell Canada repaid $357 million in U.S. dollars ($480 million in Canadian dollars) representing all of the borrowings outstanding under its unsecured committed term credit facility. Accordingly, this credit facility was closed and the cross currency basis swap which was used to hedge the U.S. currency exposure under such credit facility was settled. See Note 24, Financial and capital management for additional details.

SECURITIZED TRADE RECEIVABLES

Our securitized trade receivables programs are recorded as floating rate revolving loans secured by certain trade receivables and expire on July 1, 2018 and November 1, 2020.

The following table provides further details on our securitized trade receivables programs.

FOR THE YEAR ENDED DECEMBER 31	2017		2016
Average interest rate throughout the year	1.74	%	1.51	%
Securitized trade receivables	1,867		1,904

We continue to service these trade receivables. The buyers’ interest in the collection of these trade receivables ranks ahead of our interests, which means that we are exposed to certain risks of default on the amounts securitized.

We have provided various credit enhancements in the form of overcollateralization and subordination of our retained interests.

The buyers will reinvest the amounts collected by buying additional interests in our trade receivables until the securitized trade receivables agreements expire or are terminated. The buyers and their investors have no further claim on our other assets if customers do not pay the amounts owed.

CREDIT FACILITIES

Bell Canada may issue notes under its Canadian and U.S. commercial paper programs up to the maximum aggregate principal amount of $2.5 billion in either Canadian or U.S. currency provided that at no time shall such maximum amount of notes exceed $3.5 billion in Canadian currency which equals the aggregate amount available under Bell Canada’s supporting revolving and expansion credit facilities as at December 31, 2017. The total amount of the committed revolving and expansion credit facilities may be drawn at any time.

The table below is a summary of our total bank credit facilities at December 31, 2017.

	TOTAL AVAILABLE	DRAWN	LETTERS OF CREDIT	COMMERCIAL PAPER OUTSTANDING	NET AVAILABLE
Committed credit facilities
Unsecured revolving credit and expansion facilities (1)(2)	3,500	–	–	3,116	384
Other	134	–	106	–	28
Total committed credit facilities	3,634	–	106	3,116	412
Total non-committed credit facilities	1,829	–	1,148	–	681
Total committed and non-committed credit facilities	5,463	–	1,254	3,116	1,093

(1)	Bell Canada’s $2.5 billion revolving credit facility expires in November 2022 and its $1 billion expansion credit facility expires in November 2020.
(2)	As of December 31, 2017, Bell Canada’s outstanding commercial paper included $2,484 million in U.S. dollars ($3,116 million in Canadian dollars). All of Bell Canada’s commercial paper outstanding is included in debt due within one year.

144   BCE Inc.   2017 ANNUAL REPORT
	Notes to consolidated financial statements

RESTRICTIONS

Some of our credit agreements:

• require us to meet specific financial 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 under such credit agreements.

Note 20 Long-term debt

FOR THE YEAR ENDED DECEMBER 31	NOTE	WEIGHTED AVERAGE INTEREST RATE	MATURITY	2017		2016
Debt securities
1997 trust indenture		3.86%	2018–2047	14,950		13,600
1976 trust indenture		9.54%	2021–2054	1,100		1,100
2011 trust indenture (1)		4.28%	2018–2024	425		–
2001 trust indenture (1)		5.63%	2019	200		–
Subordinated debentures		8.21%	2026–2031	275		275
Finance leases	13	6.64%	2018–2047	2,172		2,260
Unsecured committed term credit facility (2)	19			–		479
Other				195		188
Total debt				19,317		17,902
Net unamortized premium				50		18
Unamortized debt issuance costs				(46	)	(41	)
Less:
Amount due within one year	19			(1,106	)	(1,307	)
Total long-term debt				18,215		16,572

(1)

As part of the acquisition of MTS, on March 17, 2017, Bell Canada assumed all of MTS’ debt issued under its 2001 and 2011 trust indentures.

(2)

In 2017, Bell Canada repaid $357 million in U.S. dollars ($480 million in Canadian dollars) representing all of the borrowings outstanding under its unsecured committed term credit facility. Accordingly, this credit facility was closed and the cross currency basis swap which was used to hedge the U.S. currency exposure under such credit facility was settled. See Note 24, Financial and capital management for additional details.

Bell Canada’s debt securities have been issued in Canadian dollars and bear a fixed interest rate.

RESTRICTIONS

Some of our debt agreements:

• impose covenants and new issue tests
• require us to make an offer to repurchase certain series of debt securities upon the occurrence of a change of control event as defined in the relevant debt agreements

We are in compliance with all conditions and restrictions under such debt agreements.

All outstanding debt securities are issued under trust indentures and are unsecured. All debt securities are issued in series and certain series are redeemable at Bell Canada’s option prior to maturity at the prices, times and conditions specified for each series.

BCE Inc.   2017 ANNUAL REPORT   145

Notes to consolidated financial statements

2017

On October 30, 2017, Bell Canada redeemed, prior to maturity, its 4.40% Series M-22 medium-term note (MTN) debentures, having an outstanding principal amount of $1 billion, which were due on March 16, 2018. We incurred an $11 million charge for early debt redemption costs which was recorded in Other (expense) income in the income statement.

On October 9, 2017, Bell Canada redeemed, prior to maturity, its 4.88% Series M-36 debentures, having an outstanding principal amount of $300 million, which were due on April 26, 2018. We incurred a $5 million charge for early debt redemption costs which was recorded in Other (expense) income in the income statement.

On September 29, 2017, Bell Canada issued 3.00% Series M-40 MTN debentures (Series M-40 debentures) under its 1997 trust indenture, with a principal amount of $700 million, which mature on October 3, 2022. The Series M-40 debentures were issued as part of an existing series of MTN debentures. In addition, on the same date, Bell Canada issued 3.60% Series M-46 MTN debentures under its 1997 trust indenture, with a principal amount of $800 million, which mature on September 29, 2027.

On May 12, 2017, Bell Canada redeemed, prior to maturity, its 4.37% Series M-35 debentures, having an outstanding principal amount of $350 million which were due on September 13, 2017. We incurred a $4 million charge for early debt redemption costs which was recorded in Other (expense) income in the income statement.

On February 27, 2017, Bell Canada issued 2.70% Series M-44 MTN debentures under its 1997 trust indenture, with a principal amount of $1 billion, which mature on February 27, 2024. In addition, on the same date, Bell Canada issued 4.45% Series M-45 MTN debentures under its 1997 trust indenture, with a principal amount of $500 million, which mature on February 27, 2047.

Subsequent to year end, on March 7, 2018, we announced the issuance of 3.35% Series M-47 MTN debentures under Bell Canada’s 1997 trust indenture, with a principal amount of $500 million, which mature on March 12, 2025. The net proceeds of the offering are intended to be used to redeem, prior to maturity, Bell Canada’s 5.52% Series M-33 debentures having an outstanding principal amount of $300 million, which are due on February 26, 2019, and for the repayment of other short-term debt.

2016

On September 16, 2016, Bell Canada redeemed, prior to maturity, its 5.00% Series M-18 MTN debentures, having an outstanding principal amount of $700 million which were due on February 15, 2017. The interest rate swap which was used to hedge the interest rate exposure was also settled in 2016. See Note 24, Financial and capital management for additional details.

On August 12, 2016, Bell Canada issued 2.00% Series M-42 MTN debentures under its 1997 trust indenture, with a principal amount of $850 million, which mature on October 1, 2021. In addition, on the same date, Bell Canada issued 2.90% Series M-43 MTN debentures under its 1997 trust indenture, with a principal amount of $650 million, which mature on August 12, 2026.

On March 31, 2016, Bell Canada redeemed, prior to maturity, its 5.41% Series M-32 debentures, having an outstanding principal amount of $500 million which were due on September 26, 2016. We incurred an $11 million charge for the early debt redemption costs which was recorded in Other (expense) income in the income statement.

On February 29, 2016, Bell Canada issued 3.55% Series M-41 MTN debentures under its 1997 trust indenture, with a principal amount of $750 million, which mature on March 2, 2026.

On January 11, 2016, Bell Canada redeemed, prior to maturity, its 4.64% Series M-19 MTN debentures, having an outstanding principal amount of $200 million which were due on February 22, 2016, as well as its 3.65% Series M-23 MTN debentures, having an outstanding principal amount of $500 million which were due on May 19, 2016.

Note 21 Provisions

FOR THE YEAR ENDED DECEMBER 31	NOTE	ASSET RETIREMENT OBLIGATIONS (AROs)		OTHER(1)		TOTAL
January 1, 2017		175		137		312
Additions		14		46		60
Usage		(2	)	(30	)	(32	)
Reversals		(18	)	(12	)	(30	)
Acquired through business combinations		1		17		18
December 31, 2017		170		158		328
Current	18	11		44		55
Non-current	23	159		114		273
December 31, 2017		170		158		328

(1) Other includes environmental, legal, regulatory and vacant space provisions.

AROs reflect management’s best estimates of expected future costs to restore current leased premises to their original condition prior to lease inception. Cash outflows associated with our ARO liabilities are generally expected to occur at the restoration dates of the assets to which they relate, which are long-term in nature. The timing and extent of restoration work that will be ultimately required for these sites is uncertain.

146   BCE Inc.   2017 ANNUAL REPORT
	Notes to consolidated financial statements

Note 22 Post-employment benefit plans

POST-EMPLOYMENT BENEFIT PLANS COST

We provide pension and other benefits 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 prescribes 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 plans to a mismatch between investment growth and obligation growth.

The longevity risk is managed using a longevity swap, which reduces the exposure of the DB plans to an increase in life expectancy.

COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS SERVICE COST

FOR THE YEAR ENDED DECEMBER 31	2017		2016
DB pension	(208	)	(203	)
DC pension	(102	)	(100	)
OPEBs	(6	)	(7	)
Plan amendment gain on OPEBs and DB pension	16		27
Less:
Capitalized benefit plans cost	58		59
Total post-employment benefit plans service cost included in operating costs	(242	)	(224	)
Other costs recognized in severance, acquisition and other costs	(10	)	5
Total post-employment benefit plans service cost	(252	)	(219	)

COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS FINANCING COST

FOR THE YEAR ENDED DECEMBER 31	2017		2016
DB pension	(18	)	(24	)
OPEBs	(54	)	(57	)
Total interest on post-employment benefit obligations	(72	)	(81	)

The statements of comprehensive income include the following amounts before income taxes.

	2017		2016
Cumulative losses recognized directly in equity, January 1	(2,646	)	(2,384	)
Actuarial losses in other comprehensive income (1)	(313	)	(264	)
(Increase) decrease in the effect of the asset limit (2)	(25	)	2
Cumulative losses recognized directly in equity, December 31	(2,984	)	(2,646	)

(1)	The cumulative actuarial losses recognized in the statements of comprehensive income are $3,217 million in 2017.
(2)	The cumulative decrease in the effect of the asset limit recognized in the statements of comprehensive income is $233 million in 2017.

BCE Inc.   2017 ANNUAL REPORT   147

Notes to consolidated financial statements

COMPONENTS OF POST-EMPLOYMENT BENEFIT (OBLIGATIONS) ASSETS

The following table shows the change in post-employment benefit obligations and the fair value of plan assets.

	DB PENSION PLANS				OPEB PLANS				TOTAL
	2017		2016		2017		2016		2017		2016
Post-employment benefit obligations, January 1	(20,853	)	(20,675	)	(1,684	)	(1,705	)	(22,537	)	(22,380	)
Current service cost	(208	)	(203	)	(6	)	(7	)	(214	)	(210	)
Interest on obligations	(896	)	(852	)	(65	)	(68	)	(961	)	(920	)
Actuarial (losses) gains (1)	(1,193	)	(311	)	(28	)	12		(1,221	)	(299	)
Net curtailment (losses) gains	(4	)	27		16		5		12		32
Loss on plan transfer	(6	)	–		–		–		(6	)	–
Benefit payments	1,320		1,169		81		79		1,401		1,248
Employee contributions	(10	)	(5	)	–		–		(10	)	(5	)
Acquisition of MTS	(2,677	)	–		(5	)	–		(2,682	)	–
Plan transfer	122		–		–		–		122		–
Other	1		(3	)	38		–		39		(3	)
Post-employment benefit obligations, December 31	(24,404	)	(20,853	)	(1,653	)	(1,684	)	(26,057	)	(22,537	)
Fair value of plan assets, January 1	20,563		20,244		280		266		20,843		20,510
Expected return on plan assets (2)	878		828		11		11		889		839
Actuarial gains (1)	896		29		12		6		908		35
Benefit payments	(1,320	)	(1,169	)	(81	)	(79	)	(1,401	)	(1,248	)
Employer contributions	305		626		77		76		382		702
Employee contributions	10		5		–		–		10		5
Acquisition of MTS	2,735		–		–		–		2,735		–
Plan transfer	(122	)	–		–		–		(122	)	–
Fair value of plan assets, December 31	23,945		20,563		299		280		24,244		20,843
Plan deficit	(459	)	(290	)	(1,354	)	(1,404	)	(1,813	)	(1,694	)
Effect of asset limit	(33	)	(8	)	–		–		(33	)	(8	)
Post-employment benefit liability, December 31	(492	)	(298	)	(1,354	)	(1,404	)	(1,846	)	(1,702	)
Post-employment benefit assets included in other non-current assets	262		403		–		–		262		403
Post-employment benefit obligations	(754	)	(701	)	(1,354	)	(1,404	)	(2,108	)	(2,105	)

(1)	Actuarial (losses) gains include experience gains of $911 million in 2017 and $157 million in 2016.
(2)	The actual return on plan assets was $1,797 million or 8.2% in 2017 and $874 million or 4.7% in 2016.

On January 15, 2016, MTS completed the sale of its wholly-owned subsidiaries Allstream Inc., Allstream Fibre U.S., and Delphi Solutions Corp. (collectively, Allstream), to Zayo Group Holdings Inc. As part of the sale agreement, MTS retained Allstream’s two existing DB pension plans including the benefit obligations for retirees and other former employees. On October 31, 2017, we completed the transfer of assets and liabilities related to pre-closing service obligations for Allstream’s active employees from the existing Allstream DB pension plans to two new Zayo Canada Inc. pension plans.

FUNDED STATUS OF POST-EMPLOYMENT BENEFIT PLANS COST

The following table shows the funded status of our post-employment benefit obligations.

FOR THE YEAR ENDED DECEMBER 31	FUNDED				PARTIALLY FUNDED(1)				UNFUNDED(2)				TOTAL
	2017		2016		2017		2016		2017		2016		2017		2016
Present value of post-employment benefit obligations	(23,746	)	(20,249	)	(1,976	)	(1,995	)	(335	)	(293	)	(26,057	)	(22,537	)
Fair value of plan assets	23,894		20,520		350		323		–		–		24,244		20,843
Plan surplus (deficit)	148		271		(1,626	)	(1,672	)	(335	)	(293	)	(1,813	)	(1,694	)

(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 benefits are funded through life insurance contracts.
(2)	Our unfunded plans consist of OPEBs, which are pay-as-you-go.

148   BCE Inc.   2017 ANNUAL REPORT
	Notes to consolidated financial statements

SIGNIFICANT ASSUMPTIONS

We used the following key assumptions to measure the post-employment benefit obligations and the net benefit plans cost for the DB pension plans and OPEB plans. These assumptions are long-term, which is consistent with the nature of post-employment benefit plans.

	DB PENSION PLANS AND OPEB PLANS
	2017		2016
At December 31
Post-employment benefit obligations
Discount rate	3.6	%	4.0	%
Rate of compensation increase	2.25	%	2.25	%
Cost of living indexation rate (1)	1.6	%	1.6	%
Life expectancy at age 65 (years)	23.2		23.1
For the year ended December 31
Net post-employment benefit plans cost
Discount rate	4.2	%	4.3	%
Rate of compensation increase	2.25	%	2.5	%
Cost of living indexation rate (1)	1.6	%	1.6	%
Life expectancy at age 65 (years)	23.1		23.0

(1) Cost of living indexation rate is only applicable to DB pension plans.

The weighted average duration of the post-employment benefit obligation is 15 years.

We assumed the following trend rates in healthcare costs:

• an annual increase in the cost of medication of 8.0% for 2017 decreasing to 4.5% over 20 years
• an annual increase in the cost of covered dental benefits of 4.0%
• an annual increase in the cost of covered hospital benefits of 3.3%
• an annual increase in the cost of other covered healthcare benefits of 3.0%

Assumed trend rates in healthcare costs have a significant 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	7	(5	)
Post-employment benefit obligations	133	(115	)

SENSITIVITY ANALYSIS

The following table shows a sensitivity analysis of key assumptions used to measure the net post-employment benefit obligations and the net post-employment benefit plans cost for our DB pension plans and OPEB plans.

			IMPACT ON NET POST-EMPLOYMENT BENEFIT PLANS COST FOR 2017 – INCREASE/(DECREASE)				IMPACT ON POST-EMPLOYMENT BENEFIT OBLIGATIONS AT DECEMBER 31, 2017 – INCREASE/(DECREASE)
	CHANGE IN ASSUMPTION		INCREASE IN ASSUMPTION		DECREASE IN ASSUMPTION		INCREASE IN ASSUMPTION		DECREASE IN ASSUMPTION
Discount rate	0.5	%	(70	)	62		(1,636	)	1,746
Life expectancy at age 65	1 year		33		(31	)	834		(808	)

POST-EMPLOYMENT BENEFIT PLAN ASSETS

The investment strategy for the post-employment benefit plan assets is to maintain a diversified portfolio of assets invested in a prudent manner to maintain the security of funds.

The following table shows the target allocations for 2017 and the allocation of our post-employment benefit plan assets at December 31, 2017 and 2016.

ASSET CATEGORY	WEIGHTED AVERAGE TARGET ALLOCATION	TOTAL PLAN ASSETS FAIR VALUE AT DECEMBER 31 (%)
	2017	2017	2016
Equity securities	20%–35%	22%	22%
Debt securities	55%–80%	65%	68%
Alternative investments	0%–25%	13%	10%
Total		100%	100%

BCE Inc.   2017 ANNUAL REPORT   149

Notes to consolidated financial statements

The following table shows the fair value of the DB pension plan assets at the end of the year for each category.

FOR THE YEAR ENDED DECEMBER 31	2017	2016
Observable markets data
Equity securities
Canadian	1,045	901
Foreign	4,349	3,682
Debt securities
Canadian	13,126	12,469
Foreign	1,890	1,068
Money market	491	387
Non-observable markets inputs
Alternative investments
Private equities	1,484	1,164
Hedge funds	965	726
Real estate	484	55
Other	111	111
Total	23,945	20,563

Equity securities included approximately $13 million of BCE common shares, or 0.05% of total plan assets, at December 31, 2017 and approximately $17 million of BCE common shares, or 0.08% of total plan assets, at December 31, 2016.

Debt securities included approximately $11 million of Bell Canada debentures, or 0.05% of total plan assets, at December 31, 2017 and approximately $15 million of Bell Canada debentures, or 0.07% of total plan assets, at December 31, 2016.

Alternative investments included the pension plan’s investment in MLSE of $135 million, or 0.56% of total plan assets, at December 31, 2017 and $135 million, or 0.66% of total plan assets at December 31, 2016.

The Bell Canada pension plan has an investment arrangement which hedges part of its exposure to potential increases in longevity, which covers approximately $5 billion of post-employment benefit obligations.

The fair value of the arrangement is included within other alternative investments. As a hedging arrangement of the pension plan, the transaction requires no cash contributions from BCE.

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 reflect actuarial assumptions about future investment returns, salary projections and future service benefits. 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 benefit plans in the future, which could have a negative effect on our liquidity and financial 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 beneficiaries under OPEB plans.

FOR THE YEAR ENDED DECEMBER 31	DB PLANS(1)				DC PLANS				OPEB PLANS
	2017		2016		2017		2016		2017		2016
Contributions	(305	)	(626	)	(108	)	(99	)	(77	)	(76	)

(1) Includes voluntary contributions of $100 million in 2017 and $400 million in 2016.

We expect to contribute approximately $210 million to our DB pension plans in 2018, subject to actuarial valuations being completed. We expect to pay approximately $80 million to beneficiaries under OPEB plans and to contribute approximately $110 million to the DC pension plans in 2018.

150   BCE Inc.   2017 ANNUAL REPORT
	Notes to consolidated financial statements

Note 23 Other non-current liabilities

FOR THE YEAR ENDED DECEMBER 31	NOTE	2017	2016
Long-term disability benefits obligation		322	302
Provisions	21	273	273
Deferred revenue on long-term contracts		174	105
CRTC deferral account obligation	24	96	104
Future tax liabilities		81	73
CRTC tangible benefits obligation	24	73	115
Other		204	305
Total other non-current liabilities		1,223	1,277

Note 24 Financial and capital management

FINANCIAL MANAGEMENT

Management’s objectives are to protect BCE and its subsidiaries on a consolidated basis against material economic exposures and variability of results from various financial 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 2017 and/or 2016:

• foreign currency forward contracts and options that manage the foreign currency risk of certain anticipated purchases and sales
• cross currency basis swaps that hedge foreign currency risk on a portion of our debt due within one year
• interest rate swaps that hedge interest rate risk on a portion of our long-term debt
• interest rate locks on future debt issuances and dividend rate resets on preferred shares
• forward contracts on BCE common shares that mitigate the cash flow exposure related to share-based payment plans

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 future cash flows and discount rates, all of which reflect varying degrees of risk. Income taxes and other expenses that would be incurred on disposition of financial instruments are not reflected 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, dividends payable, trade payables and accruals, compensation payable, severance and other costs payable, interest payable, notes payable and loans secured by trade receivables approximate fair value as they are short-term.

The following table provides the fair value details of financial instruments measured at amortized cost in the statements of financial position.

	CLASSIFICATION	FAIR VALUE METHODOLOGY	NOTE	DECEMBER 31, 2017		DECEMBER 31, 2016
				CARRYING VALUE	FAIR VALUE	CARRYING VALUE	FAIR VALUE
CRTC tangible benefits obligation	Trade payables and other liabilities and non-current liabilities	Present value of estimated future cash flows discounted using observable market interest rates	18, 23	111	110	166	169
CRTC deferral account obligation	Trade payables and other liabilities and non-current liabilities	Present value of estimated future cash flows discounted using observable market interest rates	18, 23	124	128	136	145
Debt securities, finance leases and other debt	Debt due within one year and long-term debt	Quoted market price of debt or present value of future cash flows discounted using observable market interest rates	19, 20	19,321	21,298	17,879	20,093

BCE Inc.   2017 ANNUAL REPORT   151

Notes to consolidated financial statements

The following table provides the fair value details of financial instruments measured at fair value in the statements of financial position.

	CLASSIFICATION	NOTE	CARRYING VALUE OF ASSET (LIABILITY) AT DECEMBER 31		FAIR VALUE AT DECEMBER 31
					QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)	OBSERVABLE MARKET DATA (LEVEL 2)(1)		NON-OBSERVABLE MARKET INPUTS (LEVEL 3)(2)
2017
AFS publicly-traded and privately-held investments	Other non-current assets	16	103		1	–		102
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities		(48	)	–	(48	)	–
MLSE financial liability (3)	Trade payables and other liabilities	18	(135	)	–	–		(135	)
Other	Other non-current assets and liabilities		60		–	106		(46	)

2016
AFS publicly-traded and privately-held investments	Other non-current assets	16	103		1	–	102
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities		166		–	166	–
MLSE financial liability (3)	Trade payables and other liabilities	18	(135	)	–	–	(135	)
Other	Other non-current assets and liabilities		35		–	88	(53	)

(1)	Observable market data such as equity prices, interest rates, swap rate curves and foreign currency exchange rates.
(2)	Non-observable market inputs such as discounted cash flows and earnings multiples. A reasonable change in our assumptions would not result in a significant increase (decrease) to our level 3 financial instruments.
(3)	Represents BCE’s obligation to repurchase the Master Trust’s 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recorded in Other (expense) income in the income statements. The option is exercisable in 2017 and thereafter.

CREDIT RISK

We are exposed to credit risk from operating activities and certain financing activities, the maximum exposure of which is represented by the carrying amounts reported in the statements of financial 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, 2017 and 2016. 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.

	NOTE	2017		2016
Balance, January 1		(60	)	(64	)
Additions		(99	)	(102	)
Usage		104		106
Balance, December 31	11	(55	)	(60	)

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.

AT DECEMBER 31	2017	2016
Trade receivables not past due	2,257	2,187
Trade receivables past due and not impaired
Under 60 days	491	286
60 to 120 days	279	359
Over 120 days	56	75
Trade receivables, net of allowance for doubtful accounts	3,083	2,907

152   BCE Inc.   2017 ANNUAL REPORT
	Notes to consolidated financial statements

LIQUIDITY RISK

Our cash and cash equivalents, cash flows from operations and possible capital markets financing are expected to be sufficient to fund our operations and fulfill our obligations as they become due. Should our cash requirements exceed the above sources of cash, we would expect to cover such a shortfall by drawing on existing committed bank facilities and new ones, to the extent available.

The following table is a maturity analysis for recognized financial liabilities at December 31, 2017 for each of the next five years and thereafter.

AT DECEMBER 31, 2017	NOTE	2018	2019	2020	2021	2022	THERE- AFTER	TOTAL
Long-term debt	20	661	1,541	1,424	2,247	1,714	9,558	17,145
Notes payable	19	3,151	–	–	–	–	–	3,151
Minimum future lease payments under finance leases	13	572	501	326	278	248	883	2,808
Loan secured by trade receivables	19	921	–	–	–	–	–	921
Interest payable on long-term debt, notes payable and loan secured by trade receivables		792	688	628	586	525	5,197	8,416
MLSE financial liability	18	135	–	–	–	–	–	135
Total		6,232	2,730	2,378	3,111	2,487	15,638	32,576

We are also exposed to liquidity risk for financial liabilities due within one year as shown in the statements of financial position.

MARKET RISK

CURRENCY EXPOSURES

We use forward contracts, options and cross currency basis swaps to manage foreign currency risk related to anticipated purchases and sales and certain foreign currency debt. In 2017, we settled a cross currency basis swap with a notional amount of $357 million in U.S. dollars ($480 million in Canadian dollars) used to hedge borrowings under a credit facility. Refer to Note 19, Debt due within one year for additional details.

A 10% depreciation (appreciation) in the value of the Canadian dollar relative to the U.S. dollar would result in a gain (loss) of $2 million recognized in net earnings at December 31, 2017 and a gain (loss) of $133 million recognized in Other comprehensive loss at December 31, 2017, with all other variables held constant.

The following table provides further details on our outstanding foreign currency forward contracts and cross currency basis swaps as at December 31, 2017.

TYPE OF HEDGE	BUY CURRENCY	AMOUNT TO RECEIVE	SELL CURRENCY	AMOUNT TO PAY	MATURITY	HEDGED ITEM
Cash flow	USD	2,492	CAD	3,180	2018	Commercial paper
Cash flow	USD	872	CAD	1,134	2018	Anticipated transactions
Cash flow	CAD	97	USD	75	2018–2019	Anticipated transactions
Cash flow	USD	576	CAD	721	2019	Anticipated transactions
Cash flow	USD	76	CAD	96	2020–2021	Anticipated transactions
Economic	USD	36	CAD	46	2018	Anticipated transactions

BCE Inc.   2017 ANNUAL REPORT   153

Notes to consolidated financial statements

INTEREST RATE EXPOSURES

We use interest rate swaps to manage the mix of fixed and floating interest rates on our debt. We also use interest rate locks to hedge the interest rates on future debt issuances and to economically hedge dividend rate resets on preferred shares.

In 2016, we settled interest rate locks which hedged long-term debt and dividend rate resets on preferred shares with a notional amount of $500 million and $350 million, respectively.

In 2016, we redeemed long-term debt prior to maturity, and settled an interest rate swap with a notional amount of $700 million used to hedge the interest rate exposure on the redeemed debt. In 2016, we also recognized a loss of $15 million on an interest rate swap used as a fair value hedge of long-term debt and an offsetting gain of $16 million on the corresponding long-term debt in Other (expense) income in the income statements.

A 1% increase (decrease) in interest rates would result in a decrease (increase) of $29 million in net earnings at December 31, 2017.

EQUITY PRICE EXPOSURES

We use equity forward contracts on BCE’s common shares to economically hedge the cash flow exposure related to the settlement of share-based payment plans. See Note 26, Share-based payments for details on our share-based payment arrangements. The fair value of our equity forward contracts at December 31, 2017 was $45 million (2016 – $111 million).

A 5% increase (decrease) in the market price of BCE’s common shares at December 31, 2017 would result in a gain (loss) of $38 million recognized in net earnings for 2017, with all other variables held constant.

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 definition of capital includes equity attributable to BCE shareholders, debt, and cash and cash equivalents.

The key ratios that we use to monitor and manage our capital structure are a net debt leverage ratio⁽¹⁾ and an adjusted EBITDA to net interest expense ratio⁽²⁾. Our net debt leverage ratio target range is 1.75 to 2.25 times adjusted EBITDA and our adjusted EBITDA to net interest expense ratio target is greater than 7.5 times. We monitor our capital structure and make adjustments, including to our dividend policy, as required. At December 31, 2017, we had exceeded the limit of our internal net debt leverage ratio target range by 0.45. This excess over the limit of our internal ratio target range does not create risk to our investment-grade credit rating.

These ratios do not have any standardized meaning under IFRS. Therefore, they are unlikely to be comparable to similar measures presented by other issuers. We use, and believe that certain investors and analysts use, our net debt leverage ratio and adjusted EBITDA to net interest expense ratio as measures of financial leverage and health of the company.

The following table provides a summary of our key ratios.

AT DECEMBER 31	2017	2016
Net debt leverage ratio	2.70	2.57
Adjusted EBITDA to net interest expense ratio	9.12	9.31

On February 7, 2018, the board of directors of BCE approved an increase of 5.2% in the annual dividend on BCE’s common shares, from $2.87 to $3.02 per common share. In addition, the board of directors of BCE declared a quarterly dividend of $0.7550 per common share, payable on April 15, 2018 to shareholders of record at March 15, 2018.

On February 8, 2018, BCE announced a normal course issuer bid (NCIB). See Note 25, Share capital for additional details.

On February 1, 2017, the board of directors of BCE approved an increase of 5.1% in the annual dividend on BCE’s common shares, from $2.73 to $2.87 per common share.

(1)	Our net debt leverage ratio represents net debt divided by adjusted EBITDA. We define 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 our statements of financial position. Adjusted EBITDA is defined as operating revenues less operating costs as shown in our income statements.
(2)	Our adjusted EBITDA to net interest expense ratio represents adjusted EBITDA divided by net interest expense. Adjusted EBITDA is defined as operating revenues less operating costs as shown in our income statements. Net interest expense is net interest expense as shown in our statements of cash flows and 50% of declared preferred share dividends as shown in our income statements.

154   BCE Inc.   2017 ANNUAL REPORT
	Notes to consolidated financial statements

Note 25 Share capital

PREFERRED SHARES

BCE’s articles of amalgamation, as amended, 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 BCE’s 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 provides a summary of the principal terms of BCE’s First Preferred Shares as at December 31, 2017. There were no Second Preferred Shares issued and outstanding at December 31, 2017. BCE’s articles of amalgamation, as amended, describe the terms and conditions of these shares in detail.

SERIES	ANNUAL DIVIDEND RATE	CONVERTIBLE INTO	CONVERSION DATE	REDEMPTION DATE	REDEMPTION PRICE	NUMBER OF SHARES		STATED CAPITAL
						AUTHORIZED	ISSUED AND OUTSTANDING	DEC. 31, 2017	DEC. 31, 2016
Q	floating	Series R	December 1, 2025		$25.50	8,000,000	–	–	–
R (1)	4.13%	Series Q	December 1, 2020	December 1, 2020	$25.00	8,000,000	8,000,000	200	200
S	floating	Series T	November 1, 2021	At any time	$25.50	8,000,000	3,513,448	88	88
T (1)	3.019%	Series S	November 1, 2021	November 1, 2021	$25.00	8,000,000	4,486,552	112	112
Y	floating	Series Z	December 1, 2022	At any time	$25.50	10,000,000	8,081,491	202	219
Z (1)	3.904%	Series Y	December 1, 2022	December 1, 2022	$25.00	10,000,000	1,918,509	48	31
AA (1)	3.61%	Series AB	September 1, 2022	September 1, 2022	$25.00	20,000,000	11,398,396	291	259
AB	floating	Series AA	September 1, 2022	At any time	$25.50	20,000,000	8,601,604	219	251
AC (1)	3.55%	Series AD	March 1, 2018	March 1, 2018	$25.00	20,000,000	5,069,935	129	129
AD	floating	Series AC	March 1, 2018	At any time	$25.50	20,000,000	14,930,065	381	381
AE	floating	Series AF	February 1, 2020	At any time	$25.50	24,000,000	9,292,133	232	232
AF (1)	3.11%	Series AE	February 1, 2020	February 1, 2020	$25.00	24,000,000	6,707,867	168	168
AG (1)	2.80%	Series AH	May 1, 2021	May 1, 2021	$25.00	22,000,000	4,985,351	125	125
AH	floating	Series AG	May 1, 2021	At any time	$25.50	22,000,000	9,014,649	225	225
AI (1)	2.75%	Series AJ	August 1, 2021	August 1, 2021	$25.00	22,000,000	5,949,884	149	149
AJ	floating	Series AI	August 1, 2021	At any time	$25.50	22,000,000	8,050,116	201	201
AK (1)	2.954%	Series AL	December 31, 2021	December 31, 2021	$25.00	25,000,000	22,745,921	569	569
AL (2)	floating	Series AK	December 31, 2021	At any time		25,000,000	2,254,079	56	56
AM (1)	2.764%	Series AN	March 31, 2021	March 31, 2021	$25.00	30,000,000	9,546,615	218	218
AN (2)	floating	Series AM	March 31, 2021	At any time		30,000,000	1,953,385	45	45
AO (1)	4.26%	Series AP	March 31, 2022	March 31, 2022	$25.00	30,000,000	4,600,000	118	118
AP (3)	floating	Series AO	March 31, 2027			30,000,000	–	–	–
AQ (1)	4.25%	Series AR	September 30, 2018	September 30, 2018	$25.00	30,000,000	9,200,000	228	228
AR (3)	floating	Series AQ	September 30, 2023			30,000,000	–	–	–
								4,004	4,004

(1)	BCE may redeem each of these series of First Preferred Shares on the applicable redemption date and every five years after that date.
(2)	BCE may redeem Series AL and AN First Preferred Shares at $25.00 per share on December 31, 2021 and March 31, 2021, respectively, and every five years thereafter (each, a Series conversion date). Alternatively, BCE may redeem Series AL or AN First Preferred Shares at $25.50 per share on any date which is not a Series conversion date for such series of First Preferred Shares.
(3)	If Series AP or AR First Preferred Shares are issued on March 31, 2022 and September 30, 2018, respectively, BCE may redeem such shares at $25.00 per share on March 31, 2027 and September 30, 2023, respectively, and every five years thereafter (each, a Series conversion date). Alternatively, BCE may redeem Series AP or AR First Preferred Shares at $25.50 per share on any date, in the case of Series AP First Preferred Shares, and on any date after September 30, 2018, in the case of Series AR First Preferred Shares, which is not a Series conversion date for each relevant series.

BCE Inc.   2017 ANNUAL REPORT   155

Notes to consolidated financial statements

VOTING RIGHTS

All of the issued and outstanding First Preferred Shares at December 31, 2017 are non-voting, except under special circumstances, when the holders are entitled to one vote per share.

PRIORITY AND ENTITLEMENT TO DIVIDENDS

The First Preferred Shares of all series rank at parity with each other and in priority to all other shares of BCE with respect to payment of dividends and with respect to distribution of assets in the event of liquidation, dissolution or winding up of BCE.

Holders of Series R, T, Z, AA, AC, AF, AG, AI, AK, AM, AO and AQ First Preferred Shares are entitled to fixed cumulative quarterly dividends. The dividend rate on these shares is reset every five years, as set out in BCE’s articles of amalgamation, as amended.

Holders of Series S, Y, AB, AD, AE, AH and AJ First Preferred Shares are entitled to floating adjustable cumulative monthly dividends. The floating dividend rate on these shares is calculated every month, as set out in BCE’s articles of amalgamation, as amended.

Holders of Series AL and AN First Preferred Shares are entitled to floating cumulative quarterly dividends. The floating dividend rate on these shares is calculated every quarter, as set out in BCE’s articles of amalgamation, as amended.

Dividends on all series of First Preferred Shares are paid as and when declared by the board of directors of BCE.

CONVERSION FEATURES

All of the issued and outstanding First Preferred Shares at December 31, 2017 are convertible at the holder’s option into another associated series of First Preferred Shares on a one-for-one basis according to the terms set out in BCE’s articles of amalgamation, as amended.

CONVERSION AND DIVIDEND RATE RESET OF FIRST PREFERRED SHARES

On December 1, 2017, 585,184 of BCE’s 1,227,532 fixed-rate Cumulative Redeemable First Preferred Shares, Series Z (Series Z Preferred Shares) were converted, on a one-for-one basis, into floating-rate cumulative Redeemable First Preferred Shares, Series Y (Series Y Preferred Shares). In addition, on December 1, 2017, 1,276,161 of BCE’s 8,772,468 Series Y Preferred Shares were converted, on a one-for-one basis, into Series Z Preferred Shares.

On September 1, 2017, 965,769 of BCE’s 10,144,302 fixed-rate Cumulative Redeemable First Preferred Shares, Series AA (Series AA Preferred Shares) were converted, on a one-for-one basis, into floating rate Cumulative Redeemable First Preferred Shares, Series AB (Series AB Preferred Shares). In addition, on September 1, 2017, 2,219,863 of BCE’s 9,855,698 Series AB Preferred Shares were converted, on a one-for-one basis, into Series AA Preferred Shares.

Subsequent to year end, on March 1, 2018, 397,181 of BCE’s 5,069,935 fixed-rate Cumulative Redeemable First Preferred Shares, Series AC (Series AC Preferred Shares) were converted, on a one-for-one basis, into floating rate Cumulative Redeemable First Preferred Shares, Series AD (Series AD Preferred Shares). In addition, on March 1, 2018, 5,356,937 of BCE’s 14,930,065 Series AD Preferred Shares were converted, on a one-for-one basis, into Series AC Preferred Shares.

The annual fixed dividend rate on BCE’s Series AC Preferred Shares was reset for the next five years, effective March 1, 2018, at 4.38% from 3.55%. The Series AD Preferred Shares continue to pay a monthly floating cash dividend.

COMMON SHARES AND CLASS B SHARES

BCE’s 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 December 31, 2017 and 2016.

The following table provides details about the outstanding common shares of BCE.

	NOTE	2017		2016
		NUMBER OF SHARES	STATED CAPITAL	NUMBER OF SHARES	STATED CAPITAL
Outstanding, January 1		870,706,332	18,370	865,614,188	18,100
Shares issued for the acquisition of MTS	3	27,642,714	1,594	–	–
Shares issued under employee stock option plan	26	2,555,863	122	2,236,891	104
Shares issued under dividend reinvestment plan		–	–	688,839	38
Shares issued under ESP		91,731	5	2,166,414	128
Outstanding, December 31		900,996,640	20,091	870,706,332	18,370

Subsequent to year end, on February 8, 2018, BCE announced its plan to repurchase and cancel up to 3.5 million common shares, subject to a maximum aggregate purchase price of $175 million over the twelvemonth period starting February 13, 2018 and ending no later than February 12, 2019 through a NCIB.

CONTRIBUTED SURPLUS

Contributed surplus in 2017 and 2016 includes premiums in excess of par value upon the issuance of BCE common shares and share-based compensation expense net of settlements.

156   BCE Inc.   2017 ANNUAL REPORT
	Notes to consolidated financial statements

Note 26 Share-based payments

The following share-based payment amounts are included in the income statements as operating costs.

FOR THE YEAR ENDED DECEMBER 31	2017		2016
ESP	(28	)	(29	)
RSUs/PSUs	(44	)	(49	)
Other (1)	(9	)	(12	)
Total share-based payments	(81	)	(90	)

(1) Includes DSP, DSUs and stock options.

DESCRIPTION OF THE PLANS

ESP

The ESP is designed to encourage employees of BCE and its participating 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 employee’s eligible annual earnings to the plan, up to a specified maximum. Dividends are credited to the participant’s account on each dividend payment date and are equivalent in value to the dividends paid on BCE common shares.

The BCE ESP allows employees to contribute up to 12% of their annual earnings with a maximum employer contribution of 2%.

Employer contributions to the BCE ESP plan and related dividends are subject to employees holding their shares for a 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, 2017, 5,591,566 common shares were authorized for issuance from treasury under the BCE ESP.

The following table summarizes the status of unvested employer contributions at December 31, 2017 and 2016.

NUMBER OF ESP SHARES	2017		2016
Unvested contributions, January 1	1,073,212		1,146,046
Contributions (1)	610,657		600,808
Dividends credited	49,299		49,988
Vested	(553,837	)	(586,309	)
Forfeited	(140,301	)	(137,321	)
Unvested contributions, December 31	1,039,030		1,073,212

(1) The weighted average fair value of the shares contributed was $60 and $59 in 2017 and 2016, respectively.

RSUs/PSUs

RSUs/PSUs are granted to executives and other eligible employees. The value of an RSU/PSU at the grant date is equal to the value of one BCE common share. Dividends in the form of additional RSUs/PSUs are credited to the participant’s account on each dividend payment date and are equivalent in value to the dividend paid on BCE common shares.

Executives and other eligible employees are granted a specific number of RSUs/PSUs for a given performance period based on their position and level of contribution. RSUs/PSUs 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.

BCE Inc.   2017 ANNUAL REPORT   157

Notes to consolidated financial statements

The following table summarizes outstanding RSUs/PSUs at December 31, 2017 and 2016.

NUMBER OF RSUs /PSUs	2017		2016
Outstanding, January 1	2,928,698		3,333,583
Granted (1)	879,626		874,888
Dividends credited	132,402		137,583
Settled	(1,096,403	)	(1,321,846	)
Forfeited	(103,931	)	(95,510	)
Outstanding, December 31	2,740,392		2,928,698
Vested, December 31 (2)	985,382		1,058,200

(1)	The weighted average fair value of the RSUs/PSUs granted was $58 in 2017 and 2016.
(2)	The RSUs/PSUs vested on December 31, 2017 were fully settled in February 2018 with BCE common shares and/or DSUs.

DSP

The value of a deferred share is equal to the value of one BCE common share. Dividends in the form of additional deferred shares are credited to the participant’s account on each dividend payment date and are equivalent in value to the dividend paid on BCE common shares. Deferred shares vest fully after three years of continuous employment from the date of grant. The liability related to the DSP is recorded in Trade payables and other liabilities in the statements of financial position and was $30 million and $37 million at December 31, 2017 and 2016, respectively.

DSUs

Eligible bonuses and RSUs/PSUs may be paid in the form of DSUs when executives or other eligible 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; thereafter, at least 50% of their compensation is paid in DSUs. There are no vesting requirements relating to DSUs. Dividends in the form of additional DSUs are credited to the participant’s 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, 2017 and 2016.

NUMBER OF DSUs	2017		2016
Outstanding, January 1	4,131,229		3,796,051
Issued (1)	69,742		87,665
Settlement of RSUs/PSUs	101,066		323,428
Dividends credited	203,442		183,852
Settled	(195,951	)	(259,767	)
Outstanding, December 31	4,309,528		4,131,229

(1) The weighted average fair value of the DSUs issued was $59 in 2017 and 2016.

STOCK OPTIONS

Under BCE’s 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 five consecutive trading days ending on the trading day immediately prior to the effective date of the grant

At December 31, 2017, 14,586,683 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.

158   BCE Inc.   2017 ANNUAL REPORT
	Notes to consolidated financial statements

The following table summarizes BCE’s outstanding stock options at December 31, 2017 and 2016.

	NOTE	2017			2016
		NUMBER OF OPTIONS		WEIGHTED AVERAGE EXERCISE PRICE ($)	NUMBER OF OPTIONS		WEIGHTED AVERAGE EXERCISE PRICE ($)
Outstanding, January 1		10,242,162		52	9,666,904		48
Granted		3,043,448		59	2,968,062		58
Exercised (1)	25	(2,555,863	)	45	(2,236,891	)	44
Forfeited		(239,498	)	58	(155,913	)	52
Outstanding, December 31		10,490,249		55	10,242,162		52
Exercisable, December 31		2,013,983		45	1,786,251		42

(1) The weighted average share price for options exercised was $60 and $59 in 2017 and 2016, respectively.

The following table provides additional information about BCE’s stock option plans at December 31, 2017.

	STOCK OPTIONS OUTSTANDING
RANGE OF EXERCISE PRICES	NUMBER	WEIGHTED AVERAGE REMAINING LIFE (YEARS)	WEIGHTED AVERAGE EXERCISE PRICE ($)
$30–$39	35,408	0.14	36
$40–$49	1,978,575	2.54	46
$50–$59	8,377,818	5.19	58
$60 & above	98,448	5.84	61
	10,490,249	4.68	55

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 specific to the share incentive plans, such as the vesting period. The following table shows the principal assumptions used in the valuation.

	2017
Weighted average fair value per option granted	$ 1.97
Weighted average share price	$ 58
Weighted average exercise price	$ 59
Dividend yield	5	%
Expected volatility	13	%
Risk-free interest rate	1	%
Expected life (years)	4

Expected volatilities are based on the historical volatility of BCE’s 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.

BCE Inc.   2017 ANNUAL REPORT   159

Notes to consolidated financial statements

Note 27 Additional cash flow information

The following table provides a reconciliation of changes in liabilities arising from financing activities.

	NOTE	DEBT DUE WITHIN ONE YEAR AND LONG-TERM DEBT		DERIVATIVE TO HEDGE FOREIGN CURRENCY ON DEBT(1)		DIVIDENDS PAYABLE		OTHER LIABILITIES		TOTAL
January 1, 2017		21,459		(31	)	617		–		22,045
Cash flows from (used in) financing activities
Increase in notes payable		452		(119	)	–		–		333
Issue of long-term debt		3,011		–		–		–		3,011
Repayments of long-term debt		(2,653	)	–		–		–		(2,653	)
Cash dividends paid on common and preferred shares		–		–		(2,639	)	–		(2,639	)
Cash dividends paid by subsidiaries to non-controlling interests	30	–		–		(34	)	–		(34	)
Other financing activities		(44	)	6		–		(22	)	(60	)
Total cash flows from (used in) financing activities excluding equity		766		(113	)	(2,673	)	(22	)	(2,042	)
Non-cash changes arising from
Finance lease additions		339		–		–		–		339
Dividends declared on common and preferred shares		–		–		2,692		–		2,692
Dividends declared by subsidiaries to non-controlling interests		–		–		45		–		45
Effect of changes in foreign exchange rates		(198	)	198		–		–		–
Business acquisitions	3	972		–		–		–		972
Other		55		–		(3	)	22		74
Total non-cash changes		1,168		198		2,734		22		4,122
December 31, 2017		23,393		54		678		–		24,125

(1) Included in Other current assets, Trade payables and other liabilities, Other non-current assets and Other non-current liabilities in the statements of financial position.

160   BCE Inc.   2017 ANNUAL REPORT
	Notes to consolidated financial statements

Note 28 Commitments and contingencies

COMMITMENTS

The following table is a summary of our contractual obligations at December 31, 2017 that are due in each of the next five years and thereafter.

	NOTE	2018	2019	2020	2021	2022	THERE- AFTER	TOTAL
Operating leases		312	264	225	175	119	341	1,436
Commitments for property, plant and equipment and intangible assets		1,039	808	614	516	372	808	4,157
Purchase obligations		865	664	550	498	429	903	3,909
Proposed acquisition of Séries+ and Historia specialty channels	3	200	–	–	–	–	–	200
Acquisition of AlarmForce(1)	3	182	–	–	–	–	–	182
Total		2,598	1,736	1,389	1,189	920	2,052	9,884

(1) This commitment was settled on January 5, 2018, upon completion of the acquisition of AlarmForce. See Note 3, Business acquisitions and dispositions for additional details.

BCE’s significant operating leases are for office premises, cellular tower sites, retail outlets and OOH advertising spaces with lease terms ranging from 1 to 50 years. These leases are non-cancellable. Rental expense relating to operating leases was $399 million in 2017 and $353 million in 2016.

Our commitments for property, plant and equipment and intangible assets include program and feature film rights and investments to expand and update our networks to meet customer demand.

Purchase obligations consist of contractual obligations under service and product contracts for operating expenditures and other purchase obligations.

CONTINGENCIES

In the ordinary course of business, we become involved in various claims and legal proceedings seeking monetary damages and other relief. In particular, because of the nature of our consumer-facing business, we are exposed to class actions pursuant to which substantial monetary damages may be claimed. Due to the inherent risks and uncertainties of the litigation process, we cannot predict the final outcome or timing of claims and legal proceedings. Subject to the foregoing, and based on information currently available and management’s assessment of the merits of the claims and legal proceedings pending at March 8, 2018, management believes that the ultimate resolution of these claims and legal proceedings is unlikely to have a material and negative effect on our financial statements. We believe that we have strong defences and we intend to vigorously defend our positions.

BCE Inc.   2017 ANNUAL REPORT   161

Notes to consolidated financial statements

Note 29 Related party transactions

SUBSIDIARIES

The following table shows BCE’s significant subsidiaries at December 31, 2017. 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 significant 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	2017	2016
Bell Canada	100%	100%
Bell Mobility	100%	100%
Bell Media	100%	100%

TRANSACTIONS WITH JOINT ARRANGEMENTS AND ASSOCIATES

During 2017 and 2016, BCE provided communication services and received programming content and other services in the normal course of business on an arm’s length basis to and from its joint arrangements and associates. Our joint arrangements and associates include MLSE, Glentel Inc., and Dome Productions Partnership. From time to time, BCE may be required to make capital contributions in its investments.

In 2017, BCE recognized revenues and incurred expenses with our joint arrangements and associates of $11 million (2016 – $16 million) and $177 million (2016 – $180 million), respectively.

BCE MASTER TRUST FUND

Bimcor Inc. (Bimcor), a wholly-owned subsidiary of Bell Canada, is the administrator of the Master Trust. Bimcor recognized management fees of $10 million from the Master Trust for 2017 and 2016. The details of BCE’s post-employment benefit plans are set out in Note 22, Post-employment benefit plans.

COMPENSATION OF KEY MANAGEMENT PERSONNEL AND BOARD OF DIRECTORS

The following table includes compensation of key management personnel and the board of directors for the years ended December 31, 2017 and 2016 included in our income statements. Key management personnel include the company’s Chief Executive Officer (CEO), Group President and the executives who report directly to them.

FOR THE YEAR ENDED DECEMBER 31	2017		2016
Wages, salaries, fees and related taxes and benefits	(23	)	(24	)
Post-employment benefit plans and OPEBs cost	(3	)	(4	)
Share-based compensation	(23	)	(27	)
Key management personnel and board of directors compensation expense	(49	)	(55	)

162   BCE Inc.   2017 ANNUAL REPORT
	Notes to consolidated financial statements

Note 30 Significant partly-owned subsidiaries

The following tables show summarized financial information for our subsidiaries with significant non-controlling interest (NCI).

SUMMARIZED STATEMENTS OF FINANCIAL POSITION

	CTV SPECIALTY(1)(2)
FOR THE YEAR ENDED DECEMBER 31	2017	2016
Current assets	328	293
Non-current assets	1,013	1,013
Total assets	1,341	1,306
Current liabilities	153	130
Non-current liabilities	184	195
Total liabilities	337	325
Total equity attributable to BCE shareholders	700	687
NCI	304	294

(1)	At December 31, 2017 and 2016, the ownership interest held by NCI in CTV Specialty Television Inc. (CTV Specialty) was 29.9%. CTV Specialty was incorporated and operated in Canada as at such dates.
(2)	CTV Specialty’s net assets at December 31, 2017 and 2016, include $6 million and $2 million, respectively, directly attributable to NCI.

SELECTED INCOME AND CASH FLOW INFORMATION

	CTV SPECIALTY(1)
FOR THE YEAR ENDED DECEMBER 31	2017	2016
Operating revenues	832	824
Net earnings	179	182
Net earnings attributable to NCI	56	56
Total comprehensive income	172	173
Total comprehensive income attributable to NCI	54	54
Cash dividends paid to NCI	34	46

(1) CTV Specialty’s net earnings and total comprehensive income include $3 million directly attributable to NCI for 2017 and 2016, respectively.

BCE Inc.   2017 ANNUAL REPORT   163

EX-99.3

Exhibit 99.3

Reports on internal controls

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

The management of BCE Inc. (BCE) is responsible for establishing and maintaining adequate internal control over financial reporting. Our internal control over financial reporting is a process designed under the supervision of the President and Chief Executive Officer and the Executive Vice-President and Chief Financial Officer and effected by the board of directors, management and other personnel of BCE, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

Due to its inherent limitations, internal control over financial reporting may not prevent or detect misstatements on a timely basis. Also, projections of any evaluation of the effectiveness of internal control over financial 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 Officer and the Executive Vice-President and Chief Financial Officer, the effectiveness of our internal control over financial reporting as at December 31, 2017, based on the criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

Management’s evaluation of and conclusion on the effectiveness of our internal control over financial reporting did not include an evaluation of the internal control over financial reporting of Manitoba Telecom Services Inc. (MTS), which we acquired on March 17, 2017. The contribution of the acquired MTS operations to our consolidated financial statements for the year ended December 31, 2017 was approximately 3% of consolidated revenues and 3% of consolidated net earnings.

Additionally, on December 31, 2017, the current assets and current liabilities of the acquired MTS operations represented approximately 2% and 4% of our consolidated current assets and current liabilities, respectively, and their non-current assets and non-current liabilities represented approximately 7% and 2% of our consolidated non-current assets and non-current liabilities.

Based on that evaluation, which excluded the internal control over financial reporting of MTS, the President and Chief Executive Officer and the Executive Vice-President and Chief Financial Officer concluded that our internal control over financial reporting was effective as at December 31, 2017. There were no material weaknesses that have been identified by BCE’s management in internal control over financial reporting as at December 31, 2017.

Our internal control over financial reporting as at December 31, 2017 has been audited by Deloitte LLP, Independent Registered Public Accounting Firm, who also audited our consolidated financial statements for the year ended December 31, 2017. Deloitte LLP issued an unqualified opinion on the effectiveness of our internal control over financial reporting as at December 31, 2017.

(signed) George A. Cope
President and Chief Executive Officer

(signed) Glen LeBlanc
Executive Vice-President and Chief Financial Officer

(signed) Thierry Chaumont
Senior Vice-President and Controller

March 8, 2018

112   BCE Inc.   2017 ANNUAL REPORT
	Reports on internal controls

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Directors of BCE Inc.

OPINION ON INTERNAL CONTROL OVER FINANCIAL REPORTING

We have audited the internal control over financial reporting of BCE Inc. and subsidiaries (the “Company”) as of December 31, 2017, based on criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control–Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB) and Canadian generally accepted auditing standards, the consolidated financial statements as of and for the year ended December 31, 2017, of the Company and our report dated March 8, 2018, expressed an unmodified/unqualified opinion on those financial statements.

As described in Management’s Report on Internal Control over Financial Reporting, management excluded from its assessment the internal control over financial reporting at Manitoba Telecom Services Inc. (MTS), which was acquired on March 17, 2017 and whose financial statements constitute 2% and 4% of current assets and liabilities, respectively, 7% and 2% of non-current assets and non-current liabilities, respectively, 3% of consolidated revenues and 3% of consolidated net earnings of the consolidated financial statement amounts as of and for the year ended December 31, 2017. Accordingly, our audit did not include the internal control over financial reporting at MTS.

BASIS FOR OPINION

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial 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.

DEFINITION AND LIMITATIONS OF INTERNAL CONTROL OVER FINANCIAL REPORTING

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial 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 company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Deloitte LLP¹
Chartered Professional Accountants

Montréal, Canada
March 8, 2018

1 CPA auditor, CA, public accountancy permit No. A124391

BCE Inc.   2017 ANNUAL REPORT   113

EX-99.4

Exhibit 99.4

Code of Business Conduct

What we do is who we are

Our Moral Compass

Policy Contact: corporate.secretariat@bell.ca

© Bell Canada 2017. All Rights Reserved.

Code of Business Conduct

What’s Inside

1	INTRODUCTION	1
	1.1 Scope: Who Does the Code Apply To?	1
	1.2 Objectives	1
	1.3 Reporting a Misconduct or Violation of the Code – The Business Conduct Help Line	1
	1.4 Responsibilities of Managers & Executives	2
	1.5 Penalties for Violations	2
	1.6 Annual Review and Sign Off	2
2	OUR PRINCIPLES OF ETHICAL CONDUCT	3
	2.1 Personal Integrity	3
	2.2 Conflicts of Interest	3
	2.3 Loans, Gifts and Entertainment	7
	2.4 Political Activities	8
	2.5 Improper Influence on the Conduct of Audits	8
	2.6 Trading in Securities	8
	2.7 Public Disclosure of Material Information	10
	2.8 Confidentiality of Customer and Employee Information	10
	2.9 Information Classification and Records Management	12
	2.10 Dealing with Customers and Suppliers	13
	2.11 Dealing with Competitors	14
	2.12 Safeguarding Bell Assets	16
	2.13 Social Media	19
	2.14 Work Environment	20
	2.15 Journalistic Independence	25
	2.16 Protecting the Environment	26
3	ROLES AND RESPONSIBILITIES	27
	3.1 Business Unit Responsibility	27
	3.2 Board of Directors, Corporate Governance Committee and Audit Committee	27
	3.3 Corporate Secretary’s Office	27
APPENDICES		28
	Supporting Procedures	28
	Attachments	28
POLICY OR PRACTICE DETAILS		33

Our goal:

To be recognized by customers as Canada’s leading communications company.

Our 6 strategic imperatives:

Accelerate wireless

Leverage wireline momentum

Invest in broadband networks and services

Expand media leadership

Improve customer service

Achieve a competitive cost structure

If you have any question regarding this Code of Business Conduct, please e-mail corporate.secretariat@bell.ca or contact the Business Conduct Help Line available at clearviewconnects.com on a 24/7 basis or by calling 1 866 298 2942 (toll free).

© Bell Canada 2017. All Rights Reserved.	Page  |  i
Code of Business Conduct

A Message from our President and Chief Executive Officer

As we work together to achieve Bell’s goal – to be recognized by customers as Canada’s leading communications company – everyone on the team has a responsibility to meet the highest standards of ethical conduct.

In over 135 years of serving Canadians, Bell has built a reputation for adhering to the most rigorous standards of business conduct. We value that reputation and understand the importance of earning it every day in interactions with our customers, shareholders, suppliers, the broader public and our fellow team members.

That is why we are all required to renew a personal commitment to reading and understanding the Bell Code of Conduct each year. The Code clearly explains the values and standards of behaviour expected from every team member in all aspects of our business.

Please take the time to read the Bell Code of Conduct, and to incorporate the principles into your work at Bell every day. Thank you for your support.

George Cope
President and Chief Executive Officer
BCE Inc. and Bell Canada

© Bell Canada 2017. All Rights Reserved.	Page  |  ii
Code of Business Conduct

1 INTRODUCTION

The Bell Canada Code of Business Conduct explains the fundamental values and standards of behaviour that are expected from us in all aspects of our business.

In our daily activities, we have a fundamental responsibility to address a broad spectrum of issues. These include: preventing conflicts of interest, protecting company assets, safeguarding privacy and confidentiality, treating customers, business partners, team members and competitors with respect and honesty, fostering a diverse, safe and healthy workplace and protecting the environment.

Acting responsibly is central to achieving sustainable business success and essential to the pursuit of our corporate goal: to be recognized by customers as Canada’s leading communications company.

The Code provides various rules and guidelines for ethical behaviour based on Bell values, as well as applicable laws and regulations.

These values and standards reinforce our commitment to the highest levels of customer service, a working environment in which performance is recognized and people are respected and sensitivity to the needs of the community that Bell serves.

