6-K

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16 under
the Securities Exchange Act of 1934

For the month of: April 2017 Commission File Number: 1-8481

BCE Inc.
(Translation of Registrant’s name into English)

1, Carrefour Alexander-Graham-Bell, Verdun, Québec, Canada H3E 3B3,
(514) 870-8777
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F _________ Form 40-F _____X___

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): _____

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): _____

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes _________ No _____X___

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- _____.

Only the BCE Inc. Management’s Discussion and Analysis of Financial Condition and Results of Operations for the quarter ended March 31, 2017 and the BCE Inc. unaudited consolidated interim financial statements for the quarter ended March 31, 2017, included in the BCE Inc. 2017 First Quarter Shareholder Report furnished with this Form 6-K as Exhibit 99.1, the Bell Canada Unaudited Selected Summary Financial Information for the quarter ended March 31, 2017 furnished with this Form 6-K as Exhibit 99.5, and the Exhibit to 2017 First Quarter Financial Statements – Earnings Coverage furnished with this Form 6-K as Exhibit 99.6 are incorporated by reference in the registration statements filed by BCE Inc. with the Securities and Exchange Commission on Form F-3 (Registration Statement No. 333-12130), Form S-8 (Registration Statement No. 333-12780), Form S-8 (Registration Statement No. 333-12802) and Form F-10 (Registration Statement No. 333-213603). Except for the foregoing, no other document or portion of document furnished with this Form 6-K is incorporated by reference in BCE Inc.’s registration statements. Notwithstanding any reference to BCE Inc.’s Web site on the World Wide Web in the documents attached hereto, the information contained in BCE Inc.’s site or any other site on the World Wide Web referred to in BCE Inc.’s site is not a part of this Form 6-K and, therefore, is not furnished to the Securities and Exchange Commission.

Page 1

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BCE Inc.

(signed) Glen LeBlanc

Glen LeBlanc
Executive Vice-President and Chief Financial Officer

April 26, 2017

Page 2

EXHIBIT INDEX

99.1   BCE Inc. 2017 First Quarter Shareholder Report
99.2   Supplementary Financial Information – First Quarter 2017
99.3   CEO/CFO Certifications
99.4   News Release
99.5   Bell Canada Unaudited Selected Summary Financial Information
99.6   Exhibit to 2017 First Quarter Financial Statements – Earnings Coverage

Page 3

EX-99.1

Exhibit 99.1

Table of contents

Table of contents

Management’s discussion and analysis			1
1	Overview		2
	1.1	Financial highlights	2
	1.2	Key corporate and business developments	3
	1.3	Assumptions	4
2	Consolidated financial analysis		5
	2.1	BCE consolidated income statements	5
	2.2	Customer connections	5
	2.3	Operating revenues	6
	2.4	Operating costs	7
	2.5	Net earnings	8
	2.6	Adjusted EBITDA	9
	2.7	Severance, acquisition and other costs	9
	2.8	Depreciation and amortization	10
	2.9	Finance costs	10
	2.10	Other income	10
	2.11	Income taxes	10
	2.12	Net earnings attributable to common shareholders and EPS	10
3	Business segment analysis		11
	3.1	Bell Wireless	11
	3.2	Bell Wireline	15
	3.3	Bell Media	19
4	Financial and capital management		21
	4.1	Net debt	21
	4.2	Outstanding share data	21
	4.3	Cash flows	22
	4.4	Post-employment benefit plans	23
	4.5	Financial risk management	23
	4.6	Credit ratings	25
	4.7	Liquidity	25
5	Quarterly financial information		26
6	Regulatory environment		27
7	Business risks		28
8	Accounting policies, financial measures and controls		30
	8.1	Our accounting policies	30
	8.2	Non-GAAP financial measures and key performance indicators (KPIs)	30
	8.3	Controls and procedures	33

Consolidated financial statements		34
	Consolidated income statements	34
	Consolidated statements of comprehensive income	35
	Consolidated statements of financial position	36
	Consolidated statements of changes in equity	37
	Consolidated statements of cash flows	38

Notes to consolidated financial statements			39
	Note 1	Corporate information	39
	Note 2	Basis of presentation and significant accounting policies	39
	Note 3	Business acquisitions and dispositions	39
	Note 4	Segmented information	42
	Note 5	Operating costs	43
	Note 6	Severance, acquisition and other costs	43
	Note 7	Other income	43
	Note 8	Earnings per share	44
	Note 9	Debt	44
	Note 10	Post-employment benefit plans	45
	Note 11	Financial assets and liabilities	45
	Note 12	Share capital	47
	Note 13	Share-based payments	47

BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT
	MD&A

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 8.2, Non-GAAP financial measures and key performance indicators (KPIs) on pages 30 to 32 for a list of defined non-GAAP financial measures and key performance indicators.

Please refer to BCE’s unaudited consolidated financial statements for the first quarter of 2017 (Q1 2017 Financial Statements) when reading this MD&A. We also encourage you to read BCE’s MD&A for the year ended December 31, 2016 dated March 2, 2017 (BCE 2016 Annual MD&A). In preparing this MD&A, we have taken into account information available to us up to April 25, 2017, the date of this MD&A, unless otherwise stated.

You will find more information about us, including BCE’s annual information form for the year ended December 31, 2016 dated March 2, 2017 (BCE 2016 AIF) and recent financial reports, including the BCE 2016 Annual MD&A, on BCE’s website at BCE.ca, on SEDAR at sedar.com and on EDGAR at sec.gov.

Please also refer to BCE’s press release announcing its results for the first quarter of 2017 to be issued on April 26, 2017, available 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 three months (Q1) ended March 31, 2017 and 2016.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This MD&A including, in particular, but without limitation, the section and sub-sections entitled Assumptions, section 1.2, Key corporate and business developments, section 3.1, Bell Wireless – Key business developments, section 3.2, Bell Wireline – Key business developments and section 6, Regulatory environment, contain forward-looking statements. These forward-looking statements include, but are not limited to, statements relating to our network deployment plans and related capital investments, BCE’s 2017 annualized common share dividend, and our business outlook, objectives, plans and strategies. Forward-looking statements also include any other statements that do not refer to historical facts. A statement we make is forward-looking when it uses what we know and expect today to make a statement about the future. Forward-looking statements are typically 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 this MD&A describe our expectations as at April 25, 2017 and, accordingly, are subject to change after this date. Except as may be required by Canadian securities laws, we do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Forward-looking statements, by their very nature, are subject to inherent risks and uncertainties and are based on several assumptions, both general and 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 MD&A for the purpose of assisting investors and others in understanding our business outlook, objectives, plans and strategic priorities 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 forward-looking statements contained in this MD&A. These assumptions include, without limitation, the assumptions described in the section and various sub-sections of this MD&A entitled Assumptions, which section and sub-sections are incorporated by reference in this cautionary statement. We believe that these assumptions were reasonable at April 25, 2017. If our assumptions turn out to be inaccurate, our actual results could be materially different from what we expect. Unless otherwise indicated in this MD&A, the strategic priorities, business outlook and assumptions described in the BCE 2016 Annual MD&A remain substantially unchanged.

Important risk factors including, without limitation, regulatory, competitive, 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 above-mentioned forward-looking statements and other forward-looking statements in this MD&A, include, but are not limited to, the risks described or referred to in section 6, Regulatory environment and section 7, Business risks, which sections are incorporated by reference in this cautionary statement.

We caution readers that the risks described in the above-mentioned sections 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 April 25, 2017. The financial impact of these transactions and special items can be complex and depends on the facts particular to each of them. We therefore cannot describe the expected impact in a meaningful way, or in the same way we present known risks affecting our business.

			BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT    1
1	Overview	MD&A

1 Overview

1.1 Financial highlights

BCE Q1 2017 selected quarterly information

BCE customer connections

BCE income statements – selected information

	Q1 2017		Q1 2016		$ CHANGE		% CHANGE
Operating revenues
Service	5,051		4,908		143		2.9%
Product	333		362		(29	)	(8.0%	)
Total operating revenues	5,384		5,270		114		2.2%
Operating costs	(3,170	)	(3,107	)	(63	)	(2.0%	)
Adjusted EBITDA	2,214		2,163		51		2.4%
Adjusted EBITDA margin(1)	41.1	%	41.0	%			0.1%
Net earnings attributable to:
Common shareholders	679		707		(28	)	(4.0%	)
Preferred shareholders	31		37		(6	)	(16.2%	)
Non-controlling interest (NCI)	15		14		1		7.1%
Net earnings	725		758		(33	)	(4.4%	)
Adjusted net earnings	758		734		24		3.3%
Net earnings per common share (EPS)	0.78		0.82		(0.04	)	(4.9%	)
Adjusted EPS(1)	0.87		0.85		0.02		2.4%

(1)	Adjusted EBITDA, adjusted EBITDA margin, adjusted net earnings, adjusted EPS 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 8.2, 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 measures.
(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 Internet protocol television (IPTV)) and 419,816 (223,663 residential and 196,153 business) subscribers, respectively. Subsequent to Q1 2017, as part of a consent agreement with the Competition Bureau, on April 1, 2017, BCE divested approximately one-quarter of the acquired MTS postpaid wireless subscribers to TELUS Communications Inc. (TELUS).
(3)	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.

2     BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT
	1	Overview	MD&A

BCE statements of cash flows – selected information

	Q1 2017		Q1 2016		$ CHANGE	% CHANGE
Cash flows from operating activities	1,313		1,290		23	1.8%
Capital expenditures	(852	)	(852	)	–	–
Free cash flow	489		418		71	17.0%

Q1 2017 financial highlights

BCE generated revenue growth of 2.2% in Q1 2017, compared to the same period last year, from higher service revenue of 2.9%, driven by growth across all three of our segments, moderated by a decrease in product revenues of 8.0% year over year.

Net earnings decreased by 4.4% in the first quarter of 2017, compared to the same period last year, due mainly to increased severance, acquisition and other costs relating to the acquisition of MTS as higher adjusted EBITDA was offset by increased amortization expense and finance costs.

Adjusted EBITDA grew by 2.4% in Q1 2017, compared to the first quarter of 2016, driven by higher service revenue flow-through from growth in wireless, Internet, IPTV and media subscriber revenue, the favourable contribution from the acquisitions of Q9 Networks Inc. (Q9) and MTS and disciplined cost containment at Bell Wireline. This was moderated by significant regulatory pressures across all three of our segments, the continued erosion in our traditional voice, legacy data, and satellite TV revenues, a soft advertising market at Bell Media, higher investment in wireless subscriber retention and acquisition, and increased programming and content costs in our Bell Media segment.

BCE’s EPS of $0.78 in Q1 2017 decreased by $0.04 compared to the same period last year. The average number of BCE common shares outstanding increased as a result of shares issued for the acquisition of MTS in March 2017, which further diluted EPS as compared to Q1 2016.

Excluding the impact of severance, acquisition and other costs, net (losses) gains on investments, impairment charges, and early debt redemption costs, adjusted net earnings in the first quarter of 2017 was $758 million, or $0.87 per common share, compared to $734 million, or $0.85 per common share, for the same period last year.

Cash flows from operating activities in the first quarter of 2017 increased by $23 million, compared to Q1 2016, due to higher adjusted EBITDA and lower severance and other costs paid, partly offset by higher acquisition and other costs paid and higher income taxes paid.

Free cash flow in Q1 2017 increased by $71 million, compared to the same period last year, due to an increase in cash flows from operating activities excluding acquisition and other costs paid.

1.2 Key corporate and business developments

Acquisition of MTS 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 $318 million.

Common share dividend increase

On February 1, 2017, BCE’s Board of Directors (BCE Board) approved a 5.1%, or 14 cents per share, increase in the annual common share dividend from $2.73 per share to $2.87 per share, effective with BCE’s 2017 first quarter dividend paid on April 15, 2017 to common shareholders of record on March 15, 2017. This dividend increase represents BCE’s thirteenth increase to its annual common share dividend since the fourth quarter of 2008, representing a 97% overall increase.

$1.5 billion public debt offering

On February 27, 2017, Bell Canada completed a public offering of $1.5 billion of medium term notes (MTN) debentures in two series pursuant to its MTN program. The $1 billion Series M-44 MTN debentures will mature on February 27, 2024 and carry an annual interest rate of 2.70%. The $500 million Series M-45 MTN debentures will mature on February 27, 2047 and carry an annual interest rate of 4.45%. The MTN debentures are fully and unconditionally guaranteed by BCE Inc. The net proceeds of the offering were used principally to partially fund the acquisition by BCE of MTS and to repay short-term debt.

			BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT    3
1	Overview	MD&A

Nomination to BCE’s board of directors

On March 8, 2017, BCE announced the nomination of Karen Sheriff for election to the BCE Board and the retirement of Ronald Brenneman from the BCE Board at BCE’s Annual General Shareholder Meeting in Ottawa 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, 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 9 years in senior leadership positions at BCE. Ronald Brenneman will retire from the BCE Board after more than 13 years of distinguished service, including as Chair of the Management Resources and Compensation Committee and as a member of the Pension Fund Committee.

1.3 Assumptions

As at the date of this MD&A, our forward-looking statements set out in the BCE 2016 Annual MD&A, as updated or supplemented in this MD&A, are based on certain assumptions including, without limitation, the following economic and market assumptions as well as the various assumptions referred to under the sub-sections entitled Assumptions set out in section 3, Business segment analysis of this MD&A.

ASSUMPTIONS ABOUT THE CANADIAN ECONOMY

• Gradual improvement in economic growth, given the Bank of Canada’s most recent estimated growth in Canadian gross domestic product of 2.6% in 2017, representing a fifty basis point increase from an earlier estimate of 2.1%
• Modest employment growth, as the overall level of business investment is expected to remain soft
• 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
• Wireless industry pricing discipline maintained
• Soft media advertising market expected, due to variable demand, and escalating costs to secure TV programming

4     BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT
	2	Consolidated financial analysis	MD&A

2 Consolidated financial analysis

This section provides detailed information and analysis about BCE’s performance in Q1 2017 compared to Q1 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 3, Business segment analysis.

2.1 BCE consolidated income statements

	Q1 2017		Q1 2016		$ CHANGE		% CHANGE
Operating revenues
Service	5,051		4,908		143		2.9%
Product	333		362		(29	)	(8.0%	)
Total operating revenues	5,384		5,270		114		2.2%
Operating costs	(3,170	)	(3,107	)	(63	)	(2.0%	)
Adjusted EBITDA	2,214		2,163		51		2.4%
Adjusted EBITDA margin	41.1	%	41.0	%			0.1%
Severance, acquisition and other costs	(84	)	(42	)	(42	)	(100.0%	)
Depreciation	(722	)	(739	)	17		2.3%
Amortization	(185	)	(149	)	(36	)	(24.2%	)
Finance costs
Interest expense	(234	)	(219	)	(15	)	(6.8%	)
Interest on post-employment benefit obligations	(18	)	(20	)	2		10.0%
Other income	17		23		(6	)	(26.1%	)
Income taxes	(263	)	(259	)	(4	)	(1.5%	)
Net earnings	725		758		(33	)	(4.4%	)
Net earnings attributable to:
Common shareholders	679		707		(28	)	(4.0%	)
Preferred shareholders	31		37		(6	)	(16.2%	)
Non-controlling interest	15		14		1		7.1%
Net earnings	725		758		(33	)	(4.4%	)
Adjusted net earnings	758		734		24		3.3%
EPS	0.78		0.82		(0.04	)	(4.9%	)
Adjusted EPS	0.87		0.85		0.02		2.4%

2.2 Customer connections

TOTAL BCE CONNECTIONS

	Q1 2017	Q1 2016	% CHANGE
Wireless subscribers(1)	8,946,476	8,235,963	8.6%
Postpaid(1)	8,144,936	7,401,221	10.0%
High-speed Internet subscribers(1)(2)	3,717,270	3,411,246	9.0%
TV (Satellite and IPTV subscribers)(1)	2,837,353	2,748,495	3.2%
IPTV(1)	1,465,007	1,230,531	19.1%
Total growth services	15,501,099	14,395,704	7.7%
Wireline NAS lines(1)	6,574,274	6,565,508	0.1%
Total services	22,075,373	20,961,212	5.3%

(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. Subsequent to Q1 2017, as part of a consent agreement with the Competition Bureau, on April 1, 2017, BCE divested approximately one-quarter of the acquired MTS postpaid wireless subscribers to TELUS.

(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.

			BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT    5
2	Consolidated financial analysis	MD&A

BCE NET ACTIVATIONS (LOSSES)

	Q1 2017		Q1 2016		% CHANGE
Wireless subscribers	672		(9,868	)	106.8%
Postpaid	35,782		25,805		38.7%
High-speed Internet subscribers	14,989		19,783		(24.2%	)
TV (Satellite and IPTV subscribers)	(15,663	)	9,999		(256.6%	)
IPTV	22,402		47,740		(53.1%	)
Total growth services	(2	)	19,914		(100.0%	)
Wireline NAS lines	(103,274	)	(107,632	)	4.0%
Total services	(103,276	)	(87,718	)	(17.7%	)

BCE net new customer connections from growth services in Q1 2017 were relatively flat and comprised of:

• 35,782 postpaid wireless customers, partly offset by the loss of 35,110 prepaid wireless customers
• 14,989 high-speed Internet customers
• 38,065 satellite TV customer losses, partly offset by 22,402 IPTV customer connections

NAS net losses of 103,274 in Q1 2017 improved by 4.0% compared to the same period last year.

Total BCE customer connections across all services increased by 5.3% in Q1 2017 compared to Q1 of last year, driven by the subscribers acquired as part of the acquisition of MTS. Excluding the impact of the acquisition of MTS, total customer connections declined by 0.6% in Q1 2017, due to continued but moderating erosion in traditional wireline NAS lines, offset in part by the increase in our growth services customer base.

At March 31, 2017, BCE customer connections totalled 22,075,373 and were comprised of the following:

• 8,946,476 wireless subscribers (including 476,932 subscribers acquired from MTS on March 17, 2017), up 8.6% compared to Q1 2016, and included 8,144,936 postpaid wireless subscribers (including 418,427 subscribers acquired from MTS), an increase of 10.0% compared to Q1 2016
• 3,717,270 high-speed Internet subscribers (including 229,470 subscribers acquired from MTS), 9.0% higher year over year
• 2,837,353 total TV subscribers (including 108,107 acquired from MTS), up 3.2%, compared to Q1 2016 which included 1,465,007 IPTV customers (including 104,661 subscribers acquired from MTS), up 19.1% year over year
• 6,574,274 total NAS lines (including 419,816 acquired from MTS), an improvement of 0.1% compared to Q1 of last year

2.3 Operating revenues

	Q1 2017		Q1 2016		$ CHANGE		% CHANGE
Bell Wireless	1,814		1,693		121		7.1%
Bell Wireline	2,980		2,983		(3	)	(0.1%	)
Bell Media	751		741		10		1.3%
Inter-segment eliminations	(161	)	(147	)	(14	)	(9.5%	)
Total BCE operating revenues	5,384		5,270		114		2.2%

BCE

Total operating revenues for BCE were up 2.2% in the first quarter of 2017, compared to the first quarter of 2016, attributable to growth in both our Bell Wireless and Bell Media segments, offset in part by a modest decline in our Bell Wireline segment. This consisted of service revenues of $5,051 million, which increased by 2.9% compared to Q1 2016, and product revenues of $333 million, which declined by 8.0% over the first quarter of 2016.

6     BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT
	2	Consolidated financial analysis	MD&A

BELL WIRELESS

Bell Wireless operating revenues were up 7.1% in the first quarter of 2017, compared to the same period last year, attributable to service revenue growth of 8.0%, driven by a larger postpaid customer base coupled with the continued growth in blended average revenue per user (ARPU) and the acquisition of MTS on March 17, 2017. The year-over-year increase in blended ARPU was driven by higher average monthly access rates due to the flow-through of 2016 industry pricing initiatives, growth in the proportion of postpaid subscribers in our total customer base, as well as greater smartphone penetration and a growing base of postpaid Long-term Evolution (LTE) and LTE Advanced (LTE-A) customers in our subscriber mix which continued to drive greater data consumption. The year-over-year growth in service revenues was moderated in part by the unfavourable impact from Telecom Decision CRTC 2016-171, issued by the Canadian Radio-television and Telecommunications Commission (CRTC) on May 5, 2016 (Telecom Decision CRTC 2016-171), 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 rate plans generating lower out of bundle usage. Product revenues decreased by 5.7% in the first quarter of 2017, compared to the prior year, mainly as a result of greater promotional offers in a highly competitive marketplace, moderated in part by a higher number of postpaid gross activations and upgrades along with a greater proportion of premium smartphone devices in our sales mix.

