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: August 2018 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 June 30, 2018 and the BCE Inc. unaudited consolidated interim financial statements for the quarter ended June 30, 2018, included in the BCE Inc. 2018 Second 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 June 30, 2018 furnished with this Form 6-K as Exhibit 99.5, and the Exhibit to 2018 Second 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. 333-223660). 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

August 2, 2018

Page 2

EXHIBIT INDEX

99.1   BCE Inc. 2018 Second Quarter Shareholder Report

99.2   Supplementary Financial Information – Second Quarter 2018

99.3   CEO/CFO Certifications

99.4   News Release

99.5   Bell Canada Unaudited Selected Summary Financial Information

99.6   Exhibit to 2018 Second Quarter Financial Statements – Earnings Coverage

99.7   Code of Business Conduct
101   XBRL Instance Document

Page 3

EX-99.1

Exhibit 99.1

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	10
	2.8	Depreciation and amortization	10
	2.9	Finance costs	10
	2.10	Other (expense) income	10
	2.11	Income taxes	11
	2.12	Net earnings attributable to common shareholders and EPS	11
3	Business segment analysis		12
	3.1	Bell Wireless	12
	3.2	Bell Wireline	16
	3.3	Bell Media	20
4	Financial and capital management		23
	4.1	Net debt	23
	4.2	Outstanding share data	23
	4.3	Cash flows	24
	4.4	Post-employment benefit plans	26
	4.5	Financial risk management	26
	4.6	Credit ratings	28
	4.7	Liquidity	28
5	Quarterly financial information		29
6	Regulatory environment		30
7	Business risks		32
8	Accounting policies, financial measures and controls		34
	8.1	Our accounting policies	34
	8.2	Non-GAAP financial measures and key performance indicators (KPIs)	36
	8.3	Controls and procedures	39
Consolidated financial statements			40
	Consolidated income statements		40
	Consolidated statements of comprehensive income		41
	Consolidated statements of financial position		42
	Consolidated statements of changes in equity		43
	Consolidated statements of cash flows		44

Notes to consolidated financial statements			45
	Note 1	Corporate information	45
	Note 2	Basis of presentation and significant accounting policies	45
	Note 3	Business acquisitions and dispositions	46
	Note 4	Segmented information	48
	Note 5	Operating costs	50
	Note 6	Severance, acquisition and other costs	50
	Note 7	Other (expense) income	50
	Note 8	Earnings per share	51
	Note 9	Debt	51
	Note 10	Post-employment benefit plans	51
	Note 11	Financial assets and liabilities	52
	Note 12	Share capital	53
	Note 13	Share-based payments	54
	Note 14	Adoption of IFRS 15	55

BCE Inc.   2018 SECOND 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 36 to 38 for a list of defined non-GAAP financial measures and KPIs.

Please refer to BCE’s unaudited consolidated financial statements for the second quarter of 2018 (Q2 2018 Financial Statements) when reading this MD&A. We also encourage you to read BCE’s MD&A for the year ended December 31, 2017 dated March 8, 2018 (BCE 2017 Annual MD&A) as updated in BCE’s MD&A for the first quarter of 2018 dated May 2, 2018 (BCE 2018 First Quarter MD&A). In preparing this MD&A, we have taken into account information available to us up to August 1, 2018, the date of this MD&A, unless otherwise stated.

As required by International Financial Reporting Standards (IFRS), effective January 1, 2018, we have adopted IFRS 15, Revenue from Contracts with Customers, as described in section 8.1, Our accounting policies, retrospectively to each period in 2017 previously reported. We have also reclassified some amounts from previous periods to make them consistent with the presentation for the current period. As a result of the adoption of IFRS 15, we have also updated certain of our assumptions set out in the BCE 2017 Annual MD&A.

You will find more information about us, including BCE’s annual information form for the year ended December 31, 2017 dated March 8, 2018 (BCE 2017 AIF) and recent financial reports, including the BCE 2017 Annual MD&A, 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 (Q2) and six months (YTD) ended June 30, 2018 and 2017.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This MD&A, and 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, section 3.3, Bell Media – Key business developments, and section 6, Regulatory environment, contain forward-looking statements. These forward-looking statements include, without limitation, statements relating to our network deployment plans and related capital investments, BCE’s business outlook, objectives, plans and strategic priorities, and other statements that do not refer to historical facts. A statement we make is forward-looking when it uses what we know and expect today to make a statement about the future. Forward-looking statements are typically identified by the words assumption, goal, guidance, objective, outlook, project, strategy, target, and other similar expressions or future or conditional verbs such as aim, anticipate, believe, could, expect, intend, may, plan, seek, should, strive and will. All such forward-looking statements are made pursuant to the safe harbour provisions of applicable Canadian securities laws and of the United States (U.S.) Private Securities Litigation Reform Act of 1995.

Unless otherwise indicated by us, forward-looking statements in this MD&A describe our expectations as at August 1, 2018 and, accordingly, are subject to change after that date. Except as may be required by Canadian securities laws, we do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Forward-looking statements, by their very nature, are subject to inherent risks and uncertainties and are based on several assumptions both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in, or implied by, such forward-looking statements and that our business outlook, objectives, plans and strategic priorities may not be achieved. As a result, we cannot guarantee that any forward-looking statement will materialize and we caution you against relying on any of these forward-looking statements. Forward-looking statements are presented in this MD&A for the purpose of assisting investors and others in understanding our objectives, strategic priorities and business outlook as well as our anticipated operating environment. Readers are cautioned, however, that such information may not be appropriate for other purposes.

We have made certain economic, market and operational assumptions in preparing the forward-looking statements contained in this MD&A and, in particular, but without limitation, the forward-looking statements contained in the previously mentioned sections of this MD&A. These assumptions include, without limitation, the assumptions described in the various sections of this MD&A entitled Assumptions, which sections are incorporated by reference in this cautionary statement. We believe that our assumptions were reasonable at August 1, 2018. 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, or in the BCE 2018 First Quarter MD&A, the strategic priorities, business outlook and assumptions described in the BCE 2017 Annual MD&A remain substantially unchanged.

Important risk factors including, without limitation, competitive, regulatory, economic, financial, operational, technological and other risks that could cause actual results or events to differ materially from those expressed in, or implied by, the previously-mentioned forward looking statements and other forward-looking statements contained in 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 previously 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 August 1, 2018. The financial impact of these transactions and special items can be complex and depends on facts particular to each of them. We therefore cannot describe the expected impact in a meaningful way, or in the same way we present known risks affecting our business.

BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT   1
1	MD&A	Overview

1 Overview

As required by IFRS, effective January 1, 2018, we have adopted IFRS 15, Revenue from Contracts with Customers, as described in section 8.1, Our accounting policies, retrospectively to each period in 2017 previously reported. We have also reclassified some amounts from previous periods to make them consistent with the presentation for the current period.

1.1 Financial highlights

BCE Q2 2018 SELECTED QUARTERLY INFORMATION

BCE CUSTOMER CONNECTIONS

BCE INCOME STATEMENTS – SELECTED INFORMATION

	Q2 2018		Q2 2017		$ CHANGE		% CHANGE		YTD 2018		YTD 2017		$ CHANGE		% CHANGE
Operating revenues
Service	5,129		5,078		51		1.0	%	10,093		9,889		204		2.1	%
Product	657		610		47		7.7	%	1,283		1,135		148		13.0	%
Total operating revenues	5,786		5,688		98		1.7	%	11,376		11,024		352		3.2	%
Operating costs	(3,356	)	(3,306	)	(50	)	(1.5	%)	(6,692	)	(6,476	)	(216	)	(3.3	%)
Adjusted EBITDA	2,430		2,382		48		2.0	%	4,684		4,548		136		3.0	%
Adjusted EBITDA margin(1)	42.0	%	41.9	%			0.1	pts	41.2	%	41.3	%			(0.1	) pts
Net earnings attributable to:
Common shareholders	704		765		(61	)	(8.0	%)	1,365		1,407		(42	)	(3.0	%)
Preferred shareholders	35		32		3		9.4	%	71		63		8		12.7	%
Non-controlling interest	16		17		(1	)	(5.9	%)	28		32		(4	)	(12.5	%)
Net earnings	755		814		(59	)	(7.2	%)	1,464		1,502		(38	)	(2.5	%)
Adjusted net earnings	777		795		(18	)	(2.3	%)	1,496		1,498		(2	)	(0.1	%)
Net earnings per common share (EPS)	0.79		0.85		(0.06	)	(7.1	%)	1.52		1.58		(0.06	)	(3.8	%)
Adjusted EPS(1)	0.86		0.89		(0.03	)	(3.4	%)	1.66		1.69		(0.03	)	(1.8	%)

(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 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 measure.
(2)	At the beginning of Q1 2018, we adjusted our postpaid wireless subscriber base to remove 16,116 subscribers with a corresponding increase to our high-speed Internet subscribers to reflect the transfer of fixed wireless Internet subscribers.
(3)	At the beginning of Q1 2018, our high-speed Internet subscriber base was increased by 19,835, our Internet protocol television (IPTV) by 14,599 and our residential NAS by 23,441, mainly as a result of a small acquisition made in Q1 2018.
(4)	As of January 1, 2018, business NAS was removed from our NAS subscriber base due to its declining relevance as a KPI given migrations from voice to Internet protocol (IP) result in NAS losses without a corresponding decline in revenues. Previously reported periods were retroactively adjusted.

2   BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT
	1	MD&A	Overview

BCE STATEMENTS OF CASH FLOWS – SELECTED INFORMATION

	Q2 2018		Q2 2017		$ CHANGE		% CHANGE		YTD 2018		YTD 2017		$ CHANGE		% CHANGE
Cash flows from operating activities	2,057		2,154		(97	)	(4.5	%)	3,553		3,467		86		2.5	%
Capital expenditures	(1,056	)	(1,042	)	(14	)	(1.3	%)	(1,987	)	(1,894	)	(93	)	(4.9	%)
Free cash flow	994		1,094		(100	)	(9.1	%)	1,531		1,583		(52	)	(3.3	%)

Q2 2018 FINANCIAL HIGHLIGHTS

BCE generated revenue growth of 1.7% in Q2 2018, compared to last year, reflecting both higher service and product revenues of 1.0% and 7.7%, respectively. The increase was driven by Bell Wireless and Bell Wireline, moderated by a modest decline at Bell Media. The growth was led by ongoing increases in wireless, Internet, IPTV, and IP-based services revenues, as well as higher product revenues resulting from greater sales volumes, offset in part by the continued erosion in voice, satellite TV and legacy data revenues. The ongoing but moderating decline in our business markets and the continued softness in the media advertising market further pressured revenues.

Net earnings decreased by 7.2% in the second quarter of 2018, compared to the same period last year, due to higher other expense and higher depreciation and amortization expense, partly offset by higher adjusted EBITDA, as growing revenues more than offset an increase in operating costs.

Q2 2018 adjusted EBITDA increased by 2.0%, compared to last year, mainly due to service revenue flow-through, coupled with ongoing effective cost management, which was moderated by escalating content and programming costs.

BCE’s EPS of $0.79 in Q2 2018 decreased by $0.06 compared to the same period last year.

Excluding the impact of severance, acquisition and other costs, net mark-to-market (losses) gains on derivatives used to economically hedge equity settled share-based compensation plans, net (losses) gains on investments, early debt redemption costs and impairment charges, adjusted net earnings in the second quarter of 2018 was $777 million, or $0.86 per common share, compared to $795 million, or $0.89 per common share, for the same period last year.

Cash flows from operating activities in the second quarter of 2018 decreased by $97 million, compared to Q2 2017, due mainly to a decrease in cash from working capital, partly offset by higher adjusted EBITDA.

Free cash flow in Q2 2018 decreased by $100 million, compared to the same period last year, mainly due to lower cash flows from operating activities excluding acquisition and other costs paid.

1.2 Key corporate and business developments

BELL AWARDED SUPERNET CONTRACT BY GOVERNMENT OF ALBERTA

On July 3, 2018, Bell announced that it had been awarded a multi-year contract to operate Alberta SuperNet, the Alberta government-led initiative providing broadband network connectivity to schools, hospitals, libraries, municipal and indigenous offices, government facilities, enterprise business customers and Internet service providers in 429 urban and rural communities throughout the province. Bell currently owns and operates the SuperNet network assets serving 27 urban centres in Alberta.

On June 30, 2018, Bell entered into an agreement to acquire the Alberta operations of Axia NetMedia Corporation, the Calgary-based operator of SuperNet’s rural assets. The transaction is expected to close by the end of August 2018. The acquisition ensures the continuation of SuperNet services for rural customers while enhancing connectivity opportunities for Alberta and national enterprise customers doing business throughout the province.

RECOGNITION OF BELL’S ENVIRONMENTAL LEADERSHIP

Bell was named one of Canada’s Greenest Employers by Canada’s Top 100 Employers program for the second consecutive year. The award recognizes Bell’s focus on minimizing our environmental impact, our leadership in implementing an ISO 14001 certified Environmental Management System and the success of our ongoing initiatives to reduce waste and save energy. The following are some highlights from 2017:

• At Bell offices across Canada, we reduced electricity consumption by over 30,000 Megawatt hours (MWh), enough to power 3,000 homes for a year
• We reduced fuel consumption by more than 500,000 litres by using telematics systems in 85% of Bell vehicles and following eco-driving practices such as limiting idling
• We diverted 64% of our waste, including 100 tonnes of computer equipment, from landfills through reuse and recycling programs
• We recovered 200,536 phones through the Bell Blue Box program, which donates proceeds to mental health organizations across Canada as part of Bell Let’s Talk

RENEWAL OF MTN PROGRAM

On June 19, 2018, Bell Canada announced the renewal of its medium term notes (MTN) program, enabling Bell Canada to offer up to $3 billion of MTN debentures from time to time until April 20, 2020. The MTN debentures will be fully and unconditionally guaranteed by BCE. Consistent with past practice, the MTN program was renewed to continue to provide Bell Canada with financial flexibility and efficient access to the Canadian and U.S. capital markets.

BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT   3
1	MD&A	Overview

1.3 Assumptions

As at the date of this MD&A, our forward-looking statements set out in the BCE 2017 Annual MD&A, as updated or supplemented in the BCE 2018 First Quarter MD&A and 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

• Lower economic growth, given the Bank of Canada’s most recent estimated growth in Canadian gross domestic product of 2.0% in 2018
• Employment gains expected to slow in 2018, as the overall level of business investment is expected to remain soft
• Interest rates expected to increase modestly in 2018
• Canadian dollar expected to remain at near current levels. Further movements may be impacted by the degree of strength of the U.S. dollar, interest rates and changes in commodity prices

MARKET ASSUMPTIONS

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

4   BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT
	2	MD&A	Consolidated financial analysis

2 Consolidated financial analysis

This section provides detailed information and analysis about BCE’s performance in Q2 and YTD 2018 compared with Q2 and YTD 2017. 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.

As required by IFRS, effective January 1, 2018, we have adopted IFRS 15, Revenue from Contracts with Customers, as described in section 8.1, Our accounting policies, retrospectively to each period in 2017 previously reported. We have also reclassified some amounts from previous periods to make them consistent with the presentation for the current period.