1.1 Scope: Who Does the Code Apply To?

The Code applies to everyone at Bell, including all directors, executives and employees of BCE Inc., Bell Canada and their subsidiaries that are not public companies. Throughout the Code, we will refer to these companies as Bell.

1.2 Objectives

Collectively, we undertake to:

• perform our work duties and conduct our business relationships with integrity and in a dynamic, straightforward, honest and fair manner
• comply with laws that apply to us as well as with Bell policies and procedures
• avoid conflicts of interest
• foster a work environment based on mutual trust and respect and that encourages open communication
• maintain a safe, healthy and secure workplace
• protect the environment
• support a culture in which ethical conduct is recognized, valued and exemplified
• promptly report issues relating to the Code and potential violations, non-compliance with applicable laws, regulations or company policies or procedures and any other emergencies.

1.3 Reporting a Misconduct or Violation of the Code – The Business Conduct Help Line

Individual responsibility does not mean you are on your own when facing an ethical issue. Don’t be reluctant to ask any questions you might have on the Code or raise issues.

As part of Bell’s commitment to the highest standards of ethics, employees are encouraged to promptly report any actual or potential misconduct, Code or other company policy violations, malpractice, fraud, misappropriation of business property or any other illegal or unethical act or behaviour, including accounting, internal accounting controls or auditing matters by an employee of Bell or by any business unit of Bell.

Any submission made by an employee regarding an unethical behaviour will be treated on a confidential and anonymous basis, unless specifically permitted to be disclosed by the employee or unless required by law. Submissions will only be disclosed to those persons who have a need to know in order to properly carry out an investigation of the potential unethical behaviour.

Any employee who in good faith reports an unethical behaviour will be protected from threats of retaliation, discharge or other

© Bell Canada 2017. All Rights Reserved.	Page  |  1
Code of Business Conduct

types of sanctions that are directly related to the disclosure of such unethical behaviour.

No employee will be penalized for inquiring, in good faith, about apparently unethical behaviour or for obtaining guidance on how to handle suspected illegal acts or policy violations. Further, Bell will not allow retaliation for reports made in good faith.

An unethical behaviour may be reported to your immediate manager. If this won’t meet your needs, is inappropriate, does not provide the necessary level of confidentiality or if you otherwise prefer, you can contact our confidential and anonymous Business Conduct Help Line at clearviewconnects.com on a 24/7 basis or by calling 1 866 298 2942 (toll free). You may also contact the Chief Legal & Regulatory Officer and EVP, Corporate Development or the Chair of the Audit Committee.

You can also consult the Complaint Procedures for Accounting and Auditing Matters on the Corporate Policies & Ethics Program intranet site.

1.4 Responsibilities of Managers & Executives

We are all expected to perform our jobs with integrity and in a dynamic, straightforward, honest and fair manner. However, managers and executives have an enhanced role. This means:

• setting an example by complying with the Code and all Bell policies at all times
• ensuring that all employees have access to the Code (on-line or in paper format), that they know, understand and comply with its provisions and that they complete the annual review and sign off process
• complying with security policies and the associated directives, procedures and standards
• fostering an environment that encourages open communication and upholds sustainable development, health & safety, labour and ethics principles in every business decision and actions
• immediately reporting violations of the Code or breaches of Bell policies and taking prompt and decisive disciplinary action when it has been established that the Code has been violated.

1.5 Penalties for Violations

Disciplinary action up to and including dismissal will be taken should an employee, manager or executive:

• violate the Code or a Bell policy, disregard proper procedures or ask others to violate the Code or a Bell policy
• deliberately fail to promptly report a violation or withhold relevant information concerning a violation
• fail to cooperate in the investigation of a known or suspected violation or
• take action against an employee who reports a violation or breach of the Code or other policy.

1.6 Annual Review and Sign Off

To demonstrate our commitment to the shared values and standards described in the Code, all employees, managers, executives and members of the Board of Directors must certify annually that they have reviewed and follow the Code. A copy of these certifications can be found at Attachments 1A and 2A. All employees must also take the on-line course on the Code at least every two years.

© Bell Canada 2017. All Rights Reserved.	Page  |  2
Code of Business Conduct

2 OUR PRINCIPLES OF ETHICAL CONDUCT

2.1 Personal Integrity

Ethical behaviour is an essential part of our job and is a personal responsibility we all share. It means performing our job fully and competently. It also means being accountable for our behaviour and for supporting the values, principles and standards upon which our reputation rests.

Many aspects of our business are governed by laws and regulations and compliance with such laws and regulations is basic to ethical conduct. Bell and its directors, executives, managers and other employees are expected to comply with the laws, rules and regulations of all countries in which we operate, as well as the expectations and requirements of our various regulators. These laws include, but are not limited to, telecommunications laws, securities laws, laws prohibiting the corruption of government officials, in Canada and abroad, as well as lobbying, environmental, health and safety and employment legislation.

Ethical behaviour, however, goes beyond mere compliance with the law. It involves thinking through the possible impact of our decisions on all interested parties - customers, employees, unions, business partners, suppliers, investors, government as well as the communities and environment in which we live and work.

Although the Code lays out the fundamental principles of ethical and legal conduct, it cannot anticipate every ethical dilemma or situation we may encounter as we perform our jobs. This would be impossible given the rapid evolution of the communications industry.

Consequently, we may often find ourselves caught in a situation or facing an ethical problem not explicitly covered in the Code. In this case, we must rely on our internal sense of what is right – our moral compass – to guide us in making the right decision.

When faced with a difficult or unclear situation, it may help to ask questions such as:

• how would I feel if, rather than initiating this action, I was on the receiving end?
• how would my customer react if he/she knew I was breaking the rules or distorting the facts to make a sale?
• if I do this, how will I feel afterwards? Would I want my co-workers, friends or family to find out?
• if my actions became public, how would they be reported in the media?

Assuming personal responsibility for our actions means we can’t blame someone else for our behaviour. Conversely, no one - not even a manager - can force us to commit an illegal or unethical act that may damage Bell’s reputation, or our own.

We have a duty to report illegal acts or violations of the Code or Bell policies. Turning a blind eye to wrongdoing - in effect condoning such behaviour - is itself unethical. See section 1.3 for ways that are available to you to report unethical conducts.

Any breach of the Code or Bell policies or evidence of illegal behaviour will be taken very seriously. Depending on the nature and severity of the case, employees who breach the Code, violate Bell policy or commit an illegal act will face immediate discipline, up to and including dismissal, as well as possible civil or criminal prosecution.

2.2 Conflicts of Interest

As employees, managers and executives, our business loyalty rests in placing Bell’s interests – including those of its customers and shareholders – before our personal interests.

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Code of Business Conduct

A conflict of interest arises whenever we allow, or appear to allow, personal interests or relationships to impair our judgment and ability to make decisions with integrity and honesty. By thinking of ourselves first, we may act in a way that is damaging, or potentially damaging, to Bell. We may also harm our personal reputation.

We must not use our position to influence or bypass Bell procedures for personal gain nor for the benefit of our family, friends, colleagues or anyone else.

How Can I Tell If I Am In a Conflict of Interest?

If you are not sure about a particular situation obtain the guidance you need. Start by asking yourself the following questions:

• Am I following proper Bell procedures?
• Do I stand to potentially gain personally from my actions?
• Can my actions potentially result in a financial or other advantage for myself, a near relative (which would include a spouse, sibling, parent, child, or in-law) or friend?
• Am I uncomfortable discussing this with my manager or fellow employees?
• Would I act differently if a friend or near relative weren’t involved?

If you have any doubts about a possible conflict, raise the matter with your manager or contact the Business Conduct Help Line at www.clearviewconnects.com or by calling 1-866-298-2942 (toll free).

If there is an actual or potential conflict of interest, you must disclose it immediately to your leader and as part of the annual online review process.

2.2.1 Conflicts of Interest Relating to Family and Personal Relationships

Each of us has a variety of personal relationships involving family and friends and sometimes our work and personal lives intersect.

We must disclose this relationship if it compromises, or threatens to compromise, our ability to act in Bell’s best interest. Speak to your manager or contact the Business Conduct Help Line for further guidance. We should also be aware that bridging our personal and business lives may cause our competitors or suppliers – as well as colleagues within Bell – to believe we are in a conflict of interest. To avoid a conflict of interest, or prevent a situation from developing into a conflict of interest, you must inform your manager if, for example:

• you are considering hiring a near relative, friend or co-habitant
• you transact business on behalf of Bell with a near relative, friend or co-habitant
• you have been employed by a competitor within the last two years
• a near relative or co-habitant works for or has a financial interest in or is a major shareholder of a supplier or competitor.

If you are concerned that you may be in a conflict of interest, speak to your manager. You must also disclose the conflict at your next online annual review of the Code.

My partner has just become an executive sales manager for a company that services the computers in my department. Do I need to tell anyone about this?

• Yes. Someone could claim that Bell is giving your partner business because you are a Bell employee. You should notify your manager and make sure you are not involved in any decisions regarding your partner’s company. This relationship should be disclosed in your annual online review of the Code.

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2.2.2 Conflicts of Interest Relating to Supplier-Funded Incentive Programs

Supplier-funded incentive programs, often offered to sales employees by suppliers seeking to sell their products, may only be arranged through an authorized program administrator who does not work with the eligible employees.

It’s up to the program administrator to ensure there is no conflict between Bell’s marketing strategy and the supplier’s incentive program. For further information, please refer to the Incentive & Recognition Programs Guidelines on the Human Resources Policies intranet site.

2.2.3 Conflicts of Interest Arising from Outside Employment and Similar Activities

We all have a right to do what we want during our non-working hours. This could include holding another job in which we use the skills and experience acquired through our work at Bell. However, we must ensure that our outside employment or other activities do not conflict, or appear to conflict, with Bell’s business or with our ability to fulfill our duties as employees.

To avoid a conflict of interest, or even the appearance of such a conflict, you should discuss any planned outside business activities with your manager. As a general guideline, you may not:

• work for an organization that competes with Bell or operate a business or promote a third party’s line of products or services that compete with those offered by Bell
• use Bell’s time, materials and facilities in paid or unpaid work for other organizations (for example, to support a charitable community project), unless specifically authorized by senior management (CP4 or higher). Where such authorization has been obtained, as per the Bell Community Investment policy, no company products or services (such as wireline telecommunication services, Internet services, handsets, etc.) may be provided in-kind
• accept outside employment or engage in any activity that may prevent you from performing your job at Bell fully and competently
• contribute to or support any political group or political activity on behalf of Bell, unless specifically authorized by the appropriate Bell department responsible for government relations.

I am a Bell technician who installs circuitry for small and medium-sized business customers. With the growth of the Internet and other communications services, demand for my expertise is booming. Can I take advantage of this opportunity and start up an installation business on my own time?

• No. You cannot engage in any outside activity that might take business away from Bell or any of its subsidiaries. Furthermore, as an employee, you are expected to contribute your energy and ideas to your job as an installer for Bell.

As a customer service representative I happen to respond to my brother’s telephone call inquiring about a charge on his account for TV services. Can I respond to this call and make adjustments, if any, to his account?

• No. Employees are not allowed to access or make changes to the billing accounts of their families and friends, including accessing their own or invoicing themselves.

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2.2.4 Conflict of Interest Guidelines for Executives and External Directorships

In addition to the conflict of interest guidelines and procedures noted above, in respect to all persons who are executives (i.e. Vice-President and above), a conflict of interest may also arise:

• when there is an outside interest which materially encroaches on time or attention which should be devoted to Bell’s affairs or so affects the executive's energies as to prevent him/her from devoting his/her full abilities to the performance of duties
• where an executive or any of his/her near relatives, friends or cohabitants has a direct or indirect interest in or relationship with any outsider, such as a supplier (whether of goods or services), customer, agent or competitor of Bell or its subsidiary and associated corporations, or with a person in a position to influence the actions of an outsider, which is inherently unethical or which might be implied or construed to:
  • give rise to a possible personal gain or favour to the executive involved, or any of his/her near relatives, friends or cohabitants due to the executive's actual or potential power to influence dealings between Bell and the outsider
  • render the executive partial toward the outsider for personal reasons, or otherwise inhibit the impartiality of the executive's business judgement or his/her desire to serve only Bell’s best interests in the performance of his/her functions as an executive
  • place the executive or Bell in an equivocal, embarrassing or ethically questionable position in the eyes of the public or any external monitoring body
  • reflect unfavourably on the integrity of the executive or Bell.
• where an executive or any of his/her near relatives, friends or cohabitants makes use of any non-public information, such as information for internal use, or of a confidential nature, proprietary, insider, privileged or government classified nature or customer information, entrusted to or obtained by the executive in the conduct of Bell’s business to benefit himself/herself or any of his/her near relatives, by selling or making available such information to interests outside Bell, or uses the information in any other manner to further his/her interest(s), or the interest(s) of any of his/her near relatives
• where an executive or any of his/her near relatives, friends or cohabitants has any direct or indirect interest or relationship which is actually or potentially harmful or detrimental to Bell’s best interests.

Executives are required to disclose any actual or potential conflicts of interest by providing written notice to the Corporate Secretary at corporate.secretariat@bell.ca. The Corporate Secretary is responsible for administering the Code and the Conflict of Interest Guidelines. If the Corporate Secretary is unable to resolve an existing or potential conflict of interest with the person involved, the matter will be discussed with the Chief Legal & Regulatory Officer and EVP, Corporate Development.

External Directorships

As a general rule, executives are allowed to be appointed to the board of directors of a company other than a Bell company provided that such election:

• will not create conflicts of interest either for the executive or for any Bell company
• will contribute to the development of the executive or will benefit Bell either directly or indirectly
• will not be at the expense of the executive’s corporate responsibilities and will not impose an undue burden on the executive.

Provided the above criteria are met, before accepting an external directorship appointment, an executive shall, through his/her superior, seek and obtain clearance from the President and Chief Executive Officer. If appointed, the executive must then disclose such fact to the Corporate Secretary’s Office promptly.

Executives should however understand that the BCE group companies’ D&O Insurance policy will not be applicable unless the executive’s appointment is made at the request of Bell.

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2.3 Loans, Gifts and Entertainment

2.3.1 Loans from Bell

We do not accept, whether directly or indirectly, any loan or guarantee of obligations from Bell that are for our personal benefit.

2.3.2 Business Gifts & Entertainment

Do not solicit, accept or give gifts, gratuities, favours or unusual hospitality from or to suppliers or customers, which may compromise - or appear to compromise - our ability to make fair, objective, business decisions or may unfairly influence a business interaction.

Do not solicit or encourage gifts, hospitality, entertainment or any other thing for personal use.

Do not accept gifts having a monetary value; for example, gift certificates, cash, services, discounts or loans.

These guidelines do not change during traditional gift giving season.

We recognize, however, that building relationships with customers and suppliers is an integral part of doing business.

You may offer and accept reasonable hospitality in certain cases. You should consult your manager or contact the Business Conduct Help Line when in doubt about the appropriateness of a particular situation.

You may participate in unsolicited business entertainment depending on the function or services you perform for Bell and if the entertainment is clearly intended to facilitate business goals. If for example, tickets to a sporting or cultural event are offered, then the person offering the tickets should plan to attend the event as well.

You may sponsor events/activities for customers or potential customers where the purpose is to strengthen business relationships; however it is your responsibility to know and be sensitive to the customer’s own code of conduct on these issues. Solicitation of modest gifts or prizes for Bell sponsored events which provide clear benefits to the sponsor and/or charitable organization is permitted upon approval by your manager.

You may accept unsolicited, nominal value hospitality, gifts or mementos that are customary or business related.

You may accept business entertainment in the form of meals as long as it is modest, infrequent, and as far as possible on a reciprocal basis.

Factors which you and your manager should consider when assessing the proper course of action include:

• Is Bell potentially involved in a major procurement activity with the company offering the gift or entertainment?
• Would the gift or entertainment be considered appropriate or customary, taking into account the nature of the function or services you perform for Bell?
• Would it be perceived as insulting or damaging to the business relationship to return the gift or decline the hospitality?
• Can the gift or hospitality be applied to benefit all team members rather than certain individuals?

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2.4 Political Activities

2.4.1 Political Contributions

Political Contributions refer to any payment or donation, including provision of services at favourable rates, irrespective of format or location, made on behalf of Bell to a recipient involved in federal, provincial, territorial or municipal political process, such as a political party, an election or leadership candidate, a riding association or an elected official. Bell’s corporate policy prohibits political contributions without the express prior consent of the Chief Legal & Regulatory Officer and EVP, Corporate Development. This policy does not apply to political contributions made by individuals within Bell on their own behalf. However, funds or assets being contributed must originate with or belong to the individual making the contribution, and individuals making political contributions should be prepared to demonstrate ownership.

For further information, consult the Political Contributions Policy available from the Corporate Policies & Ethics intranet site.

Beyond standard penalties for non-compliance with the Code which were previously outlined, Bell may refer the matter to the appropriate regulatory and legal authorities, which could lead to penalties, fines or imprisonment.

2.4.2 Lobbying on behalf of Bell

Broadly speaking, lobbying involves reaching out to a public office holder in order to further Bell’s objectives, whether at the Federal, Provincial, Municipal or other level of government. It is each employee’s own responsibility to know and ensure compliance with the rules and guidelines applicable to the jurisdiction of the public office holder he or she is meeting with. Lobbying does not, however, include formal legal or regulatory submissions, communications in a public forum or responses to government Request for Proposals.

Lobbying public office holders is a legitimate activity but the law sets certain boundaries around lobbying, as well as establishes some disclosure requirements, to ensure that lobbying activities are transparent and ethical. The Legal, Regulatory and Government Affairs Team must be consulted before making representations to public office holders. If you have any questions, you may consult the Legal, Regulatory and Government Affairs Team prior to the meeting.

Beyond standard penalties for non-compliance with the Code which were previously outlined, Bell may refer the matter to the appropriate regulatory and legal authorities, which could lead to penalties, fines or imprisonment.

2.5 Improper Influence on the Conduct of Audits

Employees are prohibited from coercing, manipulating, misleading or fraudulently influencing Bell’s internal or external auditors at any time and especially when the employee knows or should know that his/her action, if successful, could result in rendering Bell’s financial statements misleading in any way.

2.6 Trading in Securities

2.6.1 Insider Trading

As a director or employee, you may become aware of undisclosed material information about Bell or any other company. Unless you are certain that this information has been officially publicly disclosed, it is illegal for you to:

• trade in securities of BCE Inc., Bell Canada or any company to which the information relates
• disclose such information (otherwise than in the necessary course of business and on a confidential basis) to another person – also known as “tipping” - even if the other

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person, the tippee, is related to you or is a friend. Trading or tipping by the tippee is also illegal.

Undisclosed material information refers to information that, if disclosed, could affect the market price of a company’s securities or is likely to be considered important by investors in determining whether to buy, sell or otherwise trade in such securities. Some examples of what could constitute undisclosed material information are financial results before they are publicly announced, significant planned acquisitions or dispositions, business information such as business plans and new products and services before they are launched.

At law, severe penalties may be imposed against you personally as a result of unlawful trading and tipping.

Assuming you are not otherwise aware of undisclosed material information, the recommended time to purchase or sell BCE Inc. and Bell Canada securities is during the period beginning on the second business day following the day of announcement of BCE Inc.’s and Bell Canada’s quarterly financial results and ending on the last day of the quarter during which the announcement is made. This will help minimize the risk of an unintentional violation of these prohibitions, and the appearance of a violation (intentional or not). All employees are required to keep accurate records of their securities transactions and may be asked to report to Bell their holdings and investment transactions.

Even after Bell has officially publicly released material information, it is important to be sure that sufficient time has elapsed to enable the information to be disseminated to investors. As a rule of thumb, you should not trade BCE Inc. or Bell Canada securities until the second business day following the public announcement. An employee must not attempt to “beat the market” by trading simultaneously with, or shortly after, the official release of public information.

Members of the board of directors and executives should consult the “BCE Inc. and Bell Canada Insider Trading and Reporting Guidelines” for additional information. A copy of these guidelines can be obtained from the Corporate Secretary’s Office.

Can I use information I obtain by accident or overheard?

• No. Even when you obtain undisclosed material information by accident, such as by overhearing a discussion of a planned acquisition, you are prohibited by law from trading in shares of BCE Inc. or the target company. In addition, you cannot suggest to a spouse, near relative or friend that they trade in shares of BCE Inc. or the target company while in possession of such information as this would be considered tantamount to divulging that information to someone outside Bell for personal gain or the gain of someone else. Such securities could only be traded on the second business day after Bell or the company being acquired issues a press release publicly announcing the planned acquisition.

2.6.2 Short Sales, Calls and Puts

As a director or employee of Bell, you may not engage in the following activities with respect to BCE Inc.’s securities or the securities of any of its affiliates (such as Bell Canada): (a) short sale; (b) sale of a call option and (c) purchase of a put option.

“Short selling” means selling shares you do not currently own and borrowing a third party’s shares in order to make delivery, the whole in expectation that the shares will decrease in value when you will buy back the shares and return them to the owner. Such process may lead to undue speculation and abuse and is therefore prohibited.

Puts and calls may also lead to the same abuse and therefore similar restrictions apply to the sales of call options and purchases of put options in respect of securities of BCE Inc. and its affiliates. For the purposes hereof, a “call” can be defined as an option to demand delivery of a specified number or amount of securities at a fixed price within a specified

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time but does not include an option or right to acquire securities of BCE Inc. or its affiliates where such were granted by BCE Inc. or its affiliates (such as pursuant to BCE Inc.’s Long-Term Incentive (stock option) Programs). A “put” can be defined as an option to deliver a specified number or amount of securities at a fixed price within a specified time.

In summary, you cannot sell short securities of BCE Inc. or its affiliates, and you may not sell call options or buy put options over the same securities. You must exercise great caution in your trading in order to avoid inadvertent breaches of these restrictions.

2.7 Public Disclosure of Material Information

Only authorized executives can decide the timing and content of public disclosures regarding Bell. Examples include public filings with securities regulatory authorities or the issuance of news releases.

If you are not an authorized designated spokesperson, you must not respond under any circumstances (including on a “no-name” or “off the record” basis) to inquiries from, or voluntarily provide information to, the investment community or the media, unless specifically asked to do so by an authorized spokesperson.

Any inquiries need to be immediately referred to Bell’s Communications Department or Investor Relations Department. The list of authorized designated spokespersons can be found in Bell’s Disclosure Policy available on the Corporate Policies & Ethics intranet site.

2.8 Confidentiality of Customer and Employee Information

2.8.1 Customer Privacy

Bell has long been committed to maintaining the accuracy, confidentiality, security and privacy of customer information. It is essential that we protect the confidentiality of all non-public information entrusted to us by Bell or its customers, except when disclosure is authorized or legally mandated. Even seemingly mundane information might be of use to competitors, or harmful to Bell or its customers, if disclosed. Even unintentional disclosure can lead to identity theft or financial gain by third parties. Therefore, the best way to protect customer information is to limit access on a need-to-know basis. In addition, we must comply with the laws and regulations related to privacy that apply to Bell, including the Personal Information Protection and Electronic Documents Act and restrictions imposed by the CRTC.

Unless a customer provides explicit consent or disclosure is pursuant to a legal power such as a search warrant, all information kept by Bell about its customers with the exception of listed name, address and telephone number, is confidential and cannot be disclosed or used, directly or indirectly, except for business purposes. We may only use this information for the purposes for which it was collected and that the customer would reasonably expect.

Recording, releasing or disclosing private customer information for personal gain or the benefit of another will result in immediate discipline up to and including dismissal, and may include civil or criminal prosecution. This may also expose Bell to substantive reputational harm and financial liability.

Interception of Private Communications

Communications between Bell and a customer may be monitored for quality assurance purposes, with an appropriate advisory to the customer.

The unlawful interception of a private communication is prohibited under the Criminal Code. The content of a customer’s transmissions (including telephone and email) may not be monitored, nor may the content, nature and existence of telephone calls and data transmissions be released to third parties except as explicitly authorized by law.

Unintentional interceptions of a call may occur when providing service, doing repairs or when conducting quality control checks. In these instances, the employee must advise the persons on the call of the unintended interception and immediately disconnect from that call.

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Business Customer or Supplier Information

Maintaining customer and supplier privacy is also crucial when dealing with contracts, proposals and quotations. We must be vigilant to not share business customer or supplier information - such as business plans, names of representatives or information of a sensitive nature - with other employees servicing a similar market segment (for example, the banking industry). By doing so, we may inadvertently divulge information about a business customer or supplier to that customer’s or supplier competitor. Also, unless a business customer or supplier provides explicit consent, we do not share information about business customers or suppliers with other affiliates or partners, agents or subsidiaries of our group, except with those affiliate or partners or agents or subsidiaries of a group, who are directly involved in the specific contract, proposals or quotations.

I am a customer service representative for the residential market. A caller identifying himself as the spouse of a wireless customer requests billing details for the spouse’s account, indicating that he looks after bill payments for the family. Should I provide the information?

• If the caller is not explicitly listed on the account as an authorized co-user, the information should not be provided. Account details, particularly for wireless accounts, can be very sensitive information and is often sought in the context of matrimonial disputes. Advise the caller to have the account holder of record contact Bell to have the spouse added to the account as an authorized co-user. This approach applies equally to all customer accounts, in all business units.

2.8.2 Employee Privacy

Bell has also long been committed to protecting the personal information of its employees which is collected only for purposes relevant to managing the employment relationship. The obligations described in the Personal Information Protection and Electronic Documents Act also apply to the collection, use, disclosure and protection of personal employee information.

Personal information means information, in any format, about an identifiable individual, but does not include the name, title or business address or telephone number of an employee. Employee personal information refers to those records like the personnel files and other documents collected and used to provide services or support such as pay or benefits information. Personal health information is held separately by the Disability Management Group.

All personal information is protected by security safeguards appropriate to the sensitivity of the information and may only be used for reasonable purposes relating to the management of the employment relationship or for other purposes as may be required by law. All employees holding personal employee information must handle it in accordance with privacy principles. Aside from applying normal safeguards (i.e. locked cabinets and desks), employees should avoid discussing personal employee information in public areas.

Notwithstanding the notion of employee personal information, there shall be no expectation of privacy for communications made through the use of Bell equipment or using Bell paid services or products (for example, e-mail, internet/intranet activities, voice mail, computer files, network), as well as workspaces (for example, desks, lockers, and vehicles).

Bell reserves the right to monitor or search any and all Bell property at any time, where it determines on reasonable grounds that this is required; for example:

• to evaluate and measure service quality
• in the interests of the safety and protection of employees or Bell
• to search for specific business information
• to comply with legal warrants or other obligations
• to conduct security investigations such as in the event Bell suspects an employee of fraud, theft, undeclared conflict of interest or other situation which may cause prejudice to an employee or Bell or its reputation.

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Additional information is available through the Employee Privacy section of the Human Resources intranet site as well as in the Acceptable Use of Information Technology Resources Policy.

2.8.3 The Bell Privacy Policy

To support our commitment to privacy we have developed policies and a formal privacy code - the Bell Privacy Policy - which spell out the commitments of Bell, its employees and agents and the rights of customers and employees regarding personal information.

The Bell Privacy Ombudsman oversees compliance with these privacy policies and may be contacted at privacy@bell.ca.

The Bell Privacy Policy and other privacy-related documents are available by following the “privacy” link on www.bell.ca or on the Bellnet policies page Corporate Policies & Ethics.

2.9 Information Classification and Records Management

The purpose of the Information Classification and Records Management Policy and of the Records Retention Schedule is to ensure that Bell’s information is properly classified so records are adequately protected, stored and shared to comply with legal requirements and business needs. The policy applies to all forms of records irrespective of who has prepared them, whether they are in paper, electronic or other media format and no matter whether they reside on Bell’s premises, servers and infrastructure or not.

Employees are responsible for:

• ensuring compliance with business, legal and regulatory requirements with respect to record retention
• improving operational efficiencies, reducing space requirements and costs by eliminating unnecessary records
• ensuring the preservation and accessibility of relevant records to satisfy specific operating needs and in the event of potential or actual litigation or internal or external (including governmental) investigation.

Confidential information is information about our business that is not and must not be publicly available and includes any information classified as Internal Use or Confidential, as well as any information that has not been classified. Some examples of information which must be safeguarded from disclosure include:

• marketing strategies, pricing, bids and proposals
• training material
• employee or customer personal information
• passwords and encryption keys
• undisclosed financial results
• pictures or recordings of confidential information or discussions
• any video, picture or recording taken on work premise or of Bell premises, which are permitted only with director level management approval. Furthermore, it is strictly prohibited to record any identifiable individual without the person’s knowledge and consent, except if such recording is for investigation purposes and authorized by Corporate Security.

Employees must also:

• not send confidential information to personal email accounts or store them on their personal devices
• not store confidential information on portable storage devices including USB keys or external hard drives
• ensure confidential information is securely stored when unattended
• not store confidential information, including pictures, on personal devices that have not been registered through the BYOD (bring your own device) process
• avoid discussing such information in public places (including by phone in taxis, trains and airplanes), with family members or friends or with business colleagues when conversations might be overheard
• report immediately unauthorized disclosure, transmission, misappropriation or misuse of confidential information to Bell’s National Incident Centre (NIC) at 1-866-714-0911 or at cni-nic@bell.ca

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Post Employment Obligations

Your obligation to protect Bell’s confidential information continues after the employment relationship ends. Upon termination of employment or contract, or reassignment, all employees must:

• return all copies of confidential information and documents, including electronic records, and all third party information entrusted to Bell
• keep confidential and not use any such information or document. This continuing obligation is particularly important in the case of a departing employee who subsequently works for one of Bell’s competitors or suppliers.

Preservation of Records under Legal Hold

Records subject to preservation under a “legal hold” must not be disposed of until the hold is lifted. Where a “legal hold” is in place, all owners of records that are subject to it must take positive steps to ensure the preservation of such records. Those record owners must also, prior to taking any steps that might affect the disposal of such records, such as re-imaging their computers or being “evergreened” to a new device, contact the Legal, Regulatory and Government Affairs Team (ediscovery.legal@bell.ca) to verify whether they can dispose of the records. Any employee unsure whether records are subject to a legal hold or unsure of the hold’s scope should contact the Legal, Regulatory and Government Affairs Team at ediscovery.legal@bell.ca.

When an employee, who owns records that are subject to a legal hold leaves Bell, the employee’s manager and Human Resources Consultant must ensure that these records are preserved.

How do I tell if a document (paper or electronic) is confidential if it is not marked as such?

• You must begin by asking the person who issued the document (if known), as the originator is the person who must determine the security classification. If you can’t find the source of the information and the nature of the document does not make the classification obvious (such as information that has been made public), the document must be treated as confidential until the proper classification is determined.

2.10 Dealing with Customers and Suppliers

We achieve an ongoing competitive advantage by ensuring that our reputation for quality, service and integrity remains intact. Compete fairly but vigorously while complying with our legal and ethical obligations.

2.10.1 Customer Relations

Customers and customer service are at the core of our business. To succeed, we have to be honest, courteous, and respectful when dealing with our customers and their property whether visiting their home or place of business.

Our customers expect us to provide quality products and services, and be truthful when discussing our advantages and benefits. To maintain that trust we should:

• offer customers only those services which we are legally allowed to provide and that they want or need
• promote our products and services accurately even when up selling
• give customers the straight facts about their competitive choices
• guide customers into asking the right questions about their competitive options
• convince customers it’s to their advantage to stay with Bell – or come back from another carrier
• don’t offer to waive charges, cut special deals or grant discounts that are not authorized
• serve our Québec clients in the official language of their choice (French or English).

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2.10.2 Supplier Relations - Reciprocity

Like many corporations, we purchase goods and services from thousands of suppliers, many of whom are also our customers.

While we quite naturally want to do business with our customers, and will take advantage of every opportunity to do so, we must keep in mind that this should not be done at the expense of price, quality and service. These criteria, rather than the simple fact a supplier is or is not our customer, should guide our purchasing decisions.

Reciprocity is an arrangement where a purchaser gives business to a supplier because that supplier is its customer for other products, in preference to another supplier. Reciprocity, whether it originates with the buyer or the seller, should be handled with utmost care for a number of financial, ethical and legal reasons.

For example, we may lose the opportunity to save money on our purchases if we choose suppliers solely because they are Bell customers and we may be accused of anticompetitive behaviour.

Under certain circumstances, we may, for strategic marketing reasons, develop and contract services exclusively with a given supplier. The Law Department must be consulted before such arrangements are established.

Our department is organizing a meeting at a hotel. Due to the large size of our group, and the fact we don’t want to travel far, we’ve chosen a nearby hotel serviced by a competitor’s long distance network. Is this okay, or should we find a hotel that uses Bell long distance?

• It is not Bell policy to prohibit employees on company business from dealing with organizations that do not use Bell’s services. While we actively encourage everyone at Bell to do business with our customers, we must ensure that this is not done at the expense of price, quality and service.
• Although the hotel you’ve chosen is not a Bell customer, you were right to choose it if, in your judgment, it best meets the price-quality-service criteria you are looking for: the hotel is located close to your office, it can easily accommodate all the members of your department and, as a result, will enable your group to save both time and traveling expenses.

2.11 Dealing with Competitors

2.11.1 Treating Competitors with Respect

We welcome and encourage fair and open competition and we are committed to treating competitors with due respect. By doing so, we honour the competitive spirit that motivates us to perform at our best.

Behaving competitively means that we:

• do not portray a competitor to the public or to a customer in an inaccurate, misleading, disparaging or unfair manner or in a way contrary to laws that govern competitive business practices
• do not state as a fact our understanding of a competitor’s price information as that information may be out of date and incomplete
• exercise care when commenting publicly on such topics as a competitor’s financial situation, business practices, management, reliability or foreign ownership
• do not behave disrespectfully toward a customer who has decided to purchase a competitor’s products or services; rather we rigorously promote and provide high-quality service for any other product we may supply to this customer.

2.11.2 Obtaining Information about our Competitors

We have every right to gather information about the marketplace in which we operate through legal and ethical means. This includes information about our competitors,

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their products and services, technology, prices, advertising, and so on.

However, we do not engage in industrial espionage, buy proprietary information or induce employees or former employees of our competitors to disclose proprietary or confidential information of his/her current or former employer.

If you become aware that confidential or proprietary information about a competitor is circulating through Bell, you must not use such information and must immediately report it as indicated below.

Our business unit recently hired someone who was employed with a competing radio station. This person has confidential information which would be very valuable to us. Can we ask him to disclose this confidential information?

• Absolutely not. The new employee has an obligation to protect his/her former company’s confidential or proprietary information, just as you would be obliged to protect Bell’s confidential or proprietary information if you were to leave Bell. You must respect the employee’s personal integrity as well as his/her obligation to his/her former employer. Inducing an employee to disclose such confidential information is a violation of the Code.

If I become aware that this person is disclosing a competitor’s confidential information to Bell employees, should I report it?

• Yes you must report this fact to your immediate supervisor or through the Business Conduct Help Line at clearviewconnects. com or by calling 1-866-298-2942 – and you must not use such confidential information. Bell’s reputation could be significantly harmed by such disclosure and taking immediate steps to contain the confidential information is critical. Failure to report is a violation of the Code.

2.11.3 Agreements with Competitors

In many cases, agreements between competitors that restrict i) the price at which competitors can sell their products or services to customers, ii) the customers to whom competitors can sell, or iii) quantities that competitors will produce or market, are criminal offences and thus prohibited. To be clear, this prohibition does not address cases where two competitors are simply entering into an agreement as buyer and seller of each other, as is for instance common in our wholesale division.

The law provides certain exceptions and we may, for strategic reasons, sometimes take advantage of these exceptions and enter into specific agreements with competitors. For instance, the rules allow, under certain conditions, the submission of joint bids with competitors in response to requests for proposal, something which otherwise would appear to be a prohibited agreement on price. The Regulatory/Law Department must be consulted before arrangements with competitors are established.

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2.11.4 When a Competitor is a Customer

When providing competitors with network facilities, broadcasting, access or other services, we cannot use information obtained as a result of that process in any manner which would give us an undue competitive advantage. This includes ensuring that this information is not made available to those within Bell or its affiliates who develop competitive service strategies. It also means that we must not disclose a customer’s choice of competitive carrier to anyone who does not clearly require the information to provide service to the customer.

2.12 Safeguarding Bell Assets

We all have a responsibility to be accountable for and safeguard Bell assets from loss, damage, theft, fraud, vandalism, sabotage or unauthorized use, copying, disclosure or disposal. The improper use and/or reporting of assets could seriously undermine Bell’s integrity, adversely affect our business strategies and decisions and weaken investor confidence. It is considered a severe misconduct that may lead to termination of employment for cause. It could also constitute a criminal offence.

Bell’s assets include but are not limited to, offices and office equipment, inventory, computers, art, telephone and video equipment, vehicles, tools, materials, buildings, people, property, information, funds, communication networks, information systems, and intellectual property. The vehicle related policy and practice can be found on the Corporate Services intranet site and covers both the use of Bell-owned vehicles and the use of employee’s vehicle for Bell purposes.

Access to and use of these assets must be authorized, adequately controlled and based on business needs. We should not use Bell assets for personal purposes, except where this use has been authorized by your leader. Each of us must also take appropriate measures to prevent losses due to willful action by others, both outside and within Bell, which may result in personal injury, property damage, theft, fraud, loss, abuse or unauthorized access to physical or logical assets, and intellectual property (including data).

Employees are expected to safeguard Bell assets and comply with Bell policies, including the Policy on Authorizations.

Bell policies, including the Policy on Authorizations, are available in the Corporate Policies & Ethics intranet site.

To best safeguard the tools and equipment used as part of their functions, employees must consult the Bell Corporate Security policies, available on the Corporate Policies & Ethics intranet site.

Loss or theft of Bell assets, property damage and malfunctioning doors and locks are to be reported to Bell’s National Incident Centre (NIC) at 1-866-714-0911 or at cni-nic@bell.ca.

2.12.1 Visible ID

All employees, consultants and contractors must wear a visible, valid, designated ID card at all times while on Bell premises. An ID card can only be used by the employee to whom it is issued. It cannot be shared or lent. Visitors must wear a valid, designated visitor’s card while on Bell premises and employees should challenge anyone on Bell premises not wearing one.

2.12.2 Prevention of Fraud

What is Fraud?

• Fraud is defined as an intentional deception, falsification or misrepresentation made for personal gain, or to damage or create loss for the organization, customers or individuals.
  This can include the misuse or misapplication of the organization’s resources or assets to conduct internal fraud. This can also include actions taken towards business partners such as clients and service providers as well as false or inflated insurance claims presented to Manulife or any other insurance provider.

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Successfully preventing fraud requires an ongoing commitment from all of us. This includes actively participating in the prevention, detection, and reporting of suspected fraud, whether committed by an internal or external party. As employees we will not engage, directly or indirectly, in bribery, kick-backs, account falsification, false claims, time fraud or any other fraudulent or corrupt business practices.

Fraudulent actions are not only unethical, but may also be a violation of law, Bell has a “zero tolerance” stance with regards to all confirmed fraud situations. If you are approached by anyone with an opportunity to engage in fraudulent activities, you must report the incident to your manager and Corporate Security or through the confidential Employee Help Line available at clearviewconnects.com or by calling 1 866 298 2942 (toll free).

2.12.3 Corporate Credit Cards and Bell Funds

We are personally responsible for funds, cash, cheques, postage, etc., over which we have control. Corporate credit cards are not to be used for personal cash withdrawals or purchases and other charge cards are to be used only for business purposes. We must also ensure that all expense vouchers, benefit claims and invoices are accurate and properly authorized.

Corporate policy regarding the use of corporate credit cards and corporate travel is detailed on the Travel and Expenses Management intranet site. We should, unless unavailable, use the services of suppliers with whom Bell has negotiated agreements (e.g. travel agents, airlines, car-rental agencies, taxi companies, hotels).

2.12.4 Hiring Consultants or Contractors

Hiring of contractors or consultants must follow the rules as outlined on the Contractors and Consultants Procurement intranet site and hiring of external resources must also comply with Personnel Security Policy available on the Corporate Policies & Ethics intranet site. In addition, all contractors performing high risk work must pass a pre-qualification process; ensuring workers are qualified to do the work, prior to conducting any work for Bell. For more details about contractor safety management, please contact Corporate Health & Safety at info.ss_hs@bell.ca.

2.12.5 Electronic Procurement and Electronic Processing of Expense Reports

Bell electronically processes much of its procurement needs including employee expense reports and accounting for corporate credit card payments. All employee expense reports and credit card payments must be approved by a leader one level above the employee submitting the reports.

2.12.6 Business Books and Records

Bell’s books and records contain information essential to effective and efficient operations. They form the basis upon which key decisions about Bell are made by our executives, financial analysts, shareholders, investors, and regulators.

Because they are so crucial to Bell meeting its legal, regulatory and financial obligations, we must ensure that all documents, reports, plans and records falling under our responsibility are accurate and complete. We must also ensure that all transactions are properly authorized.

In preparing and maintaining our books and records, we must:

• adhere to all accepted accounting standards and practices, rules, regulations and controls applicable to us
• ensure that all entries are recorded accurately, on time, in the proper accounts, and are properly documented
• record all funds, assets and transactions; we may not establish any undisclosed or unrecorded fund or assets for any purpose
• keep books and records which reflect fairly, accurately and in reasonable detail Bell’s transactions, acquisitions and disposal of assets and other relevant activities
• sign only those documents we believe to be accurate and truthful

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• restrict access to sensitive or confidential information (such as financial records and customer information) to ensure the information is not accidentally or intentionally disclosed, modified, misused or destroyed
• maintain internal control processes to ensure that Bell meets its book and record keeping obligations.

2.12.7 Standard Contracts and Agreements

Contracts and agreements represent some of the greatest exposures faced by Bell. If you are in a position to develop or sign contracts you must take necessary steps to protect the interests of Bell by ensuring that only Bell standard form template contracts are used and, in the case of purchase agreements, the Procurement Policy is followed. All contracts must be reviewed by appropriate departments such as, Legal, Regulatory and Government Affairs, Procurement, Corporate Security, Corporate Responsibility & Environment, Health, Safety and Workplace, Risk Advisory Services and Insurance. Standard contracts must not be modified without prior Law Department approval.

2.12.8 Information Security

Computers and computer networks form the backbone of our business and operations infrastructure. For this reason, every effort must be made to protect Bell’s computer systems and associated software from the various threats to their security, such as accidental or deliberate destruction of data and equipment, interruption of service, disclosure of confidential information, theft and corruption.

To maintain security:

• access to computer systems must only be granted to authorized users
• access codes and passwords must be kept confidential and cannot be shared with anyone including leaders, co-workers and support teams,
• when traveling with mobile devices that access or contain company data, you must comply with applicable Bell policies
• comply with all security controls in place
• follow Bell rules regarding the purchase and use of computer software
• guard against computer viruses that may damage Bell’s computer systems
• report computer security incidents, virus or worms to the Bell Customer Service Desk at 1-888-920-888.
• report Bell branded phishing emails sent to your Bell office account as follows:
  1. From your email inbox, select the phishing email
  2. Press the Ctrl + Alt + F or for Mac Ctrl + Cmd + J keys and forward the email to phish@bell.ca
  3. Permanently delete the original and sent messages from Outlook.

For further information and references, visit the Corporate Security intranet site.

2.12.9 Intellectual Property

Intellectual property such as patents, inventions, copyrights, trade-marks, domain names, industrial designs and trade secrets are strategic assets of Bell and must not be disclosed to or used by others without first ensuring that appropriate legal safeguards are in place. Failure to do so could result in Bell losing rights in its intellectual property.

Intellectual property rights also reside in and protect know-how, business methods and processes, computer software, written materials (including paper or electronic form), graphics, photographs and audiovisual works, whether developed internally within Bell or obtained from others.

Every employee has a responsibility to preserve, protect and enhance the value of these assets.

Trade-marks, including Bell’s logo and its various trade names, are among Bell’s most valuable assets. When using them, employees must follow the Brand guidelines, and must immediately report any infringement or misuse of such trade-marks or trade names to the Branding and Identity Hot Line by sending an email to

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info.branding@bell.ca. In addition to protecting Bell’s intellectual property, we also have a responsibility to avoid infringing intellectual property rights of others, as detailed in the Intellectual Property Policy referred to below.

All intellectual property conceived or made in the course of our employment with Bell or which are within the scope of Bell’s business interests, are rightly the exclusive property of Bell. Each employee assigns to Bell the ownership of all intellectual property created in the course of their employment, and also waives in favour of Bell any moral rights they may have in such intellectual property. Employees are prohibited from applying for patents or other intellectual property registrations in regards to intellectual property that belongs to Bell, nor can Bell’s intellectual property be used for personal purposes or gain.

For additional information, please consult the Intellectual Property Policy.

2.12.10 Proper Use of Bell-Provided Internet Access and Other IT Resources

Access to the Internet is primarily provided for business purposes. However, accommodating employees’ development and awareness through personal use of Bell-provided Internet access is also encouraged.

Personal use of the Internet and e-mail must be reasonable, i.e. it must not impede or reduce an employee’s ability to perform his/her duties, diminish productivity or effectiveness at work or negatively impact Bell in any way. Abuse of Bell-provided Internet or e-mail may result in disciplinary action up to and including termination of employment. The use of Internet and e-mail to conduct illegal activities is strictly prohibited and will lead to termination of employment.

The law strictly prohibits the unlicensed use of software on computers (including tablets and smart phones). To obtain software licensed by Bell for business use visit the software page in MY Telecom Warehouse. You must also verify and respect the manufacturer’s conditions of license or agreement under which the software was acquired. Copying software onto your Bell or personal computer may be a violation of the software company’s licensing agreement as well as copyright laws, and placing Bell at risk of prosecution for copyright infringement.

For further details, consult the Acceptable Use of Information Technology Resources Policy.

Any evidence of child pornography is to be immediately reported through the Internet child pornography reporting form.

I’m attending an important sales meeting next week and I have to prepare a presentation using slides and fairly complicated charts. My colleague has the software I need to put the presentation together, and he’s offered to lend me his CDs so I can install the program on my computer. Can I go ahead?

• No. By copying your colleague’s software into your computer, you may be breaking the software company’s licensing agreement as well as copyright laws. You should speak to your manager to discuss your computer needs.

2.13 Social Media

Social networking sites like Facebook, Instagram, LinkedIn, Snapchat, Twitter and YouTube have all become increasingly effective channels for Bell to strengthen our brand and our connection with customers and the public. All team members are required to follow Bell’s Social Media Guidelines (available from the Corporate Policies and Ethics intranet site) to ensure we can maximize the value of social media while protecting and enhancing the reputation of Bell and our team. We expect our team members to respect the principles and values outlined in the Code while navigating the social media world.

As a general rule, always remember that you are responsible for what you say or post online. Never assume that anything you say or

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post is private on social media and other public websites. Any statement you make online may be perceived as representative of Bell company policy and may create unnecessary liability for you and the company.

No Bell team member is authorized to speak on behalf of Bell and its related subsidiaries without prior approval. If you believe it is necessary for you to engage in social media on behalf of Bell, please contact the Social Media team (social.info@bell.ca), which will coordinate all requests for approval with Bell’s executive leadership team. For individuals authorized to participate in social media on behalf of Bell, any business records created by this activity will be managed in accordance with the Information Classification and Records Management Policy.

• Protecting confidential information: whether you are posting as an approved Bell spokesperson or for personal reasons, you can only disclose information that is in the public domain. You have an obligation to continue to protect Bell’s Confidential and Internal Use information as defined in the Information Classification and Records Management Policy. You have an obligation to protect confidential and personal information and may not post any comment that would include confidential information concerning our company, customers, suppliers or team members.
• Do not post online reviews of Bell products and services: “Astroturfing” is the term for online reviews of products and services that give the impression they have been made by independent consumers when in fact the person making them has a business interest in the product or service being reviewed. Employee discussion of our products or services online could be perceived as providing a biased or unrealistic opinion. This conduct may also raise legal issues and can have serious repercussions for you and for Bell. For all these reasons, Bell’s policy is that team members cannot rate or review any product or service owned by or associated with Bell or its affiliates on any public online service or site, including all social media platforms. That means, for example, that we cannot rate or review Bell products, services or apps on online review sites or Apple, Android, BlackBerry, or other app stores. It also means that we cannot comment on Bell products or services on social media sites such as Facebook, Twitter, LinkedIn Snapchat, YouTube or Instagram.
• Respect for our company and reputation: upholding Bell’s reputation is in the best interests of our entire team. Misleading, disparaging or untruthful comments about our company, products, services or team members can seriously undermine our brand and ability to support customers. We must also have respect for our competitors and must not portray a competitor to the public or to a customer in an inaccurate, misleading, disparaging or unfair manner. Don’t post comments or participate in online campaigns that could potentially jeopardize our reputation, including posting comments, reviews or ratings online about competitors’ products and services.

As with any company policy, violations may be serious and require a disciplinary action, up to and including termination of employment.

A complete copy of the Bell’s Social Media Guidelines is available from the Corporate Policies and Ethics intranet site. Additional related corporate policies, such as Bell’s Acceptable Use of Information Technology Resources Policy and Bell Media’s Social Media Policy for CTV News and on-air talent are available from the Corporate Policies and Ethics intranet site.

2.14 Work Environment

2.14.1 Mental Health

At Bell, we believe that the mental health of our team members is essential to achieving personal and organizational success and we are committed to leading by example in our own workplace by promoting mental health and supporting team members with a mental illness.

We expect every member of the Bell organization to take primary responsibility for their own health. Every employee also has a

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responsibility to contribute towards a workplace that promotes mental wellbeing.

Bell is committed to:

• supporting employees experiencing mental illness through our workplace practices
• understanding what factors contribute towards mental wellbeing at work by reviewing Bell’s mental health policy, employee feedback, government and legal requirements, and current best practices
• setting objectives that drive continuous improvement of our workplace mental health strategy and regularly evaluating our approach
• implementing or adapting policies and practices that support mental health in the workplace within the context of our corporate priorities and the evolution of our industry
• providing resources and training to educate all team members about mental health
• encouraging employees to take part in activities that contribute to their own mental health in the workplace.

To view the full policy statement, consult the Corporate Ethics and Policy intranet site at the following link: Corporate Policies and Ethics

2.14.2 Trust and Respect

Nothing is more basic to ethical behaviour than trust and respect. Upholding these values enables us to build and cultivate more meaningful, richer relationships with fellow employees, customers, suppliers and shareholders. For this reason, we expect all our employees to respect their colleagues, team members and leaders.

We are committed to fostering a workplace which encourages open and honest communication, recognizes the intrinsic dignity and worth of all employees and values the diversity of employees, customers, suppliers and shareholders.

Bell supports prevention by equipping employees and leaders with practical resources (Civility guide, Leader’s guide to managing conflict) available on the Respectful workplace ethics website.

2.14.3 Diversity and Employment Equity

Diversity is an unwavering respect for each other’s uniqueness, including, but not limited to: culture, ethnicity, gender, gender identity/expression, age, religion, disability, sexual orientation, education and experiences. By valuing our differences, we can create an inclusive work environment based on merit and fairness where all employees achieve their full potential.

Our Diversity, Human Rights and Accommodation policies provide the framework for supporting a diverse and inclusive workplace.

Employment equity is an important aspect of our diversity strategy. While diversity encompasses many different factors that make each of us unique, legislated employment equity programs focus on four designated groups: women, visible minorities, Aboriginal peoples and persons with disabilities. Bell is required to comply with the Employment Equity Act through workforce practices free of barriers to recruiting, retaining and promoting members of these designated groups. Ensuring equality in the workplace is not about hiring unqualified individuals but rather to ensure that the qualified members of the designated groups are given equal employment opportunities.

Employment equity and diversity programs also make business sense. A diverse workforce brings Bell closer to its customers. By becoming the supplier of choice to a diverse customer base and the employer of choice to our current and future employees, we further improve Bell’s chances of success.

Promotion of self identification through our online employment equity and diversity questionnaire, available in the Employment equity section of the Diversity intranet site, allows Bell to have an accurate assessment of representation within the four groups and allows for appropriate strategies and action plans to be developed in order to address any gaps. The information collected in the employment equity and diversity questionnaire is confidential.

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In addition, Diversity training (Career Zone course L744) and Respect in the Workplace (also in Career Zone) training are available to help support a diverse and inclusive work environment. Information is available at the following link: Diversity and Human Rights.

Bell operates in both official languages, English and French, and complies with Québec laws requiring French to be the primary language used in workplaces in that province. Our Language Diversity Program provides training, tools and a language pairing program to support bilingualism throughout the organization. For more details, please see the Bell Language Policy.

2.14.4 Discrimination and Harassment

We provide a workplace free of any type of personal harassment, including sexual harassment, intimidation and violence and are committed to an environment in which all workers can work safely.

We prohibit all types of unlawful discrimination, including harassment, whether directed against an individual or group, including employees, customers, suppliers and shareholders. This specifically includes discrimination based on race, national or ethnic origin, aboriginal or indigenous status, language spoken, religion, age, sex (including pregnancy or childbirth), gender identity/expression, sexual orientation, marital status, family status, veteran status, physical or mental disability and conviction for which a pardon has been granted.

Harassment is defined as vexatious behaviour that is repetitive and hostile or unwanted that degrades, humiliates, embarrasses, affects or insults an employee’s dignity or integrity and that results in a harmful work environment for the employee. It may include:

• threats, intimidation and/or verbal abuse, unwelcome remarks or jokes
• unnecessary physical contact, such as touching, patting, pinching or punching
• displaying sexist, racist or other offensive pictures, posters, e-mails or screen displays
• any other action that may reasonably be perceived as offensive or degrading.

Sexual harassment includes offensive or humiliating behaviour that is related to a person’s sex, as well as behaviour of a sexual nature that creates an intimidating, unwelcome, hostile or offensive work environment, or that could reasonably be thought to put sexual conditions on a person’s job or employment opportunities. A few examples are:

• questions and discussions about a person’s sexual life
• commenting on someone’s sexual attractiveness or unattractiveness
• displaying posters, calendars and/or screen displays of a sexual nature
• writing notes, letters or e-mails of a sexually suggestive nature.

An employee who believes that he or she is being unlawfully discriminated against should tell the person to stop immediately. If there is imminent danger the matter should be reported to the police and/or emergency services as appropriate (dial 911) and then to Corporate Security (dial 1-866-714-0911): If the behaviour or action persists, the employee should report the matter to his or her manager or to a more senior manager in the organization. Unionized employees may elect to contact their union representative; management employees may consult with their Human Resources representative.

2.14.5 Workplace Violence Prevention

We all have a right to work in an environment free from violence and threats. Bell prohibits all acts of physical, verbal or written aggression or violence. This applies whether the aggression is committed by one employee against another, or against anyone else an employee comes in contact with when carrying out his or her responsibilities.

It’s up to each employee to report any act, or threatened act, of violence to a manager or to Corporate Security. In situations of imminent danger call the police or local emergency services and then Corporate Security. If the danger seems less imminent, take note of the facts: Who was involved? Where and when did the incident take place? Were there any witnesses? Then report the

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incident to Corporate Security. Corrective action will ensue as required.

Bell promotes a “zero tolerance” approach under which violence of any kind is not tolerated and may result in disciplinary measures up to and including termination of employment.

Bell’s policy Preventing Violence in the Workplace is available on the Human Resources intranet site. In addition, mandatory violence prevention training (Career Zone course L1027) must be taken every three years.

2.14.6 Health and Safety

At Bell, the health and safety of our team members and external stakeholders, including contractors, customers, and the general public, is an absolute priority. We also believe that a safe and healthy workplace is essential to achieving organization success, in all areas of our business. To support our commitment to team members, Bell will:

• ensure due diligence in its approach to meet or exceed all applicable workplace health & safety laws and regulations
• identify, analyze and address health & safety hazards
• establish processes and practices to support a safe workplace and prevent injuries
• investigate health & safety incidents
• provide employee training to ensure adequate health & safety knowledge and competency
• work in consultation with joint health & safety committees to uphold and evolve safe work practices and resolve any issues
• set objectives to continuously improve our safety performance
• regularly evaluate, monitor and report health & safety performance.

In support of our commitment to external partners and stakeholders, Bell will:

• require that all contractors, sub-contractors and third parties that access Bell sites have received health and safety training related to their jobs, use proper equipment and follow Bell’s procedures
• require all third parties to abide by legal and contractual guidelines as outlined in their contracts and monitor them accordingly
• cooperate with government and other stakeholders on health & safety matters.

Each team member of the organization is expected to:

• take primary responsibility for their own health and safety
• actively participate in health & safety training
• contribute to a safe and healthy workplace by upholding safe work practices at all times to prevent injuries
• identify and report health & safety hazards and incidents as well as participate in associated investigations when required
• comply with our legal and responsibility requirements.

Additional information on Health and safety programs and procedures is available on the Human Resources intranet site at Workplace and Safety.

You can also contact the Corporate Health and Safety team for more information at Info.ss-hs@bell.ca.

2.14.7 Reasonable Accommodation

Accommodation is part of a broader principle - that our society should be structured and designed for inclusiveness.

An accommodation is considered reasonable if it does not result in undue hardship, such as: significant impact on business operations, or risk to the health and safety of the employee concerned or any other person. Examples of accommodation can include physical or technical

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alterations to an employee’s workspace (work station height, non-standard computer monitor, telephone with amplifier or headset) and modification of work duties or conditions.

To make an accommodation request or to obtain information on the process of how requests are treated, visit the Human rights website.

2.14.8 Emergency Management

Employees may encounter various emergency situations that can directly affect them or Bell. To this end, Bell is committed to a level of preparedness and planning that is designed to “protect life and property” and to ensure a rapid return to providing service to our customers. Through the development and implementation of emergency response procedures and the “Be Ready” training modules, employees and business units will be ready to respond during emergencies. All employees must follow the “Be Ready” on line training every two years.

In the event of a life-threatening emergency first make sure you are safe, then call 911 (or local emergency service). All emergencies and emergency conditions including unplanned evacuations, or situations significantly impairing or potentially impacting service (such as but not limited to floods, major fires, power outages, health and safety emergencies) occurring on or in proximity to Bell facilities are to be reported to Bell’s National Incident Centre (NIC) at 1-866-714-0911 or cni-nic@bell.ca. For information on Bell’s Emergency Management procedures, consult the Corporate Security intranet site.

Evidence of serious criminal activity such as terrorism, found on Bell or customer premises or systems, are to be reported to Bell’s National Incident Centre (NIC) at 1-866-714-0911, unless involving an imminent threat where 911 must be called.

Significant facility or utility interruptions, surveillance, control systems or any service failures that impact our network are to be reported to 1-888-570-1091.

2.14.9 Business Continuity

Bell recognizes the importance of its infrastructure and services for its employees and customers. To that end, all business unit leaders and team members must ensure they have appropriate business continuity plans and disaster recovery plans in order to be ready to react to any type of events that may impair our activities.

2.14.10 Alcohol, Drugs and Other Substances

We are required to be fit at all times to perform all assigned duties. While at work, we must not be impaired by the use of alcohol, medication, or illicit drugs.

The use, sale, unlawful possession, manufacture or distribution of alcohol and illicit drugs or non-prescribed medications for which a prescription is legally required, whether on Bell work premises or other work locations, is strictly prohibited.

Employees have the responsibility to determine any potential adverse effects when using prescribed or over-the-counter medications with the assistance of their doctor or pharmacist. Intentional misuse of prescribed or over-the-counter medications is strictly prohibited.

For further information consult the Alcohol and Drug Policy on the Human Resources intranet site.

2.14.11 Involvement in a Legal Matter

If you are involved in a legal matter or police case you must immediately inform your manager if this involvement has the potential to affect your ability to perform your job fully and competently. Loss of a driver’s license, for example, must be reported immediately if the affected employee is required to drive a Bell vehicle.