BELL WIRELINE

Bell Wireline operating revenues remained essentially stable, decreasing by 0.1% in Q1 2017, compared to the same period last year, reflecting service revenue growth of 0.7% and product revenue decline of 8.8%. Service revenues were up year over year despite significant regulatory pressures from the unfavourable CRTC rulings in 2016 relating to Internet tariffs for aggregated wholesale high-speed access services and Telecom Decision CRTC 2016-171. The year-over-year increase in service revenues was driven by continued Internet and IPTV subscriber growth together with higher household ARPU due in part to residential rate increases, moderated by greater acquisition and retention discounts due to aggressive offers from cable competitors. The acquisitions of Q9 in the fourth quarter of 2016 and MTS on March 17, 2017 also contributed to service revenue growth, offset in part by the ongoing erosion in our voice and legacy data services and a declining satellite TV subscriber base. The decline in product revenues was mainly attributable to lower demand from large business customers for voice and data equipment due to a slowing economy.

BELL MEDIA

Bell Media operating revenues grew 1.3% in Q1 2017, compared to Q1 2016, driven by an increase in subscriber revenues from Bell Media’s expansion of The Movie Network (TMN) into a national pay TV service in March 2016, higher revenues from contract renewals with broadcasting distribution undertakings (BDUs) and further growth from CraveTV and our TV Everywhere Go products driven by a greater number of subscribers. This growth was moderated by a decline in TV and radio advertising revenues due to overall market softness along with the unfavourable impact in conventional TV advertising revenues from the CRTC’s decision to eliminate simultaneous substitution for the National Football League (NFL) Super Bowl. This was only partly offset by higher out-of-home (OOH) advertising revenues from the acquisition of Cieslok Media Ltd. (Cieslok Media) in January 2017 and the favourable contribution from contract wins.

2.4 Operating costs

	Q1 2017		Q1 2016		$ CHANGE		% CHANGE
Bell Wireless	(996	)	(932	)	(64	)	(6.9%	)
Bell Wireline	(1,718	)	(1,726	)	8		0.5%
Bell Media	(617	)	(596	)	(21	)	(3.5%	)
Inter-segment eliminations	161		147		14		9.5%
Total BCE operating costs	(3,170	)	(3,107	)	(63	)	(2.0%	)

(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, information technology (IT) costs, professional service fees and rent.

			BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT    7
2	Consolidated financial analysis	MD&A

BCE

Total BCE operating costs increased by 2.0% in Q1 2017, compared to the first quarter of 2016, driven by higher costs in our Bell Wireless and Bell Media segments, moderated by cost savings realized in our Bell Wireline segment.

BELL WIRELESS

Bell Wireless operating costs increased by 6.9% in Q1 2017 compared to last year. The year-over-year increase in operating costs reflected:

• Higher customer retention spending mainly attributable to greater promotional pricing due to a competitive market coupled with a greater proportion of premium smartphone devices in our upgrade mix
• Increased subscriber acquisition costs driven by higher year-over-year gross activations, higher sales of more expensive smartphones, greater promotional pricing due to a competitive marketplace and a larger proportion of postpaid gross activations in our activation mix
• Higher network operating costs relating to the expansion of network capacity to support subscriber growth and greater data consumption
• Higher labour costs to support the growth in the business
• The acquisition of MTS on March 17, 2017

BELL WIRELINE

Bell Wireline operating costs declined by 0.5% in Q1 2017, compared to the same period last year, as a result of:

• Lower labour costs due to workforce reductions and vendor contract savings
• Decreased cost of goods sold consistent with lower product sales
• Lower bad debt expense

These factors were partially offset by:

• Increased marketing and sales spend in our retail market to support subscriber acquisition
• Increased network repairs and maintenance costs driven by a winter storm in Atlantic Canada
• Higher operating costs as a result of the acquisitions of Q9 and MTS

BELL MEDIA

Bell Media operating costs increased by 3.5% in Q1 2017, compared to Q1 2016, mainly due to the higher programming and content costs relating to the TMN national expansion and CraveTV ramp-up, an increase in the cost of sports broadcast rights, additional expenses from the Cieslok Media acquisition, as well as the execution of OOH contracts awarded in 2016. This increase in operating costs was offset in part by lower labour costs.

2.5 Net earnings

Net earnings decreased by 4.4% in the first quarter of 2017, compared to the same period last year, due mainly to increased severance, acquisition and other costs relating to the acquisition of MTS as higher adjusted EBITDA was offset by increased amortization expense and finance costs.

8     BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT
	2	Consolidated financial analysis	MD&A

2.6 Adjusted EBITDA

	Q1 2017		Q1 2016		$ CHANGE		% CHANGE
Bell Wireless	818		761		57		7.5%
Bell Wireline	1,262		1,257		5		0.4%
Bell Media	134		145		(11	)	(7.6%	)
Total BCE adjusted EBITDA	2,214		2,163		51		2.4%
BCE adjusted EBITDA margin	41.1	%	41.0	%			0.1%

BCE

BCE’s adjusted EBITDA was 2.4% higher in the first quarter of 2017, compared to prior year, driven by growth in our Bell Wireless and Bell Wireline segments, tempered by a decline in our Bell Media segment. This resulted in adjusted EBITDA margin of 41.1% in Q1 2017, which was essentially stable compared to the 41.0% achieved in Q1 2016.

This growth in adjusted EBITDA was driven by higher service revenue flow-through from growth in wireless, Internet, IPTV and media subscriber revenues, the favourable contribution as a result of the acquisitions of Q9 and MTS, and disciplined cost containment at Bell Wireline. This was moderated by significant regulatory pressures across all three of our segments, the continued erosion in our traditional voice, legacy data, and satellite TV revenues, a soft advertising market in Bell Media, higher investment in wireless subscriber retention and acquisition and increased programming and content costs in our Bell Media segment.

BELL WIRELESS

Bell Wireless adjusted EBITDA grew by 7.5% in the first quarter of 2017, compared to the prior year, reflecting higher operating revenues driven by the continued growth in our customer base and blended ARPU, which more than offset the year-over-year increase in operating expenses driven by our greater investment in customer retention and acquisition. This resulted in a modest decrease to adjusted EBITDA margin, based on wireless operating service revenues, to 47.7% this quarter compared to 47.9% achieved last year.

BELL WIRELINE

Bell Wireline adjusted EBITDA increased by 0.4% in Q1 2017, compared to the same period last year, as a result of the revenue growth from our Internet and IPTV businesses, continued effective cost containment and the favourable contribution as a result of the acquisitions of Q9 and MTS. This growth was moderated by significant regulatory pressures and the ongoing decline of satellite TV and higher margin voice and legacy data revenues, including continued re-pricing pressures and market softness in our business market.

BELL MEDIA

Bell Media adjusted EBITDA decreased by 7.6% in Q1 2017, compared to Q1 2016, due to the flow-through of advertising revenues pressures, including the impact of the CRTC’s decision to eliminate simultaneous substitution for the NFL Super Bowl and the higher content costs to secure TV programming. This was moderated by growth in subscriber revenues.

2.7 Severance, acquisition and other costs

2017

Severance, acquisition and other costs of $84 million in the first quarter of 2017 included:

• Severance costs related to workforce reduction initiatives of $31 million
• Acquisition and other costs of $53 million in Q1 2017, including transaction costs, such as legal and financial advisory fees, related to completed or potential acquisitions, as well as a loss on sale of spectrum licences to Xplornet Communications Inc. (Xplornet) relating to the MTS acquisition.

2016

Severance, acquisition and other costs of $42 million in the first quarter of 2016 included:

• Severance costs related to workforce reduction initiatives of $22 million
• Acquisition and other costs of $20 million in Q1 2016 related to 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 Inc.

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2	Consolidated financial analysis	MD&A

2.8 Depreciation and amortization

DEPRECIATION

Depreciation in Q1 2017 decreased by $17 million, compared to Q1 2016, mainly due to an increase of the estimate of useful lives of certain assets as a result of our ongoing annual review process, partly offset by a higher depreciable asset base as we continued to invest in our broadband and wireless networks as well as our IPTV service. The changes in useful lives have been applied prospectively, effective January 1, 2017, and are not expected to have a significant impact on our financial statements.

AMORTIZATION

Amortization in Q1 2017 increased by $36 million compared to Q1 2016 due mainly to a higher asset base.

2.9 Finance costs

INTEREST EXPENSE

Interest expense in the first quarter of 2017 increased by $15 million, compared to the same period last year, mainly as a result of higher average debt levels, 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% as compared to 4.2% on January 1, 2016.

In the first quarter of 2017, interest expense decreased by $2 million compared to the same period last year due to a lower net post-employment benefit obligation.

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

2.10 Other income

2017

Other income of $17 million in the first quarter of 2017 included mark-to-market gains on derivatives used as economic hedges of share-based compensation and U.S. dollar purchases and income from our equity investments, partly offset by losses on retirements and disposals of property, plant and equipment and intangible assets and losses on investments.

2016

Other income of $23 million in the first quarter of 2016 included gains on investments and mark-to-market gains on derivatives used as economic hedges of share-based compensation, partly offset by mark-to-market losses on derivatives used as economic hedges of U.S. dollar purchases and early debt redemption costs.

2.11 Income taxes

Income taxes of $263 million in the first quarter of 2017 increased by $4 million, compared to the same period last year, due mainly to a lower value of uncertain tax positions favourably resolved in Q1 2017 compared to Q1 2016, partly offset by lower taxable income.

2.12 Net earnings attributable to common shareholders and EPS

Net earnings attributable to common shareholders of $679 million in the first quarter of 2017 decreased by $28 million, compared to the same period last year, due mainly to increased severance, acquisition and other costs related to the acquisition of MTS as higher adjusted EBITDA was offset by increased amortization and finance costs.

BCE’s EPS of $0.78 in Q1 2017 decreased by $0.04 compared to the same period last year. The average number of BCE common shares outstanding increased as a result of shares issued for the acquisition of MTS in March 2017 which further diluted EPS as compared to Q1 2016.

Excluding the impact of severance, acquisition and other costs, net (losses) gains on investments, impairment charges, and early debt redemption costs, adjusted net earnings in the first quarter of 2017 was $758 million, or $0.87 per common share, compared to $734 million, or $0.85 per common share, for the same period last year.

10     BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT
	3	Business segment analysis Bell Wireless	MD&A

3 Business segment analysis

3.1 Bell Wireless

Key business developments

LTE-A NETWORK EXPANSION

Bell continued the rollout of its Dual-band LTE Advanced (LTE-A) wireless network, now providing service to 74% of the Canadian population at data speeds of up to 260 Megabits per second (Mbps) (expected average download speeds of 18 to 74 Mbps), with plans to cover approximately 87% of the Canadian population by the end of 2017 up from our previous estimate of 83% due to the inclusion of Manitoba as a result of BCE’s acquisition of MTS.

In addition, Tri-band LTE-A wireless service, enabled by aggregating Personal Communications Services (PCS), Advanced Wireless Services-1 (AWS-1) and 700 Megahertz (MHz) spectrum, that delivers mobile data speeds of up to 335 Mbps when using compatible devices (expected average download speeds of 25 to 100 Mbps) is available in a number of cities and areas, including Halifax, Fredericton, Moncton, Saint John, Sydney, St. John’s, Toronto, Hamilton, Oakville, London, Kitchener-Waterloo, Niagara Falls, Muskoka Lakes, Sudbury, Sarnia, Trois-Rivières and Chicoutimi.

Bell has also begun to roll out four-carrier aggregation in select areas, which enables data speeds up to 560 Mbps (expected average download speeds of 41 to 166 Mbps). More than 500 sites in select markets are already enabled, including Moncton, Fredericton, Saint John, Halifax, St. John’s, London, Waterloo, Guelph, Hamilton, and Burlington.

LTE-A is complemented by our national Fourth Generation (4G) LTE mobile network, reaching 98% of Canadians at the end of Q1 2017 and offering data speeds ranging from 75 Mbps to 150 Mbps (expected average download speeds of 12 to 40 Mbps).

MOBILE DEVICE LINEUP EXPANDED

Bell Mobility Inc. (Bell Mobility) and Virgin Mobile Canada (Virgin Mobile) continued to bring customers the latest in wireless devices with the introduction of a number of new 4G LTE smartphones and other devices from leading handset manufacturers, including the Samsung Galaxy S8 and S8+ smartphones, the special edition Red iPhone 7 and iPhone 7 Plus and the new iPad from Apple, the LG G6 and LG V20 smartphones, and the Samsung Galaxy A5 smartphone.

Financial performance analysis

Q1 2017 PERFORMANCE HIGHLIGHTS

(1) As a result of the acquisition of MTS on March 17, 2017, our wireless subscriber base increased by 476,932 subscribers (418,427 postpaid). Subsequent to Q1 2017, as part of a consent agreement with the Competition Bureau, on April 1, 2017, BCE divested approximately one-quarter of the acquired MTS postpaid wireless subscribers to TELUS.

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3	Business segment analysis Bell Wireless	MD&A

BELL WIRELESS RESULTS

REVENUES

	Q1 2017	Q1 2016	$ CHANGE		% CHANGE
External service revenues	1,705	1,579	126		8.0%
Inter-segment service revenues	10	9	1		11.1%
Total operating service revenues	1,715	1,588	127		8.0%
External product revenues	99	104	(5	)	(4.8%	)
Inter-segment product revenues	–	1	(1	)	(100.0%	)
Total operating product revenues	99	105	(6	)	(5.7%	)
Total Bell Wireless revenues	1,814	1,693	121		7.1%

Bell Wireless operating revenues grew by 7.1% in the first quarter of 2017, compared to the same period last year, as a result of higher service revenues, partly offset by lower product revenues.

• Service revenues were up 8.0% in Q1 2017, compared to the prior year, driven by a larger postpaid subscriber base along with blended ARPU growth and the favourable contribution as a result of the acquisition of MTS on March 17, 2017. The increase in blended ARPU reflected higher average monthly rates due to the flow-though of 2016 industry pricing initiatives, growth in the proportion of postpaid subscribers in our total customer base, as well as greater smartphone penetration and a growing base of postpaid LTE and LTE-A customers in our subscriber mix which continued to drive greater data consumption. The year-over-year growth in service revenues was moderated in part by the unfavourable impact of Telecom Decision CRTC 2016-171 and the increased adoption of all-inclusive rate plans generating lower out of bundle usage.
• Product revenues decreased by 5.7% in the first quarter of 2017, compared to Q1 2016, primarily due to greater promotional offers due to a competitive marketplace, partially offset by higher gross activations and upgrades along with a greater proportion of more expensive smartphone devices in our sales mix

OPERATING COSTS AND ADJUSTED EBITDA

	Q1 2017		Q1 2016		$ CHANGE		% CHANGE
Operating costs	(996	)	(932	)	(64	)	(6.9%	)
Adjusted EBITDA	818		761		57		7.5%
Total adjusted EBITDA margin	45.1	%	44.9	%			0.2%
Adjusted EBITDA margin (service revenues)	47.7	%	47.9	%			(0.2%	)

Bell Wireless operating costs increased by 6.9% in Q1 2017, compared to Q1 2016, as a result of:

• Higher customer retention spending mainly attributable to greater promotional pricing due to a competitive market coupled with a greater proportion of premium smartphone devices in our upgrade mix
• Increased subscriber acquisition costs driven by higher year-over-year gross activations, higher sales of more expensive smartphones, greater promotional pricing due to a competitive marketplace and a larger proportion of postpaid gross activations in our activation mix
• Higher network operating costs relating to the expansion of network capacity to support subscriber growth
• Higher labour costs to support the growth in the business
• The acquisition of MTS on March 17, 2017

Bell Wireless adjusted EBITDA was up 7.5% in the first quarter of 2017, compared to the same period last year, as the higher operating revenues driven by the continued growth in our customer base and blended ARPU more than offset the year-over-year increase in operating expenses driven by our greater investment in customer retention and acquisition. This corresponded to a modest decrease to adjusted EBITDA margin, based on wireless operating service revenues, of 47.7% this quarter compared to 47.9% achieved last year.

12     BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT
	3	Business segment analysis Bell Wireless	MD&A

BELL WIRELESS OPERATING METRICS

	Q1 2017		Q1 2016		CHANGE		% CHANGE
Blended ARPU ($/month)	65.66		63.02		2.64		4.2%
Gross activations	348,452		331,623		16,829		5.1%
Postpaid	296,616		275,415		21,201		7.7%
Prepaid	51,836		56,208		(4,372	)	(7.8%	)
Net activations (losses)	672		(9,868	)	10,540		106.8%
Postpaid	35,782		25,805		9,977		38.7%
Prepaid	(35,110	)	(35,673	)	563		1.6%
Blended churn % (average per month)	1.36	%	1.38	%			0.02%
Postpaid	1.17	%	1.15	%			(0.02%	)
Prepaid	3.29	%	3.42	%			0.13%
Subscribers(1)	8,946,476		8,235,963		710,513		8.6%
Postpaid(1)	8,144,936		7,401,221		743,715		10.0%
Prepaid	801,540		834,742		(33,202	)	(4.0%	)

(1) As a result of the acquisition of MTS on March 17, 2017, our wireless subscriber base increased by 476,932 subscribers (418,427 postpaid). Subsequent to Q1 2017, as part of a consent agreement with the Competition Bureau, on April 1, 2017, BCE divested approximately one-quarter of the acquired MTS postpaid wireless subscribers to TELUS.

Blended ARPU of $65.66 increased by 4.2% in Q1 2017 compared to Q1 2016. The increase was driven by growth in postpaid ARPU as a result of the flow-through of 2016 industry pricing initiatives, growth in the proportion of postpaid subscribers in our total customer base, and a greater mix of postpaid customers with smartphones and other data devices in our total customer base, resulting in greater data consumption from e-mail, web browsing, social networking, mobile banking, text messaging, mobile TV, picture and video messaging, as well as entertainment services such as video streaming, music downloads and gaming. The higher speeds enabled by the continued expansion of our 4G LTE and LTE-A networks also drove greater data consumption which further contributed to the growth in blended ARPU. This was moderated by the negative impact of Telecom Decision CRTC 2016-171 along with the unfavourable impact of richer 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 5.1% in the first quarter of 2017, compared to the same period last year, reflecting a higher number of postpaid gross activations, while prepaid gross activations declined year over year.

• Postpaid gross activations increased by 7.7%, year over year, reflecting the continued effectiveness of our promotional activities despite ongoing competitive pressures and a maturing wireless market.
• Prepaid gross activations decreased by 7.8% in the first quarter of 2017, due to our continued focus on postpaid customer acquisitions

Blended wireless churn improved by 0.02% in Q1 2017, compared to the prior year, reflecting lower prepaid churn while postpaid churn was slightly higher year over year.

• Postpaid churn deteriorated by 0.02% in the first quarter of 2017 to 1.17%, compared to 1.15% in Q1 2016, due primarily to higher business customer deactivations, offset in part by the positive impact of our ongoing investment in customer retention
• Prepaid churn improved by 0.13% in Q1 2017, compared to last year, to 3.29%, as a result of fewer customer deactivations compared to Q1 2016

Postpaid net activations increased by 38.7% in the first quarter of 2017, compared to last year, due to higher gross activations offset partly by higher customer deactivations.

Prepaid net customer losses improved by 1.6% in Q1 2017, compared to last year, driven by fewer customer deactivations, partially offset by lower gross activations.

Wireless subscribers totalled 8,946,476 at March 31, 2017, including 476,932 subscribers acquired on March 17, 2017 from MTS, representing an increase of 8.6% since the end of the first quarter of 2016. As part of a consent agreement with the Competition Bureau, on April 1, 2017 we divested approximately one-quarter of the acquired MTS postpaid wireless subscribers to TELUS. The proportion of Bell Wireless customers subscribing to postpaid service increased to 91% in Q1 2017 from 90% in Q1 2016.

			BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT    13
3	Business segment analysis Bell Wireless	MD&A

Assumptions

As at the date of this MD&A, our forward-looking statements set out in the BCE 2016 Annual MD&A, as updated or supplemented in this MD&A, are based on certain assumptions including, without limitation, the following assumptions and the assumptions referred to in each of the other business segment discussions set out in this section 3, Business segment analysis, as well as the economic and market assumptions referred to in section 1.3, Assumptions, of this MD&A.

• Maintain our market share of incumbent wireless postpaid subscriber activations
• Continued adoption of smartphone devices, tablets and data applications, as well as the introduction of more 4G LTE 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 from price increases
• Completion of the LTE network buildout to 99% of the Canadian population and expansion of the LTE-A network coverage to approximately 87% of the Canadian population, including Manitoba
• 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

14     BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT
	3	Business segment analysis Bell Wireline	MD&A

3.2 Bell Wireline

Key business developments

CITY OF MONTRÉAL FIBRE INFRASTRUCTURE BUILDOUT

On March 27, 2017, Bell announced that it will invest a further $854 million to bring direct fibre links and the fastest Internet speeds available to 1.1 million residences and business locations throughout Montréal. The $854 million investment will be fully funded by Bell and represents 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 fibre-to-the-premise (FTTP) connections. Bell’s broadband FTTP network enables the Gigabit Fibe Internet service that is already available in several thousand locations in Montréal. Gigabit Fibe currently delivers download speeds of up to a full Gigabit per second (Gbps) with the flexible nature of fibre technology that will enable the delivery of Internet access speeds of up to 10 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. By the end of the year, Bell fibre is expected to reach approximately 40% of homes and businesses throughout the province of Québec.