2.1 BCE consolidated income statements

	Q2 2018		Q2 2017		$ CHANGE		% CHANGE		YTD 2018		YTD 2017		$ CHANGE		% CHANGE
Operating revenues
Service	5,129		5,078		51		1.0	%	10,093		9,889		204		2.1	%
Product	657		610		47		7.7	%	1,283		1,135		148		13.0	%
Total operating revenues	5,786		5,688		98		1.7	%	11,376		11,024		352		3.2	%
Operating costs	(3,356	)	(3,306	)	(50	)	(1.5	%)	(6,692	)	(6,476	)	(216	)	(3.3	%)
Adjusted EBITDA	2,430		2,382		48		2.0	%	4,684		4,548		136		3.0	%
Adjusted EBITDA margin	42.0	%	41.9	%			0.1	pts	41.2	%	41.3	%			(0.1	) pts
Severance, acquisition and other costs	(24	)	(36	)	12		33.3	%	(24	)	(120	)	96		80.0	%
Depreciation	(787	)	(767	)	(20	)	(2.6	%)	(1,567	)	(1,491	)	(76	)	(5.1	%)
Amortization	(221	)	(210	)	(11	)	(5.2	%)	(433	)	(395	)	(38	)	(9.6	%)
Finance costs
Interest expense	(246	)	(238	)	(8	)	(3.4	%)	(486	)	(472	)	(14	)	(3.0	%)
Interest on post-employment benefit obligations	(17	)	(18	)	1		5.6	%	(34	)	(36	)	2		5.6	%
Other (expense) income	(88	)	(1	)	(87	)	n.m.		(149	)	16		(165	)	n.m.
Income taxes	(292	)	(298	)	6		2.0	%	(527	)	(548	)	21		3.8	%
Net earnings	755		814		(59	)	(7.2	%)	1,464		1,502		(38	)	(2.5	%)
Net earnings attributable to:
Common shareholders	704		765		(61	)	(8.0	%)	1,365		1,407		(42	)	(3.0	%)
Preferred shareholders	35		32		3		9.4	%	71		63		8		12.7	%
Non-controlling interest	16		17		(1	)	(5.9	%)	28		32		(4	)	(12.5	%)
Net earnings	755		814		(59	)	(7.2	%)	1,464		1,502		(38	)	(2.5	%)
Adjusted net earnings	777		795		(18	)	(2.3	%)	1,496		1,498		(2	)	(0.1	%)
EPS	0.79		0.85		(0.06	)	(7.1	%)	1.52		1.58		(0.06	)	(3.8	%)
Adjusted EPS	0.86		0.89		(0.03	)	(3.4	%)	1.66		1.69		(0.03	)	(1.8	%)

n.m.: not meaningful

2.2 Customer connections

TOTAL BCE CONNECTIONS

	Q2 2018	Q2 2017	% CHANGE
Wireless subscribers(1)	9,309,534	8,901,291	4.6	%
Postpaid(1)	8,593,113	8,126,264	5.7	%
High-speed Internet subscribers(1)(2)	3,856,555	3,718,677	3.7	%
TV (Satellite and IPTV subscribers)(2)	2,835,227	2,824,016	0.4	%
IPTV(2)	1,599,142	1,481,434	7.9	%
Total growth services	16,001,316	15,443,984	3.6	%
Wireline residential NAS lines(2)	3,126,551	3,332,976	(6.2	%)
Total services(3)	19,127,867	18,776,960	1.9	%

(1)	At the beginning of Q1 2018, we adjusted our postpaid wireless subscriber base to remove 16,116 subscribers with a corresponding increase to our high-speed Internet subscribers to reflect the transfer of fixed wireless Internet subscribers.
(2)	At the beginning of Q1 2018, our high-speed Internet subscriber base was increased by 19,835, our IPTV by 14,599 and our residential NAS by 23,441, mainly as a result of a small acquisition made in Q1 2018.
(3)	As of January 1, 2018, business NAS was removed from our NAS subscriber base due to its declining relevance as a KPI given migrations from voice to IP result in NAS losses without a corresponding decline in revenues. Previously reported periods were retroactively adjusted.

BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT   5
2	MD&A	Consolidated financial analysis

BCE NET ACTIVATIONS (LOSSES)

	Q2 2018		Q2 2017		% CHANGE		YTD 2018		YTD 2017		% CHANGE
Wireless subscribers	114,486		66,916		71.1	%	158,863		67,588		135.0	%
Postpaid	122,092		88,611		37.8	%	190,579		124,393		53.2	%
High-speed Internet subscribers	10,816		1,407		668.7	%	30,463		16,396		85.8	%
TV (Satellite and IPTV subscribers)	809		(13,337	)	106.1	%	(11,672	)	(29,000	)	59.8	%
IPTV	20,653		16,427		25.7	%	34,226		38,829		(11.9	%)
Total growth services	126,111		54,986		129.4	%	177,654		54,984		223.1	%
Wireline residential NAS lines	(70,665	)	(67,005	)	(5.5	%)	(128,198	)	(140,426	)	8.7	%
Total services	55,446		(12,019	)	561.3	%	49,456		(85,442	)	157.9	%

BCE added 126,111 net new customer connections to its growth services in Q2 2018, a significant improvement over the 54,986 net new customer connections achieved in Q2 2017. This was comprised of:

• 122,092 postpaid wireless customers, and the net loss of 7,606 prepaid wireless customers
• 10,816 high-speed Internet customers
• 20,653 IPTV customers and 19,844 satellite TV net customer losses

In the first six months of the year, BCE added 177,654 net new customer connections to its growth services, a significant improvement over the 54,984 net new customer connections achieved last year. This consisted of:

• 190,579 postpaid wireless customers, and the net loss of 31,716 prepaid wireless customers
• 30,463 high-speed Internet customers
• 34,226 IPTV customers and 45,898 satellite TV net customer losses

Residential NAS net losses were 70,665 in Q2 2018, increasing by 5.5% over Q2 2017. Conversely, in the first half of the year, residential NAS net losses were 128,198, representing an improvement of 8.7% compared to the same period last year.

Total BCE customer connections across all services increased by 1.9% in Q2 2018 compared to last year, driven by an increase in our growth services customer base, moderated by continued erosion in residential NAS lines.

At June 30, 2018, BCE customer connections totaled 19,127,867 and consisted of the following:

• 9,309,534 wireless subscribers, up 4.6% compared to Q2 2017, and included 8,593,113 postpaid wireless subscribers, an increase of 5.7% compared to the prior year
• 3,856,555 high-speed Internet subscribers, 3.7% higher year over year
• 2,835,227 total TV subscribers, up 0.4% compared to Q2 2017, and included 1,599,142 IPTV customers, representing an increase of 7.9% year over year
• 3,126,551 residential NAS lines, a decline of 6.2% compared to Q2 2017

2.3 Operating revenues

	Q2 2018		Q2 2017		$ CHANGE		% CHANGE		YTD 2018		YTD 2017		$ CHANGE		% CHANGE
Bell Wireless	2,046		1,949		97		5.0	%	3,992		3,716		276		7.4	%
Bell Wireline	3,135		3,117		18		0.6	%	6,219		6,094		125		2.1	%
Bell Media	791		796		(5	)	(0.6	%)	1,540		1,547		(7	)	(0.5	%)
Inter-segment eliminations	(186	)	(174	)	(12	)	(6.9	%)	(375	)	(333	)	(42	)	(12.6	%)
Total BCE operating revenues	5,786		5,688		98		1.7	%	11,376		11,024		352		3.2	%

6   BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT
	2	MD&A	Consolidated financial analysis

BCE

Total operating revenues at BCE increased by 1.7% in Q2 2018 and by 3.2% in the first half of the year, compared to the same periods in 2017, attributable to growth in both our Bell Wireless and Bell Wireline segments, offset by a decline in our Bell Media segment. This consisted of service revenues of $5,129 million in Q2 2018 and $10,093 million in the first six months of the year, increasing by 1.0% and 2.1%, respectively, over the same periods last year. Product revenues of $657 million in Q2 2018 and $1,283 million in the first half of 2018, grew by 7.7% and 13.0% respectively, compared to the same periods last year. Year-to-date operating revenues were also favourably impacted by the acquisition of MTS on March 17, 2017.

BELL WIRELESS

Bell Wireless operating revenues increased by 5.0% in Q2 2018 and by 7.4% year to date, compared to the same periods last year, due to both higher service and product revenues. Service revenues increased by 3.6% in the quarter and by 4.8% in the first half of the year, driven by a higher postpaid subscriber base as blended ARPU remained relatively unchanged compared to last year. Product revenues grew by 9.8% in the current quarter and by 17.4% year to date, due to a larger proportion of premium smartphone devices in our sales mix and higher retail handset prices resulting in a greater allocation of revenues to product revenues, as well as higher sales volumes from greater gross activations. The growth in year-to-date operating revenues was also favourably impacted by the acquisition of MTS, moderated by the unfavourable retroactive impact in Q1 2018 of the Canadian Radio-television and Telecommunications Commission (CRTC) decision on wholesale wireless domestic roaming rates of $14 million.

BELL WIRELINE

Bell Wireline operating revenues grew by 0.6% in the second quarter of 2018 and by 2.1% in the first half of the year, compared to the same periods last year, reflecting service revenue growth of 0.4% and 1.9%, respectively, as well as product revenue growth of 3.9% and 4.1%, respectively. The increase in service revenues was driven by continued growth in Internet and IPTV subscribers, greater household ARPU, higher IP-based services revenue, and the contribution from the acquisition of AlarmForce Industries Inc (AlarmForce) in January 2018. This was moderated by ongoing erosion in our voice, satellite TV and legacy data services, combined with greater residential customer acquisition, retention and bundle discounts to match aggressive offers from cable competitors. The continuing but moderating decline in our business markets reflected the benefit from the G7 summit and the Ontario general election held during Q2 2018. The growth in product revenues was driven by increased sales of telecommunications equipment along with the contribution from the acquisition of AlarmForce. Year-to-date revenues were also favourably impacted by the acquisition of MTS.

BELL MEDIA

Bell Media operating revenues decreased by 0.6%, in Q2 2018 and by 0.5% in the first six months of the year, compared to the same periods in 2017, due to lower advertising revenues driven by continued market softness, viewership declines and the ongoing shift in customer spending to over-the-top (OTT) and digital platforms. These pressures were moderated by increased advertising revenues as a result of the broadcast of the 2018 Fédération Internationale de Football Association (FIFA) World Cup, and higher out-of-home (OOH) advertising revenues mainly as a result of increased demand on digital faces. The decline in year-to-date advertising revenues also reflected the shift in advertising dollars in Q1 2018 to the main broadcaster of the PyeongChang 2018 Winter Olympics. The decrease in operating revenues was mitigated in part by higher subscriber revenues mainly due to continued growth in our TV Everywhere GO and CraveTV products along with the recent launch of TSN and RDS Direct, our direct-to-consumer sports streaming services and rate increases to certain broadcasting distribution undertakings (BDUs).

2.4 Operating costs

	Q2 2018		Q2 2017		$ CHANGE		% CHANGE		YTD 2018		YTD 2017		$ CHANGE		% CHANGE
Bell Wireless	(1,142	)	(1,098	)	(44	)	(4.0	%)	(2,266	)	(2,096	)	(170	)	(8.1	%)
Bell Wireline	(1,814	)	(1,810	)	(4	)	(0.2	%)	(3,596	)	(3,524	)	(72	)	(2.0	%)
Bell Media	(586	)	(572	)	(14	)	(2.4	%)	(1,205	)	(1,189	)	(16	)	(1.3	%)
Inter-segment eliminations	186		174		12		6.9	%	375		333		42		12.6	%
Total BCE operating costs	(3,356	)	(3,306	)	(50	)	(1.5	%)	(6,692	)	(6,476	)	(216	)	(3.3	%)

(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.   2018 SECOND QUARTER SHAREHOLDER REPORT   7
2	MD&A	Consolidated financial analysis

BCE

Total BCE operating costs grew by 1.5% in Q2 2018 and by 3.3% in the first half of the year, compared to the same periods in 2017, due to higher costs across all three of our segments.

BELL WIRELESS

Bell Wireless operating costs increased by 4.0% in Q2 2018, compared to last year as a result of:

• Increased product cost of goods sold due to greater sales volumes and higher handset costs
• Increased labour costs to support the growth of the business
• Higher network operating costs driven by the expansion of network capacity to support subscriber growth and increased data consumption

These factors were partially offset by:

• Lower advertising spend

Operating costs for the first half of the year were up 8.1%, compared to last year, driven by the higher costs as noted above, as well as increased costs related to the acquisition of MTS and greater advertising expense due to the PyeongChang 2018 Winter Olympics.

BELL WIRELINE

Bell Wireline operating costs increased by 0.2% in Q2 2018 and by 2.0% in the first half of the year, compared to the same periods in 2017, attributable to:

• Increased expenses from the acquisition of AlarmForce
• Higher marketing expense mainly in our residential market to support subscriber acquisition, including increased advertising spend in Q1 2018 during the PyeongChang 2018 Winter Olympics
• Higher cost of goods sold driven by increased product sales
• Greater programming and content costs in our TV business from contractual rate increases

These factors were partially offset by:

• Reduced labour costs attributable to workforce reductions, savings from lower call volumes to customer service centers, and lower vendor contract expenses
• Decreased payments to other carriers resulting from lower sales of international long distance minutes

Operating expenses in the first half of the year, compared to last year, were further unfavourably impacted by the acquisition of MTS and higher pension expense due to a gain in Q1 2017 on post-employment benefit expense related to an alignment of certain Bell Aliant defined benefit (DB) pension plans with those of Bell Canada.

BELL MEDIA

Bell Media operating costs increased by $14 million or 2.4% in Q2 2018 and by $16 million or 1.3% in the first six months of the year, compared to the corresponding periods last year, as a result of:

• Continued escalation of programming and content costs for sports broadcast rights, primarily relating to the 2018 FIFA World Cup rights and production costs, as well as ongoing content expansion for CraveTV
• Higher OOH expenses driven by the revenue growth

These factors were partially offset by:

• Lower labour costs driven mainly by workforce reductions

2.5 Net earnings

Net earnings decreased by 7.2% in the second quarter of 2018, compared to the same period last year, due to higher other expense and higher depreciation and amortization expense, partly offset by higher adjusted EBITDA, as growing revenues more than offset an increase in operating costs.

Year to date, net earnings of $1,464 million decreased by 2.5%, compared to the same period last year, due to higher other expense and higher depreciation and amortization expense, partly offset by higher adjusted EBITDA, as growing revenues more than offset an increase in operating costs, and lower severance, acquisition and other costs.

8   BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT
	2	MD&A	Consolidated financial analysis

2.6 Adjusted EBITDA

	Q2 2018	Q2 2017	$ CHANGE		% CHANGE		YTD 2018	YTD 2017	$ CHANGE		% CHANGE
Bell Wireless	904	851	53		6.2	%	1,726	1,620	106		6.5	%
Bell Wireline	1,321	1,307	14		1.1	%	2,623	2,570	53		2.1	%
Bell Media	205	224	(19	)	(8.5	%)	335	358	(23	)	(6.4	%)
Total BCE adjusted EBITDA	2,430	2,382	48		2.0	%	4,684	4,548	136		3.0	%

BCE

BCE’s adjusted EBITDA increased by 2.0% in Q2 2018 and by 3.0% in the first six months of the year, compared to the same periods last year, attributable to growth in both our Bell Wireless and Bell Wireline segments, offset in part by a decline in our Bell Media segment. This resulted in adjusted EBITDA margin of 42.0% in Q2 2018, representing an increase over the 41.9% experienced in Q2 2017. Conversely, the adjusted EBITDA margin declined from 41.3% in the first six months of 2017 to 41.2% in the same period in 2018, reflecting a $14 million retroactive regulatory impact from the CRTC decision on wholesale wireless domestic roaming rates in Q1 2018.

The increase in adjusted EBITDA was driven by higher wireless, Internet, IPTV and IP-based revenues, along with continued effective cost containment. This was moderated by the ongoing erosion in our voice, satellite TV and legacy data revenues, lower media revenues, higher cost of goods sold and escalating programming and content costs. The first half of the year was also favourably impacted by the contribution from the acquisition of MTS, offset in part by higher pension expense due to a gain realized in Q1 2017.

BELL WIRELESS

Bell Wireless adjusted EBITDA grew by 6.2% in Q2 2018 and by 6.5% in the first six months of the year, compared to the same periods last year, driven by higher operating revenues, moderated by increased operating expenses. The first half of the year was also favourably impacted by the acquisition of MTS, offset in part by the unfavourable retroactive impact of the CRTC decision on wholesale wireless domestic roaming rates of $14 million.

BELL WIRELINE

Bell Wireline adjusted EBITDA grew by 1.1% in Q2 2018 and by 2.1% during the first six months of the year, compared to the same periods last year, due to continued growth in Internet, IPTV and IP-based revenues, and disciplined cost management. This was offset in part by the continued erosion of voice, satellite TV and legacy data revenues, including continued but moderating pressures in our business market. Additionally, the first half of the year was favourably impacted by the acquisition of MTS, offset in part by increased pension expense as a result of a gain realized in Q1 2017.

BELL MEDIA

Bell Media adjusted EBITDA decreased by 8.5% in Q2 2018 and by 6.4% in the first half of the year, compared to the same periods in 2017, due to lower operating revenues combined with higher operating expenses.