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2.15 Journalistic Independence

Bell is committed to upholding principles of journalistic independence. The Journalistic Independence Policy governs CTV News editorial decision making. CTV News refers to all applicable news divisions owned by Bell, including radio. CTV News is solely responsible for all news reporting decisions and for ensuring the integrity of its news operations. Compliance with the Journalistic Independence Policy is mandatory for all Bell employees. Failure to comply with the policy will be considered a breach of the Code of Conduct and may result in disciplinary action up to and including termination of employment.

An appropriate framework of independence between CTV News and Bell is a fundamental safeguard to ensure that news is covered in a fair, accurate, balanced and unbiased manner. Any interference, whether direct or indirect, actual or perceived, undermines the principles of news independence and can erode the credibility of CTV News which is critical to maintaining the trust of audiences.

Bell fully endorses the independence of CTV News and requires that all employees execute their day-to-day job responsibilities in a manner that respects this core value.

From time to time, news stories directly or indirectly concerning Bell, or of commercial interest to Bell, will be reported by CTV News. The appropriate CTV News editorial team is solely responsible for determining how to cover any such story, with full discretion and control, and without interference. No Bell employee will take any action that will impact the standards of fairness, accuracy, balance and independence that must be applied to any such news story.

In the normal course of business, representatives of Bell may offer ideas for news coverage to the CTV News team, as they would with any other news organization. In any such instances, Bell representatives must recognize that the material offered must be considered newsworthy and relevant to the audience by the applicable CTV News division’s editorial team before receiving coverage. The news team will decide whether to proceed with a story, how it will be covered, and the extent of any coverage, with full and absolute discretion and control, and without direct or indirect interference in the decision making process.

You are a member of the CTV News team and you receive a request from the Bell Residential Services team to profile an item they believe is newsworthy on CP24. What should you do?

• Remember that it is acceptable for Bell employees to suggest story ideas, with respect for the CTV News team’s full authority to decide on news coverage
• If you decide the item is not newsworthy, but they persist or escalate the matter, you should discuss it with your supervisor to confirm your position and obtain support
• Ultimately, you can engage the President of CTV News, who is the final arbiter in matters relating to independent news reporting and has the authority to take steps to ensure the situation is resolved in an appropriate manner in accordance with the Policy on Journalistic Independence
• Should you consider that the matter is not handled in accordance with the policy, you can report your concerns through the Business Conduct Help Line

All news editorial decision making resides with the CTV News team with absolute and final privilege belonging to the President, CTV News. The CTV News teams will be responsible for the development of applicable editorial and reporting policies, including news policies on attribution, sources, and disclosure of conflicts.

If at any time the President, CTV News has any concerns about journalistic independence or compliance with the Policy that cannot be resolved through normal functional reporting channels in line with the principles of the Policy, the President, CTV News can address said matters with BCE’s

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Chief Executive Officer and/or the Chair of the BCE Audit Committee.

If you have any concerns regarding compliance with the Journalistic Independence Policy, such concerns shall be communicated to your immediate manager and/or the President, CTV News. However, if such reporting is either inappropriate, does not provide the necessary level of confidentiality, or as you otherwise prefer, the reportable activity should be reported to the Business Conduct Help Line or to the BCE Chief Legal & Regulatory Officer and EVP, Corporate Development or equivalent position.

To view the full Journalistic Independence Policy, consult the Corporate Ethics and Policy intranet site at the following link: Corporate Policies and Ethics.

The Business Conduct Help Line may be reached 24/7 by calling 1 866 298 2942 or by visiting clearviewconnects.com.

Members of the public should call Bell Canada’s Complaint and Concerns Line at 1-866-317-3382 with any concerns about Bell activities.

2.16 Protecting the Environment

Bell believes that environmental protection is an integral part of doing business. We strive to minimize, through a continuous improvement process, the impact that some of our activities, products or services may have on the environment. To that end, every employee is responsible to comply with our policies.

In support of this commitment, we will:

• exercise due diligence to meet or exceed the requirements of all applicable legislation and other prescribed requirements
• prevent, control and reduce releases into the environment and correct in a timely manner problem situations which cannot be prevented
• promote and support cost-effective resource use and waste minimization initiatives
• deal with suppliers who seek to minimize their environmental impacts
• develop and market services providing people and organizations with innovative solutions that take into account their environmental challenges
• participate with governments, businesses, the public and relevant interest groups to advance environmental protection
• communicate our environmental initiatives and performance to stakeholders on a regular basis
• ensure that employees adhere to the Environmental policy and understand their responsibilities in putting it into practice.

The Corporate Responsibility & Environment (CR&E) group has developed a series of policies, programs, procedures and guidelines to support employees in their environmental duties. These documents are available through the Environmental Management section of Bellnet

Environmental training is mandatory for all employees directly involved in managing any of the following environmental issues: incidents, manhole effluents, network impacts, residual materials (hazardous and non-hazardous), treated wood poles, petroleum products or ozone depleting substances. Training must be completed before the employee is assigned to operational duties.

All environmental incidents must be reported without delay to the Enviro-Line at 1-877-235-5368, available on a 24/7 basis, or at enviroline@bell.ca.

For inquiries, concerns or for information about environmental training, contact your Environmental Coordinator or the appropriate CR&E team member.

© Bell Canada 2017. All Rights Reserved.	Page  |  26
Code of Business Conduct

3 ROLES AND RESPONSIBILITIES

3.1 Business Unit Responsibility

Managers are required to ensure that all employees have access to the Code either on-line or in a paper format if required, and that they know, understand and comply with its provisions. To this end, they should ensure that all employees review the Code annually and comply with the annual review process outlined in this Code.

3.2 Board of Directors, Corporate Governance Committee and Audit Committee

The Board of Directors, with the recommendation of the Corporate Governance Committee, has the authority to approve this policy. In addition, the Corporate Secretary’s Office in conjunction with Internal Audit, report quarterly to the Audit Committee on the number and scope of issues brought via the Business Conduct Help Line.

3.3 Corporate Secretary’s Office

The Corporate Secretary’s Office has the responsibility of administering the Code and managing the Business Conduct Help Line, securing annual certification of all executives and members of the Board of Directors under the Code, addressing conflict of interest issues and ensuring compliance by all Business Units.

© Bell Canada 2017. All Rights Reserved.	Page  |  27
Code of Business Conduct

APPENDICES

Supporting Procedures

The Code of Business Conduct annual review is included in the annual performance process. These procedures are located in the Career Zone intranet site under Objective Performance.

Attachments

Attachment 1A	Certification of Directors and Executives under the Code of Business Conduct
Attachment 2A	Form BC 3684 – Employee Annual Record of Review
Attachment 2B	Form BC 3684A – Disclosure of Conflict of Interest or Potential Conflict of Interest
Attachment 3	Additional Resources

© Bell Canada 2017. All Rights Reserved.	Page  |  28
Code of Business Conduct

Attachment 1A

CERTIFICATION OF DIRECTORS AND EXECUTIVES
UNDER THE CODE OF BUSINESS CONDUCT

The Boards of Directors of BCE Inc. and Bell Canada (in each case, the “Company”) and our shareholders, expect all Directors and executives of the Company to follow the highest possible standards of honest and ethical conduct and to encourage and promote a culture in which ethical business conduct is recognized, valued and exemplified.

Certification

I certify that I have reviewed, understand and follow the Bell Canada Code of Business Conduct (the “Code”).

In addition, I support the setting of standards needed to discourage wrongdoing and to promote:

• honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships,
• full, fair, accurate and timely disclosure in reports and documents that the Company files with, or submits to, securities regulators and in other public communications made by the Company, in accordance with the Disclosure Policy,
• compliance with laws, rules and regulations of federal, provincial, state or local governments, and other relevant private and public regulatory agencies in all jurisdictions in which the Company operates,
• prompt reporting of all material violations of the Code to the Chair of the Audit Committee of the Board of Directors of the Company.

To the best of my knowledge and ability, I will act in good faith, responsibly, with due care, competence and diligence, without misrepresenting material facts or allowing my independent judgment to be compromised.

I acknowledge that I am accountable for following the Code and the responsibilities I have under it. I also acknowledge that complying with the Code is a condition of my employment. If I do not comply with it or applicable laws, rules or regulations, I may be subject to disciplinary measures, which could include dismissal from the Company.

© Bell Canada 2017. All Rights Reserved.	Page  |  29
Code of Business Conduct

Attachment 2A	Form BC 3684
EMPLOYEE ANNUAL RECORD OF REVIEW

Note to immediate manager: If this form is completed in paper format, please file original in employee’s personnel file.

Policy on conflict of interest

Employees owe their first business allegiance to Bell, and therefore they must remain free of interests or relationships which are harmful or detrimental to Bell’s best interests. Employees should avoid not only a real conflict of interest, but also the appearance of one which could tarnish their own or Bell’s image. Even though it is not always possible to avoid relationships that could place you in a position of potential conflict, it is important to inform your manager and avoid actions or decisions that would conflict with Bell’s interests.

Conflict of interest can lead to disciplinary action, even to dismissal and/or prosecution. If you are in doubt, you should discuss your specific situation with your manager, who will then advise you as to the position of Bell with respect to the matter.

Annual certification

I have reviewed, fully understand and follow Bell Canada’s “Code of Business Conduct” including the section on Conflict of Interest. I have reported immediately to my manager and through the annual review process any relationship or other circumstances that do or could place me in conflict with the interests of Bell. Any new situations will be reported as they occur. I hereby certify that I have no real or potential conflict of interest, except what is disclosed through the annual review process.

© Bell Canada 2017. All Rights Reserved.	Page  |  30
Code of Business Conduct

Attachment 2B	Form BC 3684A
DISCLOSURE OF CONFLICT OF INTEREST OR POTENTIAL CONFLICT OF INTEREST

Note to immediate manager: If this form is completed in paper format, please file original in employee’s personnel file. A copy should also be sent to the Corporate Secretary’s Office at corporate.secretariat@bell.ca. Employee
Family name	Given names	Employee number
I am directly or indirectly involved in other business or employment, which may give rise to or is at present in conflict with, or potential conflict with, the best interests of Bell:
I have direct or indirect investment, business involvements or relationships, which may give rise to or is at present in conflict with, or potential conflict with, the best interests of Bell:
I have, in the past 2 years, been employed or otherwise commercially involved in endeavours or companies which are in competition with Bell Canada and its affiliated companies (e.g.: Rogers, Telus, Videotron, Cogeco, etc.):
I am currently or was recently bound by restrictive covenants such as non-competition or non-solicitation restrictions:
Other:
For employees who declare a conflict due to past employment by a competitor: I understand that in my previous employment or commercial involvement with a competitor of Bell Canada and its affiliated companies I may have become aware of or given access to undisclosed confidential or proprietary information of my previous employer. As such, unless this information has been publicly disclosed or otherwise available in the marketplace, I am not to share such information. I also acknowledge that I have returned to my previous employer all property belonging to my previous employer including any confidential or proprietary information and documents provided to me including any third party information that was entrusted to me.

© Bell Canada 2017. All Rights Reserved.	Page  |  31
Code of Business Conduct

Attachment 3

ADDITIONAL RESOURCES

If you have any questions regarding the issues raised in this document or any questions on the Code, speak to your manager or use the Business Conduct Help Line at clearviewconnects.com or by calling 1-866-298-2942 (toll free).

If you wish to report any unethical or illegal behaviour such as corporate fraud, or to raise any concerns regarding Bell’s accounting, internal accounting controls or auditing matters, you may report the matter to your manager or use the Business Conduct Help Line at clearviewconnects.com or by calling 1-866-298-2942 (toll free).

You may also use the following resources:

• Human resources intranet site
• Corporate Security intranet site:
  • life-threatening emergencies: call 911
  • loss or theft of Bell assets, internal fraud, criminal activity, property damage, unauthorized disclosure of confidential information, known failures in security safeguards, malfunctioning doors and locks, emergency response system (non-life threatening emergencies), emergency conditions and service impacting situations are to be reported to Bell’s National Incident Centre (NIC) at 1-866-714-0911 or at cni-nic@bell.ca
  • computer security incidents, virus, worms, spam or phishing using Bell’s name, any other computer or data network attacks, weaknesses in security systems, and unexplained systems changes are to be reported to 1-888-920-8888
  • significant facility or utility interruptions, surveillance, control systems or any service failures that impact our telecommunications networks are to be reported on 1-888-570-1091
• Corporate Responsibility at 1-877-235-5368 or at responsibility@bell.ca.
• Enviro-Line Bell (environmental issues) at 1-877-235-5368
• Branding at info.branding@bell.ca
• Corporate Secretary’s Office intranet site or at (514) 786-8424
• Occupational Health, Safety and Workplace at (514) 870-5848 or at Info.ss-hs@bell.ca
• Bell Privacy Office for customer related privacy issues at privacy@bell.ca or for additional privacy related information, visit bell.ca
• Information on privacy in the workplace for employees is available on the Privacy intranet site or at:
  • English: privacy.coordinator@bell.ca
  • French: coord.rens.pers@bell.ca

© Bell Canada 2017. All Rights Reserved.	Page  |  32
Code of Business Conduct

POLICY OR PRACTICE DETAILS

Issuing BU	Law & Regulatory Department
Policy sponsor	Chief Legal & Regulatory Officer and Executive Vice-President, Corporate Development
Policy owner	Corporate Secretary’s Office
Primary contact	Corporate Secretary’s Office
Required approvals	Board of Directors, Corporate Governance Committee, Corporate Secretary
First Release	1995
Review cycle	Annually

Required Policy or Practice management elements checklist

Monitoring compliance processes defined	Yes
Communication plan complete	Yes
Communication materials complete	Yes
Training plan complete	Yes

Revision history

Date	Change owner	Changed by	Description
August 2012	Alain Dussault	Alain Dussault	Annual update
August 2013	Alain Dussault	Alain Dussault	Annual update
August 2014	Michel Lalande	Michel Lalande	Annual update
June 2015	Mirko Bibic	Mirko Bibic	Update
August 2015	Michel Lalande	Michel Lalande	Annual update
August 2016	Michel Lalande	Michel Lalande	Annual update
August 2017	Michel Lalande	Michel Lalande	Annual Update

#10639567

© Bell Canada 2017. All Rights Reserved.  Page  |  33

EX-99.5

Exhibit 99.5

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in Registration Statements No. 333-12130 on Form F-3, No. 333-213603 on Form F-10 and No. 333-12780 and 333-12802 on Form S-8 and to the use of our reports dated March 8, 2018, relating to the consolidated financial statements of BCE Inc. and subsidiaries (the “Company”) and the effectiveness of the Company’s internal control over financial reporting, appearing in this Annual Report on Form 40-F of BCE Inc. for the year ended December 31, 2017.

/s/ Deloitte LLP^[1]

March 14, 2018

Montréal, Canada

______________________________

¹ CPA auditor, CA, public accountancy permit No. A124391

EX-99.6

Exhibit 99.6

NOTICE OF RELIANCE
SECTION 13.4 OF NATIONAL INSTRUMENT 51-102
CONTINUOUS DISCLOSURE OBLIGATIONS

To: Alberta Securities Commission
British Columbia Securities Commission
Manitoba Securities Commission
Financial and Consumer Services Commission, New Brunswick
Office of the Superintendent of Securities, Newfoundland and Labrador
Nova Scotia Securities Commission
Ontario Securities Commission
Office of the Superintendent of Securities, Prince Edward Island
Autorité des marchés financiers
Financial and Consumer Affairs Authority of Saskatchewan
Toronto Stock Exchange

Notice is hereby given that Bell Canada relies on the continuous disclosure documents filed by BCE Inc. pursuant to the exemption from the requirements of National Instrument 51-102 – Continuous Disclosure Obligations (“NI 51-102”) provided in Section 13.4 of NI 51-102.

The continuous disclosure documents of BCE Inc. can be found for viewing in electronic format at www.sedar.com.

Attached to this notice and forming part thereof is the consolidating summary financial information for BCE Inc. as required by Section 13.4 of NI 51-102.

Dated: March 14, 2018

BELL CANADA
By:	(signed) Thierry Chaumont
Name:	Thierry Chaumont
Title:	Senior Vice-President and Controller

Bell Canada

UNAUDITED SELECTED SUMMARY FINANCIAL INFORMATION⁽¹⁾
For the periods ended December 31, 2017 and 2016
(in millions of Canadian dollars)

BCE Inc. fully and unconditionally guarantees the payment obligations of its 100% owned subsidiary Bell Canada under the public debt issued by Bell Canada. Accordingly, the following summary financial information is provided by Bell Canada in compliance with the requirements of section 13.4 of National Instrument 51 -102 (Continuous Disclosure Obligations) providing for an exemption for certain credit support issuers. The tables below contain selected summary financial information for (i) BCE Inc. (as credit supporter), (ii) Bell Canada (as credit support issuer) on a consolidated basis, (iii) BCE Inc. ’s subsidiaries, other than Bell Canada, on a combined basis, (iv) consolidating adjustments, and (v) BCE Inc. and all of its subsidiaries on a consolidated basis, in each case for the periods indicated. Such summary financial information for BCE Inc. and Bell Canada and all other subsidiaries is intended to provide investors with meaningful and comparable financial information about BCE Inc. and its subsidiaries. This summary financial information should be read in conjunction with BCE Inc. ’s audited consolidated financial statements for the year ended December 31, 2017.

For the periods ended December 31:

	BCE INC. (“CREDIT SUPPORTER”)(2)		BELL CANADA CONSOLIDATED (“CREDIT SUPPORT ISSUER”)		SUBSIDIARIES OF BCE INC. OTHER THAN BELL CANADA(3)		CONSOLIDATING ADJUSTMENTS(4)		BCE INC. CONSOLIDATED
	2017	2016	2017	2016	2017	2016	2017	2016	2017	2016
Operating revenues	–	–	22,721	21,721	–	–	(2)	(2)	22,719	21,719
Net earnings from continuing operations attributable to owners	2,914	3,031	3,045	3,083	117	–	(3,162)	(3,083)	2,914	3,031
Net earnings attributable to owners	2,914	3,031	3,045	3,083	117	–	(3,162)	(3,083)	2,914	3,031

As at December 31, 2017 and December 31, 2016, respectively:

	BCE INC. (“CREDIT SUPPORTER”)(2)		BELL CANADA CONSOLIDATED (“CREDIT SUPPORT ISSUER”)		SUBSIDIARIES OF BCE INC. OTHER THAN BELL CANADA(3)		CONSOLIDATING ADJUSTMENTS(4)		BCE INC. CONSOLIDATED
	Dec. 31,	Dec. 31,	Dec. 31,	Dec. 31,	Dec. 31,	Dec. 31,	Dec. 31,	Dec. 31,	Dec. 31,	Dec. 31,
	2017	2016	2017	2016	2017	2016	2017	2016	2017	2016
Total Current Assets	626	691	5,264	5,098	154	53	(1,405)	(987)	4,639	4,855
Total Non-current Assets	20,217	18,168	42,906	38,428	80	21	(13,579)	(11,364)	49,624	45,253
Total Current Liabilities	1,567	1,155	10,584	9,937	41	–	(1,405)	(984)	10,787	10,108
Total Non-current Liabilities	116	163	23,240	21,351	103	–	534	632	23,993	22,146

(1)	The summary financial information is prepared in accordance with International Financial Reporting Standards and is in accordance with generally accepted accounting principles issued by the Canadian Accounting Standards Board for publicly-accountable enterprises.
(2)	This column accounts for investments in all subsidiaries of BCE Inc. under the equity method.
(3)	This column accounts for investments in all subsidiaries of BCE Inc. (other than Bell Canada) on a consolidated basis.
(4)	This column includes the necessary amounts to eliminate the intercompany balances between BCE Inc., Bell Canada and other subsidiaries and other adjustments to arrive at the information for BCE Inc. on a consolidated basis.

EX-99.7

Exhibit 99.7

BCE Inc.
EXHIBIT TO 2017 ANNUAL FINANCIAL STATEMENTS
EARNINGS COVERAGE

The following consolidated financial ratios are calculated for the twelve months ended December 31, 2017 and give effect to the issuance and redemption of all long-term debt since January 1, 2017 as if these transactions occurred on January 1, 2017 and are based on unaudited financial information of BCE Inc.

	December 31, 2017
Earnings coverage of interest on debt requirements based on net earnings attributable to owners of BCE Inc. before interest expense and income tax:	4.8 times
Earnings coverage of interest on debt requirements based on net earnings attributable to owners of BCE Inc. before interest expense, income tax and non-controlling interest:	4.9 times

EX-99.31

Exhibit 99.31

CERTIFICATIONS

I, George A. Cope, certify that:

1.	I have reviewed this annual report on Form 40-F of BCE Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;
4.	The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and

5.	The issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit committee of the issuer’s board of directors (or persons performing the equivalent functions):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.

Date: March 14, 2018

(signed) George A. Cope
George A. Cope
President and Chief Executive Officer
BCE Inc.

CERTIFICATIONS

I, Glen LeBlanc, certify that:

1.	I have reviewed this annual report on Form 40-F of BCE Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;
4.	The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and

5.	The issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit committee of the issuer’s board of directors (or persons performing the equivalent functions):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.

Date: March 14, 2018
(signed) Glen LeBlanc
Glen LeBlanc
Executive Vice-President and Chief Financial Officer
BCE Inc.

EX-99.32

Exhibit 99.32

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. Section 1350), as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned officers of BCE Inc. (the “Company”), does hereby certify that:

the annual report on Form 40-F for the year ended December 31, 2017 of the Company (the “Form 40-F”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and the information contained in the Form 40-F fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: March 14, 2018	(signed) George A. Cope
	George A. Cope President and Chief Executive Officer BCE Inc.
Date: March 14, 2018	(signed) Glen LeBlanc
	Glen LeBlanc Executive Vice-President and Chief Financial Officer BCE Inc.

XML

Document and Entity Information	12 Months Ended
	Dec. 31, 2017 shares
Document Information [Line Items]
Entity Registrant Name	BCE INC
Entity Central Index Key	0000718940
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2017
Document Type	40-F
Document Fiscal Period Focus	FY
Entity Common Stock, Shares Outstanding (in shares)	900,996,640
Amendment Flag	false
Series R
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)	8,000,000
Series S
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)	3,513,448
Series T
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)	4,486,552
Series Y
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)	8,081,491
Series Z
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)	1,918,509
Series AA
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)	11,398,396
Series AB
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)	8,601,604
Series AC
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)	5,069,935
Series AD
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)	14,930,065
Series AE
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)	9,292,133
Series AF
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)	6,707,867
Series AG
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)	4,985,351
Series AH
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)	9,014,649
Series AI
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)	5,949,884
Series AJ
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)	8,050,116
Series AK
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)	22,745,921
Series AL
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)	2,254,079
Series AM
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)	9,546,615
Series AN
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)	1,953,385
Series AO
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)	4,600,000
Series AQ
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)	9,200,000

XML

Consolidated income statements - CAD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Profit or loss [abstract]
Operating revenues	$ 22,719	$ 21,719
Operating costs	(13,541)	(12,931)
Severance, acquisition and other costs	(190)	(135)
Depreciation	(3,037)	(2,877)
Amortization	(813)	(631)
Interest expense	(955)	(888)
Interest on post-employment benefit obligations	(72)	(81)
Other (expense) income	(102)	21
Income taxes	(1,039)	(1,110)
Net earnings	2,970	3,087
Net earnings attributable to:
Common shareholders	2,786	2,894
Preferred shareholders	128	137
Non-controlling interest	$ 56	$ 56
Net earnings per common share
Basic (in cad per share)	$ 3.12	$ 3.33
Diluted (in cad per share)	$ 3.11	$ 3.33
Average number of common shares outstanding - basic (millions)	894.3	869.1

XML

Consolidated statements of comprehensive income - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Statement of comprehensive income [abstract]
Net earnings	$ 2,970	$ 3,087
Items that will be subsequently reclassified to net earnings
Net change in value of available-for-sale financial assets, net of income taxes of nil for 2017 and 2016	0	(7)
Net change in value of derivatives designated as cash flow hedges, net of income taxes of $21 million and $24 million for 2017 and 2016, respectively	(65)	(68)
Items that will not be reclassified to net earnings
Actuarial losses on post-employment benefit plans, net of income taxes of $92 million and $71 million for 2017 and 2016, respectively	(246)	(191)
Other comprehensive loss	(311)	(266)
Total comprehensive income	2,659	2,821
Total comprehensive income attributable to:
Common shareholders	2,477	2,630
Preferred shareholders	128	137
Non-controlling interest	$ 54	$ 54

XML

Consolidated statements of comprehensive income (Parenthetical) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Statement of comprehensive income [abstract]
Income tax relating to available-for-sale financial assets	$ 0	$ 0
Income tax relating to cash flow hedges	21	24
Income tax relating to actuarial (losses) gains of defined benefit plans	$ 92	$ 71

XML

Consolidated statements of financial position - CAD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Current assets
Cash	$ 442	$ 603
Cash equivalents	183	250
Trade and other receivables	3,135	2,979
Inventory	380	403
Prepaid expenses	375	420
Other current assets	124	200
Total current assets	4,639	4,855
Non-current assets
Property, plant and equipment	24,033	22,346
Intangible assets	13,305	11,998
Deferred tax assets	144	89
Investments in associates and joint ventures	814	852
Other non-current assets	900	1,010
Goodwill	10,428	8,958
Total non-current assets	49,624	45,253
Total assets	54,263	50,108
Current liabilities
Trade payables and other liabilities	4,623	4,326
Interest payable	168	156
Dividends payable	678	617
Current tax liabilities	140	122
Debt due within one year	5,178	4,887
Total current liabilities	10,787	10,108
Non-current liabilities
Long-term debt	18,215	16,572
Deferred tax liabilities	2,447	2,192
Post-employment benefit obligations	2,108	2,105
Other non-current liabilities	1,223	1,277
Total non-current liabilities	23,993	22,146
Total liabilities	34,780	32,254
Commitments and contingencies
EQUITY
Contributed surplus	1,162	1,160
Accumulated other comprehensive (loss) income	(17)	46
Deficit	(6,080)	(6,040)
Total equity attributable to BCE shareholders	19,160	17,540
Non-controlling interest	323	314
Total equity	19,483	17,854
Equity and liabilities	54,263	50,108
Preferred shares
EQUITY
STATED CAPITAL	4,004	4,004
Common shares
EQUITY
STATED CAPITAL	$ 20,091	$ 18,370

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Consolidated statements of changes in equity - CAD ($) $ in Millions	Total	SHARES ISSUED PREFERRED SHARES	SHARES ISSUED COMMON SHARES	CONTRI-BUTED SURPLUS	ACCUMU-LATED OTHER COMPRE-HENSIVE INCOME (LOSS)	DEFICIT	TOTAL	NON-CONTROL-LING INTEREST
Beginning Balance at Dec. 31, 2015	$ 17,329	$ 4,004	$ 18,100	$ 1,150	$ 119	$ (6,350)	$ 17,023	$ 306
Net earnings	3,087					3,031	3,031	56
Other comprehensive loss	(266)				(73)	(191)	(264)	(2)
Total comprehensive income	2,821				(73)	2,840	2,767	54
Common shares issued under employee stock option plan	98		104	(6)			98
Common shares issued under dividend reinvestment plan	38		38				38
Common shares issued under employee savings plan	128		128				128
Other share-based compensation	(3)			16		(19)	(3)
Common shares issued for the acquisition of Manitoba Telecom Services Inc.			0
Dividends declared on BCE common and preferred shares	(2,511)					(2,511)	(2,511)
Dividends declared by subsidiaries to non-controlling interest	(46)							(46)
Ending Balance at Dec. 31, 2016	17,854	4,004	18,370	1,160	46	(6,040)	17,540	314
Net earnings	2,970					2,914	2,914	56
Other comprehensive loss	(311)				(63)	(246)	(309)	(2)
Total comprehensive income	2,659				(63)	2,668	2,605	54
Common shares issued under employee stock option plan	116		122	(6)			116
Common shares issued under dividend reinvestment plan			0
Common shares issued under employee savings plan	5		5				5
Other share-based compensation	(8)			8		(16)	(8)
Common shares issued for the acquisition of Manitoba Telecom Services Inc.	1,594		1,594				1,594
Dividends declared on BCE common and preferred shares	(2,692)					(2,692)	(2,692)
Dividends declared by subsidiaries to non-controlling interest	(45)							(45)
Ending Balance at Dec. 31, 2017	$ 19,483	$ 4,004	$ 20,091	$ 1,162	$ (17)	$ (6,080)	$ 19,160	$ 323

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Consolidated statements of cash flows - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities
Net earnings	$ 2,970	$ 3,087
Adjustments to reconcile net earnings to cash flows from operating activities
Severance, acquisition and other costs	190	135
Depreciation and amortization	3,850	3,508
Post-employment benefit plans cost	314	305
Net interest expense	942	875
Losses (gains) on investments	5	(58)
Income taxes	1,039	1,110
Contributions to post-employment benefit plans	(413)	(725)
Payments under other post-employment benefit plans	(77)	(76)
Severance and other costs paid	(147)	(231)
Interest paid	(965)	(882)
Income taxes paid (net of refunds)	(675)	(565)
Acquisition and other costs paid	(155)	(126)
Net change in operating assets and liabilities	480	286
Cash flows from operating activities	7,358	6,643
Cash flows used in investing activities
Capital expenditures	(4,034)	(3,771)
Business acquisitions	(1,649)	(404)
Disposition of intangibles and other assets	323	0
Decrease in investments	6	107
Loan to related party	0	(517)
Other investing activities	(83)	1
Cash flows used in investing activities	(5,437)	(4,584)
Cash flows used in financing activities
Increase in notes payable	333	991
Issue of long-term debt	3,011	2,244
Repayment of long-term debt	(2,653)	(2,516)
Issue of common shares	117	99
Repurchase of shares for settlement of share-based payments	(224)	(106)
Cash dividends paid on common shares	(2,512)	(2,305)
Cash dividends paid on preferred shares	(127)	(126)
Cash dividends paid by subsidiaries to non-controlling interest	(34)	(46)
Other financing activities	(60)	(54)
Cash flows used in financing activities	(2,149)	(1,819)
Net (decrease) increase in cash	(161)	503
Cash at beginning of year	603	100
Cash at end of year	442	603
Net decrease in cash equivalents	(67)	(263)
Cash equivalents at beginning of year	250	513
Cash equivalents at end of year	$ 183	$ 250

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Corporate information

12 Months Ended

Dec. 31, 2017

Corporate Information And Statement Of IFRS Compliance [Abstract]

Corporate information

We, us, our, BCE and the company mean, as the context may require, either BCE Inc. or, collectively, BCE Inc., Bell Canada, their subsidiaries, joint arrangements and associates. MTS means, as the context may require, until March 17, 2017, either Manitoba Telecom Services Inc. or, collectively, Manitoba Telecom Services Inc. and its subsidiaries; and Bell MTS means, from March 17, 2017, the combined operations of MTS and Bell Canada in Manitoba.

Note 1 Corporate information

BCE is incorporated and domiciled in Canada. BCE’s head office is located at 1, Carrefour Alexander-Graham-Bell, Verdun, Québec, Canada. BCE is a telecommunications and media company providing wireless, wireline, Internet and television (TV) services to residential, business and wholesale customers nationally across Canada. Our Bell Media segment provides conventional, specialty and pay TV, digital media, radio broadcasting services and out-of-home (OOH) advertising services to customers nationally across Canada. The consolidated financial statements (financial statements) were approved by BCE’s board of directors on March 8, 2018.

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Significant accounting policies

12 Months Ended

Dec. 31, 2017

Accounting Policies, Changes In Accounting Estimates And Errors [Abstract]

Significant accounting policies

Note 2 Significant accounting policies

a) Basis of presentation

The financial statements were prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB). The financial statements have been prepared on a historical cost basis, except for certain financial 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 financial statements are presented in Canadian dollars, the company’s functional currency.

b) Basis of consolidation

We consolidate the financial statements of all of 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 significantly affect the investee’s returns.

The results of subsidiaries acquired during the year are consolidated from the date of acquisition and the results of subsidiaries sold during the year are deconsolidated from the date of disposal. Where necessary, adjustments are made to the financial statements of acquired subsidiaries to conform their accounting policies to ours. All intercompany transactions, balances, income and expenses are eliminated on consolidation.

Changes in BCE’s ownership interest in a subsidiary that do not result in a change of control are accounted for as equity transactions, with no effect on net earnings or on other comprehensive (loss) income.

c) Revenue recognition

We recognize revenues from the sale of products or the rendering of services when they are earned; specifically when all the following conditions are met:

• the significant 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 benefits associated with the transaction will flow 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

• advertising revenue, net of agency commissions, when advertisements are aired on radio or TV, posted on ourwebsite or appear on the company’s advertising panels and street furniture

We measure revenues at the fair value of the arrangement consideration. 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 in the consolidated statements of financial position (statements of financial 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 specified 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 share-based payment arrangements include stock options, restricted share units and performance share units (RSUs/PSUs), deferred share units (DSUs), an employee savings plan (ESP) and a deferred share plan (DSP).

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. We recognize compensation expense in Operating costs in the consolidated income statements (income statements). Compensation expense is adjusted for subsequent changes in management’s 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 received and the amounts previously credited to contributed surplus.

RSUs/PSUs

For each RSU/PSU granted, we recognize compensation expense in Operating costs in the income statements, equal to the market value of a BCE common share at the date of grant and based on the number of RSUs/PSUs expected to vest, recognized over the term of the vesting period, with a corresponding credit to contributed surplus. Additional RSUs/PSUs are issued to reflect dividends declared on the common shares.

Compensation expense is adjusted for subsequent changes in management’s estimate of the number of RSUs/PSUs that are expected to vest. The effect of these changes is recognized in the period of the change. Upon settlement of the RSUs/PSUs, any difference between the cost of shares purchased on the open market and the amount credited to contributed surplus is reflected in the deficit. Vested RSUs/PSUs 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 reflect 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 reflected in the deficit.

ESP

We recognize our ESP contributions as compensation expense in Operating costs in the income statements. We credit contributed surplus for the ESP expense recognized over the two-year vesting period, based on management’s estimate of the accrued contributions that are expected to vest. Upon settlement of shares under the ESP, any difference between the cost of shares purchased on the open market and the amount credited to contributed surplus is reflected in the deficit.

DSP

For each deferred share granted under the DSP, we recognize compensation expense in Operating costs in the income statements equal to the market value of a BCE common share and based on the number of deferred shares expected to vest, recognized over the vesting period. Additional deferred shares are issued to reflect dividends declared on the common shares.

Compensation expense is adjusted for subsequent changes in the market value of BCE common shares and any change in management’s estimate of the number of deferred shares that are expected to vest. The cumulative effect of any change in value is recognized in the period of the change. Participants have the option to receive either BCE common shares or a cash equivalent for each vested deferred share upon qualifying for payout under the terms of the grant.

e) Income and other taxes

Current and deferred income tax expense is recognized in the income statements, except to the extent that the expense relates to items recognized in other comprehensive (loss) income or directly in equity.

A current or non-current tax asset (liability) is the estimated tax receivable (payable) on taxable earnings (loss) for the current or past periods. We also record future tax liabilities, which are included in Other non-current liabilities in the statements of financial position.

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 financial position and their corresponding tax bases

• the carryforward of unused tax losses and credits, to the extent they can be used in the future

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 in the statements of financial position 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 specific identification 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 potentially obsolete, calculated using an inventory aging 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, at a rate that is based on our weighted average interest rate on our outstanding long-term debt. Gains or losses on the sale or retirement of property, plant and equipment are recorded in Other (expense) income in the income statements.

LEASES

Leases of property, plant and equipment are recognized as finance 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 classified as operating leases. We recognize operating lease expense in Operating costs in the income statements on a straight-line basis over the term of the lease.

ASSET RETIREMENT OBLIGATIONS (AROs)

We initially measure and record AROs at management’s best estimate using a present value methodology, adjusted subsequently for any changes in the timing or amount of cash flows 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 ARO and record a corresponding amount in interest expense to reflect the passage of time.

j) Intangible assets

FINITE-LIFE INTANGIBLE ASSETS

Finite-life intangible assets are recorded 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 benefits will be generated

• costs attributable to the asset can be measured reliably

CUSTOMER RELATIONSHIPS

Customer relationship assets are acquired through business combinations and are recorded at fair value at the date of acquisition.

PROGRAM AND FEATURE FILM RIGHTS

We account for program and feature film rights as intangible assets when these assets are acquired for the purpose of broadcasting. Program and feature film rights, which include producer advances and licence fees paid in advance of receipt of the program or film, are stated at acquisition cost less accumulated amortization, and accumulated impairment losses, if any. Programs and feature films under licence agreements are recorded as assets for rights acquired and Iiabilities for obligations incurred when:

• we receive a broadcast master and the cost is known or reasonably determinable for new program and feature film licences

• the licence term commences for licence period extensions or syndicated programs

Programs and feature films are classified as non-current assets with related liabilities classified as current or non-current, based on the payment terms. Amortization of program and feature film rights is recorded in Operating costs in the income statements.

INDEFINITE-LIFE INTANGIBLE ASSETS

Brand assets, mainly comprised of the Bell, Bell Media and Bell MTS 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. Borrowing costs are calculated at a rate that is based on our weighted average interest rate on our outstanding long-term debt.

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 finite-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, as required. Land and assets under construction or development are not depreciated.

	ESTIMATED USEFUL LIFE
Property, plant and equipment
Network infrastructure and equipment	2 to 40 years
Buildings	5 to 50 years
Finite-life intangible assets
Software	2 to 12 years
Customer relationships	3 to 26 years
Program and feature film rights	Up to 5 years

l) Investments in associates and joint arrangements

Our financial statements incorporate our share of the results of our associates and joint ventures using the equity method of accounting, except when the investment is classified as held for sale. Equity income from investments is recorded in Other (expense) income in the income statements.

Investments in associates and joint ventures are recognized initially at cost and adjusted thereafter to include the company’s share of income or loss and comprehensive income on an after-tax basis.

Investments are reviewed for impairment at each reporting period and we compare their recoverable amount to their carrying amount when there is an indication of impairment.

We recognize our share of the assets, liabilities, revenues and expenses of joint operations in accordance with the related contractual agreements.

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 and recorded in Severance, acquisition and other costs in the income statements.

Identifiable 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 is remeasured to fair value and any gain or loss on remeasurement is recognized in Other (expense) income in the income statements. The excess of the purchase consideration and any previously-held equity interest over the fair value of identifiable net assets acquired is recorded as Goodwill in the statements of financial position. If the fair value of identifiable net assets acquired exceeds the purchase consideration and any previously-held equity interest, the difference is recognized in Other (expense) income in the income statements 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 owner’s equity.

n) Impairment of non-financial assets

Goodwill and indefinite-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 finite-life intangible assets are tested for impairment if events or changes in circumstances, assessed at each reporting period, 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 identifiable cash inflows.

Impairment losses are recognized and measured as the excess of the carrying value of the assets over their recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs of disposal 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 asset’s 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 identifiable group of assets that generates cash inflows that are independent of the cash inflows from other assets or groups of assets.

We identify any potential impairment by comparing the carrying value of a CGU or group 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 of disposal and its value in use. Both fair value less costs of disposal and value in use are based on estimates of discounted future cash flows or other valuation methods. Cash flows 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 identifiable 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 recognized in Other (expense) income in the income statements for any excess of the carrying value of goodwill over its recoverable amount. For purposes of impairment testing of goodwill, our CGUs or groups of CGUs correspond to our reporting segments as disclosed in Note 4, Segmented information.

o) Financial instruments

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 significant 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 and recognized in Operating costs in the income statements.

AVAILABLE-FOR-SALE (AFS) FINANCIAL ASSETS

Our portfolio investments in equity securities are classified as AFS and are presented in our statements of financial position as Other non-current assets. They have been designated as such based on management’s intentions or because they are not classified 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 (loss) income in the consolidated statements of comprehensive income (statements of comprehensive income) and are reclassified to Other (expense) income in the income statements when realized or when an impairment is determined.

OTHER FINANCIAL LIABILITIES

Other financial 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 reflected in the consolidated statements of changes in equity as a charge to the deficit.

p) Derivative financial instruments

We use derivative financial instruments to manage interest rate risk, foreign currency risk and cash flow exposures related to share-based payment plans, capital expenditures, long-term debt instruments and operating revenues and expenses. We do not use derivative financial instruments for speculative or trading purposes.

HEDGE ACCOUNTING

To qualify for hedge accounting, we document the relationship between the derivative and the related identified risk exposure, and our risk management objective and strategy. This includes associating each derivative to a specific asset or liability, a specific firm commitment, anticipated purchases or sales.

We assess the effectiveness of a derivative in managing an identified 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

We enter into interest rate swaps to manage the effect of changes in interest rates relating to fixed-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 in the statements of financial position 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

We enter into cash flow hedges to mitigate foreign currency risk on certain debt instruments and anticipated purchases and sales, as well as interest rate risk related to future debt issuances. We use foreign currency forward contracts to manage the exposure to anticipated purchases and sales denominated in foreign currencies.

Changes in the fair value of foreign currency forward contracts related to anticipated purchases and sales are recognized in our statements of comprehensive income, except for any ineffective portion, which is recognized immediately in Other (expense) income in the income statements. Realized gains and losses in Accumulated other comprehensive income are reclassified to the income statements or as an adjustment to the cost basis of the hedged item in the same periods as the corresponding hedged transactions are recognized. Cash flow hedges that mature within one year are included in Other current assets or Trade payables and other liabilities in the statements of financial position, whereas hedges that have a maturity of more than one year are included in Other non-current assets or Other non-current liabilities.

We use cross currency basis swaps and foreign currency forward contracts to manage our U.S. dollar borrowings under our unsecured committed term credit facility and U.S. commercial paper program. Changes in the fair value of these derivatives and the related borrowings are recognized in Other (expense) income in the income statements and offset, unless a portion of the hedging relationship is ineffective.

DERIVATIVES USED AS ECONOMIC HEDGES

We use derivatives to manage cash flow exposures related to equity-settled share-based payment plans and anticipated purchases, equity price risk related to a cash-settled share-based payment plan, and interest rate risk related to preferred share dividend rate resets. As these derivatives do not qualify for hedge accounting, the changes in their fair value are recorded in the income statements in Operating costs for derivatives used to hedge cash-settled share-based payments and in Other (expense) income for other derivatives.

q) Post-employment benefit plans

DEFINED BENEFIT (DB) AND OTHER POST-EMPLOYMENT BENEFIT (OPEB) PLANS

We maintain DB pension plans that provide pension benefits for certain employees. Benefits are based on the employee’s length of service and average rate of pay during the highest paid consecutive five years of service. Most employees are not required to contribute to the plans. Certain plans provide cost of living adjustments to help protect the income of retired employees against inflation.

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 reflect actuarial assumptions about future investment returns, salary projections, future service and life expectancy.

We provide OPEBs to some of our employees, including:

• healthcare and life insurance benefits during retirement, which were phased out for new retirees over a ten-year period ending on December 31, 2016. We do not fund most of these OPEB plans.

• other benefits, including workers’ compensation and medical benefits to former or inactive employees, their beneficiaries 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 benefit plans, net of the fair value of the benefit 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 fixed income investments with maturities that match the timing of benefits expected to be paid under the plans

• management’s best estimate of pay increases, retirement ages of employees, expected healthcare costs and life expectancy

We value post-employment benefit plan assets at fair value using current market values.

Post-employment benefit plans current service cost is included in Operating costs in the income statements. Interest on our post-employment benefit assets and obligations is recognized in Finance costs in the income statements and represents the accretion of interest on the assets and obligations under our post-employment benefit 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 benefit plans are recorded in Other comprehensive (loss) income in the statements of comprehensive income in the period in which they occur and are recognized immediately in the deficit.

December 31 is the measurement date for our significant post-employment benefit plans. Our actuaries perform a valuation based on management's assumptions 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 significant pension plans was as at December 31, 2016.

DEFINED CONTRIBUTION (DC) PENSION PLANS

We maintain DC pension plans that provide certain employees with benefits. Under these plans, we are responsible for contributing a predetermined amount to an employee’s retirement savings, based on a percentage of the employee’s salary.

We recognize a post-employment benefit 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 outflow 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 specific to the obligation. The obligation increases as a result of the passage of time, resulting in interest expense which is recognized in Finance costs in the income statements.

s) Estimates and key judgments

When preparing the financial statements, management makes estimates and judgments 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 judgments are subject to measurement uncertainty and actual results could differ. Our more significant estimates and judgments are described below.

ESTIMATES

USEFUL LIVES OF PROPERTY, PLANT AND EQUIPMENT AND FINITE-LIFE INTANGIBLE ASSETS

Property, plant and equipment represent a significant 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.

POST-EMPLOYMENT BENEFIT PLANS

The amounts reported in the financial statements relating to DB pension plans and OPEBs are determined using actuarial calculations that are based on several assumptions.

The actuarial valuation uses management’s 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 significant assumptions used to calculate the net post-employment benefit plans cost are the discount rate and life expectancy.

The discount rate is based on the yield on long-term, high-quality corporate fixed income investments, with maturities matching the estimated cash flows of the post-employment benefit plans. Life expectancy is based on publicly available Canadian mortality tables and is adjusted for the company’s specific experience.

IMPAIRMENT OF NON-FINANCIAL ASSETS

We make a number of estimates when calculating recoverable amounts using discounted future cash flows or other valuation methods to test for impairment. These estimates include the assumed growth rates for future cash flows, the number of years used in the cash flow model and the discount rate.

DEFERRED TAXES

The amount of deferred tax assets and liabilities are estimated with consideration given to the timing, sources and amounts of future taxable income.

FAIR VALUE OF FINANCIAL INSTRUMENTS

Certain financial instruments, such as investments in equity securities, derivative financial instruments and certain elements of borrowings, are carried in the statements of financial position at fair value, with changes in fair value reflected 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 flows and earnings multiples.

CONTINGENCIES

In the ordinary course of business, we become involved in various claims and legal proceedings seeking monetary damages and other relief. Pending claims and legal proceedings 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 unavoidable costs of meeting our obligations under a contract exceed the expected benefits to be received under the 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.

JUDGMENTS

POST-EMPLOYMENT BENEFIT PLANS

The determination of the discount rate used to value our post-employment benefit obligations requires judgment. The rate is set by reference to market yields of high-quality corporate fixed income investments at the beginning of each fiscal year. Significant judgment is required when setting the criteria for fixed income investments to be included in the population from which the yield curve is derived. The most significant criteria considered for the selection of investments include the size of the issue and credit quality, along with the identification of outliers, which are excluded.

INCOME TAXES

The calculation of income taxes requires judgment in interpreting tax rules and regulations. There are transactions and calculations for which the ultimate tax determination is uncertain. Our tax filings are also subject to audits, the outcome of which could change the amount of current and deferred tax assets and liabilities.

Management judgment is used to determine the amounts of deferred tax assets and liabilities and future tax liabilities to be recognized. In particular, judgment 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 judgment to establish the separately identifiable components and the allocation of the total price between those components.

CGUs

The determination of CGUs or groups of CGUs for the purpose of impairment testing requires judgment.

CONTINGENCIES

The determination of whether a loss is probable from claims and legal proceedings and whether an outflow of resources is likely requires judgment.

t) Change in accounting estimate

In 2017 and 2016, as part of our ongoing annual review of property, plant and equipment and finite-life intangible assets, and to better reflect their useful lives, we increased the estimate of useful lives of certain assets. The changes have been applied prospectively effective January 1, 2017 and January 1, 2016, and did not have a significant impact on our financial statements.

u) Adoption of amended accounting standards

As required, effective January 1, 2017, we adopted the following amended accounting standard.

STANDARD	DESCRIPTION	IMPACT
Amendments to IAS 7 – Statement of Cash Flows	Requires enhanced disclosures about changes in liabilities arising from financing activities, including changes from financing cash flows, changes arising from obtaining or losing control of subsidiaries or other businesses, the effect of changes in foreign exchange rates and changes in fair values.	The required enhanced disclosures have been provided in Note 27, Additional cash flow information.

v) Future changes to accounting standards

The following new or amended standards and interpretation issued by the IASB have an effective date after December 31, 2017 and have not yet been adopted by BCE.

STANDARD	DESCRIPTION	IMPACT	EFFECTIVE DATE
IFRS 15 – Revenue from Contracts with Customers	Establishes principles to record revenues from contracts for the sale of goods or services, unless the contracts are in the scope of IAS 17 – Leases or other IFRSs. Under IFRS 15, revenue is recognized at an amount that reflects the expected consideration receivable in exchange for transferring goods or services to a customer, applying the following five steps: 1. Identify the contract with a  customer 2. Identify the performance obligations in the contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations in the contract 5. Recognize revenue when (or as) the entity satisfies a performance obligation The new standard also provides guidance relating to principal versus agent relationships, licences of intellectual property, contract costs and the measurement and recognition of gains and losses on the sale of certain non-financial assets such as property and equipment. Additional disclosures will also be required under the new standard.	IFRS 15 will principally affect the timing of revenue recognition and how we classify revenues between product and service in our Bell Wireless segment. IFRS 15 will also affect how we account for costs to obtain a contract. • Under multiple-element arrangements, revenue allocated to a satisfied performance obligation will no longer be limited to the amount that is not contingent upon the satisfaction of additional performance obligations. Although the total revenue recognized during the term of a contract will be largely unaffected, revenue recognition may be accelerated and reflected ahead of the associated cash inflows. This will result in the recognition of a contract asset on the balance sheet, corresponding to the amount of revenue recognized and not yet billed to a customer. The contract asset will be realized over the term of the customer contract. • As revenues allocated to a satisfied performance obligation are no longer limited to the non-contingent amount, a greater proportion of the total revenue recognized during the term of certain customer contracts will be attributed to a delivered product, resulting in a corresponding decrease in service revenue. • Sales commissions and any other incremental costs of obtaining a contract with a customer will be recognized on the balance sheet and amortized on a systematic basis that is consistent with the period and pattern of transfer to the customer of the related products or services, except as noted below. Under IFRS 15, certain practical expedients are permitted both on transition and on an ongoing basis. • On transition, completed contracts that begin and end within the same annual reporting period and those completed before January 1, 2017 are not restated. Similarly, contracts modified prior to January 1, 2017 are not restated. • When our right to consideration from a customer corresponds directly with the value to the customer of the products and services transferred to date, we will recognize revenue in the amount to which we have a right to invoice. • Costs of obtaining a contract that would be amortized within one year or less will be immediately expensed. We continue to make progress towards adoption of IFRS 15 according to our detailed implementation plan. Changes and enhancements to our existing information technology (IT) systems, business processes, and systems of internal control are being completed. A dedicated project team that leverages key resources throughout the company is in place to effect the necessary changes.	Annual periods beginning on or after January 1, 2018, using a full retrospective approach for all periods presented in the period of adoption.

		While our testing and data validation process is ongoing, we expect that the impact of the new standard will be most pronounced in our Bell Wireless segment. • Although total revenue recognized over the term of a customer contract is not expected to change significantly, our preliminary estimate of the impact of adopting IFRS 15 is a decrease in 2017 service revenues within the range of $1.2 billion to $1.4 billion, with a corresponding increase in product revenue. • Total operating revenues less operating costs in 2017 is estimated to increase by approximately $0.1 billion. • Total assets on our January 1, 2017 statement of financial position will increase as we record contract assets and costs to obtain a contract. We currently estimate the value of the gross contract assets to be in the range of $1.1 billion to $1.3 billion and an increase in costs to obtain a contract of approximately $0.3 billion to $0.4 billion, both of which would be recognized through an adjustment to opening retained earnings. • Total liabilities will increase mainly to reflect a resulting $0.4 billion deferred tax liability, also recognized through an adjustment to opening retained earnings. • We do not expect that IFRS 15 will impact our cash flows from operating activities.
Amendments to IFRS 2 – Share-based Payment	Clarifies the classification and measurement of cash-settled share-based payment transactions that include a performance condition, share-based payment transactions with a net settlement feature for withholding tax obligations, and modifications of a share-based payment transaction from cash-settled to equity-settled.	The amendments to IFRS 2 will not have a significant impact on our financial statements.	Annual periods beginning on or after January 1, 2018.
IFRS 9 – Financial Instruments	Sets out the requirements for recognizing and measuring financial assets, financial liabilities and some contracts to buy and sell non-financial items. IFRS 9 replaces IAS 39 – Financial Instruments: Recognition and Measurement. The new standard establishes a single classification and measurement approach for financial assets that reflects the business model in which they are managed and their cash flow characteristics. It also provides guidance on an entity’s own credit risk relating to financial liabilities and modifies the hedge accounting model to better link the economics of risk management with its accounting treatment. Additional disclosures will also be required under the new standard.	The amendments to IFRS 9 will not have a significant impact on our financial statements.	Annual periods beginning on or after January 1, 2018.

IFRS 16 – Leases	Eliminates the distinction between operating and finance leases for lessees, requiring instead that leases be capitalized by recognizing the present value of the lease payments and showing them either as lease assets (right-of-use assets) or together with property, plant and equipment. If lease payments are made over time, an entity recognizes a financial liability representing its obligation to make future lease payments. A depreciation charge for the lease asset is recorded within operating costs and an interest expense on the lease liability is recorded within finance costs. IFRS 16 does not require a lessee to recognize assets and liabilities for short-term leases and leases of low-value assets, nor does it substantially change lease accounting for lessors.	We continue to make progress towards adoption of IFRS 16 according to our detailed implementation plan. Changes and enhancements to our existing IT systems, business processes and systems of internal control are being designed and tested. It is not yet possible to make a reliable estimate of the impact of the new standard on our financial statements.	Annual periods beginning on or after January 1, 2019, using either a full retrospective approach for all periods presented in the period of adoption or a modified retrospective approach.
International Financial Reporting Interpretations Committee (IFRIC) 23 – Uncertainty over Income Tax Treatments	IFRIC 23 clarifies the application of recognition and measurement requirements in IAS 12 - Income Taxes when there is uncertainty over income tax treatments. It specifically addresses whether an entity considers uncertain tax treatments separately or as a group, the assumptions an entity makes about the examination of tax treatments by taxation authorities, how an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates and how an entity considers changes in facts and circumstances.	We are currently evaluating the impact of IFRIC 23 on our financial statements.	Annual periods beginning on or after January 1, 2019, using either a full retrospective or a modified retrospective approach.

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Business acquisitions and dispositions

12 Months Ended

Dec. 31, 2017

Business Combinations1 [Abstract]

Business acquisitions and dispositions

Note 3 Business acquisitions and dispositions

2017

Acquisition of MTS

On March 17, 2017, BCE acquired all of the issued and outstanding common shares of MTS for a total consideration of $2,933 million, of which $1,339 million was paid in cash and the remaining $1,594 million through the issuance of approximately 27.6 million BCE common shares. BCE funded the cash component of the transaction through debt financing.

Bell MTS is an information and communications technology provider offering wireless, Internet, TV, phone services, security systems and information solutions including unified cloud and managed services to residential and business customers in Manitoba.

The acquisition of MTS allows us to reach more Canadians through the expansion of our wireless and wireline broadband networks while supporting our goal of being recognized by customers as Canada’s leading communications company.

The results from the acquired MTS operations are included in our Bell Wireline and Bell Wireless segments from the date of acquisition.

The following table summarizes the fair value of the consideration paid and the fair value assigned to each major class of assets and liabilities.

	Total
Cash consideration	1,339
Issuance of 27.6 million BCE common shares (1)	1,594
Total cost to be allocated	2,933
Trade and other receivables	91
Other non-cash working capital	(164	)
Assets held for sale (2)	302
Property, plant and equipment	978
Finite-life intangible assets (3)	979
Indefinite-life intangible assets (4)	280
Deferred tax assets	32
Other non-current assets	129
Debt due within one year	(251	)
Long-term debt	(721	)
Other non-current liabilities	(49	)
	1,606
Cash and cash equivalents	(16	)
Fair value of net assets acquired	1,590
Goodwill (5)	1,343

(1) Recorded at fair value based on the market price of BCE common shares on the acquisition date.

(2) Consists of finite-life and indefinite-life intangible assets recorded at fair value less costs to sell.

(3) Consists mainly of customer relationships.

(4) Indefinite-life intangible assets of $228 million and $52 million were allocated to our Bell Wireless and Bell Wireline groups of cash generating units (CGUs), respectively.

(5) Goodwill arises principally from the assembled workforce, expected synergies and future growth. Goodwill is not deductible for tax purposes. Goodwill arising from the transaction of $677 million and $666 million was allocated to our Bell Wireless and Bell Wireline groups of CGUs, respectively.

As a result of the acquisition of MTS, we acquired non-capital tax loss carryforwards of approximately $1.5 billion and recognized a deferred tax asset of approximately $300 million which was realized in 2017.

Revenues of $728 million and net earnings of $87 million from the acquired MTS operations are included in the consolidated income statements from the date of acquisition. BCE’s consolidated operating revenues and net earnings for the year ended December 31, 2017 would have been $22,913 million and $2,978 million, respectively, had the acquisition of MTS occurred on January 1, 2017. These proforma amounts reflect the elimination of intercompany transactions, financing costs and the amortization of certain elements of the purchase price allocation and related tax adjustments.

During Q2 2017, BCE completed the previously announced divestiture of approximately one-quarter of postpaid wireless subscribers and 15 retail locations previously held by MTS, as well as certain Manitoba network assets, to TELUS Communications Inc. (TELUS) for total proceeds of $323 million.

Subsequent to the acquisition of MTS, on March 17, 2017, BCE transferred to Xplornet Communications Inc. (Xplornet) a total of 40 Megahertz (MHz) of 700 MHz, advanced wireless services-1 and 2500 MHz wireless spectrum which was previously held by MTS. BCE has also agreed to transfer to Xplornet wireless customers once Xplornet launches its mobile wireless service.

Acquisition of Cieslok Media Ltd. (Cieslok Media)

On January 3, 2017, BCE acquired all of the issued and outstanding common shares of Cieslok Media for a total cash consideration of $161 million.

Cieslok Media specializes in large-format outdoor advertising in key urban areas across Canada. This acquisition will contribute to growing and strengthening our digital presence in out-of-home advertising. Cieslok Media is included in our Bell Media segment in our consolidated financial statements.

The following table summarizes the fair value of the consideration paid and the fair value assigned to each major class of assets and liabilities.

	TOTAL
Cash consideration	161
Total cost to be allocated	161
Trade and other receivables	11
Other non-cash working capital	(4	)
Property, plant and equipment	13
Finite-life intangible assets	6
Indefinite-life intangible assets	76
Deferred tax liabilities	(20	)
Other non-current liabilities	(1	)
	81
Cash and cash equivalents	1
Fair value of net assets acquired	82
Goodwill (1)	79

(1) Goodwill arises principally from the assembled workforce, expected synergies and future growth. Goodwill is not deductible for tax purposes. The goodwill arising from the transaction was allocated to our Bell Media group of CGUs.

The transaction did not have a significant impact on our consolidated operating revenues and net earnings for the year ended December 31, 2017.

Acquisition of AlarmForce Industries Inc. (AlarmForce)

Subsequent to year end, on January 5, 2018, BCE acquired all of the issued and outstanding shares of AlarmForce for a total consideration of $182 million, of which $181 million was paid in cash and the remaining $1 million through the issuance of 22,531 BCE common shares.

Subsequent to the acquisition of AlarmForce, on January 5, 2018, BCE sold AlarmForce's approximate 39,000 customer accounts in British Columbia, Alberta and Saskatchewan to TELUS for total proceeds of approximately $67 million subject to customary closing adjustments.

AlarmForce provides security alarm monitoring, personal emergency response monitoring, video surveillance and related services to residential and commercial subscribers. The acquisition of AlarmForce supports our strategic expansion in the Connected Home marketplace.

AlarmForce will be included in our Bell Wireline segment in our consolidated financial statements.

The fair values of AlarmForce's assets and liabilities have not yet been determined.

Proposed acquisition of Séries+ and Historia specialty channels

On October 17, 2017, BCE entered into an agreement with Corus Entertainment Inc. (Corus) to acquire French-language specialty channels Séries+ and Historia. The transaction is valued at approximately $200 million. Subject to closing conditions, including approval by the CRTC and the Competition Bureau, the transaction is expected to close in mid-2018.