BELL NAMED A LEADER IN CANADIAN SECURITY SERVICES MARKET

In February 2017, International Data Corporation (IDC) Canada named Bell a leader in delivering security services for business customers. Bell is the only telecom company in IDC’s Leaders Category, which includes 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.

Financial performance analysis

Q1 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), 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.

			BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT    15
3	Business segment analysis Bell Wireline	MD&A

BELL WIRELINE RESULTS

REVENUES

	Q1 2017	Q1 2016	$ CHANGE		% CHANGE
Data	1,707	1,657	50		3.0%
Local and access	775	789	(14	)	(1.8%	)
Long distance	168	191	(23	)	(12.0%	)
Other services	44	47	(3	)	(6.4%	)
Total external service revenues	2,694	2,684	10		0.4%
Inter-segment service revenues	49	39	10		25.6%
Total operating service revenues	2,743	2,723	20		0.7%
Data	123	137	(14	)	(10.2%	)
Equipment and other	111	121	(10	)	(8.3%	)
Total external product revenues	234	258	(24	)	(9.3%	)
Inter-segment product revenues	3	2	1		50.0%
Total operating product revenues	237	260	(23	)	(8.8%	)
Total Bell Wireline revenues	2,980	2,983	(3	)	(0.1%	)

Bell Wireline operating revenues remained relatively stable year over year with a 0.1% decline in Q1 2017 compared to Q1 2016, as decreases in local and access, long distance, other services and product revenues, were largely offset by growth in data service revenue.

Bell Wireline service revenues increased by 0.7% in the first quarter of 2017, compared to the same period last year, and improved significantly over the 1.3% decline experienced in Q1 2016, despite significant regulatory pressures due to the unfavourable CRTC rulings from 2016 relating to Internet tariffs for aggregated wholesale high-speed access services and Telecom Decision 2016-171. The year-over-year increase in service revenues was driven by continued Internet and IPTV subscriber growth together with higher household ARPU due in part to residential rate increases, moderated by greater acquisition and retention discounts driven by aggressive offers from cable competitors. The acquisitions of Q9 in the fourth quarter of 2016 and MTS on March 17, 2017 also contributed to service revenue growth, offset in part by the ongoing erosion in our voice and legacy data services and a declining satellite TV subscriber base.

• Data revenues increased by 3.0% in the first quarter of 2017, compared to Q1 2016, as a result of Internet and IPTV subscriber growth and rate increases, higher business solutions services revenue due in part to the acquisition of Q9, growth in IP-based services and the contribution from Bell MTS. This was moderated by the unfavourable impact of the CRTC regulatory rulings from 2016 relating to lower revised interim rates, effective October 2016, for aggregated wholesale high-speed Internet access services as well as relating to Telecom Decision 2016-171. The continued erosion in legacy data, a declining satellite TV subscriber base and greater retention and acquisition discounts on residential TV and Internet services due to aggressive offers from cable competitors, also moderated the growth in data revenues.
• Local and access revenues declined by 1.8% in Q1 2017, compared to the first quarter of 2016, driven by ongoing NAS line erosion due to technological substitution to wireless and Internet-based services and large business customer conversions to IP-based data services, as well as the unfavourable impact from Telecom Decision 2016-171, which was moderated by residential rate increases and the contribution of Bell MTS
• Long distance revenues decreased by 12.0% in Q1 2017, compared to Q1 2016, resulting from fewer minutes of use by residential and business customers, driven by NAS line erosion, technology substitution to wireless and over-the-top (OTT) Internet-based services, ongoing rate pressures in our residential market from customer adoption of premium rate plans and lower sales of international long distance minutes in our wholesale market

Product operating revenue declined by 8.8% in the first quarter of 2017, compared to Q1 of the prior year, attributable to lower demand from large business customers for data and voice equipment due to a slowing economy and competitive pressures in our wholesale market.

OPERATING COSTS AND ADJUSTED EBITDA

	Q1 2017		Q1 2016		$ CHANGE	% CHANGE
Operating costs	(1,718	)	(1,726	)	8	0.5%
Adjusted EBITDA	1,262		1,257		5	0.4%
Adjusted EBITDA margin	42.3	%	42.1	%		0.2%

Bell Wireline operating costs decreased by $8 million, or 0.5%, in the first quarter of 2017 compared to Q1 2016 driven by:

• Lower labour costs due to workforce reductions and vendor contract savings
• Decreased cost of goods sold consistent with lower product sales
• Lower bad debt expense

These factors were partially offset by:

• Increased marketing and sales spend in our retail market to support subscriber acquisition
• Increased network repairs and maintenance costs driven by a winter storm in Atlantic Canada
• Higher operating costs as a result of the acquisitions of Q9 and MTS

16     BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT
	3	Business segment analysis Bell Wireline	MD&A

Bell Wireline adjusted EBITDA increased by 0.4% in Q1 2017, compared to the same period last year, with a corresponding adjusted EBITDA margin improvement to 42.3% compared to 42.1% achieved in Q1 2016. The year-over-year increase in adjusted EBITDA reflected:

• The continued growth from our Internet and IPTV businesses in a highly competitive market
• Ongoing effective cost containment
• The contribution from the Q9 and MTS acquisitions

These factors were partially offset by:

• Unfavourable CRTC regulatory rulings from 2016 relating to Internet tariffs for aggregated wholesale high-speed access services and Telecom Decision 2016-171
• Ongoing decline of satellite TV revenues and of higher margin voice and legacy data revenues, including continued re-pricing pressures and market softness in our business market

BELL WIRELINE OPERATING METRICS

Data

High-speed Internet

	Q1 2017	Q1 2016	CHANGE		% CHANGE
High-speed Internet net activations	14,989	19,783	(4,794	)	(24.2%	)
High-speed Internet subscribers(1) (2)	3,717,270	3,411,246	306,024		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 have adjusted our high-speed Internet subscriber base at the beginning of Q1 2017 to remove 3,751 non-revenue generating units.

High-speed Internet subscriber net activations declined by 24.2% in Q1 2017, compared to Q1 2016, from higher retail residential churn driven by increasingly aggressive offers from cable competitors. This was partly mitigated by higher activations from the launch of Home Internet service in the second half of 2016 by Virgin Mobile, the favourable impact of higher pull-through of our IPTV service bundle offers, increased retail activations in our fibre-to-the-home (FTTH) footprint, higher wholesale residential net activations and modest growth from our business market.

High-speed Internet subscribers at March 31, 2017 totalled 3,717,270, including 229,470 subscribers acquired from MTS, up 9.0% from the end of Q1 2016. 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.

TV

	Q1 2017		Q1 2016	CHANGE		% CHANGE
Net subscriber (losses) activations	(15,663	)	9,999	(25,662	)	(256.6%	)
IPTV	22,402		47,740	(25,338	)	(53.1%	)
Total subscribers(1)	2,837,353		2,748,495	88,858		3.2%
IPTV(1)	1,465,007		1,230,531	234,476		19.1%

(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 53.1% in the first quarter of 2017, compared to the same period last year, driven by a higher number of retail customers coming off promotional offers, aggressive offers from the cable competitors for service bundles, the impact of maturing Fibe TV markets, and slower IPTV footprint expansion in 2017.

Satellite TV net customer losses increased by 0.9% in Q1 2017, compared to the first quarter of 2016, attributable to lower residential activations, driven by aggressive promotional offers from cable competitors, particularly in areas where Fibe TV services are not available, mitigated in part by lower customer losses in our small business market.

Total TV net subscriber activations (IPTV and satellite TV combined) declined by 25,662 in Q1 2017, compared to Q1 of the prior year, due to lower IPTV net activations and higher satellite TV net losses, as described above.

IPTV subscribers at March 31, 2017 totalled 1,465,007, including 104,661 subscribers acquired from MTS, up 19.1% from 1,230,531 subscribers reported at the end of Q1 2016.

Satellite TV subscribers at March 31, 2017 totalled 1,372,346, including 3,446 subscribers acquired from MTS, down 9.6% from 1,517,964 subscribers at the end of Q1 of last year.

Total TV subscribers (IPTV and satellite TV combined) at March 31, 2017 were 2,837,353, including 108,107 subscribers acquired from MTS, representing a 3.2% increase since the end of the first quarter of 2016.

			BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT    17
3	Business segment analysis Bell Wireline	MD&A

Local and access

	Q1 2017		Q1 2016		CHANGE		% CHANGE
NAS LINES
Residential(1)	3,399,981		3,466,304		(66,323	)	(1.9%	)
Business(1)	3,174,293		3,099,204		75,089		2.4%
Total	6,574,274		6,565,508		8,766		0.1%
NAS NET LOSSES
Residential	(73,421	)	(67,428	)	(5,993	)	(8.9%	)
Business	(29,853	)	(40,204	)	10,351		25.7%
Total	(103,274	)	(107,632	)	4,358		4.0%

(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).

NAS net losses improved by 4.0% in Q1 2017, compared to Q1 2016, due to lower business net losses, partly offset by higher residential net losses.

Residential NAS net losses grew by 8.9% in Q1 2017, compared to the first quarter of 2016, as a result of aggressive competitive offers from cable TV providers, ongoing wireless and Internet-based technology substitution, as well as a greater number of retail customers coming off promotional offers. This was moderated by higher activations driven by greater pull-through from our IPTV service bundle offers and greater acquisition of three-product households.

Business NAS net losses improved by 25.7% in Q1 2017, compared to Q1 2016, driven by fewer competitive losses in our large business market, and higher activations in our small business market. This was offset in part by greater customer migrations to IP-based services, and reduced demand for new access lines from large business customers resulting from a slowing economy.

NAS subscribers at March 31, 2017 totalled 6,574,274, including 419,816 subscribers acquired from MTS, up 0.1% from 6,565,508 subscribers reported at the end of Q1 2016, compared to a subscriber base erosion of 6.4% experienced in the first quarter of 2016.

Assumptions

As at the date of this MD&A, our forward-looking statements set out in the BCE 2016 Annual MD&A, as updated or supplemented in this MD&A, are based on certain assumptions including, without limitation, the following assumptions and the assumptions referred to in each of the other business segment discussions set out in this section 3, Business segment analysis, as well as the economic and market assumptions referred to in section 1.3, Assumptions, of this MD&A.

• 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
• 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
• TV unbundling will not materially accelerate the downsizing of TV packages by customers
• 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
• Softer wholesale financial performance due to a CRTC decision in October 2016 that significantly lowered capacity-based billing rates for aggregated wholesale high-speed Internet access services
• No other changes in regulations affecting our wireline business having material financial, operational or competitive consequences

18     BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT
	3	Business segment analysis Bell Media	MD&A

3.3 Bell Media

Key business developments

BELL MEDIA LEADERSHIP CHANGES

On February 27, 2017, Randy Lennox was appointed the new President of Bell Media following the departure of Mary Ann Turcke for a new opportunity with the NFL. As President of Bell Media, Mr. Lennox leads all strategy and operations for Canada’s largest media company, including conventional, pay and specialty TV, radio, digital media, OOH advertising and special projects. Mr. Lennox was promoted from his position as Bell Media’s President, Content and Broadcasting, responsible for the CTV Networks; all local radio and TV assets; English-language specialty channels, all of Bell Media’s in-house and independent English-language content productions; and iHeartRadio Canada, the international brand brought to Bell Media in 2016.

BELL MEDIA RECOGNIZED FOR EXCELLENCE IN PROGRAMMING

Bell Media and its production partners were honoured with 53 awards by the Academy of Canadian Cinema and Television at the recent annual Canadian Screen Awards, which recognizes excellence in Canadian film, TV and digital media productions. Showcasing its growing commitment to creating and developing exceptional original Canadian content, Bell Media and its partners took home 35 TV awards, with wins in major categories including Best Dramatic Series, Best Comedy Series, Best Reality/Competition Program or Series, Best Music Program or Series, Best Talk Program or Series, and Best News or Information Program. TSN garnered a total of four awards, more than all other sports broadcasters, including Best Direction in a Live Sporting Event for the 2016 Grey Cup. Bell Media-supported film projects won 18 awards, including Best Motion Picture, Best Direction, Best Performance by an Actress in a Leading Role, and Best Original Screenplay.

EXTENSION OF NASCAR MEDIA RIGHTS

Bell Media 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. TSN and RDS will continue to broadcast all races, including exclusive Canadian coverage of the Daytona 500. 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.

Financial performance analysis

Q1 2017 PERFORMANCE HIGHLIGHTS

BELL MEDIA RESULTS

REVENUES

	Q1 2017	Q1 2016	$ CHANGE	% CHANGE
Total external revenues	652	645	7	1.1%
Inter-segment revenues	99	96	3	3.1%
Total Bell Media revenues	751	741	10	1.3%

Bell Media operating revenues increased by 1.3% in Q1 2017, compared to the same period in 2016, reflecting higher subscriber revenues moderated by a decline in advertising revenues.

Subscriber revenues were up in Q1 2017, compared to the same period last year, as Bell Media continued to benefit from the expansion of TMN into a national pay TV service in March 2016, increased revenues from contract renewals with BDUs and higher revenues from CraveTV and our TV Everywhere Go Products driven by subscriber growth.

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3	Business segment analysis Bell Media	MD&A

Advertising revenues decreased in Q1 2017, compared to the same period last year, driven by:

• Lower conventional TV advertising revenues due to the negative impact of the CRTC’s decision to eliminate simultaneous substitution for the NFL Super Bowl
• Overall market softness unfavourably impacting both TV and radio advertising

This was partly offset by:

• Higher OOH advertising revenues as a result of the Cieslok Media acquisition in January 2017 and the positive contribution from contracts secured in 2016

OPERATING COSTS AND ADJUSTED EBITDA

	Q1 2017		Q1 2016		$ CHANGE		% CHANGE
Operating costs	(617	)	(596	)	(21	)	(3.5%	)
Adjusted EBITDA	134		145		(11	)	(7.6%	)
Adjusted EBITDA margin	17.8	%	19.6	%			(1.8%	)

Bell Media operating costs increased by 3.5% in Q1 2017, in comparison to the same period in 2016, due to higher programming and content costs associated with the TMN national expansion and continued ramp-up in CraveTV, higher cost of sports broadcast rights and an increase in expenses related to the Cieslok Media acquisition and OOH contracts awarded in 2016. This increase in operating costs was partially mitigated by reduced labour costs.

Bell Media adjusted EBITDA decreased by 7.6% in Q1 2017, compared to Q1 2016, due to the flow-through of advertising revenue pressure, including the impact of the CRTC’s decision to eliminate simultaneous substitution for the NFL Super Bowl. The higher content costs to secure TV programming also unfavourably impacted adjusted EBITDA. This was moderated by growth in subscriber revenues.

BELL MEDIA OPERATING METRICS

• CTV was the top ranked network in Canada for the 13th consecutive winter season among total viewers and in all key adult demographics in primetime, with nine of the top 20 programs among total viewers and ten of the top 20 programs in all key adult demographics.
• Bell Media’s English specialty and pay TV properties reached 81% of all Canadian English specialty and pay TV viewers in the average week. Four of the top 10 English specialty and pay TV channels among viewers aged 25 to 54 were Bell Media properties (TSN, Discovery, Space and TMN).
  Bell Media had nine of the top 20 programs for Canadian English entertainment specialty and pay TV channels among overall viewers and the key viewers aged 18 to 49 and aged 25 to 54.
• In Québec, Bell Media maintained its leadership position in the French specialty and pay TV markets, reaching 77% of French-language TV viewers in the average week. Three of the top five specialty and pay TV channels among the key viewers aged 25 to 54 were Bell Media properties (RDS, Super Écran and Canal D).
• Bell Media continued to rank first in digital media among Canadian broadcast and video network competitors, reaching a record 62% of the digital audience with an average of 19 million unique visitors per month, 851 million minutes spent and 48 million videos viewed
• Bell Media is Canada’s top radio broadcaster, reaching over 16.7 million listeners who spent over 75 million hours tuned in each week
• Astral Out-of-Home (AOOH) is a key player in the market with an offering of five innovative product lines and more than 31,000 advertising faces located coast to coast, from Halifax to Vancouver, and strategic sites in Montréal, Ottawa, Toronto, Vancouver, Calgary and Edmonton

Assumptions

As at the date of this MD&A, our forward-looking statements set out in the BCE 2016 Annual MD&A, as updated or supplemented in this MD&A, are based on certain assumptions including, without limitation, the following assumptions and the assumptions referred to in each of the other business segment discussions set out in this section 3, Business segment analysis, as well as the economic and market assumptions referred to in section 1.3, Assumptions, of this MD&A.

• Higher year-over-year revenue, reflecting further CraveTV subscriber growth, TMN’s national expansion that began in March 2016, and growth in outdoor advertising supported by acquisitions and new contract wins
• 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 moderately lower subscriber levels for many Bell Media TV properties
• No material financial, operational or competitive consequences of changes in regulations affecting our media business

20     BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT
	4	Financial and capital management	MD&A

4 Financial and capital management

This section describes 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.

4.1 Net debt⁽¹⁾

	MARCH 31, 2017		DECEMBER 31, 2016		$ CHANGE	% CHANGE
Debt due within one year	6,306		4,887		1,419	29.0%
Long-term debt	17,757		16,572		1,185	7.2%
Preferred shares(2)	2,002		2,002		–	–
Cash and cash equivalents	(510	)	(853	)	343	40.2%
Net debt	25,555		22,608		2,947	13.0%

(1)	Net debt is a non-GAAP financial measure and does not have a standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers. See section 8.2, Non-GAAP financial measures and key performance indicators (KPIs) – Net debt in this MD&A for more details, including a reconciliation to the most comparable IFRS financial measure.
(2)	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 $2,604 million in total debt comprised of debt due within one year and long-term debt was due to:

• the issuance of Series M-44 MTN and M-45 MTN debentures at Bell Canada with total principal amounts of $1 billion and $500 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 $308 million
• an increase in our loans secured by trade receivables of $350 million

Partly offset by:

• the repayment of borrowings under our unsecured committed term credit facility of $480 million
• a net decrease of $46 million in our finance lease obligations and other debt

The decrease in cash and cash equivalents of $343 million was due mainly to free cash flow of $489 million and $1,550 million of debt issuance (net of repayments), partly offset by $1,635 million paid for business acquisitions mainly related to the acquisitions of MTS and Cieslok Media, dividends paid on BCE common shares of $594 million, $96 million paid for the purchase on the open market of shares for the settlement of share-based payments and $83 million acquisition and other costs paid.

4.2 Outstanding share data

COMMON SHARES OUTSTANDING	NUMBER OF SHARES
Outstanding, January 1, 2017	870,706,332
Shares issued under employee stock option plan	1,102,575
Shares issued under employee savings plan (ESP)	80,039
Shares issued for the acquisition of MTS	27,642,714
Outstanding, March 31, 2017	899,531,660

STOCK OPTIONS OUTSTANDING	NUMBER OF OPTIONS		WEIGHTED AVERAGE EXERCISE PRICE ($)
Outstanding, January 1, 2017	10,242,162		52
Granted	2,976,722		59
Exercised(1)	(1,102,575	)	47
Forfeited	(166,133	)	57
Outstanding, March 31, 2017	11,950,176		54
Exercisable, March 31, 2017	3,467,271		45

(1) The weighted average share price for options exercised during the quarter was $58.

			BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT    21
4	Financial and capital management	MD&A

4.3 Cash flows

	Q1 2017		Q1 2016		$ CHANGE		% CHANGE
Cash flows from operating activities	1,313		1,290		23		1.8%
Capital expenditures	(852	)	(852	)	–		–
Cash dividends paid on preferred shares	(43	)	(36	)	(7	)	(19.4%	)
Cash dividends paid by subsidiaries to NCI	(12	)	(12	)	–		–
Acquisition and other costs paid	83		28		55		n.m.
Free cash flow	489		418		71		17.0%
Business acquisitions	(1,635	)	(245	)	(1,390	)	n.m.
Acquisition and other costs paid	(83	)	(28	)	(55	)	n.m.
Business dispositions	–		16		(16	)	(100.0%	)
Other investing activities	(9	)	35		(44	)	n.m.
Net issuance of debt instruments	1,550		162		1,388		n.m.
Issue of common shares	48		73		(25	)	(34.2%	)
Repurchase of shares for settlement of share-based payments	(96	)	(68	)	(28	)	(41.2%	)
Cash dividends paid on common shares	(594	)	(526	)	(68	)	(12.9%	)
Other financing activities	(13	)	(27	)	14		51.9%
Net decrease in cash and cash equivalents	(343	)	(190	)	(153	)	(80.5%	)

n.m.:   not meaningful

Cash flows from operating activities and free cash flow

Cash flows from operating activities in the first quarter of 2017 increased by $23 million, compared to Q1 2016, due to higher adjusted EBITDA and lower severance and other costs paid, partly offset by higher acquisition and other costs paid and higher income taxes paid.

Free cash flow in Q1 2017 increased by $71 million, compared to the same period last year, due to an increase in cash flows from operating activities excluding acquisition and other costs paid.