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2	MD&A	Consolidated financial analysis

2.7 Severance, acquisition and other costs

2018

Severance, acquisition and other costs of $24 million in the second quarter of 2018 and on a year-to-date basis included:

• Severance costs related to workforce reduction initiatives of $15 million in Q2 2018 and $24 million on a year-to-date basis
• Acquisition and other costs of $9 million in Q2 2018 and nil on a year-to-date basis, including transaction costs, such as legal and financial advisory fees, related to completed or potential acquisitions

2017

Severance, acquisition and other costs of $36 million in the second quarter of 2017 and $120 million on a year-to-date basis included:

• Severance costs related to workforce reduction initiatives of $16 million in Q2 2017 and $47 million on a year-to-date basis
• Acquisition and other costs of $20 million in Q2 2017 and $73 million on a year-to-date basis, including transaction costs, such as legal and financial advisory fees, related to completed or potential acquisitions, severance and integration costs relating to the MTS acquisition as well as a loss on sale of spectrum licences to Xplornet Communications Inc. incurred in Q1 2017.

2.8 Depreciation and amortization

DEPRECIATION

Depreciation in the second quarter and on a year-to-date basis in 2018 increased by $20 million and $76 million, respectively, compared to the same periods in 2017, mainly due to a higher asset base as we continued to invest in our broadband and wireless networks as well as our IPTV service. The year-to-date increase in depreciation also reflects the acquisition of MTS.

AMORTIZATION

Amortization in the second quarter and on a year-to-date basis in 2018 increased by $11 million and $38 million, respectively, compared to the same periods in 2017, mainly due to a higher asset base. The year-to-date increase in amortization also reflects the acquisition of MTS.

2.9 Finance costs

INTEREST EXPENSE

Interest expense in the second quarter of 2018 and on a year-to-date basis in 2018 increased by $8 million and $14 million, respectively, compared to the same periods last year, mainly as a result of higher average debt levels. The year-to-date increase in interest expense also reflects the acquisition of MTS.

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, 2018, the discount rate was 3.6% compared to 4.0% on January 1, 2017.

In the second quarter of 2018 and on a year-to-date basis in 2018, interest expense on post-employment benefit obligations decreased by $1 million and $2 million, respectively, compared to the same periods last year, due to a lower discount rate, partly offset by a higher post-employment benefit obligation at the beginning of the year.

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

2.10 Other (expense) income

2018

Other expense of $88 million in the second quarter of 2018 included losses from our equity investments which included BCE’s share of an obligation to repurchase at fair value the minority interest in one of BCE’s joint ventures, net mark-to-market losses on derivatives used to economically hedge equity settled share-based compensation plans and early debt redemption costs.

Other expense of $149 million on a year-to-date basis in 2018 included net mark-to-market losses on derivatives used to economically hedge equity settled share-based compensation plans, losses from our equity investments which included BCE’s share of an obligation to repurchase at fair value the minority interest in one of BCE’s joint ventures and early debt redemption costs.

2017

Other expense of $1 million in the second quarter of 2017 included losses on retirements and disposals of property, plant and equipment and intangible assets, partly offset by income from our equity investments.

Other income of $16 million on a year-to-date basis in 2017 included income from our equity investments and mark-to-market gains on derivatives used to economically hedge equity settled share-based compensation plans, partly offset by losses on retirements and disposals of property, plant and equipment and intangible assets and losses on investments.

10   BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT
	2	MD&A	Consolidated financial analysis

2.11 Income taxes

Income taxes in the second quarter of 2018 decreased by $6 million, compared to the same period last year, due mainly to lower taxable income.

Income taxes on a year-to-date basis in 2018 decreased by $21 million compared to the same period last year, due mainly to lower taxable income and a higher value of uncertain tax positions favourably resolved in 2018 compared to 2017.

2.12 Net earnings attributable to common shareholders and EPS

Net earnings attributable to common shareholders of $704 million in the second quarter of 2018 decreased by $61 million, compared to the same period last year, due to higher other expense and higher depreciation and amortization expense, partly offset by higher adjusted EBITDA, as growing revenues more than offset an increase in operating costs.

Year to date, net earnings attributable to common shareholders of $1,365 million decreased by $42 million, compared to the same period last year, due to higher other expense and higher depreciation and amortization expense, partly offset by higher adjusted EBITDA, as growing revenues more than offset an increase in operating costs, and lower severance, acquisition and other costs.

BCE’s EPS of $0.79 in Q2 2018 and $1.52 on a year-to-date basis in 2018 decreased by $0.06, respectively, compared to the same periods last year.

Excluding the impact of severance, acquisition and other costs, net mark-to-market (losses) gains on derivatives used to economically hedge equity settled share-based compensation plans, net (losses) gains on investments, early debt redemption costs and impairment charges, adjusted net earnings in the second quarter of 2018 was $777 million, or $0.86 per common share, compared to $795 million, or $0.89 per common share, for the same period last year. Adjusted net earnings in the first half of 2018 was $1,496 million, or $1.66 per common share, compared to $1,498 million, or $1.69 per common share, for the first six months of 2017.

BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT   11
3	MD&A	Business segment analysis Bell Wireless

3 Business segment analysis

3.1 Bell Wireless

KEY BUSINESS DEVELOPMENTS

VIRGIN MOBILE RANKED HIGHEST IN CUSTOMER CARE SATISFACTION

Virgin Mobile Canada (Virgin Mobile) was ranked highest in overall customer care satisfaction in the J.D. Power 2018 Canada Wireless Customer Care Study for the second consecutive year. The study was based on an online survey of more than 5,000 Canadian wireless customers about their service experiences. As the top-ranked provider, Virgin Mobile was cited for its strong performance in satisfaction with phone, in-store and online support as well as clarity of information on company websites, user forums and social media.

MOBILE DEVICE LINEUP EXPANDED

Bell Mobility’s extensive device lineup continued to expand in Q2 2018 with the addition of a number of new Fourth Generation (4G) long-term evolution (LTE) and LTE advanced (LTE-A) devices from leading handset manufacturers, including the LG G7 ThinQ, the Sony Xperia XZ2, Huawei’s P20 and P20 Pro smartphones featuring advanced Leica cameras, BlackBerry’s KEY2 and the Sonim XP8, a rugged device built for demanding work environments with a dedicated Push-to-Talk button.

BELL DELIVERS INNOVATIVE INTERNET OF THINGS FUEL MONITORING SOLUTION

On June 14, 2018, Bell entered into a multi-year agreement with Superior Propane, a subsidiary of Superior Plus Corp., to deliver a comprehensive fuel tank monitoring solution for its business and residential customers on Bell’s national LTE mobile network. Leveraging Bell’s leadership in the fast-growing Internet of Things sector, the remote monitoring solution provides reliable and accurate data on fuel levels at Superior customer locations across the country.

FINANCIAL PERFORMANCE ANALYSIS

Q2 2018 PERFORMANCE HIGHLIGHTS

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	3	MD&A	Business segment analysis Bell Wireless

(1) At the beginning of Q1 2018, we adjusted our postpaid wireless subscriber base to remove 16,116 subscribers with a corresponding increase to our high-speed Internet subscribers to reflect the transfer of fixed wireless Internet subscribers.

BELL WIRELESS RESULTS

REVENUES

	Q2 2018	Q2 2017	$ CHANGE	% CHANGE		YTD 2018	YTD 2017	$ CHANGE	% CHANGE
External service revenues	1,562	1,508	54	3.6	%	3,062	2,923	139	4.8	%
Inter-segment service revenues	12	11	1	9.1		24	21	3	14.3	%
Total operating service revenues	1,574	1,519	55	3.6	%	3,086	2,944	142	4.8	%
External product revenues	470	430	40	9.3	%	904	771	133	17.3	%
Inter-segment product revenues	2	—	2	n.m.		2	1	1	100.0	%
Total operating product revenues	472	430	42	9.8	%	906	772	134	17.4	%
Total Bell Wireless revenues	2,046	1,949	97	5.0	%	3,992	3,716	276	7.4	%

Bell Wireless operating revenues increased by 5.0% in Q2 2018 and by 7.4% year to date, compared to the same periods last year, due to both higher service and product revenues.

• Service revenues increased by 3.6% in this quarter and by 4.8% for the first half of the year, driven by a higher postpaid subscriber base with a stable blended ARPU. The growth in year-to-date service revenues was also favourably impacted by the acquisition of MTS, moderated by the unfavourable retroactive impact of the CRTC decision on wholesale wireless domestic roaming rates of $14 million.
• Product revenues grew by 9.8% in the current quarter and by 17.4% year to date, due to a larger proportion of premium smartphone devices in our sales mix and higher retail handset prices resulting in a greater allocation of revenues to product revenues, along with higher sales volumes from greater gross activations. The first half of the year was also favourably impacted by the acquisition of MTS and higher upgrade volumes.

OPERATING COSTS AND ADJUSTED EBITDA

	Q2 2018		Q2 2017		$ CHANGE		% CHANGE		YTD 2018		YTD 2017		$ CHANGE		% CHANGE
Operating costs	(1,142	)	(1,098	)	(44	)	(4.0	%)	(2,266	)	(2,096	)	(170	)	(8.1	%)
Adjusted EBITDA	904		851		53		6.2	%	1,726		1,620		106		6.5	%
Total adjusted EBITDA margin	44.2	%	43.7	%			0.5	pts	43.2	%	43.6	%			(0.4	) pts

Bell Wireless operating costs increased by 4.0% in Q2 2018, compared to last year as a result of:

• Increased product cost of goods sold due to greater sales volumes and higher handset costs
• Increased labour costs to support the growth of the business
• Higher network operating costs driven by the expansion of network capacity to support subscriber growth and increased data consumption

These factors were partially offset by:

• Lower advertising spend

Operating costs for the first half of the year were up 8.1%, driven by the higher costs as noted above, as well as increased costs related to the acquisition of MTS and greater advertising expense due to the PyeongChang 2018 Winter Olympics.

Bell Wireless adjusted EBITDA grew by 6.2% in Q2 2018 and by 6.5% in the first six months of the year, compared to the same periods last year, driven by higher operating revenues, moderated by increased operating expenses. The first half of the year was also favourably impacted by the acquisition of MTS, offset in part by the unfavourable retroactive impact of the CRTC decision on wholesale wireless domestic roaming rates of $14 million. Adjusted EBITDA margin, based on wireless operating revenues, increased by 0.5 pts in Q2 2018, compared to the prior year, due to the revenue growth flow-through. Conversely, the year-to-date EBITDA margin was 0.4 pts lower, compared to last year, due to the higher proportion of low-margin product sales in our total revenue base.

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3	MD&A	Business segment analysis Bell Wireless

BELL WIRELESS OPERATING METRICS

	Q2 2018		Q2 2017		CHANGE		% CHANGE		YTD 2018		YTD 2017		CHANGE		% CHANGE
Blended ARPU ($/month)	55.53		55.61		(0.08	)	(0.1	%)	54.91		54.97		(0.06	)	(0.1	%)
Blended ABPU ($/month)	67.71		67.28		0.43		0.6	%	67.14		66.48		0.66		1.0	%
Gross activations	468,152		403,418		64,734		16.0	%	872,942		751,870		121,072		16.1	%
Postpaid	394,136		339,392		54,744		16.1	%	741,455		636,008		105,447		16.6	%
Prepaid	74,016		64,026		9,990		15.6	%	131,487		115,862		15,625		13.5	%
Net activations (losses)	114,486		66,916		47,570		71.1	%	158,863		67,588		91,275		135.0	%
Postpaid	122,092		88,611		33,481		37.8	%	190,579		124,393		66,186		53.2	%
Prepaid	(7,606	)	(21,695	)	14,089		64.9	%	(31,716	)	(56,805	)	25,089		44.2	%
Blended churn % (average per month)	1.28	%	1.27	%			(0.01	) pts	1.29	%	1.31	%			0.02	pts
Postpaid	1.10	%	1.08	%			(0.02	) pts	1.12	%	1.12	%			—
Prepaid	3.34	%	3.19	%			(0.15	) pts	3.37	%	3.24	%			(0.13	) pts
Subscribers(1)	9,309,534		8,901,291		408,243		4.6	%	9,309,534		8,901,291		408,243		4.6	%
Postpaid(1)	8,593,113		8,126,264		466,849		5.7	%	8,593,113		8,126,264		466,849		5.7	%
Prepaid	716,421		775,027		(58,606	)	(7.6	%)	716,421		775,027		(58,606	)	(7.6	%)

(1) At the beginning of Q1 2018, we adjusted our postpaid wireless subscriber base to remove 16,116 subscribers with a corresponding increase to our high-speed Internet subscribers to reflect the transfer of fixed wireless Internet subscribers.

Blended ARPU was stable with a small decline of 0.1% for both Q2 2018 and the first half of the year, compared to the same periods last year, driven by lower data and voice overages due to greater take rate of plans with higher usage thresholds, lower ARPU from the long-term mobile services contract with Shared Services Canada and the dilutive impact on blended ARPU from the continued ramp-up in prepaid subscribers from Lucky Mobile. A larger proportion of premium smartphone devices in our sales mix and higher retail handset prices resulted in a greater allocation of revenues to product revenues, consequently unfavourably impacting blended ARPU. This decline was moderated by a higher proportion of postpaid customers in our total subscriber base, the flow-through of 2017 and 2018 pricing changes, increased demand for larger data plans driven by greater data consumption enabled by the higher speeds achieved from the continued expansion of our LTE and LTE-A networks and increased roaming revenues.

Blended ABPU approximates the average amount billed to customers on a monthly basis and is the same as blended ARPU prior to the adoption of IFRS 15. Blended ABPU increased by 0.6% and 1.0%, in Q2 2018 and the first half of the year, respectively, compared to the same periods last year and was similarly impacted by the items affecting ARPU. However, since ABPU is based on average billing, it is not unfavorably impacted by the greater allocation to product revenues resulting from the shift in handset mix to premium devices and higher retail handset prices.

Total gross wireless activations increased by 16.0% in Q2 2018 and by 16.1% in the first half of the year, compared to the same periods in 2017, due to both higher postpaid and prepaid gross activations.

• Postpaid gross activations increased by 16.1% in the current quarter and by 16.6% year to date, reflecting our mobile network speed and technology leadership, effective sales execution across our retail channels, along with the continued on-boarding of customers from the long-term mobile services contract with Shared Services Canada. The first six months of the year were also favourably impacted by the contribution from the acquisition of MTS.
• Prepaid gross activations increased by 15.6% in Q2 2018 and by 13.5% year to date, driven by the contribution from Lucky Mobile

Blended wireless churn of 1.28% increased by 0.01 pts in the second quarter of 2018 reflecting both higher postpaid and prepaid churn. In the first six months of the year, the blended churn of 1.29% improved by 0.02 pts.

• Postpaid churn of 1.10% increased by 0.02 pts in Q2 2018, driven by greater promotional pricing in the market, more off-contract subscribers and greater business customer deactivations. In the first half of the year, the postpaid churn of 1.12% was stable compared to the same period last year.
• Prepaid churn increased by 0.15 pts in the current quarter and by 0.13 pts year to date, to 3.34% and 3.37%, respectively, reflecting a declining subscriber base, in part offset by lower deactivations

Postpaid net activations increased by 37.8% in Q2 2018 and by 53.2% year to date, compared to the same periods last year, due to an increase in gross activations, partially offset by higher customer deactivations.

Prepaid net customer losses improved by 64.9% in the second quarter of 2018 and by 44.2% year to date, compared to the same periods last year, due to an increase in gross activations and lower customer deactivations.

Wireless subscribers at June 30, 2018 totaled 9,309,534, up 4.6% from 8,901,291 subscribers reported at the end of Q2 2017. The proportion of Bell Wireless customers subscribing to postpaid services increased by 1.0 pts to 92% in Q2 2018, compared to the same period in 2017.