Séries+ is a fiction channel, offering locally produced dramas as well as foreign series. Historia broadcasts a suite of locally produced original content including documentaries, reality series and drama series.

The acquisition of Séries+ and Historia is expected to further enhance our competitiveness in the Québec media landscape.

2016

Acquisition of Q9 Networks Inc. (Q9)

On October 3, 2016, BCE acquired the remaining 64.6% of the issued and outstanding shares of Q9 that it did not already own for a total cash consideration of approximately $170 million.

Q9 is a Toronto-based data centre operator providing outsourced hosting and other data solutions to Canadian business and government customers. The acquisition supports BCE’s ability to compete against domestic and international providers in the growing outsourced data services sector. Q9 is included in our Bell Wireline segment in our financial statements.

The following table summarizes the fair value of the consideration paid and the fair value assigned to each major class of assets and liabilities.

	TOTAL
Cash consideration	170
Fair value of previously held interest in Q9 and favourable purchase option	131
Note receivable from Q9	517
Total cost to be allocated	818
Trade and other receivables	19
Other non-cash working capital	(39	)
Property, plant and equipment	311
Finite-life intangible assets	267
Long-term debt	(7	)
Deferred tax liabilities	(69	)
Other non-current liabilities	(16	)
	466
Cash and cash equivalents	12
Fair value of net assets acquired	478
Goodwill (1)	340

(1) Goodwill arises principally from the assembled workforce, expected synergies and future growth. Goodwill is not deductible for tax purposes. The goodwill arising from the transaction was allocated to our Bell Wireline group of CGUs.

In 2016, prior to the acquisition of Q9, BCE provided a loan of $517 million to Q9 mainly for the repayment of certain of its debt.

A gain on investment of $12 million was recognized in Other (expense) income in the income statements in 2016 from remeasuring BCE's previously held equity interest in Q9 to its fair value.

Revenues of $29 million and net earnings of $2 million were included in the income statements in 2016 from the date of acquisition. BCE's consolidated operating revenues and net earnings for the year ended December 31, 2016 would have been $21,801 million and $3,038 million, respectively, had the Q9 acquisition occurred on January 1, 2016. These proforma amounts reflect the elimination of intercompany transactions and earnings related to our previously held interest, the amortization of certain elements of the purchase price allocation and related tax adjustments.

National expansion of HBO and The Movie Network (TMN)

In Q1 2016, BCE completed a transaction with Corus under which Corus waived its HBO content rights in Canada and ceased operations of its Movie Central and Encore Avenue pay TV services in Western and Northern Canada, thereby allowing Bell Media to become the sole operator of HBO Canada nationally across all platforms and to expand TMN into a national pay TV service. TMN was successfully launched nationally on March 1, 2016. BCE paid to Corus a total cash consideration of $218 million, of which $21 million was paid in 2015.

The following table summarizes the fair value of the consideration paid and the fair value assigned to each major class of assets and liabilities.

	TOTAL
Cash consideration	218
Finite-life intangible assets	8
Non-current assets	1
Current liabilities	(3	)
Non-current liabilities	(8	)
Fair value of net assets acquired	(2	)
Goodwill (1)	220

(1) Goodwillarises principally from the ability to leverage media content and expected future growth. The amount of goodwill deductible for tax purposes is $163 million at a 7% annual rate declining balance. The goodwill arising from the transaction was allocated to our Bell Media group of CGUs.

The transaction is part of our strategy to create, negotiate and deliver premium TV programming to Canadian consumers across more platforms on a national basis.

This transaction did not have a significant impact on our consolidated operating revenues and net earnings for the year ended December 31, 2016.

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Segmented information

12 Months Ended

Dec. 31, 2017

Operating Segments [Abstract]

Segmented information

Note 4 Segmented information

The accounting policies used in our segment reporting are the same as those we describe in Note 2, Significant accounting policies. Our results are reported in three segments: Bell Wireless, Bell Wireline and Bell Media. Our segments reflect 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 profit, 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 finance costs and other (expense) income are managed on a corporate basis and, accordingly, are not reflected in segment results.

Substantially all of our operations and assets are located in Canada.

On March 17, 2017, BCE acquired all of the issued and outstanding common shares of MTS. The results from the acquired MTS operations are included in our Bell Wireless and Bell Wireline segments from the date of acquisition.

Our Bell Wireless segment provides wireless voice and data communication products and services to our residential, small and medium-sized business and large enterprise customers across Canada.

Our Bell Wireline segment provides data, including Internet access and Internet protocol television, local telephone, long distance, as well as other communications services and products to our residential, small and medium-sized business and large enterprise customers primarily in Ontario, Québec, the Atlantic provinces and Manitoba, while satellite TV service and connectivity to business customers are available nationally across Canada. 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 Media segment provides conventional, specialty and pay TV, digital media, radio broadcasting services and out-of-home advertising services to customers nationally across Canada.

Segmented information

FOR THE YEAR ENDED DECEMBER 31, 2017	NOTE	BELL WIRELESS		BELL WIRELINE		BELL MEDIA		INTER- SEGMENT ELIMINA- TIONS		BCE
Operating revenues
External customers		7,838		12,205		2,676		—		22,719
Inter-segment		45		210		428		(683	)	—
Total operating revenues		7,883		12,415		3,104		(683	)	22,719
Operating costs	5	(4,607	)	(7,229	)	(2,388	)	683		(13,541	)
Segment profit (1)		3,276		5,186		716		—		9,178
Severance, acquisition and other costs	6	(18	)	(150	)	(22	)	—		(190	)
Depreciation and amortization	13, 14	(603	)	(3,102	)	(145	)	—		(3,850	)
Finance costs
Interest expense	7									(955	)
Interest on post-employment benefit     obligations	22									(72	)
Other expense	8									(102	)
Income taxes	9									(1,039	)
Net earnings										2,970
Goodwill	17	3,032		4,497		2,899		—		10,428
Indefinite-life intangible assets	14	3,891		1,692		2,645		—		8,228
Capital expenditures		731		3,174		129		—		4,034

(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.

FOR THE YEAR ENDED DECEMBER 31, 2016		NOTE	BELL WIRELESS		BELL WIRELINE		BELL MEDIA		INTER- SEGMENT ELIMINA- TIONS		BCE
Operating revenues
	External customers		7,117		11,917		2,685		—		21,719
	Inter-segment		42		187		396		(625	)	—
Total operating revenues			7,159		12,104		3,081		(625	)	21,719
Operating costs		5	(4,156	)	(7,062	)	(2,338	)	625		(12,931	)
Segment profit (1)			3,003		5,042		743		—		8,788
Severance, acquisition and other costs		6	(6	)	(130	)	1		—		(135	)
Depreciation and amortization		13, 14	(555	)	(2,816	)	(137	)	—		(3,508	)
Finance costs
	Interest expense	7									(888	)
	Interest on post-employment benefit obligations	22									(81	)
Other income		8									21
Income taxes		9									(1,110	)
Net earnings											3,087
Goodwill		17	2,304		3,831		2,823		—		8,958
Indefinite-life intangible assets		14	3,663		1,640		2,640		—		7,943
Capital expenditures			733		2,936		102		—		3,771

(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.

Revenues by services and products

FOR THE YEAR ENDED DECEMBER 31	2017	2016
Services
Wireless	7,308	6,602
Data	7,146	6,791
Local and access	3,161	3,089
Long distance	639	741
Media	2,676	2,685
Other services	213	182
Total services	21,143	20,090
Products
Wireless	530	515
Data	519	559
Equipment and other	527	555
Total products	1,576	1,629
Total operating revenues	22,719	21,719

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Operating costs

12 Months Ended

Dec. 31, 2017

Analysis of income and expense [abstract]

Operating costs

Note 5 Operating costs

FOR THE YEAR ENDED DECEMBER 31		NOTE	2017		2016
Labour costs
	Wages, salaries and related taxes and benefits		(4,158	)	(4,016	)
	Post-employment benefit plans service cost (net of capitalized amounts)	22	(242	)	(224	)
	Other labour costs (1)		(1,056	)	(1,036	)
Less:
	Capitalized labour		1,043		967
Total labour costs			(4,413	)	(4,309	)
Cost of revenues (2)			(7,056	)	(6,705	)
Other operating costs (3)			(2,072	)	(1,917	)
Total operating costs			(13,541	)	(12,931	)

(1) Other labour costs include contractor and outsourcing costs.

(2) Cost of revenues includes costs of wireless devices and other equipment sold, network and content costs, and payments to other carriers.

(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.

Research and development expenses of $119 million and $147 million are included in operating costs for 2017 and 2016, respectively.

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Severance, acquisition and other costs

12 Months Ended

Dec. 31, 2017

Analysis of income and expense [abstract]

Severance, acquisition and other costs

Note 6 Severance, acquisition and other costs

FOR THE YEAR ENDED DECEMBER 31	2017		2016
Severance	(79	)	(87	)
Acquisition and other	(111	)	(48	)
Total severance, acquisition and other costs	(190	)	(135	)

Severance costs

Severance costs consist of charges related to involuntary and voluntary employee terminations.

Acquisition and other costs

Acquisition and other costs consist of transaction costs, such as legal and financial advisory fees, related to completed or potential acquisitions, employee severance costs related to the purchase of a business, the costs to integrate acquired companies into our operations and litigation costs, when they are significant. Acquisition costs also include a loss on transfer of spectrum licences relating to the MTS acquisition in 2017 and severance and integration costs relating to the privatization of Bell Aliant Inc.

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Interest expense

12 Months Ended

Dec. 31, 2017

Borrowing costs [abstract]

Interest expense

Note 7 Interest expense

FOR THE YEAR ENDED DECEMBER 31	2017		2016
Interest expense on long-term debt	(898	)	(852	)
Interest expense on other debt	(101	)	(86	)
Capitalized interest	44		50
Total interest expense	(955	)	(888	)

Interest expense on long-term debt includes interest on finance leases of $145 million and $153 million for 2017 and 2016, respectively.

Capitalized interest was calculated using an average rate of 3.81% and 3.95% for 2017 and 2016, respectively, which represents the weighted average interest rate on our outstanding long-term debt.

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Other (expense) income

12 Months Ended

Dec. 31, 2017

Analysis of income and expense [abstract]

Other (expense) income

Note 8 Other (expense) income

FOR THE YEAR ENDED DECEMBER 31		NOTE	2017		2016
Net mark-to-market gains on derivatives used as economic hedges			88		67
Impairment of assets		13, 14	(82	)	(9	)
Losses on retirements and disposals of property, plant and equipment and intangible assets			(47	)	(28	)
Equity losses from investments in associates and joint ventures		15
	Loss on investment		(22	)	(57	)
	Operations		(9	)	(32	)
Early debt redemption costs		20	(20	)	(11	)
(Losses) gains on investments			(5	)	58
Other			(5	)	33
Total other (expense) income			(102	)	21

Impairment of assets

In 2017, we recorded impairment charges of $82 million, of which $70 million was allocated to indefinite-life intangible assets, and $12 million to finite-life intangible assets. The impairment charges relate to our music TV channels and two small market radio station CGUs within our Bell Media segment. These impairments were the result of revenue and profitability declines from lower audience levels. The charges were determined by comparing the carrying value of the CGUs to their fair value less costs of disposal. We estimated the fair value of the CGUs using both discounted cash flows and market-based valuation models, which include five-year cash flow projections derived from business plans reviewed by senior management for the period of January 1, 2018 to December 31, 2022, using a discount rate of 8.5% and a perpetuity growth rate of nil, as well as market multiple data from public companies and market transactions. The carrying value of these CGUs was $67 million at December 31, 2017.

Equity losses from investments in associates and joint ventures

In 2017 and 2016, we recorded a loss on investment of $20 million and $11 million, respectively, related to equity losses on our share of an obligation to repurchase at fair value the minority interest in one of BCE’s joint ventures. The obligation is marked to market each reporting period and the gain or loss on investment is recorded as equity gains or losses from investments in associates and joint ventures.

In 2016, we also recorded a loss on investment of $46 million related to BCE’s share of the loss recorded by one of our equity investments on the sale of a portion of its operations.

(Losses) gains on investments

In 2016, BCE recorded gains on investments of $58 million which included a gain related to one of our equity investments of $34 million, as well as a gain on investment of $12 million due to the remeasurement of BCE’s previously held equity interest in Q9 to its fair value. See Note 3, Business acquisitions and dispositions for additional details.

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Income taxes

12 Months Ended

Dec. 31, 2017

Income Taxes [Abstract]

Income taxes

Note 9 Income taxes

The following table shows the significant components of income taxes deducted from net earnings.

FOR THE YEAR ENDED DECEMBER 31		2017		2016
Current taxes
	Current taxes	(758	)	(850	)
	Uncertain tax positions	(9	)	(14	)
	Change in estimate relating to prior periods	40		14
	Other	—		(1	)
Deferred taxes
	Deferred taxes relating to the origination and reversal of temporary differences	(41	)	(299	)
	Change in estimate relating to prior periods	11		32
	Recognition and utilization of loss carryforwards	(304	)	(1	)
	Effect of change in provincial corporate tax rate	(3	)	4
	Resolution of uncertain tax positions	25		5
Total income taxes		(1,039	)	(1,110	)

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 27.1% for 2017 and 2016.

FOR THE YEAR ENDED DECEMBER 31	2017		2016
Net earnings	2,970		3,087
Add back income taxes	1,039		1,110
Earnings before income taxes	4,009		4,197
Applicable statutory tax rate	27.1	%	27.1	%
Income taxes computed at applicable statutory rates	(1,086	)	(1,137	)
Non-taxable portion of (losses) gains on investments	(1	)	11
Uncertain tax positions	16		(9	)
Effect of change in provincial corporate tax rate	(3	)	4
Change in estimate relating to prior periods	51		46
Non-taxable portion of equity losses	(10	)	(23	)
Other	(6	)	(2	)
Total income taxes	(1,039	)	(1,110	)
Average effective tax rate	25.9	%	26.4	%

The following table shows aggregate current and deferred taxes relating to items recognized outside the income statements.

FOR THE YEAR ENDED DECEMBER 31	2017		2016
	OTHER COMPREHENSIVE LOSS	DEFICIT	OTHER COMPREHENSIVE LOSS		DEFICIT
Current taxes	10	9	127		11
Deferred taxes	103	2	(32	)	6
Total income tax recovery	113	11	95		17

The following table shows deferred taxes resulting from temporary differences between the carrying amounts of assets and liabilities recognized in the statements of financial position and their corresponding tax basis, as well as tax loss carryforwards.

NET DEFERRED TAX LIABILITY	NOTE	NON- CAPITAL LOSS CARRY- FORWARDS		POST EMPLOYMENT BENEFIT PLANS		INDEFINITE- LIFE INTANGIBLE ASSETS		PROPERTY, PLANT AND EQUIPMENT AND FINITE- LIFE INTANGIBLE ASSETS		INVESTMENT TAX CREDITS		CRTC TANGIBLE BENEFITS		OTHER		TOTAL
January 1, 2016		12		520		(1,619	)	(968	)	(6	)	61		265		(1,735	)
Income statement		(1	)	(28	)	(61	)	(152	)	(3	)	(17	)	3		(259	)
Business acquisitions		10		—		—		(79	)	—		—		(6	)	(75	)
Other comprehensive income		—		(38	)	—		—		—		—		6		(32	)
Deficit		—		—		—		—		—		—		6		6
Other		—		—		—		—		—		—		(8	)	(8	)
December 31, 2016		21		454		(1,680	)	(1,199	)	(9	)	44		266		(2,103	)
Income statement		(304	)	(31	)	(8	)	12		7		(14	)	26		(312	)
Business acquisitions	3	300		(11	)	(73	)	(223	)	(5	)	—		24		12
Other comprehensive income		—		82		—		—		—		—		21		103
Deficit		—		—		—		—		—		—		2		2
Other		—		—		—		(3	)	—		—		(2	)	(5	)
December 31, 2017		17		494		(1,761	)	(1,413	)	(7	)	30		337		(2,303	)

At December 31, 2017, BCE had $208 million of non-capital loss carryforwards. We:

• recognized a deferred tax asset of $17 million for $64 million of the non-capital loss carryforwards. These non-capital loss carryforwards expire in varying annual amounts from 2029 to 2037.

• did not recognize a deferred tax asset for $144 million of non-capital loss carryforwards. This balance expires in varying annual amounts from 2023 to 2037.

At December 31, 2017, BCE had $827 million of unrecognized capital loss carryforwards which can be carried forward indefinitely.

At December 31, 2016, BCE had $221 million of non-capital loss carryforwards. We:

• recognized a deferred tax asset of $21 million, of which $11 million related to Q9, for $77 million of the non-capital loss carryforwards. These non-capital loss carryforwards expire in varying annual amounts from 2029 to 2036.

• did not recognize a deferred tax asset for $144 million of non-capital loss carryforwards. This balance expires in varying annual amounts from 2023 to 2035.

At December 31, 2016, BCE had $765 million of unrecognized capital loss carryforwards which can be carried forward indefinitely.

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Earnings per share

12 Months Ended

Dec. 31, 2017

Earnings per share [abstract]

Earnings per share

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.

FOR THE YEAR ENDED DECEMBER 31		2017	2016
Net earnings attributable to common shareholders - basic		2,786	2,894
Dividends declared per common share (in dollars)		2.87	2.73
Weighted average number of common shares outstanding (in millions)
	Weighted average number of common shares outstanding - basic	894.3	869.1
	Assumed exercise of stock options(1)	0.6	1.2
Weighted average number of common shares outstanding - diluted (in millions)		894.9	870.3

(1) The calculation of the assumed exercise of stock options includes the effect of the average unrecognized future compensation cost of dilutive options. It excludes options for which the exercise price is higher than the average market value of a BCE common share. The number of excluded options was 3,031,125 in 2017 and 2,936,091 in 2016.

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Trade and other receivables

12 Months Ended

Dec. 31, 2017

Subclassifications of assets, liabilities and equities [abstract]

Trade and other receivables

Note 11 Trade and other receivables

FOR THE YEAR ENDED DECEMBER 31	NOTE	2017		2016
Trade receivables(1)		3,138		2,967
Allowance for doubtful accounts	24	(55	)	(60	)
Allowance for revenue adjustments		(80	)	(85	)
Current tax receivable		31		35
Other accounts receivable		101		122
Total trade and other receivables		3,135		2,979

(1) The details of securitized trade receivables are set out in Note 19, Debt due within one year.

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Inventory

12 Months Ended

Dec. 31, 2017

Inventories [Abstract]

Inventory

Note 12 Inventory

FOR THE YEAR ENDED DECEMBER 31	2017		2016
Finished goods	322		333
Work in progress	76		85
Provision	(18	)	(15	)
Total inventory	380		403

The total amount of inventory subsequently recognized as an expense in cost of revenues was $2,910 million and $2,689 million for 2017 and 2016, respectively.

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Property, plant and equipment

12 Months Ended

Dec. 31, 2017

Property, plant and equipment [abstract]

Property, plant and equipment

Note 13 Property, plant and equipment

FOR THE YEAR ENDED DECEMBER 31, 2017	NETWORK INFRASTRUCTURE AND EQUIPMENT		LAND AND BUILDINGS		ASSETS UNDER CONSTRUCTION		TOTAL(1)
COST
January 1, 2017	58,680		5,572		1,374		65,626
Additions	2,492		70		1,587		4,149
Acquisition through business combinations	653		264		76		993
Transfers	775		77		(1,263	)	(411	)
Retirements and disposals	(1,105	)	(22	)	—		(1,127	)
December 31, 2017	61,495		5,961		1,774		69,230
ACCUMULATED DEPRECIATION
January 1, 2017	40,233		3,047		—		43,280
Depreciation	2,816		221		—		3,037
Retirements and disposals	(1,054	)	(19	)	—		(1,073	)
Other	(39	)	(8	)	—		(47	)
December 31, 2017	41,956		3,241		—		45,197
NET CARRYING AMOUNT
January 1, 2017	18,447		2,525		1,374		22,346
December 31, 2017	19,539		2,720		1,774		24,033

(1) Includes assets under finance leases.

FOR THE YEAR ENDED DECEMBER 31, 2016	NOTE	NETWORK INFRASTRUCTURE AND EQUIPMENT		LAND AND BUILDINGS		ASSETS UNDER CONSTRUCTION		TOTAL(1)
COST
January 1, 2016		57,233		5,174		1,287		63,694
Additions		2,361		120		1,415		3,896
Acquisition through business combinations		32		282		1		315
Transfers		692		35		(1,325	)	(598	)
Retirements and disposals		(1,637	)	(39	)	(4	)	(1,680	)
Impairment losses recognized in earnings	8	(1	)	—		—		(1	)
December 31, 2016		58,680		5,572		1,374		65,626
ACCUMULATED DEPRECIATION
January 1, 2016		39,183		2,881		—		42,064
Depreciation		2,672		205		—		2,877
Retirements and disposals		(1,591	)	(35	)	—		(1,626	)
Other		(31	)	(4	)	—		(35	)
December 31, 2016		40,233		3,047		—		43,280
NET CARRYING AMOUNT
January 1, 2016		18,050		2,293		1,287		21,630
December 31, 2016		18,447		2,525		1,374		22,346

(1) Includes assets under finance leases.

Finance leases

BCE’s significant finance leases are for satellites and office premises. The office leases have a typical lease term of 22 years. The leases for satellites, used to provide programming to our Bell TV customers, have a term of 15 years.

The following table shows additions to and the net carrying amount of assets under finance leases.

FOR THE YEAR ENDED DECEMBER 31	ADDITIONS		NET CARRYING AMOUNT
	2017	2016	2017	2016
Network infrastructure and equipment	334	375	1,435	1,580
Land and buildings	2	72	467	506
Total	336	447	1,902	2,086

The following table provides a reconciliation of our minimum future lease payments to the present value of our finance lease obligations.

AT DECEMBER 31, 2017		NOTE	2018		2019		2020		2021		2022		THERE- AFTER		TOTAL
Minimum future lease payments		24	572		501		326		278		248		883		2,808
Less:
	Future finance costs		(127	)	(111	)	(96	)	(80	)	(65	)	(157	)	(636	)
Present value of future lease obligations			445		390		230		198		183		726		2,172

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Intangible assets

12 Months Ended

Dec. 31, 2017

Intangible Assets [Abstract]

Intangible assets

Note 14 Intangible assets

		FINITE-LIFE										INDEFINITE-LIFE
FOR THE YEAR ENDED DECEMBER 31, 2017	NOTE	SOFTWARE		CUSTOMER RELATION- SHIPS		PROGRAM AND FEATURE FILM RIGHTS		OTHER		TOTAL		BRANDS	SPECTRUM AND OTHER LICENCES	BROADCAST LICENCES		TOTAL		TOTAL INTANGIBLE ASSETS
COST
January 1, 2017		7,861		1,159		682		350		10,052		2,333	3,288	2,322		7,943		17,995
Additions		344		31		1,009		7		1,391		—	—	—		—		1,391
Acquired through business combinations		98		830		—		103		1,031		110	246	—		356		1,387
Transfers		407		—		—		—		407		—	—	(1	)	(1	)	406
Retirements and disposals		(21	)	(20	)	—		(55	)	(96	)	—	—	—		—		(96	)
Impairment losses recognized in earnings	8	—		—		—		(12	)	(12	)	—	—	(70	)	(70	)	(82	)
Amortization included in operating costs		—		—		(950	)	—		(950	)	—	—	—		—		(950	)
December 31, 2017		8,689		2,000		741		393		11,823		2,443	3,534	2,251		8,228		20,051
ACCUMULATED AMORTIZATION
January 1, 2017		5,316		513		—		168		5,997		—	—	—		—		5,997
Amortization		672		102		—		39		813		—	—	—		—		813
Retirements and disposals		(21	)	—		—		(52	)	(73	)	—	—	—		—		(73	)
Other		9		—		—		—		9		—	—	—		—		9
December 31, 2017		5,976		615		—		155		6,746		—	—	—		—		6,746
NET CARRYING AMOUNT
January 1, 2017		2,545		646		682		182		4,055		2,333	3,288	2,322		7,943		11,998
December 31, 2017		2,713		1,385		741		238		5,077		2,443	3,534	2,251		8,228		13,305

		FINITE-LIFE								INDEFINITE-LIFE
FOR THE YEAR ENDED DECEMBER 31, 2016	NOTE	SOFTWARE		CUSTOMER RELATION- SHIPS	PROGRAM AND FEATURE FILM RIGHTS		OTHER	TOTAL		BRANDS	SPECTRUM AND OTHER LICENCES	BROADCAST LICENCES		TOTAL		TOTAL INTANGIBLE ASSETS
COST
January 1, 2016		6,906		866	577		325	8,674		2,333	3,267	2,334		7,934		16,608
Additions		412		—	973		17	1,402		—	21	—		21		1,423
Acquired through business combinations		—		293	—		8	301		—	—	—		—		301
Transfers		615		—	—		—	615		—	—	—		—		615
Retirements and disposals		(72	)	—	—		—	(72	)	—	—	—		—		(72	)
Business dispositions		—		—	—		—	—		—	—	(4	)	(4	)	(4	)
Impairment losses recognized in earnings	8	—		—	—		—	—		—	—	(8	)	(8	)	(8	)
Amortization included in operating costs		—		—	(868	)	—	(868	)	—	—	—		—		(868	)
December 31, 2016		7,861		1,159	682		350	10,052		2,333	3,288	2,322		7,943		17,995
ACCUMULATED AMORTIZATION
January 1, 2016		4,824		466	—		142	5,432		—	—	—		—		5,432
Amortization		558		47	—		26	631		—	—	—		—		631
Retirements and disposals		(69	)	—	—		—	(69	)	—	—	—		—		(69	)
Other		3		—	—		—	3		—	—	—		—		3
December 31, 2016		5,316		513	—		168	5,997		—	—	—		—		5,997
NET CARRYING AMOUNT
January 1, 2016		2,082		400	577		183	3,242		2,333	3,267	2,334		7,934		11,176
December 31, 2016		2,545		646	682		182	4,055		2,333	3,288	2,322		7,943		11,998

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Investments in associates and joint ventures

12 Months Ended

Dec. 31, 2017

Interests in Other Entities [Abstract]

Investments in associates and joint ventures

Note 15 Investments in associates and joint ventures

The following table provides summarized financial information in respect to BCE’s associates and joint ventures. For a list of our associates and joint ventures please see Note 29, Related party transactions.

FOR THE YEAR ENDED DECEMBER 31	NOTE	2017		2016
Assets		3,796		3,856
Liabilities		(2,155	)	(2,119	)
Total net assets		1,641		1,737
BCE’s share of net assets		814		852
Revenues		1,863		2,511
Expenses		(1,924	)	(2,720	)
Total net losses		(61	)	(209	)
BCE’s share of net losses	8	(31	)	(89	)

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Other non-current assets

12 Months Ended

Dec. 31, 2017

Subclassifications of assets, liabilities and equities [abstract]

Other non-current assets

Note 16 Other non-current assets

FOR THE YEAR ENDED DECEMBER 31	NOTE	2017	2016
Net assets of post-employment benefit plans	22	262	403
Investments(1)		106	88
AFS publicly-traded and privately-held investments	24	103	103
Long-term notes and other receivables		101	63
Derivative assets	24	51	126
Other		277	227
Total other non-current assets		900	1,010

(1) These amounts have been pledged as security related to obligations for certain employee benefits and are not available for general use.

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Goodwill

12 Months Ended

Dec. 31, 2017

Intangible Assets [Abstract]

Goodwill

Note 17 Goodwill

The following table provides details about the changes in the carrying amounts of goodwill for the years ended December 31, 2017 and 2016. BCE’s groups of CGUs correspond to our reporting segments.

	BELL WIRELESS	BELL WIRELINE	BELL MEDIA	BCE
Balance at January 1, 2016	2,303	3,491	2,583	8,377
Acquisitions and other	1	340	240	581
Balance at December 31, 2016	2,304	3,831	2,823	8,958
Acquisitions and other	728	666	76	1,470
Balance at December 31, 2017	3,032	4,497	2,899	10,428

Impairment testing

As described in Note 2, Significant accounting policies, goodwill is tested annually for impairment by comparing the carrying value of a CGU or group of CGUs to the recoverable amount, where the recoverable amount is the higher of fair value less costs of disposal or value in use.

VALUE IN USE

The value in use for a CGU or group of CGUs is determined by discounting five-year cash flow projections derived from business plans reviewed by senior management. The projections reflect management’s expectations of revenue, segment profit, capital expenditures, working capital and operating cash flows, based on past experience and future expectations of operating performance.

Cash flows beyond the five-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 flow projections and are derived from the weighted average cost of capital for each CGU or group of CGUs.

The following table shows the key assumptions used to estimate the recoverable amounts of the groups of CGUs.

	ASSUMPTIONS USED
	PERPETUITY		DISCOUNT
GROUPS OF CGUs	GROWTH RATE		RATE
Bell Wireless	0.8	%	9.1	%
Bell Wireline	1.0	%	6.0	%
Bell Media	1.0	%	8.5	%

We believe that any reasonable possible change in the key assumptions on which the estimate of recoverable amounts of the Bell Wireless or Bell Wireline groups of CGUs is based would not cause their carrying amounts to exceed their recoverable amounts.

For the Bell Media group of CGUs, a decrease of (0.3%) in the perpetuity growth rate or an increase of 0.2% in the discount rate, would have resulted in its recoverable amount being equal to its carrying value.

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Trade payables and other liabilities

12 Months Ended

Dec. 31, 2017

Subclassifications of assets, liabilities and equities [abstract]

Trade payables and other liabilities

Note 18 Trade payables and other liabilities

FOR THE YEAR ENDED DECEMBER 31	NOTE	2017	2016
Trade payables and accruals		2,441	2,319
Deferred revenues		884	819
Compensation payable		560	531
Taxes payable		150	137
Maple Leaf Sports and Entertainment Ltd. (MLSE) financial liability (1)	24	135	135
Derivative liabilities	24	96	18
CRTC tangible benefits obligation	24	38	51
Provisions	21	55	39
Severance and other costs payable		29	30
CRTC deferral account obligation	24	28	32
Other current liabilities		207	215
Total trade payables and other liabilities		4,623	4,326

(1) Represents BCE’s obligation to repurchase the BCE Master Trust Fund’s (Master Trust) 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recorded in Other (expense) income in the income statements.

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Debt due within one year

12 Months Ended

Dec. 31, 2017

Financial Instruments [Abstract]

Debt due within one year

Note 19 Debt due within one year

FOR THE YEAR ENDED DECEMBER 31	NOTE	WEIGHTED  AVERAGE INTEREST RATE		2017	2016
Notes payable(1)	24	1.16	%	3,151	2,649
Loans secured by trade receivables	24	2.11	%	921	931
Long-term debt due within one year(2)		4.38	%	1,106	835
Unsecured committed term credit facility(3)				—	479
Net unamortized discount				—	(1	)
Unamortized debt issuance costs				—	(6	)
Total long-term debt due within one year	20			1,106	1,307
Total debt due within one year				5,178	4,887

(1) Includes commercial paper of $2,484 million in U.S. dollars ($3,116 million in Canadian dollars) and $1,945 million in U.S. dollars ($2,612 million in Canadian dollars) as at December 31, 2017 and 2016, respectively, which were issued under our U.S. commercial paper program and have been hedged for foreign currency fluctuations through forward currency contracts. See Note 24, Financial and capital management for additional details.

(2) Included in long-term debt due within one year is the current portion of finance leases of $445 million and $435 million as at December 31, 2017 and December 31, 2016, respectively.

(3) In 2017, Bell Canada repaid $357 million in U.S. dollars ($480 million in Canadian dollars) representing all of the borrowings outstanding under its unsecured committed term credit facility. Accordingly, this credit facility was closed and the cross currency basis swap which was used to hedge the U.S. currency exposure under such credit facility was settled. See Note 24, Financial and capital management for additional details.

Securitized trade receivables

Our securitized trade receivables programs are recorded as floating rate revolving loans secured by certain trade receivables and expire on July 1, 2018 and November 1, 2020.

The following table provides further details on our securitized trade receivables programs.

FOR THE YEAR ENDED DECEMBER 31	2017		2016
Average interest rate throughout the year	1.74	%	1.51	%
Securitized trade receivables	1,867		1,904

We continue to service these trade receivables. The buyers’ interest in the collection of these trade receivables ranks ahead of our interests, which means that we are exposed to certain risks of default on the amounts securitized.

We have provided various credit enhancements in the form of overcollateralization and subordination of our retained interests.

The buyers will reinvest the amounts collected by buying additional interests in our trade receivables until the securitized trade receivables agreements expire or are terminated. The buyers and their investors have no further claim on our other assets if customers do not pay the amounts owed.

Credit facilities

Bell Canada may issue notes under its Canadian and U.S. commercial paper programs up to the maximum aggregate principal amount of $2.5 billion in either Canadian or U.S. currency provided that at no time shall such maximum amount of notes exceed $3.5 billion in Canadian currency which equals the aggregate amount available under Bell Canada’s supporting revolving and expansion credit facilities as at December 31, 2017. The total amount of the committed revolving and expansion credit facilities may be drawn at any time.

The table below is a summary of our total bank credit facilities at December 31, 2017.

	TOTAL AVAILABLE	DRAWN	LETTERS OF CREDIT	COMMERCIAL PAPER OUTSTANDING	NET AVAILABLE
Committed credit facilities
Unsecured revolving credit and expansion facilities (1)(2)	3,500	—	—	3,116	384
Other	134	—	106	—	28
Total committed credit facilities	3,634	—	106	3,116	412
Total non-committed credit facilities	1,829	—	1,148	—	681
Total committed and non-committed credit facilities	5,463	—	1,254	3,116	1,093

(1) Bell Canada’s $2.5 billion revolving credit facility expires in November 2022 and its $1 billion expansion credit facility expires in November 2020.

(2) As of December 31, 2017, Bell Canada’s outstanding commercial paper included $2,484 million in U.S. dollars ($3,116 million in Canadian dollars). All of Bell Canada’s commercial paper outstanding is included in debt due within one year.

Restrictions

Some of our credit agreements:

• require us to meet specific financial 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 under such credit agreements.

Note 20 Long-term debt

FOR THE YEAR ENDED DECEMBER 31			NOTE	WEIGHTED  AVERAGE INTEREST RATE		MATURITY	2017		2016
	Debt securities
		1997 trust indenture		3.86	%	2018-2047	14,950		13,600
		1976 trust indenture		9.54	%	2021-2054	1,100		1,100
		2011 trust indenture(1)		4.28	%	2018-2024	425		—
		2001 trust indenture(1)		5.63	%	2019	200		—
	Subordinated debentures			8.21	%	2026-2031	275		275
	Finance leases		13	6.64	%	2018-2047	2,172		2,260
	Unsecured committed term credit facility(2)		19				—		479
	Other						195		188
Total debt							19,317		17,902
	Net unamortized premium						50		18
	Unamortized debt issuance costs						(46	)	(41	)
	Less:
		Amount due within one year	19				(1,106	)	(1,307	)
Total long-term debt							18,215		16,572

(1) As part of the acquisition of MTS, on March 17, 2017, Bell Canada assumed all of MTS’ debt issued under its 2001 and 2011 trust indentures.

(2) In 2017, Bell Canada repaid $357 million in U.S. dollars ($480 million in Canadian dollars) representing all of the borrowings outstanding under its unsecured committed term credit facility. Accordingly, this credit facility was closed and the cross currency basis swap which was used to hedge the U.S. currency exposure under such credit facility was settled. See Note 24, Financial and capital management for additional details.

Bell Canada’s debt securities have been issued in Canadian dollars and bear a fixed interest rate.

Restrictions

Some of our debt agreements:

• impose covenants and new issue tests

• require us to make an offer to repurchase certain series of debt securities upon the occurrence of a change of control event as defined in the relevant debt agreements

We are in compliance with all conditions and restrictions under such debt agreements.

All outstanding debt securities are issued under trust indentures and are unsecured. All debt securities are issued in series and certain series are redeemable at Bell Canada’s option prior to maturity at the prices, times and conditions specified for each series.

2017

On October 30, 2017, Bell Canada redeemed, prior to maturity, its 4.40% Series M-22 medium-term note (MTN) debentures, having an outstanding principal amount of $1 billion, which were due on March 16, 2018. We incurred an $11 million charge for early debt redemption costs which was recorded in Other (expense) income in the income statement.

On October 9, 2017, Bell Canada redeemed, prior to maturity, its 4.88% Series M-36 debentures, having an outstanding principal amount of $300 million, which were due on April 26, 2018. We incurred a $5 million charge for early debt redemption costs which was recorded in Other (expense) income in the income statement.

On September 29, 2017, Bell Canada issued 3.00% Series M-40 MTN debentures (Series M-40 debentures) under its 1997 trust indenture, with a principal amount of $700 million, which mature on October 3, 2022. The Series M-40 debentures were issued as part of an existing series of MTN debentures. In addition, on the same date, Bell Canada issued 3.60% Series M-46 MTN debentures under its 1997 trust indenture, with a principal amount of $800 million, which mature on September 29, 2027.

On May 12, 2017, Bell Canada redeemed, prior to maturity, its 4.37% Series M-35 debentures, having an outstanding principal amount of $350 million which were due on September 13, 2017. We incurred a $4 million charge for early debt redemption costs which was recorded in Other (expense) income in the income statement.

On February 27, 2017, Bell Canada issued 2.70% Series M-44 MTN debentures under its 1997 trust indenture, with a principal amount of $1 billion, which mature on February 27, 2024. In addition, on the same date, Bell Canada issued 4.45% Series M-45 MTN debentures under its 1997 trust indenture, with a principal amount of $500 million, which mature on February 27, 2047.

Subsequent to year end, on March 7, 2018, we announced the issuance of 3.35% Series M-47 MTN debentures under Bell Canada’s 1997 trust indenture, with a principal amount of $500 million, which mature on March 12, 2025. The net proceeds of the offering are intended to be used to redeem, prior to maturity, Bell Canada’s 5.52% Series M-33 debentures having an outstanding principal amount of $300 million, which are due on February 26, 2019, and for the repayment of other short-term debt.

2016

On September 16, 2016, Bell Canada redeemed, prior to maturity, its 5.00% Series M-18 MTN debentures, having an outstanding principal amount of $700 million which were due on February 15, 2017. The interest rate swap which was used to hedge the interest rate exposure was also settled in 2016. See Note 24, Financial and capital management for additional details.

On August 12, 2016, Bell Canada issued 2.00% Series M-42 MTN debentures under its 1997 trust indenture, with a principal amount of $850 million, which mature on October 1, 2021. In addition, on the same date, Bell Canada issued 2.90% Series M-43 MTN debentures under its 1997 trust indenture, with a principal amount of $650 million, which mature on August 12, 2026.

On March 31, 2016, Bell Canada redeemed, prior to maturity, its 5.41% Series M-32 debentures, having an outstanding principal amount of $500 million which were due on September 26, 2016. We incurred an $11 million charge for the early debt redemption costs which was recorded in Other (expense) income in the income statement.

On February 29, 2016, Bell Canada issued 3.55% Series M-41 MTN debentures under its 1997 trust indenture, with a principal amount of $750 million, which mature on March 2, 2026.

On January 11, 2016, Bell Canada redeemed, prior to maturity, its 4.64% Series M-19 MTN debentures, having an outstanding principal amount of $200 million which were due on February 22, 2016, as well as its 3.65% Series M-23 MTN debentures, having an outstanding principal amount of $500 million which were due on May 19, 2016.

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Long-term debt

12 Months Ended

Dec. 31, 2017

Financial Instruments [Abstract]

Long-term debt

Note 19 Debt due within one year

FOR THE YEAR ENDED DECEMBER 31	NOTE	WEIGHTED  AVERAGE INTEREST RATE		2017	2016
Notes payable(1)	24	1.16	%	3,151	2,649
Loans secured by trade receivables	24	2.11	%	921	931
Long-term debt due within one year(2)		4.38	%	1,106	835
Unsecured committed term credit facility(3)				—	479
Net unamortized discount				—	(1	)
Unamortized debt issuance costs				—	(6	)
Total long-term debt due within one year	20			1,106	1,307
Total debt due within one year				5,178	4,887

(1) Includes commercial paper of $2,484 million in U.S. dollars ($3,116 million in Canadian dollars) and $1,945 million in U.S. dollars ($2,612 million in Canadian dollars) as at December 31, 2017 and 2016, respectively, which were issued under our U.S. commercial paper program and have been hedged for foreign currency fluctuations through forward currency contracts. See Note 24, Financial and capital management for additional details.

(2) Included in long-term debt due within one year is the current portion of finance leases of $445 million and $435 million as at December 31, 2017 and December 31, 2016, respectively.

(3) In 2017, Bell Canada repaid $357 million in U.S. dollars ($480 million in Canadian dollars) representing all of the borrowings outstanding under its unsecured committed term credit facility. Accordingly, this credit facility was closed and the cross currency basis swap which was used to hedge the U.S. currency exposure under such credit facility was settled. See Note 24, Financial and capital management for additional details.

Securitized trade receivables

Our securitized trade receivables programs are recorded as floating rate revolving loans secured by certain trade receivables and expire on July 1, 2018 and November 1, 2020.

The following table provides further details on our securitized trade receivables programs.

FOR THE YEAR ENDED DECEMBER 31	2017		2016
Average interest rate throughout the year	1.74	%	1.51	%
Securitized trade receivables	1,867		1,904

We continue to service these trade receivables. The buyers’ interest in the collection of these trade receivables ranks ahead of our interests, which means that we are exposed to certain risks of default on the amounts securitized.

We have provided various credit enhancements in the form of overcollateralization and subordination of our retained interests.

The buyers will reinvest the amounts collected by buying additional interests in our trade receivables until the securitized trade receivables agreements expire or are terminated. The buyers and their investors have no further claim on our other assets if customers do not pay the amounts owed.

Credit facilities

Bell Canada may issue notes under its Canadian and U.S. commercial paper programs up to the maximum aggregate principal amount of $2.5 billion in either Canadian or U.S. currency provided that at no time shall such maximum amount of notes exceed $3.5 billion in Canadian currency which equals the aggregate amount available under Bell Canada’s supporting revolving and expansion credit facilities as at December 31, 2017. The total amount of the committed revolving and expansion credit facilities may be drawn at any time.

The table below is a summary of our total bank credit facilities at December 31, 2017.

	TOTAL AVAILABLE	DRAWN	LETTERS OF CREDIT	COMMERCIAL PAPER OUTSTANDING	NET AVAILABLE
Committed credit facilities
Unsecured revolving credit and expansion facilities (1)(2)	3,500	—	—	3,116	384
Other	134	—	106	—	28
Total committed credit facilities	3,634	—	106	3,116	412
Total non-committed credit facilities	1,829	—	1,148	—	681
Total committed and non-committed credit facilities	5,463	—	1,254	3,116	1,093

(1) Bell Canada’s $2.5 billion revolving credit facility expires in November 2022 and its $1 billion expansion credit facility expires in November 2020.

(2) As of December 31, 2017, Bell Canada’s outstanding commercial paper included $2,484 million in U.S. dollars ($3,116 million in Canadian dollars). All of Bell Canada’s commercial paper outstanding is included in debt due within one year.

Restrictions

Some of our credit agreements:

• require us to meet specific financial 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 under such credit agreements.

Note 20 Long-term debt

FOR THE YEAR ENDED DECEMBER 31			NOTE	WEIGHTED  AVERAGE INTEREST RATE		MATURITY	2017		2016
	Debt securities
		1997 trust indenture		3.86	%	2018-2047	14,950		13,600
		1976 trust indenture		9.54	%	2021-2054	1,100		1,100
		2011 trust indenture(1)		4.28	%	2018-2024	425		—
		2001 trust indenture(1)		5.63	%	2019	200		—
	Subordinated debentures			8.21	%	2026-2031	275		275
	Finance leases		13	6.64	%	2018-2047	2,172		2,260
	Unsecured committed term credit facility(2)		19				—		479
	Other						195		188
Total debt							19,317		17,902
	Net unamortized premium						50		18
	Unamortized debt issuance costs						(46	)	(41	)
	Less:
		Amount due within one year	19				(1,106	)	(1,307	)
Total long-term debt							18,215		16,572

(1) As part of the acquisition of MTS, on March 17, 2017, Bell Canada assumed all of MTS’ debt issued under its 2001 and 2011 trust indentures.

(2) In 2017, Bell Canada repaid $357 million in U.S. dollars ($480 million in Canadian dollars) representing all of the borrowings outstanding under its unsecured committed term credit facility. Accordingly, this credit facility was closed and the cross currency basis swap which was used to hedge the U.S. currency exposure under such credit facility was settled. See Note 24, Financial and capital management for additional details.

Bell Canada’s debt securities have been issued in Canadian dollars and bear a fixed interest rate.

Restrictions

Some of our debt agreements:

• impose covenants and new issue tests

• require us to make an offer to repurchase certain series of debt securities upon the occurrence of a change of control event as defined in the relevant debt agreements

We are in compliance with all conditions and restrictions under such debt agreements.

All outstanding debt securities are issued under trust indentures and are unsecured. All debt securities are issued in series and certain series are redeemable at Bell Canada’s option prior to maturity at the prices, times and conditions specified for each series.

2017

On October 30, 2017, Bell Canada redeemed, prior to maturity, its 4.40% Series M-22 medium-term note (MTN) debentures, having an outstanding principal amount of $1 billion, which were due on March 16, 2018. We incurred an $11 million charge for early debt redemption costs which was recorded in Other (expense) income in the income statement.

On October 9, 2017, Bell Canada redeemed, prior to maturity, its 4.88% Series M-36 debentures, having an outstanding principal amount of $300 million, which were due on April 26, 2018. We incurred a $5 million charge for early debt redemption costs which was recorded in Other (expense) income in the income statement.

On September 29, 2017, Bell Canada issued 3.00% Series M-40 MTN debentures (Series M-40 debentures) under its 1997 trust indenture, with a principal amount of $700 million, which mature on October 3, 2022. The Series M-40 debentures were issued as part of an existing series of MTN debentures. In addition, on the same date, Bell Canada issued 3.60% Series M-46 MTN debentures under its 1997 trust indenture, with a principal amount of $800 million, which mature on September 29, 2027.

On May 12, 2017, Bell Canada redeemed, prior to maturity, its 4.37% Series M-35 debentures, having an outstanding principal amount of $350 million which were due on September 13, 2017. We incurred a $4 million charge for early debt redemption costs which was recorded in Other (expense) income in the income statement.

On February 27, 2017, Bell Canada issued 2.70% Series M-44 MTN debentures under its 1997 trust indenture, with a principal amount of $1 billion, which mature on February 27, 2024. In addition, on the same date, Bell Canada issued 4.45% Series M-45 MTN debentures under its 1997 trust indenture, with a principal amount of $500 million, which mature on February 27, 2047.

Subsequent to year end, on March 7, 2018, we announced the issuance of 3.35% Series M-47 MTN debentures under Bell Canada’s 1997 trust indenture, with a principal amount of $500 million, which mature on March 12, 2025. The net proceeds of the offering are intended to be used to redeem, prior to maturity, Bell Canada’s 5.52% Series M-33 debentures having an outstanding principal amount of $300 million, which are due on February 26, 2019, and for the repayment of other short-term debt.

2016

On September 16, 2016, Bell Canada redeemed, prior to maturity, its 5.00% Series M-18 MTN debentures, having an outstanding principal amount of $700 million which were due on February 15, 2017. The interest rate swap which was used to hedge the interest rate exposure was also settled in 2016. See Note 24, Financial and capital management for additional details.

On August 12, 2016, Bell Canada issued 2.00% Series M-42 MTN debentures under its 1997 trust indenture, with a principal amount of $850 million, which mature on October 1, 2021. In addition, on the same date, Bell Canada issued 2.90% Series M-43 MTN debentures under its 1997 trust indenture, with a principal amount of $650 million, which mature on August 12, 2026.

On March 31, 2016, Bell Canada redeemed, prior to maturity, its 5.41% Series M-32 debentures, having an outstanding principal amount of $500 million which were due on September 26, 2016. We incurred an $11 million charge for the early debt redemption costs which was recorded in Other (expense) income in the income statement.

On February 29, 2016, Bell Canada issued 3.55% Series M-41 MTN debentures under its 1997 trust indenture, with a principal amount of $750 million, which mature on March 2, 2026.

On January 11, 2016, Bell Canada redeemed, prior to maturity, its 4.64% Series M-19 MTN debentures, having an outstanding principal amount of $200 million which were due on February 22, 2016, as well as its 3.65% Series M-23 MTN debentures, having an outstanding principal amount of $500 million which were due on May 19, 2016.

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Provisions

12 Months Ended

Dec. 31, 2017

Other Provisions, Contingent Liabilities And Contingent Assets [Abstract]

Provisions

Note 21 Provisions

FOR THE YEAR ENDED DECEMBER 31	NOTE	Asset retirement obligations (AROs)		Other (1)		Total
January 1, 2017		175		137		312
Additions		14		46		60
Usage		(2	)	(30	)	(32	)
Reversals		(18	)	(12	)	(30	)
Acquired through business combinations		1		17		18
December 31, 2017		170		158		328
Current	18	11		44		55
Non-current	23	159		114		273
December 31, 2017		170		158		328

(1)Other includes environmental, legal, regulatory and vacant space provisions.

AROs reflect management’s best estimates of expected future costs to restore current leased premises to their original condition prior to lease inception. Cash outflows associated with our ARO liabilities are generally expected to occur at the restoration dates of the assets to which they relate, which are long-term in nature. The timing and extent of restoration work that will be ultimately required for these sites is uncertain.

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Post-employee benefit plans

12 Months Ended

Dec. 31, 2017

Employee Benefits [Abstract]

Post-employment benefit plans

Note 22 Post-employment benefit plans

Post-employment benefit plans cost

We provide pension and other benefits 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 prescribes 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 plans to a mismatch between investment growth and obligation growth.

The longevity risk is managed using a longevity swap, which reduces the exposure of the DB plans to an increase in life expectancy.

COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS SERVICE COST

FOR THE YEAR ENDED DECEMBER 31		2017		2016
DB pension		(208	)	(203	)
DC pension		(102	)	(100	)
OPEBs		(6	)	(7	)
Plan amendment gain on OPEBs and DB pension		16		27
Less:
	Capitalized benefit plans cost	58		59
Total post-employment benefit plans service cost included in operating costs		(242	)	(224	)
Other costs recognized in severance, acquisition and other costs		(10	)	5
Total post-employment benefit plans service cost		(252	)	(219	)

COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS FINANCING COST

FOR THE YEAR ENDED DECEMBER 31	2017		2016
DB pension	(18	)	(24	)
OPEBs	(54	)	(57	)
Total interest on post-employment benefit obligations	(72	)	(81	)

The statements of comprehensive income include the following amounts before income taxes.

		2017		2016
Cumulative losses recognized directly in equity, January 1		(2,646	)	(2,384	)
	Actuarial losses in other comprehensive income(1)	(313	)	(264	)
	(Increase) decrease in the effect of the asset limit(2)	(25	)	2
Cumulative losses recognized directly in equity, December 31		(2,984	)	(2,646	)

(1) The cumulative actuarial losses recognized in the statements of comprehensive income are $3,217 million in 2017.

(2) The cumulative decrease in the effect of the asset limit recognized in the statements of comprehensive income is $233 million in 2017.

COMPONENTS OF POST-EMPLOYMENT BENEFIT (OBLIGATIONS) ASSETS

The following table shows the change in post-employment benefit obligations and the fair value of plan assets.

		DB PENSION PLANS				OPEB PLANS				TOTAL
		2017		2016		2017		2016		2017		2016
Post-employment benefit obligations, January 1		(20,853	)	(20,675	)	(1,684	)	(1,705	)	(22,537	)	(22,380	)
	Current service cost	(208	)	(203	)	(6	)	(7	)	(214	)	(210	)
	Interest on obligations	(896	)	(852	)	(65	)	(68	)	(961	)	(920	)
	Actuarial (losses) gains(1)	(1,193	)	(311	)	(28	)	12		(1,221	)	(299	)
	Net curtailment (losses) gains	(4	)	27		16		5		12		32
	Loss on plan transfer	(6	)	—		—		—		(6	)	—
	Benefit payments	1,320		1,169		81		79		1,401		1,248
	Employee contributions	(10	)	(5	)	—		—		(10	)	(5	)
	Acquisition of MTS	(2,677	)	—		(5	)	—		(2,682	)	—
	Plan transfer	122		—		—		—		122		—
	Other	1		(3	)	38		—		39		(3	)
Post-employment benefit obligations, December 31		(24,404	)	(20,853	)	(1,653	)	(1,684	)	(26,057	)	(22,537	)
Fair value of plan assets, January 1		20,563		20,244		280		266		20,843		20,510
	Expected return on plan assets(2)	878		828		11		11		889		839
	Actuarial gains(1)	896		29		12		6		908		35
	Benefit payments	(1,320	)	(1,169	)	(81	)	(79	)	(1,401	)	(1,248	)
	Employer contributions	305		626		77		76		382		702
	Employee contributions	10		5		—		—		10		5
	Acquisition of MTS	2,735		—		—		—		2,735		—
	Plan transfer	(122	)	—		—		—		(122	)	—
Fair value of plan assets, December 31		23,945		20,563		299		280		24,244		20,843
Plan deficit		(459	)	(290	)	(1,354	)	(1,404	)	(1,813	)	(1,694	)
Effect of asset limit		(33	)	(8	)	—		—		(33	)	(8	)
Post-employment benefit liability, December 31		(492	)	(298	)	(1,354	)	(1,404	)	(1,846	)	(1,702	)
Post-employment benefit assets included in other non-current assets		262		403		—		—		262		403
Post-employment benefit obligations		(754	)	(701	)	(1,354	)	(1,404	)	(2,108	)	(2,105	)

(1) Actuarial (losses) gains include experience gains of $911 million in 2017 and $157 million in 2016.

(2) The actual return on plan assets was $1,797 million or 8.2% in 2017 and $874 million or 4.7% in 2016.

On January 15, 2016, MTS completed the sale of its wholly-owned subsidiaries Allstream Inc., Allstream Fibre U.S., and Delphi Solutions Corp. (collectively, Allstream), to Zayo Group Holdings Inc. As part of the sale agreement, MTS retained Allstream’s two existing DB pension plans including the benefit obligations for retirees and other former employees. On October 31, 2017, we completed the transfer of assets and liabilities related to pre-closing service obligations for Allstream’s active employees from the existing Allstream DB pension plans to two new Zayo Canada Inc. pension plans.

FUNDED STATUS OF POST-EMPLOYMENT BENEFIT PLANS COST

The following table shows the funded status of our post-employment benefit obligations.

	FUNDED				PARTIALLY FUNDED(1)				UNFUNDED(2)				TOTAL
FOR THE YEAR ENDED DECEMBER 31	2017		2016		2017		2016		2017		2016		2017		2016
Present value of post-     employment benefit     obligations	(23,746	)	(20,249	)	(1,976	)	(1,995	)	(335	)	(293	)	(26,057	)	(22,537	)
Fair value of plan assets	23,894		20,520		350		323		—		—		24,244		20,843
Plan surplus (deficit)	148		271		(1,626	)	(1,672	)	(335	)	(293	)	(1,813	)	(1,694	)

(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 benefits are funded through life insurance contracts.

(2) Our unfunded plans consist of OPEBs, which are pay-as-you-go.

SIGNIFICANT ASSUMPTIONS

We used the following key assumptions to measure the post-employment benefit obligations and the net benefit plans cost for the DB pension plans and OPEB plans. These assumptions are long-term, which is consistent with the nature of post-employment benefit plans.

		DB PENSION PLANS AND OPEB PLANS
		2017		2016
At December 31
Post-employment benefit obligations
	Discount rate	3.6	%	4.0	%
	Rate of compensation increase	2.25	%	2.25	%
	Cost of living indexation rate(1)	1.6	%	1.6	%
	Life expectancy at age 65 (years)	23.2		23.1
For the year ended December 31
Net post-employment benefit plans cost
	Discount rate	4.2	%	4.3	%
	Rate of compensation increase	2.25	%	2.5	%
	Cost of living indexation rate(1)	1.6	%	1.6	%
	Life expectancy at age 65 (years)	23.1		23.0

(1) Cost of living indexation rate is only applicable to DB pension plans.

The weighted average duration of the post-employment benefit obligation is 15 years.

We assumed the following trend rates in healthcare costs:

• an annual increase in the cost of medication of 8.0% for 2017 decreasing to 4.5% over 20 years

• an annual increase in the cost of covered dental benefits of 4.0%

• an annual increase in the cost of covered hospital benefits of 3.3%

• an annual increase in the cost of other covered healthcare benefits of 3.0%

Assumed trend rates in healthcare costs have a significant 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	7	(5	)
Post-employment benefit obligations	133	(115	)

SENSITIVITY ANALYSIS

The following table shows a sensitivity analysis of key assumptions used to measure the net post-employment benefit obligations and the net post-employment benefit plans cost for our DB pension plans and OPEB plans.

			IMPACT ON NET POST-EMPLOYMENT BENEFIT PLANS COST FOR 2017 – INCREASE/(DECREASE)				IMPACT ON POST-EMPLOYMENT BENEFIT OBLIGATIONS AT DECEMBER 31, 2017 – INCREASE/(DECREASE)
	CHANGE IN ASSUMPTION		INCREASE IN ASSUMPTION		DECREASE IN ASSUMPTION		INCREASE IN ASSUMPTION		DECREASE IN ASSUMPTION
Discount rate	0.5	%	(70	)	62		(1,636	)	1,746
Life expectancy at age 65	1 year		33		(31	)	834		(808	)

POST-EMPLOYMENT BENEFIT PLAN ASSETS

The investment strategy for the post-employment benefit plan assets is to maintain a diversified portfolio of assets invested in a prudent manner to maintain the security of funds.

The following table shows the target allocations for 2017 and the allocation of our post-employment benefit plan assets at December 31, 2017 and 2016.

	WEIGHTED AVERAGE TARGET ALLOCATION	TOTAL PLAN ASSETS FAIR VALUE AT DECEMBER 31 ( % )
ASSET CATEGORY	2017	2017		2016
Equity securities	20%–35%	22	%	22	%
Debt securities	55%–80%	65	%	68	%
Alternative investments	0%–25%	13	%	10	%
Total		100	%	100	%

The following table shows the fair value of the DB pension plan assets at the end of the year for each category.

FOR THE YEAR ENDED DECEMBER 31			2017	2016
Observable markets data
	Equity securities
		Canadian	1,045	901
		Foreign	4,349	3,682
	Debt securities
		Canadian	13,126	12,469
		Foreign	1,890	1,068
		Money market	491	387
Non-observable markets inputs
	Alternative investments
		Private equities	1,484	1,164
		Hedge funds	965	726
		Real estate	484	55
		Other	111	111
Total			23,945	20,563

Equity securities included approximately $13 million of BCE common shares, or 0.05% of total plan assets, at December 31, 2017 and approximately $17 million of BCE common shares, or 0.08% of total plan assets, at December 31, 2016.

Debt securities included approximately $11 million of Bell Canada debentures, or 0.05% of total plan assets, at December 31, 2017 and approximately $15 million of Bell Canada debentures, or 0.07% of total plan assets, at December 31, 2016.

Alternative investments included the pension plan’s investment in MLSE of $135 million, or 0.56% of total plan assets, at December 31, 2017 and $135 million, or 0.66% of total plan assets at December 31, 2016.

The Bell Canada pension plan has an investment arrangement which hedges part of its exposure to potential increases in longevity, which covers approximately $5 billion of post-employment benefit obligations. The fair value of the arrangement is included within other alternative investments. As a hedging arrangement of the pension plan, the transaction requires no cash contributions from BCE.

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 reflect actuarial assumptions about future investment returns, salary projections and future service benefits. 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 benefit plans in the future, which could have a negative effect on our liquidity and financial 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 beneficiaries under OPEB plans.

	DB PLANS(1)				DC PLANS				OPEB PLANS
FOR THE YEAR ENDED DECEMBER 31	2017		2016		2017		2016		2017		2016
Contributions	(305	)	(626	)	(108	)	(99	)	(77	)	(76	)

(1) Includes voluntary contributions of $100 million in 2017 and $400 million in 2016.