Capital expenditures

	Q1 2017		Q1 2016		$ CHANGE		% CHANGE
Bell Wireless	136		162		26		16.0%
Capital intensity ratio	7.5	%	9.6	%			2.1%
Bell Wireline	691		669		(22	)	(3.3%	)
Capital intensity ratio	23.2	%	22.4	%			(0.8%	)
Bell Media	25		21		(4	)	(19.0%	)
Capital intensity ratio	3.3	%	2.8	%			(0.5%	)
BCE	852		852		–		–
Capital intensity ratio	15.8	%	16.2	%			0.4%

BCE capital expenditures of $852 million in Q1 2017 was comparable to the same period last year as the higher investment in our wireline segment was largely offset by lower spending in our wireless segment. Capital expenditures as a percentage of revenue (capital intensity ratio) was 15.8% in Q1 2017, compared to 16.2% in Q1 2016. Capital expenditures reflected:

• Higher wireline capital spending of $22 million compared to last year, as we continue to focus on expanding our broadband fibre directly to more homes and businesses, including the rollout of Gigabit Fibe infrastructure in the city of Toronto and other urban locations. Additionally, the increase in capital expenditures included greater investment to support the execution of business customer contracts and the impact of the Bell MTS acquisition.
• Lower wireless capital investment of $26 million compared to Q1 2016, driven primarily by the slower pace of spending as we continue to roll-out our 4G LTE mobile network as well as our LTE-A mobile network which reached 74% of the Canadian population at March 31, 2017. The deployment of small-cell technology to optimize coverage, signal quality and data capacity and increased network capacity to support subscriber growth and accelerating data consumption were also a focus of our wireless capital investments

22     BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT
	4	Financial and capital management	MD&A

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.

In Q1 2016, BCE completed the transaction with Corus Entertainment Inc. (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.

Debt instruments

2017

In the first quarter of 2017, we issued $1,550 million of debt, net of repayments. This included the issuance of Series M-44 and M-45 MTN debentures at Bell Canada with principal amounts of $1 billion and $500 million, respectively, an increase in our loans secured by trade receivables of $350 million and the issuance (net of repayments) of $308 million of notes payable. These issuances were partly offset by the repayment of borrowings under our unsecured committed term credit facility of $480 million and payments of finance leases and other debt of $128 million.

2016

In the first quarter of 2016, we issued $162 million of debt, net of repayments. This included the issuance of Series M-41 MTN debentures at Bell Canada with a principal amount of $750 million as well as $725 million issuances of notes payable (net of repayments), partly offset by the early debt redemption of Series M-19 MTN, Series M-23 MTN and Series M-32 debentures, with a principal amount of $200 million, $500 million and $500 million, respectively, and payments of finance leases and other debt of $113 million.

Cash dividends paid on common shares

In the first quarter of 2017, cash dividends paid on common shares increased by $68 million compared to Q1 2016, due to a higher dividend paid in Q1 2017 of $0.6825 per common share compared to $0.65 per common share in Q1 2016.

4.4 Post-employment benefit plans

For the three months ended March 31, 2017, we recorded an increase in our post-employment benefit obligations and a loss, before taxes and NCI, in OCI of $442 million. This was due to a lower actual discount rate of 3.8% at March 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 three months ended March 31, 2016, we recorded an increase in our post-employment benefit obligations and a loss, before taxes and NCI, in OCI of $924 million. This was due to a lower actual discount rate of 3.9% at March 31, 2016, compared to 4.2% at December 31, 2015, and a lower-than-expected return on plan assets.

4.5 Financial risk management

Fair value

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

			MARCH 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	155	158	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	134	142	136	145
Debentures, 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	19,590	21,892	17,879	20,093

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4	Financial and capital management	MD&A

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

				FAIR VALUE
	CLASSIFICATION	CARRYING VALUE OF ASSET (LIABILITY)		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)	OBSERVABLE MARKET DATA (LEVEL 2)(1)	NON-OBSERVABLE MARKET INPUTS (LEVEL 3)(2)
March 31, 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	164		–	164	–
MLSE financial liability(4)	Trade payables and other liabilities	(135	)	–	–	(135	)
Other	Other non-current assets and liabilities	38		–	92	(54	)
December 31, 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 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 Maple Leaf Sports & Entertainment Ltd. 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 income in the income statements.

Currency exposures

We use foreign currency forward contracts, options and cross currency basis swaps to manage foreign currency risk related to anticipated transactions and certain foreign currency debt. During Q1 2017, we settled a cross currency basis swap with a notional amount of $357 million in U.S. dollars used to hedge the U.S. currency exposure under a credit facility. Refer to note 9, Debt, in BCE’s Q1 2017 Financial Statements.

A 10% depreciation (appreciation) in the value of the Canadian dollar relative to the U.S. dollar would result in a gain (loss) of $32 million recognized in net earnings at March 31, 2017 and a gain (loss) of $94 million recognized in OCI at March 31, 2017, with all other variables held constant.

The following table provides further details on our outstanding foreign currency forward contracts, at March 31, 2017.

TYPE OF HEDGE	BUY CURRENCY	AMOUNTS TO RECEIVE	SELL CURRENCY	AMOUNTS TO PAY	MATURITY	HEDGED ITEM
Cash flow	USD	2,363	CAD	3,133	2017	Commercial paper
Cash flow	USD	344	CAD	442	2017	Purchase commitments
Cash flow	USD	627	CAD	818	2018	Purchase commitments
Economic	USD	390	CAD	524	2017	Purchase commitments

Interest rate exposures

A 1% increase (decrease) in interest rates would result in a decrease (increase) of $30 million and $27 million, respectively, in net earnings at March 31, 2017, with all other variables held constant.

Equity price exposure

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. The fair value of our equity forward contracts at March 31, 2017 was $126 million.

A 5% increase (decrease) in the market price of BCE’s common shares at March 31, 2017 would result in a gain (loss) of $37 million recognized in net earnings, with all other variables held constant.

24     BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT
	4	Financial and capital management	MD&A

4.6 Credit ratings

BCE’s and Bell Canada’s key credit ratings remain unchanged from those described in the BCE 2016 Annual MD&A.

4.7 Liquidity

Our cash requirements remain substantially unchanged from those described in the BCE 2016 Annual MD&A.

Litigation

RECENT DEVELOPMENTS IN LEGAL PROCEEDINGS

The following is an update to the legal proceedings described in the BCE 2016 AIF under section 8, Legal Proceedings.

IP INFRINGEMENT LAWSUITS CONCERNING IPTV SYSTEMS

On April 7, 2017, an out-of-court settlement was reached in respect of the claim filed on April 2, 2014 in the Federal Court against Bell Canada, Bell Aliant, Limited Partnership (now Bell Canada) and Telus Communications Company by Two-Way Media Ltd. Accordingly, this legal proceeding is now concluded.

Commitments (Off-balance sheet)

As a result of the acquisition of MTS, our commitments for operating leases and purchase obligations increased by approximately $180 million.

			BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT    25
5	Quarterly financial information	MD&A

5 Quarterly financial information

BCE’s Q1 2017 financial statements were prepared in accordance with IFRS, as issued by the International Accounting Standards Board (IASB), under International Accounting Standard (IAS) 34, Interim Financial Reporting and were approved by BCE’s board of directors on April 25, 2017.

The following table, which was also prepared in accordance with IFRS, shows selected consolidated financial data of BCE for the eight most recent completed quarters.

	2017		2016								2015
	Q1		Q4		Q3		Q2		Q1		Q4		Q3		Q2
Operating revenues
Service	5,051		5,169		5,025		4,988		4,908		5,053		4,934		4,926
Product	333		533		382		352		362		550		411		400
Total operating revenues	5,384		5,702		5,407		5,340		5,270		5,603		5,345		5,326
Adjusted EBITDA	2,214		2,121		2,236		2,268		2,163		2,073		2,187		2,197
Severance, acquisition and other costs	(84	)	(11	)	(25	)	(57	)	(42	)	(152	)	(46	)	(24	)
Depreciation	(722	)	(719	)	(706	)	(713	)	(739	)	(731	)	(727	)	(720	)
Amortization	(185	)	(165	)	(161	)	(156	)	(149	)	(136	)	(133	)	(134	)
Net earnings	725		699		800		830		758		542		791		814
Net earnings attributable to common shareholders	679		657		752		778		707		496		739		759
Net earnings per common share
Basic	0.78		0.75		0.87		0.89		0.82		0.58		0.87		0.90
Diluted	0.78		0.75		0.87		0.89		0.82		0.58		0.87		0.90
Included in net earnings attributable to common shareholders:
Severance, acquisition and other costs	(65	)	(9	)	(20	)	(44	)	(31	)	(112	)	(35	)	(16	)
Net (losses) gains on investments	(14	)	(1	)	(12	)	(2	)	12		(1	)	(16	)	40
Early debt redemption costs	–		–		–		–		(8	)	(6	)	–		–
Adjusted net earnings	758		667		784		824		734		615		790		735
Adjusted EPS	0.87		0.76		0.91		0.94		0.85		0.72		0.93		0.87
Average number of common shares outstanding – basic (millions)	875.7		870.5		869.9		869.1		867.1		853.5		848.9		844.9

26     BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT
	6	Regulatory environment	MD&A

6 Regulatory environment

The following is an update to the regulatory initiatives and proceedings described in the BCE 2016 Annual MD&A under section 3.3, Principal business risks and section 8, Regulatory environment.

Telecommunications Act

CRTC FRAMEWORK FOR ASSESSING DIFFERENTIAL PRICING PRACTICES OF INTERNET SERVICE PROVIDERS

On April 20, 2017, in Telecom Regulatory Policy CRTC 2017-104, the CRTC published a new framework for evaluating the use of differential pricing practices (DPPs) by Internet service providers (ISPs), including wireless service providers. The CRTC’s framework applies to zero-rating (or discounting) retail Internet data traffic. Practices associated with ISPs’ own managed Internet protocol (IP) networks are not included in the decision. The CRTC also refrained from regulating the use of data caps by wireline and wireless service providers. The CRTC’s new framework establishes a complaints-based process with criteria to evaluate whether the use of a specific DPP is providing an unfair advantage or disadvantage to certain content providers or consumers. DPPs that are found to provide such an advantage or disadvantage will be disallowed. The introduction of this new framework is not expected to have a material impact on our business, as DPPs are not prevalent in our current rate plans. However, this decision may limit the future diversity of competitive offerings from ISPs.

REVIEW OF BASIC TELECOMMUNICATIONS SERVICES

On April 6, 2017, the CRTC launched Telecom Notice of Consultation CRTC 2017-92, Call for comments – Phase-out of the local service subsidy regime, as anticipated in Telecom Regulatory Policy CRTC 2016-496. In this proceeding, the CRTC will determine how it will phase out existing subsidies that support the delivery of voice services in certain rural and remote areas. The phase-out of voice subsidies will impact us both as a contributor to and beneficiary of the subsidy regime. The ultimate extent of such impact cannot be determined at this time. However, it is not expected to be material.

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 notably mandates access over fibre-to-the-node (FTTN), to include FTTP facilities where FTTP is present but there is no FTTN available. FTTP services have, so far, been exempted from aggregated high-speed access obligations.

			BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT    27
7	Business risks	MD&A

7 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. Part of managing our business is to understand what these potential risks could be and to mitigate them where we can.

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.

In the BCE 2016 Annual MD&A we provided a detailed review of risks that could affect our financial position, financial performance, cash flows, business or reputation and that could cause actual results or events to differ materially from our expectations expressed in or implied by our forward-looking statements. This detailed description of risks is updated in this MD&A. The risks described in the BCE 2016 Annual MD&A, as updated in this MD&A, include, without limitation, risks associated with:

• 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, net neutrality, spectrum auctions, approval of acquisitions, broadcast licensing and foreign ownership requirements
• 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
• the adverse effect of the fundamental separation of content and connectivity, which is changing our 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 could drive significant increases in content acquisition costs and challenge our ability to secure key content
• 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 inability to protect our assets, including networks, IT systems, offices and sensitive information, from events and attacks such as cyber threats, and damage from fire and natural disasters
• the failure to optimize network and IT deployment and upgrading timelines, accurately assess the potential of new technologies, and invest and evolve in the appropriate direction
• the failure to continue investment 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 and 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

28     BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT
	7	Business risks	MD&A

• events affecting the continuity of supply of products and services that we need to operate our business from our third-party suppliers and outsourcers
• 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 our networks operational in the event of the occurrence 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

Please see section 9, Business risks of the BCE 2016 Annual MD&A for a more complete description of the above-mentioned and other risks, which section, and the other sections of the BCE 2016 Annual MD&A referred to therein, are incorporated by reference in this section 7.

In addition, please see section 4.7, Liquidity – Litigation in this MD&A for an update to the legal proceedings described in the BCE 2016 AIF, which section 4.7 is incorporated by reference in this section 7. Please also see section 6, Regulatory environment in this MD&A for an update to the regulatory initiatives and proceedings described in the BCE 2016 Annual MD&A, which section 6 is incorporated by reference in this section 7.

Except for the updates set out in section 4.7, Liquidity – Litigation and in section 6, Regulatory environment in this MD&A, the risks described in the BCE 2016 Annual MD&A remain substantially unchanged.

			BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT    29
8	Accounting policies, financial measures and controls	MD&A

8 Accounting policies, financial measures and controls

8.1 Our accounting policies

BCE’s Q1 2017 Financial Statements were prepared in accordance with IFRS, as issued by the IASB, under IAS 34 – Interim Financial Reporting and were approved by BCE’s board of directors on April 25, 2017. These financial statements were prepared using the same basis of presentation, accounting policies and methods of computations as outlined in Note 2, Significant accounting policies in BCE’s consolidated financial statements for the year ended December 31, 2016. BCE’s Q1 2017 Financial Statements do not include all of the notes required in the annual financial statements.

8.2 Non-GAAP financial measures and key performance indicators (KPIs)

This section describes the non-GAAP financial measures and KPIs we use 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 on our Q1 2017 results, or for any previously reported results in 2016, 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, to BCE’s Q1 2017 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.

	Q1 2017		Q1 2016
Net earnings	725		758
Severance, acquisition and other costs	84		42
Depreciation	722		739
Amortization	185		149
Finance costs
Interest expense	234		219
Interest on post-employment benefit obligations	18		20
Other income	(17	)	(23	)
Income taxes	263		259
Adjusted EBITDA	2,214		2,163
BCE operating revenues	5,384		5,270
Adjusted EBITDA margin	41.1	%	41.0	%

30     BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT
	8	Accounting policies, financial measures and controls	MD&A

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 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.

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.

	Q1 2017		Q1 2016
	TOTAL	PER SHARE	TOTAL		PER SHARE
Net earnings attributable to common shareholders	679	0.78	707		0.82
Severance, acquisition and other costs	65	0.07	31		0.03
Net losses (gains) on investments	14	0.02	(12	)	(0.01	)
Early debt redemption costs	–	–	8		0.01
Adjusted net earnings	758	0.87	734		0.85

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.

	Q1 2017		Q1 2016
Cash flows from operating activities	1,313		1,290
Capital expenditures	(852	)	(852	)
Cash dividends paid on preferred shares	(43	)	(36	)
Cash dividends paid by subsidiaries to NCI	(12	)	(12	)
Acquisition and other costs paid	83		28
Free cash flow	489		418

			BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT    31
8	Accounting policies, financial measures and controls	MD&A

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.

	MARCH 31, 2017		DECEMBER 31, 2016
Debt due within one year	6,306		4,887
Long-term debt	17,757		16,572
50% of outstanding preferred shares	2,002		2,002
Cash and cash equivalents	(510	)	(853	)
Net debt	25,555		22,608

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 twelve-month 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

32     BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT
	8	Accounting policies, financial measures and controls	MD&A

8.3 Controls and procedures

Disclosure controls and procedures and internal control over financial reporting

In accordance with the provisions of National Instrument 52-109 – Certification of Disclosure in Issuers’ Annual and Interim Filings, the Chief Executive Officer and the Chief Financial Officer of BCE Inc. have limited the scope of their design of our disclosure controls and procedures and internal control over financial reporting to exclude the controls, policies 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 three months ended March 31, 2017 had no significant impact on consolidated revenues and on consolidated net earnings. Additionally, at March 31, 2017, the current assets and current liabilities of the acquired MTS operations represented approximately 12% and 4% of consolidated current assets and current liabilities, respectively, and the non-current assets and non-current liabilities of the acquired MTS operations represented approximately 8% and 3% of consolidated non-current assets and non-current liabilities, respectively. The design of the disclosure controls and procedures and internal control over financial reporting of the acquired MTS operations 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 BCE’s Q1 2017 Financial Statements.

Changes in internal control over financial reporting

No changes were made in our internal control over financial reporting during the quarter ended March 31, 2017 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

	BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT    33
Consolidated financial statements

Consolidated financial statements

Consolidated income statements

FOR THE PERIOD ENDED (IN MILLIONS OF CANADIAN DOLLARS, EXCEPT SHARE AMOUNTS) (UNAUDITED)	NOTE	MARCH 31, 2017		MARCH 31, 2016
Operating revenues	4	5,384		5,270
Operating costs	4, 5	(3,170	)	(3,107	)
Severance, acquisition and other costs	4, 6	(84	)	(42	)
Depreciation	4	(722	)	(739	)
Amortization	4	(185	)	(149	)
Finance costs
Interest expense		(234	)	(219	)
Interest on post-employment benefit obligations	10	(18	)	(20	)
Other income	7	17		23
Income taxes		(263	)	(259	)
Net earnings		725		758
Net earnings attributable to:
Common shareholders		679		707
Preferred shareholders		31		37
Non-controlling interest		15		14
Net earnings		725		758
Net earnings per common share – basic and diluted	8	0.78		0.82
Average number of common shares outstanding – basic (millions)		875.7		867.1

34     BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT
	Consolidated financial statements

Consolidated statements of comprehensive income

FOR THE PERIOD ENDED (IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)	MARCH 31, 2017		MARCH 31, 2016
Net earnings	725		758
Other comprehensive (loss) income, net of income taxes
Items that will be subsequently reclassified to net earnings
Net change in value of available-for-sale (AFS) financial assets, net of income taxes of nil at March 31, 2017 and 2016, respectively	–		5
Net change in value of derivatives designated as cash flow hedges, net of income taxes of $3 million and $26 million at March 31, 2017 and 2016, respectively	(9	)	(72	)
Items that will not be reclassified to net earnings
Actuarial losses on post-employment benefit plans, net of income taxes of $119 million and $251 million at March 31, 2017 and 2016, respectively(1)	(323	)	(672	)
Other comprehensive loss	(332	)	(739	)
Total comprehensive income	393		19
Total comprehensive income attributable to:
Common shareholders	347		(29	)
Preferred shareholders	31		37
Non-controlling interest	15		11
Total comprehensive income	393		19

(1) The discount rate used to value our post-employment benefit obligations at March 31, 2017 was 3.8% compared to 4.0% at December 31, 2016. The discount rate used to value our post-employment benefit obligations at March 31, 2016 was 3.9% compared to 4.2% at December 31, 2015.

	BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT    35
Consolidated financial statements

Consolidated statements of financial position

(IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)	NOTE	MARCH 31, 2017		DECEMBER 31, 2016
ASSETS
Current assets
Cash		439		603
Cash equivalents		71		250
Trade and other receivables		2,818		2,979
Inventory		428		403
Prepaid expenses		540		420
Assets held for sale	3	284		–
Other current assets		152		200
Total current assets		4,732		4,855
Non-current assets
Property, plant and equipment		23,450		22,346
Intangible assets		13,356		11,998
Deferred tax assets		171		89
Investments in associates and joint ventures		879		852
Other non-current assets		875		1,010
Goodwill	3	10,386		8,958
Total non-current assets		49,117		45,253
Total assets		53,849		50,108
LIABILITIES
Current liabilities
Trade payables and other liabilities		4,044		4,326
Interest payable		177		156
Dividends payable		636		617
Current tax liabilities		62		122
Debt due within one year	9	6,306		4,887
Total current liabilities		11,225		10,108
Non-current liabilities
Long-term debt	9	17,757		16,572
Deferred tax liabilities		2,158		2,192
Post-employment benefit obligations	10	2,252		2,105
Other non-current liabilities		1,264		1,277
Total non-current liabilities		23,431		22,146
Total liabilities		34,656		32,254
EQUITY
Equity attributable to BCE shareholders
Preferred shares	12	4,004		4,004
Common shares	12	20,023		18,370
Contributed surplus		1,137		1,160
Accumulated other comprehensive income		37		46
Deficit		(6,324	)	(6,040	)
Total equity attributable to BCE shareholders		18,877		17,540
Non-controlling interest		316		314
Total equity		19,193		17,854
Total liabilities and equity		53,849		50,108

36     BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT
	Consolidated financial statements

Consolidated statements of changes in equity

		ATTRIBUTABLE TO BCE SHAREHOLDERS
FOR THE PERIOD ENDED MARCH 31, 2017 (IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)	NOTE	PREFERRED SHARES	COMMON SHARES	CONTRI- BUTED SURPLUS		ACCUMU- LATED OTHER COMPRE- HENSIVE INCOME (LOSS)		DEFICIT		TOTAL		NON- CONTROL- LING INTEREST		TOTAL EQUITY
Balance at January 1, 2017		4,004	18,370	1,160		46		(6,040	)	17,540		314		17,854
Net earnings		–	–	–		–		710		710		15		725
Other comprehensive loss		–	–	–		(9	)	(323	)	(332	)	–		(332	)
Total comprehensive (loss) income		–	–	–		(9	)	387		378		15		393
Common shares issued under employee stock option plan		–	54	(3	)	–		–		51		–		51
Common shares issued under employee savings plan		–	5	–		–		–		5		–		5
Other share-based compensation		–	–	(20	)	–		(14	)	(34	)	–		(34	)
Common shares issued for the acquisition of Manitoba Telecom Services Inc. (MTS)	3, 12	–	1,594	–		–		–		1,594		–		1,594
Dividends declared on BCE common and preferred shares		–	–	–		–		(657	)	(657	)	–		(657	)
Dividends declared by subsidiaries to non-controlling interest		–	–	–		–		–		–		(13	)	(13	)
Balance at March 31, 2017		4,004	20,023	1,137		37		(6,324	)	18,877		316		19,193

	ATTRIBUTABLE TO BCE SHAREHOLDERS
FOR THE PERIOD ENDED MARCH 31, 2016 (IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)	PREFERRED SHARES	COMMON SHARES	CONTRI- BUTED SURPLUS		ACCUMU- LATED OTHER COMPRE- HENSIVE INCOME (LOSS)		DEFICIT		TOTAL		NON- CONTROL- LING INTEREST		TOTAL EQUITY
Balance at January 1, 2016	4,004	18,100	1,150		119		(6,350	)	17,023		306		17,329
Net earnings	–	–	–		–		744		744		14		758
Other comprehensive loss	–	–	–		(64	)	(672	)	(736	)	(3	)	(739	)
Total comprehensive (loss) income	–	–	–		(64	)	72		8		11		19
Common shares issued under employee stock option plan	–	83	(5	)	–		–		78		–		78
Common shares issued under dividend reinvestment plan	–	38	–		–		–		38		–		38
Common shares issued under employee savings plan	–	30	–		–		–		30		–		30
Other share-based compensation	–	–	(21	)	–		(11	)	(32	)	–		(32	)
Dividends declared on BCE common and preferred shares	–	–	–		–		(630	)	(630	)	–		(630	)
Dividends declared by subsidiaries to non-controlling interest	–	–	–		–		–		–		(12	)	(12	)
Balance at March 31, 2016	4,004	18,251	1,124		55		(6,919	)	16,515		305		16,820

	BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT    37
Consolidated financial statements

Consolidated statements of cash flows

FOR THE PERIOD ENDED (IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)	NOTE	MARCH 31, 2017		MARCH 31, 2016
Cash flows from operating activities
Net earnings		725		758
Adjustments to reconcile net earnings to cash flows from operating activities
Severance, acquisition and other costs	6	84		42
Depreciation and amortization		907		888
Post-employment benefit plans cost	10	68		68
Net interest expense		230		218
Losses (gains) on investments		12		(16	)
Income taxes		263		259
Contributions to post-employment benefit plans		(88	)	(90	)
Payments under other post-employment benefit plans		(19	)	(19	)
Severance and other costs paid		(41	)	(86	)
Interest paid		(223	)	(221	)
Income taxes paid (net of refunds)		(288	)	(238	)
Acquisition and other costs paid		(83	)	(28	)
Net change in operating assets and liabilities		(234	)	(245	)
Cash flows from operating activities		1,313		1,290
Cash flows used in investing activities
Capital expenditures		(852	)	(852	)
Business acquisitions	3	(1,635	)	(245	)
Business dispositions		–		16
Other investing activities		(9	)	35
Cash flows used in investing activities		(2,496	)	(1,046	)
Cash flows from (used in) financing activities
Increase in notes payable		308		725
Increase in securitized trade receivables		350		–
Issue of long-term debt	9	1,496		747
Repayment of long-term debt	9	(604	)	(1,310	)
Issue of common shares		48		73
Repurchase of shares for settlement of share-based payments		(96	)	(68	)
Cash dividends paid on common shares		(594	)	(526	)
Cash dividends paid on preferred shares		(43	)	(36	)
Cash dividends paid by subsidiaries to non-controlling interest		(12	)	(12	)
Other financing activities		(13	)	(27	)
Cash flows from (used in) financing activities		840		(434	)
Net (decrease) increase in cash		(164	)	2
Cash at beginning of period		603		100
Cash at end of period		439		102
Net decrease in cash equivalents		(179	)	(192	)
Cash equivalents at beginning of period		250		513
Cash equivalents at end of period		71		321

38     BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT
	Notes to consolidated financial statements

Notes to consolidated financial statements

These consolidated interim financial statements (financial statements) should be read in conjunction with BCE’s 2016 annual consolidated financial statements, approved by BCE’s board of directors on March 2, 2017.

These notes are unaudited.

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 in Canada. 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.

Note 2 Basis of presentation and significant accounting policies

The financial statements were prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB), under International Accounting Standard (IAS) 34 – Interim Financial Reporting and were approved by BCE’s board of directors on April 25, 2017. The financial statements were prepared using the same basis of presentation, accounting policies and methods of computation as outlined in Note 2, Significant accounting policies in our consolidated financial statements for the year ended December 31, 2016. The financial statements do not include all of the notes required in annual financial statements.

All amounts are in millions of Canadian dollars, except where noted.

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 will allow 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 purchase price allocation includes provisional estimates, in particular for property, plant and equipment and finite-life intangible assets. The following table summarizes the fair value of the consideration paid and the fair value assigned to each major class of assets and liabilities.

	BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT    39
Notes to consolidated financial statements

	NOTE	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		103
Other non-cash working capital		(165	)
Assets held for sale(2)		310
Property, plant and equipment		994
Finite-life intangible assets(3)		971
Indefinite-life intangible assets(4)		280
Deferred tax assets		49
Other non-current assets		129
Debt due within one year		(251	)
Long-term debt	9	(721	)
Other non-current liabilities		(57	)
		1,642
Cash and cash equivalents		(16	)
Fair value of net assets acquired		1,626
Goodwill(5)		1,307

(1)	Recorded at fair value based on the market price of BCE common shares on the acquisition date.
(2)	Consists of finite 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 provisionally 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 $661 million and $646 million was provisionally 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. These non-capital tax loss carryforwards expire in varying amounts from 2026 to 2033.

Also as a result of the acquisition of MTS, our commitments for operating leases and purchase obligations increased by approximately $180 million.

Revenues of $41 million and net earnings of $3 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 three months ended March 31, 2017 would have been $5,579 million and $733 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.

ASSETS HELD FOR SALE

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.

On April 1, 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 $318 million, subject to customary adjustments.

40     BCE Inc.   2017 FIRST QUARTER SHAREHOLDER 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 purchase price allocation includes certain provisional estimates. 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.

Cieslok Media revenues of $6 million and net earnings of $1 million are included in the consolidated income statements from the date of acquisition.

2016

National expansion of HBO and The Movie Network (TMN)

In Q1 2016, BCE completed a transaction with Corus Entertainment Inc. (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.

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 three months ended March 31, 2016.

	BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT    41
Notes to consolidated financial statements

Note 4 Segmented information

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.

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.

The following tables present financial information by segment for the periods ended March 31, 2017 and 2016.

FOR THE PERIOD ENDED MARCH 31, 2017	NOTE	BELL WIRELESS		BELL WIRELINE		BELL MEDIA		INTERSEGMENT ELIMINATIONS		BCE
Operating revenues
External customers		1,804		2,928		652		–		5,384
Inter-segment		10		52		99		(161	)	–
Total operating revenues		1,814		2,980		751		(161	)	5,384
Operating costs	5	(996	)	(1,718	)	(617	)	161		(3,170	)
Segment profit(1)		818		1,262		134		–		2,214
Severance, acquisition and other costs	6	(5	)	(67	)	(12	)	–		(84	)
Depreciation and amortization		(138	)	(734	)	(35	)	–		(907	)
Finance costs
Interest expense										(234	)
Interest on post-employment benefit obligations	10									(18	)
Other income	7									17
Income taxes										(263	)
Net earnings										725

(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 PERIOD ENDED MARCH 31, 2016	NOTE	BELL WIRELESS		BELL WIRELINE		BELL MEDIA		INTERSEGMENT ELIMINATIONS		BCE
Operating revenues
External customers		1,683		2,942		645		–		5,270
Inter-segment		10		41		96		(147	)	–
Total operating revenues		1,693		2,983		741		(147	)	5,270
Operating costs	5	(932	)	(1,726	)	(596	)	147		(3,107	)
Segment profit(1)		761		1,257		145		–		2,163
Severance, acquisition and other costs	6	(1	)	(42	)	1		–		(42	)
Depreciation and amortization		(141	)	(712	)	(35	)	–		(888	)
Finance costs
Interest expense										(219	)
Interest on post-employment benefit obligations	10									(20	)
Other income	7									23
Income taxes										(259	)
Net earnings										758

(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.

42     BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT
	Notes to consolidated financial statements

Note 5 Operating costs

FOR THE PERIOD ENDED MARCH 31	NOTE	2017		2016
Labour costs
Wages, salaries and related taxes and benefits		(1,002	)	(1,005	)
Post-employment benefit plans service cost (net of capitalized amounts)	10	(50	)	(48	)
Other labour costs(1)		(253	)	(242	)
Less:
Capitalized labour		245		226
Total labour costs		(1,060	)	(1,069	)
Cost of revenues(2)		(1,634	)	(1,575	)
Other operating costs(3)		(476	)	(463	)
Total operating costs		(3,170	)	(3,107	)

(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, information technology costs, professional service fees and rent.

Note 6 Severance, acquisition and other costs

FOR THE PERIOD ENDED MARCH 31	2017		2016
Severance	(31	)	(22	)
Acquisition and other	(53	)	(20	)
Total severance, acquisition and other costs	(84	)	(42	)

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 for the period ended March 31, 2017 also include a loss on sale of spectrum licences relating to the MTS acquisition.

Note 7 Other income

FOR THE PERIOD ENDED MARCH 31	2017		2016
Net mark-to-market gains on derivatives used as economic hedges	30		7
Equity income from investments in associates and joint ventures
Operations	19		3
Loss on investment	(2	)	–
Losses on retirements and disposals of property, plant and equipment and intangible assets	(17	)	(8	)
(Losses) gains on investments	(12	)	16
Early debt redemption costs	–		(11	)
Other	(1	)	16
Total other income	17		23

	BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT    43
Notes to consolidated financial statements

Note 8 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 PERIOD ENDED MARCH 31	2017	2016
Net earnings attributable to common shareholders – basic	679	707
Dividends declared per common share (in dollars)	0.7175	0.6825
Weighted average number of common shares outstanding (in millions)
Weighted average number of common shares outstanding – basic	875.7	867.1
Assumed exercise of stock options(1)	0.9	1.0
Weighted average number of common shares outstanding – diluted (in millions)	876.6	868.1

(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 5,816,905 for the first quarter 2017, compared to 5,591,777 for the first quarter of 2016.

Note 9 Debt

On February 27, 2017, Bell Canada issued 2.70% Series M-44 medium-term notes (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.

In Q1 2017, Bell Canada repaid $357 million in U.S. dollars (approximately $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 11, Financial assets and liabilities for additional details.

In Q1 2017, Bell Canada reclassified its $1 billion 4.40% Series M-22 MTN debentures, which mature on March 16, 2018, from long-term debt to short-term debt.

As a result of the acquisition of MTS, Bell Canada assumed MTS’ outstanding unsecured medium term notes. The following table provides details for the principal amounts and fair values assigned to the medium term notes assumed at acquisition.

	INTEREST RATE	MATURITY	AMOUNT
Medium term note	4.59%	October 1, 2018	200
Medium term note	5.625%	December 16, 2019	200
Medium term note	4.00%	May 27, 2024	225
Total long-term debt			625
Fair value adjustment			45
Total long-term debt			670

The trust indentures under which these MTS medium term notes were issued require us to meet specific new issue tests to make an offer to repurchase the notes upon the occurrence of a change of control event as defined in the trust indentures and impose certain other covenants. We are in compliance with all conditions and restrictions under such trust indentures.

Also as a result of the acquisition of MTS, Bell Canada assumed MTS’ notes payable of $250 million and finance leases of $52 million.

44     BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT
	Notes to consolidated financial statements

Note 10 Post-employment benefit plans

Post-employment benefit plans cost

We provide pension and other benefits for most of our employees. These include defined benefit (DB) pension plans, defined contribution (DC) pension plans and other post-employment benefits (OPEBs). The costs of these plans are tabled below.

COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS SERVICE COST

FOR THE PERIOD ENDED MARCH 31	2017		2016
DB pension	(48	)	(51	)
DC pension	(31	)	(32	)
OPEBs	(2	)	(2	)
Plan amendment gain on OPEBs and DB pension	16		23
Less:
Capitalized benefit plans cost	15		14
Total post-employment benefit plans service cost included in operating costs	(50	)	(48	)
Other costs recognized in severance, acquisition and other costs	–		5
Total post-employment benefit plans service cost	(50	)	(43	)

COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS FINANCING COST

FOR THE PERIOD ENDED MARCH 31	2017		2016
DB pension	(4	)	(6	)
OPEBs	(14	)	(14	)
Total interest on post-employment benefit obligations	(18	)	(20	)

MTS’ net post-employment benefit asset was $56 million ($2,735 million fair value of plan assets and $2,679 million post-employment benefit obligations) at the acquisition date of March 17, 2017.

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 defined benefit pension plans including the benefit obligations for retirees and other former employees. Once regulatory approval is received, the assets and liabilities related to pre-closing service obligations for Allstream’s active employees will be transferred from the existing Allstream defined benefit pension plans to two new Zayo Canada Inc. pension plans.

Note 11 Financial assets and liabilities

Fair value

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

			MARCH 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	155	158	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	134	142	136	145
Debentures, 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 marketinterest rates	19,590	21,892	17,879	20,093

	BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT    45
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.

				FAIR VALUE
	CLASSIFICATION	CARRYING VALUE OF ASSET (LIABILITY)		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)	OBSERVABLE MARKET DATA (LEVEL 2) (1)	NON-OBSERVABLE MARKET INPUTS (LEVEL 3) (2)
March 31, 2017
AFS publicly-traded and privately-held investments	Other non-current assets	103		1	–	102
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities	164		–	164	–
MLSE financial liability(3)	Trade payables and other liabilities	(135	)	–	–	(135	)
Other	Other non-current assets and liabilities	38		–	92	(54	)
December 31, 2016
AFS publicly-traded and privately-held investments	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(3)	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)	Represents BCE’s obligation to repurchase the BCE  Master Trust Fund’s (Master Trust) 9% interest in Maple Leaf Sports & Entertainment Ltd. 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 income in the income statements.

Currency exposures

We use foreign currency forward contracts, options and cross currency basis swaps to manage foreign currency risk related to anticipated transactions and certain foreign currency debt. During Q1 2017, we settled a cross currency basis swap with a notional amount of $357 million in U.S. dollars used to hedge borrowings under a credit facility. Refer to Note 9, 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 $32 million recognized in net earnings at March 31, 2017 and a gain (loss) of $94 million recognized in other comprehensive income at March 31, 2017, with all other variables held constant.

The following table provides further details on our outstanding foreign currency forward contracts, at March 31, 2017.

TYPE OF HEDGE	BUY CURRENCY	AMOUNTS TO RECEIVE	SELL CURRENCY	AMOUNTS TO PAY	MATURITY	HEDGED ITEM
Cash flow	USD	2,363	CAD	3,133	2017	Commercial paper
Cash flow	USD	344	CAD	442	2017	Purchase commitments
Cash flow	USD	627	CAD	818	2018	Purchase commitments
Economic	USD	390	CAD	524	2017	Purchase commitments

Interest rate exposures

A 1% increase (decrease) in interest rates would result in a decrease (increase) of $30 million and $27 million, respectively, in net earnings at March 31, 2017, with all other variables held constant.

Equity price exposure

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. The fair value of our equity forward contracts at March 31, 2017 was $126 million.

A 5% increase (decrease) in the market price of BCE’s common shares at March 31, 2017 would result in a gain (loss) of $37 million recognized in net earnings, with all other variables held constant.

46     BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT
	Notes to consolidated financial statements

Note 12 Share capital

Issuance of common shares

On March 17, 2017, 27.6 million BCE common shares were issued in payment of the equity portion of the purchase price for the acquisition of MTS. See Note 3, Business acquisitions and dispositions for additional details.

Dividend rate reset on first preferred shares

On March 31, 2017, the annual fixed dividend rate on BCE’s Cumulative Redeemable First Preferred Shares, Series AO was reset for the next five years at 4.26% from 4.55%.

Dividends will be paid as and when declared by the board of directors of BCE.

Note 13 Share-based payments

The following share-based payment amounts are included in the consolidated income statements as operating costs.

FOR THE PERIOD ENDED MARCH 31	2017		2016
Employee savings plan (ESP)	(7	)	(7	)
Restricted share units (RSUs) and performance share units (PSUs)	(17	)	(14	)
Other(1)	(3	)	(4	)
Total share-based payments	(27	)	(25	)

(1) Includes deferred share units (DSUs), deferred share plan (DSP) and stock options.

The following tables summarize the change in outstanding ESP shares, RSUs/PSUs, DSUs and stock options for the period ended March 31, 2017.

ESP

	NUMBER OF ESP SHARES
Unvested contributions, January 1, 2017	1,073,212
Contributions(1)	162,160
Dividends credited	12,335
Vested	(151,505	)
Forfeited	(35,815	)
Unvested contributions, March 31, 2017	1,060,387

(1) The weighted average fair value of the shares contributed during the quarter was $58.

RSUs/PSUs

	NUMBER OF RSUs/PSUs
Oustanding, January 1, 2017	2,928,698
Granted(1)	846,961
Dividends credited	34,350
Settled	(1,076,216	)
Forfeited	(49,685	)
Outstanding, March 31, 2017	2,684,108

(1) The weighted average fair value of the RSUs/PSUs granted during the quarter was $58.

	BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT    47
Notes to consolidated financial statements

DSUs

	NUMBER OF DSUs
Outstanding, January 1, 2017	4,131,229
Issued(1)	36,362
Settlement of RSUs/PSUs	101,066
Dividends credited	48,326
Settled	(60,229	)
Outstanding, March 31, 2017	4,256,754

(1) The weighted average fair value of the DSUs granted during the quarter was $59.

STOCK OPTIONS

	NUMBER OF OPTIONS		WEIGHTED AVERAGE EXERCISE PRICE ($)
Outstanding, January 1, 2017	10,242,162		52
Granted	2,976,722		59
Exercised(1)	(1,102,575	)	47
Forfeited	(166,133	)	57
Outstanding, March 31, 2017	11,950,176		54
Exercisable, March 31, 2017	3,467,271		45

(1) The weighted average share price for options exercised during the quarter was $58.

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	5.0	%
Expected volatility	13	%
Risk-free interest rate	1.0	%
Expected life (years)	4.0

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.