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	3	MD&A	Business segment analysis Bell Wireless

ASSUMPTIONS

As at the date of this MD&A, our forward-looking statements set out in the BCE 2017 Annual MD&A, as updated or supplemented in the BCE 2018 First Quarter MD&A and 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 net additions
• Continued adoption of smartphone devices, tablets and data applications, as well as the introduction of more 4G LTE and LTE-A devices and new data services
• Higher handset cost, driven by a higher sales mix of premium devices, increased new customer activations and more customer device upgrades attributable to a higher number of off-contract subscribers due to earlier expiries under two-year contracts
• Wireless revenue growth driven by postpaid subscriber base expansion and a higher volume of handset sales
• Expansion of the LTE-A network coverage to approximately 92% of the Canadian population
• Ability to monetize increasing data usage and customer subscriptions to new data services
• Ongoing technological improvements by handset manufacturers and from faster data network speeds that allow customers to optimize the use of our services
• No material financial, operational or competitive consequences of changes in regulations affecting our wireless business

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3	MD&A	Business segment analysis Bell Wireline

3.2 Bell Wireline

KEY BUSINESS DEVELOPMENTS

EXPANSION OF ALL-FIBRE BROADBAND NETWORK ACROSS THE GTA/905 REGION

As part of Bell’s plan to deploy all-fibre connections to an additional 1.3 million homes and businesses throughout the populous and fast-growing Greater Toronto Area (GTA)/905 region surrounding Toronto, Bell announced projects in Q2 2018 in a number of communities as part of this buildout, including: approximately 60,000 homes and business locations throughout the City of Oshawa; more than 28,000 residences and businesses in the Municipality of Clarington; approximately 15,000 homes and business locations throughout the City of Orillia; and approximately 38,000 residences and business locations in the Chatham-Kent region.

With a direct fibre footprint encompassing more than 4.2 million homes and commercial locations across our expansive wireline footprint at the end of Q2 2018, up from approximately 3.7 million at the end of 2017, Bell offers the largest Gigabit Internet service footprint in Canada.

BELL LEADS THE WAY IN INTERNET SPEED RANKINGS

Bell took the top spot in PCMag’s “The Fastest ISPs of 2018: Canada,” delivering the highest overall Internet speed index ever recorded in Canada to date by the magazine and scoring more than 30% higher than our nearest competitor. Atlantic Canada’s Bell Aliant also took second place in the speed tests while Manitoba’s Bell MTS moved into the top 10 for the first time. PCMag’s conclusions were based on nearly 12,000 tests of Canadian Internet service providers large and small between September 2017 and June 2018.

NEW DOWNLOAD & GO FIBE TV APP FEATURE TO WATCH RECORDINGS OFFLINE

In another television innovation from Bell, Fibe TV customers in Ontario, Québec and Atlantic Canada can now download their personal video recorder recordings with the Fibe TV app to watch on iOS and Android mobile devices even without Wi-Fi. Download & Go joins Restart, Wireless TV, the Fibe TV app and Alt TV in a growing list of service innovations that have made Bell the leading television provider in Canada.

BELL RECOGNIZED AS CANADIAN SECURITY SERVICES LEADER

Bell was named a Canadian leader in security services by global IT and telecom advisory firm International Data Corporation (IDC) in its 2018 Canadian Security Services Vendor Assessment Report for the third consecutive year. IDC’s review of Canada’s major security service providers highlights Bell’s exceptionally broad range of professional services including cloud security, advanced threat detection and proactive mitigation, backed by our highly qualified team and world-class networks. The report also cites Bell’s ability to support next-generation technologies as key to our ongoing leadership in this fast-growing line of business.

FINANCIAL PERFORMANCE ANALYSIS

Q2 2018 PERFORMANCE HIGHLIGHTS

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	3	MD&A	Business segment analysis Bell Wireline

(1)	At the beginning of Q1 2018, our high-speed Internet subscriber base was increased by 19,835, our IPTV by 14,599 and our residential NAS by 23,441, mainly as a result of a small acquisition made in Q1 2018.
(2)	At the beginning of Q1 2018, we adjusted our high-speed Internet subscriber base to add 16,116 subscribers with a corresponding decrease to our postpaid wireless subscribers to reflect the transfer of fixed wireless Internet subscribers.

BELL WIRELINE RESULTS

REVENUES

	Q2 2018	Q2 2017	$ CHANGE		% CHANGE		YTD 2018	YTD 2017	$ CHANGE		% CHANGE
Data	1,869	1,812	57		3.1	%	3,689	3,531	158		4.5	%
Voice	957	1,020	(63	)	(6.2	%)	1,907	2,001	(94	)	(4.7	%)
Other services	64	55	9		16.4	%	127	99	28		28.3	%
Total external service revenues	2,890	2,887	3		0.1	%	5,723	5,631	92		1.6	%
Inter-segment service revenues	57	49	8		16.3	%	116	98	18		18.4	%
Total operating service revenues	2,947	2,936	11		0.4	%	5,839	5,729	110		1.9	%
Data	98	95	3		3.2	%	202	194	8		4.1	%
Equipment and other	89	85	4		4.7	%	177	170	7		4.1	%
Total external product revenues	187	180	7		3.9	%	379	364	15		4.1	%
Inter-segment product revenues	1	1	—		—		1	1	—		—
Total operating product revenues	188	181	7		3.9	%	380	365	15		4.1	%
Total Bell Wireline revenues	3,135	3,117	18		0.6	%	6,219	6,094	125		2.1	%

Bell Wireline operating revenues grew by 0.6% in Q2 2018 and by 2.1% in the first six months of 2018, compared to the same periods in 2017, as a result of higher data, other services and product revenues, offset in part by ongoing declines in voice revenue.

Bell Wireline operating service revenues increased by 0.4% and 1.9% in Q2 2018 and the first half of the year, respectively, compared to the same periods last year, driven by continued growth in Internet and IPTV subscribers, greater household ARPU, higher IP-based services revenue, and the contribution from the acquisition of AlarmForce. Additionally, the first six months of the year were favourably impacted by the acquisition of MTS. This was moderated by ongoing erosion in our voice, satellite TV and legacy data services, combined with greater residential customer acquisition, retention and bundle discounts to match aggressive offers from cable competitors. The continuing but moderating decline in our business markets reflected the benefit from the G7 summit and the Ontario general election held during Q2 2018.

• Data revenues grew by 3.1% in Q2 2018 and by 4.5% during the first half of the year, compared to the same periods last year, due to growth in Internet and IPTV subscribers along with rate increases, as well as greater IP-based services revenue driven by the G7 summit and higher professional services revenue from the Ontario general election. This was partly offset by higher acquisition, retention and bundle discounts on residential services due to aggressive offers from cable competitors, the continued decline in our satellite TV subscriber base, and ongoing legacy data erosion due in part to migrations to IP-based services and competitive pricing pressures in our business and wholesale markets. Year-to-date revenues were also favourably impacted by the acquisition of MTS.
• Voice revenues decreased by 6.2% in Q2 2018 and by 4.7% in the first six months of the year, compared to the same periods last year, resulting from continued NAS line erosion due to technological substitution to wireless and Internet-based services, large business customer conversions to IP-based data services, combined with competitive pricing pressures, which unfavourably impacted both local and access and long distance revenues. Ongoing long distance rate pressures in our residential market from customer adoption of premium rate plans coupled with reduced sales of international long distance minutes in our wholesale market, also unfavourably impacted voice revenues. This was mitigated by rate increases on our voice services and the contribution from the acquisition of MTS which favourably impacted the first six months of the year.
• Other services revenues increased by 16.4% in Q2 2018 and by 28.3% in the first half of the year, compared to the same periods last year, due to the acquisition of AlarmForce.

Bell Wireline product revenues grew by 3.9% and 4.1%, in Q2 2018 and year to date, respectively, compared to the same periods in 2017, resulting from increased sales of telecommunication equipment along with the contribution from the acquisition of AlarmForce. Year-to-date revenues were also favourably impacted by the acquisition of MTS.

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3	MD&A	Business segment analysis Bell Wireline

OPERATING COSTS AND ADJUSTED EBITDA

	Q2 2018		Q2 2017		$ CHANGE		% CHANGE		YTD 2018		YTD 2017		$ CHANGE		% CHANGE
Operating costs	(1,814	)	(1,810	)	(4	)	(0.2	%)	(3,596	)	(3,524	)	(72	)	(2.0	%)
Adjusted EBITDA	1,321		1,307		14		1.1	%	2,623		2,570		53		2.1	%
Adjusted EBITDA margin	42.1	%	41.9	%			0.2	pts	42.2	%	42.2	%			—

Bell Wireline operating costs increased by 0.2% in Q2 2018 and by 2.0% in the first half of the year, compared to the same periods in 2017, driven by:

• Increased expenses from the acquisition of AlarmForce
• Higher marketing expense mainly in our residential market to support subscriber acquisition, including increased advertising spend in Q1 2018 during the PyeongChang 2018 Winter Olympics
• Higher cost of goods sold driven by increased product sales
• Greater programming and content costs in our TV business from contractual rate increases

These factors were partially offset by:

• Reduced labour costs attributable to workforce reductions, savings from lower call volumes to customer service centers, and lower vendor contract expenses
• Decreased payments to other carriers resulting from lower sales of international long distance minutes

Operating expenses in the first half of the year, compared to last year, were further unfavourably impacted by the acquisition of MTS and higher pension expense due to a gain in Q1 2017 on post-employment benefit expense related to an alignment of certain Bell Aliant DB pension plans with those of Bell Canada.

Bell Wireline adjusted EBITDA grew by 1.1% in Q2 2018 and by 2.1% during the first six months of the year, compared to the same periods last year. Adjusted EBITDA margin of 42.1% in Q2 2018 increased by 0.2 pts whereas year-to-date adjusted EBITDA margin of 42.2% was stable compared to last year. The year-over-year increase in adjusted EBITDA was driven by continued growth in Internet, IPTV and IP-based revenues, and disciplined cost management. This was offset in part by the continued erosion of voice, satellite TV and legacy data revenues, including continued but moderating pressures in our business market. Additionally, the first half of the year, was favourably impacted by the acquisition of MTS, offset in part by increased pension expense as a result of a gain realized in Q1 2017.

BELL WIRELINE OPERATING METRICS

DATA

High-speed Internet

	Q2 2018	Q2 2017	CHANGE	% CHANGE		YTD 2018	YTD 2017	CHANGE	% CHANGE
High-speed Internet net activations	10,816	1,407	9,409	668.7	%	30,463	16,396	14,067	85.8	%
High-speed Internet subscribers(1)(2)	3,856,555	3,718,677	137,878	3.7	%	3,856,555	3,718,677	137,878	3.7	%

(1)	At the beginning of Q1 2018, our high-speed Internet subscriber base was increased by 19,835, mainly as a result of a small acquisition made in Q1 2018.
(2)	At the beginning of Q1 2018, we adjusted our high-speed Internet subscriber base to add 16,116 subscribers with a corresponding decrease to our postpaid wireless subscribers to reflect the transfer of fixed wireless Internet subscribers.

High-speed Internet subscriber net activations grew by 9,409 in Q2 2018 and by 14,067 in the first half of the year, compared to the same periods in 2017, driven by higher net activations from Home Internet service by Virgin Mobile, greater retail gross activations in our fibre-to-the-home (FTTH) footprint and higher IPTV pull-through. The growth was moderated by aggressive offers from cable competitors in both our retail and wholesale markets, an increased number of retail customers coming off promotional offers, as well as greater student deactivations.

High-speed Internet subscribers at June 30, 2018 totaled 3,856,555 up 3.7% from the end of Q2 of last year.

TV

	Q2 2018	Q2 2017		CHANGE	% CHANGE		YTD 2018		YTD 2017		CHANGE		% CHANGE
Net subscriber activations (losses)	809	(13,337	)	14,146	106.1	%	(11,672	)	(29,000	)	17,328		59.8	%
IPTV	20,653	16,427		4,226	25.7	%	34,226		38,829		(4,603	)	(11.9	%)
Total subscribers(1)	2,835,227	2,824,016		11,211	0.4	%	2,835,227		2,824,016		11,211		0.4	%
IPTV(1)	1,599,142	1,481,434		117,708	7.9	%	1,599,142		1,481,434		117,708		7.9	%

(1) At the beginning of Q1 2018, our IPTV subscriber base was increased by 14,599 as a result of a small acquisition made in Q1 2018.

IPTV net subscriber activations increased by 25.7% in Q2 2018, compared to the same period last year, driven by higher activations from Alt TV, our application-based live TV service launched in May 2017, greater gross activations in our FTTH and fibre-to-the-node footprint and increased new footprint expansion in 2018. This was moderated by higher deactivations attributable to aggressive service bundle offers from cable competitors, a higher number of retail customers coming off promotional offers, increased substitution of traditional TV services with OTT services, reduced customer migrations from satellite TV, and the impact of maturing Fibe TV markets. Year-to-date IPTV net additions declined by 11.9% as higher deactivations, driven by the factors described above, were only partially offset by increased activations.

Satellite TV net subscriber losses improved by 33.3% in Q2 2018 and by 32.3% in the first half of the year, compared to the same periods last year, resulting from lower retail deactivations and less migrations to IPTV reflecting a more mature subscriber base geographically better-suited for satellite TV service, improved retention rates, along with a fewer number of customers coming off promotional offers. This was moderated by aggressive residential promotional offers from cable competitors, primarily in our non-FTTH footprint.

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	3	MD&A	Business segment analysis Bell Wireline

Total TV net subscriber activations (IPTV and satellite TV combined) improved by 14,146 in Q2 2018, compared to Q2 2017, resulting from fewer satellite TV net losses, along with higher IPTV net activations. Net subscriber losses improved by 17,328 in the first six months of the year, compared to last year, due to lower satellite TV net losses, offset in part by fewer IPTV net activations.

IPTV subscribers at June 30, 2018 totaled 1,599,142, up 7.9% from 1,481,434 subscribers reported at the end of Q2 2017.

Satellite TV subscribers at June 30, 2018 totaled 1,236,085, down 7.9% from 1,342,582 subscribers at the end of Q2 2017.

Total TV subscribers (IPTV and satellite TV combined) at June 30, 2018 were 2,835,227, representing a 0.4% increase since the end of the second quarter of 2017.

Voice

	Q2 2018		Q2 2017		CHANGE		% CHANGE		YTD 2018		YTD 2017		CHANGE		% CHANGE
Residential NAS lines(1)	3,126,551		3,332,976		(206,425	)	(6.2	%)	3,126,551		3,332,976		(206,425	)	(6.2	%)
Residential NAS net losses	(70,665	)	(67,005	)	(3,660	)	(5.5	%)	(128,198	)	(140,426	)	12,228		8.7	%

(1) At the beginning of Q1 2018, our residential NAS subscriber base was increased by 23,441 as a result of a small acquisition made in Q1 2018.

Residential NAS net losses increased by 5.5% in Q2 2018, compared to Q2 2017, attributable to lower activations due to aggressive competitive offers from cable TV providers, combined with continued wireless and Internet-based technology substitution. Conversely, during the first six months of the year, residential NAS net losses improved by 8.7% resulting from fewer deactivations due to richer retention offers, along with a reduced number of customers coming off promotional offers in the first quarter of 2018.

Residential NAS subscribers at June 30, 2018 totaled 3,126,551, down 6.2% from 3,332,976 subscribers reported at the end of Q2 2017. This represented an increase in the rate of erosion compared to the 1.9% decline experienced in the second quarter of 2017, mainly due to the year-over-year increase in subscribers from the acquisition of MTS which benefited Q2 2017.

ASSUMPTIONS

As at the date of this MD&A, our forward-looking statements set out in the BCE 2017 Annual MD&A, as updated or supplemented in the BCE 2018 First Quarter MD&A and 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
• Traditional high-margin product categories challenged by large global cloud and OTT providers of business voice and data solutions expanding into Canada with on-demand services
• Accelerating customer adoption of OTT services resulting in downsizing of TV packages
• Ongoing deployment of direct fibre and growing consumption of OTT TV services and on-demand streaming video, as well as the proliferation of devices, such as tablets, that consume vast quantities of bandwidth, will require considerable ongoing capital investment
• Realization of cost savings related to management workforce attrition and retirements, lower contracted rates from our suppliers, reduction of traffic that is not on our network and operating synergies from the integration of MTS
• No material financial, operational or competitive consequences of changes in regulations affecting our wireline business

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3	MD&A	Business segment analysis Bell Media

3.3 Bell Media

KEY BUSINESS DEVELOPMENTS

CTV IS CANADA’S MOST-WATCHED NETWORK FOR 17TH YEAR IN A ROW

CTV ended the core 2017/2018 television viewing season (fall, winter and spring) as the most-watched Canadian television network in primetime for a 17th year in a row. Final data from Numeris, a primary provider of viewership figures for television and radio outlets in Canada, confirmed that CTV had more top 20 programs in key demographics than all other competitors combined, with 12 of the top 20 among viewers aged 18 to 34. In addition, CTV laid claim to 6 or more of the top 10 programs in total viewers and all key demographics and delivered the top 4 new programs of the season. Numeris data also confirmed that CTV delivered 38% more viewers than its next closest competitor for those aged 25 to 54 and had 51% more live viewers than its closest competitor.