We expect to contribute approximately $210 million to our DB pension plans in 2018, subject to actuarial valuations being completed. We expect to pay approximately $80 million to beneficiaries under OPEB plans and to contribute approximately $110 million to the DC pension plans in 2018.

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Other non-current liabilities

12 Months Ended

Dec. 31, 2017

Subclassifications of assets, liabilities and equities [abstract]

Other non-current liabilities

Note 23 Other non-current liabilities

FOR THE YEAR ENDED DECEMBER 31	NOTE	2017	2016
Long-term disability benefits obligation		322	302
Provisions	21	273	273
Deferred revenue on long-term contracts		174	105
CRTC deferral account obligation	24	96	104
Future tax liabilities		81	73
CRTC tangible benefits obligation	24	73	115
Other		204	305
Total other non-current liabilities		1,223	1,277

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Financial and capital management

12 Months Ended

Dec. 31, 2017

Financial Instruments [Abstract]

Financial and capital management

Note 24 Financial and capital management

Financial management

Management’s objectives are to protect BCE and its subsidiaries on a consolidated basis against material economic exposures and variability of results from various financial 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 2017 and/or 2016:

• foreign currency forward contracts and options that manage the foreign currency risk of certain anticipated purchases and sales

• cross currency basis swaps that hedge foreign currency risk on a portion of our debt due within one year

• interest rate swaps that hedge interest rate risk on a portion of our long-term debt

• interest rate locks on future debt issuances and dividend rate resets on preferred shares

• forward contracts on BCE common shares that mitigate the cash flow exposure related to share-based payment plans

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 future cash flows and discount rates, all of which reflect varying degrees of risk. Income taxes and other expenses that would be incurred on disposition of financial instruments are not reflected 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, dividends payable, trade payables and accruals, compensation payable, severance and other costs payable, interest payable, notes payable and loans secured by trade receivables approximate fair value as they are short-term.

The following table provides the fair value details of financial instruments measured at amortized cost in the statements of financial position.

				DECEMBER 31, 2017		DECEMBER 31, 2016
	CLASSIFICATION	FAIR VALUE METHODOLOGY	NOTE	CARRYING VALUE	FAIR VALUE	CARRYING VALUE	FAIR VALUE
CRTC tangible benefits obligation	Trade payables and other liabilities and non-current liabilities	Present value of estimated future cash flows discounted using observable market interest rates	18, 23	111	110	166	169
CRTC deferral account obligation	Trade payables and other liabilities and non-current liabilities	Present value of estimated future cash flows discounted using observable market interest rates	18, 23	124	128	136	145
Debt securities, finance leases and other debt	Debt due within one year and long-term debt	Quoted market price of debt or present value of future cash flows discounted using observable market interest rates	19, 20	19,321	21,298	17,879	20,093

The following table provides the fair value details of financial instruments measured at fair value in the statements of financial position.

					FAIR VALUE AT DECEMBER 31
	CLASSIFICATION	NOTE	CARRYING VALUE OF ASSET (LIABILITY) AT DECEMBER 31		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)	OBSERVABLE MARKET DATA (LEVEL 2)(1)		NON-OBSERVABLE MARKET INPUTS (LEVEL 3)(2)
2017
AFS publicly-traded and privately-held investments	Other non-current assets	16	103		1	—		102
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities		(48	)	—	(48	)	—
MLSE financial liability(3)	Trade payables and other liabilities	18	(135	)	—	—		(135	)
Other	Other non-current assets and liabilities		60		—	106		(46	)
2016
AFS publicly-traded and privately-held investments	Other non-current assets	16	103		1	—		102
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities		166		—	166		—
MLSE financial liability(3)	Trade payables and other liabilities	18	(135	)	—	—		(135	)
Other	Other non-current assets and liabilities		35		—	88		(53	)

(1) Observable market data such as equity prices, interest rates, swap rate curves and foreign currency exchange rates.

(2) Non-observable market inputs such as discounted cash flows and earnings multiples. A reasonable change in our assumptions would not result in a significant increase (decrease) to our level 3 financial instruments.

(3) Represents BCE’s obligation to repurchase the Master Trust’s 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recorded in Other (expense) income in the income statements. The option is exercisable in 2017 and thereafter.

CREDIT RISK

We are exposed to credit risk from operating activities and certain financing activities, the maximum exposure of which is represented by the carrying amounts reported in the statements of financial 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, 2017 and 2016. 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.

	NOTE	2017		2016
Balance, January 1		(60	)	(64	)
Additions		(99	)	(102	)
Usage		104		106
Balance, December 31	11	(55	)	(60	)

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.

AT DECEMBER 31		2017	2016
Trade receivables not past due		2,257	2,187
Trade receivables past due and not impaired
	Under 60 days	491	286
	60 to 120 days	279	359
	Over 120 days	56	75
Trade receivables, net of allowance for doubtful accounts		3,083	2,907

LIQUIDITY RISK

Our cash and cash equivalents, cash flows from operations and possible capital markets financing are expected to be sufficient to fund our operations and fulfill our obligations as they become due. Should our cash requirements exceed the above sources of cash, we would expect to cover such a shortfall by drawing on existing committed bank facilities and new ones, to the extent available.

The following table is a maturity analysis for recognized financial liabilities at December 31, 2017 for each of the next five years and thereafter.

AT DECEMBER 31, 2017	NOTE	2018	2019	2020	2021	2022	THERE- AFTER	TOTAL
Long-term debt	20	661	1,541	1,424	2,247	1,714	9,558	17,145
Notes payable	19	3,151	—	—	—	—	—	3,151
Minimum future lease payments under finance leases	13	572	501	326	278	248	883	2,808
Loan secured by trade receivables	19	921	—	—	—	—	—	921
Interest payable on long-term debt, notes     payable and loan secured by trade     receivables		792	688	628	586	525	5,197	8,416
MLSE financial liability	18	135	—	—	—	—	—	135
Total		6,232	2,730	2,378	3,111	2,487	15,638	32,576

We are also exposed to liquidity risk for financial liabilities due within one year as shown in the statements of financial position.

MARKET RISK

CURRENCY EXPOSURES

We use forward contracts, options and cross currency basis swaps to manage foreign currency risk related to anticipated purchases and sales and certain foreign currency debt. In 2017, we settled a cross currency basis swap with a notional amount of $357 million in U.S. dollars ($480 million in Canadian dollars) used to hedge borrowings under a credit facility. Refer to Note 19, Debt due within one year for additional details.

A 10% depreciation (appreciation) in the value of the Canadian dollar relative to the U.S. dollar would result in a gain (loss) of $2 million recognized in net earnings at December 31, 2017 and a gain (loss) of $133 million recognized in Other comprehensive loss at December 31, 2017, with all other variables held constant.

The following table provides further details on our outstanding foreign currency forward contracts and cross currency basis swaps as at December 31, 2017.

TYPE OF HEDGE	BUY CURRENCY	AMOUNT TO RECEIVE	SELL CURRENCY	AMOUNT TO PAY	MATURITY	HEDGED ITEM
Cash flow	USD	2,492	CAD	3,180	2018	Commercial paper
Cash flow	USD	872	CAD	1,134	2018	Anticipated transactions
Cash flow	CAD	97	USD	75	2018-2019	Anticipated transactions
Cash flow	USD	576	CAD	721	2019	Anticipated transactions
Cash flow	USD	76	CAD	96	2020-2021	Anticipated transactions
Economic	USD	36	CAD	46	2018	Anticipated transactions

INTEREST RATE EXPOSURES

We use interest rate swaps to manage the mix of fixed and floating interest rates on our debt. We also use interest rate locks to hedge the interest rates on future debt issuances and to economically hedge dividend rate resets on preferred shares.

In 2016, we settled interest rate locks which hedged long-term debt and dividend rate resets on preferred shares with a notional amount of $500 million and $350 million, respectively.

In 2016, we redeemed long-term debt prior to maturity, and settled an interest rate swap with a notional amount of $700 million used to hedge the interest rate exposure on the redeemed debt. In 2016, we also recognized a loss of $15 million on an interest rate swap used as a fair value hedge of long-term debt and an offsetting gain of $16 million on the corresponding long-term debt in Other (expense) income in the income statements.

A 1% increase (decrease) in interest rates would result in a decrease (increase) of $29 million in net earnings at December 31, 2017.

EQUITY PRICE EXPOSURES

We use equity forward contracts on BCE’s common shares to economically hedge the cash flow exposure related to the settlement of share-based payment plans. See Note 26, Share-based payments for details on our share-based payment arrangements. The fair value of our equity forward contracts at December 31, 2017 was $45 million (2016 – $111 million).

A 5% increase (decrease) in the market price of BCE’s common shares at December 31, 2017 would result in a gain (loss) of $38 million recognized in net earnings for 2017, with all other variables held constant.

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 definition of capital includes equity attributable to BCE shareholders, debt, and cash and cash equivalents.

The key ratios that we use to monitor and manage our capital structure are a net debt leverage ratio⁽¹⁾and an adjusted EBITDA to net interest expense ratio⁽²⁾. Our net debt leverage ratio target range is 1.75 to 2.25 times adjusted EBITDA and our adjusted EBITDA to net interest expense ratio target is greater than 7.5 times. We monitor our capital structure and make adjustments, including to our dividend policy, as required. At December 31, 2017, we had exceeded the limit of our internal net debt leverage ratio target range by 0.45. This excess over the limit of our internal ratio target range does not create risk to our investment-grade credit rating.

These ratios do not have any standardized meaning under IFRS. Therefore, they are unlikely to be comparable to similar measures presented by other issuers. We use, and believe that certain investors and analysts use, our net debt leverage ratio and adjusted EBITDA to net interest expense ratio as measures of financial leverage and health of the company.

The following table provides a summary of our key ratios.

AT DECEMBER 31	2017	2016
Net debt leverage ratio	2.70	2.57
Adjusted EBITDA to net interest expense ratio	9.12	9.31

(1) Our net debt leverage ratio represents net debt divided by adjusted EBITDA. We define 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 our statements of financial position. Adjusted EBITDA is defined as operating revenues less operating costs as shown in our income statements.

(2) Our adjusted EBITDA to net interest expense ratio represents adjusted EBITDA divided by net interest expense. Adjusted EBITDA is defined as operating revenues less operating costs as shown in our income statements. Net interest expense is net interest expense as shown in our statements of cash flows and 50% of declared preferred share dividends as shown in our income statements.

On February 7, 2018, the board of directors of BCE approved an increase of 5.2% in the annual dividend on BCE's common shares, from $2.87 to $3.02 per common share. In addition, the board of directors of BCE declared a quarterly dividend of $0.7550 per common share, payable on April 15, 2018 to shareholders of record at March 15, 2018.

On February 8, 2018, BCE announced a normal course issuer bid (NCIB). See Note 25, Share Capital for additional details.

On February 1, 2017, the board of directors of BCE approved an increase of 5.1% in the annual dividend on BCE's common shares, from $2.73 to $2.87 per common share.

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Share capital

12 Months Ended

Dec. 31, 2017

Disclosure Of Share Capital, Reserves And Other Equity Interest [Abstract]

Share capital

Note 25 Share capital

Preferred shares

BCE’s articles of amalgamation, as amended, 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 BCE’s 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 provides a summary of the principal terms of BCE’s First Preferred Shares as at December 31, 2017. There were no Second Preferred Shares issued and outstanding at December 31, 2017. BCE’s articles of amalgamation, as amended, describe the terms and conditions of these shares in detail.

	ANNUAL DIVIDEND RATE						NUMBER OF SHARES		STATED CAPITAL
SERIES			CONVERTIBLE INTO	CONVERSION DATE	REDEMPTION DATE	REDEMPTION PRICE	AUTHORIZED	ISSUED AND OUTSTANDING	DEC. 31, 2017	DEC. 31, 2016
Q	floating		Series R	December 1, 2025		$25.50	8,000,000	—	—	—
R(1)	4.13	%	Series Q	December 1, 2020	December 1, 2020	$25.00	8,000,000	8,000,000	200	200
S	floating		Series T	November 1, 2021	At any time	$25.50	8,000,000	3,513,448	88	88
T(1)	3.019	%	Series S	November 1, 2021	November 1, 2021	$25.00	8,000,000	4,486,552	112	112
Y	floating		Series Z	December 1, 2022	At any time	$25.50	10,000,000	8,081,491	202	219
Z(1)	3.904	%	Series Y	December 1, 2022	December 1, 2022	$25.00	10,000,000	1,918,509	48	31
AA(1)	3.61	%	Series AB	September 1, 2022	September 1, 2022	$25.00	20,000,000	11,398,396	291	259
AB	floating		Series AA	September 1, 2022	At any time	$25.50	20,000,000	8,601,604	219	251
AC(1)	3.55	%	Series AD	March 1, 2018	March 1, 2018	$25.00	20,000,000	5,069,935	129	129
AD	floating		Series AC	March 1, 2018	At any time	$25.50	20,000,000	14,930,065	381	381
AE	floating		Series AF	February 1, 2020	At any time	$25.50	24,000,000	9,292,133	232	232
AF(1)	3.11	%	Series AE	February 1, 2020	February 1, 2020	$25.00	24,000,000	6,707,867	168	168
AG(1)	2.80	%	Series AH	May 1, 2021	May 1, 2021	$25.00	22,000,000	4,985,351	125	125
AH	floating		Series AG	May 1, 2021	At any time	$25.50	22,000,000	9,014,649	225	225
AI(1)	2.75	%	Series AJ	August 1, 2021	August 1, 2021	$25.00	22,000,000	5,949,884	149	149
AJ	floating		Series AI	August 1, 2021	At any time	$25.50	22,000,000	8,050,116	201	201
AK(1)	2.954	%	Series AL	December 31, 2021	December 31, 2021	$25.00	25,000,000	22,745,921	569	569
AL(2)	floating		Series AK	December 31, 2021	At any time		25,000,000	2,254,079	56	56
AM(1)	2.764	%	Series AN	March 31, 2021	March 31, 2021	$25.00	30,000,000	9,546,615	218	218
AN(2)	floating		Series AM	March 31, 2021	At any time		30,000,000	1,953,385	45	45
AO(1)	4.26	%	Series AP	March 31, 2022	March 31, 2022	$25.00	30,000,000	4,600,000	118	118
AP(3)	floating		Series AO	March 31, 2027			30,000,000	—	—	—
AQ(1)	4.25	%	Series AR	September 30, 2018	September 30, 2018	$25.00	30,000,000	9,200,000	228	228
AR(3)	floating		Series AQ	September 30, 2023			30,000,000	—	—	—
									4,004	4,004

(1) BCE may redeem each of these series of First Preferred Shares on the applicable redemption date and every five years after that date.

(2) BCE may redeem Series AL and AN First Preferred Shares at $25.00 per share on December 31, 2021 and March 31, 2021, respectively, and every five years thereafter (each, a Series conversion date). Alternatively, BCE may redeem Series AL or AN First Preferred Shares at $25.50 per share on any date which is not a Series conversion date for such series of First Preferred Shares.

(3) If Series AP or AR First Preferred Shares are issued on March 31, 2022 and September 30, 2018, respectively, BCE may redeem such shares at $25.00 per share on March 31, 2027 and September 30, 2023, respectively, and every five years thereafter (each, a Series conversion date). Alternatively, BCE may redeem Series AP or AR First Preferred Shares at $25.50 per share on any date, in the case of Series AP First Preferred Shares, and on any date afterSeptember 30, 2018, in the case of Series AR First Preferred Shares, which is not a Series conversion date for each relevant series.

VOTING RIGHTS

All of the issued and outstanding First Preferred Shares at December 31, 2017 are non-voting, except under special circumstances, when the holders are entitled to one vote per share.

PRIORITY AND ENTITLEMENT TO DIVIDENDS

The First Preferred Shares of all series rank at parity with each other and in priority to all other shares of BCE with respect to payment of dividends and with respect to distribution of assets in the event of liquidation, dissolution or winding up of BCE.

Holders of Series R, T, Z, AA, AC, AF, AG, AI, AK, AM, AO and AQ First Preferred Shares are entitled to fixed cumulative quarterly dividends. The dividend rate on these shares is reset every five years, as set out in BCE’s articles of amalgamation, as amended.

Holders of Series S, Y, AB, AD, AE, AH and AJ First Preferred Shares are entitled to floating adjustable cumulative monthly dividends. The floating dividend rate on these shares is calculated every month, as set out in BCE’s articles of amalgamation, as amended.

Holders of Series AL and AN First Preferred Shares are entitled to floating cumulative quarterly dividends. The floating dividend rate on these shares is calculated every quarter, as set out in BCE’s articles of amalgamation, as amended.

Dividends on all series of First Preferred Shares are paid as and when declared by the board of directors of BCE.

CONVERSION FEATURES

All of the issued and outstanding First Preferred Shares at December 31, 2017 are convertible at the holder’s option into another associated series of First Preferred Shares on a one-for-one basis according to the terms set out in BCE’s articles of amalgamation, as amended.

CONVERSION AND DIVIDEND RATE RESET OF FIRST PREFERRED SHARES

On December 1, 2017, 585,184 of BCE's 1,227,532 fixed-rate Cumulative Redeemable First Preferred Shares, Series Z (Series Z Preferred Shares) were converted, on a one-for-one basis, into floating-rate cumulative Redeemable First Preferred Shares, Series Y (Series Y Preferred Shares). In addition, on December 1, 2017, 1,276,161 of BCE's 8,772,468 Series Y Preferred Shares were converted, on a one-for-one basis, into Series Z Preferred Shares.

On September 1, 2017, 965,769 of BCE's 10,144,302 fixed-rate Cumulative Redeemable First Preferred Shares, Series AA (Series AA Preferred Shares) were converted, on a one-for-one basis, into floating rate Cumulative Redeemable First Preferred Shares, Series AB (Series AB Preferred Shares). In addition, on September 1, 2017, 2,219,863 of BCE's 9,855,698 Series AB Preferred Shares were converted, on a one-for-one basis, into Series AA Preferred Shares.

Subsequent to year end, on March 1, 2018, 397,181 of BCE's 5,069,935 fixed-rate Cumulative Redeemable First Preferred Shares, Series AC (Series AC Preferred Shares) were converted, on a one-for-one basis, into floating rate Cumulative Redeemable First Preferred Shares, Series AD (Series AD Preferred Shares). In addition, on March 1, 2018, 5,356,937 of BCE's 14,930,065 Series AD Preferred Shares were converted, on a one-for-one basis, into Series AC Preferred Shares.

The annual fixed dividend rate on BCE's Series AC Preferred Shares was reset for the next five years, effective March 1, 2018, at 4.38% from 3.55%. The Series AD Preferred Shares continue to pay a monthly floating cash dividend.

Common shares and Class B shares

BCE’s 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 December 31, 2017 and 2016.

The following table provides details about the outstanding common shares of BCE.

		2017		2016
	NOTE	NUMBER OF SHARES	STATED CAPITAL	NUMBER OF SHARES	STATED CAPITAL
Outstanding, January 1		870,706,332	18,370	865,614,188	18,100
Shares issued for the acquisition of MTS	3	27,642,714	1,594	—	—
Shares issued under employee stock option plan	26	2,555,863	122	2,236,891	104
Shares issued under dividend reinvestment plan		—	—	688,839	38
Shares issued under ESP		91,731	5	2,166,414	128
Outstanding, December 31		900,996,640	20,091	870,706,332	18,370

Subsequent to year end, on February 8, 2018, BCE announced its plan to repurchase and cancel up to 3.5 million common shares, subject to a maximum aggregate purchase price of $175 million over the twelve-month period starting February 13, 2018 and ending no later than February 12, 2019 through a NCIB.

CONTRIBUTED SURPLUS

Contributed surplus in 2017 and 2016 includes premiums in excess of par value upon the issuance of BCE common shares and share-based compensation expense net of settlements.

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Share-based payments

12 Months Ended

Dec. 31, 2017

Share-based Payment Arrangements [Abstract]

Share-based payments

Note 26 Share-based payments

The following share-based payment amounts are included in the income statements as operating costs.

FOR THE YEAR ENDED DECEMBER 31	2017		2016
ESP	(28	)	(29	)
RSUs/PSUs	(44	)	(49	)
Other (1)	(9	)	(12	)
Total share-based payments	(81	)	(90	)

(1) Includes DSP, DSUs and stock options.

Description of the plans

ESP

The ESP is designed to encourage employees of BCE and its participating 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 employee’s eligible annual earnings to the plan, up to a specified maximum. Dividends are credited to the participant’s account on each dividend payment date and are equivalent in value to the dividends paid on BCE common shares.

The BCE ESP allows employees to contribute up to 12% of their annual earnings with a maximum employer contribution of 2%.

Employer contributions to the BCE ESP plan and related dividends are subject to employees holding their shares for a 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, 2017, 5,591,566 common shares were authorized for issuance from treasury under the BCE ESP.

The following table summarizes the status of unvested employer contributions at December 31, 2017 and 2016.

NUMBER OF ESP SHARES	2017		2016
Unvested contributions, January 1	1,073,212		1,146,046
Contributions(1)	610,657		600,808
Dividends credited	49,299		49,988
Vested	(553,837	)	(586,309	)
Forfeited	(140,301	)	(137,321	)
Unvested contributions, December 31	1,039,030		1,073,212

(1) The weighted average fair value of the shares contributed was $60 and $59 in 2017 and 2016, respectively.

RSUs/PSUs

RSUs/PSUs are granted to executives and other eligible employees. The value of an RSU/PSU at the grant date is equal to the value of one BCE common share. Dividends in the form of additional RSUs/PSUs are credited to the participant’s account on each dividend payment date and are equivalent in value to the dividend paid on BCE common shares. Executives and other eligible employees are granted a specific number of RSUs/PSUs for a given performance period based on their position and level of contribution. RSUs/PSUs 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/PSUs at December 31, 2017 and 2016.

NUMBER OF RSUs /PSUs	2017		2016
Outstanding, January 1	2,928,698		3,333,583
Granted(1)	879,626		874,888
Dividends credited	132,402		137,583
Settled	(1,096,403	)	(1,321,846	)
Forfeited	(103,931	)	(95,510	)
Outstanding, December 31	2,740,392		2,928,698
Vested, December 31(2)	985,382		1,058,200

(1) The weighted average fair value of the RSUs/PSUs granted was $58 in 2017 and 2016.

(2) The RSUs/PSUs vested on December 31, 2017 were fully settled in February 2018 with BCE common shares and/or DSUs.

DSP

The value of a deferred share is equal to the value of one BCE common share. Dividends in the form of additional deferred shares are credited to the participant’s account on each dividend payment date and are equivalent in value to the dividend paid on BCE common shares. Deferred shares vest fully after three years of continuous employment from the date of grant. The liability related to the DSP is recorded in Trade payables and other liabilities in the statements of financial position and was $30 million and $37 million at December 31, 2017 and 2016, respectively.

DSUs

Eligible bonuses and RSUs/PSUs may be paid in the form of DSUs when executives or other eligible 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; thereafter, at least 50% of their compensation is paid in DSUs. There are no vesting requirements relating to DSUs. Dividends in the form of additional DSUs are credited to the participant’s 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, 2017 and 2016.

NUMBER OF DSUs	2017		2016
Outstanding, January 1	4,131,229		3,796,051
Issued(1)	69,742		87,665
Settlement of RSUs/PSUs	101,066		323,428
Dividends credited	203,442		183,852
Settled	(195,951	)	(259,767	)
Outstanding, December 31	4,309,528		4,131,229

(1) The weighted average fair value of the DSUs issued was $59 in 2017 and 2016.

STOCK OPTIONS

Under BCE’s 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 five consecutive trading days ending on the trading day immediately prior to the effective date of the grant

At December 31, 2017, 14,586,683 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.

The following table summarizes BCE’s outstanding stock options at December 31, 2017 and 2016.

		2017			2016
	NOTE	NUMBER OF OPTIONS		WEIGHTED AVERAGE EXERCISE PRICE ($)	NUMBER OF OPTIONS		WEIGHTED AVERAGE EXERCISE PRICE ($)
Outstanding, January 1		10,242,162		52	9,666,904		48
Granted		3,043,448		59	2,968,062		58
Exercised(1)	25	(2,555,863	)	45	(2,236,891	)	44
Forfeited		(239,498	)	58	(155,913	)	52
Outstanding, December 31		10,490,249		55	10,242,162		52
Exercisable, December 31		2,013,983		45	1,786,251		42

(1) The weighted average share price for options exercised was $60 and $59 in 2017 and 2016, respectively.

The following table provides additional information about BCE’s stock option plans at December 31, 2017.

	STOCK OPTIONS OUTSTANDING
RANGE OF EXERCISE PRICES	NUMBER	WEIGHTED AVERAGE REMAINING LIFE (YEARS)	WEIGHTED AVERAGE EXERCISE PRICE ($)
$30–$39	35,408	0.14	36
$40-$49	1,978,575	2.54	46
$50-$59	8,377,818	5.19	58
$60 & above	98,448	5.84	61
	10,490,249	4.68	55

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 specific to the share incentive plans, such as the vesting period. The following table shows the principal assumptions used in the valuation.

	2017
Weighted average fair value per option granted	$1.97
Weighted average share price	$58
Weighted average exercise price	$59
Dividend yield	5	%
Expected volatility	13	%
Risk-free interest rate	1	%
Expected life (years)	4

Expected volatilities are based on the historical volatility of BCE’s 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.

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Additional cash flow information

12 Months Ended

Dec. 31, 2017

Statement of cash flows [abstract]

Additional cash flow information

Note 27 Additional cash flow information

The following table provides a reconciliation of changes in liabilities arising from financing activities.

	NOTE	DEBT DUE WITHIN ONE YEAR AND LONG-TERM DEBT		DERIVATIVE TO HEDGE FOREIGN CURRENCY ON DEBT (1)		DIVIDENDS PAYABLE		OTHER LIABILITIES		TOTAL
January 1, 2017		21,459		(31	)	617		—		22,045
Cash flows from (used in) financing activities
Increase in notes payable		452		(119	)	—		—		333
Issue of long-term debt		3,011		—		—		—		3,011
Repayments of long-term debt		(2,653	)	—		—		—		(2,653	)
Cash dividends paid on common and preferred shares		—		—		(2,639	)	—		(2,639	)
Cash dividends paid by subsidiaries to non-controlling interests	30	—		—		(34	)	—		(34	)
Other financing activities		(44	)	6		—		(22	)	(60	)
Total cash flows from (used in) financing activities excluding equity		766		(113	)	(2,673	)	(22	)	(2,042	)
Non-cash changes arising from
Finance lease additions		339		—		—		—		339
Dividends declared on common and preferred shares		—		—		2,692		—		2,692
Dividends declared by subsidiaries to non-controlling interests		—		—		45		—		45
Effect of changes in foreign exchange rates		(198	)	198		—		—		—
Business acquisitions	3	972		—		—		—		972
Other		55		—		(3	)	22		74
Total non-cash changes		1,168		198		2,734		22		4,122
December 31, 2017		23,393		54		678		—		24,125

(1) Included in Other current assets, Trade payables and other liabilities, Other non-current assets and Other non-current liabilities in the statements of financial position.

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Committments and contingencies

12 Months Ended

Dec. 31, 2017

Other Provisions, Contingent Liabilities And Contingent Assets [Abstract]

Commitments and contingencies

Note 28 Commitments and contingencies

Commitments

The following table is a summary of our contractual obligations at December 31, 2017 that are due in each of the next five years and thereafter.

	NOTE	2018	2019	2020	2021	2022	THERE- AFTER	TOTAL
Operating leases		312	264	225	175	119	341	1,436
Commitments for property, plant and      equipment and intangible assets		1,039	808	614	516	372	808	4,157
Purchase obligations		865	664	550	498	429	903	3,909
Proposed acquisition of Séries+ and Historia specialty channels	3	200	—	—	—	—	—	200
Acquisition of AlarmForce (1)	3	182	—	—	—	—	—	182
Total		2,598	1,736	1,389	1,189	920	2,052	9,884

(1) This commitment was settled on January 5, 2018, upon completion of the acquisition of AlarmForce. See Note 3, Business acquisitions and dispositions for additional details.

BCE’s significant operating leases are for office premises, cellular tower sites, retail outlets and OOH advertising spaces with lease terms ranging from 1 to 50 years. These leases are non-cancellable. Rental expense relating to operating leases was $399 million in 2017 and $353 million in 2016.

Our commitments for property, plant and equipment and intangible assets include program and feature film rights and investments to expand and update our networks to meet customer demand.

Purchase obligations consist of contractual obligations under service and product contracts for operating expenditures and other purchase obligations.

Contingencies

In the ordinary course of business, we become involved in various claims and legal proceedings seeking monetary damages and other relief. In particular, because of the nature of our consumer-facing business, we are exposed to class actions pursuant to which substantial monetary damages may be claimed. Due to the inherent risks and uncertainties of the litigation process, we cannot predict the final outcome or timing of claims and legal proceedings. Subject to the foregoing, and based on information currently available and management’s assessment of the merits of the claims and legal proceedings pending at March 8, 2018, management believes that the ultimate resolution of these claims and legal proceedings is unlikely to have a material and negative effect on our financial statements. We believe that we have strong defences and we intend to vigorously defend our positions.

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Related party transactions

12 Months Ended

Dec. 31, 2017

Related Party [Abstract]

Related party transactions

Note 29 Related party transactions

Subsidiaries

The following table shows BCE’s significant subsidiaries at December 31, 2017. 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 significant 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	2017		2016
Bell Canada	100	%	100	%
Bell Mobility	100	%	100	%
Bell Media	100	%	100	%

Transactions with joint arrangements and associates

During 2017 and 2016, BCE provided communication services and received programming content and other services in the normal course of business on an arm’s length basis to and from its joint arrangements and associates. Our joint arrangements and associates include MLSE, Glentel Inc., and Dome Productions Partnership. From time to time, BCE may be required to make capital contributions in its investments.

In 2017, BCE recognized revenues and incurred expenses with our joint arrangements and associates of $11 million (2016 – $16 million) and $177 million (2016 – $180 million), respectively.

BCE Master Trust Fund

Bimcor Inc. (Bimcor), a wholly-owned subsidiary of Bell Canada, is the administrator of the Master Trust. Bimcor recognized management fees of $10 million from the Master Trust for 2017 and 2016. The details of BCE’s post-employment benefit plans are set out in Note 22, Post-employment benefit plans.

Compensation of key management personnel and board of directors

The following table includes compensation of key management personnel and the board of directors for the years ended December 31, 2017 and 2016 included in our income statements. Key management personnel include the company’s Chief Executive Officer (CEO), Group President and the executives who report directly to them.

FOR THE YEAR ENDED DECEMBER 31	2017		2016
Wages, salaries, fees and related taxes and benefits	(23	)	(24	)
Post-employment benefit plans and OPEBs cost	(3	)	(4	)
Share-based compensation	(23	)	(27	)
Key management personnel and board of directors compensation expense	(49	)	(55	)

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Significant partly-owned subsidiaries

12 Months Ended

Dec. 31, 2017

Interest In Other Entities [Abstract]

Significant partly-owned subsidiaries

Note 30 Significant partly-owned subsidiaries

The following tables show summarized financial information for our subsidiaries with significant non-controlling interest (NCI).

Summarized statements of financial position

	CTV SPECIALTY(1) (2)
FOR THE YEAR ENDED DECEMBER 31	2017	2016
Current assets	328	293
Non-current assets	1,013	1,013
Total assets	1,341	1,306
Current liabilities	153	130
Non-current liabilities	184	195
Total liabilities	337	325
Total equity attributable to BCE shareholders	700	687
NCI	304	294

(1) At December 31, 2017 and 2016, the ownership interest held by NCI in CTV Specialty Television Inc. (CTV Specialty) was 29.9%. CTV Specialty was incorporated and operated in Canada as at such dates.

(2) CTV Specialty's net assets at December 31, 2017 and 2016, include $6 million and $2 million, respectively, directly attributable to NCI.

Selected income and cash flow information

	CTV SPECIALTY(1)
FOR THE YEAR ENDED DECEMBER 31	2017	2016
Operating revenues	832	824
Net earnings	179	182
Net earnings attributable to NCI	56	56
Total comprehensive income	172	173
Total comprehensive income attributable to NCI	54	54
Cash dividends paid to NCI	34	46

(1) CTV Specialty's net earnings and total comprehensive income include $3 million directly attributable to NCI for 2017 and 2016, respectively.

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Significant accounting policies (Policies)

12 Months Ended

Dec. 31, 2017

Accounting Policies, Changes In Accounting Estimates And Errors [Abstract]

Basis of presentation

The financial statements were prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB). The financial statements have been prepared on a historical cost basis, except for certain financial 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 financial statements are presented in Canadian dollars, the company’s functional currency.

Basis of consolidation

We consolidate the financial statements of all of 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 significantly affect the investee’s returns.

The results of subsidiaries acquired during the year are consolidated from the date of acquisition and the results of subsidiaries sold during the year are deconsolidated from the date of disposal. Where necessary, adjustments are made to the financial statements of acquired subsidiaries to conform their accounting policies to ours. All intercompany transactions, balances, income and expenses are eliminated on consolidation.

Changes in BCE’s ownership interest in a subsidiary that do not result in a change of control are accounted for as equity transactions, with no effect on net earnings or on other comprehensive (loss) income.

Revenue recognition

We recognize revenues from the sale of products or the rendering of services when they are earned; specifically when all the following conditions are met:

• the significant 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 benefits associated with the transaction will flow 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

• advertising revenue, net of agency commissions, when advertisements are aired on radio or TV, posted on ourwebsite or appear on the company’s advertising panels and street furniture

We measure revenues at the fair value of the arrangement consideration. 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 in the consolidated statements of financial position (statements of financial 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 specified 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.

Share-based payments

Our share-based payment arrangements include stock options, restricted share units and performance share units (RSUs/PSUs), deferred share units (DSUs), an employee savings plan (ESP) and a deferred share plan (DSP).

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. We recognize compensation expense in Operating costs in the consolidated income statements (income statements). Compensation expense is adjusted for subsequent changes in management’s 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 received and the amounts previously credited to contributed surplus.

RSUs/PSUs

For each RSU/PSU granted, we recognize compensation expense in Operating costs in the income statements, equal to the market value of a BCE common share at the date of grant and based on the number of RSUs/PSUs expected to vest, recognized over the term of the vesting period, with a corresponding credit to contributed surplus. Additional RSUs/PSUs are issued to reflect dividends declared on the common shares.

Compensation expense is adjusted for subsequent changes in management’s estimate of the number of RSUs/PSUs that are expected to vest. The effect of these changes is recognized in the period of the change. Upon settlement of the RSUs/PSUs, any difference between the cost of shares purchased on the open market and the amount credited to contributed surplus is reflected in the deficit. Vested RSUs/PSUs 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 reflect 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 reflected in the deficit.

ESP

We recognize our ESP contributions as compensation expense in Operating costs in the income statements. We credit contributed surplus for the ESP expense recognized over the two-year vesting period, based on management’s estimate of the accrued contributions that are expected to vest. Upon settlement of shares under the ESP, any difference between the cost of shares purchased on the open market and the amount credited to contributed surplus is reflected in the deficit.

DSP

For each deferred share granted under the DSP, we recognize compensation expense in Operating costs in the income statements equal to the market value of a BCE common share and based on the number of deferred shares expected to vest, recognized over the vesting period. Additional deferred shares are issued to reflect dividends declared on the common shares.

Compensation expense is adjusted for subsequent changes in the market value of BCE common shares and any change in management’s estimate of the number of deferred shares that are expected to vest. The cumulative effect of any change in value is recognized in the period of the change. Participants have the option to receive either BCE common shares or a cash equivalent for each vested deferred share upon qualifying for payout under the terms of the grant.

Income and other taxes

Current and deferred income tax expense is recognized in the income statements, except to the extent that the expense relates to items recognized in other comprehensive (loss) income or directly in equity.

A current or non-current tax asset (liability) is the estimated tax receivable (payable) on taxable earnings (loss) for the current or past periods. We also record future tax liabilities, which are included in Other non-current liabilities in the statements of financial position.

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 financial position and their corresponding tax bases

• the carryforward of unused tax losses and credits, to the extent they can be used in the future

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 in the statements of financial position 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.

Cash equivalents

Cash equivalents are comprised of highly liquid investments with original maturities of three months or less from the date of purchase.

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.

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 specific identification 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 potentially obsolete, calculated using an inventory aging analysis.

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.

Description of accounting policy for borrowing costs

Borrowing costs are capitalized for qualifying assets, if the time to build or develop is in excess of one year, at a rate that is based on our weighted average interest rate on our outstanding long-term debt. Gains or losses on the sale or retirement of property, plant and equipment are recorded in Other (expense) income in the income statements.

Description of accounting policy for leases

Leases of property, plant and equipment are recognized as finance 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 classified as operating leases. We recognize operating lease expense in Operating costs in the income statements on a straight-line basis over the term of the lease.

Description of accounting policy for decommissioning, restoration and rehabilitation provisions

We initially measure and record AROs at management’s best estimate using a present value methodology, adjusted subsequently for any changes in the timing or amount of cash flows 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 ARO and record a corresponding amount in interest expense to reflect the passage of time.

Intangible assets

FINITE-LIFE INTANGIBLE ASSETS

Finite-life intangible assets are recorded 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 benefits will be generated

• costs attributable to the asset can be measured reliably

CUSTOMER RELATIONSHIPS

Customer relationship assets are acquired through business combinations and are recorded at fair value at the date of acquisition.

PROGRAM AND FEATURE FILM RIGHTS

We account for program and feature film rights as intangible assets when these assets are acquired for the purpose of broadcasting. Program and feature film rights, which include producer advances and licence fees paid in advance of receipt of the program or film, are stated at acquisition cost less accumulated amortization, and accumulated impairment losses, if any. Programs and feature films under licence agreements are recorded as assets for rights acquired and Iiabilities for obligations incurred when:

• we receive a broadcast master and the cost is known or reasonably determinable for new program and feature film licences

• the licence term commences for licence period extensions or syndicated programs

Programs and feature films are classified as non-current assets with related liabilities classified as current or non-current, based on the payment terms. Amortization of program and feature film rights is recorded in Operating costs in the income statements.

INDEFINITE-LIFE INTANGIBLE ASSETS

Brand assets, mainly comprised of the Bell, Bell Media and Bell MTS 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. Borrowing costs are calculated at a rate that is based on our weighted average interest rate on our outstanding long-term debt.

Currently there are no legal, regulatory, competitive or other factors that limit the useful lives of our brands or spectrum licences.

Amortization

We depreciate property, plant and equipment and amortize finite-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, as required. Land and assets under construction or development are not depreciated.

	ESTIMATED USEFUL LIFE
Property, plant and equipment
Network infrastructure and equipment	2 to 40 years
Buildings	5 to 50 years
Finite-life intangible assets
Software	2 to 12 years
Customer relationships	3 to 26 years
Program and feature film rights	Up to 5 years

Depreciation

We depreciate property, plant and equipment and amortize finite-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, as required. Land and assets under construction or development are not depreciated.

	ESTIMATED USEFUL LIFE
Property, plant and equipment
Network infrastructure and equipment	2 to 40 years
Buildings	5 to 50 years
Finite-life intangible assets
Software	2 to 12 years
Customer relationships	3 to 26 years
Program and feature film rights	Up to 5 years

Investment in associates and joint arrangements

Our financial statements incorporate our share of the results of our associates and joint ventures using the equity method of accounting, except when the investment is classified as held for sale. Equity income from investments is recorded in Other (expense) income in the income statements.

Investments in associates and joint ventures are recognized initially at cost and adjusted thereafter to include the company’s share of income or loss and comprehensive income on an after-tax basis.

Investments are reviewed for impairment at each reporting period and we compare their recoverable amount to their carrying amount when there is an indication of impairment.

We recognize our share of the assets, liabilities, revenues and expenses of joint operations in accordance with the related contractual agreements.

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 and recorded in Severance, acquisition and other costs in the income statements.

Identifiable 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 is remeasured to fair value and any gain or loss on remeasurement is recognized in Other (expense) income in the income statements. The excess of the purchase consideration and any previously-held equity interest over the fair value of identifiable net assets acquired is recorded as Goodwill in the statements of financial position. If the fair value of identifiable net assets acquired exceeds the purchase consideration and any previously-held equity interest, the difference is recognized in Other (expense) income in the income statements 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 owner’s equity.

Impairment of non-financial assets

Goodwill and indefinite-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 finite-life intangible assets are tested for impairment if events or changes in circumstances, assessed at each reporting period, 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 identifiable cash inflows.

Impairment losses are recognized and measured as the excess of the carrying value of the assets over their recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs of disposal 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 asset’s 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 identifiable group of assets that generates cash inflows that are independent of the cash inflows from other assets or groups of assets.

We identify any potential impairment by comparing the carrying value of a CGU or group 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 of disposal and its value in use. Both fair value less costs of disposal and value in use are based on estimates of discounted future cash flows or other valuation methods. Cash flows 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 identifiable 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 recognized in Other (expense) income in the income statements for any excess of the carrying value of goodwill over its recoverable amount. For purposes of impairment testing of goodwill, our CGUs or groups of CGUs correspond to our reporting segments as disclosed in Note 4, Segmented information.

Description of accounting policy for 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 significant 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 and recognized in Operating costs in the income statements.

Description of accounting policy for available-for-sale financial assets

Our portfolio investments in equity securities are classified as AFS and are presented in our statements of financial position as Other non-current assets. They have been designated as such based on management’s intentions or because they are not classified 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 (loss) income in the consolidated statements of comprehensive income (statements of comprehensive income) and are reclassified to Other (expense) income in the income statements when realized or when an impairment is determined.

Financial instruments - liabilities

OTHER FINANCIAL LIABILITIES

Other financial 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 reflected in the consolidated statements of changes in equity as a charge to the deficit.

Derivative financial instruments

We use derivative financial instruments to manage interest rate risk, foreign currency risk and cash flow exposures related to share-based payment plans, capital expenditures, long-term debt instruments and operating revenues and expenses. We do not use derivative financial instruments for speculative or trading purposes.

HEDGE ACCOUNTING

To qualify for hedge accounting, we document the relationship between the derivative and the related identified risk exposure, and our risk management objective and strategy. This includes associating each derivative to a specific asset or liability, a specific firm commitment, anticipated purchases or sales.

We assess the effectiveness of a derivative in managing an identified 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

We enter into interest rate swaps to manage the effect of changes in interest rates relating to fixed-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 in the statements of financial position 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

We enter into cash flow hedges to mitigate foreign currency risk on certain debt instruments and anticipated purchases and sales, as well as interest rate risk related to future debt issuances. We use foreign currency forward contracts to manage the exposure to anticipated purchases and sales denominated in foreign currencies.

Changes in the fair value of foreign currency forward contracts related to anticipated purchases and sales are recognized in our statements of comprehensive income, except for any ineffective portion, which is recognized immediately in Other (expense) income in the income statements. Realized gains and losses in Accumulated other comprehensive income are reclassified to the income statements or as an adjustment to the cost basis of the hedged item in the same periods as the corresponding hedged transactions are recognized. Cash flow hedges that mature within one year are included in Other current assets or Trade payables and other liabilities in the statements of financial position, whereas hedges that have a maturity of more than one year are included in Other non-current assets or Other non-current liabilities.

We use cross currency basis swaps and foreign currency forward contracts to manage our U.S. dollar borrowings under our unsecured committed term credit facility and U.S. commercial paper program. Changes in the fair value of these derivatives and the related borrowings are recognized in Other (expense) income in the income statements and offset, unless a portion of the hedging relationship is ineffective.

DERIVATIVES USED AS ECONOMIC HEDGES

We use derivatives to manage cash flow exposures related to equity-settled share-based payment plans and anticipated purchases, equity price risk related to a cash-settled share-based payment plan, and interest rate risk related to preferred share dividend rate resets. As these derivatives do not qualify for hedge accounting, the changes in their fair value are recorded in the income statements in Operating costs for derivatives used to hedge cash-settled share-based payments and in Other (expense) income for other derivatives.

Post-employment benefit plans

DEFINED BENEFIT (DB) AND OTHER POST-EMPLOYMENT BENEFIT (OPEB) PLANS

We maintain DB pension plans that provide pension benefits for certain employees. Benefits are based on the employee’s length of service and average rate of pay during the highest paid consecutive five years of service. Most employees are not required to contribute to the plans. Certain plans provide cost of living adjustments to help protect the income of retired employees against inflation.

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 reflect actuarial assumptions about future investment returns, salary projections, future service and life expectancy.

We provide OPEBs to some of our employees, including:

• healthcare and life insurance benefits during retirement, which were phased out for new retirees over a ten-year period ending on December 31, 2016. We do not fund most of these OPEB plans.

• other benefits, including workers’ compensation and medical benefits to former or inactive employees, their beneficiaries 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 benefit plans, net of the fair value of the benefit 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 fixed income investments with maturities that match the timing of benefits expected to be paid under the plans

• management’s best estimate of pay increases, retirement ages of employees, expected healthcare costs and life expectancy

We value post-employment benefit plan assets at fair value using current market values.

Post-employment benefit plans current service cost is included in Operating costs in the income statements. Interest on our post-employment benefit assets and obligations is recognized in Finance costs in the income statements and represents the accretion of interest on the assets and obligations under our post-employment benefit 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 benefit plans are recorded in Other comprehensive (loss) income in the statements of comprehensive income in the period in which they occur and are recognized immediately in the deficit.

December 31 is the measurement date for our significant post-employment benefit plans. Our actuaries perform a valuation based on management's assumptions 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 significant pension plans was as at December 31, 2016.

DEFINED CONTRIBUTION (DC) PENSION PLANS

We maintain DC pension plans that provide certain employees with benefits. Under these plans, we are responsible for contributing a predetermined amount to an employee’s retirement savings, based on a percentage of the employee’s salary.

We recognize a post-employment benefit 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.

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 outflow 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 specific to the obligation. The obligation increases as a result of the passage of time, resulting in interest expense which is recognized in Finance costs in the income statements.

Estimates and key judgements

When preparing the financial statements, management makes estimates and judgments 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 judgments are subject to measurement uncertainty and actual results could differ. Our more significant estimates and judgments are described below.

ESTIMATES

USEFUL LIVES OF PROPERTY, PLANT AND EQUIPMENT AND FINITE-LIFE INTANGIBLE ASSETS

Property, plant and equipment represent a significant 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.

POST-EMPLOYMENT BENEFIT PLANS

The amounts reported in the financial statements relating to DB pension plans and OPEBs are determined using actuarial calculations that are based on several assumptions.

The actuarial valuation uses management’s 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 significant assumptions used to calculate the net post-employment benefit plans cost are the discount rate and life expectancy.

The discount rate is based on the yield on long-term, high-quality corporate fixed income investments, with maturities matching the estimated cash flows of the post-employment benefit plans. Life expectancy is based on publicly available Canadian mortality tables and is adjusted for the company’s specific experience.

IMPAIRMENT OF NON-FINANCIAL ASSETS

We make a number of estimates when calculating recoverable amounts using discounted future cash flows or other valuation methods to test for impairment. These estimates include the assumed growth rates for future cash flows, the number of years used in the cash flow model and the discount rate.

DEFERRED TAXES

The amount of deferred tax assets and liabilities are estimated with consideration given to the timing, sources and amounts of future taxable income.

FAIR VALUE OF FINANCIAL INSTRUMENTS

Certain financial instruments, such as investments in equity securities, derivative financial instruments and certain elements of borrowings, are carried in the statements of financial position at fair value, with changes in fair value reflected 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 flows and earnings multiples.

CONTINGENCIES

In the ordinary course of business, we become involved in various claims and legal proceedings seeking monetary damages and other relief. Pending claims and legal proceedings 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 unavoidable costs of meeting our obligations under a contract exceed the expected benefits to be received under the 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.

JUDGMENTS

POST-EMPLOYMENT BENEFIT PLANS

The determination of the discount rate used to value our post-employment benefit obligations requires judgment. The rate is set by reference to market yields of high-quality corporate fixed income investments at the beginning of each fiscal year. Significant judgment is required when setting the criteria for fixed income investments to be included in the population from which the yield curve is derived. The most significant criteria considered for the selection of investments include the size of the issue and credit quality, along with the identification of outliers, which are excluded.

INCOME TAXES

The calculation of income taxes requires judgment in interpreting tax rules and regulations. There are transactions and calculations for which the ultimate tax determination is uncertain. Our tax filings are also subject to audits, the outcome of which could change the amount of current and deferred tax assets and liabilities.

Management judgment is used to determine the amounts of deferred tax assets and liabilities and future tax liabilities to be recognized. In particular, judgment 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 judgment to establish the separately identifiable components and the allocation of the total price between those components.

CGUs

The determination of CGUs or groups of CGUs for the purpose of impairment testing requires judgment.

CONTINGENCIES

The determination of whether a loss is probable from claims and legal proceedings and whether an outflow of resources is likely requires judgment.

Change in accounting estimate

In 2017 and 2016, as part of our ongoing annual review of property, plant and equipment and finite-life intangible assets, and to better reflect their useful lives, we increased the estimate of useful lives of certain assets. The changes have been applied prospectively effective January 1, 2017 and January 1, 2016, and did not have a significant impact on our financial statements.

u) Adoption of amended accounting standards

Adoption of amended accounting standards

As required, effective January 1, 2017, we adopted the following amended accounting standard.

STANDARD	DESCRIPTION	IMPACT
Amendments to IAS 7 – Statement of Cash Flows	Requires enhanced disclosures about changes in liabilities arising from financing activities, including changes from financing cash flows, changes arising from obtaining or losing control of subsidiaries or other businesses, the effect of changes in foreign exchange rates and changes in fair values.	The required enhanced disclosures have been provided in Note 27, Additional cash flow information.

Future changes to accounting standards

The following new or amended standards and interpretation issued by the IASB have an effective date after December 31, 2017 and have not yet been adopted by BCE.

STANDARD	DESCRIPTION	IMPACT	EFFECTIVE DATE
IFRS 15 – Revenue from Contracts with Customers	Establishes principles to record revenues from contracts for the sale of goods or services, unless the contracts are in the scope of IAS 17 – Leases or other IFRSs. Under IFRS 15, revenue is recognized at an amount that reflects the expected consideration receivable in exchange for transferring goods or services to a customer, applying the following five steps: 1. Identify the contract with a  customer 2. Identify the performance obligations in the contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations in the contract 5. Recognize revenue when (or as) the entity satisfies a performance obligation The new standard also provides guidance relating to principal versus agent relationships, licences of intellectual property, contract costs and the measurement and recognition of gains and losses on the sale of certain non-financial assets such as property and equipment. Additional disclosures will also be required under the new standard.	IFRS 15 will principally affect the timing of revenue recognition and how we classify revenues between product and service in our Bell Wireless segment. IFRS 15 will also affect how we account for costs to obtain a contract. • Under multiple-element arrangements, revenue allocated to a satisfied performance obligation will no longer be limited to the amount that is not contingent upon the satisfaction of additional performance obligations. Although the total revenue recognized during the term of a contract will be largely unaffected, revenue recognition may be accelerated and reflected ahead of the associated cash inflows. This will result in the recognition of a contract asset on the balance sheet, corresponding to the amount of revenue recognized and not yet billed to a customer. The contract asset will be realized over the term of the customer contract. • As revenues allocated to a satisfied performance obligation are no longer limited to the non-contingent amount, a greater proportion of the total revenue recognized during the term of certain customer contracts will be attributed to a delivered product, resulting in a corresponding decrease in service revenue. • Sales commissions and any other incremental costs of obtaining a contract with a customer will be recognized on the balance sheet and amortized on a systematic basis that is consistent with the period and pattern of transfer to the customer of the related products or services, except as noted below. Under IFRS 15, certain practical expedients are permitted both on transition and on an ongoing basis. • On transition, completed contracts that begin and end within the same annual reporting period and those completed before January 1, 2017 are not restated. Similarly, contracts modified prior to January 1, 2017 are not restated. • When our right to consideration from a customer corresponds directly with the value to the customer of the products and services transferred to date, we will recognize revenue in the amount to which we have a right to invoice. • Costs of obtaining a contract that would be amortized within one year or less will be immediately expensed. We continue to make progress towards adoption of IFRS 15 according to our detailed implementation plan. Changes and enhancements to our existing information technology (IT) systems, business processes, and systems of internal control are being completed. A dedicated project team that leverages key resources throughout the company is in place to effect the necessary changes.	Annual periods beginning on or after January 1, 2018, using a full retrospective approach for all periods presented in the period of adoption.

		While our testing and data validation process is ongoing, we expect that the impact of the new standard will be most pronounced in our Bell Wireless segment. • Although total revenue recognized over the term of a customer contract is not expected to change significantly, our preliminary estimate of the impact of adopting IFRS 15 is a decrease in 2017 service revenues within the range of $1.2 billion to $1.4 billion, with a corresponding increase in product revenue. • Total operating revenues less operating costs in 2017 is estimated to increase by approximately $0.1 billion. • Total assets on our January 1, 2017 statement of financial position will increase as we record contract assets and costs to obtain a contract. We currently estimate the value of the gross contract assets to be in the range of $1.1 billion to $1.3 billion and an increase in costs to obtain a contract of approximately $0.3 billion to $0.4 billion, both of which would be recognized through an adjustment to opening retained earnings. • Total liabilities will increase mainly to reflect a resulting $0.4 billion deferred tax liability, also recognized through an adjustment to opening retained earnings. • We do not expect that IFRS 15 will impact our cash flows from operating activities.
Amendments to IFRS 2 – Share-based Payment	Clarifies the classification and measurement of cash-settled share-based payment transactions that include a performance condition, share-based payment transactions with a net settlement feature for withholding tax obligations, and modifications of a share-based payment transaction from cash-settled to equity-settled.	The amendments to IFRS 2 will not have a significant impact on our financial statements.	Annual periods beginning on or after January 1, 2018.
IFRS 9 – Financial Instruments	Sets out the requirements for recognizing and measuring financial assets, financial liabilities and some contracts to buy and sell non-financial items. IFRS 9 replaces IAS 39 – Financial Instruments: Recognition and Measurement. The new standard establishes a single classification and measurement approach for financial assets that reflects the business model in which they are managed and their cash flow characteristics. It also provides guidance on an entity’s own credit risk relating to financial liabilities and modifies the hedge accounting model to better link the economics of risk management with its accounting treatment. Additional disclosures will also be required under the new standard.	The amendments to IFRS 9 will not have a significant impact on our financial statements.	Annual periods beginning on or after January 1, 2018.

IFRS 16 – Leases	Eliminates the distinction between operating and finance leases for lessees, requiring instead that leases be capitalized by recognizing the present value of the lease payments and showing them either as lease assets (right-of-use assets) or together with property, plant and equipment. If lease payments are made over time, an entity recognizes a financial liability representing its obligation to make future lease payments. A depreciation charge for the lease asset is recorded within operating costs and an interest expense on the lease liability is recorded within finance costs. IFRS 16 does not require a lessee to recognize assets and liabilities for short-term leases and leases of low-value assets, nor does it substantially change lease accounting for lessors.	We continue to make progress towards adoption of IFRS 16 according to our detailed implementation plan. Changes and enhancements to our existing IT systems, business processes and systems of internal control are being designed and tested. It is not yet possible to make a reliable estimate of the impact of the new standard on our financial statements.	Annual periods beginning on or after January 1, 2019, using either a full retrospective approach for all periods presented in the period of adoption or a modified retrospective approach.
International Financial Reporting Interpretations Committee (IFRIC) 23 – Uncertainty over Income Tax Treatments	IFRIC 23 clarifies the application of recognition and measurement requirements in IAS 12 - Income Taxes when there is uncertainty over income tax treatments. It specifically addresses whether an entity considers uncertain tax treatments separately or as a group, the assumptions an entity makes about the examination of tax treatments by taxation authorities, how an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates and how an entity considers changes in facts and circumstances.	We are currently evaluating the impact of IFRIC 23 on our financial statements.	Annual periods beginning on or after January 1, 2019, using either a full retrospective or a modified retrospective approach.

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Significant accounting policies (Tables)

12 Months Ended

Dec. 31, 2017

Accounting Policies, Changes In Accounting Estimates And Errors [Abstract]

Disclosure of detailed information about property, plant and equipment

	ESTIMATED USEFUL LIFE
Property, plant and equipment
Network infrastructure and equipment	2 to 40 years
Buildings	5 to 50 years
Finite-life intangible assets
Software	2 to 12 years
Customer relationships	3 to 26 years
Program and feature film rights	Up to 5 years

FOR THE YEAR ENDED DECEMBER 31, 2017	NETWORK INFRASTRUCTURE AND EQUIPMENT		LAND AND BUILDINGS		ASSETS UNDER CONSTRUCTION		TOTAL(1)
COST
January 1, 2017	58,680		5,572		1,374		65,626
Additions	2,492		70		1,587		4,149
Acquisition through business combinations	653		264		76		993
Transfers	775		77		(1,263	)	(411	)
Retirements and disposals	(1,105	)	(22	)	—		(1,127	)
December 31, 2017	61,495		5,961		1,774		69,230
ACCUMULATED DEPRECIATION
January 1, 2017	40,233		3,047		—		43,280
Depreciation	2,816		221		—		3,037
Retirements and disposals	(1,054	)	(19	)	—		(1,073	)
Other	(39	)	(8	)	—		(47	)
December 31, 2017	41,956		3,241		—		45,197
NET CARRYING AMOUNT
January 1, 2017	18,447		2,525		1,374		22,346
December 31, 2017	19,539		2,720		1,774		24,033

(1) Includes assets under finance leases.

FOR THE YEAR ENDED DECEMBER 31, 2016	NOTE	NETWORK INFRASTRUCTURE AND EQUIPMENT		LAND AND BUILDINGS		ASSETS UNDER CONSTRUCTION		TOTAL(1)
COST
January 1, 2016		57,233		5,174		1,287		63,694
Additions		2,361		120		1,415		3,896
Acquisition through business combinations		32		282		1		315
Transfers		692		35		(1,325	)	(598	)
Retirements and disposals		(1,637	)	(39	)	(4	)	(1,680	)
Impairment losses recognized in earnings	8	(1	)	—		—		(1	)
December 31, 2016		58,680		5,572		1,374		65,626
ACCUMULATED DEPRECIATION
January 1, 2016		39,183		2,881		—		42,064
Depreciation		2,672		205		—		2,877
Retirements and disposals		(1,591	)	(35	)	—		(1,626	)
Other		(31	)	(4	)	—		(35	)
December 31, 2016		40,233		3,047		—		43,280
NET CARRYING AMOUNT
January 1, 2016		18,050		2,293		1,287		21,630
December 31, 2016		18,447		2,525		1,374		22,346

(1) Includes assets under finance leases.