48     BCE Inc.   2017 FIRST QUARTER SHAREHOLDER REPORT

This document has been filed by BCE Inc. with the Canadian provincial securities regulatory authorities and the U.S. Securities and Exchange Commission. It can be found on BCE Inc.’s website at BCE.ca, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov or is available upon request from: INVESTOR RELATIONS Building A, 8th floor
1 Carrefour Alexander-Graham-Bell 
Verdun, Québec H3E 3B3 e-mail: investor.relations@bce.ca
tel: 1-800-339-6353
fax: 514-786-3970 BCE.ca For additional copies of this document, please contact investor relations. Pour obtenir un exemplaire de la version française de ce document, contactez les Relations avec les investisseurs.   For further information concerning BCE Inc.’s Dividend Reinvestment and Stock Purchase Plan (DRP), direct deposit of dividend payments, the elimination of multiple mailings or the receipt of quarterly reports, please contact: CST TRUST COMPANY 320 Bay Street, 3rd floor
Toronto, Ontario M5H 4A6
tel: 416-360-7725 or 1-800-561-0934
fax: 416-643-5501 or 1-888-249-6189
e-mail: bce@canstockta.com

EX-99.2

Exhibit 99.2

BCE ^{(1) (2)}
Consolidated Operational Data

(In millions of Canadian dollars, except share amounts) (unaudited)		Q1 2017			Q1 2016			$ change		% change
Operating revenues
Service		5,051			4,908			143		2.9	%
Product		333			362			(29	)	(8.0	%)
Total operating revenues		5,384			5,270			114		2.2	%
Operating costs (A)		(3,120	)		(3,059	)		(61	)	(2.0	%)
Post-employment benefit plans service cost		(50	)		(48	)		(2	)	(4.2	%)
Adjusted EBITDA (3)		2,214			2,163			51		2.4	%
Adjusted EBITDA margin (3)		41.1	%		41.0	%				0.1	pts
Severance, acquisition and other costs		(84	)		(42	)		(42	)	(100.0	%)
Depreciation		(722	)		(739	)		17		2.3	%
Amortization		(185	)		(149	)		(36	)	(24.2	%)
Finance costs
Interest expense		(234	)		(219	)		(15	)	(6.8	%)
Interest on post-employment benefit obligations		(18	)		(20	)		2		10.0	%
Other income		17			23			(6	)	(26.1	%)
Income taxes		(263	)		(259	)		(4	)	(1.5	%)
Net earnings		725			758			(33	)	(4.4	%)
Net earnings attributable to:
Common shareholders		679			707			(28	)	(4.0	%)
Preferred shareholders		31			37			(6	)	(16.2	%)
Non-controlling interest		15			14			1		7.1	%
Net earnings		725			758			(33	)	(4.4	%)
Net earnings per common share - basic	$	0.78		$	0.82		$	(0.04	)	(4.9	%)
Net earnings per common share - diluted	$	0.78		$	0.82		$	(0.04	)	(4.9	%)
Dividends per common share	$	0.7175		$	0.6825		$	0.0350		5.1	%
Average number of common shares outstanding - basic (millions)		875.7			867.1
Average number of common shares outstanding - diluted (millions)		876.6			868.1
Number of common shares outstanding (millions)		899.5			868.6
Adjusted net earnings and EPS
Net earnings attributable to common shareholders		679			707			(28	)	(4.0	%)
Severance, acquisition and other costs		65			31			34		n.m.
Net losses (gains) on investments		14			(12	)		26		n.m.
Early debt redemption costs		-			8			(8	)	(100.0	%)
Adjusted net earnings (3)		758			734			24		3.3	%
Impact on net earnings per share	$	0.09		$	0.03		$	0.06		n.m.
Adjusted EPS (3)	$	0.87		$	0.85		$	0.02		2.4	%

(A)	Excludes post-employment benefit plans service cost
n.m. :	not meaningful

BCE Supplementary Financial Information - First Quarter 2017 Page 2

BCE
Consolidated Operational Data - Historical Trend

(In millions of Canadian dollars, except share amounts) (unaudited)		Q1 17			TOTAL 2016			Q4 16			Q3 16			Q2 16			Q1 16
Operating revenues
Service		5,051			20,090			5,169			5,025			4,988			4,908
Product		333			1,629			533			382			352			362
Total operating revenues		5,384			21,719			5,702			5,407			5,340			5,270
Operating costs (A)		(3,120	)		(12,707	)		(3,521	)		(3,111	)		(3,016	)		(3,059	)
Post-employment benefit plans service cost		(50	)		(224	)		(60	)		(60	)		(56	)		(48	)
Adjusted EBITDA		2,214			8,788			2,121			2,236			2,268			2,163
Adjusted EBITDA margin		41.1	%		40.5	%		37.2	%		41.4	%		42.5	%		41.0	%
Severance, acquisition and other costs		(84	)		(135	)		(11	)		(25	)		(57	)		(42	)
Depreciation		(722	)		(2,877	)		(719	)		(706	)		(713	)		(739	)
Amortization		(185	)		(631	)		(165	)		(161	)		(156	)		(149	)
Finance costs
Interest expense		(234	)		(888	)		(225	)		(227	)		(217	)		(219	)
Interest on post-employment benefit obligations		(18	)		(81	)		(20	)		(20	)		(21	)		(20	)
Other income (expense)		17			21			(30	)		(13	)		41			23
Income taxes		(263	)		(1,110	)		(252	)		(284	)		(315	)		(259	)
Net earnings		725			3,087			699			800			830			758
Net earnings attributable to:
Common shareholders		679			2,894			657			752			778			707
Preferred shareholders		31			137			33			32			35			37
Non-controlling interest		15			56			9			16			17			14
Net earnings		725			3,087			699			800			830			758
Net earnings per common share - basic	$	0.78		$	3.33		$	0.75		$	0.87		$	0.89		$	0.82
Net earnings per common share - diluted	$	0.78		$	3.33		$	0.75		$	0.87		$	0.89		$	0.82
Dividends per common share	$	0.7175		$	2.7300		$	0.6825		$	0.6825		$	0.6825		$	0.6825
Average number of common shares outstanding - basic (millions)		875.7			869.1			870.5			869.9			869.1			867.1
Average number of common shares outstanding - diluted (millions)		876.6			870.3			871.6			871.4			870.3			868.1
Number of common shares outstanding (millions)		899.5			870.7			870.7			870.2			869.5			868.6
Adjusted net earnings and EPS
Net earnings attributable to common shareholders		679			2,894			657			752			778			707
Severance, acquisition and other costs		65			104			9			20			44			31
Net losses (gains) on investments		14			3			1			12			2			(12	)
Early debt redemption costs		-			8			-			-			-			8
Adjusted net earnings		758			3,009			667			784			824			734
Impact on net earnings per share	$	0.09		$	0.13		$	0.01		$	0.04		$	0.05		$	0.03
Adjusted EPS	$	0.87		$	3.46		$	0.76		$	0.91		$	0.94		$	0.85

(A) Excludes post-employment benefit plans service cost

BCE Supplementary Financial Information - First Quarter 2017 Page 3

BCE
Segmented Data

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q1 2017		Q1 2016		$ change		% change
Operating revenues
Bell Wireless	1,814		1,693		121		7.1	%
Bell Wireline	2,980		2,983		(3	)	(0.1	%)
Bell Media	751		741		10		1.3	%
Inter-segment eliminations	(161	)	(147	)	(14	)	(9.5	%)
Total	5,384		5,270		114		2.2	%
Operating costs
Bell Wireless	(996	)	(932	)	(64	)	(6.9	%)
Bell Wireline	(1,718	)	(1,726	)	8		0.5	%
Bell Media	(617	)	(596	)	(21	)	(3.5	%)
Inter-segment eliminations	161		147		14		9.5	%
Total	(3,170	)	(3,107	)	(63	)	(2.0	%)
Adjusted EBITDA
Bell Wireless	818		761		57		7.5	%
Margin	45.1	%	44.9	%			0.2	pts
Bell Wireline	1,262		1,257		5		0.4	%
Margin	42.3	%	42.1	%			0.2	pts
Bell Media	134		145		(11	)	(7.6	%)
Margin	17.8	%	19.6	%			(1.8	) pts
Total	2,214		2,163		51		2.4	%
Margin	41.1	%	41.0	%			0.1	pts
Capital expenditures
Bell Wireless	136		162		26		16.0	%
Capital intensity (4)	7.5	%	9.6	%			2.1	pts
Bell Wireline	691		669		(22	)	(3.3	%)
Capital intensity	23.2	%	22.4	%			(0.8	) pts
Bell Media	25		21		(4	)	(19.0	%)
Capital intensity	3.3	%	2.8	%			(0.5	) pts
Total	852		852		-		-
Capital intensity	15.8	%	16.2	%			0.4	pts

BCE Supplementary Financial Information - First Quarter 2017 Page 4

BCE
Segmented Data - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q1 17		TOTAL 2016		Q4 16		Q3 16		Q2 16		Q1 16
Operating revenues
Bell Wireless	1,814		7,159		1,883		1,848		1,735		1,693
Bell Wireline	2,980		12,104		3,137		3,005		2,979		2,983
Bell Media	751		3,081		845		716		779		741
Inter-segment eliminations	(161	)	(625	)	(163	)	(162	)	(153	)	(147	)
Total	5,384		21,719		5,702		5,407		5,340		5,270
Operating costs
Bell Wireless	(996	)	(4,156	)	(1,209	)	(1,052	)	(963	)	(932	)
Bell Wireline	(1,718	)	(7,062	)	(1,878	)	(1,752	)	(1,706	)	(1,726	)
Bell Media	(617	)	(2,338	)	(657	)	(529	)	(556	)	(596	)
Inter-segment eliminations	161		625		163		162		153		147
Total	(3,170	)	(12,931	)	(3,581	)	(3,171	)	(3,072	)	(3,107	)
Adjusted EBITDA
Bell Wireless	818		3,003		674		796		772		761
Margin	45.1	%	41.9	%	35.8	%	43.1	%	44.5	%	44.9	%
Bell Wireline	1,262		5,042		1,259		1,253		1,273		1,257
Margin	42.3	%	41.7	%	40.1	%	41.7	%	42.7	%	42.1	%
Bell Media	134		743		188		187		223		145
Margin	17.8	%	24.1	%	22.2	%	26.1	%	28.6	%	19.6	%
Total	2,214		8,788		2,121		2,236		2,268		2,163
Margin	41.1	%	40.5	%	37.2	%	41.4	%	42.5	%	41.0	%
Capital expenditures
Bell Wireless	136		733		193		195		183		162
Capital intensity	7.5	%	10.2	%	10.2	%	10.6	%	10.5	%	9.6	%
Bell Wireline	691		2,936		778		756		733		669
Capital intensity	23.2	%	24.3	%	24.8	%	25.2	%	24.6	%	22.4	%
Bell Media	25		102		22		25		34		21
Capital intensity	3.3	%	3.3	%	2.6	%	3.5	%	4.4	%	2.8	%
Total	852		3,771		993		976		950		852
Capital intensity	15.8	%	17.4	%	17.4	%	18.1	%	17.8	%	16.2	%

BCE Supplementary Financial Information - First Quarter 2017 Page 5

Bell Wireless ^{(1) (2)}

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q1 2017		Q1 2016		% change
Bell Wireless
Operating revenues
External service revenues	1,705		1,579		8.0	%
Inter-segment service revenues	10		9		11.1	%
Total operating service revenues	1,715		1,588		8.0	%
External product revenues	99		104		(4.8	%)
Inter-segment product revenues	-		1		(100.0	%)
Total operating product revenues	99		105		(5.7	%)
Total external revenues	1,804		1,683		7.2	%
Total operating revenues	1,814		1,693		7.1	%
Operating costs	(996	)	(932	)	(6.9	%)
Adjusted EBITDA	818		761		7.5	%
Adjusted EBITDA margin (Total operating revenues)	45.1	%	44.9	%	0.2	pts
Adjusted EBITDA margin (Operating service revenues)	47.7	%	47.9	%	(0.2	) pts
Capital expenditures	136		162		16	%
Capital intensity	7.5	%	9.6	%	2.1	pts
Wireless gross activations	348,452		331,623		5.1	%
Postpaid	296,616		275,415		7.7	%
Wireless net activations (losses)	672		(9,868	)	106.8	%
Postpaid	35,782		25,805		38.7	%
Wireless subscribers end of period (EOP) (A)	8,946,476		8,235,963		8.6	%
Postpaid (A)	8,144,936		7,401,221		10.0	%
Average revenue per user (4) (ARPU)($/month)	65.66		63.02		4.2	%
Churn (%) (4) (average per month)	1.36	%	1.38	%	0.02	pts
Prepaid	3.29	%	3.42	%	0.13	pts
Postpaid	1.17	%	1.15	%	(0.02	) pts

(A) As a result of the acquisition of MTS on March 17, 2017, our wireless subscriber base increased by 476,932 subscribers (418,427 postpaid). Subsequent to Q1 2017, as part of a consent agreement with the Competition Bureau, on April 1, 2017, BCE divested approximately one-quarter of the acquired MTS postpaid wireless subscribers to TELUS.

BCE Supplementary Financial Information - First Quarter 2017 Page 6

Bell Wireless - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q1 17		TOTAL 2016		Q4 16		Q3 16		Q2 16		Q1 16
Bell Wireless
Operating revenues
External service revenues	1,705		6,602		1,702		1,711		1,610		1,579
Inter-segment service revenues	10		40		11		10		10		9
Total operating service revenues	1,715		6,642		1,713		1,721		1,620		1,588
External product revenues	99		515		170		127		114		104
Inter-segment product revenues	-		2		-		-		1		1
Total operating product revenues	99		517		170		127		115		105
Total external revenues	1,804		7,117		1,872		1,838		1,724		1,683
Total operating revenues	1,814		7,159		1,883		1,848		1,735		1,693
Operating costs	(996	)	(4,156	)	(1,209	)	(1,052	)	(963	)	(932	)
Adjusted EBITDA	818		3,003		674		796		772		761
Adjusted EBITDA margin (Total operating revenues)	45.1	%	41.9	%	35.8	%	43.1	%	44.5	%	44.9	%
Adjusted EBITDA margin (Operating service revenues)	47.7	%	45.2	%	39.3	%	46.3	%	47.7	%	47.9	%
Capital expenditures	136		733		193		195		183		162
Capital intensity	7.5	%	10.2	%	10.2	%	10.6	%	10.5	%	9.6	%
Wireless gross activations	348,452		1,654,882		490,948		453,078		379,233		331,623
Postpaid	296,616		1,408,030		434,008		381,630		316,977		275,415
Wireless net activations (losses)	672		223,041		87,923		100,256		44,730		(9,868	)
Postpaid	35,782		315,311		112,393		107,265		69,848		25,805
Wireless subscribers EOP (A)	8,946,476		8,468,872		8,468,872		8,380,949		8,280,693		8,235,963
Postpaid (A)	8,144,936		7,690,727		7,690,727		7,578,334		7,471,069		7,401,221
ARPU ($/month)	65.66		65.46		66.69		67.76		64.32		63.02
Churn (%)(average per month)	1.36	%	1.44	%	1.60	%	1.41	%	1.35	%	1.38	%
Prepaid	3.29	%	3.13	%	3.01	%	2.86	%	3.21	%	3.42	%
Postpaid	1.17	%	1.25	%	1.45	%	1.26	%	1.15	%	1.15	%

(A) As a result of the acquisition of MTS on March 17, 2017, our wireless subscriber base increased by 476,932 subscribers (418,427 postpaid). Subsequent to Q1 2017, as part of a consent agreement with the Competition Bureau, on April 1, 2017, BCE divested approximately one-quarter of the acquired MTS postpaid wireless subscribers to TELUS.

BCE Supplementary Financial Information - First Quarter 2017 Page 7

Bell Wireline ^{(1) (2)}

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q1 2017		Q1 2016		% change
Bell Wireline
Operating revenues
Data	1,707		1,657		3.0	%
Local & access	775		789		(1.8	%)
Long distance	168		191		(12.0	%)
Other services	44		47		(6.4	%)
Total external service revenues	2,694		2,684		0.4	%
Inter-segment service revenues	49		39		25.6	%
Total operating service revenues	2,743		2,723		0.7	%
Data	123		137		(10.2	%)
Equipment & other	111		121		(8.3	%)
Total external product revenues	234		258		(9.3	%)
Inter-segment product revenues	3		2		50.0	%
Total operating product revenues	237		260		(8.8	%)
Total external revenues	2,928		2,942		(0.5	%)
Total operating revenues	2,980		2,983		(0.1	%)
Operating costs	(1,718	)	(1,726	)	0.5	%
Adjusted EBITDA	1,262		1,257		0.4	%
Adjusted EBITDA margin	42.3	%	42.1	%	0.2	pts
Capital expenditures	691		669		(3.3	%)
Capital intensity	23.2	%	22.4	%	(0.8	) pts
High-speed Internet
High-speed Internet net activations	14,989		19,783		(24.2	%)
High-speed Internet subscribers EOP (A) (B)	3,717,270		3,411,246		9.0	%
TV
Net subscriber (losses) activations	(15,663	)	9,999		(256.6	%)
Internet protocol television (IPTV)	22,402		47,740		(53.1	%)
Total subscribers EOP (A)	2,837,353		2,748,495		3.2	%
IPTV (A)	1,465,007		1,230,531		19.1	%
Local
Network access services (NAS) (A)
Residential (A)	3,399,981		3,466,304		(1.9	%)
Business (A)	3,174,293		3,099,204		2.4	%
Total	6,574,274		6,565,508		0.1	%
NAS net losses
Residential	(73,421	)	(67,428	)	(8.9	%)
Business	(29,853	)	(40,204	)	25.7	%
Total	(103,274	)	(107,632	)	4.0	%

(A)	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), respectively.
(B)	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.

BCE Supplementary Financial Information - First Quarter 2017 Page 8

Bell Wireline - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q1 17		TOTAL 2016		Q4 16		Q3 16		Q2 16		Q1 16
Bell Wireline
Operating revenues
Data	1,707		6,791		1,745		1,704		1,685		1,657
Local & access	775		3,089		753		766		781		789
Long distance	168		741		178		189		183		191
Other services	44		182		45		39		51		47
Total external service revenues	2,694		10,803		2,721		2,698		2,700		2,684
Inter-segment service revenues	49		177		49		50		39		39
Total operating service revenues	2,743		10,980		2,770		2,748		2,739		2,723
Data	123		559		171		129		122		137
Equipment & other	111		555		192		126		116		121
Total external product revenues	234		1,114		363		255		238		258
Inter-segment product revenues	3		10		4		2		2		2
Total operating product revenues	237		1,124		367		257		240		260
Total external revenues	2,928		11,917		3,084		2,953		2,938		2,942
Total operating revenues	2,980		12,104		3,137		3,005		2,979		2,983
Operating costs	(1,718	)	(7,062	)	(1,878	)	(1,752	)	(1,706	)	(1,726	)
Adjusted EBITDA	1,262		5,042		1,259		1,253		1,273		1,257
Adjusted EBITDA margin	42.3	%	41.7	%	40.1	%	41.7	%	42.7	%	42.1	%
Capital expenditures	691		2,936		778		756		733		669
Capital intensity	23.2	%	24.3	%	24.8	%	25.2	%	24.6	%	22.4	%
High-speed Internet
High-speed Internet net activations	14,989		85,099		18,402		39,375		7,539		19,783
High-speed Internet subscribers EOP (A) (B)	3,717,270		3,476,562		3,476,562		3,458,160		3,418,785		3,411,246
TV
Net subscriber (losses) activations	(15,663	)	6,413		(964	)	(4,723	)	2,101		9,999
IPTV	22,402		155,153		35,905		36,253		35,255		47,740
Total subscribers EOP (A)	2,837,353		2,744,909		2,744,909		2,745,873		2,750,596		2,748,495
IPTV (A)	1,465,007		1,337,944		1,337,944		1,302,039		1,265,786		1,230,531
Local
NAS (A)
Residential (A)	3,399,981		3,249,739		3,249,739		3,317,124		3,397,711		3,466,304
Business (A)	3,174,293		3,007,993		3,007,993		3,041,238		3,078,972		3,099,204
Total	6,574,274		6,257,732		6,257,732		6,358,362		6,476,683		6,565,508
NAS net losses
Residential	(73,421	)	(283,993	)	(67,385	)	(80,587	)	(68,593	)	(67,428	)
Business	(29,853	)	(131,415	)	(33,245	)	(37,734	)	(20,232	)	(40,204	)
Total	(103,274	)	(415,408	)	(100,630	)	(118,321	)	(88,825	)	(107,632	)

(A)	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), respectively.
(B)	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.