BELL MEDIA UNVEILS CTV-BRANDED CHANNELS AND MOVIE SERVICES

Bell Media will rebrand four of its leading entertainment specialty channels as CTV properties to leverage Canada’s favourite TV brand. Space, Bravo, Comedy, and Gusto will become CTV Sci-Fi, CTV Drama, CTV Comedy, and CTV Life. They will be joined by CTV Movies and CTV Vault, two new ad-supported video-on-demand (VOD) services, in a new CTV digital super-hub featuring all seven services. The rebrand of the four specialties will be preceded by the launch of two, new digital VOD services, CTV Movies and CTV Vault. The CTV super-hub will be available on connected devices everywhere, including the web, iOS, Android, Chromecast, Apple and Android TV, Xbox One, and Samsung smart TVs.

BELL MEDIA LAUNCHES TSN DIRECT AND RDS DIRECT

On June 7, 2018, Bell Media launched TSN Direct and RDS Direct, making TSN and RDS content available direct to consumers through a monthly subscription. Current TSN and RDS subscribers with participating television providers can continue to stream these networks, and have access to the on-demand content and bonus streams through the TSN app or TSN.ca/Live, and the RDS app or RDS.ca. TSN Direct and RDS Direct are available for $24.99 a month with no contract, allowing digital subscribers to access TSN and RDS’ programming through their computer, tablet, mobile device, Apple TV, Samsung SmartTV, and Xbox One, with more platforms to be announced soon.

NEW AND EXTENDED MULTI-YEAR STUDIO DEALS FOR TMN

Canada’s leading premium pay TV service, The Movie Network (TMN), secured exclusive deals with most major movie studios, delivering to subscribers the biggest Hollywood hit movies and film franchises across a variety of platforms including linear, on-demand, and digital for years to come. TMN has now locked in the exclusive, Canadian, first-window rights for film titles from: 20th Century Fox and Fox Searchlight Films; Entertainment One; Sony Pictures Entertainment; Universal Pictures and Focus Features; and Warner Bros. International Television Distribution. As was previously announced, Bell Media has also entered into a long-term agreement with Lionsgate to distribute Lionsgate’s future theatrical releases in Canada in a first pay window, and bring the Starz brand to Canada. These movie deals, coupled with the long-term agreements secured with premium TV brands HBO, SHOWTIME, and Starz, make Bell Media’s suite of Pay TV linear and streaming services home to some of the most critically acclaimed programming in the world. TMN has also secured offline viewing rights for these film titles that will continue to keep TMN growing across all platforms.

TERMINATION OF AGREEMENT TO ACQUIRE SÉRIES+ AND HISTORIA SPECIALTY CHANNELS

On October 17, 2017, BCE entered into an agreement with Corus Entertainment Inc. (Corus) to acquire French-language specialty channels Séries+ and Historia. On May 28, 2018, the Competition Bureau announced that it did not approve the sale of the channels to BCE. As a result, BCE and Corus terminated their agreement.

20   BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT
	3	MD&A	Business segment analysis Bell Media

FINANCIAL PERFORMANCE ANALYSIS

Q2 2018 PERFORMANCE HIGHLIGHTS

BELL MEDIA RESULTS

REVENUES

	Q2 2018	Q2 2017	$ CHANGE		% CHANGE		YTD 2018	YTD 2017	$ CHANGE		% CHANGE
Total external revenues	677	683	(6	)	(0.9	%)	1,308	1,335	(27	)	(2.0	%)
Inter-segment revenues	114	113	1		0.9	%	232	212	20		9.4	%
Total Bell Media revenues	791	796	(5	)	(0.6	%)	1,540	1,547	(7	)	(0.5	%)

Bell Media operating revenues decreased by $5 million, or 0.6%, in Q2 2018 and decreased by $7 million or 0.5% in the first six months of the year, compared to the same periods in 2017, driven by lower advertising revenues, offset in part by higher subscriber revenues.

Advertising revenues decreased in both Q2 2018 and in the first six months of 2018, compared to the same periods last year, driven by continued market softness, viewership declines and the ongoing shift in customer spending to OTT and digital platforms. These pressures were moderated by increased TV advertising revenues as a result of the broadcast of the 2018 FIFA World Cup and higher OOH advertising revenues mainly as a result of increased demand on digital faces. The decline in year-to-date advertising revenues also reflected the shift in advertising dollars in Q1 2018 to the main broadcaster of the PyeongChang 2018 Winter Olympics.

Subscriber revenues grew in both the second quarter and first six months of 2018, compared to the same periods last year, mainly due to continued subscriber growth in our TV Everywhere GO and CraveTV products along with the recent launch of TSN and RDS Direct, our direct-to-consumer sports streaming services, and rate increases to certain BDUs.

OPERATING COSTS AND ADJUSTED EBITDA

	Q2 2018		Q2 2017		$ CHANGE		% CHANGE		YTD 2018		YTD 2017		$ CHANGE		% CHANGE
Operating costs	(586	)	(572	)	(14	)	(2.4	%)	(1,205	)	(1,189	)	(16	)	(1.3	%)
Adjusted EBITDA	205		224		(19	)	(8.5	%)	335		358		(23	)	(6.4	%)
Adjusted EBITDA margin	25.9	%	28.1	%			(2.2	) pts	21.8	%	23.1	%			(1.3	) pts

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3	MD&A	Business segment analysis Bell Media

Bell Media operating costs increased by $14 million or 2.4% in Q2 2018 and by $16 million or 1.3% in the first six months of the year, compared to the corresponding periods last year, mainly due to:

• Continued escalation of programming and content costs for sports broadcast rights, primarily 2018 FIFA World Cup rights and production costs, as well as ongoing content expansion for CraveTV
• Higher OOH expenses driven by the revenue growth

These factors were partially offset by:

• Lower labour costs driven mainly by workforce reductions

Bell Media adjusted EBITDA decreased by 8.5% in Q2 2018 and by 6.4% in the first half of the year, compared to the same periods last year, as a result of lower operating revenues combined with higher operating expenses.

BELL MEDIA OPERATING METRICS

• CTV was the top ranked network in Canada for the 14th consecutive spring season among all key adult demographics in primetime, with ten of the top 20 programs nationally in key demographics. Among all key demographics, CTV had more shows in the spring top 20 than any other network.
• Bell Media continued to lead the Canadian TV media digital landscape in views, minutes watched, and videos served, with monthly averages of 436 million total views, 985 million minutes spent, and 79 million videos served. Bell Media was seventh among online properties in the country, reaching 67% of the digital audience and hit an all time monthly high in April 2018 with nearly 21 million unique visitors.
• Bell Media remained Canada’s top radio broadcaster, reaching 17.0 million listeners who spent 71.8 million hours tuned in each week
• Astral is one of Canada’s leading OOH advertising companies, reaching 14 million consumers weekly, with an offering of five innovative product lines and owning more than 31,000 advertising faces strategically located in key urban cities across the country

ASSUMPTIONS

As at the date of this MD&A, our forward-looking statements set out in the BCE 2017 Annual MD&A, as updated or supplemented in the BCE 2018 First Quarter MD&A and 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.

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

22   BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT
	4	MD&A	Financial and capital management

4 Financial and capital management

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

4.1 Net debt ⁽¹⁾

	JUNE 30, 2018		DECEMBER 31, 2017		$ CHANGE	% CHANGE
Debt due within one year	5,732		5,178		554	10.7	%
Long-term debt	18,367		18,215		152	0.8	%
Preferred shares(2)	2,002		2,002		—	—
Cash and cash equivalents	(390	)	(625	)	235	37.6	%
Net debt	25,711		24,770		941	3.8	%

(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 2018 and 2017 are classified as debt consistent with the treatment by some credit rating agencies.

The increase of $706 million in total debt comprised of debt due within one year and long-term debt was due to:

• the issuance by Bell Canada of Series M-47 MTN debentures and Series US-1 notes with total principal amounts of $500 million and US $750 million (CAD $967 million), respectively
• an increase in our notes payable (net of repayments) of $40 million
• a net increase of $99 million in our other debt and finance lease obligations

Partly offset by:

• the early redemption of Series M-28 MTN debentures in the principal amount of $400 million
• the early redemption of Series M-33 debentures in the principal amount of $300 million
• the early redemption of Series 9 notes in the principal amount of $200 million

The decrease in cash and cash equivalents of $235 million was due mainly to:

• $1,324 million of dividends paid on BCE common shares
• $244 million paid for business acquisitions mainly related to the acquisition of AlarmForce
• $175 million paid for the repurchase of common shares through a NCIB
• $137 million paid for the purchase on the open market of shares for the settlement of share-based payments
• $46 million acquisition and other costs paid
• $41 million return of capital to non-controlling interest
• $36 million acquisition of spectrum licences

Partly offset by:

• $1,531 million of free cash flow
• $263 million of debt issuances (net of repayments)
• $68 million of disposition of intangibles and other assets for the sale of AlarmForce’s approximate 39,000 customer accounts to TELUS Communications Inc. (Telus)

4.2 Outstanding share data

	NUMBER
COMMON SHARES OUTSTANDING	OF SHARES
Outstanding, January 1, 2018	900,996,640
Shares issued for the acquisition of AlarmForce	22,531
Shares issued under employee stock option plan	59,756
Repurchase of common shares	(3,085,697	)
Outstanding, June 30, 2018	897,993,230

BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT   23
4	MD&A	Financial and capital management

	NUMBER OF		WEIGHTED AVERAGE
STOCK OPTIONS OUTSTANDING	OPTIONS		EXERCISE PRICE ($)
Outstanding, January 1, 2018	10,490,249		55
Granted	3,651,802		57
Exercised(1)	(59,756	)	39
Forfeited	(4,641	)	59
Outstanding, June 30, 2018	14,077,654		56
Exercisable, June 30, 2018	4,606,773		52

(1) The weighted average share price for options exercised during the six months ended June 30, 2018 was $56.

4.3 Cash flows

	Q2 2018		Q2 2017		$ CHANGE		% CHANGE		YTD 2018		YTD 2017		$ CHANGE		% CHANGE
Cash flows from operating activities	2,057		2,154		(97	)	(4.5	%)	3,553		3,467		86		2.5	%
Capital expenditures	(1,056	)	(1,042	)	(14	)	(1.3	%)	(1,987	)	(1,894	)	(93	)	(4.9	%)
Cash dividends paid on preferred shares	(35	)	(30	)	(5	)	(16.7	%)	(68	)	(73	)	5		6.8	%
Cash dividends paid by subsidiaries to non-controlling interest	—		(9	)	9		100.0	%	(13	)	(21	)	8		38.1	%
Acquisition and other costs paid	28		21		7		33.3	%	46		104		(58	)	(55.8	%)
Free cash flow	994		1,094		(100	)	(9.1	%)	1,531		1,583		(52	)	(3.3	%)
Business acquisitions	(21	)	—		(21	)	n.m.		(244	)	(1,635	)	1,391		85.1	%
Acquisition and other costs paid	(28	)	(21	)	(7	)	(33.3	%)	(46	)	(104	)	58		55.8	%
Acquisition of spectrum licences	—		—		—		—		(36	)	—		(36	)	n.m.
Disposition of intangibles and other assets	—		323		(323	)	(100.0	%)	68		323		(255	)	(78.9	%)
Other investing activities	(20	)	(5	)	(15	)	n.m.		(55	)	(14	)	(41	)	n.m.
Net (repayment) issuance of debt instruments	(973	)	(705	)	(268	)	(38.0	%)	263		845		(582	)	(68.9	%)
Issue of common shares	1		41		(40	)	(97.6	%)	2		89		(87	)	(97.8	%)
Repurchase of common shares	—		—		—		—		(175	)	—		(175	)	n.m.
Repurchase of shares for settlement of share-based payments	(49	)	(45	)	(4	)	(8.9	%)	(137	)	(141	)	4		2.8	%
Cash dividends paid on common shares	(678	)	(626	)	(52	)	(8.3	%)	(1,324	)	(1,220	)	(104	)	(8.5	%)
Return of capital to non-controlling interest	(12	)	—		(12	)	n.m.		(41	)	—		(41	)	n.m.
Other financing activities	(23	)	(9	)	(14	)	n.m.		(41	)	(22	)	(19	)	(86.4	%)
Net (decrease) increase in cash and cash equivalents	(809	)	47		(856	)	n.m.		(235	)	(296	)	61		20.6	%

n.m.: not meaningful

CASH FLOWS FROM OPERATING ACTIVITIES AND FREE CASH FLOW

Cash flows from operating activities in the second quarter of 2018 decreased by $97 million, compared to Q2 2017, due mainly to a decrease in cash from working capital, partly offset by higher adjusted EBITDA.

Cash flows from operating activities in the first half of 2018 increased by $86 million, compared to the first half of 2017, due mainly to higher adjusted EBITDA, lower acquisition and other costs paid and improved working capital.

Free cash flow in the second quarter of 2018 decreased by $100 million compared to the same period last year, mainly due to lower cash flows from operating activities excluding acquisition and other costs paid.

Free cash flow on a year-to-year basis in 2018 decreased by $52 million compared to the same period last year, mainly due to higher capital expenditures, partly offset by higher cash flows from operating activities excluding acquisition and other costs paid.

24   BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT
	4	MD&A	Financial and capital management

CAPITAL EXPENDITURES

	Q2 2018		Q2 2017		$ CHANGE		% CHANGE		YTD 2018		YTD 2017		$ CHANGE		% CHANGE
Bell Wireless	179		191		12		6.3	%	343		327		(16	)	(4.9	%)
Capital intensity ratio	8.7	%	9.8	%			1.1	pts	8.6	%	8.8	%			0.2	pts
Bell Wireline	845		818		(27	)	(3.3	%)	1,592		1,509		(83	)	(5.5	%)
Capital intensity ratio	27.0	%	26.2	%			(0.8	) pts	25.6	%	24.8	%			(0.8	) pts
Bell Media	32		33		1		3.0	%	52		58		6		10.3	%
Capital intensity ratio	4.0	%	4.1	%			0.1	pts	3.4	%	3.7	%			0.3	pts
BCE	1,056		1,042		(14	)	(1.3	%)	1,987		1,894		(93	)	(4.9	%)
Capital intensity ratio	18.3	%	18.3	%			—		17.5	%	17.2	%			(0.3	) pts

BCE capital expenditures of $1,056 million in Q2 2018 and $1,987 million in the first six months of the year, increased by $14 million and $93 million, respectively, compared to the same periods last year. Capital expenditures as a percentage of revenue (capital intensity ratio) of 18.3% in Q2 2018 remained unchanged compared to Q2 2017, whereas year-to-date capital intensity of 17.5% increased by 0.3 pts, compared to the first half of 2017. The year-over-year variances reflected:

• Higher capital spending in our wireline segment of $27 million and $83 million in Q2 2018 and year to date, respectively, driven by our continued expansion of broadband fibre directly to more homes and businesses and greater investment to support our growing Internet and TV subscriber bases. The year-to-date increase over last year also reflected the impact from the acquisition of MTS.
• Lower wireless capital investment in Q2 2018 of $12 million, while spending in the first six months of the year increased by $16 million. Although our wireless capital spending is at a slower pace compared to last year, particularly in Q2 2018, we continue to expand our LTE-A network including the deployment of wireless small-cells to optimize mobile coverage, signal quality and data backhaul, as well as increase network capacity to support the growth in subscribers and data consumption. In the first six months of the year, the acquisition of MTS contributed to a year-over-year increase in capital expenditures.

BUSINESS ACQUISITIONS

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

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 Ltd., for a total cash consideration of $161 million.