Finance leases

Disclosure of detailed information about intangible assets

	ESTIMATED USEFUL LIFE
Property, plant and equipment
Network infrastructure and equipment	2 to 40 years
Buildings	5 to 50 years
Finite-life intangible assets
Software	2 to 12 years
Customer relationships	3 to 26 years
Program and feature film rights	Up to 5 years

		FINITE-LIFE										INDEFINITE-LIFE
FOR THE YEAR ENDED DECEMBER 31, 2017	NOTE	SOFTWARE		CUSTOMER RELATION- SHIPS		PROGRAM AND FEATURE FILM RIGHTS		OTHER		TOTAL		BRANDS	SPECTRUM AND OTHER LICENCES	BROADCAST LICENCES		TOTAL		TOTAL INTANGIBLE ASSETS
COST
January 1, 2017		7,861		1,159		682		350		10,052		2,333	3,288	2,322		7,943		17,995
Additions		344		31		1,009		7		1,391		—	—	—		—		1,391
Acquired through business combinations		98		830		—		103		1,031		110	246	—		356		1,387
Transfers		407		—		—		—		407		—	—	(1	)	(1	)	406
Retirements and disposals		(21	)	(20	)	—		(55	)	(96	)	—	—	—		—		(96	)
Impairment losses recognized in earnings	8	—		—		—		(12	)	(12	)	—	—	(70	)	(70	)	(82	)
Amortization included in operating costs		—		—		(950	)	—		(950	)	—	—	—		—		(950	)
December 31, 2017		8,689		2,000		741		393		11,823		2,443	3,534	2,251		8,228		20,051
ACCUMULATED AMORTIZATION
January 1, 2017		5,316		513		—		168		5,997		—	—	—		—		5,997
Amortization		672		102		—		39		813		—	—	—		—		813
Retirements and disposals		(21	)	—		—		(52	)	(73	)	—	—	—		—		(73	)
Other		9		—		—		—		9		—	—	—		—		9
December 31, 2017		5,976		615		—		155		6,746		—	—	—		—		6,746
NET CARRYING AMOUNT
January 1, 2017		2,545		646		682		182		4,055		2,333	3,288	2,322		7,943		11,998
December 31, 2017		2,713		1,385		741		238		5,077		2,443	3,534	2,251		8,228		13,305

		FINITE-LIFE								INDEFINITE-LIFE
FOR THE YEAR ENDED DECEMBER 31, 2016	NOTE	SOFTWARE		CUSTOMER RELATION- SHIPS	PROGRAM AND FEATURE FILM RIGHTS		OTHER	TOTAL		BRANDS	SPECTRUM AND OTHER LICENCES	BROADCAST LICENCES		TOTAL		TOTAL INTANGIBLE ASSETS
COST
January 1, 2016		6,906		866	577		325	8,674		2,333	3,267	2,334		7,934		16,608
Additions		412		—	973		17	1,402		—	21	—		21		1,423
Acquired through business combinations		—		293	—		8	301		—	—	—		—		301
Transfers		615		—	—		—	615		—	—	—		—		615
Retirements and disposals		(72	)	—	—		—	(72	)	—	—	—		—		(72	)
Business dispositions		—		—	—		—	—		—	—	(4	)	(4	)	(4	)
Impairment losses recognized in earnings	8	—		—	—		—	—		—	—	(8	)	(8	)	(8	)
Amortization included in operating costs		—		—	(868	)	—	(868	)	—	—	—		—		(868	)
December 31, 2016		7,861		1,159	682		350	10,052		2,333	3,288	2,322		7,943		17,995
ACCUMULATED AMORTIZATION
January 1, 2016		4,824		466	—		142	5,432		—	—	—		—		5,432
Amortization		558		47	—		26	631		—	—	—		—		631
Retirements and disposals		(69	)	—	—		—	(69	)	—	—	—		—		(69	)
Other		3		—	—		—	3		—	—	—		—		3
December 31, 2016		5,316		513	—		168	5,997		—	—	—		—		5,997
NET CARRYING AMOUNT
January 1, 2016		2,082		400	577		183	3,242		2,333	3,267	2,334		7,934		11,176
December 31, 2016		2,545		646	682		182	4,055		2,333	3,288	2,322		7,943		11,998

Disclosure of adoption of amended accounting standards

As required, effective January 1, 2017, we adopted the following amended accounting standard.

STANDARD	DESCRIPTION	IMPACT
Amendments to IAS 7 – Statement of Cash Flows	Requires enhanced disclosures about changes in liabilities arising from financing activities, including changes from financing cash flows, changes arising from obtaining or losing control of subsidiaries or other businesses, the effect of changes in foreign exchange rates and changes in fair values.	The required enhanced disclosures have been provided in Note 27, Additional cash flow information.

Disclosure of future changes to accounting standards

The following new or amended standards and interpretation issued by the IASB have an effective date after December 31, 2017 and have not yet been adopted by BCE.

STANDARD	DESCRIPTION	IMPACT	EFFECTIVE DATE
IFRS 15 – Revenue from Contracts with Customers	Establishes principles to record revenues from contracts for the sale of goods or services, unless the contracts are in the scope of IAS 17 – Leases or other IFRSs. Under IFRS 15, revenue is recognized at an amount that reflects the expected consideration receivable in exchange for transferring goods or services to a customer, applying the following five steps: 1. Identify the contract with a  customer 2. Identify the performance obligations in the contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations in the contract 5. Recognize revenue when (or as) the entity satisfies a performance obligation The new standard also provides guidance relating to principal versus agent relationships, licences of intellectual property, contract costs and the measurement and recognition of gains and losses on the sale of certain non-financial assets such as property and equipment. Additional disclosures will also be required under the new standard.	IFRS 15 will principally affect the timing of revenue recognition and how we classify revenues between product and service in our Bell Wireless segment. IFRS 15 will also affect how we account for costs to obtain a contract. • Under multiple-element arrangements, revenue allocated to a satisfied performance obligation will no longer be limited to the amount that is not contingent upon the satisfaction of additional performance obligations. Although the total revenue recognized during the term of a contract will be largely unaffected, revenue recognition may be accelerated and reflected ahead of the associated cash inflows. This will result in the recognition of a contract asset on the balance sheet, corresponding to the amount of revenue recognized and not yet billed to a customer. The contract asset will be realized over the term of the customer contract. • As revenues allocated to a satisfied performance obligation are no longer limited to the non-contingent amount, a greater proportion of the total revenue recognized during the term of certain customer contracts will be attributed to a delivered product, resulting in a corresponding decrease in service revenue. • Sales commissions and any other incremental costs of obtaining a contract with a customer will be recognized on the balance sheet and amortized on a systematic basis that is consistent with the period and pattern of transfer to the customer of the related products or services, except as noted below. Under IFRS 15, certain practical expedients are permitted both on transition and on an ongoing basis. • On transition, completed contracts that begin and end within the same annual reporting period and those completed before January 1, 2017 are not restated. Similarly, contracts modified prior to January 1, 2017 are not restated. • When our right to consideration from a customer corresponds directly with the value to the customer of the products and services transferred to date, we will recognize revenue in the amount to which we have a right to invoice. • Costs of obtaining a contract that would be amortized within one year or less will be immediately expensed. We continue to make progress towards adoption of IFRS 15 according to our detailed implementation plan. Changes and enhancements to our existing information technology (IT) systems, business processes, and systems of internal control are being completed. A dedicated project team that leverages key resources throughout the company is in place to effect the necessary changes.	Annual periods beginning on or after January 1, 2018, using a full retrospective approach for all periods presented in the period of adoption.

		While our testing and data validation process is ongoing, we expect that the impact of the new standard will be most pronounced in our Bell Wireless segment. • Although total revenue recognized over the term of a customer contract is not expected to change significantly, our preliminary estimate of the impact of adopting IFRS 15 is a decrease in 2017 service revenues within the range of $1.2 billion to $1.4 billion, with a corresponding increase in product revenue. • Total operating revenues less operating costs in 2017 is estimated to increase by approximately $0.1 billion. • Total assets on our January 1, 2017 statement of financial position will increase as we record contract assets and costs to obtain a contract. We currently estimate the value of the gross contract assets to be in the range of $1.1 billion to $1.3 billion and an increase in costs to obtain a contract of approximately $0.3 billion to $0.4 billion, both of which would be recognized through an adjustment to opening retained earnings. • Total liabilities will increase mainly to reflect a resulting $0.4 billion deferred tax liability, also recognized through an adjustment to opening retained earnings. • We do not expect that IFRS 15 will impact our cash flows from operating activities.
Amendments to IFRS 2 – Share-based Payment	Clarifies the classification and measurement of cash-settled share-based payment transactions that include a performance condition, share-based payment transactions with a net settlement feature for withholding tax obligations, and modifications of a share-based payment transaction from cash-settled to equity-settled.	The amendments to IFRS 2 will not have a significant impact on our financial statements.	Annual periods beginning on or after January 1, 2018.
IFRS 9 – Financial Instruments	Sets out the requirements for recognizing and measuring financial assets, financial liabilities and some contracts to buy and sell non-financial items. IFRS 9 replaces IAS 39 – Financial Instruments: Recognition and Measurement. The new standard establishes a single classification and measurement approach for financial assets that reflects the business model in which they are managed and their cash flow characteristics. It also provides guidance on an entity’s own credit risk relating to financial liabilities and modifies the hedge accounting model to better link the economics of risk management with its accounting treatment. Additional disclosures will also be required under the new standard.	The amendments to IFRS 9 will not have a significant impact on our financial statements.	Annual periods beginning on or after January 1, 2018.

IFRS 16 – Leases	Eliminates the distinction between operating and finance leases for lessees, requiring instead that leases be capitalized by recognizing the present value of the lease payments and showing them either as lease assets (right-of-use assets) or together with property, plant and equipment. If lease payments are made over time, an entity recognizes a financial liability representing its obligation to make future lease payments. A depreciation charge for the lease asset is recorded within operating costs and an interest expense on the lease liability is recorded within finance costs. IFRS 16 does not require a lessee to recognize assets and liabilities for short-term leases and leases of low-value assets, nor does it substantially change lease accounting for lessors.	We continue to make progress towards adoption of IFRS 16 according to our detailed implementation plan. Changes and enhancements to our existing IT systems, business processes and systems of internal control are being designed and tested. It is not yet possible to make a reliable estimate of the impact of the new standard on our financial statements.	Annual periods beginning on or after January 1, 2019, using either a full retrospective approach for all periods presented in the period of adoption or a modified retrospective approach.
International Financial Reporting Interpretations Committee (IFRIC) 23 – Uncertainty over Income Tax Treatments	IFRIC 23 clarifies the application of recognition and measurement requirements in IAS 12 - Income Taxes when there is uncertainty over income tax treatments. It specifically addresses whether an entity considers uncertain tax treatments separately or as a group, the assumptions an entity makes about the examination of tax treatments by taxation authorities, how an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates and how an entity considers changes in facts and circumstances.	We are currently evaluating the impact of IFRIC 23 on our financial statements.	Annual periods beginning on or after January 1, 2019, using either a full retrospective or a modified retrospective approach.

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Business acquisitions and dispositions (Tables)

12 Months Ended

Dec. 31, 2017

Business Combinations1 [Abstract]

Disclosure of detailed information about business combinations

The following table summarizes the fair value of the consideration paid and the fair value assigned to each major class of assets and liabilities.

	TOTAL
Cash consideration	161
Total cost to be allocated	161
Trade and other receivables	11
Other non-cash working capital	(4	)
Property, plant and equipment	13
Finite-life intangible assets	6
Indefinite-life intangible assets	76
Deferred tax liabilities	(20	)
Other non-current liabilities	(1	)
	81
Cash and cash equivalents	1
Fair value of net assets acquired	82
Goodwill (1)	79

(1) Goodwill arises principally from the assembled workforce, expected synergies and future growth. Goodwill is not deductible for tax purposes. The goodwill arising from the transaction was allocated to our Bell Media group of CGUs.

The following table summarizes the fair value of the consideration paid and the fair value assigned to each major class of assets and liabilities.

	TOTAL
Cash consideration	218
Finite-life intangible assets	8
Non-current assets	1
Current liabilities	(3	)
Non-current liabilities	(8	)
Fair value of net assets acquired	(2	)
Goodwill (1)	220

(1) Goodwillarises principally from the ability to leverage media content and expected future growth. The amount of goodwill deductible for tax purposes is $163 million at a 7% annual rate declining balance. The goodwill arising from the transaction was allocated to our Bell Media group of CGUs.

The following table summarizes the fair value of the consideration paid and the fair value assigned to each major class of assets and liabilities.

	TOTAL
Cash consideration	170
Fair value of previously held interest in Q9 and favourable purchase option	131
Note receivable from Q9	517
Total cost to be allocated	818
Trade and other receivables	19
Other non-cash working capital	(39	)
Property, plant and equipment	311
Finite-life intangible assets	267
Long-term debt	(7	)
Deferred tax liabilities	(69	)
Other non-current liabilities	(16	)
	466
Cash and cash equivalents	12
Fair value of net assets acquired	478
Goodwill (1)	340

(1) Goodwill arises principally from the assembled workforce, expected synergies and future growth. Goodwill is not deductible for tax purposes. The goodwill arising from the transaction was allocated to our Bell Wireline group of CGUs.

The following table summarizes the fair value of the consideration paid and the fair value assigned to each major class of assets and liabilities.

	Total
Cash consideration	1,339
Issuance of 27.6 million BCE common shares (1)	1,594
Total cost to be allocated	2,933
Trade and other receivables	91
Other non-cash working capital	(164	)
Assets held for sale (2)	302
Property, plant and equipment	978
Finite-life intangible assets (3)	979
Indefinite-life intangible assets (4)	280
Deferred tax assets	32
Other non-current assets	129
Debt due within one year	(251	)
Long-term debt	(721	)
Other non-current liabilities	(49	)
	1,606
Cash and cash equivalents	(16	)
Fair value of net assets acquired	1,590
Goodwill (5)	1,343

(1) Recorded at fair value based on the market price of BCE common shares on the acquisition date.

(2) Consists of finite-life and indefinite-life intangible assets recorded at fair value less costs to sell.

(3) Consists mainly of customer relationships.

(4) Indefinite-life intangible assets of $228 million and $52 million were allocated to our Bell Wireless and Bell Wireline groups of cash generating units (CGUs), respectively.

(5) Goodwill arises principally from the assembled workforce, expected synergies and future growth. Goodwill is not deductible for tax purposes. Goodwill arising from the transaction of $677 million and $666 million was allocated to our Bell Wireless and Bell Wireline groups of CGUs, respectively.

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Segmented information (Tables)

12 Months Ended

Dec. 31, 2017

Operating Segments [Abstract]

Segmented information

Segmented information

FOR THE YEAR ENDED DECEMBER 31, 2017	NOTE	BELL WIRELESS		BELL WIRELINE		BELL MEDIA		INTER- SEGMENT ELIMINA- TIONS		BCE
Operating revenues
External customers		7,838		12,205		2,676		—		22,719
Inter-segment		45		210		428		(683	)	—
Total operating revenues		7,883		12,415		3,104		(683	)	22,719
Operating costs	5	(4,607	)	(7,229	)	(2,388	)	683		(13,541	)
Segment profit (1)		3,276		5,186		716		—		9,178
Severance, acquisition and other costs	6	(18	)	(150	)	(22	)	—		(190	)
Depreciation and amortization	13, 14	(603	)	(3,102	)	(145	)	—		(3,850	)
Finance costs
Interest expense	7									(955	)
Interest on post-employment benefit     obligations	22									(72	)
Other expense	8									(102	)
Income taxes	9									(1,039	)
Net earnings										2,970
Goodwill	17	3,032		4,497		2,899		—		10,428
Indefinite-life intangible assets	14	3,891		1,692		2,645		—		8,228
Capital expenditures		731		3,174		129		—		4,034

(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.

FOR THE YEAR ENDED DECEMBER 31, 2016		NOTE	BELL WIRELESS		BELL WIRELINE		BELL MEDIA		INTER- SEGMENT ELIMINA- TIONS		BCE
Operating revenues
	External customers		7,117		11,917		2,685		—		21,719
	Inter-segment		42		187		396		(625	)	—
Total operating revenues			7,159		12,104		3,081		(625	)	21,719
Operating costs		5	(4,156	)	(7,062	)	(2,338	)	625		(12,931	)
Segment profit (1)			3,003		5,042		743		—		8,788
Severance, acquisition and other costs		6	(6	)	(130	)	1		—		(135	)
Depreciation and amortization		13, 14	(555	)	(2,816	)	(137	)	—		(3,508	)
Finance costs
	Interest expense	7									(888	)
	Interest on post-employment benefit obligations	22									(81	)
Other income		8									21
Income taxes		9									(1,110	)
Net earnings											3,087
Goodwill		17	2,304		3,831		2,823		—		8,958
Indefinite-life intangible assets		14	3,663		1,640		2,640		—		7,943
Capital expenditures			733		2,936		102		—		3,771

(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.

Revenues by services and products

Revenues by services and products

FOR THE YEAR ENDED DECEMBER 31	2017	2016
Services
Wireless	7,308	6,602
Data	7,146	6,791
Local and access	3,161	3,089
Long distance	639	741
Media	2,676	2,685
Other services	213	182
Total services	21,143	20,090
Products
Wireless	530	515
Data	519	559
Equipment and other	527	555
Total products	1,576	1,629
Total operating revenues	22,719	21,719

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Operating costs (Tables)

12 Months Ended

Dec. 31, 2017

Analysis of income and expense [abstract]

Disclosure of operating costs

FOR THE YEAR ENDED DECEMBER 31		NOTE	2017		2016
Labour costs
	Wages, salaries and related taxes and benefits		(4,158	)	(4,016	)
	Post-employment benefit plans service cost (net of capitalized amounts)	22	(242	)	(224	)
	Other labour costs (1)		(1,056	)	(1,036	)
Less:
	Capitalized labour		1,043		967
Total labour costs			(4,413	)	(4,309	)
Cost of revenues (2)			(7,056	)	(6,705	)
Other operating costs (3)			(2,072	)	(1,917	)
Total operating costs			(13,541	)	(12,931	)

(1) Other labour costs include contractor and outsourcing costs.

(2) Cost of revenues includes costs of wireless devices and other equipment sold, network and content costs, and payments to other carriers.

(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.

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Severance, acquisition and other costs (Tables)

12 Months Ended

Dec. 31, 2017

Analysis of income and expense [abstract]

Disclosure of severance, acquisition and other costs

FOR THE YEAR ENDED DECEMBER 31	2017		2016
Severance	(79	)	(87	)
Acquisition and other	(111	)	(48	)
Total severance, acquisition and other costs	(190	)	(135	)

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Interest expense (Tables)

12 Months Ended

Dec. 31, 2017

Borrowing costs [abstract]

Disclosure of interest expense

FOR THE YEAR ENDED DECEMBER 31	2017		2016
Interest expense on long-term debt	(898	)	(852	)
Interest expense on other debt	(101	)	(86	)
Capitalized interest	44		50
Total interest expense	(955	)	(888	)

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Other (expense) income (Tables)

12 Months Ended

Dec. 31, 2017

Analysis of income and expense [abstract]

Schedule of other income

FOR THE YEAR ENDED DECEMBER 31		NOTE	2017		2016
Net mark-to-market gains on derivatives used as economic hedges			88		67
Impairment of assets		13, 14	(82	)	(9	)
Losses on retirements and disposals of property, plant and equipment and intangible assets			(47	)	(28	)
Equity losses from investments in associates and joint ventures		15
	Loss on investment		(22	)	(57	)
	Operations		(9	)	(32	)
Early debt redemption costs		20	(20	)	(11	)
(Losses) gains on investments			(5	)	58
Other			(5	)	33
Total other (expense) income			(102	)	21

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Income taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Taxes [Abstract]

Significant components of income taxes deducted from net earnings

The following table shows the significant components of income taxes deducted from net earnings.

FOR THE YEAR ENDED DECEMBER 31		2017		2016
Current taxes
	Current taxes	(758	)	(850	)
	Uncertain tax positions	(9	)	(14	)
	Change in estimate relating to prior periods	40		14
	Other	—		(1	)
Deferred taxes
	Deferred taxes relating to the origination and reversal of temporary differences	(41	)	(299	)
	Change in estimate relating to prior periods	11		32
	Recognition and utilization of loss carryforwards	(304	)	(1	)
	Effect of change in provincial corporate tax rate	(3	)	4
	Resolution of uncertain tax positions	25		5
Total income taxes		(1,039	)	(1,110	)

Reconciliation of reported income taxes in the income statement with income taxes calculated at statutory income tax rate

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 27.1% for 2017 and 2016.

FOR THE YEAR ENDED DECEMBER 31	2017		2016
Net earnings	2,970		3,087
Add back income taxes	1,039		1,110
Earnings before income taxes	4,009		4,197
Applicable statutory tax rate	27.1	%	27.1	%
Income taxes computed at applicable statutory rates	(1,086	)	(1,137	)
Non-taxable portion of (losses) gains on investments	(1	)	11
Uncertain tax positions	16		(9	)
Effect of change in provincial corporate tax rate	(3	)	4
Change in estimate relating to prior periods	51		46
Non-taxable portion of equity losses	(10	)	(23	)
Other	(6	)	(2	)
Total income taxes	(1,039	)	(1,110	)
Average effective tax rate	25.9	%	26.4	%

Disclosure of current and deferred tax relating to items credited (charged) directly to equity

The following table shows aggregate current and deferred taxes relating to items recognized outside the income statements.

FOR THE YEAR ENDED DECEMBER 31	2017		2016
	OTHER COMPREHENSIVE LOSS	DEFICIT	OTHER COMPREHENSIVE LOSS		DEFICIT
Current taxes	10	9	127		11
Deferred taxes	103	2	(32	)	6
Total income tax recovery	113	11	95		17

Deferred taxes resulting fro temporary differences between the carrying amounts of assets and liabilities

The following table shows deferred taxes resulting from temporary differences between the carrying amounts of assets and liabilities recognized in the statements of financial position and their corresponding tax basis, as well as tax loss carryforwards.

NET DEFERRED TAX LIABILITY	NOTE	NON- CAPITAL LOSS CARRY- FORWARDS		POST EMPLOYMENT BENEFIT PLANS		INDEFINITE- LIFE INTANGIBLE ASSETS		PROPERTY, PLANT AND EQUIPMENT AND FINITE- LIFE INTANGIBLE ASSETS		INVESTMENT TAX CREDITS		CRTC TANGIBLE BENEFITS		OTHER		TOTAL
January 1, 2016		12		520		(1,619	)	(968	)	(6	)	61		265		(1,735	)
Income statement		(1	)	(28	)	(61	)	(152	)	(3	)	(17	)	3		(259	)
Business acquisitions		10		—		—		(79	)	—		—		(6	)	(75	)
Other comprehensive income		—		(38	)	—		—		—		—		6		(32	)
Deficit		—		—		—		—		—		—		6		6
Other		—		—		—		—		—		—		(8	)	(8	)
December 31, 2016		21		454		(1,680	)	(1,199	)	(9	)	44		266		(2,103	)
Income statement		(304	)	(31	)	(8	)	12		7		(14	)	26		(312	)
Business acquisitions	3	300		(11	)	(73	)	(223	)	(5	)	—		24		12
Other comprehensive income		—		82		—		—		—		—		21		103
Deficit		—		—		—		—		—		—		2		2
Other		—		—		—		(3	)	—		—		(2	)	(5	)
December 31, 2017		17		494		(1,761	)	(1,413	)	(7	)	30		337		(2,303	)

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Earnings per share (Tables)

12 Months Ended

Dec. 31, 2017

Earnings per share [abstract]

Schedule of components used in calculation of basic and diluted 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.

FOR THE YEAR ENDED DECEMBER 31		2017	2016
Net earnings attributable to common shareholders - basic		2,786	2,894
Dividends declared per common share (in dollars)		2.87	2.73
Weighted average number of common shares outstanding (in millions)
	Weighted average number of common shares outstanding - basic	894.3	869.1
	Assumed exercise of stock options(1)	0.6	1.2
Weighted average number of common shares outstanding - diluted (in millions)		894.9	870.3

(1) The calculation of the assumed exercise of stock options includes the effect of the average unrecognized future compensation cost of dilutive options. It excludes options for which the exercise price is higher than the average market value of a BCE common share. The number of excluded options was 3,031,125 in 2017 and 2,936,091 in 2016.

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Trade and other receivables (Tables)

12 Months Ended

Dec. 31, 2017

Subclassifications of assets, liabilities and equities [abstract]

Schedule of trade and other receivables

FOR THE YEAR ENDED DECEMBER 31	NOTE	2017		2016
Trade receivables(1)		3,138		2,967
Allowance for doubtful accounts	24	(55	)	(60	)
Allowance for revenue adjustments		(80	)	(85	)
Current tax receivable		31		35
Other accounts receivable		101		122
Total trade and other receivables		3,135		2,979

(1) The details of securitized trade receivables are set out in Note 19, Debt due within one year.

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Inventory (Tables)

12 Months Ended

Dec. 31, 2017

Inventories [Abstract]

Schedule of Inventory

FOR THE YEAR ENDED DECEMBER 31	2017		2016
Finished goods	322		333
Work in progress	76		85
Provision	(18	)	(15	)
Total inventory	380		403

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Property, plant and equipment (Tables)

12 Months Ended

Dec. 31, 2017

Property, plant and equipment [abstract]

Disclosure of detailed information about property, plant and equipment

	ESTIMATED USEFUL LIFE
Property, plant and equipment
Network infrastructure and equipment	2 to 40 years
Buildings	5 to 50 years
Finite-life intangible assets
Software	2 to 12 years
Customer relationships	3 to 26 years
Program and feature film rights	Up to 5 years

FOR THE YEAR ENDED DECEMBER 31, 2017	NETWORK INFRASTRUCTURE AND EQUIPMENT		LAND AND BUILDINGS		ASSETS UNDER CONSTRUCTION		TOTAL(1)
COST
January 1, 2017	58,680		5,572		1,374		65,626
Additions	2,492		70		1,587		4,149
Acquisition through business combinations	653		264		76		993
Transfers	775		77		(1,263	)	(411	)
Retirements and disposals	(1,105	)	(22	)	—		(1,127	)
December 31, 2017	61,495		5,961		1,774		69,230
ACCUMULATED DEPRECIATION
January 1, 2017	40,233		3,047		—		43,280
Depreciation	2,816		221		—		3,037
Retirements and disposals	(1,054	)	(19	)	—		(1,073	)
Other	(39	)	(8	)	—		(47	)
December 31, 2017	41,956		3,241		—		45,197
NET CARRYING AMOUNT
January 1, 2017	18,447		2,525		1,374		22,346
December 31, 2017	19,539		2,720		1,774		24,033

(1) Includes assets under finance leases.

FOR THE YEAR ENDED DECEMBER 31, 2016	NOTE	NETWORK INFRASTRUCTURE AND EQUIPMENT		LAND AND BUILDINGS		ASSETS UNDER CONSTRUCTION		TOTAL(1)
COST
January 1, 2016		57,233		5,174		1,287		63,694
Additions		2,361		120		1,415		3,896
Acquisition through business combinations		32		282		1		315
Transfers		692		35		(1,325	)	(598	)
Retirements and disposals		(1,637	)	(39	)	(4	)	(1,680	)
Impairment losses recognized in earnings	8	(1	)	—		—		(1	)
December 31, 2016		58,680		5,572		1,374		65,626
ACCUMULATED DEPRECIATION
January 1, 2016		39,183		2,881		—		42,064
Depreciation		2,672		205		—		2,877
Retirements and disposals		(1,591	)	(35	)	—		(1,626	)
Other		(31	)	(4	)	—		(35	)
December 31, 2016		40,233		3,047		—		43,280
NET CARRYING AMOUNT
January 1, 2016		18,050		2,293		1,287		21,630
December 31, 2016		18,447		2,525		1,374		22,346

(1) Includes assets under finance leases.

Finance leases

Disclosure of recognised finance lease as assets by lessee

The following table shows additions to and the net carrying amount of assets under finance leases.

FOR THE YEAR ENDED DECEMBER 31	ADDITIONS		NET CARRYING AMOUNT
	2017	2016	2017	2016
Network infrastructure and equipment	334	375	1,435	1,580
Land and buildings	2	72	467	506
Total	336	447	1,902	2,086

Disclosure of reconciliation of minimum future lease payments

The following table provides a reconciliation of our minimum future lease payments to the present value of our finance lease obligations.

AT DECEMBER 31, 2017		NOTE	2018		2019		2020		2021		2022		THERE- AFTER		TOTAL
Minimum future lease payments		24	572		501		326		278		248		883		2,808
Less:
	Future finance costs		(127	)	(111	)	(96	)	(80	)	(65	)	(157	)	(636	)
Present value of future lease obligations			445		390		230		198		183		726		2,172

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Intangible assets (Tables)

12 Months Ended

Dec. 31, 2017

Intangible Assets [Abstract]

Disclosure of reconciliation of changes in intangible assets

	ESTIMATED USEFUL LIFE
Property, plant and equipment
Network infrastructure and equipment	2 to 40 years
Buildings	5 to 50 years
Finite-life intangible assets
Software	2 to 12 years
Customer relationships	3 to 26 years
Program and feature film rights	Up to 5 years

		FINITE-LIFE										INDEFINITE-LIFE
FOR THE YEAR ENDED DECEMBER 31, 2017	NOTE	SOFTWARE		CUSTOMER RELATION- SHIPS		PROGRAM AND FEATURE FILM RIGHTS		OTHER		TOTAL		BRANDS	SPECTRUM AND OTHER LICENCES	BROADCAST LICENCES		TOTAL		TOTAL INTANGIBLE ASSETS
COST
January 1, 2017		7,861		1,159		682		350		10,052		2,333	3,288	2,322		7,943		17,995
Additions		344		31		1,009		7		1,391		—	—	—		—		1,391
Acquired through business combinations		98		830		—		103		1,031		110	246	—		356		1,387
Transfers		407		—		—		—		407		—	—	(1	)	(1	)	406
Retirements and disposals		(21	)	(20	)	—		(55	)	(96	)	—	—	—		—		(96	)
Impairment losses recognized in earnings	8	—		—		—		(12	)	(12	)	—	—	(70	)	(70	)	(82	)
Amortization included in operating costs		—		—		(950	)	—		(950	)	—	—	—		—		(950	)
December 31, 2017		8,689		2,000		741		393		11,823		2,443	3,534	2,251		8,228		20,051
ACCUMULATED AMORTIZATION
January 1, 2017		5,316		513		—		168		5,997		—	—	—		—		5,997
Amortization		672		102		—		39		813		—	—	—		—		813
Retirements and disposals		(21	)	—		—		(52	)	(73	)	—	—	—		—		(73	)
Other		9		—		—		—		9		—	—	—		—		9
December 31, 2017		5,976		615		—		155		6,746		—	—	—		—		6,746
NET CARRYING AMOUNT
January 1, 2017		2,545		646		682		182		4,055		2,333	3,288	2,322		7,943		11,998
December 31, 2017		2,713		1,385		741		238		5,077		2,443	3,534	2,251		8,228		13,305

		FINITE-LIFE								INDEFINITE-LIFE
FOR THE YEAR ENDED DECEMBER 31, 2016	NOTE	SOFTWARE		CUSTOMER RELATION- SHIPS	PROGRAM AND FEATURE FILM RIGHTS		OTHER	TOTAL		BRANDS	SPECTRUM AND OTHER LICENCES	BROADCAST LICENCES		TOTAL		TOTAL INTANGIBLE ASSETS
COST
January 1, 2016		6,906		866	577		325	8,674		2,333	3,267	2,334		7,934		16,608
Additions		412		—	973		17	1,402		—	21	—		21		1,423
Acquired through business combinations		—		293	—		8	301		—	—	—		—		301
Transfers		615		—	—		—	615		—	—	—		—		615
Retirements and disposals		(72	)	—	—		—	(72	)	—	—	—		—		(72	)
Business dispositions		—		—	—		—	—		—	—	(4	)	(4	)	(4	)
Impairment losses recognized in earnings	8	—		—	—		—	—		—	—	(8	)	(8	)	(8	)
Amortization included in operating costs		—		—	(868	)	—	(868	)	—	—	—		—		(868	)
December 31, 2016		7,861		1,159	682		350	10,052		2,333	3,288	2,322		7,943		17,995
ACCUMULATED AMORTIZATION
January 1, 2016		4,824		466	—		142	5,432		—	—	—		—		5,432
Amortization		558		47	—		26	631		—	—	—		—		631
Retirements and disposals		(69	)	—	—		—	(69	)	—	—	—		—		(69	)
Other		3		—	—		—	3		—	—	—		—		3
December 31, 2016		5,316		513	—		168	5,997		—	—	—		—		5,997
NET CARRYING AMOUNT
January 1, 2016		2,082		400	577		183	3,242		2,333	3,267	2,334		7,934		11,176
December 31, 2016		2,545		646	682		182	4,055		2,333	3,288	2,322		7,943		11,998

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Investments in associates and joint ventures (Tables)

12 Months Ended

Dec. 31, 2017

Interests in Other Entities [Abstract]

Disclosure of interests in associates

The following table provides summarized financial information in respect to BCE’s associates and joint ventures. For a list of our associates and joint ventures please see Note 29, Related party transactions.

FOR THE YEAR ENDED DECEMBER 31	NOTE	2017		2016
Assets		3,796		3,856
Liabilities		(2,155	)	(2,119	)
Total net assets		1,641		1,737
BCE’s share of net assets		814		852
Revenues		1,863		2,511
Expenses		(1,924	)	(2,720	)
Total net losses		(61	)	(209	)
BCE’s share of net losses	8	(31	)	(89	)

Disclosure of interests in joint arrangements

The following table provides summarized financial information in respect to BCE’s associates and joint ventures. For a list of our associates and joint ventures please see Note 29, Related party transactions.

FOR THE YEAR ENDED DECEMBER 31	NOTE	2017		2016
Assets		3,796		3,856
Liabilities		(2,155	)	(2,119	)
Total net assets		1,641		1,737
BCE’s share of net assets		814		852
Revenues		1,863		2,511
Expenses		(1,924	)	(2,720	)
Total net losses		(61	)	(209	)
BCE’s share of net losses	8	(31	)	(89	)

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Other non-current assets (Tables)

12 Months Ended

Dec. 31, 2017

Subclassifications of assets, liabilities and equities [abstract]

Disclosure of other non-current assets

FOR THE YEAR ENDED DECEMBER 31	NOTE	2017	2016
Net assets of post-employment benefit plans	22	262	403
Investments(1)		106	88
AFS publicly-traded and privately-held investments	24	103	103
Long-term notes and other receivables		101	63
Derivative assets	24	51	126
Other		277	227
Total other non-current assets		900	1,010

(1) These amounts have been pledged as security related to obligations for certain employee benefits and are not available for general use.

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Goodwill (Tables)

12 Months Ended

Dec. 31, 2017

Intangible Assets [Abstract]

Disclosure of changes in carrying amounts of goodwill

The following table provides details about the changes in the carrying amounts of goodwill for the years ended December 31, 2017 and 2016. BCE’s groups of CGUs correspond to our reporting segments.

	BELL WIRELESS	BELL WIRELINE	BELL MEDIA	BCE
Balance at January 1, 2016	2,303	3,491	2,583	8,377
Acquisitions and other	1	340	240	581
Balance at December 31, 2016	2,304	3,831	2,823	8,958
Acquisitions and other	728	666	76	1,470
Balance at December 31, 2017	3,032	4,497	2,899	10,428

Disclosure of key assumptions used to estimate the recoverable amounts of the groups CGUs

The following table shows the key assumptions used to estimate the recoverable amounts of the groups of CGUs.

	ASSUMPTIONS USED
	PERPETUITY		DISCOUNT
GROUPS OF CGUs	GROWTH RATE		RATE
Bell Wireless	0.8	%	9.1	%
Bell Wireline	1.0	%	6.0	%
Bell Media	1.0	%	8.5	%

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Trade payables and other liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Subclassifications of assets, liabilities and equities [abstract]

Disclosure of trade payables and other liabilities

FOR THE YEAR ENDED DECEMBER 31	NOTE	2017	2016
Trade payables and accruals		2,441	2,319
Deferred revenues		884	819
Compensation payable		560	531
Taxes payable		150	137
Maple Leaf Sports and Entertainment Ltd. (MLSE) financial liability (1)	24	135	135
Derivative liabilities	24	96	18
CRTC tangible benefits obligation	24	38	51
Provisions	21	55	39
Severance and other costs payable		29	30
CRTC deferral account obligation	24	28	32
Other current liabilities		207	215
Total trade payables and other liabilities		4,623	4,326

(1) Represents BCE’s obligation to repurchase the BCE Master Trust Fund’s (Master Trust) 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recorded in Other (expense) income in the income statements.

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Debt due within one year (Tables)

12 Months Ended

Dec. 31, 2017

Financial Instruments [Abstract]

Disclosure of detailed information about borrowings

FOR THE YEAR ENDED DECEMBER 31	NOTE	WEIGHTED  AVERAGE INTEREST RATE		2017	2016
Notes payable(1)	24	1.16	%	3,151	2,649
Loans secured by trade receivables	24	2.11	%	921	931
Long-term debt due within one year(2)		4.38	%	1,106	835
Unsecured committed term credit facility(3)				—	479
Net unamortized discount				—	(1	)
Unamortized debt issuance costs				—	(6	)
Total long-term debt due within one year	20			1,106	1,307
Total debt due within one year				5,178	4,887

(1) Includes commercial paper of $2,484 million in U.S. dollars ($3,116 million in Canadian dollars) and $1,945 million in U.S. dollars ($2,612 million in Canadian dollars) as at December 31, 2017 and 2016, respectively, which were issued under our U.S. commercial paper program and have been hedged for foreign currency fluctuations through forward currency contracts. See Note 24, Financial and capital management for additional details.

(2) Included in long-term debt due within one year is the current portion of finance leases of $445 million and $435 million as at December 31, 2017 and December 31, 2016, respectively.

(3) In 2017, Bell Canada repaid $357 million in U.S. dollars ($480 million in Canadian dollars) representing all of the borrowings outstanding under its unsecured committed term credit facility. Accordingly, this credit facility was closed and the cross currency basis swap which was used to hedge the U.S. currency exposure under such credit facility was settled. See Note 24, Financial and capital management for additional details.

Securitized trade receivables

FOR THE YEAR ENDED DECEMBER 31			NOTE	WEIGHTED  AVERAGE INTEREST RATE		MATURITY	2017		2016
	Debt securities
		1997 trust indenture		3.86	%	2018-2047	14,950		13,600
		1976 trust indenture		9.54	%	2021-2054	1,100		1,100
		2011 trust indenture(1)		4.28	%	2018-2024	425		—
		2001 trust indenture(1)		5.63	%	2019	200		—
	Subordinated debentures			8.21	%	2026-2031	275		275
	Finance leases		13	6.64	%	2018-2047	2,172		2,260
	Unsecured committed term credit facility(2)		19				—		479
	Other						195		188
Total debt							19,317		17,902
	Net unamortized premium						50		18
	Unamortized debt issuance costs						(46	)	(41	)
	Less:
		Amount due within one year	19				(1,106	)	(1,307	)
Total long-term debt							18,215		16,572

Disclosure of securitiezed trade receivables

The following table provides further details on our securitized trade receivables programs.

FOR THE YEAR ENDED DECEMBER 31	2017		2016
Average interest rate throughout the year	1.74	%	1.51	%
Securitized trade receivables	1,867		1,904

Disclosure of detailed information about credit facility

The table below is a summary of our total bank credit facilities at December 31, 2017.

	TOTAL AVAILABLE	DRAWN	LETTERS OF CREDIT	COMMERCIAL PAPER OUTSTANDING	NET AVAILABLE
Committed credit facilities
Unsecured revolving credit and expansion facilities (1)(2)	3,500	—	—	3,116	384
Other	134	—	106	—	28
Total committed credit facilities	3,634	—	106	3,116	412
Total non-committed credit facilities	1,829	—	1,148	—	681
Total committed and non-committed credit facilities	5,463	—	1,254	3,116	1,093

(1) Bell Canada’s $2.5 billion revolving credit facility expires in November 2022 and its $1 billion expansion credit facility expires in November 2020.

(2) As of December 31, 2017, Bell Canada’s outstanding commercial paper included $2,484 million in U.S. dollars ($3,116 million in Canadian dollars). All of Bell Canada’s commercial paper outstanding is included in debt due within one year.

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Long-term debt (Tables)

12 Months Ended

Dec. 31, 2017

Financial Instruments [Abstract]

Disclosure of detailed information about borrowings

FOR THE YEAR ENDED DECEMBER 31	NOTE	WEIGHTED  AVERAGE INTEREST RATE		2017	2016
Notes payable(1)	24	1.16	%	3,151	2,649
Loans secured by trade receivables	24	2.11	%	921	931
Long-term debt due within one year(2)		4.38	%	1,106	835
Unsecured committed term credit facility(3)				—	479
Net unamortized discount				—	(1	)
Unamortized debt issuance costs				—	(6	)
Total long-term debt due within one year	20			1,106	1,307
Total debt due within one year				5,178	4,887

(1) Includes commercial paper of $2,484 million in U.S. dollars ($3,116 million in Canadian dollars) and $1,945 million in U.S. dollars ($2,612 million in Canadian dollars) as at December 31, 2017 and 2016, respectively, which were issued under our U.S. commercial paper program and have been hedged for foreign currency fluctuations through forward currency contracts. See Note 24, Financial and capital management for additional details.

(2) Included in long-term debt due within one year is the current portion of finance leases of $445 million and $435 million as at December 31, 2017 and December 31, 2016, respectively.

(3) In 2017, Bell Canada repaid $357 million in U.S. dollars ($480 million in Canadian dollars) representing all of the borrowings outstanding under its unsecured committed term credit facility. Accordingly, this credit facility was closed and the cross currency basis swap which was used to hedge the U.S. currency exposure under such credit facility was settled. See Note 24, Financial and capital management for additional details.

Securitized trade receivables

FOR THE YEAR ENDED DECEMBER 31			NOTE	WEIGHTED  AVERAGE INTEREST RATE		MATURITY	2017		2016
	Debt securities
		1997 trust indenture		3.86	%	2018-2047	14,950		13,600
		1976 trust indenture		9.54	%	2021-2054	1,100		1,100
		2011 trust indenture(1)		4.28	%	2018-2024	425		—
		2001 trust indenture(1)		5.63	%	2019	200		—
	Subordinated debentures			8.21	%	2026-2031	275		275
	Finance leases		13	6.64	%	2018-2047	2,172		2,260
	Unsecured committed term credit facility(2)		19				—		479
	Other						195		188
Total debt							19,317		17,902
	Net unamortized premium						50		18
	Unamortized debt issuance costs						(46	)	(41	)
	Less:
		Amount due within one year	19				(1,106	)	(1,307	)
Total long-term debt							18,215		16,572

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Provisions (Tables)

12 Months Ended

Dec. 31, 2017

Other Provisions, Contingent Liabilities And Contingent Assets [Abstract]

Disclosure of other provisions

FOR THE YEAR ENDED DECEMBER 31	NOTE	Asset retirement obligations (AROs)		Other (1)		Total
January 1, 2017		175		137		312
Additions		14		46		60
Usage		(2	)	(30	)	(32	)
Reversals		(18	)	(12	)	(30	)
Acquired through business combinations		1		17		18
December 31, 2017		170		158		328
Current	18	11		44		55
Non-current	23	159		114		273
December 31, 2017		170		158		328

(1)Other includes environmental, legal, regulatory and vacant space provisions.

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Post-employee benefit plans (Tables)

12 Months Ended

Dec. 31, 2017

Employee Benefits [Abstract]

Components of post-employment benefit plans service cost

COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS SERVICE COST

FOR THE YEAR ENDED DECEMBER 31		2017		2016
DB pension		(208	)	(203	)
DC pension		(102	)	(100	)
OPEBs		(6	)	(7	)
Plan amendment gain on OPEBs and DB pension		16		27
Less:
	Capitalized benefit plans cost	58		59
Total post-employment benefit plans service cost included in operating costs		(242	)	(224	)
Other costs recognized in severance, acquisition and other costs		(10	)	5
Total post-employment benefit plans service cost		(252	)	(219	)

Components of post-employment benefit plans financing cost

COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS FINANCING COST

FOR THE YEAR ENDED DECEMBER 31	2017		2016
DB pension	(18	)	(24	)
OPEBs	(54	)	(57	)
Total interest on post-employment benefit obligations	(72	)	(81	)

Defined benefit plans recognized in comprehensive income

The statements of comprehensive income include the following amounts before income taxes.

		2017		2016
Cumulative losses recognized directly in equity, January 1		(2,646	)	(2,384	)
	Actuarial losses in other comprehensive income(1)	(313	)	(264	)
	(Increase) decrease in the effect of the asset limit(2)	(25	)	2
Cumulative losses recognized directly in equity, December 31		(2,984	)	(2,646	)

(1) The cumulative actuarial losses recognized in the statements of comprehensive income are $3,217 million in 2017.

(2) The cumulative decrease in the effect of the asset limit recognized in the statements of comprehensive income is $233 million in 2017.

Components of post-employment benefit (obligations) assets

The following table shows the change in post-employment benefit obligations and the fair value of plan assets.

		DB PENSION PLANS				OPEB PLANS				TOTAL
		2017		2016		2017		2016		2017		2016
Post-employment benefit obligations, January 1		(20,853	)	(20,675	)	(1,684	)	(1,705	)	(22,537	)	(22,380	)
	Current service cost	(208	)	(203	)	(6	)	(7	)	(214	)	(210	)
	Interest on obligations	(896	)	(852	)	(65	)	(68	)	(961	)	(920	)
	Actuarial (losses) gains(1)	(1,193	)	(311	)	(28	)	12		(1,221	)	(299	)
	Net curtailment (losses) gains	(4	)	27		16		5		12		32
	Loss on plan transfer	(6	)	—		—		—		(6	)	—
	Benefit payments	1,320		1,169		81		79		1,401		1,248
	Employee contributions	(10	)	(5	)	—		—		(10	)	(5	)
	Acquisition of MTS	(2,677	)	—		(5	)	—		(2,682	)	—
	Plan transfer	122		—		—		—		122		—
	Other	1		(3	)	38		—		39		(3	)
Post-employment benefit obligations, December 31		(24,404	)	(20,853	)	(1,653	)	(1,684	)	(26,057	)	(22,537	)
Fair value of plan assets, January 1		20,563		20,244		280		266		20,843		20,510
	Expected return on plan assets(2)	878		828		11		11		889		839
	Actuarial gains(1)	896		29		12		6		908		35
	Benefit payments	(1,320	)	(1,169	)	(81	)	(79	)	(1,401	)	(1,248	)
	Employer contributions	305		626		77		76		382		702
	Employee contributions	10		5		—		—		10		5
	Acquisition of MTS	2,735		—		—		—		2,735		—
	Plan transfer	(122	)	—		—		—		(122	)	—
Fair value of plan assets, December 31		23,945		20,563		299		280		24,244		20,843
Plan deficit		(459	)	(290	)	(1,354	)	(1,404	)	(1,813	)	(1,694	)
Effect of asset limit		(33	)	(8	)	—		—		(33	)	(8	)
Post-employment benefit liability, December 31		(492	)	(298	)	(1,354	)	(1,404	)	(1,846	)	(1,702	)
Post-employment benefit assets included in other non-current assets		262		403		—		—		262		403
Post-employment benefit obligations		(754	)	(701	)	(1,354	)	(1,404	)	(2,108	)	(2,105	)

(1) Actuarial (losses) gains include experience gains of $911 million in 2017 and $157 million in 2016.

(2) The actual return on plan assets was $1,797 million or 8.2% in 2017 and $874 million or 4.7% in 2016.

Funded status of post-employment benefit plans cost

The following table shows the funded status of our post-employment benefit obligations.

	FUNDED				PARTIALLY FUNDED(1)				UNFUNDED(2)				TOTAL
FOR THE YEAR ENDED DECEMBER 31	2017		2016		2017		2016		2017		2016		2017		2016
Present value of post-     employment benefit     obligations	(23,746	)	(20,249	)	(1,976	)	(1,995	)	(335	)	(293	)	(26,057	)	(22,537	)
Fair value of plan assets	23,894		20,520		350		323		—		—		24,244		20,843
Plan surplus (deficit)	148		271		(1,626	)	(1,672	)	(335	)	(293	)	(1,813	)	(1,694	)

(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 benefits are funded through life insurance contracts.

(2) Our unfunded plans consist of OPEBs, which are pay-as-you-go.

Disclosure of significant assumptions

We used the following key assumptions to measure the post-employment benefit obligations and the net benefit plans cost for the DB pension plans and OPEB plans. These assumptions are long-term, which is consistent with the nature of post-employment benefit plans.

		DB PENSION PLANS AND OPEB PLANS
		2017		2016
At December 31
Post-employment benefit obligations
	Discount rate	3.6	%	4.0	%
	Rate of compensation increase	2.25	%	2.25	%
	Cost of living indexation rate(1)	1.6	%	1.6	%
	Life expectancy at age 65 (years)	23.2		23.1
For the year ended December 31
Net post-employment benefit plans cost
	Discount rate	4.2	%	4.3	%
	Rate of compensation increase	2.25	%	2.5	%
	Cost of living indexation rate(1)	1.6	%	1.6	%
	Life expectancy at age 65 (years)	23.1		23.0

(1) Cost of living indexation rate is only applicable to DB pension plans.

Disclosure of sensitivity analysis for actuarial assumptions [text block]

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	7	(5	)
Post-employment benefit obligations	133	(115	)

The following table shows a sensitivity analysis of key assumptions used to measure the net post-employment benefit obligations and the net post-employment benefit plans cost for our DB pension plans and OPEB plans.

			IMPACT ON NET POST-EMPLOYMENT BENEFIT PLANS COST FOR 2017 – INCREASE/(DECREASE)				IMPACT ON POST-EMPLOYMENT BENEFIT OBLIGATIONS AT DECEMBER 31, 2017 – INCREASE/(DECREASE)
	CHANGE IN ASSUMPTION		INCREASE IN ASSUMPTION		DECREASE IN ASSUMPTION		INCREASE IN ASSUMPTION		DECREASE IN ASSUMPTION
Discount rate	0.5	%	(70	)	62		(1,636	)	1,746
Life expectancy at age 65	1 year		33		(31	)	834		(808	)

Post-employment benefit plan assets

The following table shows the target allocations for 2017 and the allocation of our post-employment benefit plan assets at December 31, 2017 and 2016.

	WEIGHTED AVERAGE TARGET ALLOCATION	TOTAL PLAN ASSETS FAIR VALUE AT DECEMBER 31 ( % )
ASSET CATEGORY	2017	2017		2016
Equity securities	20%–35%	22	%	22	%
Debt securities	55%–80%	65	%	68	%
Alternative investments	0%–25%	13	%	10	%
Total		100	%	100	%

The following table shows the fair value of the DB pension plan assets at the end of the year for each category.

FOR THE YEAR ENDED DECEMBER 31			2017	2016
Observable markets data
	Equity securities
		Canadian	1,045	901
		Foreign	4,349	3,682
	Debt securities
		Canadian	13,126	12,469
		Foreign	1,890	1,068
		Money market	491	387
Non-observable markets inputs
	Alternative investments
		Private equities	1,484	1,164
		Hedge funds	965	726
		Real estate	484	55
		Other	111	111
Total			23,945	20,563

Disclosure of contributions to post-employment benefit plans

The following table shows the amounts we contributed to the DB and DC pension plans and the payments made to beneficiaries under OPEB plans.

	DB PLANS(1)				DC PLANS				OPEB PLANS
FOR THE YEAR ENDED DECEMBER 31	2017		2016		2017		2016		2017		2016
Contributions	(305	)	(626	)	(108	)	(99	)	(77	)	(76	)

(1) Includes voluntary contributions of $100 million in 2017 and $400 million in 2016.

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Other non-current liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Subclassifications of assets, liabilities and equities [abstract]

Disclosure of other non-current liabilities

FOR THE YEAR ENDED DECEMBER 31	NOTE	2017	2016
Long-term disability benefits obligation		322	302
Provisions	21	273	273
Deferred revenue on long-term contracts		174	105
CRTC deferral account obligation	24	96	104
Future tax liabilities		81	73
CRTC tangible benefits obligation	24	73	115
Other		204	305
Total other non-current liabilities		1,223	1,277

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Financial and capital management (Tables)

12 Months Ended

Dec. 31, 2017

Financial Instruments [Abstract]

Disclosure of financial liabilities

The following table provides the fair value details of financial instruments measured at amortized cost in the statements of financial position.

				DECEMBER 31, 2017		DECEMBER 31, 2016
	CLASSIFICATION	FAIR VALUE METHODOLOGY	NOTE	CARRYING VALUE	FAIR VALUE	CARRYING VALUE	FAIR VALUE
CRTC tangible benefits obligation	Trade payables and other liabilities and non-current liabilities	Present value of estimated future cash flows discounted using observable market interest rates	18, 23	111	110	166	169
CRTC deferral account obligation	Trade payables and other liabilities and non-current liabilities	Present value of estimated future cash flows discounted using observable market interest rates	18, 23	124	128	136	145
Debt securities, finance leases and other debt	Debt due within one year and long-term debt	Quoted market price of debt or present value of future cash flows discounted using observable market interest rates	19, 20	19,321	21,298	17,879	20,093

Disclosure of fair value measurement of assets

The following table provides the fair value details of financial instruments measured at fair value in the statements of financial position.

					FAIR VALUE AT DECEMBER 31
	CLASSIFICATION	NOTE	CARRYING VALUE OF ASSET (LIABILITY) AT DECEMBER 31		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)	OBSERVABLE MARKET DATA (LEVEL 2)(1)		NON-OBSERVABLE MARKET INPUTS (LEVEL 3)(2)
2017
AFS publicly-traded and privately-held investments	Other non-current assets	16	103		1	—		102
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities		(48	)	—	(48	)	—
MLSE financial liability(3)	Trade payables and other liabilities	18	(135	)	—	—		(135	)
Other	Other non-current assets and liabilities		60		—	106		(46	)
2016
AFS publicly-traded and privately-held investments	Other non-current assets	16	103		1	—		102
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities		166		—	166		—
MLSE financial liability(3)	Trade payables and other liabilities	18	(135	)	—	—		(135	)
Other	Other non-current assets and liabilities		35		—	88		(53	)

(1) Observable market data such as equity prices, interest rates, swap rate curves and foreign currency exchange rates.

(2) Non-observable market inputs such as discounted cash flows and earnings multiples. A reasonable change in our assumptions would not result in a significant increase (decrease) to our level 3 financial instruments.

(3) Represents BCE’s obligation to repurchase the Master Trust’s 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recorded in Other (expense) income in the income statements.

Disclosure of fair value measurement of liabilities

The following table provides the fair value details of financial instruments measured at fair value in the statements of financial position.

					FAIR VALUE AT DECEMBER 31
	CLASSIFICATION	NOTE	CARRYING VALUE OF ASSET (LIABILITY) AT DECEMBER 31		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)	OBSERVABLE MARKET DATA (LEVEL 2)(1)		NON-OBSERVABLE MARKET INPUTS (LEVEL 3)(2)
2017
AFS publicly-traded and privately-held investments	Other non-current assets	16	103		1	—		102
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities		(48	)	—	(48	)	—
MLSE financial liability(3)	Trade payables and other liabilities	18	(135	)	—	—		(135	)
Other	Other non-current assets and liabilities		60		—	106		(46	)
2016
AFS publicly-traded and privately-held investments	Other non-current assets	16	103		1	—		102
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities		166		—	166		—
MLSE financial liability(3)	Trade payables and other liabilities	18	(135	)	—	—		(135	)
Other	Other non-current assets and liabilities		35		—	88		(53	)

(1) Observable market data such as equity prices, interest rates, swap rate curves and foreign currency exchange rates.

(2) Non-observable market inputs such as discounted cash flows and earnings multiples. A reasonable change in our assumptions would not result in a significant increase (decrease) to our level 3 financial instruments.

(3) Represents BCE’s obligation to repurchase the Master Trust’s 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recorded in Other (expense) income in the income statements.

Disclosure of financial assets

The following table provides the change in allowance for doubtful accounts for trade receivables.

	NOTE	2017		2016
Balance, January 1		(60	)	(64	)
Additions		(99	)	(102	)
Usage		104		106
Balance, December 31	11	(55	)	(60	)

Disclosure of financial assets that are either past due or impaired

The following table provides further details on trade receivables not impaired.

AT DECEMBER 31		2017	2016
Trade receivables not past due		2,257	2,187
Trade receivables past due and not impaired
	Under 60 days	491	286
	60 to 120 days	279	359
	Over 120 days	56	75
Trade receivables, net of allowance for doubtful accounts		3,083	2,907

Disclosure of how entity manages liquidity risk

The following table is a maturity analysis for recognized financial liabilities at December 31, 2017 for each of the next five years and thereafter.

AT DECEMBER 31, 2017	NOTE	2018	2019	2020	2021	2022	THERE- AFTER	TOTAL
Long-term debt	20	661	1,541	1,424	2,247	1,714	9,558	17,145
Notes payable	19	3,151	—	—	—	—	—	3,151
Minimum future lease payments under finance leases	13	572	501	326	278	248	883	2,808
Loan secured by trade receivables	19	921	—	—	—	—	—	921
Interest payable on long-term debt, notes     payable and loan secured by trade     receivables		792	688	628	586	525	5,197	8,416
MLSE financial liability	18	135	—	—	—	—	—	135
Total		6,232	2,730	2,378	3,111	2,487	15,638	32,576

Disclosure of detailed information about hedged items

The following table provides further details on our outstanding foreign currency forward contracts and cross currency basis swaps as at December 31, 2017.

TYPE OF HEDGE	BUY CURRENCY	AMOUNT TO RECEIVE	SELL CURRENCY	AMOUNT TO PAY	MATURITY	HEDGED ITEM
Cash flow	USD	2,492	CAD	3,180	2018	Commercial paper
Cash flow	USD	872	CAD	1,134	2018	Anticipated transactions
Cash flow	CAD	97	USD	75	2018-2019	Anticipated transactions
Cash flow	USD	576	CAD	721	2019	Anticipated transactions
Cash flow	USD	76	CAD	96	2020-2021	Anticipated transactions
Economic	USD	36	CAD	46	2018	Anticipated transactions

Disclosure of key internal ratios and metrics

The following table provides a summary of our key ratios.

AT DECEMBER 31	2017	2016
Net debt leverage ratio	2.70	2.57
Adjusted EBITDA to net interest expense ratio	9.12	9.31

(1) Our net debt leverage ratio represents net debt divided by adjusted EBITDA. We define 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 our statements of financial position. Adjusted EBITDA is defined as operating revenues less operating costs as shown in our income statements.

(2) Our adjusted EBITDA to net interest expense ratio represents adjusted EBITDA divided by net interest expense. Adjusted EBITDA is defined as operating revenues less operating costs as shown in our income statements. Net interest expense is net interest expense as shown in our statements of cash flows and 50% of declared preferred share dividends as shown in our income statements.

Disclosure of detailed information about hedging instruments [text block]

The following table provides further details on our outstanding foreign currency forward contracts and cross currency basis swaps as at December 31, 2017.

TYPE OF HEDGE	BUY CURRENCY	AMOUNT TO RECEIVE	SELL CURRENCY	AMOUNT TO PAY	MATURITY	HEDGED ITEM
Cash flow	USD	2,492	CAD	3,180	2018	Commercial paper
Cash flow	USD	872	CAD	1,134	2018	Anticipated transactions
Cash flow	CAD	97	USD	75	2018-2019	Anticipated transactions
Cash flow	USD	576	CAD	721	2019	Anticipated transactions
Cash flow	USD	76	CAD	96	2020-2021	Anticipated transactions
Economic	USD	36	CAD	46	2018	Anticipated transactions

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Share capital (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure Of Share Capital, Reserves And Other Equity Interest [Abstract]

Summary of principal terms of preference shares

The following table provides a summary of the principal terms of BCE’s First Preferred Shares as at December 31, 2017. There were no Second Preferred Shares issued and outstanding at December 31, 2017. BCE’s articles of amalgamation, as amended, describe the terms and conditions of these shares in detail.