BCE Supplementary Financial Information - First Quarter 2017 Page 9

BCE ⁽²⁾
Net debt and other information

BCE - Net debt and preferred shares
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)
	March 31		December 31
	2017		2016
Debt due within one year	6,306		4,887
Long-term debt	17,757		16,572
Preferred shares - BCE (A)	2,002		2,002
Cash and cash equivalents	(510	)	(853	)
Net debt (3)	25,555		22,608
Net debt leverage ratio (3)	2.89		2.57
Adjusted EBITDA /net interest expense ratio (3)	9.27		9.31

Cash flow information
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q1 2017		Q1 2016		$ change		% change
Free cash flow (FCF) (3)
Cash flows from operating activities	1,313		1,290		23		1.8	%
Capital expenditures	(852	)	(852	)	-		-
Dividends paid on preferred shares	(43	)	(36	)	(7	)	(19.4	%)
Dividends paid by subsidiaries to non-controlling interest	(12	)	(12	)	-		-
Acquisition and other costs paid	83		28		55		n.m.
FCF	489		418		71		17.0	%

Cash flow information - Historical trend
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q1 2017		TOTAL 2016		Q4 2016		Q3 2016		Q2 2016		Q1 2016
FCF
Cash flows from operating activities	1,313		6,643		1,520		1,943		1,890		1,290
Capital expenditures	(852	)	(3,771	)	(993	)	(976	)	(950	)	(852	)
Dividends paid on preferred shares	(43	)	(126	)	(21	)	(34	)	(35	)	(36	)
Dividends paid by subsidiaries to non-controlling interest	(12	)	(46	)	(11	)	(13	)	(10	)	(12	)
Acquisition and other costs paid	83		126		28		31		39		28
Voluntary defined benefit pension plan contribution	-		400		400		-		-		-
FCF	489		3,226		923		951		934		418

^(A) Net debt includes 50% of preferred shares

BCE Supplementary Financial Information - First Quarter 2017 Page 10

BCE ⁽²⁾
Consolidated Statements of Financial Position

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	March 31 2017		December 31 2016
ASSETS
Current assets
Cash	439		603
Cash equivalents	71		250
Trade and other receivables	2,818		2,979
Inventory	428		403
Prepaid expenses	540		420
Assets held for sale	284		-
Other current assets	152		200
Total current assets	4,732		4,855
Non-current assets
Property, plant and equipment	23,450		22,346
Intangible assets	13,356		11,998
Deferred tax assets	171		89
Investments in associates and joint ventures	879		852
Other non-current assets	875		1,010
Goodwill	10,386		8,958
Total non-current assets	49,117		45,253
Total assets	53,849		50,108
LIABILITIES
Current liabilities
Trade payables and other liabilities	4,044		4,326
Interest payable	177		156
Dividends payable	636		617
Current tax liabilities	62		122
Debt due within one year	6,306		4,887
Total current liabilities	11,225		10,108
Non-current liabilities
Long-term debt	17,757		16,572
Deferred tax liabilities	2,158		2,192
Post-employment benefit obligations	2,252		2,105
Other non-current liabilities	1,264		1,277
Total non-current liabilities	23,431		22,146
Total liabilities	34,656		32,254
EQUITY
Equity attributable to BCE shareholders
Preferred shares	4,004		4,004
Common shares	20,023		18,370
Contributed surplus	1,137		1,160
Accumulated other comprehensive income	37		46
Deficit	(6,324	)	(6,040	)
Total equity attributable to BCE shareholders	18,877		17,540
Non-controlling interest	316		314
Total equity	19,193		17,854
Total liabilities and equity	53,849		50,108
Number of common shares outstanding (millions)	899.5		870.7

BCE Supplementary Financial Information - First Quarter 2017 Page 11

BCE ⁽²⁾
Consolidated Cash Flow Data

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q1 2017		Q1 2016		$ change
Net earnings	725		758		(33	)
Adjustments to reconcile net earnings to cash flows from operating activities
Severance, acquisition and other costs	84		42		42
Depreciation and amortization	907		888		19
Post-employment benefit plans cost	68		68		-
Net interest expense	230		218		12
Losses (gains) on investments	12		(16	)	28
Income taxes	263		259		4
Contributions to post-employment benefit plans	(88	)	(90	)	2
Payments under other post-employment benefit plans	(19	)	(19	)	-
Severance and other costs paid	(41	)	(86	)	45
Interest paid	(223	)	(221	)	(2	)
Income taxes paid (net of refunds)	(288	)	(238	)	(50	)
Acquisition and other costs paid	(83	)	(28	)	(55	)
Net change in operating assets and liabilities	(234	)	(245	)	11
Cash flows from operating activities	1,313		1,290		23
Capital expenditures	(852	)	(852	)	-
Cash dividends paid on preferred shares	(43	)	(36	)	(7	)
Cash dividends paid by subsidiaries to non-controlling interest	(12	)	(12	)	-
Acquisition and other costs paid	83		28		55
Free cash flow	489		418		71
Business acquisitions	(1,635	)	(245	)	(1,390	)
Acquisition and other costs paid	(83	)	(28	)	(55	)
Business dispositions	-		16		(16	)
Other investing activities	(9	)	35		(44	)
Increase in notes payable and bank advances	308		725		(417	)
Increase in securitized trade receivables	350		-		350
Issue of long-term debt	1,496		747		749
Repayment of long-term debt	(604	)	(1,310	)	706
Issue of common shares	48		73		(25	)
Repurchase of shares for settlement of share-based payments	(96	)	(68	)	(28	)
Cash dividends paid on common shares	(594	)	(526	)	(68	)
Other financing activities	(13	)	(27	)	14
	(832	)	(608	)	(224	)
Net decrease in cash and cash equivalents	(343	)	(190	)	(153	)
Cash and cash equivalents at beginning of period	853		613		240
Cash and cash equivalents at end of period	510		423		87

BCE Supplementary Financial Information - First Quarter 2017 Page 12

BCE
Consolidated Cash Flow Data - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q1 17		TOTAL 2016		Q4 16		Q3 16		Q2 16		Q1 16
Net earnings	725		3,087		699		800		830		758
Adjustments to reconcile net earnings to cash flows from operating activities
Severance, acquisition and other costs	84		135		11		25		57		42
Depreciation and amortization	907		3,508		884		867		869		888
Post-employment benefit plans cost	68		305		80		80		77		68
Net interest expense	230		875		220		222		215		218
Losses (gains) on investments	12		(58	)	(10	)	(34	)	2		(16	)
Income taxes	263		1,110		252		284		315		259
Contributions to post-employment benefit plans	(88	)	(725	)	(477	)	(78	)	(80	)	(90	)
Payments under other post-employment benefit plans	(19	)	(76	)	(21	)	(17	)	(19	)	(19	)
Severance and other costs paid	(41	)	(231	)	(36	)	(48	)	(61	)	(86	)
Interest paid	(223	)	(882	)	(221	)	(219	)	(221	)	(221	)
Income taxes paid (net of refunds)	(288	)	(565	)	(102	)	(123	)	(102	)	(238	)
Acquisition and other costs paid	(83	)	(126	)	(28	)	(31	)	(39	)	(28	)
Net change in operating assets and liabilities	(234	)	286		269		215		47		(245	)
Cash flows from operating activities	1,313		6,643		1,520		1,943		1,890		1,290
Capital expenditures	(852	)	(3,771	)	(993	)	(976	)	(950	)	(852	)
Cash dividends paid on preferred shares	(43	)	(126	)	(21	)	(34	)	(35	)	(36	)
Cash dividends paid by subsidiaries to non-controlling interest	(12	)	(46	)	(11	)	(13	)	(10	)	(12	)
Acquisition and other costs paid	83		126		28		31		39		28
Voluntary defined benefit pension plan contribution	-		400		400		-		-		-
Free cash flow	489		3,226		923		951		934		418
Business acquisitions	(1,635	)	(404	)	(158	)	-		(1	)	(245	)
Acquisition and other costs paid	(83	)	(126	)	(28	)	(31	)	(39	)	(28	)
Voluntary defined benefit pension plan contribution	-		(400	)	(400	)	-		-		-
Business dispositions	-		18		(2	)	2		2		16
Decrease in investments	-		107		85		22		-		-
Acquisition of spectrum licences	-		(1	)	-		-		(1	)	-
Loan to related party	-		(517	)	(7	)	(510	)	-		-
Other investing activities	(9	)	(16	)	(16	)	(21	)	(14	)	35
Increase in notes payable and bank advances	308		991		89		4		173		725
Increase (reduction) in securitized trade receivables	350		-		(305	)	305		-		-
Issue of long-term debt	1,496		2,244		-		1,497		-		747
Repayment of long-term debt	(604	)	(2,516	)	(124	)	(812	)	(270	)	(1,310	)
Issue of common shares	48		99		1		6		19		73
Repurchase of shares for settlement of share-based payments	(96	)	(106	)	(12	)	(15	)	(11	)	(68	)
Cash dividends paid on common shares	(594	)	(2,305	)	(593	)	(594	)	(592	)	(526	)
Other financing activities	(13	)	(54	)	7		(26	)	(8	)	(27	)
	(832	)	(2,986	)	(1,463	)	(173	)	(742	)	(608	)
Net (decrease) increase in cash and cash equivalents	(343	)	240		(540	)	778		192		(190	)
Cash and cash equivalents at beginning of period	853		613		1,393		615		423		613
Cash and cash equivalents at end of period	510		853		853		1,393		615		423

BCE Supplementary Financial Information - First Quarter 2017 Page 13

Accompanying Notes

(1)	We report our results in three segments: Bell Wireless, Bell Wireline and Bell Media. Our reporting structure reflects how we manage our business and how we classify our results for planning and measuring performance. Throughout this report, we, us, our, the company and BCE 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.
(2)	On March 17, 2017, BCE acquired all of the issued and outstanding common shares of MTS. Bell MTS offers wireless, Internet, TV, phone services, security systems and information solutions including unified cloud and managed services to residential and business customers in Manitoba. The results from the acquired MTS operations are included in our Bell Wireline and Wireless segments. For further details see note 3, Business acquisitions and dispositions, of the Q1 2017 financial statements.
(3)	Non-GAAP 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 on our Q1 2017 results, or for any previously reported results in 2016, 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 International Financial Reporting Standards (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 (including post-employment benefit plans service cost) as shown in BCE’s consolidated income statements. Adjusted EBITDA for BCE’s segments is the same as segment profit as reported in BCE’s 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 also is 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, adjusted EBITDA may be reconciled to net earnings as shown in this document. Adjusted net earnings and adjusted earnings per share (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.

BCE Supplementary Financial Information - First Quarter 2017 Page 14

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. We exclude these items because they affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. Excluding these items does not imply they are non-recurring.

The most comparable IFRS financial measures are net earnings attributable to common shareholders and EPS, as reconciled in this document.

Free cash flow

The term free cash flow does not have any standardized meaning under IFRS. Therefore, it is 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, as reconciled in this document.

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 this document.
 

BCE Supplementary Financial Information - First Quarter 2017 Page 15

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 twelve-month 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.

(4)

Key performance indicators (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. Capital intensity is capital expenditures divided by operating revenues. 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 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. 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.

BCE Supplementary Financial Information - First Quarter 2017 Page 16

EX-99.3

Exhibit 99.3

Form 52-109F2 – Certification of Interim Filings - Full Certificate

I, George A. Cope, President and Chief Executive Officer of BCE Inc., certify the following:

1. Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of BCE Inc. (the “issuer”) for the interim period ended March 31, 2017.

2. No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3. Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4. Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.

5. Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings

A.	designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
		I.	material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
		II.	information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
B.	designed ICFR, or caused it 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 the issuer’s GAAP.

5.1 Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

5.2 N/A

5.3 Limitation on scope of design: The issuer has disclosed in its interim MD&A

A.	the fact that the issuer’s other certifying officer(s) and I have limited the scope of our design of DC&P and ICFR to exclude controls, policies and procedures of a business that the issuer acquired not more than 365 days before the last day of the period covered by the interim filings; and
B.	summary financial information about the business that the issuer acquired that has been consolidated in the issuer’s financial statements.

6. Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on January 1, 2017 and ended on March 31, 2017 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: April 26, 2017

(signed) George A. Cope

George A. Cope
President and Chief Executive Officer

Form 52-109F2 – Certification of Interim Filings - Full Certificate

I, Glen LeBlanc, Executive Vice-President and Chief Financial Officer of BCE Inc., certify the following:

1. Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of BCE Inc. (the “issuer”) for the interim period ended March 31, 2017.

2. No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3. Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4. Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.

5. Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings

A.	designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
		I.	material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
		II.	information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
B.	designed ICFR, or caused it 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 the issuer’s GAAP.

5.1 Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

5.2 N/A

5.3 Limitation on scope of design: The issuer has disclosed in its interim MD&A

A.	the fact that the issuer’s other certifying officer(s) and I have limited the scope of our design of DC&P and ICFR to exclude controls, policies and procedures of a business that the issuer acquired not more than 365 days before the last day of the period covered by the interim filings; and
B.	summary financial information about the business that the issuer acquired that has been consolidated in the issuer’s financial statements.

6. Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on January 1, 2017 and ended on March 31, 2017 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: April 26, 2017

(signed) Glen LeBlanc

Glen LeBlanc
Executive Vice-President and Chief Financial Officer

EX-99.4

Exhibit 99.4

For Immediate Release

This news release contains forward-looking statements. For a description of the related risk factors and assumptions please see the section entitled “Caution Concerning Forward-Looking Statements” later in this release.

BCE reports first quarter 2017 results, announces updated 2017 financial targets

• Net earnings of $725 million with net earnings attributable to common shareholders of $679 million, or $0.78 per common share; adjusted net earnings of $758 million delivered 2.4% increase in adjusted EPS of $0.87
• Cash flow from operating activities of $1,313 million; free cash flow up 17.0%
• Service revenue growth of 2.9% and disciplined subscriber acquisition delivered 2.4% increase in BCE adjusted EBITDA and higher margin of 41.1% despite regulatory financial impacts in the quarter
• 73,000 broadband subscriber net additions in postpaid wireless, IPTV and Internet
• Strong wireless results: 35,782 postpaid net additions, up 38.7%; 8.0% increase in service revenue on 4.2% higher ARPU; adjusted EBITDA growth of 7.5%
• Wireline adjusted EBITDA growth of 0.4%, positive for an 11^th consecutive quarter; industry-leading margin increased to 42.3% on 0.5% lower operating costs
• Rollout of Bell fibre to 1.1 million Montréal homes and businesses announced; by the end of 2017, more than 3.6 million locations in 7 provinces expected to have direct fibre connections
• Acquisition of Manitoba Telecom Services successfully completed March 17; BCE updates 2017 financial targets, Bell MTS integration under way

MONTRÉAL, April 26, 2017 – BCE Inc. (TSX, NYSE: BCE), Canada’s largest communications company, today reported results for the first quarter (Q1) of 2017 and provided updated financial guidance targets for 2017 to reflect the acquisition of Manitoba Telecom Services Inc. (MTS).

FINANCIAL HIGHLIGHTS
($ millions except per share amounts) (unaudited)	Q1 2017	Q1 2016	% change
BCE
Operating revenues	5,384	5,270	2.2%
Net earnings	725	758	(4.4%)
Net earnings attributable to common shareholders	679	707	(4.0%)
Adjusted net earnings(1)	758	734	3.3%
Adjusted EBITDA(2)	2,214	2,163	2.4%
EPS	0.78	0.82	(4.9%)
Adjusted EPS(1)	0.87	0.85	2.4%
Cash flows from operating activities	1,313	1,290	1.8%
Free cash flow(3)	489	418	17.0%

“Bell’s broadband strategy continued to gain momentum in a marketplace marked by intense competition, regulatory impacts, and a clear opportunity for Bell’s superior network, service and media innovations to stand out. With efficient operation and marketplace discipline, the Bell team’s focus on bringing the highest-quality communications to Canadians resulted in service revenue, adjusted EBITDA, and free cash flow growth and a gain of 73,000 new broadband IPTV, Internet and postpaid wireless customers in Q1,” said George Cope, President and CEO

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of BCE and Bell Canada. “Reflecting our mobile network leadership, Bell wireless posted very strong increases in postpaid net subscribers, revenue and adjusted EBITDA. In wireline, ongoing usage growth and competitive discipline in subscriber acquisition for our superior Fibe TV and Internet services delivered residential service revenue growth and our 11^th straight quarter of wireline adjusted EBITDA growth. Bell Media’s leadership across multimedia segments and ongoing innovation in next-generation platforms like CraveTV resulted in revenue growth despite the impact of unfortunate regulatory decisions and a soft ad market.”

“We welcomed Manitoba Telecom Services to Bell in Q1 and launched the new Bell MTS, combining the local talent and expertise of the MTS team with Bell’s national scale to expand broadband wireless, TV and Internet services throughout Manitoba,” said Mr. Cope. “As we announce our Q1 2017 results, BCE is proud to hold our annual general meeting of shareholders here today in Ottawa at the National Gallery, celebrating 150 years of Confederation and Bell’s own 137th anniversary in 3 days. Bell has been a partner in Canada’s growth and prosperity since 1880, and our team will continue to lead investment in the world-class network infrastructure, service and media innovations that will keep Canada at the forefront of broadband communications worldwide.”

Bell is focused on achieving a clear goal – to be recognized by customers as Canada’s leading communications company – through the execution of 6 Strategic Imperatives: Invest in Broadband Networks & Services, Accelerate Wireless, Leverage Wireline Momentum, Expand Media Leadership, Improve Customer Service, and Achieve a Competitive Cost Structure. This broadband leadership strategy has delivered world-class fibre and wireless LTE networks; continued strong performance across wireless, TV, Internet and media growth services; 46 consecutive quarters of uninterrupted year-over-year adjusted EBITDA growth; and 13 increases to the BCE common share dividend since the end of 2008 – a total increase of 97%.

CORPORATE DEVELOPMENTS

For full details of BCE’s corporate developments in the quarter, please refer to the BCE Q1 2017 Shareholder Report at BCE.ca.

Acquisition of MTS completed

BCE launched Bell MTS in Manitoba following the completion of its acquisition of MTS on March 17. Uniting the local and national strengths of MTS and Bell, the new Bell MTS will bring unprecedented expansion in broadband communications to Manitoba cities, traffic corridors, rural communities and remote locations with Bell’s 5-year, $1 billion capital investment plan for the province.

City of Montréal fibre infrastructure buildout

Bell plans to invest a further $854 million to bring direct fibre links and the fastest Internet speeds available to 1.1 million residences and business locations throughout the City of Montréal. By the end of the year, Bell’s direct fibre connections will reach approximately 40% of homes and businesses throughout the province of Québec, and more than 3.6 million total locations across 7 provinces.

Bell Mobility LTE network first in North America to be Quad Band capable

Bell Mobility announced on April 20 that its award-winning LTE network is the first in North America capable of delivering Quad Band LTE Advanced (LTE-A) speeds; with 256 QAM (quadrature amplitude modulation) enhancements, the network can now deliver mobile data speeds up to 750 Mbps, with expected average speeds of 22 to 174 Mbps. Bell also announced the new Samsung Galaxy S8 and S8+ smartphones will be the first devices able to take advantage of these network speeds with a software update available in coming months.

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Common share dividend increase

BCE announced a 5.1% increase in the annual common share dividend, from $2.73 per share to $2.87 per share, effective with BCE’s 2017 first quarter dividend paid on April 15, 2017. It’s BCE’s 13^th such increase since the end of 2008, representing overall growth of 97% in the BCE annual common share dividend.

$1.5 billion public debt offering

On February 27, Bell Canada completed a public offering of $1.5 billion of medium term notes (MTN) debentures in 2 series: the $1 billion 2.7% Series M-44 maturing on February 27, 2024, and the $500 million 4.45% Series M-45 maturing on February 27, 2047. The net proceeds were used to partially fund BCE’s acquisition of MTS and repay short-term debt.

Karen Sheriff nominated to the BCE Board

On March 8, BCE announced the nomination of Karen Sheriff to the Board of Directors. One of Canada’s most successful communications executives, Ms. Sheriff was most recently CEO of Q9 Networks and earlier CEO of Bell Aliant. Ronald Brenneman retires from the Board at BCE’s annual general shareholder meeting today after more than 13 years of distinguished service, including as Chair of the Management Resources and Compensation Committee and a member of the Pension Fund Committee.

BCE RESULTS

“Our Q1 financial results demonstrated a very good start to 2017, reflecting our team’s consistent execution in an intensely competitive marketplace and focused commitment to deliver profitable subscriber growth, control costs and invest significantly in advanced wireless and wireline broadband fibre networks to well position Bell for future growth,” said Glen LeBlanc, Chief Financial Officer of BCE and Bell Canada. “Our successful closing of the MTS acquisition supports the increased 2017 financial guidance targets we announced today. With its immediate free cash flow accretion, upsized operational synergies of $100 million and substantial tax savings, Bell MTS fully supports our broadband leadership strategy and our dividend growth objective.”

BCE operating revenue was up 2.2% in Q1 to $5,384 million, reflecting service revenue growth for all 3 Bell operating segments. Product revenue declined 8.0% to $333 million, reflecting intensely competitive mobile handset promotional discounting and lower wireline product sales to business customers.

Net earnings decreased 4.4% to $725 million in Q1 while net earnings attributable to common shareholders totalled $679 million, or $0.78 per share, down 4.0% and 4.9% respectively, due to higher severance, acquisition and other costs and an increased average number of BCE common shares outstanding, both due to the acquisition of MTS. Excluding severance, acquisition and other costs, net losses or gains on investments, impairment charges and early debt redemption costs, adjusted net earnings increased 3.3% to $758 million, or $0.87 per common share.

BCE’s adjusted EBITDA grew 2.4% to $2,214 million in Q1, driven by increases of 7.5% at Bell Wireless and 0.4% at Bell Wireline, which reflected a nominal financial contribution from the acquisition of MTS completed on March 17. This was partly offset by a 7.6% decline in adjusted EBITDA at Bell Media due primarily to the loss of simultaneous substitution rights for Super Bowl LI.

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BCE’s consolidated adjusted EBITDA margin⁽²⁾ increased modestly to 41.1% in Q1 from 41.0% last year as the flow-through of strong wireless service revenue growth and wireline operating cost savings more than offset greater wireless postpaid subscriber acquisition and retention spending, richer wireline customer acquisition and retention discounts offered to match aggressive competitor bundle promotions, higher media content costs, and the margin impact from the ongoing decline in traditional voice services.

Consolidated adjusted EBITDA and margin performance in Q1 was also unfavourably impacted by CRTC decisions related to wholesale Internet tariffs, customer cancellation refunds and Super Bowl simultaneous substitution, all of which collectively totalled approximately $35 million.

BCE continued its strategic investment in advanced broadband wireline and wireless infrastructure with capital expenditures of $852 million in Q1, the same total as in Q1 2016. This represented a capital intensity⁽⁴⁾ ratio (capital expenditures as a percentage of total revenue) improvement to 15.8% this quarter from 16.2% in Q1 2016. Capital investment focused on expanding broadband fibre directly to more homes and businesses, including the build-out of Gigabit Fibe infrastructure in Toronto and other urban locations; continued investment in Bell’s leading LTE and LTE Advanced (LTE-A) networks, including the deployment of small-cell technology to optimize coverage, signal quality and data capacity; and wireless and Internet network capacity to support subscriber growth and accelerating data usage.