DISPOSITION OF INTANGIBLE AND OTHER ASSETS

During Q1 2018, BCE sold AlarmForce’s approximate 39,000 customer accounts in British Columbia, Alberta and Saskatchewan to Telus for total proceeds of approximately $68 million.

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

DEBT INSTRUMENTS

2018

In the second quarter of 2018, we repaid $973 million of debt, net of issuances. This included the early redemption of Series M-28 MTN debentures, Series M-33 debentures and Series 9 notes in the principal amounts of $400 million, $300 million and $200 million, respectively, and payments of finance leases and other debt of $170 million, partly offset by the issuances (net of repayments) of $97 million of notes payable.

In the first half of 2018, we issued $263 million of debt, net of repayments. This included the issuances of Series M-47 MTN debentures and Series US-1 notes at Bell Canada with total principal amounts of $500 million and US $750 million (CAD $967 million), respectively and the issuances (net of repayments) of $40 million of notes payable. These issuances were partly offset by the early redemption of Series M-28 MTN debentures, Series M-33 debentures and Series 9 notes in the principal amounts of $400 million, $300 million and $200 million, respectively, and payments of finance leases and other debt of $344 million.

BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT   25
4	MD&A	Financial and capital management

2017

In the second quarter of 2017, we repaid $705 million of debt, net of issuances. This included a decrease in our loans secured by trade receivables of $360 million, the early redemption of Series M-35 debentures with a principal amount of $350 million and payments of finance leases and other debt of $122 million, partly offset by the issuance (net of repayments) of $127 million of notes payable.

In the first half of 2017, we issued $845 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, and the issuance (net of repayments) of $435 million of notes payable. These issuances were partly offset by the repayment of borrowings under our unsecured committed term credit facility of $480 million, the early redemption of Series M-35 debentures with a principal amount of $350 million, payments of finance leases and other debt of $250 million and a decrease in our loans secured by trade receivables of $10 million.

REPURCHASE OF COMMON SHARES

In Q1 2018, BCE repurchased and cancelled 3,085,697 common shares for a total cost of $175 million. Of the total cost, $69 million represents stated capital and $3 million represents the reduction of the contributed surplus attributable to these common shares. The remaining $103 million was charged to the deficit.

CASH DIVIDENDS PAID ON COMMON SHARES

In the second quarter of 2018, cash dividends paid on common shares increased by $52 million compared to Q2 2017, due to a higher dividend paid in Q2 2018, of $0.7550 per common share compared to $0.7175 per common share in Q2 2017, and a higher number of outstanding common shares principally as a result of shares issued for the acquisition of MTS.

In the first half of 2018, cash dividends paid on common shares increased by $104 million compared to 2017, due to a higher dividend paid in the second half of 2018 of $1.4725 per common share compared to $1.40 per common share for the same period last year, and a higher number of outstanding common shares principally as a result of shares issued for the acquisition of MTS.

4.4 Post-employment benefit plans

For the three and six months ended June 30, 2018, we recorded a decrease in our post-employment benefit obligations and a gain, before taxes, in OCI of $502 million and $348 million, respectively. This was due to a higher actual discount rate of 3.7% at June 30, 2018, as compared to 3.6% at March 31, 2018 and December 31, 2017 and a higher-than-expected return on plan assets in Q2 2018.

For the three and six months ended June 30, 2017, we recorded an increase in our post-employment benefit obligations and a loss, before taxes, in OCI of $351 million and $793 million, respectively. This was due to a lower actual discount rate of 3.6% at June 30, 2017, as compared to 3.8% at March 31, 2017 and 4.0% at December 31, 2016. The loss was partly offset by a higher-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.

			JUNE 30, 2018		DECEMBER 31, 2017
			CARRYING	FAIR	CARRYING	FAIR
	CLASSIFICATION	FAIR VALUE METHODOLOGY	VALUE	VALUE	VALUE	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	79	78	111	110
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	119	121	124	128
Debt securities, finance leases and other debt	Debt due within one year and long-term debt	Quoted market price of debt or present value of future cash flows discounted using observable market interest rates	19,868	21,490	19,321	21,298

26   BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT
	4	MD&A	Financial and capital management

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

	CLASSIFICATION	CARRYING VALUE OF ASSET (LIABILITY)		FAIR VALUE
				QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)	OBSERVABLE MARKET DATA (LEVEL 2)(1)		NON-OBSERVABLE MARKET INPUTS (LEVEL 3)(2)
June 30, 2018
Publicly-traded and privately-held investments(3)	Other non-current assets	104		1	—		103
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities	(5	)	—	(5	)	—
Maple Leaf Sports & Entertainment Ltd. (MLSE) financial liability(4)	Trade payables and other liabilities	(135	)	—	—		(135	)
Other	Other non-current assets and liabilities	70		—	116		(46	)
December 31, 2017
Publicly-traded and privately-held investments(3)	Other non-current assets	103		1	—		102
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities	(48	)	—	(48	)	—
MLSE financial liability(4)	Trade payables and other liabilities	(135	)	—	—		(135	)
Other	Other non-current assets and liabilities	60		—	106		(46	)

(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 are recorded in OCI and impairment charges are recorded in Other (expense) income in the income statements.
(4)	Represents BCE’s obligation to repurchase the BCE Master Trust Fund’s (Master Trust) 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recorded in Other (expense) income in the income statements.

CURRENCY EXPOSURES

We use forward contracts, options and cross currency interest rate swaps to manage foreign currency risk related to anticipated purchases and sales and certain foreign currency denominated debt.

A 10% depreciation (appreciation) in the value of the Canadian dollar relative to the U.S. dollar would result in a gain (loss) of $2 million ($3 million) recognized in net earnings at June 30, 2018 and a gain (loss) of 139 million ($134 million) recognized in Other comprehensive income (loss) at June 30, 2018, with all other variables held constant.

In Q1 2018, we entered into a cross currency interest rate swap with a notional amount of $750 million in U.S. dollars ($967 million in Canadian dollars) to hedge the U.S. currency exposure of our Series US-1 notes maturing in 2048. See Note 9, Debt, in BCE’s Q2 2018 Financial Statements.

The following table provides further details on our outstanding foreign currency forward contracts and options as at June 30, 2018.

TYPE OF HEDGE	BUY CURRENCY	AMOUNT TO RECEIVE	SELL CURRENCY	AMOUNT TO PAY	MATURITY	HEDGED ITEM
Cash flow	USD	2,499	CAD	3,244	2018	Commercial paper
Cash flow	USD	450	CAD	584	2018	Anticipated transactions
Cash flow	CAD	46	USD	36	2018-2019	Anticipated transactions
Cash flow	USD	775	CAD	968	2019	Anticipated transactions
Cash flow	USD	76	CAD	96	2020-2021	Anticipated transactions
Economic	USD	19	CAD	24	2018	Anticipated transactions
Economic – call options	USD	33	CAD	41	2018	Anticipated transactions
Economic – put options	USD	99	CAD	119	2018	Anticipated transactions

INTEREST RATE EXPOSURES

A 1% increase (decrease) in interest rates would result in a decrease (increase) of $31 million in net earnings at June 30, 2018.

EQUITY PRICE EXPOSURES

We use equity forward contracts on BCE’s common shares to economically hedge the cash flow exposure related to the settlement of equity settled share-based compensation plans and the equity price risk related to a cash-settled share-based payment plan. The fair value of our equity forward contracts at June 30, 2018 was a liability of $85 million.

A 5% increase (decrease) in the market price of BCE’s common shares at June 30, 2018 would result in a gain (loss) of $33 million recognized in net earnings, with all other variables held constant.

BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT   27
4	MD&A	Financial and capital management

4.6 Credit ratings

BCE’s and Bell Canada’s key credit ratings remain unchanged from those described in the BCE 2017 Annual MD&A.

4.7 Liquidity

Our cash requirements remain substantially unchanged from those described in the BCE 2017 Annual MD&A.

LITIGATION

RECENT DEVELOPMENTS IN LEGAL PROCEEDINGS

The following are updates to the legal proceedings described in the BCE 2017 AIF under section 8, Legal Proceedings.

IP INFRINGEMENT LAWSUITS CONCERNING IPTV SYSTEMS

Mediatube Corp.’s appeal of the decision of the Federal Court to dismiss the claim filed on April 23, 2013 against Bell Canada and Bell Aliant Regional Communications, Limited Partnership (now Bell Canada) is now expected to be heard by the Federal Court of Appeal in September or October 2018 instead of May 20, 2018.

PURPORTED CLASS ACTION CONCERNING PROMOTIONAL PRICING

On May 14, 2018, the Québec Superior Court dismissed the plaintiff’s application for authorization to institute a class action filed on July 4, 2016 against Bell Canada and other defendants (including telecommunications companies and other service providers). On July 4, 2018, the plaintiff appealed this decision to the Québec Court of Appeal.

28   BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT
	5	MD&A	Quarterly financial information

5 Quarterly financial information

BCE’s Q2 2018 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 August 1, 2018.

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.

													2016 PRIOR TO THE
	2018				2017								ADOPTION OF IFRS 15
	Q2		Q1		Q4		Q3		Q2		Q1		Q4		Q3
Operating revenues
Service	5,129		4,964		5,152		5,054		5,078		4,811		5,169		5,025
Product	657		626		884		643		610		525		533		382
Total operating revenues	5,786		5,590		6,036		5,697		5,688		5,336		5,702		5,407
Adjusted EBITDA	2,430		2,254		2,329		2,405		2,382		2,166		2,121		2,236
Severance, acquisition and other costs	(24	)	—		(47	)	(23	)	(36	)	(84	)	(11	)	(25	)
Depreciation	(787	)	(780	)	(783	)	(760	)	(767	)	(724	)	(719	)	(706	)
Amortization	(221	)	(212	)	(208	)	(207	)	(210	)	(185	)	(165	)	(161	)
Net earnings	755		709		698		850		814		688		699		800
Net earnings attributable to common shareholders	704		661		656		803		765		642		657		752
Net earnings per common share
Basic	0.79		0.73		0.72		0.90		0.85		0.73		0.75		0.87
Diluted	0.79		0.73		0.72		0.90		0.85		0.73		0.75		0.87
Average number of common shares outstanding – basic (millions)	898.0		900.2		900.6		900.4		900.1		875.7		870.5		869.9

BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT   29
6	MD&A	Regulatory environment

6 Regulatory environment

The following is an update to the regulatory initiatives and proceedings described in the BCE 2017 Annual MD&A under section 3.3, Principal business risks and section 8, Regulatory environment, as subsequently updated in the BCE 2018 First Quarter MD&A.

LEGISLATIVE REVIEWS OF KEY LEGISLATION

On June 5, 2018, the Minister of Innovation, Science and Economic Development (ISED) and the Minister of Canadian Heritage announced the launch of a review of the Broadcasting Act, the Radiocommunication Act and the Telecommunications Act. The legislative review is intended to modernize these Acts to better address new realities impacting the broadcasting and telecommunications industries. The review will be led by a panel of external experts who will engage in consultations with industry members and Canadian consumers. The panel is to return a report with recommendations for legislative reforms by January 31, 2020. While reforms of these key pieces of legislation could have material impacts for our broadcasting, telecommunications and wireless businesses, it is unclear what recommendations the panel may make, what impacts those recommendations may have, if adopted, and when any adopted reforms would come into force.

TELECOMMUNICATIONS ACT

CRTC REPORT ON THE SALES PRACTICES OF LARGE TELECOMMUNICATIONS CARRIERS

On June 14, 2018, the Governor in Council issued an Order in Council directing the CRTC to make a report regarding the retail sales practices of Canada’s large telecommunications carriers. In preparing its report, the CRTC is to investigate whether large service providers are engaging in misleading or aggressive sales tactics, the controls that those carriers have in place to prevent misleading or aggressive sales tactics, existing consumer protections that promote fair treatment of consumers, and the most effective ways to expand consumer protections. The CRTC is to provide its report no later than February 28, 2019. On July 16, 2018, the CRTC launched Telecom and Broadcasting Notice of Consultation CRTC 2018-246 to examine the matters set out in the Order in Council. It is unclear what the CRTC may conclude as a result of this investigation. If the CRTC finds that intervention is required, it is not clear what interventions it would recommend and which may ultimately be adopted. As a result, we are unable to assess what potential impact, if any, the CRTC’s report may have on our business.

BROADCASTING ACT

CHANGES TO SIMULTANEOUS SUBSTITUTION

On May 10, 2018, the Supreme Court of Canada granted leave for Bell Canada and Bell Media to appeal the decision of the Federal Court of Appeal concerning the application of Broadcasting Order CRTC 2016-335 pursuant to which the CRTC eliminated simultaneous substitution for the Super Bowl. Leave was also granted to the National Football League to appeal on the same matter, to be heard in conjunction with the Bell Canada and Bell Media appeal. The appeals will be heard on December 4, 2018.

CRTC REPORT ON FUTURE PROGRAMMING DISTRIBUTION MODELS

On September 27, 2017, the Governor in Council, at the recommendation of the Minister of Canadian Heritage, issued a direction to the CRTC asking it to examine the distribution model or models of programming that are likely to exist in the future, how Canadians would access that programming, and the extent to which those models will ensure a vibrant domestic market that is capable of supporting the continued creation, production and distribution of Canadian programming, including original entertainment and information programming. On May 31, 2018, the CRTC released its broad ranging report entitled “Harnessing Change: The Future of Programming Distribution in Canada”. The Minister of Canadian Heritage indicated that the CRTC’s report will be used to inform a review of the Broadcasting Act and the Telecommunications Act. While there are recommendations in the report that could reflect positively on BCE’s business, it is unclear how the CRTC’s report, or future legislative reviews, may impact our business.

RADIOCOMMUNICATION ACT

CONSULTATION ON RELEASING MILLIMETRE WAVE SPECTRUM TO SUPPORT FIFTH GENERATION (5G)

On June 6, 2018, ISED launched a consultation entitled “Addendum to the Consultation on Releasing Millimetre Wave Spectrum to Support 5G”. Through this addendum consultation, ISED is seeking stakeholder feedback on releasing additional spectrum in the 26 Gigahertz band for flexible use to support 5G networks and systems, in addition to the frequency bands currently under consultation through the Millimetre Wave Consultation. As 5G is expected to be the next major advancement in mobile telecommunications standards, access to the millimetre wave spectrum will be important in order to facilitate the development and adoption of 5G technology. It is unclear what, if any, impact the results of this consultation could have on our business.

AUCTION OF RESIDUAL SPECTRUM LICENCES

On December 19, 2017, ISED released a decision entitled “Licensing Framework for Residual Spectrum Licences in the 700 Megahertz (MHz), 2500 MHz, 2300 MHz and PCS G Bands”. On June 29, 2018, ISED announced the final results of the auction. There were six different licence winners that won a total of 61 licences for a total of $43.4 million. We did not participate in the auction.

30   BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT
	6	MD&A	Regulatory environment

CONSULTATION ON THE SPECTRUM OUTLOOK 2018 TO 2022

On October 6, 2017, ISED initiated a consultation entitled “Consultation on the Spectrum Outlook 2018 to 2022”. On June 6, 2018, ISED released the results of its spectrum outlook consultation in a document entitled “Spectrum Outlook 2018 to 2022” (Spectrum Outlook Report). The purpose of the Spectrum Outlook Report is to provide stakeholders with an overview of ISED’s overall approach and planned activities related to meeting the expected demand for commercial mobile services, licence exempt applications, satellite services and wireless backhaul services over the next five years. The Spectrum Outlook Report also addresses issues related to access to spectrum and enabling new technologies. At this point in time, it is unclear what impact, if any, the Spectrum Outlook Report could have on our business.

CONSULTATION ON 3500 MHZ SPECTRUM

On June 6, 2018, ISED issued the “Consultation on Revisions to the 3500 MHz Band to Accommodate Flexible Use and Preliminary Consultation on Changes to the 3800 MHz Band”. ISED is seeking comments on issues such as allowing flexible use spectrum licences in the 3450-3475 MHz band, the amount of spectrum existing licence holders need to return if they decide to convert their existing licences to flexible use licences, the transition plan for existing licence holders, and the extent to which the 3700-4200 MHz band can accommodate coexisting services (e.g. fixed-satellite service with mobile and/or fixed wireless access). ISED will launch a consultation on the technical, policy and licensing framework for flexible use licences in the 3500 MHz band after releasing its decision regarding the issues raised in this consultation. It is unclear what impact the results of this consultation and future related processes could have on our business.