	ANNUAL DIVIDEND RATE						NUMBER OF SHARES		STATED CAPITAL
SERIES			CONVERTIBLE INTO	CONVERSION DATE	REDEMPTION DATE	REDEMPTION PRICE	AUTHORIZED	ISSUED AND OUTSTANDING	DEC. 31, 2017	DEC. 31, 2016
Q	floating		Series R	December 1, 2025		$25.50	8,000,000	—	—	—
R(1)	4.13	%	Series Q	December 1, 2020	December 1, 2020	$25.00	8,000,000	8,000,000	200	200
S	floating		Series T	November 1, 2021	At any time	$25.50	8,000,000	3,513,448	88	88
T(1)	3.019	%	Series S	November 1, 2021	November 1, 2021	$25.00	8,000,000	4,486,552	112	112
Y	floating		Series Z	December 1, 2022	At any time	$25.50	10,000,000	8,081,491	202	219
Z(1)	3.904	%	Series Y	December 1, 2022	December 1, 2022	$25.00	10,000,000	1,918,509	48	31
AA(1)	3.61	%	Series AB	September 1, 2022	September 1, 2022	$25.00	20,000,000	11,398,396	291	259
AB	floating		Series AA	September 1, 2022	At any time	$25.50	20,000,000	8,601,604	219	251
AC(1)	3.55	%	Series AD	March 1, 2018	March 1, 2018	$25.00	20,000,000	5,069,935	129	129
AD	floating		Series AC	March 1, 2018	At any time	$25.50	20,000,000	14,930,065	381	381
AE	floating		Series AF	February 1, 2020	At any time	$25.50	24,000,000	9,292,133	232	232
AF(1)	3.11	%	Series AE	February 1, 2020	February 1, 2020	$25.00	24,000,000	6,707,867	168	168
AG(1)	2.80	%	Series AH	May 1, 2021	May 1, 2021	$25.00	22,000,000	4,985,351	125	125
AH	floating		Series AG	May 1, 2021	At any time	$25.50	22,000,000	9,014,649	225	225
AI(1)	2.75	%	Series AJ	August 1, 2021	August 1, 2021	$25.00	22,000,000	5,949,884	149	149
AJ	floating		Series AI	August 1, 2021	At any time	$25.50	22,000,000	8,050,116	201	201
AK(1)	2.954	%	Series AL	December 31, 2021	December 31, 2021	$25.00	25,000,000	22,745,921	569	569
AL(2)	floating		Series AK	December 31, 2021	At any time		25,000,000	2,254,079	56	56
AM(1)	2.764	%	Series AN	March 31, 2021	March 31, 2021	$25.00	30,000,000	9,546,615	218	218
AN(2)	floating		Series AM	March 31, 2021	At any time		30,000,000	1,953,385	45	45
AO(1)	4.26	%	Series AP	March 31, 2022	March 31, 2022	$25.00	30,000,000	4,600,000	118	118
AP(3)	floating		Series AO	March 31, 2027			30,000,000	—	—	—
AQ(1)	4.25	%	Series AR	September 30, 2018	September 30, 2018	$25.00	30,000,000	9,200,000	228	228
AR(3)	floating		Series AQ	September 30, 2023			30,000,000	—	—	—
									4,004	4,004

(1) BCE may redeem each of these series of First Preferred Shares on the applicable redemption date and every five years after that date.

(2) BCE may redeem Series AL and AN First Preferred Shares at $25.00 per share on December 31, 2021 and March 31, 2021, respectively, and every five years thereafter (each, a Series conversion date). Alternatively, BCE may redeem Series AL or AN First Preferred Shares at $25.50 per share on any date which is not a Series conversion date for such series of First Preferred Shares.

(3) If Series AP or AR First Preferred Shares are issued on March 31, 2022 and September 30, 2018, respectively, BCE may redeem such shares at $25.00 per share on March 31, 2027 and September 30, 2023, respectively, and every five years thereafter (each, a Series conversion date). Alternatively, BCE may redeem Series AP or AR First Preferred Shares at $25.50 per share on any date, in the case of Series AP First Preferred Shares, and on any date afterSeptember 30, 2018, in the case of Series AR First Preferred Shares, which is not a Series conversion date for each relevant series.

The following table provides details about the outstanding common shares of BCE.

		2017		2016
	NOTE	NUMBER OF SHARES	STATED CAPITAL	NUMBER OF SHARES	STATED CAPITAL
Outstanding, January 1		870,706,332	18,370	865,614,188	18,100
Shares issued for the acquisition of MTS	3	27,642,714	1,594	—	—
Shares issued under employee stock option plan	26	2,555,863	122	2,236,891	104
Shares issued under dividend reinvestment plan		—	—	688,839	38
Shares issued under ESP		91,731	5	2,166,414	128
Outstanding, December 31		900,996,640	20,091	870,706,332	18,370

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Share-based payments (Tables)

12 Months Ended

Dec. 31, 2017

Share-based Payment Arrangements [Abstract]

Explanation of effect of share-based payments on entity's profit or loss

The following share-based payment amounts are included in the income statements as operating costs.

FOR THE YEAR ENDED DECEMBER 31	2017		2016
ESP	(28	)	(29	)
RSUs/PSUs	(44	)	(49	)
Other (1)	(9	)	(12	)
Total share-based payments	(81	)	(90	)

(1) Includes DSP, DSUs and stock options.

Disclosure of number and weighted average exercise prices of share options

The following table summarizes BCE’s outstanding stock options at December 31, 2017 and 2016.

		2017			2016
	NOTE	NUMBER OF OPTIONS		WEIGHTED AVERAGE EXERCISE PRICE ($)	NUMBER OF OPTIONS		WEIGHTED AVERAGE EXERCISE PRICE ($)
Outstanding, January 1		10,242,162		52	9,666,904		48
Granted		3,043,448		59	2,968,062		58
Exercised(1)	25	(2,555,863	)	45	(2,236,891	)	44
Forfeited		(239,498	)	58	(155,913	)	52
Outstanding, December 31		10,490,249		55	10,242,162		52
Exercisable, December 31		2,013,983		45	1,786,251		42

(1) The weighted average share price for options exercised was $60 and $59 in 2017 and 2016, respectively.

The following table summarizes the status of unvested employer contributions at December 31, 2017 and 2016.

NUMBER OF ESP SHARES	2017		2016
Unvested contributions, January 1	1,073,212		1,146,046
Contributions(1)	610,657		600,808
Dividends credited	49,299		49,988
Vested	(553,837	)	(586,309	)
Forfeited	(140,301	)	(137,321	)
Unvested contributions, December 31	1,039,030		1,073,212

(1) The weighted average fair value of the shares contributed was $60 and $59 in 2017 and 2016, respectively.

Disclosure of number and weighted average exercise prices of other equity instruments

The following table summarizes outstanding RSUs/PSUs at December 31, 2017 and 2016.

NUMBER OF RSUs /PSUs	2017		2016
Outstanding, January 1	2,928,698		3,333,583
Granted(1)	879,626		874,888
Dividends credited	132,402		137,583
Settled	(1,096,403	)	(1,321,846	)
Forfeited	(103,931	)	(95,510	)
Outstanding, December 31	2,740,392		2,928,698
Vested, December 31(2)	985,382		1,058,200

(1) The weighted average fair value of the RSUs/PSUs granted was $58 in 2017 and 2016.

(2) The RSUs/PSUs vested on December 31, 2017 were fully settled in February 2018 with BCE common shares and/or DSUs.

Disclosure of range of exercise prices of outstanding share options

The following table provides additional information about BCE’s stock option plans at December 31, 2017.

	STOCK OPTIONS OUTSTANDING
RANGE OF EXERCISE PRICES	NUMBER	WEIGHTED AVERAGE REMAINING LIFE (YEARS)	WEIGHTED AVERAGE EXERCISE PRICE ($)
$30–$39	35,408	0.14	36
$40-$49	1,978,575	2.54	46
$50-$59	8,377,818	5.19	58
$60 & above	98,448	5.84	61
	10,490,249	4.68	55

Disclosure of indirect measurement of fair value of goods or services received, share options granted during period

The following table shows the principal assumptions used in the valuation.

	2017
Weighted average fair value per option granted	$1.97
Weighted average share price	$58
Weighted average exercise price	$59
Dividend yield	5	%
Expected volatility	13	%
Risk-free interest rate	1	%
Expected life (years)	4

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Additional cash flow information (Tables)

12 Months Ended

Dec. 31, 2017

Statement of cash flows [abstract]

Schedule of reconciliation of changes in liabilities arising from financing activities

The following table provides a reconciliation of changes in liabilities arising from financing activities.

	NOTE	DEBT DUE WITHIN ONE YEAR AND LONG-TERM DEBT		DERIVATIVE TO HEDGE FOREIGN CURRENCY ON DEBT (1)		DIVIDENDS PAYABLE		OTHER LIABILITIES		TOTAL
January 1, 2017		21,459		(31	)	617		—		22,045
Cash flows from (used in) financing activities
Increase in notes payable		452		(119	)	—		—		333
Issue of long-term debt		3,011		—		—		—		3,011
Repayments of long-term debt		(2,653	)	—		—		—		(2,653	)
Cash dividends paid on common and preferred shares		—		—		(2,639	)	—		(2,639	)
Cash dividends paid by subsidiaries to non-controlling interests	30	—		—		(34	)	—		(34	)
Other financing activities		(44	)	6		—		(22	)	(60	)
Total cash flows from (used in) financing activities excluding equity		766		(113	)	(2,673	)	(22	)	(2,042	)
Non-cash changes arising from
Finance lease additions		339		—		—		—		339
Dividends declared on common and preferred shares		—		—		2,692		—		2,692
Dividends declared by subsidiaries to non-controlling interests		—		—		45		—		45
Effect of changes in foreign exchange rates		(198	)	198		—		—		—
Business acquisitions	3	972		—		—		—		972
Other		55		—		(3	)	22		74
Total non-cash changes		1,168		198		2,734		22		4,122
December 31, 2017		23,393		54		678		—		24,125

(1) Included in Other current assets, Trade payables and other liabilities, Other non-current assets and Other non-current liabilities in the statements of financial position.

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Committments and contingencies (Tables)

12 Months Ended

Dec. 31, 2017

Other Provisions, Contingent Liabilities And Contingent Assets [Abstract]

Contractual obligation, fiscal year maturity schedule

The following table is a summary of our contractual obligations at December 31, 2017 that are due in each of the next five years and thereafter.

	NOTE	2018	2019	2020	2021	2022	THERE- AFTER	TOTAL
Operating leases		312	264	225	175	119	341	1,436
Commitments for property, plant and      equipment and intangible assets		1,039	808	614	516	372	808	4,157
Purchase obligations		865	664	550	498	429	903	3,909
Proposed acquisition of Séries+ and Historia specialty channels	3	200	—	—	—	—	—	200
Acquisition of AlarmForce (1)	3	182	—	—	—	—	—	182
Total		2,598	1,736	1,389	1,189	920	2,052	9,884

(1) This commitment was settled on January 5, 2018, upon completion of the acquisition of AlarmForce. See Note 3, Business acquisitions and dispositions for additional details.

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Related party transactions (Tables)

12 Months Ended

Dec. 31, 2017

Related Party [Abstract]

Disclosure of interests in subsidiaries

The following table shows BCE’s significant subsidiaries at December 31, 2017. 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 significant 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	2017		2016
Bell Canada	100	%	100	%
Bell Mobility	100	%	100	%
Bell Media	100	%	100	%

The following tables show summarized financial information for our subsidiaries with significant non-controlling interest (NCI).

Summarized statements of financial position

	CTV SPECIALTY(1) (2)
FOR THE YEAR ENDED DECEMBER 31	2017	2016
Current assets	328	293
Non-current assets	1,013	1,013
Total assets	1,341	1,306
Current liabilities	153	130
Non-current liabilities	184	195
Total liabilities	337	325
Total equity attributable to BCE shareholders	700	687
NCI	304	294

(1) At December 31, 2017 and 2016, the ownership interest held by NCI in CTV Specialty Television Inc. (CTV Specialty) was 29.9%. CTV Specialty was incorporated and operated in Canada as at such dates.

(2) CTV Specialty's net assets at December 31, 2017 and 2016, include $6 million and $2 million, respectively, directly attributable to NCI.

Selected income and cash flow information

	CTV SPECIALTY(1)
FOR THE YEAR ENDED DECEMBER 31	2017	2016
Operating revenues	832	824
Net earnings	179	182
Net earnings attributable to NCI	56	56
Total comprehensive income	172	173
Total comprehensive income attributable to NCI	54	54
Cash dividends paid to NCI	34	46

(1) CTV Specialty's net earnings and total comprehensive income include $3 million directly attributable to NCI for 2017 and 2016, respectively.

Disclosure of transactions with key management personnel

The following table includes compensation of key management personnel and the board of directors for the years ended December 31, 2017 and 2016 included in our income statements. Key management personnel include the company’s Chief Executive Officer (CEO), Group President and the executives who report directly to them.

FOR THE YEAR ENDED DECEMBER 31	2017		2016
Wages, salaries, fees and related taxes and benefits	(23	)	(24	)
Post-employment benefit plans and OPEBs cost	(3	)	(4	)
Share-based compensation	(23	)	(27	)
Key management personnel and board of directors compensation expense	(49	)	(55	)

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Significant partly-owned subsidiaries (Tables)

12 Months Ended

Dec. 31, 2017

Interest In Other Entities [Abstract]

Disclosure of interests in subsidiaries

The following table shows BCE’s significant subsidiaries at December 31, 2017. 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 significant 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	2017		2016
Bell Canada	100	%	100	%
Bell Mobility	100	%	100	%
Bell Media	100	%	100	%

The following tables show summarized financial information for our subsidiaries with significant non-controlling interest (NCI).

Summarized statements of financial position

	CTV SPECIALTY(1) (2)
FOR THE YEAR ENDED DECEMBER 31	2017	2016
Current assets	328	293
Non-current assets	1,013	1,013
Total assets	1,341	1,306
Current liabilities	153	130
Non-current liabilities	184	195
Total liabilities	337	325
Total equity attributable to BCE shareholders	700	687
NCI	304	294

(1) At December 31, 2017 and 2016, the ownership interest held by NCI in CTV Specialty Television Inc. (CTV Specialty) was 29.9%. CTV Specialty was incorporated and operated in Canada as at such dates.

(2) CTV Specialty's net assets at December 31, 2017 and 2016, include $6 million and $2 million, respectively, directly attributable to NCI.

Selected income and cash flow information

	CTV SPECIALTY(1)
FOR THE YEAR ENDED DECEMBER 31	2017	2016
Operating revenues	832	824
Net earnings	179	182
Net earnings attributable to NCI	56	56
Total comprehensive income	172	173
Total comprehensive income attributable to NCI	54	54
Cash dividends paid to NCI	34	46

(1) CTV Specialty's net earnings and total comprehensive income include $3 million directly attributable to NCI for 2017 and 2016, respectively.

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Significant accounting policies (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of expected impact of initial application of new standards or interpretations [line items]
Revenue from rendering of services	$ (21,143)	$ (20,090)
Revenue from sale of goods	(1,576)	(1,629)
Operating income	9,178	8,788
Deferred tax liability (asset)	$ 2,303	$ 2,103	$ 1,735
ESP
Disclosure of detailed information about property, plant and equipment [line items]
Award vesting period	2 years
IFRS 15
Disclosure of expected impact of initial application of new standards or interpretations [line items]
Operating income	$ 100
Deferred tax liability (asset)	400
Bottom of range | IFRS 15
Disclosure of expected impact of initial application of new standards or interpretations [line items]
Revenue from rendering of services	1,200
Contract assets	1,100
Top of range | IFRS 15
Disclosure of expected impact of initial application of new standards or interpretations [line items]
Revenue from sale of goods	1,400
Contract assets	$ 1,300
Network infrastructure and equipment | Bottom of range
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment, estimated useful life	2 years
Network infrastructure and equipment | Top of range
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment, estimated useful life	40 years
Buildings | Bottom of range
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment, estimated useful life	5 years
Buildings | Top of range
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment, estimated useful life	50 years
Software | Bottom of range
Disclosure of detailed information about intangible assets [line items]
Finite-lived intangible assets, estimated useful life	2 years
Software | Top of range
Disclosure of detailed information about intangible assets [line items]
Finite-lived intangible assets, estimated useful life	12 years
Customer relationships | Bottom of range
Disclosure of detailed information about intangible assets [line items]
Finite-lived intangible assets, estimated useful life	3 years
Customer relationships | Top of range
Disclosure of detailed information about intangible assets [line items]
Finite-lived intangible assets, estimated useful life	26 years
Program and feature film rights | Top of range
Disclosure of detailed information about intangible assets [line items]
Finite-lived intangible assets, estimated useful life	5 years
Costs to obtain contracts with customers | Bottom of range | IFRS 15
Disclosure of expected impact of initial application of new standards or interpretations [line items]
Assets recognised from costs to obtain or fulfil contracts with customers	$ 300
Costs to obtain contracts with customers | Top of range | IFRS 15
Disclosure of expected impact of initial application of new standards or interpretations [line items]
Assets recognised from costs to obtain or fulfil contracts with customers	$ 400

XML

Business acquisitions and dispositions - Acquisition of MTS Narrative (Details) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017 CAD ($)	Dec. 31, 2016 CAD ($)	Mar. 17, 2017 CAD ($) shares	Dec. 31, 2015 CAD ($)
Disclosure of detailed information about business combination [line items]
Deferred tax asset	$ (2,303)	$ (2,103)		$ (1,735)
Revenue of combined entity as if combination occurred at beginning of period	22,913	21,801
Profit (loss) of combined entity as if combination occurred at beginning of period	2,978	3,038
MTS
Disclosure of detailed information about business combination [line items]
Total consideration			$ 2,933
Cash transferred			1,339
Stock transferred			$ 1,594
Number of shares transferred (in shares) | shares			27.6
Revenue of acquiree since acquisition date	728
Profit (loss) of acquiree since acquisition date	87
NON- CAPITAL LOSS CARRY- FORWARDS
Disclosure of detailed information about business combination [line items]
Unused tax loss carryforward	208	221
Deferred tax asset	17	$ 21		$ 12
NON- CAPITAL LOSS CARRY- FORWARDS | MTS
Disclosure of detailed information about business combination [line items]
Unused tax loss carryforward	$ 64		$ 1,500
Deferred tax asset			$ 300

XML

Business acquisitions and dispositions - Acquisition of MTS Summary (Details) - CAD ($) $ in Millions	Dec. 31, 2017	Mar. 17, 2017	Dec. 31, 2016
Disclosure of detailed information about business combination [line items]
Goodwill	$ 10,428		$ 8,958
MTS
Disclosure of detailed information about business combination [line items]
Cash consideration		$ 1,339
Issuance of 27.6 million BCE common shares		1,594
Total cost to be allocated		2,933
Trade and other receivables		91
Other non-cash working capital		(164)
Assets held for sale		302
Property, plant and equipment		978
Finite-life intangible assets		979
Indefinite-life intangible assets		280
Deferred tax assets		32
Other non-current assets		129
Debt due within one year		(251)
Long-term debt		(721)
Other non-current liabilities		(49)
Total costs to be allocated, excluding cash and cash equivalents and goodwill		1,606
Cash and cash equivalents		(16)
Fair value of net assets acquired		1,590
Goodwill		1,343
BELL WIRELESS | MTS
Disclosure of detailed information about business combination [line items]
Indefinite-life intangible assets		228
Goodwill		677
BELL WIRELINE | MTS
Disclosure of detailed information about business combination [line items]
Indefinite-life intangible assets		52
Goodwill		$ 666

XML

Business acquisitions and dispositions - Divestiture of Assets (Details) $ in Millions		3 Months Ended	12 Months Ended
	Apr. 01, 2017	Jun. 30, 2017 CAD ($) location	Dec. 31, 2017 CAD ($)	Dec. 31, 2016 CAD ($)	Mar. 17, 2017 megahertz
Business Combinations1 [Abstract]
Percentage of postpaid subscribers sold	25.00%
Number of retail locations sold | location		15
Disposition of intangibles and other assets | $		$ 323	$ 323	$ 0
Number of megahertz transferred					40
Total number of megahertz					700
Number of megahertz in wireless spectrum					2,500

XML

Business acquisitions and dispositions - Acquisition of Cieslok Media Ltd. Narrative (Details) shares in Millions, $ in Millions	Jan. 05, 2018 CAD ($) shares	Jan. 03, 2017 CAD ($)
Cieslok Media
Disclosure of detailed information about business combination [line items]
Consideration transferred, acquisition-date fair value		$ 161
Cash transferred		$ 161
Major business combination | AlarmForce
Disclosure of detailed information about business combination [line items]
Consideration transferred, acquisition-date fair value	$ 182
Cash transferred	181
Equity interests of acquirer	$ 1
Number of instruments or interests issued or issuable | shares	0.0

XML

Business acquisitions and dispositions - Acquisition of Cieslok Media Ltd. Summary (Details) - CAD ($) $ in Millions	Dec. 31, 2017	Jan. 03, 2017	Dec. 31, 2016
Disclosure of detailed information about business combination [line items]
Goodwill	$ 10,428		$ 8,958
Cieslok Media
Disclosure of detailed information about business combination [line items]
Cash consideration		$ 161
Total cost to be allocated		161
Trade and other receivables		11
Other non-cash working capital		(4)
Property, plant and equipment		13
Finite-life intangible assets		6
Indefinite-life intangible assets		76
Deferred tax liabilities		(20)
Other non-current liabilities		(1)
Total costs to be allocated, excluding cash and cash equivalents and goodwill		81
Cash and cash equivalents		1
Fair value of net assets acquired		82
Goodwill		$ 79

XML

Business acquisitions and dispositions - Acquisition of Q9 Networks Inc. Narrative (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Oct. 03, 2017
Disclosure of detailed information about business combination [line items]
Gain (loss) recognised as result of remeasuring to fair value equity interest in acquiree held by acquirer before business combination		$ 12
Revenue of combined entity as if combination occurred at beginning of period	$ 22,913	21,801
Profit (loss) of combined entity as if combination occurred at beginning of period	$ 2,978	3,038
Q9
Disclosure of detailed information about business combination [line items]
Percentage of remaining issued and outstanding shares			64.60%
Cash consideration			$ 170
Note receivable from Q9			$ 517
Gain (loss) recognised as result of remeasuring to fair value equity interest in acquiree held by acquirer before business combination		12
Revenue of acquiree since acquisition date		29
Profit (loss) of acquiree since acquisition date		$ 2

XML

Business acquisitions and dispositions Proposed acquisition of Series+ and Historia specialty channels (Details) $ in Millions	Jun. 30, 2018 CAD ($)
Corus
Disclosure of detailed information about business combination [line items]
Consideration transferred, acquisition-date fair value	$ 200

XML

Business acquisitions and dispositions Acquisiton of AlarmForce Industries Inc. (Details) - Major business combination - AlarmForce shares in Millions, $ in Millions	Jan. 05, 2018 CAD ($) shares customer
Disclosure of detailed information about business combination [line items]
Consideration transferred, acquisition-date fair value	$ 182
Cash transferred	181
Equity interests of acquirer	$ 1
Number of instruments or interests issued or issuable | shares	0.0
Customer accounts
Disclosure of detailed information about business combination [line items]
Number of customer accounts | customer	39,000
Proceeds from sale of intangible assets	$ 67

XML

Business acquisitions and dispositions - Acquisition of Q9 Networks Inc. Summary (Details) - CAD ($) $ in Millions	Dec. 31, 2017	Oct. 03, 2017	Dec. 31, 2016
Disclosure of detailed information about business combination [line items]
Goodwill	$ 10,428		$ 8,958
Q9
Disclosure of detailed information about business combination [line items]
Cash consideration		$ 170
Fair value of previously held interest in Q9 and favourable purchase option		131
Note receivable from Q9		517
Total cost to be allocated		818
Trade and other receivables		19
Other non-cash working capital		(39)
Property, plant and equipment		311
Finite-life intangible assets		267
Long-term debt		(7)
Deferred tax liabilities		(69)
Other non-current liabilities		(16)
Total costs to be allocated, excluding cash and cash equivalents and goodwill		466
Cash and cash equivalents		12
Fair value of net assets acquired		478
Goodwill		$ 340

XML

Business acquisitions and dispositions - National Expansion of HBO and The Movie Network Narrative (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Mar. 01, 2016
Disclosure of detailed information about business combination [line items]
Business acquisitions	$ 1,649	$ 404
Corus
Disclosure of detailed information about business combination [line items]
Cash consideration				$ (218)
Business acquisitions			$ 21

XML

Business acquisitions and dispositions - National Expansion of HBO and The Movie Network Summary (Details) - CAD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Mar. 01, 2016	Dec. 31, 2015
Disclosure of detailed information about business combination [line items]
Goodwill	$ 10,428	$ 8,958
Corus
Disclosure of detailed information about business combination [line items]
Cash consideration			$ (218)
Finite-life intangible assets			8
Non-current assets recognised as of acquisition date			1
Current liabilities recognised as of acquisition date			(3)
Non-current liabilities recognised as of acquisition date			(8)
Fair value of net assets acquired			(2)
Goodwill			$ 220
Goodwill expected to be deductible for tax purposes				$ 163
Goodwill Annual Rate Declining Balance				7.00%

XML

Segmented information - Segmented Information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017 CAD ($) segment	Dec. 31, 2016 CAD ($)
Operating Segments [Abstract]
Number of operating segments | segment	3
Disclosure of operating segments [line items]
Operating revenues	$ 22,719	$ 21,719
Operating costs	(13,541)	(12,931)
Segment profit	9,178	8,788
Severance, acquisition and other costs	(190)	(135)
Depreciation and amortization	(3,850)	(3,508)
Interest expense	(955)	(888)
Interest on post-employment benefit obligations	(72)	(81)
Other expense	(102)	21
Income taxes	(1,039)	(1,110)
Net earnings	2,970	3,087
Goodwill	10,428	8,958
Indefinite-life intangible assets	8,228	7,943
Capital expenditures	4,034	3,771
BELL WIRELESS
Disclosure of operating segments [line items]
Operating revenues	7,838	7,117
Severance, acquisition and other costs	(18)	(6)
Depreciation and amortization	(603)	(555)
Goodwill	3,032	2,304
Indefinite-life intangible assets	3,891	3,663
Capital expenditures	731	733
BELL WIRELINE
Disclosure of operating segments [line items]
Operating revenues	12,205	11,917
Severance, acquisition and other costs	(150)	(130)
Depreciation and amortization	(3,102)	(2,816)
Goodwill	4,497	3,831
Indefinite-life intangible assets	1,692	1,640
Capital expenditures	3,174	2,936
BELL MEDIA
Disclosure of operating segments [line items]
Operating revenues	2,676	2,685
Severance, acquisition and other costs	(22)	1
Depreciation and amortization	(145)	(137)
Goodwill	2,899	2,823
Indefinite-life intangible assets	2,645	2,640
Capital expenditures	129	102
Operating segments | BELL WIRELESS
Disclosure of operating segments [line items]
Operating revenues	7,883	7,159
Operating costs	(4,607)	(4,156)
Segment profit	3,276	3,003
Operating segments | BELL WIRELINE
Disclosure of operating segments [line items]
Operating revenues	12,415	12,104
Operating costs	(7,229)	(7,062)
Segment profit	5,186	5,042
Operating segments | BELL MEDIA
Disclosure of operating segments [line items]
Operating revenues	3,104	3,081
Operating costs	(2,388)	(2,338)
Segment profit	716	743
Intersegment eliminations
Disclosure of operating segments [line items]
Operating revenues	(683)	(625)
Operating costs	683	625
Intersegment eliminations | BELL WIRELESS
Disclosure of operating segments [line items]
Operating revenues	45	42
Intersegment eliminations | BELL WIRELINE
Disclosure of operating segments [line items]
Operating revenues	210	187
Intersegment eliminations | BELL MEDIA
Disclosure of operating segments [line items]
Operating revenues	$ 428	$ 396

XML

Segmented information - Revenue by Services and Products (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of products and services [line items]
Revenue from rendering of services	$ 21,143	$ 20,090
Revenue from sale of goods	1,576	1,629
Revenue	22,719	21,719
Wireless
Disclosure of products and services [line items]
Revenue from rendering of services	7,308	6,602
Revenue from sale of goods	530	515
Data
Disclosure of products and services [line items]
Revenue from rendering of services	7,146	6,791
Revenue from sale of goods	519	559
Local and access
Disclosure of products and services [line items]
Revenue from rendering of services	3,161	3,089
Long distance
Disclosure of products and services [line items]
Revenue from rendering of services	639	741
Media
Disclosure of products and services [line items]
Revenue from rendering of services	2,676	2,685
Other services
Disclosure of products and services [line items]
Revenue from rendering of services	213	182
Equipment and other
Disclosure of products and services [line items]
Revenue from sale of goods	$ 527	$ 555

XML

Operating costs (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Labour costs
Wages, salaries and related taxes and benefits	$ (4,158)	$ (4,016)
Post-employment benefit plans service cost (net of capitalized amounts)	(242)	(224)
Other labour costs	(1,056)	(1,036)
Less: Capitalized labour	1,043	967
Total labour costs	(4,413)	(4,309)
Cost of revenues	(7,056)	(6,705)
Other operating costs	(2,072)	(1,917)
Total operating costs	(13,541)	(12,931)
Research and development expense	$ 119	$ 147

XML

Severance, acquisition and other costs (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Analysis of income and expense [abstract]
Severance	$ (79)	$ (87)
Acquisition and other	(111)	(48)
Total severance, acquisition and other costs	$ (190)	$ (135)

XML

Interest expense (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about borrowings [line items]
Capitalized interest	$ 44	$ 50
Total interest expense	$ (955)	$ (888)
Capitalisation rate of borrowing costs eligible for capitalisation	3.81%	3.95%
Long-term Debt
Disclosure of detailed information about borrowings [line items]
Interest expense on other debt	$ (898)	$ (852)
Other debt
Disclosure of detailed information about borrowings [line items]
Interest expense on other debt	(101)	(86)
Finance leases
Disclosure of detailed information about borrowings [line items]
Interest expense on other debt	$ (145)	$ (153)

XML

Other (expense) income (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Analysis of income and expense [abstract]
Net mark-to-market gains on derivatives used as economic hedges	$ 88	$ 67
(Losses) gains on investments	(5)	58
Equity losses from investments in associates and joint ventures
Loss on investment	(22)	(57)
Operations	(9)	(32)
Losses on retirements and disposals of property, plant and equipment and intangible assets	(47)	(28)
Early debt redemption costs	(20)	(11)
Impairment of assets	(82)	(9)
Other	(5)	33
Total other (expense) income	$ (102)	$ 21

XML

Other (expense) income - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017 CAD ($) radio_station	Dec. 31, 2016 CAD ($)
Disclosure of information for cash-generating units [line items]
Impairment loss	$ 82	$ 9
Number of small market radio stations impaired | radio_station	2
Explanation of period over which management has projected cash flows, period	5 years
Loss on investment, equity loss of share obligation	$ 20	11
Investments in associates and joint ventures loss on sale of portion of operations		46
(Losses) gains on investments	$ (5)	58
Investments accounted for using equity method		34
Remeasurement of previously held equity interest		$ 12
Cash-generating units
Disclosure of information for cash-generating units [line items]
Explanation of period over which management has projected cash flows, period	5 years
Discount rate applied to cash flow projections	8.50%
Growth rate used to extrapolate cash flow projections	0.00%
Recoverable amount of asset or cash-generating unit	$ 67
Finite-Lived Intangible Assets
Disclosure of information for cash-generating units [line items]
Impairment loss	12
Indefinite-Lived Intangible Assets
Disclosure of information for cash-generating units [line items]
Impairment loss	$ 70

XML

Income taxes - Significant components of tax expense (income) (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Current taxes
Current taxes	$ (758)	$ (850)
Uncertain tax positions	(9)	(14)
Change in estimate relating to prior periods	40	14
Other	0	(1)
Deferred taxes
Deferred taxes relating to the origination and reversal of temporary differences	(41)	(299)
Change in estimate relating to prior periods	11	32
Recognition and utilization of loss carryforwards	(304)	(1)
Effect of change in provincial corporate tax rate	(3)	4
Resolution of uncertain tax positions	25	5
Total income taxes	$ (1,039)	$ (1,110)

XML

Income taxes - Reconciliation of reported income taxes with income taxes calculated (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Taxes [Abstract]
Net earnings	$ 2,970	$ 3,087
Add back income taxes	1,039	1,110
Earnings before income taxes	$ 4,009	$ 4,197
Applicable statutory tax rate	27.10%	27.10%
Income taxes computed at applicable statutory rates	$ (1,086)	$ (1,137)
Non-taxable portion of (losses) gains on investments	(1)	11
Uncertain tax positions	16	(9)
Effect of change in provincial corporate tax rate	(3)	4
Change in estimate relating to prior periods	51	46
Non-taxable portion of equity losses	(10)	(23)
Other	(6)	(2)
Total income taxes	$ (1,039)	$ (1,110)
Average effective tax rate	25.90%	26.40%

XML

Income taxes - Current and deferred income tax (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
OTHER COMPREHENSIVE LOSS
Current taxes	$ 10	$ 127
Deferred taxes	103	(32)
Total income tax recovery	113	95
DEFICIT
Current taxes	9	11
Deficit	2	6
Total income tax recovery	$ 11	$ 17

XML

Income taxes - Net deferred tax liability (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Mar. 17, 2017
Reconciliation of changes in deferred tax liability (asset) [abstract]
Deferred tax liability (asset)	$ (2,103)	$ (1,735)
Income statement	(312)	(259)
Business acquisitions	12	(75)
Other comprehensive income	103	(32)
Deficit	2	6
Other	(5)	(8)
Deferred tax liability (asset)	(2,303)	(2,103)
Unused tax losses for which no deferred tax asset recognised		144
NON- CAPITAL LOSS CARRY- FORWARDS
Reconciliation of changes in deferred tax liability (asset) [abstract]
Deferred tax liability (asset)	21	12
Income statement	(304)	(1)
Business acquisitions	300	10
Deferred tax liability (asset)	17	21
Unused tax loss carryforward	208	221
Unused tax losses for which no deferred tax asset recognised	144
POST EMPLOYMENT BENEFIT PLANS
Reconciliation of changes in deferred tax liability (asset) [abstract]
Deferred tax liability (asset)	454	520
Income statement	(31)	(28)
Business acquisitions	(11)
Other comprehensive income	82	(38)
Deferred tax liability (asset)	494	454
INDEFINITE- LIFE INTANGIBLE ASSETS
Reconciliation of changes in deferred tax liability (asset) [abstract]
Deferred tax liability (asset)	(1,680)	(1,619)
Income statement	(8)	(61)
Business acquisitions	(73)
Deferred tax liability (asset)	(1,761)	(1,680)
PROPERTY, PLANT AND EQUIPMENT AND FINITE- LIFE INTANGIBLE ASSETS
Reconciliation of changes in deferred tax liability (asset) [abstract]
Deferred tax liability (asset)	(1,199)	(968)
Income statement	12	(152)
Business acquisitions	(223)	(79)
Other	(3)
Deferred tax liability (asset)	(1,413)	(1,199)
INVESTMENT TAX CREDITS
Reconciliation of changes in deferred tax liability (asset) [abstract]
Deferred tax liability (asset)	(9)	(6)
Income statement	7	(3)
Business acquisitions	(5)
Deferred tax liability (asset)	(7)	(9)
CRTC TANGIBLE BENEFITS
Reconciliation of changes in deferred tax liability (asset) [abstract]
Deferred tax liability (asset)	44	61
Income statement	(14)	(17)
Deferred tax liability (asset)	30	44
OTHER
Reconciliation of changes in deferred tax liability (asset) [abstract]
Deferred tax liability (asset)	266	265
Income statement	26	3
Business acquisitions	24	(6)
Other comprehensive income	21	6
Deficit	2	6
Other	(2)	(8)
Deferred tax liability (asset)	337	266
CAPITAL LOSS CARRYFORWARD
Reconciliation of changes in deferred tax liability (asset) [abstract]
Unused tax loss carryforward	827	765
MTS | NON- CAPITAL LOSS CARRY- FORWARDS
Reconciliation of changes in deferred tax liability (asset) [abstract]
Unused tax loss carryforward	64		$ 1,500
Q9 | NON- CAPITAL LOSS CARRY- FORWARDS
Reconciliation of changes in deferred tax liability (asset) [abstract]
Deferred tax liability (asset)	$ 11
Deferred tax liability (asset)		11
Unused tax loss carryforward		$ 77

XML

Earnings per share (Details) - CAD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Earnings per share [abstract]
Net earnings attributable to common shareholders - basic	$ 2,786	$ 2,894
Dividends declared per common share (in dollars) (CAD Per Share)	$ 2.87	$ 2.73
Weighted average number of common shares outstanding (in millions)
Average number of common shares outstanding - basic (millions) (in shares)	894,300,000	869,100,000
Assumed exercise of stock options (in shares)	600,000	1,200,000
Weighted average number of common shares outstanding - diluted (in millions) (in shares)	894,900,000	870,300,000
Shares excluded from calculation of earnings per share (in shares)	3,031,125	2,936,091

XML

Trade and other receivables (Details) - CAD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Trade And Other Receivables [Line Items]
Current tax receivable	$ 31	$ 35
Other accounts receivable	101	122
Total trade and other receivables	3,135	2,979
Gross carrying amount
Disclosure Of Trade And Other Receivables [Line Items]
Trade receivables	3,138	2,967
Allowance for doubtful accounts
Disclosure Of Trade And Other Receivables [Line Items]
Trade receivables	(55)	(60)
Allowance for revenue adjustments
Disclosure Of Trade And Other Receivables [Line Items]
Trade receivables	$ (80)	$ (85)

XML

Inventory (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Inventory [Line Items]
Total inventory	$ 380	$ 403
Inventory recognized in cost of revenues	2,910	2,689
Gross carrying amount
Inventory [Line Items]
Finished goods	322	333
Work in progress	76	85
Inventory Provision
Inventory [Line Items]
Total inventory	$ (18)	$ (15)

XML

Property, plant and equipment - Disclosure of detailed information about property, plant and equipment (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment, beginning balance	$ (22,346)	$ (21,630)
Property, plant and equipment, ending balance	(24,033)	(22,346)
COST
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment, beginning balance	(65,626)	(63,694)
Additions	4,149	3,896
Acquisition through business combinations	993	315
Transfers	(411)	(598)
Retirements and disposals	(1,127)	(1,680)
Impairment losses recognized in earnings		(1)
Property, plant and equipment, ending balance	(69,230)	(65,626)
ACCUMULATED DEPRECIATION
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment, beginning balance	43,280	42,064
Retirements and disposals	(1,073)	(1,626)
Depreciation	3,037	2,877
Other	(47)	(35)
Property, plant and equipment, ending balance	45,197	43,280
NETWORK INFRASTRUCTURE AND EQUIPMENT
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment, beginning balance	(18,447)	(18,050)
Property, plant and equipment, ending balance	(19,539)	(18,447)
NETWORK INFRASTRUCTURE AND EQUIPMENT | COST
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment, beginning balance	(58,680)	(57,233)
Additions	2,492	2,361
Acquisition through business combinations	653	32
Transfers	775	692
Retirements and disposals	(1,105)	(1,637)
Impairment losses recognized in earnings		(1)
Property, plant and equipment, ending balance	(61,495)	(58,680)
NETWORK INFRASTRUCTURE AND EQUIPMENT | ACCUMULATED DEPRECIATION
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment, beginning balance	40,233	39,183
Retirements and disposals	(1,054)	(1,591)
Depreciation	2,816	2,672
Other	(39)	(31)
Property, plant and equipment, ending balance	41,956	40,233
LAND AND BUILDINGS
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment, beginning balance	(2,525)	(2,293)
Property, plant and equipment, ending balance	(2,720)	(2,525)
LAND AND BUILDINGS | COST
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment, beginning balance	(5,572)	(5,174)
Additions	70	120
Acquisition through business combinations	264	282
Transfers	77	35
Retirements and disposals	(22)	(39)
Impairment losses recognized in earnings		0
Property, plant and equipment, ending balance	(5,961)	(5,572)
LAND AND BUILDINGS | ACCUMULATED DEPRECIATION
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment, beginning balance	3,047	2,881
Retirements and disposals	(19)	(35)
Depreciation	221	205
Other	(8)	(4)
Property, plant and equipment, ending balance	3,241	3,047
ASSETS UNDER CONSTRUCTION
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment, beginning balance	(1,374)	(1,287)
Property, plant and equipment, ending balance	(1,774)	(1,374)
ASSETS UNDER CONSTRUCTION | COST
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment, beginning balance	(1,374)	(1,287)
Additions	1,587	1,415
Acquisition through business combinations	76	1
Transfers	(1,263)	(1,325)
Retirements and disposals	0	(4)
Impairment losses recognized in earnings		0
Property, plant and equipment, ending balance	(1,774)	(1,374)
ASSETS UNDER CONSTRUCTION | ACCUMULATED DEPRECIATION
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment, beginning balance	0	0
Retirements and disposals	0	0
Depreciation	0	0
Other	0	0
Property, plant and equipment, ending balance	$ 0	$ 0

XML

- Disclosure of additions to and the net carrying amount of assets under finance leases (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of quantitative information about right-of-use assets [line items]
ADDITIONS	$ 336	$ 447
NET CARRYING AMOUNT	$ 1,902	2,086
BUILDINGS
Disclosure of quantitative information about right-of-use assets [line items]
Finance lease term of contract	22 years
SATELLITE
Disclosure of quantitative information about right-of-use assets [line items]
Finance lease term of contract	15 years
NETWORK INFRASTRUCTURE AND EQUIPMENT
Disclosure of quantitative information about right-of-use assets [line items]
ADDITIONS	$ 334	375
NET CARRYING AMOUNT	1,435	1,580
LAND AND BUILDINGS
Disclosure of quantitative information about right-of-use assets [line items]
ADDITIONS	2	72
NET CARRYING AMOUNT	$ 467	$ 506

XML

- Disclosure of reconciliation of minimum future lease payments (Details) $ in Millions	Dec. 31, 2017 CAD ($)
Disclosure of finance lease and operating lease by lessee [line items]
Minimum future lease payments	$ 2,808
Future finance costs	(636)
Present value of future lease obligations	2,172
2018
Disclosure of finance lease and operating lease by lessee [line items]
Minimum future lease payments	572
Future finance costs	(127)
Present value of future lease obligations	445
2019
Disclosure of finance lease and operating lease by lessee [line items]
Minimum future lease payments	501
Future finance costs	(111)
Present value of future lease obligations	390
2020
Disclosure of finance lease and operating lease by lessee [line items]
Minimum future lease payments	326
Future finance costs	(96)
Present value of future lease obligations	230
2021
Disclosure of finance lease and operating lease by lessee [line items]
Minimum future lease payments	278
Future finance costs	(80)
Present value of future lease obligations	198
2022
Disclosure of finance lease and operating lease by lessee [line items]
Minimum future lease payments	248
Future finance costs	(65)
Present value of future lease obligations	183
THEREAFTER
Disclosure of finance lease and operating lease by lessee [line items]
Minimum future lease payments	883
Future finance costs	(157)
Present value of future lease obligations	$ 726

XML

Intangible assets (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	$ (11,998)	$ (11,176)
Ending balance	(13,305)	(11,998)
COST
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	(17,995)	(16,608)
Additions	1,391	1,423
Acquired through business combinations	1,387	301
Transfers	406	615
Retirements and disposals	(96)	(72)
Business dispositions		(4)
Impairment losses recognized in earnings	(82)	(8)
Amortization included in operating costs	950	868
Ending balance	(20,051)	(17,995)
ACCUMULATED AMORTIZATION
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	5,997	5,432
Retirements and disposals	73	69
Amortization included in operating costs	813	631
Other	9	3
Ending balance	6,746	5,997
BRANDS
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	(2,333)	(2,333)
Ending balance	(2,443)	(2,333)
BRANDS | COST
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	(2,333)	(2,333)
Additions	0	0
Acquired through business combinations	110	0
Transfers	0	0
Retirements and disposals	0	0
Business dispositions		0
Impairment losses recognized in earnings	0	0
Amortization included in operating costs	0	0
Ending balance	(2,443)	(2,333)
BRANDS | ACCUMULATED AMORTIZATION
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	0	0
Retirements and disposals	0	0
Amortization included in operating costs	0	0
Other	0	0
Ending balance	0	0
SPECTRUM AND OTHER LICENCES
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	(3,288)	(3,267)
Ending balance	(3,534)	(3,288)
SPECTRUM AND OTHER LICENCES | COST
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	(3,288)	(3,267)
Additions	0	21
Acquired through business combinations	246	0
Transfers	0	0
Retirements and disposals	0	0
Business dispositions		0
Impairment losses recognized in earnings	0	0
Amortization included in operating costs	0	0
Ending balance	(3,534)	(3,288)
SPECTRUM AND OTHER LICENCES | ACCUMULATED AMORTIZATION
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	0	0
Retirements and disposals	0	0
Amortization included in operating costs	0	0
Other	0	0
Ending balance	0	0
BROADCAST LICENCES
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	(2,322)	(2,334)
Ending balance	(2,251)	(2,322)
BROADCAST LICENCES | COST
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	(2,322)	(2,334)
Additions	0	0
Acquired through business combinations	0	0
Transfers	(1)	0
Retirements and disposals	0	0
Business dispositions		(4)
Impairment losses recognized in earnings	(70)	(8)
Amortization included in operating costs	0	0
Ending balance	(2,251)	(2,322)
BROADCAST LICENCES | ACCUMULATED AMORTIZATION
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	0	0
Retirements and disposals	0	0
Amortization included in operating costs	0	0
Other	0	0
Ending balance	0	0
TOTAL
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	(7,943)	(7,934)
Ending balance	(8,228)	(7,943)
TOTAL | COST
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	(7,943)	(7,934)
Additions	0	21
Acquired through business combinations	356	0
Transfers	(1)	0
Retirements and disposals	0	0
Business dispositions		(4)
Impairment losses recognized in earnings	(70)	(8)
Amortization included in operating costs	0	0
Ending balance	(8,228)	(7,943)
TOTAL | ACCUMULATED AMORTIZATION
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	0	0
Retirements and disposals	0	0
Amortization included in operating costs	0	0
Other	0	0
Ending balance	0	0
SOFTWARE
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	(2,545)	(2,082)
Ending balance	(2,713)	(2,545)
SOFTWARE | COST
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	(7,861)	(6,906)
Additions	344	412
Acquired through business combinations	98	0
Transfers	407	615
Retirements and disposals	(21)	(72)
Business dispositions		0
Impairment losses recognized in earnings	0	0
Amortization included in operating costs	0	0
Ending balance	(8,689)	(7,861)
SOFTWARE | ACCUMULATED AMORTIZATION
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	5,316	4,824
Retirements and disposals	21	69
Amortization included in operating costs	672	558
Other	9	3
Ending balance	5,976	5,316
CUSTOMER RELATIONSHIPS
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	(646)	(400)
Ending balance	(1,385)	(646)
CUSTOMER RELATIONSHIPS | COST
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	(1,159)	(866)
Additions	31	0
Acquired through business combinations	830	293
Transfers	0	0
Retirements and disposals	(20)	0
Business dispositions		0
Impairment losses recognized in earnings	0	0
Amortization included in operating costs	0	0
Ending balance	(2,000)	(1,159)
CUSTOMER RELATIONSHIPS | ACCUMULATED AMORTIZATION
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	513	466
Retirements and disposals	0	0
Amortization included in operating costs	102	47
Other	0	0
Ending balance	615	513
PROGRAM AND FEATURE FILM RIGHTS
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	(682)	(577)
Ending balance	(741)	(682)
PROGRAM AND FEATURE FILM RIGHTS | COST
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	(682)	(577)
Additions	1,009	973
Acquired through business combinations	0	0
Transfers	0	0
Retirements and disposals	0	0
Business dispositions		0
Impairment losses recognized in earnings	0	0
Amortization included in operating costs	950	868
Ending balance	(741)	(682)
PROGRAM AND FEATURE FILM RIGHTS | ACCUMULATED AMORTIZATION
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	0	0
Retirements and disposals	0	0
Amortization included in operating costs	0	0
Other	0	0
Ending balance	0	0
OTHER
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	(182)	(183)
Ending balance	(238)	(182)
OTHER | COST
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	(350)	(325)
Additions	7	17
Acquired through business combinations	103	8
Transfers	0	0
Retirements and disposals	(55)	0
Business dispositions		0
Impairment losses recognized in earnings	(12)	0
Amortization included in operating costs	0	0
Ending balance	(393)	(350)
OTHER | ACCUMULATED AMORTIZATION
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	168	142
Retirements and disposals	52	0
Amortization included in operating costs	39	26
Other	0	0
Ending balance	155	168
TOTAL
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	(4,055)	(3,242)
Ending balance	(5,077)	(4,055)
TOTAL | COST
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	(10,052)	(8,674)
Additions	1,391	1,402
Acquired through business combinations	1,031	301
Transfers	407	615
Retirements and disposals	(96)	(72)
Business dispositions		0
Impairment losses recognized in earnings	(12)	0
Amortization included in operating costs	950	868
Ending balance	(11,823)	(10,052)
TOTAL | ACCUMULATED AMORTIZATION
Reconciliation of changes in intangible assets and goodwill [abstract]
Beginning balance	5,997	5,432
Retirements and disposals	73	69
Amortization included in operating costs	813	631
Other	9	3
Ending balance	$ 6,746	$ 5,997

XML

Investments in associates and joint ventures (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of associates [line items]
Assets	$ 54,263	$ 50,108
Liabilities	(34,780)	(32,254)
Investments in associates and joint ventures	814	852
Operating revenues	22,719	21,719
Net earnings	2,970	3,087
BCE’s share of net losses	(31)	(89)
Joint ventures | Associates
Disclosure of associates [line items]
Assets	3,796	3,856
Liabilities	(2,155)	(2,119)
Total net assets	1,641	1,737
Operating revenues	1,863	2,511
Expenses	(1,924)	(2,720)
Net earnings	$ (61)	$ (209)

XML

Other non-current assets (Details) - CAD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Subclassifications of assets, liabilities and equities [abstract]
Net assets of post-employment benefit plans	$ 262	$ 403
Investments	106	88
AFS publicly-traded and privately-held investments	103	103
Long-term notes and other receivables	101	63
Derivative assets	51	126
Other	277	227
Total other non-current assets	$ 900	$ 1,010

XML

Goodwill - Disclosure of changes in carrying amounts of goodwill (Details) - Goodwill - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of changes in intangible assets and goodwill [abstract]
Goodwill, beginning of period	$ 8,958	$ 8,377
Acquisitions and other	1,470	581
Goodwill, end of period	10,428	8,958
BELL WIRELESS
Reconciliation of changes in intangible assets and goodwill [abstract]
Goodwill, beginning of period	2,304	2,303
Acquisitions and other	728	1
Goodwill, end of period	3,032	2,304
BELL WIRELINE
Reconciliation of changes in intangible assets and goodwill [abstract]
Goodwill, beginning of period	3,831	3,491
Acquisitions and other	666	340
Goodwill, end of period	4,497	3,831
BELL MEDIA
Reconciliation of changes in intangible assets and goodwill [abstract]
Goodwill, beginning of period	2,823	2,583
Acquisitions and other	76	240
Goodwill, end of period	$ 2,899	$ 2,823

XML

Goodwill - Disclosure of key assumptions used to estimate the recoverable amounts of the groups CGUs (Details)	Dec. 31, 2017
BELL WIRELESS
Disclosure of information for cash-generating units [line items]
Perpetuity Growth Rate (as a percent)	0.80%
Discount Rate (as a percent)	9.10%
BELL WIRELINE
Disclosure of information for cash-generating units [line items]
Perpetuity Growth Rate (as a percent)	1.00%
Discount Rate (as a percent)	6.00%
BELL MEDIA
Disclosure of information for cash-generating units [line items]
Perpetuity Growth Rate (as a percent)	1.00%
Discount Rate (as a percent)	8.50%

XML

Goodwill - Narrative (Details)	12 Months Ended
	Dec. 31, 2017
Disclosure of information for cash-generating units [line items]
Explanation of period over which management has projected cash flows, period	5 years
BELL MEDIA
Disclosure of information for cash-generating units [line items]
Decrease in perpetuity growth rate resulting in recoverable amount being equal to carrying value (as a percent)	30.00%
Increase in discount rate resulting in recoverable amount being equal to carrying amount (as a percent)	20.00%

XML

Trade payables and other liabilities (Details) - CAD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Subclassifications of assets, liabilities and equities [abstract]
Trade Payables and Current Accruals	$ 2,441	$ 2,319
Deferred revenues	884	819
Compensation payable	560	531
Taxes payable	150	137
Maple Leaf Sports and Entertainment Ltd. (MLSE) financial liability	135	135
Derivative liabilities	96	18
CRTC tangible benefits obligation	38	51
Provisions	55	39
Severance and other costs payable	29	30
CRTC deferral account obligation	28	32
Other current liabilities	207	215
Total trade payables and other liabilities	$ 4,623	$ 4,326
Repurchase obligation of trust ownership percentage	9.00%

XML

Debt due within one year - Disclosure of debt due within one year (Details) $ in Millions, $ in Millions	Dec. 31, 2017 CAD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CAD ($)	Dec. 31, 2016 USD ($)
Disclosure of detailed information about borrowings [line items]
Total long-term debt due within one year	$ (1,106)		$ (1,307)
Total debt due within one year	$ 5,178		4,887
Notes payable | Weighted average
Disclosure of detailed information about borrowings [line items]
WEIGHTED AVERAGE INTEREST RATE	1.16%	1.16%
Loans secured by trade receivables | Weighted average
Disclosure of detailed information about borrowings [line items]
WEIGHTED AVERAGE INTEREST RATE	2.11%	2.11%
Long-term debt due within one year | Weighted average
Disclosure of detailed information about borrowings [line items]
WEIGHTED AVERAGE INTEREST RATE	4.38%	4.38%
Unsecured committed term credit facility | Weighted average
Disclosure of detailed information about borrowings [line items]
WEIGHTED AVERAGE INTEREST RATE
Finance leases | Weighted average
Disclosure of detailed information about borrowings [line items]
WEIGHTED AVERAGE INTEREST RATE	6.64%	6.64%
Gross carrying amount | Notes payable
Disclosure of detailed information about borrowings [line items]
Current borrowings	$ 3,151		2,649
Gross carrying amount | Loans secured by trade receivables
Disclosure of detailed information about borrowings [line items]
Current borrowings	921		931
Gross carrying amount | Long-term debt due within one year
Disclosure of detailed information about borrowings [line items]
Total long-term debt due within one year	(1,106)		(835)
Gross carrying amount | Unsecured committed term credit facility
Disclosure of detailed information about borrowings [line items]
Total long-term debt due within one year	0		(479)
Gross carrying amount | Commercial paper
Disclosure of detailed information about borrowings [line items]
Current borrowings	3,116	$ 2,484	2,612	$ 1,945
Gross carrying amount | Finance leases
Disclosure of detailed information about borrowings [line items]
Total long-term debt due within one year	(445)		(435)
Net unamortized discount
Disclosure of detailed information about borrowings [line items]
Total long-term debt due within one year	0		(1)
Unamortized debt issuance costs
Disclosure of detailed information about borrowings [line items]
Total long-term debt due within one year	$ 0		$ (6)

XML

Debt due within one year - Securitized trade receivables (Details) - CAD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Financial Instruments [Abstract]
Average interest rate throughout the year	1.74%	1.51%
Securitized trade receivables	$ 1,867	$ 1,904

XML

Debt due within one year - Credit facilities (Details)	Dec. 31, 2017 CAD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CAD ($)
Disclosure of detailed information about borrowings [line items]
DRAWN	$ 1,106,000,000		$ 1,307,000,000
Unsecured revolving credit facility
Disclosure of detailed information about borrowings [line items]
TOTAL AVAILABLE	2,500,000,000.0	$ 2,500,000,000.0
Unsecured revolving credit facility and expansion facility
Disclosure of detailed information about borrowings [line items]
TOTAL AVAILABLE	3,500,000,000.0
DRAWN	0
LETTERS OF CREDIT	0
COMMERCIAL PAPER OUTSTANDING	3,116,000,000	$ 2,484,000,000
NET AVAILABLE	384,000,000
Other
Disclosure of detailed information about borrowings [line items]
TOTAL AVAILABLE	134,000,000
DRAWN	0
LETTERS OF CREDIT	106,000,000
COMMERCIAL PAPER OUTSTANDING	0
NET AVAILABLE	28,000,000
Total committed credit facilities
Disclosure of detailed information about borrowings [line items]
TOTAL AVAILABLE	3,634,000,000
DRAWN	0
LETTERS OF CREDIT	106,000,000
COMMERCIAL PAPER OUTSTANDING	3,116,000,000
NET AVAILABLE	412,000,000
Total non-committed credit facilities
Disclosure of detailed information about borrowings [line items]
TOTAL AVAILABLE	1,829,000,000
DRAWN	0
LETTERS OF CREDIT	1,148,000,000
COMMERCIAL PAPER OUTSTANDING	0
NET AVAILABLE	681,000,000
Unsecured expansion facility
Disclosure of detailed information about borrowings [line items]
TOTAL AVAILABLE	1,000,000,000
Committed and Noncommitted Credit Facilities
Disclosure of detailed information about borrowings [line items]
TOTAL AVAILABLE	5,463,000,000
DRAWN	0
LETTERS OF CREDIT	1,254,000,000
COMMERCIAL PAPER OUTSTANDING	3,116,000,000
NET AVAILABLE	$ 1,093,000,000

XML

Long-term debt - Summary of long-term debt (Details) - CAD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about borrowings [line items]
Total long-term debt due within one year	$ (1,106)	$ (1,307)
Long-term debt	$ 18,215	16,572
1997 trust indenture | Weighted Average
Disclosure of detailed information about borrowings [line items]
WEIGHTED AVERAGE INTEREST RATE	3.86%
1976 trust indenture | Weighted Average
Disclosure of detailed information about borrowings [line items]
WEIGHTED AVERAGE INTEREST RATE	9.54%
2011 trust indenture | Weighted Average
Disclosure of detailed information about borrowings [line items]
WEIGHTED AVERAGE INTEREST RATE	4.28%
2001 trust indenture | Weighted Average
Disclosure of detailed information about borrowings [line items]
WEIGHTED AVERAGE INTEREST RATE	5.63%
Subordinated debentures | Weighted Average
Disclosure of detailed information about borrowings [line items]
WEIGHTED AVERAGE INTEREST RATE	8.21%
Finance leases | Weighted Average
Disclosure of detailed information about borrowings [line items]
WEIGHTED AVERAGE INTEREST RATE	6.64%
Unsecured committed term credit facility | Weighted Average
Disclosure of detailed information about borrowings [line items]
WEIGHTED AVERAGE INTEREST RATE
Gross carrying amount
Disclosure of detailed information about borrowings [line items]
Total debt	$ 19,317	17,902
Gross carrying amount | 1997 trust indenture
Disclosure of detailed information about borrowings [line items]
Total debt	14,950	13,600
Gross carrying amount | 1976 trust indenture
Disclosure of detailed information about borrowings [line items]
Total debt	1,100	1,100
Gross carrying amount | 2011 trust indenture
Disclosure of detailed information about borrowings [line items]
Total debt	425	0
Gross carrying amount | 2001 trust indenture
Disclosure of detailed information about borrowings [line items]
Total debt	200	0
Gross carrying amount | Subordinated debentures
Disclosure of detailed information about borrowings [line items]
Total debt	275	275
Gross carrying amount | Finance leases
Disclosure of detailed information about borrowings [line items]
Total debt	2,172	2,260
Total long-term debt due within one year	(445)	(435)
Gross carrying amount | Unsecured committed term credit facility
Disclosure of detailed information about borrowings [line items]
Total debt	0	479
Total long-term debt due within one year	0	(479)
Gross carrying amount | Other debt
Disclosure of detailed information about borrowings [line items]
Total debt	195	188
Net unamortized premium
Disclosure of detailed information about borrowings [line items]
Total debt	50	18
Total long-term debt due within one year	0	(1)
Unamortized debt issuance costs
Disclosure of detailed information about borrowings [line items]
Total debt	(46)	(41)
Total long-term debt due within one year	$ 0	$ (6)