BCE cash flows from operating activities were $1,313 million, up 1.8% from $1,290 million in Q1 2016, the result of higher adjusted EBITDA, lower severance and other costs paid, and a positive change in working capital. This was partly offset by higher acquisition and other costs paid related mainly to the MTS acquisition and higher income taxes. BCE free cash flow generated this quarter was $489 million, 17.0% higher than last year, driven by increased cash flows from operating activities excluding acquisition and other costs paid.

In Q1 2017, BCE gained 35,782 net new wireless postpaid customers, and reported a net loss of 35,110 prepaid subscribers; 22,402 net new Fibe TV customers, and a net loss of 38,065 satellite TV customers; and 14,989 net new high-speed Internet customers. NAS line net losses totalled 103,274. As a result of the MTS acquisition, Bell’s wireless subscriber base increased by 476,932 (including 418,427 postpaid customers), while high-speed internet, TV and NAS subscribers increased by 229,470, 108,107 (including 104,661 IPTV customers) and 419,816 respectively.

Total BCE customer connections across all services, including MTS, totalled 22,075,373 at the end of Q1, up 5.3% from the year before. The total includes 8,946,476 wireless customers, up 8.6% over last year (including 8,144,936 postpaid customers, an increase of 10.0%); total high-speed Internet subscribers of 3,717,270, up 9.0%; total TV subscribers of 2,837,353, up 3.2% (including 1,465,007 Fibe TV customers, an increase of 19.1%); and total NAS lines of 6,574,274, an increase of 0.1%.

BCE OPERATING RESULTS BY SEGMENT

Bell Wireless

Wireless revenue growth further accelerated in Q1, increasing 7.1% over Q1 2016 to $1,814 million. Service revenue increased 8.0% to $1,715 million, driven by an expanding postpaid subscriber base, strong growth in blended average revenue per user (ARPU)⁽⁴⁾ and a favourable contribution from MTS. Despite a higher number of subscriber gross additions and customer

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device upgrades year over year, product revenue decreased 5.7% to $99 million due to competitive promotional smartphone pricing.

Wireless adjusted EBITDA grew 7.5% to $818 million, from $761 million in Q1 2016, on the flow-through of strong service revenue growth and price discipline, yielding a service revenue margin of 47.7%. This was achieved even with a $35 million increase in total combined retention spending and subscriber acquisition costs, which increased operating costs 6.9% over Q1 last year.

• Postpaid gross additions totalled 296,616, up 7.7% over Q1 2016, driving 38.7% higher postpaid net additions of 35,782. This strong performance reflects Bell’s mobile network leadership, leading line-up of high-demand smartphones and other mobile devices, and effective sales execution across all retail channels.
• Postpaid customer churn⁽⁴⁾ increased 0.02 percentage points in Q1 to 1.17% due to the remaining deactivation of low-ARPU customers from the loss of a corporate contract in 2016.
• At the end of Q1 2017, Bell Wireless postpaid customers totalled 8,144,936, a 10.0% increase over last year. Total wireless customers grew 8.6% to 8,946,476. This included 476,932 subscribers acquired from MTS (418,427 on postpaid service). Subsequent to the end of the quarter on April 1, approximately one-quarter of the acquired MTS postpaid subscribers were sold to Telus.
• Blended ARPU grew 4.2% to $65.66 from a more favourable postpaid subscriber mix, increased LTE data usage, reflected in a greater number of subscribers on plans with larger data thresholds, and the flow-through of 2016 industry pricing initiatives to reflect the weaker Canadian dollar and its impact on handset costs.
• Bell’s mobile LTE network provided coverage to almost 98% of Canadians at the end of Q1, including 74% of the population covered by LTE Advanced service. The percentage of postpaid subscribers with LTE devices reached 83% in Q1, up from 73% at the same last year.

Bell Wireline

Wireline service revenue increased 0.7% to $2,743 million, reflecting positive residential services revenue growth from broadband Internet and IPTV customer gains and higher household ARPU, improved business performance supported by the acquisition of data centre operator Q9, and the incremental financial contribution starting March 17 from the MTS acquisition.

Lower product revenue, together with the financial impact from downward revisions to wholesale Internet tariffs and refunds for cancelled services as mandated by the CRTC, contributed to a 0.1% decrease in Q1 Bell Wireline operating revenue to $2,980 million.

Wireline adjusted EBITDA increased 0.4% to $1,262 million in Q1, even with approximately $19 million in unfavourable regulatory-related financial impacts in the quarter. Operating costs improved 0.5% to $1,718 million, driving a 0.2 percentage-point increase in our industry-leading margin of 42.3%. This reduction in operating costs reflected ongoing disciplined cost management, fibre-related savings and further service improvement efficiencies.

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• Bell TV added 22,402 net new Fibe TV subscribers in Q1, a decrease from 47,740 gained last year due to a higher number of Bell retail customers with expired pricing promotions, reduced new footprint expansion and maturing penetration in current Fibe TV markets, fewer satellite TV migrations, and growing over-the-top substitution. Together with 104,661 IPTV subscribers gained from the MTS acquisition, these new Fibe TV net additions increased BCE’s total IPTV customer base to 1,465,007 at the end of Q1, up 19.1% over last year.
• Satellite TV net customer losses were relatively stable at 38,065 compared to 37,741 in Q1 last year. At the end of Q1, BCE had a total of 2,837,353 TV subscribers (including a total of 108,107 from the MTS acquisition), compared to 2,748,495 at Q1 2016.
• High-speed Internet net additions totalled 14,989 compared to 19,783 in Q1 2016. Despite higher year-over-year growth in residential customer activations driven by an expanding fibre footprint, total Internet net additions decreased due to higher customer churn from exceptionally aggressive bundle promotions by cable competitors.
• BCE’s high-speed Internet customer base totalled 3,717,270 at the end of Q1, up 9.0% year over year, which also included 229,470 customers gained from the MTS acquisition.
• Wireline data service revenue increased 3.0% to $1,707 million, reflecting Internet and TV subscriber, usage and ARPU growth and higher business service solutions revenue reflecting the incremental financial contribution of Q9.
• Wireline product revenue decreased 8.8% to $237 million, due to lower year-over-year equipment sales to large enterprise business and wholesale customers.
• Residential NAS net losses increased 8.9% to 73,421 from 67,428 in Q1 2016, the result of aggressive bundle promotions by cable competitors and ongoing wireless and Internet technology substitution.
• Business NAS net losses improved 25.7%, to 29,853 from 40,204 in Q1 last year, due to fewer large business customer deactivations and improved small business performance.
• Total NAS access lines at the end of Q1 2017 totalled 6,574,274, up 0.1% over Q1 last year, including 419,816 subscribers gained from the MTS acquisition. Local and access revenue decreased 1.8% to $775 million due mainly to ongoing NAS erosion and CRTC-mandated customer refunds for cancelled services. Long distance revenue was down 12.0% to $168 million due to NAS losses, technology substitution by wireless and Internet technology, and lower sales of international long distance to wholesale customers.

Bell Media

Media operating revenue increased 1.3% to $751 million, up from $741 million in Q1 last year. Strong subscriber revenue growth in the quarter reflected the national expansion of The Movie Network (TMN) beginning in March 2016, contract renewals with several TV distributors, and higher revenues from CraveTV and TV Everywhere GO products.

Advertising revenue was impacted by the CRTC’s decision to ban simultaneous substitution for Super Bowl LI as well as continued soft TV and radio advertising markets. This was partly offset by modestly higher year-over-year revenues from Bell Media’s specialty sports and news channels and growth in outdoor advertising at Astral Out of Home (OOH).

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Media adjusted EBITDA decreased 7.6% to $134 million, from $145 million in Q1 2016, the result of a 3.5% increase in operating costs from higher costs for sports broadcast rights and CraveTV programming expansion, TMN’s national expansion, and increased costs at Astral OOH from acquisitions and the execution of new contracts. Excluding the Super Bowl financial impact, Bell Media adjusted EBITDA in Q1 was stable compared to last year.

• CTV was the top ranked Canadian network for the 13^th consecutive winter season among total viewers and in all key adult demographics in primetime, with 9 of the top 20 programs among total viewers and 10 of the top 20 in all key adult demographics.
• Bell Media English specialty and pay TV properties reached 81% of Canadian English-language specialty and pay TV viewers in the average week. Bell Media had 9 of the top 20 Entertainment programs among overall viewers in Q1, and 4 of the top 10 specialty and pay channels among viewers aged 25 to 54: TSN, Discovery, Space and TMN.
• Bell Media maintained its leadership position in the Québec market with audiences for specialty and pay TV reaching 77% of all French-language TV viewers in the average week in Q1. Three of the top 5 specialty and pay channels among key viewers aged 25 to 54 are Bell Media properties: RDS, Super Écran and Canal D.
• Core primetime viewership for TSN was up 13% over Q1 last year, supported by higher average audiences for the Toronto Raptors, NCAA Football, Australian Open Tennis and NASCAR. In February, TSN and RDS reached a multi-year contract extension with NASCAR, retaining exclusive Canadian media rights to all Monster Energy NASCAR Cup Series and NASCAR Xfinity Series races across all platforms, including exclusive Canadian coverage of the Daytona 500.
• Bell Media continued to lead in digital media among Canadian broadcast and video network competitors, reaching a record 62% of the digital audience and 19 million unique monthly visitors in Q1, with average monthly time spent of 851 million minutes and 48 million videos viewed.
• Bell Media remained Canada’s top radio broadcaster in Q1, reaching 16.7 million listeners who spent more than 75 million hours tuned in each week.
• Bell Media and its production partners were honoured with 53 awards by the Academy of Canadian Cinema and Television at the recent annual Canadian Screen Awards. Showcasing its growing commitment to creating and developing exceptional original Canadian content, Bell Media and its partners took home 35 TV awards, with wins in major categories including Best News, Best Dramatic Series, Best Comedy Series and Best Reality/Competition, Best Music and Best Talk Program or Series. TSN won 4 awards, more than all other sports broadcasters, including Best Direction in a Live Sporting Event for the 2016 Grey Cup. Bell Media-supported film projects won 18 awards, including Best Motion Picture, Best Direction, Best Performance by an Actress in a Leading Role, and Best Original Screenplay.

COMMON SHARE DIVIDEND

BCE’s Board of Directors has declared a quarterly dividend of $0.7175 per common share, payable on July 15, 2017 to shareholders of record at the close of business on June 15, 2017.

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OUTLOOK FOR 2017

As a result of the closing of the acquisition of MTS on March 17, 2017, BCE has updated its financial guidance targets for 2017 as follows:

	February 2 Guidance	April 26 Guidance
Revenue growth	1% – 2%	4% – 6%
Adjusted EBITDA growth	1.5% – 2.5%	4% – 6%
Capital intensity	approx. 17%	approx. 17%
Adjusted EPS	$3.42 – $3.52	$3.30 – $3.40
Free cash flow growth	approx. 3% – 7%	approx. 5% – 10%
Annualized common dividend per share	$2.87	$2.87
Dividend payout policy(3)	65% – 75% of free cash flow	65% – 75% of free cash flow

CALL WITH FINANCIAL ANALYSTS

BCE will hold a conference call for financial analysts to discuss Q1 2017 results and updated 2017 financial guidance on Wednesday, April 26 at 8:00 am (Eastern). Media are welcome to participate on a listen-only basis. Please dial toll-free 1-866-223-7781 or 416-340-2216. A replay will be available for one week by dialing 1-800-408-3053 or 905-694-9451 and entering pass code 5361883#.

A live audio webcast of the conference call will be available on BCE’s website at: BCE Q1-2017 conference call. The mp3 file will be available for download on this page later in the day.

NOTES

The information contained in this news release is unaudited.

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 on our Q1 2017 results, or for any previously reported results in 2016, as a result of this change.

(1) 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 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. 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.

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($ millions except per share amounts)
	Q1 2017		Q1 2016
	TOTAL	PER SHARE	TOTAL	PER SHARE
Net earnings attributable to common shareholders	679	0.78	707	0.82
Severance, acquisition and other costs	65	0.07	31	0.03
Net losses (gains) on investments	14	0.02	(12)	(0.01)
Early debt redemption costs	-	-	8	0.01
Adjusted net earnings	758	0.87	734	0.85

(2) 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 Q1 2017 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 EDITDA.

($ millions)
	Q1 2017	Q1 2016
Net earnings	725	758
Severance, acquisition and other costs	84	42
Depreciation	722	739
Amortization	185	149
Finance costs
Interest expense	234	219
Interest on post-employment benefit obligations	18	20
Other income	(17)	(23)
Income taxes	263	259
Adjusted EBITDA	2,214	2,163
BCE operating revenues	5,384	5,270
Adjusted EBITDA margin	41.1%	41.0%

(3) 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

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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.

($ millions)
	Q1 2017	Q1 2016
Cash flows from operating activities	1,313	1,290
Capital expenditures	(852)	(852)
Cash dividends paid on preferred shares	(43)	(36)
Cash dividends paid by subsidiaries to non-controlling interest	(12)	(12)
Acquisition and costs paid	83	28
Free cash flow	489	418

(4) We use ARPU, churn and capital intensity to measure the success of our strategic imperatives. These key performance indicators are not accounting measures and may not be comparable to similar measures presented by other issuers.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

Certain statements made in this news release are forward-looking statements. These statements include, without limitation, statements relating to our 2017 financial guidance (including revenues, adjusted EBITDA, capital intensity, adjusted EPS and free cash flow), BCE’s 2017 annualized common share dividend and common share dividend payout policy, our network deployment plans and related capital investments, our business outlook, objectives, plans and strategic priorities, and other statements that are not historical facts. 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 Private Securities Litigation Reform Act of 1995.

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. The forward-looking statements contained in this news release describe our

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expectations as of April 26, 2017 and, accordingly, are subject to change after such date. Except as may be required by Canadian securities laws, we do not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Except as otherwise indicated by BCE, 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 April 26, 2017. The financial impact of these transactions and special items can be complex and depends on the facts particular to each of them. We therefore cannot describe the expected impact in a meaningful way or in the same way we present known risks affecting our business. Forward-looking statements are presented in this news release for the purpose of assisting investors and others in understanding certain key elements of our expected 2017 financial results, as well as our objectives, strategic priorities and business outlook for 2017, and in obtaining a better understanding of our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.

Material Assumptions

A number of economic, market, operational and financial assumptions were made by BCE in preparing its forward-looking statements contained in this news release, including, but not limited to:

Canadian Economic and Market Assumptions

• Gradual improvement in economic growth, given the Bank of Canada’s most recent estimated growth in Canadian gross domestic product of 2.6% in 2017, representing a 50 basis-point increase from an earlier estimate of 2.1%
• Modest employment growth, as the overall level of business investment is expected to remain soft
• 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.
• A higher level of wireline and wireless competition in consumer, business and wholesale markets
• Higher, but slowing, wireless industry penetration and smartphone adoption
• Wireless industry pricing discipline maintained
• Soft media advertising market expected, due to variable demand, and escalating costs to secure TV programming

Assumptions Concerning our Bell Wireless Segment

• Maintain our market share of incumbent wireless postpaid subscriber activations
• Continued adoption of smartphone devices, tablets and data applications, as well as the introduction of more 4G LTE 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 from price increases
• Completion of the LTE network buildout to 99% of the Canadian population and expansion of the LTE-A network coverage to approximately 87% of the Canadian population, including Manitoba
• Ability to monetize increasing data usage and customer subscriptions to new data services

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• 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

Assumptions Concerning our Bell Wireline Segment

• 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
• 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
• TV unbundling will not materially accelerate the downsizing of TV packages by customers
• 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
• Softer wholesale financial performance due to a CRTC decision in October 2016 that significantly lowered capacity-based billing rates for aggregated wholesale high-speed Internet access services
• No other changes in regulations affecting our wireline business having material financial, operational or competitive consequences

Assumptions Concerning our Bell Media Segment

• Higher year-over-year revenue, reflecting further CraveTV subscriber growth, The Movie Network’s national expansion that began in March 2016, and growth in outdoor advertising supported by acquisitions and new contract wins
• 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 moderately lower subscriber levels for many Bell Media TV properties
• No material financial, operational or competitive consequences of changes in regulations affecting our media business

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Financial Assumptions Concerning BCE

The following constitute BCE’s principal financial assumptions for 2017:

• total post-employment benefit plans cost to be approximately $320 million to $340 million, based on an estimated accounting discount rate of 4.0%, comprised of an estimated above adjusted EBITDA post-employment benefit plans service cost of approximately $250 million to $260 million and an estimated below adjusted EBITDA net post-employment benefit plans financing cost of approximately $70 million to $80 million
• depreciation and amortization expense of approximately $3,850 million to $3,900 million
• net interest expense of approximately $950 million to $975 million
• tax adjustments (per share) of approximately $0.01
• an effective tax rate of approximately 27%
• non-controlling interest (NCI) of approximately $50 million
• total pension plan cash funding of approximately $400 million to $450 million
• cash taxes of approximately $650 million to $700 million
• net interest payments of approximately $950 million to $975 million
• other free cash flow items, which include working capital changes, severance and other costs paid, preferred share dividends and NCI paid, of approximately ($25) million to ($150) million
• average BCE common shares outstanding of approximately 895 million
• an annual common share dividend of $2.87 per share

The foregoing assumptions, although considered reasonable by BCE on April 26, 2017, may prove to be inaccurate. Accordingly, our actual results could differ materially from our expectations as set forth in this news release.

Material Risks

Important risk factors that could cause our assumptions and estimates to be inaccurate and actual results or events to differ materially from those expressed in, or implied by, our forward-looking statements, including our 2017 financial guidance, are listed below. The realization of our forward-looking statements, including our ability to meet our 2017 financial guidance, essentially depends on our business performance which, in turn, is subject to many risks. Accordingly, readers are cautioned that any of the following risks could have a material adverse effect on our forward-looking statements. These risks include, but are not limited to:

• 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, net neutrality, spectrum auctions, approval of acquisitions, broadcast licensing and foreign ownership requirements
• 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
• the adverse effect of the fundamental separation of content and connectivity, which is changing our 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 could drive significant increases in content acquisition costs and challenge our ability to secure key content

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• 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 inability to protect our assets, including networks, IT systems, offices and sensitive information, from events and attacks such as cyber threats, and damage from fire and natural disasters
• the failure to optimize network and IT deployment and upgrading timelines, accurately assess the potential of new technologies, and invest and evolve in the appropriate direction
• the failure to continue investment 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 and 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 from our third-party suppliers and outsourcers
• 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

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• 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 our networks operational in the event of the occurrence 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

We caution that the foregoing list of risk factors is not exhaustive and other factors could also adversely affect our results. We encourage investors to also read BCE’s 2016 Annual MD&A dated March 2, 2017 (included in the BCE 2016 Annual Report) and BCE’s 2017 First Quarter MD&A dated April 25, 2017 for additional information with respect to certain of these and other assumptions and risks, filed by BCE with the Canadian provincial securities regulatory authorities (available at Sedar.com) and with the U.S. Securities and Exchange Commission (available at SEC.gov). These documents are also available at BCE.ca.

ABOUT BCE

Canada’s largest communications company, BCE provides the broadest range of broadband wireless, TV, Internet and business communication services to consumer and business customers throughout the country. Bell Media is Canada’s premier multimedia company with leading assets in television, radio, out of home and digital media. To learn more, please visit BCE.ca.

The Bell Let’s Talk initiative promotes Canadian mental health with national awareness and anti-stigma campaigns like Bell Let’s Talk Day and significant Bell funding of community care and access, research, and workplace initiatives. To learn more, please visit Bell.ca/LetsTalk.

Media inquiries:

Jean Charles Robillard
514-870-4739
jean_charles.robillard@bell.ca
 

Investor inquiries:

Thane Fotopoulos
514-870-4619
thane.fotopoulos@bell.ca

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EX-99.5

Exhibit 99.5

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: April 26, 2017

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 March 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, 2016 and the unaudited consolidated interim financial report for the three months ended March 31, 2017.

For the periods ended March 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	–	–	5,385	5,270	–	–	(1)	–	5,384	5,270
Net earnings from continuing operations attributable to owners	710	744	708	738	–	–	(708)	(738)	710	744
Net earnings attributable to owners	710	744	708	738	–	–	(708)	(738)	710	744

As at March 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
	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2017	Dec. 31, 2016
Total Current Assets	611	691	5,029	5,098	54	53	(962)	(987)	4,732	4,855
Total Non-current Assets	19,591	18,168	42,323	38,428	87	21	(12,884)	(11,364)	49,117	45,253
Total Current Liabilities	1,154	1,155	11,000	9,937	34	–	(963)	(984)	11,225	10,108
Total Non-current Liabilities	172	163	22,613	21,351	137	–	509	632	23,431	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-99.6

Exhibit 99.6

BCE Inc.
EXHIBIT TO 2017 FIRST QUARTER FINANCIAL STATEMENTS
EARNINGS COVERAGE

The following consolidated financial ratios are calculated for the twelve months ended March 31, 2017 and give effect to the issuance and redemption of all long-term debt since April 1, 2016 as if these transactions occurred on April 1, 2016 and are based on unaudited financial information of BCE Inc.

	March 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:	4.9 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:	5.0 times