OTHER KEY LEGISLATION

PERSONAL INFORMATION PROTECTION AND ELECTRONIC DOCUMENTS ACT

On September 28, 2017, the Office of the Privacy Commissioner of Canada (OPC) issued its Notice of Consultation and Call for Comments on Draft Consent Guidance Documents. The specific guidance documents at issue in this consultation are entitled “Draft Guidelines: Obtaining Meaningful Online Consent” and “Draft Guidelines: Inappropriate Data Practices – Interpretation and Application of Subsection 5(3)”. The OPC issued these guidelines on May 24, 2018. The OPC indicated that its “Guidance on inappropriate data practices: Interpretation and application of subsection 5(3)” will be applied as of July 1, 2018, and that its “Guidelines for obtaining meaningful consent” will be applied as of January 1, 2019. The OPC’s guidelines could have significant impacts concerning how personal information may be collected, used and disclosed for analytics and marketing purposes.

BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT   31
7	MD&A	Business risks

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 2017 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 the BCE 2018 First Quarter MD&A and in this MD&A. The risks described in the BCE 2017 Annual MD&A, as updated in the BCE 2018 First Quarter MD&A and in this MD&A, include, without limitation, risks associated with:

• the intensity of competitive activity, including from new and emerging competitors, and the resulting impact on the cost of retaining existing customers and attracting new ones, as well as on our market shares, service volumes and pricing strategies
• the level of technological substitution and the presence of alternative service providers contributing to reduced utilization of our traditional wireline services
• regulatory initiatives, proceedings and decisions, government consultations and government positions that affect us and influence our business, including, in particular, those relating to mandatory access to networks, spectrum auctions, approval of acquisitions, broadcast licensing and foreign ownership requirements
• the inability to protect our physical and non-physical assets, including networks, IT systems, offices, corporate stores and sensitive information, from events and attacks such as cyber threats, and damage from fire and natural disasters
• security and data leakage exposure if security control protocols applicable to our cloud-based solutions are bypassed
• 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 failure to optimize network and IT deployment and upgrade 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
• online content theft and piracy and the absence of effective legal recourses to combat them
• events affecting the continuity of supply of products and services that we need to operate our business and to comply with various obligations from our third-party suppliers, outsourcers and consultants
• the failure of our procurement and vendor management practices to address risk exposures associated with existing and new supplier models

32   BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT
	7	MD&A	Business risks

• 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
• 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

We caution that the foregoing list of risk factors is not exhaustive and other factors could also adversely affect our results.

Please see section 9, Business risks, of the BCE 2017 Annual MD&A for a more complete description of the above-mentioned and other risks, which section, and the other sections of the BCE 2017 Annual MD&A referred to therein, are incorporated by reference in this section 7.

In addition, please also see section 4.7, Liquidity – Litigation in this MD&A for an update to the legal proceedings described in the BCE 2017 AIF, which section is incorporated by reference in this section 7. Please also see section 6, Regulatory environment, in this MD&A and in the BCE 2018 First Quarter MD&A for an update to the regulatory initiatives and proceedings described in the BCE 2017 Annual MD&A, which sections 6 are incorporated by reference in this section 7.

Except for the updates set out in section 4.7, Liquidity – Litigation, in section 6, Regulatory environment and in this section 7, Business risks in this MD&A, as well as in section 6, Regulatory environment in the BCE 2018 First Quarter MD&A, the risks described in the BCE 2017 Annual MD&A remain substantially unchanged.

UPDATE TO THE DESCRIPTION OF BUSINESS RISKS

FINANCIAL MANAGEMENT

The economic environment, pension rules or ineffective governance could have an adverse effect on our pension obligations, liquidity and financial performance, and we may be required to increase contributions to our post-employment benefit plans in the future.

In June 2018, we filed updated post-employment benefit plans valuations as of December 31, 2017, which confirmed our expected funding for 2018 as disclosed in the BCE 2017 Annual MD&A.

BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT   33
8	MD&A	Accounting policies, financial measures and controls

8 Accounting policies, financial measures and controls

8.1 Our accounting policies

BCE’s Q2 2018 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 August 1, 2018. 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, 2017, except as noted below. BCE’s Q2 2018 Financial Statements do not include all of the notes required in the annual financial statements.

ADOPTION OF NEW ACCOUNTING STANDARDS

As required, effective January 1, 2018, we adopted the following new accounting standards.

IFRS 15

We applied IFRS 15, Revenue from Contracts with Customers, retrospectively to each prior reporting period presented. IFRS 15 establishes principles to record revenues from contracts for the sale of products or services, unless the contracts are in the scope of other IFRSs.

IFRS 15 principally affects the timing of revenue recognition and how we classify revenues between product and service in our Bell Wireless segment. IFRS 15 also affects how we account for costs to obtain a contract.

• Under multiple-element arrangements, revenue allocated to a satisfied performance obligation is no longer limited to the amount that is not contingent upon the satisfaction of additional performance obligations. Although the total revenue recognized during the term of a contract is largely unaffected, revenue recognition may be accelerated and reflected ahead of the associated cash inflows. This results in the recognition of a contract asset on the balance sheet, corresponding to the amount of revenue recognized and not yet billed to a customer. The contract asset is realized over the term of the customer contract.
• As revenues allocated to a satisfied performance obligation are no longer limited to the non-contingent amount, a greater proportion of the total revenue recognized during the term of certain customer contracts may be attributed to a delivered product, resulting in a corresponding decrease in service revenue
• Sales commissions and any other incremental costs of obtaining a contract with a customer are recognized on the statement of financial position and amortized on a systematic basis that is consistent with the period and pattern of transfer to the customer of the related products or services, except as noted below

Under IFRS 15, we apply the following practical expedients.

• Completed contracts that begin and end within the same annual reporting period and those completed before January 1, 2017 are not restated
• Contracts modified prior to January 1, 2017 are not restated. The aggregate effect of these modifications is reflected when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price to the satisfied and unsatisfied performance obligations.
• When our right to consideration from a customer corresponds directly with the value to the customer of the products and services transferred to date, we recognize revenue in the amount to which we have a right to invoice. For such contracts and for performance obligations that are part of a contract that has an original expected duration of one year or less, the transaction price amount allocated to the remaining performance obligations and an explanation of when we expect to recognise that amount as revenue are not disclosed.
• Costs of obtaining a contract that would be amortized within one year or less are immediately expensed

IFRS 9

We applied IFRS 9, Financial Instruments (as revised in July 2014) and the related consequential amendments to other IFRSs retrospectively, except for the changes to hedge accounting described below which are applied prospectively. In accordance with the transition requirements, comparative periods have not been restated. The adoption of IFRS 9 did not have a significant impact on the carrying amounts of our financial instruments as at January 1, 2018. As a result of the adoption of IFRS 9, our January 1, 2018 deficit increased by $4 million.

IFRS 9 replaces the classification and measurement models in IAS 39, Financial Instruments: Recognition and Measurement, with a single model under which financial assets are classified and measured at amortized cost, fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVTPL). This classification is based on the business model in which a financial asset is managed and its contractual cash flow characteristics and eliminates the IAS 39 categories of held-to-maturity, loans and receivables and available-for-sale. The adoption of IFRS 9 did not, however, change the measurement bases of our financial assets.

• Cash and cash equivalents and derivative instruments measured at FVTPL under IAS 39 continue to be measured as such under IFRS 9
• Portfolio investments in equity securities and certain derivative instruments that qualify for cash flow hedge accounting measured at FVOCI under IAS 39 continue to be measured as such under IFRS 9
• Trade and other receivables continue to be measured at amortized cost under IFRS 9

34   BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT
	8	MD&A	Accounting policies, financial measures and controls

The impairment of financial assets under IFRS 9 is based on an expected credit loss (ECL) model, as opposed to the incurred loss model in IAS 39. IFRS 9 applies to financial assets measured at amortized cost and contract assets and requires that we consider factors that include historical, current and forward-looking information when measuring the ECL. We use the simplified approach for measuring losses based on the lifetime ECL for trade receivables and contract assets. Amounts considered uncollectible are written off and recognized in Operating costs in the income statement.

We have adopted the general hedge accounting model in IFRS 9 which requires that we ensure hedge accounting relationships are consistent with our risk management objectives and strategies. We also apply a more qualitative and forward-looking approach in assessing hedge effectiveness as a retrospective assessment is no longer required.

• Under IFRS 9, amounts related to cash flow hedges of anticipated purchases of non-financial assets settled during the period are reclassified from Accumulated other comprehensive income to the initial cost of the non-financial asset when it is recognized. Under IAS 39, such amounts were reclassified from Other comprehensive income. Amounts related to cash flow hedges of other anticipated purchases continue to be reclassified from Other comprehensive income to net earnings under IFRS 9.

FUTURE CHANGES TO ACCOUNTING STANDARDS

As outlined in Note 2, Significant accounting policies in our consolidated financial statements for the year ended December 31, 2017, the IASB issued IFRS 16 – Leases with an effective date of January 1, 2019.

We continue to make progress towards adoption of IFRS 16 according to our detailed implementation plan. It is not yet possible to make a reliable estimate of the impact of the new standard on our financial statements. We will adopt IFRS 16 on January 1, 2019, using a modified retrospective approach.

ADOPTION OF IFRS 15

As a result of adopting IFRS 15, we have changed the comparative figures for the three and six months ended June 30, 2017 and the year ended December 31, 2017. The impacts of adopting IFRS 15 on our previously reported results for the three and six months ended June 30, 2017 are provided below. The impacts of adopting IFRS 15 on our statement of financial position as at January 1, 2017 and December 31, 2017, our consolidated income statement and consolidated statement of cash flows for the year ended December 31, 2017, along with updated 2017 annual disclosures are included in Note 3, Adoption of IFRS 15, of our unaudited consolidated financial statements for the period ended March 31, 2018.

CONSOLIDATED INCOME STATEMENTS

The table below shows the impacts of adopting IFRS 15 on our previously reported consolidated income statements for the three and six months ended June 30, 2017.

	THREE MONTHS ENDED JUNE 30, 2017						SIX MONTHS ENDED JUNE 30, 2017
(IN MILLIONS OF CANADIAN DOLLARS, EXCEPT SHARE AMOUNTS)	2017 AS PREVIOUSLY REPORTED		IFRS 15 IMPACTS		2017 UPON ADOPTION OF IFRS 15		2017 AS PREVIOUSLY REPORTED		IFRS 15 IMPACTS		2017 UPON ADOPTION OF IFRS 15
Operating revenues	5,699		(11	)	5,688		11,083		(59	)	11,024
Operating costs	(3,318	)	12		(3,306	)	(6,488	)	12		(6,476	)
Severance, acquisition and other costs	(36	)	—		(36	)	(120	)	—		(120	)
Depreciation	(769	)	2		(767	)	(1,491	)	—		(1,491	)
Amortization	(211	)	1		(210	)	(396	)	1		(395	)
Finance costs
Interest expense	(238	)	—		(238	)	(472	)	—		(472	)
Interest on post-employment benefit obligations	(18	)	—		(18	)	(36	)	—		(36	)
Other (expense) income	(1	)	—		(1	)	16		—		16
Income taxes	(297	)	(1	)	(298	)	(560	)	12		(548	)
Net earnings	811		3		814		1,536		(34	)	1,502
Net earnings attributable to:
Common shareholders	762		3		765		1,441		(34	)	1,407
Preferred shareholders	32		—		32		63		—		63
Non-controlling interest	17		—		17		32		—		32
Net earnings	811		3		814		1,536		(34	)	1,502
Net earnings per common share – basic and diluted	0.84		0.01		0.85		1.62		(0.04	)	1.58
Average number of common shares outstanding – basic (millions)	900.1		—		900.1		888.0		—		888.0

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8	MD&A	Accounting policies, financial measures and controls

CONSOLIDATED STATEMENT OF CASH FLOWS

The table below shows the impacts of adopting IFRS 15 on select line items of our previously reported 2017 statement of cash flows for the three and six months ended June 30, 2017.

	THREE MONTHS ENDED JUNE 30, 2017				SIX MONTHS ENDED JUNE 30, 2017
	2017 AS PREVIOUSLY REPORTED	IFRS 15 IMPACTS		2017 UPON ADOPTION OF IFRS 15	2017 AS PREVIOUSLY REPORTED	IFRS 15 IMPACTS		2017 UPON ADOPTION OF IFRS 15
Cash flows from operating activities
Net earnings	811	3		814	1,536	(34	)	1,502
Depreciation and amortization	980	(3	)	977	1,887	(1	)	1,886
Income taxes	297	1		298	560	(12	)	548
Net change in operating assets and liabilities	242	(1	)	241	8	47		55
Cash flows from operating activities	2,154	—		2,154	3,467	—		3,467

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

This section describes the non-GAAP financial measures and KPIs we use in this MD&A to explain our financial results. It also provides reconciliations of the non-GAAP financial measures to the most comparable IFRS financial measures.

In Q1 2018, we updated our definition of adjusted net earnings and adjusted EPS to exclude net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans as they may affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. Adjusted net earnings and adjusted EPS for 2017 have also been updated for comparability purposes.

ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN

The terms adjusted EBITDA and adjusted EBITDA margin do not have any standardized meaning under IFRS. Therefore, they are unlikely to be comparable to similar measures presented by other issuers.

We define adjusted EBITDA as operating revenues less operating costs, as shown in BCE’s consolidated income statements. Adjusted EBITDA for BCE’s segments is the same as segment profit as reported in Note 4, Segmented information, in BCE’s Q2 2018 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.

	Q2 2018		Q2 2017		YTD 2018		YTD 2017
Net earnings	755		814		1,464		1,502
Severance, acquisition and other costs	24		36		24		120
Depreciation	787		767		1,567		1,491
Amortization	221		210		433		395
Finance costs
Interest expense	246		238		486		472
Interest on post-employment benefit obligations	17		18		34		36
Other expense (income)	88		1		149		(16	)
Income taxes	292		298		527		548
Adjusted EBITDA	2,430		2,382		4,684		4,548
BCE operating revenues	5,786		5,688		11,376		11,024
Adjusted EBITDA margin	42.0	%	41.9	%	41.2	%	41.3	%

36   BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT
	8	MD&A	Accounting policies, financial measures and controls

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 mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans, net losses (gains) on investments, early debt redemption costs and impairment charges. 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 mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans, net losses (gains) on investments, early debt redemption costs and impairment charges, net of tax and non-controlling (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.

	Q2 2018		Q2 2017		YTD 2018		YTD 2017
	TOTAL	PER SHARE	TOTAL	PER SHARE	TOTAL	PER SHARE	TOTAL		PER SHARE
Net earnings attributable to common shareholders	704	0.79	765	0.85	1,365	1.52	1,407		1.58
Severance, acquisition and other costs	18	0.02	27	0.04	17	0.02	92		0.11
Net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans	22	0.02	—	—	78	0.09	(18	)	(0.02	)
Net losses on investments	20	0.02	—	—	20	0.02	14		0.02
Early debt redemption costs	13	0.01	3	—	13	0.01	3		—
Impairment charges	—	—	—	—	3	—	—		—
Adjusted net earnings	777	0.86	795	0.89	1,496	1.66	1,498		1.69

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.

	Q2 2018		Q2 2017		YTD 2018		YTD 2017
Cash flows from operating activities	2,057		2,154		3,553		3,467
Capital expenditures	(1,056	)	(1,042	)	(1,987	)	(1,894	)
Cash dividends paid on preferred shares	(35	)	(30	)	(68	)	(73	)
Cash dividends paid by subsidiaries to NCI	—		(9	)	(13	)	(21	)
Acquisition and other costs paid	28		21		46		104
Free cash flow	994		1,094		1,531		1,583

BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT   37
8	MD&A	Accounting policies, financial measures and controls

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.