XML

Long-term debt - Narrative (Details) $ in Millions						12 Months Ended
	Oct. 30, 2017 CAD ($)	Oct. 09, 2017 CAD ($)	May 12, 2017 CAD ($)	Sep. 16, 2016 CAD ($)	Mar. 31, 2016 CAD ($)	Dec. 31, 2017 CAD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 CAD ($)	Mar. 07, 2018 CAD ($)	Sep. 29, 2017 CAD ($)	Feb. 27, 2017 CAD ($)	Aug. 12, 2016 CAD ($)	Feb. 29, 2016 CAD ($)	Jan. 11, 2016 CAD ($)
Disclosure of detailed information about borrowings [line items]
Repayments of long-term debt						$ 2,653,000,000		$ 2,516,000,000
Early debt redemption costs						(20,000,000)		$ (11,000,000)
Series M-35 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Principal amount redeemed			$ 350,000,000
Borrowing costs recognised as expense			$ 4,000,000
Series M-44 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Principal amount											$ 1,000,000,000
Series M-45 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)											4.45%
Principal amount											$ 500,000,000
Series M-22 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Principal amount redeemed	$ 1,000,000,000
Borrowing costs recognised as expense	$ 11,000,000
Series M-40 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Principal amount										$ 700,000,000
Series M-46 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Principal amount										$ 800,000,000
Series M-36 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Principal amount redeemed		$ 300,000,000
Borrowing costs recognised as expense		$ 5,000,000
Hedge on M-18
Disclosure of detailed information about borrowings [line items]
Principal amount redeemed				$ 700,000,000
Series M-42 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Principal amount												$ 850,000,000
Series M-43 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)												2.90%
Principal amount												$ 650,000,000
Series M-32 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Principal amount redeemed					$ 500,000,000
Early debt redemption costs					$ 11,000,000
Series M-41 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Principal amount													$ 750,000,000
Series M-19 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Principal amount														$ 200,000,000
Series M-23 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Principal amount														$ 500,000,000
Fixed interest rate | Series M-35 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)			4.37%
Fixed interest rate | Series M-44 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)											2.70%
Fixed interest rate | Series M-22 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)	4.40%
Fixed interest rate | Series M-40 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)										3.00%
Fixed interest rate | Series M-46 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)										3.60%
Fixed interest rate | Series M-36 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)		4.88%
Fixed interest rate | Hedge on M-18
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)				5.00%
Fixed interest rate | Series M-42 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)												2.00%
Fixed interest rate | Series M-32 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)					5.41%
Fixed interest rate | Series M-41 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)													3.55%
Fixed interest rate | Series M-19 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)														4.64%
Fixed interest rate | Series M-23 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)														3.65%
Gross carrying amount | Unsecured committed term credit facility
Disclosure of detailed information about borrowings [line items]
Repayments of long-term debt						$ 480,000,000	$ 357
Entering into significant commitments or contingent liabilities | Series M-47 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Principal amount									$ 500,000,000
Entering into significant commitments or contingent liabilities | Series M-33 Medium Term Notes
Disclosure of detailed information about borrowings [line items]
Principal amount									$ 300,000,000
Entering into significant commitments or contingent liabilities | Fixed interest rate | Series M-47 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)									3.35%
Entering into significant commitments or contingent liabilities | Fixed interest rate | Series M-33 Medium Term Notes
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)									5.52%

XML

Provisions (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of changes in other provisions [abstract]
Other provisions, beginning balance	$ 312
Additions	60
Usage	(32)
Reversals	(30)
Acquired through business combinations	18
Other provisions, ending balance	328
Current		$ 55	$ 39
Non-current		273	273
Total other provisions	312	328	312
Asset retirement obligations (AROs)
Reconciliation of changes in other provisions [abstract]
Other provisions, beginning balance	175
Additions	14
Usage	(2)
Reversals	(18)
Acquired through business combinations	1
Other provisions, ending balance	170
Current		11
Non-current		159
Total other provisions	175	170	175
Other
Reconciliation of changes in other provisions [abstract]
Other provisions, beginning balance	137
Additions	46
Usage	(30)
Reversals	(12)
Acquired through business combinations	17
Other provisions, ending balance	158
Current		44
Non-current		114
Total other provisions	$ 137	$ 158	$ 137

XML

Post-employee benefit plans - Service cost (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of defined benefit plans [line items]
DC pension	$ (102)	$ (100)
Plan amendment gain on OPEBs and DB pension	16	27
Less: Capitalized benefit plans cost	58	59
Total post-employment benefit plans service cost included in operating costs	(242)	(224)
Other costs recognized in severance, acquisition and other costs	(10)	5
Total post-employment benefit plans service cost	(252)	(219)
DB pension
Disclosure of defined benefit plans [line items]
Current service cost	(208)	(203)
OPEBs
Disclosure of defined benefit plans [line items]
Current service cost	$ (6)	$ (7)

XML

Post-employee benefit plans - Interest cost (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of net defined benefit liability (asset) [line items]
Total interest on post-employment benefit obligations	$ (72)	$ (81)
DB pension
Disclosure of net defined benefit liability (asset) [line items]
Total interest on post-employment benefit obligations	(18)	(24)
OPEBs
Disclosure of net defined benefit liability (asset) [line items]
Total interest on post-employment benefit obligations	$ (54)	$ (57)

XML

Post-employee benefit plans - Other comprehensive income (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Employee Benefits [Abstract]
Cumulative losses recognized directly in equity, January 1	$ (2,646)	$ (2,384)
Actuarial (losses) gains in other comprehensive income	(313)	(264)
(Increase) decrease in the effect of the asset limit	(25)	2
Cumulative losses recognized directly in equity, December 31	(2,984)	$ (2,646)
Cumulative actuarial losses	3,217
Cumulative decrease in the effect of the asset limit	$ 233

XML

Post-employee benefit plans - Benefit (obligations) assets (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of net defined benefit liability (asset) [line items]
Post-employment benefit obligations/Fair value of plan assets, January 1	$ (1,702)
Changes in net defined benefit liability (asset) [abstract]
Interest on obligations	(72)	$ (81)
Actuarial (losses) gains	(313)	(264)
Post-employment benefit obligations/Fair value of plan assets, December 31	(1,846)	(1,702)
Post-employment benefit assets included in other non-current assets	262	403
Post-employment benefit obligations	(2,108)	(2,105)
Experience gains included in actuarial gains	911	157
Actual return on plan assets	$ 1,797	$ 874
Actual return on plan assets percent	8.20%	4.70%
Benefit obligations
Disclosure of net defined benefit liability (asset) [line items]
Post-employment benefit obligations/Fair value of plan assets, January 1	$ (22,537)	$ (22,380)
Changes in net defined benefit liability (asset) [abstract]
Current service cost	(214)	(210)
Interest on obligations	(961)	(920)
Actuarial (losses) gains	(1,221)	(299)
Net curtailment (losses) gains	12	32
Loss on plan transfer	(6)	0
Benefit payments	1,401	1,248
Employee contributions	(10)	(5)
Acquisition of MTS	(2,682)	0
Plan transfer	(122)	0
Other	39	(3)
Post-employment benefit obligations/Fair value of plan assets, December 31	(26,057)	(22,537)
Plan assets
Disclosure of net defined benefit liability (asset) [line items]
Post-employment benefit obligations/Fair value of plan assets, January 1	20,843	20,510
Changes in net defined benefit liability (asset) [abstract]
Interest on obligations	889	839
Actuarial (losses) gains	908	35
Benefit payments	(1,401)	(1,248)
Employer contributions	382	702
Employee contributions	10	5
Acquisition of MTS	2,735	0
Post-employment benefit obligations/Fair value of plan assets, December 31	24,244	20,843
Plan deficit
Disclosure of net defined benefit liability (asset) [line items]
Post-employment benefit obligations/Fair value of plan assets, January 1	(1,694)
Changes in net defined benefit liability (asset) [abstract]
Post-employment benefit obligations/Fair value of plan assets, December 31	(1,813)	(1,694)
Effect of asset limit
Disclosure of net defined benefit liability (asset) [line items]
Post-employment benefit obligations/Fair value of plan assets, January 1	(8)
Changes in net defined benefit liability (asset) [abstract]
Post-employment benefit obligations/Fair value of plan assets, December 31	(33)	(8)
DB pension
Disclosure of net defined benefit liability (asset) [line items]
Post-employment benefit obligations/Fair value of plan assets, January 1	(298)
Changes in net defined benefit liability (asset) [abstract]
Current service cost	(208)	(203)
Interest on obligations	(18)	(24)
Post-employment benefit obligations/Fair value of plan assets, December 31	(492)	(298)
Post-employment benefit assets included in other non-current assets	262	403
Post-employment benefit obligations	(754)	(701)
DB pension | Benefit obligations
Disclosure of net defined benefit liability (asset) [line items]
Post-employment benefit obligations/Fair value of plan assets, January 1	(20,853)	(20,675)
Changes in net defined benefit liability (asset) [abstract]
Current service cost	(208)	(203)
Interest on obligations	(896)	(852)
Actuarial (losses) gains	(1,193)	(311)
Net curtailment (losses) gains	(4)	27
Loss on plan transfer	(6)	0
Benefit payments	1,320	1,169
Employee contributions	(10)	(5)
Acquisition of MTS	(2,677)	0
Plan transfer	(122)	0
Other	1	(3)
Post-employment benefit obligations/Fair value of plan assets, December 31	(24,404)	(20,853)
DB pension | Plan assets
Disclosure of net defined benefit liability (asset) [line items]
Post-employment benefit obligations/Fair value of plan assets, January 1	20,563	20,244
Changes in net defined benefit liability (asset) [abstract]
Interest on obligations	878	828
Actuarial (losses) gains	896	29
Benefit payments	(1,320)	(1,169)
Employer contributions	305	626
Employee contributions	10	5
Acquisition of MTS	2,735	0
Post-employment benefit obligations/Fair value of plan assets, December 31	23,945	20,563
DB pension | Plan deficit
Disclosure of net defined benefit liability (asset) [line items]
Post-employment benefit obligations/Fair value of plan assets, January 1	(290)
Changes in net defined benefit liability (asset) [abstract]
Post-employment benefit obligations/Fair value of plan assets, December 31	(459)	(290)
DB pension | Effect of asset limit
Disclosure of net defined benefit liability (asset) [line items]
Post-employment benefit obligations/Fair value of plan assets, January 1	(8)
Changes in net defined benefit liability (asset) [abstract]
Post-employment benefit obligations/Fair value of plan assets, December 31	(33)	(8)
OPEBs
Disclosure of net defined benefit liability (asset) [line items]
Post-employment benefit obligations/Fair value of plan assets, January 1	(1,404)
Changes in net defined benefit liability (asset) [abstract]
Current service cost	(6)	(7)
Interest on obligations	(54)	(57)
Post-employment benefit obligations/Fair value of plan assets, December 31	(1,354)	(1,404)
Post-employment benefit assets included in other non-current assets	0	0
Post-employment benefit obligations	(1,354)	(1,404)
OPEBs | Benefit obligations
Disclosure of net defined benefit liability (asset) [line items]
Post-employment benefit obligations/Fair value of plan assets, January 1	(1,684)	(1,705)
Changes in net defined benefit liability (asset) [abstract]
Current service cost	(6)	(7)
Interest on obligations	(65)	(68)
Actuarial (losses) gains	(28)	12
Net curtailment (losses) gains	16	5
Loss on plan transfer	0	0
Benefit payments	81	79
Employee contributions	0	0
Acquisition of MTS	(5)	0
Plan transfer	0	0
Other	38	0
Post-employment benefit obligations/Fair value of plan assets, December 31	(1,653)	(1,684)
OPEBs | Plan assets
Disclosure of net defined benefit liability (asset) [line items]
Post-employment benefit obligations/Fair value of plan assets, January 1	280	266
Changes in net defined benefit liability (asset) [abstract]
Interest on obligations	11	11
Actuarial (losses) gains	12	6
Benefit payments	(81)	(79)
Employer contributions	77	76
Employee contributions	0	0
Acquisition of MTS	0	0
Post-employment benefit obligations/Fair value of plan assets, December 31	299	280
OPEBs | Plan deficit
Disclosure of net defined benefit liability (asset) [line items]
Post-employment benefit obligations/Fair value of plan assets, January 1	(1,404)
Changes in net defined benefit liability (asset) [abstract]
Post-employment benefit obligations/Fair value of plan assets, December 31	(1,354)	(1,404)
OPEBs | Effect of asset limit
Disclosure of net defined benefit liability (asset) [line items]
Post-employment benefit obligations/Fair value of plan assets, January 1	0
Changes in net defined benefit liability (asset) [abstract]
Post-employment benefit obligations/Fair value of plan assets, December 31	$ 0	$ 0

XML

Post-employee benefit plans - Funded status (Details) $ in Millions	Jan. 15, 2016 plan	Dec. 31, 2017 CAD ($)	Dec. 31, 2016 CAD ($)
Employee Benefits [Abstract]
Number of defined benefit plans retained during sale of subsidiaries | plan	2
Plan deficit
Disclosure of defined benefit plans [line items]
Present value of post- employment benefit obligations		$ (26,057)	$ (22,537)
Fair value of plan assets		24,244	20,843
Plan surplus (deficit)		(1,813)	(1,694)
Plan deficit | FUNDED
Disclosure of defined benefit plans [line items]
Present value of post- employment benefit obligations		(23,746)	(20,249)
Fair value of plan assets		23,894	20,520
Plan surplus (deficit)		148	271
Plan deficit | PARTIALLY FUNDED
Disclosure of defined benefit plans [line items]
Present value of post- employment benefit obligations		(1,976)	(1,995)
Fair value of plan assets		350	323
Plan surplus (deficit)		(1,626)	(1,672)
Plan deficit | UNFUNDED
Disclosure of defined benefit plans [line items]
Present value of post- employment benefit obligations		(335)	(293)
Fair value of plan assets		0	0
Plan surplus (deficit)		$ (335)	$ (293)

XML

Post-employee benefit plans - Significant assumptions (Details) - year	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Post-employment benefit obligations
Discount rate	3.60%	4.00%
Rate of compensation increase	2.25%	2.25%
Cost of living indexation rate	1.60%	1.60%
Life expectancy at age 65 (years)	23.2	23.1
Net post-employment benefit plans cost
Discount rate	4.20%	4.30%
Rate of compensation increase	2.25%	2.50%
Life expectancy at age 65 (years)	23.1	23.0
Weighted average duration of defined benefit obligation	15
Cost of medication
Net post-employment benefit plans cost
Actuarial assumption of medical cost trend rates	8.00%
Ultimate actuarial assumption of medical cost trend rates	4.50%
Term to reach ultimate actuarial assumption of medical cost trend rate	20 years
Cost of covered dental benefits
Net post-employment benefit plans cost
Actuarial assumption of medical cost trend rates	4.00%
Cost of covered hospital benefits
Net post-employment benefit plans cost
Actuarial assumption of medical cost trend rates	3.30%
Cost of other covered healthcare benefits
Net post-employment benefit plans cost
Actuarial assumption of medical cost trend rates	3.00%
DB pension
Net post-employment benefit plans cost
Cost of living indexation rate	1.60%	1.60%

XML

Post-employee benefit plans - Helathcare cost trend rates and sensitivity analysis (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017 CAD ($)
Actuarial assumption of medical cost trend rates
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Percentage of reasonably possible increase in actuarial assumption	1.00%
Percentage of reasonably possible decrease in actuarial assumption	1.00%
Impact on net post-employment benefit plans cost, increase in assumption	$ 7
Impact on net post-employment benefit plans cost, decrease in assumption	(5)
Impact on post-employment benefit obligation, increase in assumption	133
Impact on post-employment benefit obligation, decrease in assumption	$ (115)
Actuarial assumption of discount rates
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Percentage of reasonably possible increase in actuarial assumption	0.50%
Percentage of reasonably possible decrease in actuarial assumption	0.50%
Impact on net post-employment benefit plans cost, increase in assumption	$ (70)
Impact on net post-employment benefit plans cost, decrease in assumption	62
Impact on post-employment benefit obligation, increase in assumption	(1,636)
Impact on post-employment benefit obligation, decrease in assumption	1,746
Actuarial assumption of life expectancy
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Impact on net post-employment benefit plans cost, increase in assumption	33
Impact on net post-employment benefit plans cost, decrease in assumption	(31)
Impact on post-employment benefit obligation, increase in assumption	834
Impact on post-employment benefit obligation, decrease in assumption	$ (808)
Duration of reasonably possible decrease in actuarial assumptions	1 year
Duration of reasonably possible increase in actuarial assumption	1 year

XML

Post-employee benefit plans - Fair value of plan assets (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of fair value of plan assets [line items]
Equity securities, total plan assets fair value percent	22.00%	22.00%
Debt securities, total plan assets fair value percent	65.00%	68.00%
Alternative investments, total plan asset fair value percent	13.00%	10.00%
Total plan assets fair value percent	100.00%	100.00%
Defined benefit obligation hedged	$ 5,000
DB pension
Disclosure of fair value of plan assets [line items]
Plan assets, at fair value	23,945	$ 20,563
Equity securities included in total plan assets	$ 13	$ 17
Equity securities percent included in total plan assets	0.05%	0.08%
Debt securities included in total plan assets	$ 11	$ 15
Debt securities percent included in total plan assets	0.05%	0.07%
Alternative investments included in total plan assets	$ 135	$ 135
Alternative investments percent included in total plan assets	0.56%	0.66%
Canadian | DB pension
Disclosure of fair value of plan assets [line items]
Equity securities	$ 1,045	$ 901
Foreign | DB pension
Disclosure of fair value of plan assets [line items]
Equity securities	$ 4,349	3,682
Bottom of range
Disclosure of fair value of plan assets [line items]
Equity securities, weighted average target allocation	20.00%
Debt securities, weighted average target allocation	55.00%
Alternative investments, weighted average target allocation	0.00%
Top of range
Disclosure of fair value of plan assets [line items]
Equity securities, weighted average target allocation	35.00%
Debt securities, weighted average target allocation	80.00%
Alternative investments, weighted average target allocation	25.00%
Debt securities, excluding money market | Canadian | DB pension
Disclosure of fair value of plan assets [line items]
Debt securities	$ 13,126	12,469
Debt securities, excluding money market | Foreign | DB pension
Disclosure of fair value of plan assets [line items]
Debt securities	1,890	1,068
Money market | DB pension
Disclosure of fair value of plan assets [line items]
Debt securities	491	387
Private equities | DB pension
Disclosure of fair value of plan assets [line items]
Alternative investments	1,484	1,164
Hedge funds | DB pension
Disclosure of fair value of plan assets [line items]
Alternative investments	965	726
Real estate | DB pension
Disclosure of fair value of plan assets [line items]
Alternative investments	484	55
Other | DB pension
Disclosure of fair value of plan assets [line items]
Alternative investments	$ 111	$ 111

XML

Post-employee benefit plans - Contributions (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of defined benefit plans [line items]
Contributions, defined contribution plan	$ (108)	$ (99)
Estimated of contributions expected to be paid to plan for next annual reporting period, defined contribution plan	110
DB pension
Disclosure of defined benefit plans [line items]
Estimate of contributions expected to be paid to plan for next annual reporting period, defined benefit plan	210
OPEBs
Disclosure of defined benefit plans [line items]
Estimate of contributions expected to be paid to plan for next annual reporting period, defined benefit plan	80
Plan assets
Disclosure of defined benefit plans [line items]
Contributions, defined benefit plan	(382)	(702)
Plan assets | DB pension
Disclosure of defined benefit plans [line items]
Contributions, defined benefit plan	(305)	(626)
Voluntary contributions	100	400
Plan assets | OPEBs
Disclosure of defined benefit plans [line items]
Contributions, defined benefit plan	$ (77)	$ (76)

XML

Other non-current liabilities (Details) - CAD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Subclassifications of assets, liabilities and equities [abstract]
Long-term disability benefits obligation	$ 322	$ 302
Provisions	273	273
Deferred revenue on long-term contracts	174	105
CRTC deferral account obligation	96	104
Future tax liabilities	81	73
CRTC tangible benefits obligation	73	115
Other	204	305
Other non-current liabilities	$ 1,223	$ 1,277

XML

Financial and capital management - Financial instruments measured at amortized cost (Details) - Financial liabilities at amortised cost, category - CAD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
CRTC tangible benefits obligation
Disclosure of financial liabilities [line items]
CARRYING VALUE	$ 111	$ 166
FAIR VALUE	110	169
CRTC deferral account obligation
Disclosure of financial liabilities [line items]
CARRYING VALUE	124	136
FAIR VALUE	128	145
Debt securities, finance leases and other debt
Disclosure of financial liabilities [line items]
CARRYING VALUE	19,321	17,879
FAIR VALUE	$ 21,298	$ 20,093

XML

Financial and capital management - Financial instruments measured at fair value (Details) - CAD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of financial assets [line items]
Assets	$ 54,263	$ 50,108
Liabilities	$ (34,780)	(32,254)
Repurchase obligation of trust ownership percentage	9.00%
MLSE financial liability
Disclosure of financial assets [line items]
Liabilities	$ (135)	(135)
MLSE financial liability | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)
Disclosure of financial assets [line items]
Liabilities	0	0
MLSE financial liability | OBSERVABLE MARKET DATA (LEVEL 2)
Disclosure of financial assets [line items]
Liabilities	0	0
MLSE financial liability | NON-OBSERVABLE MARKET INPUTS (LEVEL 3)
Disclosure of financial assets [line items]
Liabilities	(135)	(135)
AFS publicly-traded and privately-held investments
Disclosure of financial assets [line items]
Assets	103	103
AFS publicly-traded and privately-held investments | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)
Disclosure of financial assets [line items]
Assets	1	1
AFS publicly-traded and privately-held investments | OBSERVABLE MARKET DATA (LEVEL 2)
Disclosure of financial assets [line items]
Assets	0	0
AFS publicly-traded and privately-held investments | NON-OBSERVABLE MARKET INPUTS (LEVEL 3)
Disclosure of financial assets [line items]
Assets	102	102
Derivative financial instruments | Derivative financial instruments
Disclosure of financial assets [line items]
Assets (liabilities)	(48)	166
Derivative financial instruments | Derivative financial instruments | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)
Disclosure of financial assets [line items]
Assets (liabilities)	0	0
Derivative financial instruments | Derivative financial instruments | OBSERVABLE MARKET DATA (LEVEL 2)
Disclosure of financial assets [line items]
Assets (liabilities)	(48)	166
Derivative financial instruments | Derivative financial instruments | NON-OBSERVABLE MARKET INPUTS (LEVEL 3)
Disclosure of financial assets [line items]
Assets (liabilities)	0	0
Other | Other
Disclosure of financial assets [line items]
Assets (liabilities)	60	35
Other | Other | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)
Disclosure of financial assets [line items]
Assets (liabilities)	0	0
Other | Other | OBSERVABLE MARKET DATA (LEVEL 2)
Disclosure of financial assets [line items]
Assets (liabilities)	106	88
Other | Other | NON-OBSERVABLE MARKET INPUTS (LEVEL 3)
Disclosure of financial assets [line items]
Assets (liabilities)	$ (46)	$ (53)

XML

Financial and capital management - Credit risk, allowance for doubtful accounts (Details) - Loan secured by trade receivables - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of changes in allowance account for credit losses of financial assets [abstract]
Balance, January 1	$ (60)	$ (64)
Additions	(99)	(102)
Usage	104	106
Balance, December 31	$ (55)	$ (60)

XML

Financial and capital management - Credit risk, trade receivables not impaired (Details) - Loan secured by trade receivables - CAD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of internal credit grades [line items]
Financial assets	$ 3,083	$ 2,907
Trade receivables not past due
Disclosure of internal credit grades [line items]
Financial assets	2,257	2,187
Trade receivables past due and not impaired | Under 60 days
Disclosure of internal credit grades [line items]
Financial assets	491	286
Trade receivables past due and not impaired | 60 to 120 days
Disclosure of internal credit grades [line items]
Financial assets	279	359
Trade receivables past due and not impaired | Over 120 days
Disclosure of internal credit grades [line items]
Financial assets	$ 56	$ 75

XML

Financial and capital management - Liquidity risk (Details) - CAD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Minimum finance lease payments payable	$ 2,808
MLSE financial liability	135	$ 135
2018
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Minimum finance lease payments payable	572
2019
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Minimum finance lease payments payable	501
2020
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Minimum finance lease payments payable	326
2021
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Minimum finance lease payments payable	278
2022
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Minimum finance lease payments payable	248
THEREAFTER
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Minimum finance lease payments payable	883
Gross carrying amount
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Long-term debt	19,317	17,902
Gross carrying amount | Notes payable
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Current borrowings	3,151	2,649
Gross carrying amount | Loans secured by trade receivables
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Current borrowings	921	$ 931
Liquidity risk
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Interest payable on long-term debt, notes payable and loan secured by trade receivables	8,416
MLSE financial liability	135
Total	32,576
Liquidity risk | 2018
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Interest payable on long-term debt, notes payable and loan secured by trade receivables	792
MLSE financial liability	135
Total	6,232
Liquidity risk | 2019
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Interest payable on long-term debt, notes payable and loan secured by trade receivables	688
MLSE financial liability	0
Total	2,730
Liquidity risk | 2020
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Interest payable on long-term debt, notes payable and loan secured by trade receivables	628
MLSE financial liability	0
Total	2,378
Liquidity risk | 2021
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Interest payable on long-term debt, notes payable and loan secured by trade receivables	586
MLSE financial liability	0
Total	3,111
Liquidity risk | 2022
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Interest payable on long-term debt, notes payable and loan secured by trade receivables	525
MLSE financial liability	0
Total	2,487
Liquidity risk | THEREAFTER
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Interest payable on long-term debt, notes payable and loan secured by trade receivables	5,197
MLSE financial liability	0
Total	15,638
Liquidity risk | Gross carrying amount
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Minimum finance lease payments payable	2,808
Liquidity risk | Gross carrying amount | 2018
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Minimum finance lease payments payable	572
Liquidity risk | Gross carrying amount | 2019
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Minimum finance lease payments payable	501
Liquidity risk | Gross carrying amount | 2020
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Minimum finance lease payments payable	326
Liquidity risk | Gross carrying amount | 2021
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Minimum finance lease payments payable	278
Liquidity risk | Gross carrying amount | 2022
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Minimum finance lease payments payable	248
Liquidity risk | Gross carrying amount | THEREAFTER
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Minimum finance lease payments payable	883
Liquidity risk | Gross carrying amount | Long-term debt
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Long-term debt	17,145
Liquidity risk | Gross carrying amount | Long-term debt | 2018
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Long-term debt	661
Liquidity risk | Gross carrying amount | Long-term debt | 2019
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Long-term debt	1,541
Liquidity risk | Gross carrying amount | Long-term debt | 2020
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Long-term debt	1,424
Liquidity risk | Gross carrying amount | Long-term debt | 2021
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Long-term debt	2,247
Liquidity risk | Gross carrying amount | Long-term debt | 2022
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Long-term debt	1,714
Liquidity risk | Gross carrying amount | Long-term debt | THEREAFTER
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Long-term debt	9,558
Liquidity risk | Gross carrying amount | Notes payable
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Current borrowings	3,151
Liquidity risk | Gross carrying amount | Notes payable | 2018
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Current borrowings	3,151
Liquidity risk | Gross carrying amount | Notes payable | 2019
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Current borrowings	0
Liquidity risk | Gross carrying amount | Notes payable | 2020
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Current borrowings	0
Liquidity risk | Gross carrying amount | Notes payable | 2021
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Current borrowings	0
Liquidity risk | Gross carrying amount | Notes payable | 2022
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Current borrowings	0
Liquidity risk | Gross carrying amount | Notes payable | THEREAFTER
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Current borrowings	0
Liquidity risk | Gross carrying amount | Loans secured by trade receivables
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Current borrowings	921
Liquidity risk | Gross carrying amount | Loans secured by trade receivables | 2018
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Current borrowings	921
Liquidity risk | Gross carrying amount | Loans secured by trade receivables | 2019
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Current borrowings	0
Liquidity risk | Gross carrying amount | Loans secured by trade receivables | 2020
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Current borrowings	0
Liquidity risk | Gross carrying amount | Loans secured by trade receivables | 2021
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Current borrowings	0
Liquidity risk | Gross carrying amount | Loans secured by trade receivables | 2022
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Current borrowings	0
Liquidity risk | Gross carrying amount | Loans secured by trade receivables | THEREAFTER
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Current borrowings	$ 0

XML

Financial and capital management - Market risk (Details) - 12 months ended Dec. 31, 2017 - Currency risk	CAD ($)	USD ($)	USD ($)
Disclosure of detailed information about hedged items [line items]
Nominal amount of hedging instrument settled	$ 480,000,000	$ 357,000,000
Percentage of possible change in risk variable	10.00%		10.00%
Reasonably possible change in risk variable impact on net earnings	$ 2,000,000
Reasonably possible change in 10% depreciation (appreciation) of the CAD dollar impact on other comprehensive income	133,000,000
Maturing in 2018 | Cash flow | Commercial paper | Amount to receive
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value			$ 2,492,000,000
Maturing in 2018 | Cash flow | Commercial paper | Amount to pay
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value	3,180,000,000
Maturing in 2018 | Cash flow | Anticipated transactions | Amount to receive
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value			872,000,000
Maturing in 2018 | Cash flow | Anticipated transactions | Amount to pay
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value	1,134,000,000
Maturing in 2018 | Fair value hedges | Anticipated transactions | Amount to receive
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value			36,000,000
Maturing in 2018 | Fair value hedges | Anticipated transactions | Amount to pay
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value	46,000,000
Maturing in 2018 - 2019 | Cash flow | Anticipated transactions | Amount to receive
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value	97,000,000
Maturing in 2018 - 2019 | Cash flow | Anticipated transactions | Amount to pay
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value			75,000,000
Maturing in 2019 | Cash flow | Anticipated transactions | Amount to receive
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value			576,000,000
Maturing in 2019 | Cash flow | Anticipated transactions | Amount to pay
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value	721,000,000
Maturing in 2020 - 2021 | Cash flow | Anticipated transactions | Amount to receive
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value			$ 76,000,000
Maturing in 2020 - 2021 | Cash flow | Anticipated transactions | Amount to pay
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value	$ 96,000,000

XML

Financial and capital management - Interest rate exposures (Details) - Interest rate risk - CAD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about hedging instruments [line items]
Percentage of possible change in risk variable	1.00%
Interest rate exposure, interest rate percent decrease	1.00%
Reasonably possible change in risk variable impact on net earnings	$ 29,000,000
Fair value hedges | Interest rate swap contract
Disclosure of detailed information about hedging instruments [line items]
Nominal amount of hedging instrument settled		$ 700,000,000
Gain (loss) on change in fair value of hedging instrument used as basis for recognising hedge ineffectiveness		15,000,000
Gain (loss) on change in fair value of hedged item used as basis for recognising hedge ineffectiveness		16,000,000
Non-current borrowings | Fair value hedges | Interest rate lock
Disclosure of detailed information about hedging instruments [line items]
Nominal amount of hedging instrument settled		500,000,000
Dividend rate resets on preferred shares | Fair value hedges | Interest rate lock
Disclosure of detailed information about hedging instruments [line items]
Nominal amount of hedging instrument settled		$ 350,000,000

XML

Financial and capital management - Equity price exposures (Details) - Equity price risk - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about hedging instruments [line items]
Percentage of possible change in risk variable	5.00%
Interest rate exposure, interest rate percent decrease	5.00%
Reasonably possible change in risk variable impact on net earnings	$ 38
Forward contract | Settlement of share-based compensation plans
Disclosure of detailed information about hedging instruments [line items]
Financial instruments designated as hedging instruments, at fair value	$ 45	$ 111

XML

Financial and capital management - Capital management (Details)			12 Months Ended
	Feb. 07, 2018 $ / shares	Feb. 01, 2017 $ / shares	Dec. 31, 2017	Feb. 06, 2018 $ / shares	Jan. 31, 2017 $ / shares	Dec. 31, 2016
Disclosure of objectives, policies and processes for managing capital [line items]
Exceeded limit in internal net debt leverage ratio			0.45
Summary Of Key Ratios [Abstract]
Net debt leverage ratio			2.70			2.57
Adjusted EBITDA to net interest expense ratio			9.12			9.31
Approved Increase In Annual Dividend	0.052	0.051
Dividends paid, ordinary shares per share	$ 3.02	$ 2.87		$ 2.87	$ 2.73
Percentage of preferred shares included in debt leverage calculation			50.00%
Bottom of range
Disclosure of objectives, policies and processes for managing capital [line items]
Target debt leverage ratio			1.75
Target adjusted EBITDA to net interest expense ratio			7.5
Top of range
Disclosure of objectives, policies and processes for managing capital [line items]
Target debt leverage ratio			2.25
Dividends declared
Summary Of Key Ratios [Abstract]
Dividends declared per common share (in CAD per share)	$ 0.7550

XML

Share capital - Summary of principal terms of preference shares (Details) $ / shares in Units, $ in Millions					12 Months Ended
	Mar. 01, 2018 shares	Feb. 28, 2018	Dec. 01, 2017 shares	Sep. 01, 2017 shares	Dec. 31, 2017 CAD ($) vote $ / shares shares	Dec. 31, 2016 CAD ($)
Disclosure of classes of share capital [line items]
Recurring redemption date term					5 years
Series Q
Disclosure of classes of share capital [line items]
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.50
AUTHORIZED (in shares)					8,000,000
ISSUED (in shares)					0
OUTSTANDING (in shares)					0
STATED CAPITAL | $					$ 0	$ 0
Series R
Disclosure of classes of share capital [line items]
ANNUAL DIVIDEND RATE (as a percent)					4.13%
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.00
AUTHORIZED (in shares)					8,000,000
ISSUED (in shares)					8,000,000
OUTSTANDING (in shares)					8,000,000
STATED CAPITAL | $					$ 200	200
Recurring redemption date term					5 years
Dividend rate reset term					5 years
Series S
Disclosure of classes of share capital [line items]
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.50
AUTHORIZED (in shares)					8,000,000
ISSUED (in shares)					3,513,448
OUTSTANDING (in shares)					3,513,448
STATED CAPITAL | $					$ 88	88
Series T
Disclosure of classes of share capital [line items]
ANNUAL DIVIDEND RATE (as a percent)					3.019%
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.00
AUTHORIZED (in shares)					8,000,000
ISSUED (in shares)					4,486,552
OUTSTANDING (in shares)					4,486,552
STATED CAPITAL | $					$ 112	112
Recurring redemption date term					5 years
Dividend rate reset term					5 years
Series Y
Disclosure of classes of share capital [line items]
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.50
AUTHORIZED (in shares)					10,000,000
ISSUED (in shares)					8,081,491
OUTSTANDING (in shares)			8,772,468		8,081,491
STATED CAPITAL | $					$ 202	219
Share conversion ratio			1
Share conversions (in shares)			1,276,161
Series Z
Disclosure of classes of share capital [line items]
ANNUAL DIVIDEND RATE (as a percent)					3.904%
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.00
AUTHORIZED (in shares)					10,000,000
ISSUED (in shares)					1,918,509
OUTSTANDING (in shares)			1,227,532		1,918,509
STATED CAPITAL | $					$ 48	31
Recurring redemption date term					5 years
Dividend rate reset term					5 years
Share conversion ratio			1
Share conversions (in shares)			585,184
Series AA
Disclosure of classes of share capital [line items]
ANNUAL DIVIDEND RATE (as a percent)					3.61%
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.00
AUTHORIZED (in shares)					20,000,000
ISSUED (in shares)					11,398,396
OUTSTANDING (in shares)				10,144,302	11,398,396
STATED CAPITAL | $					$ 291	259
Recurring redemption date term					5 years
Dividend rate reset term					5 years
Share conversion ratio				1
Share conversions (in shares)				965,769
Series AB
Disclosure of classes of share capital [line items]
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.50
AUTHORIZED (in shares)					20,000,000
ISSUED (in shares)					8,601,604
OUTSTANDING (in shares)				9,855,698	8,601,604
STATED CAPITAL | $					$ 219	251
Share conversion ratio				1
Share conversions (in shares)				2,219,863
Series AC
Disclosure of classes of share capital [line items]
ANNUAL DIVIDEND RATE (as a percent)					3.55%
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.00
AUTHORIZED (in shares)					20,000,000
ISSUED (in shares)					5,069,935
OUTSTANDING (in shares)					5,069,935
STATED CAPITAL | $					$ 129	129
Recurring redemption date term					5 years
Dividend rate reset term					5 years
Series AD
Disclosure of classes of share capital [line items]
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.50
AUTHORIZED (in shares)					20,000,000
ISSUED (in shares)					14,930,065
OUTSTANDING (in shares)					14,930,065
STATED CAPITAL | $					$ 381	381
Series AE
Disclosure of classes of share capital [line items]
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.50
AUTHORIZED (in shares)					24,000,000
ISSUED (in shares)					9,292,133
OUTSTANDING (in shares)					9,292,133
STATED CAPITAL | $					$ 232	232
Series AF
Disclosure of classes of share capital [line items]
ANNUAL DIVIDEND RATE (as a percent)					3.11%
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.00
AUTHORIZED (in shares)					24,000,000
ISSUED (in shares)					6,707,867
OUTSTANDING (in shares)					6,707,867
STATED CAPITAL | $					$ 168	168
Recurring redemption date term					5 years
Dividend rate reset term					5 years
Series AG
Disclosure of classes of share capital [line items]
ANNUAL DIVIDEND RATE (as a percent)					2.80%
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.00
AUTHORIZED (in shares)					22,000,000
ISSUED (in shares)					4,985,351
OUTSTANDING (in shares)					4,985,351
STATED CAPITAL | $					$ 125	125
Recurring redemption date term					5 years
Dividend rate reset term					5 years
Series AH
Disclosure of classes of share capital [line items]
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.50
AUTHORIZED (in shares)					22,000,000
ISSUED (in shares)					9,014,649
OUTSTANDING (in shares)					9,014,649
STATED CAPITAL | $					$ 225	225
Series AI
Disclosure of classes of share capital [line items]
ANNUAL DIVIDEND RATE (as a percent)					2.75%
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.00
AUTHORIZED (in shares)					22,000,000
ISSUED (in shares)					5,949,884
OUTSTANDING (in shares)					5,949,884
STATED CAPITAL | $					$ 149	149
Recurring redemption date term					5 years
Dividend rate reset term					5 years
Series AJ
Disclosure of classes of share capital [line items]
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.50
AUTHORIZED (in shares)					22,000,000
ISSUED (in shares)					8,050,116
OUTSTANDING (in shares)					8,050,116
STATED CAPITAL | $					$ 201	201
Series AK
Disclosure of classes of share capital [line items]
ANNUAL DIVIDEND RATE (as a percent)					2.954%
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.00
AUTHORIZED (in shares)					25,000,000
ISSUED (in shares)					22,745,921
OUTSTANDING (in shares)					22,745,921
STATED CAPITAL | $					$ 569	569
Recurring redemption date term					5 years
Dividend rate reset term					5 years
Series AL
Disclosure of classes of share capital [line items]
AUTHORIZED (in shares)					25,000,000
ISSUED (in shares)					2,254,079
OUTSTANDING (in shares)					2,254,079
STATED CAPITAL | $					$ 56	56
Recurring redemption date term					5 years
Series AL | December 31, 2021
Disclosure of classes of share capital [line items]
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.00
Series AL | Any Date Not A Conversion Date
Disclosure of classes of share capital [line items]
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.50
Series AM
Disclosure of classes of share capital [line items]
ANNUAL DIVIDEND RATE (as a percent)					2.764%
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.00
AUTHORIZED (in shares)					30,000,000
ISSUED (in shares)					9,546,615
OUTSTANDING (in shares)					9,546,615
STATED CAPITAL | $					$ 218	218
Recurring redemption date term					5 years
Dividend rate reset term					5 years
Series AN
Disclosure of classes of share capital [line items]
AUTHORIZED (in shares)					30,000,000
ISSUED (in shares)					1,953,385
OUTSTANDING (in shares)					1,953,385
STATED CAPITAL | $					$ 45	45
Recurring redemption date term					5 years
Series AN | March 31, 2021
Disclosure of classes of share capital [line items]
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.00
Series AN | Any Date Not A Conversion Date
Disclosure of classes of share capital [line items]
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.50
Series AO
Disclosure of classes of share capital [line items]
ANNUAL DIVIDEND RATE (as a percent)					4.26%
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.00
AUTHORIZED (in shares)					30,000,000
ISSUED (in shares)					4,600,000
OUTSTANDING (in shares)					4,600,000
STATED CAPITAL | $					$ 118	118
Recurring redemption date term					5 years
Dividend rate reset term					5 years
Series AP
Disclosure of classes of share capital [line items]
AUTHORIZED (in shares)					30,000,000
ISSUED (in shares)					0
OUTSTANDING (in shares)					0
STATED CAPITAL | $					$ 0	0
Recurring redemption date term					5 years
Series AP | March 31, 2017
Disclosure of classes of share capital [line items]
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.00
Series AP | After March 31, 2017 And Any Date Not A Conversion Date
Disclosure of classes of share capital [line items]
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.50
Series AQ
Disclosure of classes of share capital [line items]
ANNUAL DIVIDEND RATE (as a percent)					4.25%
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.00
AUTHORIZED (in shares)					30,000,000
ISSUED (in shares)					9,200,000
OUTSTANDING (in shares)					9,200,000
STATED CAPITAL | $					$ 228	228
Recurring redemption date term					5 years
Dividend rate reset term					5 years
Series AR
Disclosure of classes of share capital [line items]
AUTHORIZED (in shares)					30,000,000
ISSUED (in shares)					0
OUTSTANDING (in shares)					0
STATED CAPITAL | $					$ 0	0
Recurring redemption date term					5 years
Series AR | September 30, 2023
Disclosure of classes of share capital [line items]
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.00
Series AR | After September 30, 2023 And Any Date Not A Conversion Date
Disclosure of classes of share capital [line items]
REDEMPTION PRICE (cad per share) | $ / shares					$ 25.50
Preferred shares
Disclosure of classes of share capital [line items]
STATED CAPITAL | $					$ 4,004	$ 4,004
Vote per share | vote					1
Share conversion ratio					1
Major ordinary share transactions | Series AC
Disclosure of classes of share capital [line items]
ANNUAL DIVIDEND RATE (as a percent)	4.38%	3.55%
OUTSTANDING (in shares)	5,069,935
Share conversion ratio	1
Share conversions (in shares)	397,181
Major ordinary share transactions | Series AD
Disclosure of classes of share capital [line items]
OUTSTANDING (in shares)	14,930,065
Share conversion ratio	1
Share conversions (in shares)	5,356,937

XML

Share capital - Summary of common shares (Details) - CAD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Feb. 08, 2018
NUMBER OF SHARES
Shares issued for the acquisition of MTS	$ 1,594,000,000
Shares issued under employee stock option plan (in shares)	2,555,863	2,236,891
Shares issued under employee stock option plan	$ 116,000,000	$ 98,000,000
Shares issued under dividend reinvestment plan		38,000,000
Shares issued under ESP	5,000,000	128,000,000
Common shares
NUMBER OF SHARES
Stated capital beginning of period	18,370,000,000
Stated capital end of period	$ 20,091,000,000	$ 18,370,000,000
SHARES ISSUED | Class B
NUMBER OF SHARES
Number of shares beginning of period (in shares)	0
Number of shares end of period (in shares)	0	0
SHARES ISSUED | Common shares
NUMBER OF SHARES
Number of shares beginning of period (in shares)	870,706,332	865,614,188
Stated capital beginning of period	$ 18,370,000,000	$ 18,100,000,000
Shares issued for the acquisition of MTS (in shares)	27,642,714	0
Shares issued for the acquisition of MTS	$ 1,594,000,000	$ 0
Shares issued under employee stock option plan (in shares)	2,555,863	2,236,891
Shares issued under employee stock option plan	$ 122,000,000	$ 104,000,000
Shares issued under dividend reinvestment plan (in shares)	0	688,839
Shares issued under dividend reinvestment plan	$ 0	$ 38,000,000
Shares issued under ESP (in shares)	91,731	2,166,414
Shares issued under ESP	$ 5,000,000	$ 128,000,000
Number of shares end of period (in shares)	900,996,640	870,706,332
Stated capital end of period	$ 20,091,000,000	$ 18,370,000,000
Major ordinary share transactions
NUMBER OF SHARES
Stock repurchase program, number of shares authorized to be repurchased			3,500,000.0
Stock repurchase program, authorized amount			$ 175,000,000

XML

Share-based payments - Share-based payment Amounts Included in the Income Statements as Operating Costs (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of terms and conditions of share-based payment arrangement [line items]
Total share-based payments	$ (81)	$ (90)
ESP
Disclosure of terms and conditions of share-based payment arrangement [line items]
Total share-based payments	(28)	(29)
RSUs/PSUs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Total share-based payments	(44)	(49)
Other
Disclosure of terms and conditions of share-based payment arrangement [line items]
Total share-based payments	$ (9)	$ (12)

XML

Share-based payments - Narrative (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of shares authorized (in shares)	14,586,683
ESP
Disclosure of terms and conditions of share-based payment arrangement [line items]
Maximum employee contribution rate	12.00%
Award vesting period	2 years
Number of shares authorized (in shares)	5,591,566
RSUs/PSUs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Award vesting period	3 years
DSP
Disclosure of terms and conditions of share-based payment arrangement [line items]
Award vesting period	3 years
Liabilities from share-based payment transactions	$ 30	$ 37
Stock Options
Disclosure of terms and conditions of share-based payment arrangement [line items]
Award vesting period	3 years
Award exercise period	7 years
Top of range | ESP
Disclosure of terms and conditions of share-based payment arrangement [line items]
Maximum employer contribution rate	2.00%
Bottom of range | Deferred Stock Units (DSU)
Disclosure of terms and conditions of share-based payment arrangement [line items]
Percent of employee compensation paid in DSUs after minimum share ownership requirement	50.00%

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Share-based payments - ESP Option Activity (Details) - ESP	12 Months Ended
	Dec. 31, 2017 CAD ($) shares	Dec. 31, 2016 CAD ($) shares
Disclosure of terms and conditions of share-based payment arrangement [line items]
Unvested contributions, January 1 (in shares)	1,073,212	1,146,046
Granted (in shares)	610,657	600,808
Dividends credited (in shares)	49,299	49,988
Vested (in shares)	(553,837)	(586,309)
Forfeited (in shares)	(140,301)	(137,321)
Unvested contributions, December 31 (in shares)	1,039,030	1,073,212
Weighted average fair value at measurement date, other equity instruments granted | $	$ 60	$ 59

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Share-based payments - Outstanding RSUs/PSUs Activity (Details) - RSUs/PSUs	12 Months Ended
	Dec. 31, 2017 shares	Dec. 31, 2016 CAD ($) shares
Disclosure of terms and conditions of share-based payment arrangement [line items]
Beginning balance, outstanding (in shares)	2,928,698	3,333,583
Granted (in shares)	879,626	874,888
Dividends credited (in shares)	132,402	137,583
Settled (in shares)	(1,096,403)	(1,321,846)
Forfeited (in shares)	(103,931)	(95,510)
Ending balance, outstanding (in shares)	2,740,392	2,928,698
Vested, As of December 31(in shares)	985,382	1,058,200
Weighted average fair value at measurement date, other equity instruments granted | $		$ 58

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Share-based payments - Outstanding DSUs Activity (Details) - Deferred Stock Units (DSU)	12 Months Ended
	Dec. 31, 2017 CAD ($) shares	Dec. 31, 2016 shares
Disclosure of terms and conditions of share-based payment arrangement [line items]
Beginning balance, outstanding (in shares)	4,131,229	3,796,051
Issued (in shares)	69,742	87,665
Settlement of RSUs/PSUs (in shares)	101,066	323,428
Dividends credited (in shares)	203,442	183,852
Settled (in shares)	(195,951)	(259,767)
Ending balance, outstanding (in shares)	4,309,528	4,131,229
Weighted average fair value at measurement date, other equity instruments granted | $	$ 59

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Share-based payments - Outstanding Stock Options (Details)	12 Months Ended
	Dec. 31, 2017 CAD ($) shares $ / shares	Dec. 31, 2016 CAD ($) shares $ / shares
Share-based Payment Arrangements [Abstract]
Outstanding, beginning balance (in shares) | shares	10,242,162	9,666,904
Granted (in shares) | shares	3,043,448	2,968,062
Exercised (in shares) | shares	(2,555,863)	(2,236,891)
Forfeited (in shares) | shares	(239,498)	(155,913)
Outstanding, ending balance (in shares) | shares	10,490,249	10,242,162
Exercisable at December 31 (in shares) | shares	2,013,983	1,786,251
Weighted average exercise price of share options outstanding, beginning balance (CAD per share) | $	$ 52	$ 48
Weighted average exercise price of share options granted (CAD per share) | $	59	58
Weighted average exercise price of share options exercised (CAD per share) | $	45	44
Weighted average exercise price of share options forfeited (CAD per share) | $	58	52
Weighted average exercise price of share options outstanding, ending balance (CAD per share) | $	55	52
Weighted average exercise price of share options exercisable at December 31 (CAD per share) | $	$ 45	$ 42
Weighted average share price, share options exercised (CAD per share) | $ / shares	$ 60	$ 59

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Share-based payments - Stock Options Exercise Prices and Weighted Average Remaining Life (Details)	Dec. 31, 2017 CAD ($) shares year	Dec. 31, 2016 CAD ($) shares	Dec. 31, 2015 CAD ($) shares
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
NUMBER OF SHARES | shares	10,490,249	10,242,162	9,666,904
WEIGHTED AVERAGE REMAINING LIFE (YEARS) | year	4.68
WEIGHTED AVERAGE EXERCISE PRICE ($)	$ 55	$ 52	$ 48
$30–$39
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
NUMBER OF SHARES | shares	35,408
WEIGHTED AVERAGE REMAINING LIFE (YEARS) | year	0.14
WEIGHTED AVERAGE EXERCISE PRICE ($)	$ 36
$30–$39 | Bottom of range
Disclosure of range of exercise prices of outstanding share options [line items]
Exercise price of outstanding share options	30
$30–$39 | Top of range
Disclosure of range of exercise prices of outstanding share options [line items]
Exercise price of outstanding share options	$ 39
$40-$49
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
NUMBER OF SHARES | shares	1,978,575
WEIGHTED AVERAGE REMAINING LIFE (YEARS) | year	2.54
WEIGHTED AVERAGE EXERCISE PRICE ($)	$ 46
$40-$49 | Bottom of range
Disclosure of range of exercise prices of outstanding share options [line items]
Exercise price of outstanding share options	40
$40-$49 | Top of range
Disclosure of range of exercise prices of outstanding share options [line items]
Exercise price of outstanding share options	$ 49
$50-$59
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
NUMBER OF SHARES | shares	8,377,818
WEIGHTED AVERAGE REMAINING LIFE (YEARS) | year	5.19
WEIGHTED AVERAGE EXERCISE PRICE ($)	$ 58
$50-$59 | Bottom of range
Disclosure of range of exercise prices of outstanding share options [line items]
Exercise price of outstanding share options	50
$50-$59 | Top of range
Disclosure of range of exercise prices of outstanding share options [line items]
Exercise price of outstanding share options	$ 59
$60 & above
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
NUMBER OF SHARES | shares	98,448
WEIGHTED AVERAGE REMAINING LIFE (YEARS) | year	5.84
WEIGHTED AVERAGE EXERCISE PRICE ($)	$ 61
$60 & above | Bottom of range
Disclosure of range of exercise prices of outstanding share options [line items]
Exercise price of outstanding share options	$ 60

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Share-based payments - Fair Value Assumptions (Details)	12 Months Ended
	Dec. 31, 2017 CAD ($) year
Share-based Payment Arrangements [Abstract]
Weighted average fair value per option granted (CAD per share)	$ 1.97
Weighted average share price (CAD per share)	58
Weighted average exercise price (CAD per share)	$ 59
Dividend yield	5.00%
Expected volatility	13.00%
Risk-free interest rate	1.00%
Expected life (years) | year	4

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Additional cash flow information (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Changes in liabilities arising from financing activities [abstract]
January 1, 2017	$ 22,045
Cash flows used in financing activities
Increase in notes payable	333	$ 991
Issue of long-term debt	3,011	2,244
Repayment of long-term debt	(2,653)	(2,516)
Cash dividends paid on common and preferred shares	(2,639)
Cash dividends paid by subsidiaries to non-controlling interests	(34)	(46)
Other financing activities	(60)	(54)
Increase (decrease) in liabilities arising from financing activities	(2,042)
Non-cash changes arising from
Finance lease additions	339
Dividends declared on common and preferred shares	2,692
Dividends declared by subsidiaries to non-controlling interests	45
Effect of changes in foreign exchange rates	0
Business acquisitions	972
Other	74
Total non-cash changes	4,122
December 31, 2017	24,125	22,045
DEBT DUE WITHIN ONE YEAR AND LONG-TERM DEBT
Changes in liabilities arising from financing activities [abstract]
January 1, 2017	21,459
Cash flows used in financing activities
Increase in notes payable	452
Issue of long-term debt	3,011
Repayment of long-term debt	(2,653)
Cash dividends paid on common and preferred shares	0
Cash dividends paid by subsidiaries to non-controlling interests	0
Other financing activities	(44)
Increase (decrease) in liabilities arising from financing activities	766
Non-cash changes arising from
Finance lease additions	339
Dividends declared on common and preferred shares	0
Dividends declared by subsidiaries to non-controlling interests	0
Effect of changes in foreign exchange rates	(198)
Business acquisitions	972
Other	55
Total non-cash changes	1,168
December 31, 2017	23,393	21,459
DERIVATIVE TO HEDGE FOREIGN CURRENCY ON DEBT
Changes in liabilities arising from financing activities [abstract]
January 1, 2017	(31)
Cash flows used in financing activities
Increase in notes payable	(119)
Issue of long-term debt	0
Repayment of long-term debt	0
Cash dividends paid on common and preferred shares	0
Cash dividends paid by subsidiaries to non-controlling interests	0
Other financing activities	6
Increase (decrease) in liabilities arising from financing activities	(113)
Non-cash changes arising from
Finance lease additions	0
Dividends declared on common and preferred shares	0
Dividends declared by subsidiaries to non-controlling interests	0
Effect of changes in foreign exchange rates	198
Business acquisitions	0
Other	0
Total non-cash changes	198
December 31, 2017	54	(31)
DIVIDENDS PAYABLE
Changes in liabilities arising from financing activities [abstract]
January 1, 2017	617
Cash flows used in financing activities
Increase in notes payable	0
Issue of long-term debt	0
Repayment of long-term debt	0
Cash dividends paid on common and preferred shares	(2,639)
Cash dividends paid by subsidiaries to non-controlling interests	(34)
Other financing activities	0
Increase (decrease) in liabilities arising from financing activities	(2,673)
Non-cash changes arising from
Finance lease additions	0
Dividends declared on common and preferred shares	2,692
Dividends declared by subsidiaries to non-controlling interests	45
Effect of changes in foreign exchange rates	0
Business acquisitions	0
Other	(3)
Total non-cash changes	2,734
December 31, 2017	678	617
OTHER LIABILITIES
Changes in liabilities arising from financing activities [abstract]
January 1, 2017	0
Cash flows used in financing activities
Increase in notes payable	0
Issue of long-term debt	0
Repayment of long-term debt	0
Cash dividends paid on common and preferred shares	0
Cash dividends paid by subsidiaries to non-controlling interests	0
Other financing activities	(22)
Increase (decrease) in liabilities arising from financing activities	(22)
Non-cash changes arising from
Finance lease additions	0
Dividends declared on common and preferred shares	0
Dividends declared by subsidiaries to non-controlling interests	0
Effect of changes in foreign exchange rates	0
Business acquisitions	0
Other	22
Total non-cash changes	22
December 31, 2017	$ 0	$ 0

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Committments and contingencies (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of contingent liabilities [line items]
Operating leases	$ 1,436
Commitments for property, plant and equipment and intangible assets	4,157
Purchase obligations	3,909
Proposed acquisition of Séries and Historia specialty channels	200
Acquisition of AlarmForce (1)	182
Total	9,884
Operating leases, rent expense	$ 399	$ 353
Bottom of range
Disclosure of contingent liabilities [line items]
Operating leases, term of contract	1 year
Top of range
Disclosure of contingent liabilities [line items]
Operating leases, term of contract	50 years
2018
Disclosure of contingent liabilities [line items]
Operating leases	$ 312
Commitments for property, plant and equipment and intangible assets	1,039
Purchase obligations	865
Proposed acquisition of Séries and Historia specialty channels	200
Acquisition of AlarmForce (1)	182
Total	2,598
2019
Disclosure of contingent liabilities [line items]
Operating leases	264
Commitments for property, plant and equipment and intangible assets	808
Purchase obligations	664
Proposed acquisition of Séries and Historia specialty channels	0
Acquisition of AlarmForce (1)	0
Total	1,736
2020
Disclosure of contingent liabilities [line items]
Operating leases	225
Commitments for property, plant and equipment and intangible assets	614
Purchase obligations	550
Proposed acquisition of Séries and Historia specialty channels	0
Acquisition of AlarmForce (1)	0
Total	1,389
2021
Disclosure of contingent liabilities [line items]
Operating leases	175
Commitments for property, plant and equipment and intangible assets	516
Purchase obligations	498
Proposed acquisition of Séries and Historia specialty channels	0
Acquisition of AlarmForce (1)	0
Total	1,189
2022
Disclosure of contingent liabilities [line items]
Operating leases	119
Commitments for property, plant and equipment and intangible assets	372
Purchase obligations	429
Proposed acquisition of Séries and Historia specialty channels	0
Acquisition of AlarmForce (1)	0
Total	920
THEREAFTER
Disclosure of contingent liabilities [line items]
Operating leases	341
Commitments for property, plant and equipment and intangible assets	808
Purchase obligations	903
Proposed acquisition of Séries and Historia specialty channels	0
Acquisition of AlarmForce (1)	0
Total	$ 2,052

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Related party transactions - Narrative (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Associates and Joint Arrangements
Disclosure of transactions between related parties [line items]
Recognized revenue, related parties	$ 11	$ 16
Incurred expenses, related parties	177	180
Bell Canada | Master Trust Fund
Disclosure of transactions between related parties [line items]
Recognized revenue, related parties	$ 10	$ 10

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Related party transactions - Disclosure of ownership percentages of significant subsidiaries (Details) - Subsidiaries	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Bell Canada
Disclosure of transactions between related parties [line items]
OWNERSHIP PERCENTAGE	100.00%	100.00%
Bell Mobility
Disclosure of transactions between related parties [line items]
OWNERSHIP PERCENTAGE	100.00%	100.00%
Bell Media
Disclosure of transactions between related parties [line items]
OWNERSHIP PERCENTAGE	100.00%	100.00%

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Related party transactions - Disclosure of transactions with key management personnel (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Related Party [Abstract]
Wages, salaries, fees and related taxes and benefits	$ (23)	$ (24)
Post-employment benefit plans and OPEBs cost	(3)	(4)
Share-based compensation	(23)	(27)
Key management personnel and board of directors compensation expense	$ (49)	$ (55)

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Significant partly-owned subsidiaries - Summarized Statements of Financial Position (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of subsidiaries [line items]
Current assets	$ 4,639	$ 4,855
Non-current assets	49,624	45,253
Total assets	54,263	50,108
Current liabilities	10,787	10,108
Non-current liabilities	23,993	22,146
Total liabilities	34,780	32,254
Total equity attributable to BCE shareholders	19,160	17,540
Non-controlling interest	323	314
CTV Specialty hedge
Disclosure of subsidiaries [line items]
Current assets	328	293
Non-current assets	1,013	1,013
Total assets	1,341	1,306
Current liabilities	153	130
Non-current liabilities	184	195
Total liabilities	337	325
Total equity attributable to BCE shareholders	700	687
Non-controlling interest	$ 304	$ 294
Proportion of ownership interests held by non-controlling interests	29.90%	29.90%
Net assets	$ 6	$ 2

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Significant partly-owned subsidiaries - Selected Income and Cash Flow Information (Details) - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of subsidiaries [line items]
Operating revenues	$ 22,719	$ 21,719
Net earnings	2,970	3,087
Net earnings attributable to NCI	56	56
Total comprehensive income	2,659	2,821
Non-controlling interest	54	54
Subsidiaries with material non-controlling interests
Disclosure of subsidiaries [line items]
Operating revenues	832	824
Net earnings	179	182
Net earnings attributable to NCI	56	56
Total comprehensive income	172	173
Non-controlling interest	54	54
Cash dividends paid to NCI	$ 34	46
CTV Specialty hedge
Disclosure of subsidiaries [line items]
Non-controlling interest		$ 3