	JUNE 30, 2018		DECEMBER 31, 2017
Debt due within one year	5,732		5,178
Long-term debt	18,367		18,215
50% of outstanding preferred shares	2,002		2,002
Cash and cash equivalents	(390	)	(625	)
Net debt	25,711		24,770

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, which has been updated to reflect the adoption of IFRS 15. 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.
ABPU	Average billing per user (ABPU) approximates the average amount billed to customers on a monthly basis, which is used to track our recurring billing streams. This measure is the same as blended ARPU prior to the adoption of IFRS 15. Wireless blended ABPU is calculated by dividing certain customer billings 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

38   BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT
	8	MD&A	Accounting policies, financial measures and controls

8.3 Controls and procedures

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

No changes were made in our internal control over financial reporting during the quarter ended June 30, 2018 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. We have completed the design of internal controls with respect to the adoption of IFRS 15 and are implementing them with no significant changes to our internal control over financial reporting.

	BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT    39
Consolidated financial statements

Consolidated financial statements

Consolidated income statements

FOR THE PERIOD ENDED JUNE 30		THREE MONTHS				SIX MONTHS
(IN MILLIONS OF CANADIAN DOLLARS, EXCEPT SHARE AMOUNTS) (UNAUDITED)	NOTE	2018		2017		2018		2017
Operating revenues	4	5,786		5,688		11,376		11,024
Operating costs	4, 5	(3,356	)	(3,306	)	(6,692	)	(6,476	)
Severance, acquisition and other costs	4, 6	(24	)	(36	)	(24	)	(120	)
Depreciation	4	(787	)	(767	)	(1,567	)	(1,491	)
Amortization	4	(221	)	(210	)	(433	)	(395	)
Finance costs
Interest expense		(246	)	(238	)	(486	)	(472	)
Interest on post-employment benefit obligations	10	(17	)	(18	)	(34	)	(36	)
Other (expense) income	7	(88	)	(1	)	(149	)	16
Income taxes		(292	)	(298	)	(527	)	(548	)
Net earnings		755		814		1,464		1,502
Net earnings attributable to:
Common shareholders		704		765		1,365		1,407
Preferred shareholders		35		32		71		63
Non-controlling interest		16		17		28		32
Net earnings		755		814		1,464		1,502
Net earnings per common share – basic and diluted	8	0.79		0.85		1.52		1.58
Average number of common shares outstanding – basic (millions)		898.0		900.1		899.1		888.0

40     BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT
	Consolidated financial statements

Consolidated statements of comprehensive income

FOR THE PERIOD ENDED JUNE 30	THREE MONTHS			SIX MONTHS
(IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)	2018	2017		2018	2017
Net earnings	755	814		1,464	1,502
Other comprehensive income (loss), net of income taxes
Items that will be subsequently reclassified to net earnings
Net change in value of derivatives designated as cash flow hedges, net of income taxes of ($2) million and $9 million for the three months ended June 30, 2018 and 2017, respectively, and ($5) million and $12 million for the six months ended June 30, 2018 and 2017, respectively(1)	7	(30	)	14	(39	)
Items that will not be reclassified to net earnings
Actuarial gains (losses) on post-employment benefit plans, net of income taxes of ($136) million and $95 million for the three months ended June 30, 2018 and 2017, respectively, and ($94) million and $214 million for the six months ended June 30, 2018 and 2017, respectively(2)	366	(256	)	254	(579	)
Net change in value of derivatives designated as cash flow hedges, net of income taxes of ($6) million and nil for the three months ended June 30, 2018 and 2017, respectively, and ($13) million and nil for the six months ended June 30, 2018 and 2017, respectively(1)	16	—		35	—
Other comprehensive income (loss)	389	(286	)	303	(618	)
Total comprehensive income	1,144	528		1,767	884
Total comprehensive income attributable to:
Common shareholders	1,091	479		1,665	789
Preferred shareholders	35	32		71	63
Non-controlling interest	18	17		31	32
Total comprehensive income	1,144	528		1,767	884

(1)	Amounts relating to the net change in value of derivatives for the three and six month periods ended June 30, 2017 have not been restated, in accordance with the transition requirements upon adoption of IFRS 9 – Financial Instruments on January 1, 2018. See Note 2, Basis of presentation and significant accounting policies for further details.
(2)	The discount rate used to value our post-employment benefit obligations at June 30, 2018 was 3.7% compared to 3.6% at March 31, 2018 and December 31, 2017. The discount rate used to value our post-employment benefit obligations at June 30, 2017 was 3.6% compared to 3.8% at March 31, 2017 and 4.0% at December 31, 2016.

	BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT    41
Consolidated financial statements

Consolidated statements of financial position

(IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)	NOTE	JUNE 30, 2018		DECEMBER 31, 2017
ASSETS
Current assets
Cash		254		442
Cash equivalents		136		183
Trade and other receivables		2,932		3,129
Inventory		436		380
Contract assets		856		832
Contract costs		345		350
Prepaid expenses		376		217
Other current assets		222		122
Total current assets		5,557		5,655
Non-current assets
Contract assets		414		431
Contract costs		287		286
Property, plant and equipment		24,392		24,029
Intangible assets		13,407		13,258
Deferred tax assets		156		144
Investments in associates and joint ventures		803		814
Other non-current assets		975		757
Goodwill	3	10,568		10,428
Total non-current assets		51,002		50,147
Total assets		56,559		55,802
LIABILITIES
Current liabilities
Trade payables and other liabilities		3,603		3,875
Contract liabilities		687		693
Interest payable		177		168
Dividends payable		701		678
Current tax liabilities		148		140
Debt due within one year	9	5,732		5,178
Total current liabilities		11,048		10,732
Non-current liabilities
Contract liabilities		196		201
Long-term debt	9	18,367		18,215
Deferred tax liabilities		3,139		2,870
Post-employment benefit obligations	10	1,987		2,108
Other non-current liabilities		1,098		1,051
Total non-current liabilities		24,787		24,445
Total liabilities		35,835		35,177
EQUITY
Equity attributable to BCE shareholders
Preferred shares	12	4,004		4,004
Common shares	12	20,027		20,091
Contributed surplus		1,151		1,162
Accumulated other comprehensive income (loss)		34		(17	)
Deficit		(4,811	)	(4,938	)
Total equity attributable to BCE shareholders		20,405		20,302
Non-controlling interest		319		323
Total equity		20,724		20,625
Total liabilities and equity		56,559		55,802

42     BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT
	Consolidated financial statements

Consolidated statements of changes in equity

FOR THE PERIOD ENDED JUNE 30, 2018 (IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)		ATTRIBUTABLE TO BCE SHAREHOLDERS
							ACCUMU-
							LATED
							OTHER
							COMPRE-						NON-
					CONTRI-		HENSIVE						CONTROL-
		PREFERRED	COMMON		BUTED		(LOSS)						LING		TOTAL
	NOTE	SHARES	SHARES		SURPLUS		INCOME		DEFICIT		TOTAL		INTEREST		EQUITY
Balance at December 31, 2017		4,004	20,091		1,162		(17	)	(4,938	)	20,302		323		20,625
Adoption of IFRS 9	2	—	—		—		—		(4	)	(4	)	—		(4	)
Balance at January 1, 2018		4,004	20,091		1,162		(17	)	(4,942	)	20,298		323		20,621
Net earnings		—	—		—		—		1,436		1,436		28		1,464
Other comprehensive income		—	—		—		46		254		300		3		303
Total comprehensive income		—	—		—		46		1,690		1,736		31		1,767
Common shares issued under employee stock option plan		—	4		—		—		—		4		—		4
Other share-based compensation		—	—		(8	)	—		(23	)	(31	)	—		(31	)
Repurchase of common shares	12	—	(69	)	(3	)	—		(103	)	(175	)	—		(175	)
Common shares issued for the acquisition of AlarmForce Industries Inc. (AlarmForce)	3	—	1		—		—		—		1		—		1
Dividends declared on BCE common and preferred shares		—	—		—		—		(1,427	)	(1,427	)	—		(1,427	)
Dividends declared by subsidiaries to non-controlling interest		—	—		—		—		—		—		(3	)	(3	)
Settlement of cash flow hedges transferred to the cost basis of hedged items		—	—		—		5		—		5		—		5
Return of capital to non-controlling interest		—	—		—		—		(6	)	(6	)	(35	)	(41	)
Other		—	—		—		—		—		—		3		3
Balance at June 30, 2018		4,004	20,027		1,151		34		(4,811	)	20,405		319		20,724

FOR THE PERIOD ENDED JUNE 30, 2017 (IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)		ATTRIBUTABLE TO BCE SHAREHOLDERS
						ACCUMU-
						LATED
						OTHER
						COMPRE-						NON-
				CONTRI-		HENSIVE						CONTROL-
		PREFERRED	COMMON	BUTED		INCOME						LING		TOTAL
	NOTE	SHARES	SHARES	SURPLUS		(LOSS)		DEFICIT		TOTAL		INTEREST		EQUITY
Balance at January 1, 2017		4,004	18,370	1,160		46		(4,978	)	18,602		314		18,916
Net earnings		—	—	—		—		1,470		1,470		32		1,502
Other comprehensive loss		—	—	—		(39	)	(579	)	(618	)	—		(618	)
Total comprehensive (loss) income		—	—	—		(39	)	891		852		32		884
Common shares issued under employee stock option plan		—	93	(5	)	—		—		88		—		88
Common shares issued under employee savings plan		—	5	—		—		—		5		—		5
Other share-based compensation		—	—	(10	)	—		(17	)	(27	)	—		(27	)
Common shares issued for the acquisition of Manitoba Telecom Services Inc. (MTS)	3	—	1,594	—		—		—		1,594		—		1,594
Dividends declared on BCE common and preferred shares		—	—	—		—		(1,334	)	(1,334	)	—		(1,334	)
Dividends declared by subsidiaries to non-controlling interest		—	—	—		—		—		—		(22	)	(22	)
Balance at June 30, 2017		4,004	20,062	1,145		7		(5,438	)	19,780		324		20,104

	BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT    43
Consolidated financial statements

Consolidated statements of cash flows

FOR THE PERIOD ENDED JUNE 30		THREE MONTHS				SIX MONTHS
(IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)	NOTE	2018		2017		2018		2017
Cash flows from operating activities
Net earnings		755		814		1,464		1,502
Adjustments to reconcile net earnings to cash flows from operating activities
Severance, acquisition and other costs	6	24		36		24		120
Depreciation and amortization		1,008		977		2,000		1,886
Post-employment benefit plans cost	10	80		82		170		150
Net interest expense		243		235		481		465
Losses on investments	7	—		—		—		12
Income taxes		292		298		527		548
Contributions to post-employment benefit plans		(74	)	(86	)	(161	)	(174	)
Payments under other post-employment benefit plans		(19	)	(19	)	(38	)	(38	)
Severance and other costs paid		(33	)	(40	)	(68	)	(81	)
Interest paid		(252	)	(249	)	(488	)	(472	)
Income taxes paid (net of refunds)		(113	)	(114	)	(397	)	(402	)
Acquisition and other costs paid		(28	)	(21	)	(46	)	(104	)
Net change in operating assets and liabilities		174		241		85		55
Cash flows from operating activities		2,057		2,154		3,553		3,467
Cash flows used in investing activities
Capital expenditures		(1,056	)	(1,042	)	(1,987	)	(1,894	)
Business acquisitions	3	(21	)	—		(244	)	(1,635	)
Disposition of intangibles and other assets	3	—		323		68		323
Acquisition of spectrum licences		—		—		(36	)	—
Other investing activities		(20	)	(5	)	(55	)	(14	)
Cash flows used in investing activities		(1,097	)	(724	)	(2,254	)	(3,220	)
Cash flows used in financing activities
Increase in notes payable		97		127		40		435
Decrease in securitized trade receivables		(2	)	(360	)	(2	)	(10	)
Issue of long-term debt	9	—		—		1,466		1,496
Repayment of long-term debt	9	(1,068	)	(472	)	(1,241	)	(1,076	)
Issue of common shares		1		41		2		89
Repurchase of shares for settlement of share-based payments		(49	)	(45	)	(137	)	(141	)
Repurchase of common shares	12	—		—		(175	)	—
Cash dividends paid on common shares		(678	)	(626	)	(1,324	)	(1,220	)
Cash dividends paid on preferred shares		(35	)	(30	)	(68	)	(73	)
Cash dividends paid by subsidiaries to non-controlling interest		—		(9	)	(13	)	(21	)
Return of capital to non-controlling interest		(12	)	—		(41	)	—
Other financing activities		(23	)	(9	)	(41	)	(22	)
Cash flows used in financing activities		(1,769	)	(1,383	)	(1,534	)	(543	)
Net decrease in cash		(421	)	(19	)	(188	)	(183	)
Cash at beginning of period		675		439		442		603
Cash at end of period		254		420		254		420
Net (decrease) increase in cash equivalents		(388	)	66		(47	)	(113	)
Cash equivalents at beginning of period		524		71		183		250
Cash equivalents at end of period		136		137		136		137

44     BCE Inc.   2018 SECOND 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 2017 annual consolidated financial statements, approved by BCE’s board of directors on March 8, 2018.

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

Note 2 Basis of presentation and significant accounting policies

These 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 August 1, 2018. These 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, 2017, except as noted below. The impacts of adopting IFRS 15 on our previously reported results for the three and six months ended June 30, 2017 are provided in Note 14, Adoption of IFRS 15. The impacts of adopting IFRS 15 on our statement of financial position as at January 1, 2017 and December 31, 2017, our consolidated income statement and consolidated statement of cash flows for the year ended December 31, 2017, along with updated 2017 annual disclosures are included in Note 3, Adoption of IFRS 15, of our unaudited consolidated financial statements for the period ended March 31, 2018.

These 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.

ADOPTION OF NEW ACCOUNTING STANDARDS

As required, effective January 1, 2018, we adopted the following new accounting standards.

IFRS 15

We applied IFRS 15, Revenue from Contracts with Customers, retrospectively to each prior reporting period presented. IFRS 15 establishes principles to record revenues from contracts for the sale of products or services, unless the contracts are in the scope of other IFRSs.

IFRS 15 principally affects the timing of revenue recognition and how we classify revenues between product and service in our Bell Wireless segment. IFRS 15 also affects how we account for costs to obtain a contract.

• Under multiple-element arrangements, revenue allocated to a satisfied performance obligation is no longer limited to the amount that is not contingent upon the satisfaction of additional performance obligations. Although the total revenue recognized during the term of a contract is largely unaffected, revenue recognition may be accelerated and reflected ahead of the associated cash inflows. This results in the recognition of a contract asset on the balance sheet, corresponding to the amount of revenue recognized and not yet billed to a customer. The contract asset is realized over the term of the customer contract.
• As revenues allocated to a satisfied performance obligation are no longer limited to the non-contingent amount, a greater proportion of the total revenue recognized during the term of certain customer contracts may be attributed to a delivered product, resulting in a corresponding decrease in service revenue
• Sales commissions and any other incremental costs of obtaining a contract with a customer are recognized on the statement of financial position and amortized on a systematic basis that is consistent with the period and pattern of transfer to the customer of the related products or services, except as noted below

Under IFRS 15, we apply the following practical expedients.

• Completed contracts that begin and end within the same annual reporting period and those completed before January 1, 2017 are not restated
• Contracts modified prior to January 1, 2017 are not restated. The aggregate effect of these modifications is reflected when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price to the satisfied and unsatisfied performance obligations.
• When our right to consideration from a customer corresponds directly with the value to the customer of the products and services transferred to date, we recognize revenue in the amount to which we have a right to invoice. For such contracts and for performance obligations that are part of a contract that has an original expected duration of one year or less, the transaction price amount allocated to the remaining performance obligations and an explanation of when we expect to recognise that amount as revenue are not disclosed.
• Costs of obtaining a contract that would be amortized within one year or less are immediately expensed

	BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT    45
Notes to consolidated financial statements

IFRS 9

We applied IFRS 9, Financial Instruments (as revised in July 2014) and the related consequential amendments to other IFRSs retrospectively, except for the changes to hedge accounting described below which are applied prospectively. In accordance with the transition requirements, comparative periods have not been restated. The adoption of IFRS 9 did not have a significant impact on the carrying amounts of our financial instruments as at January 1, 2018. As a result of the adoption of IFRS 9, our January 1, 2018 deficit increased by $4 million.

IFRS 9 replaces the classification and measurement models in IAS 39, Financial Instruments: Recognition and Measurement, with a single model under which financial assets are classified and measured at amortized cost, fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVTPL). This classification is based on the business model in which a financial asset is managed and its contractual cash flow characteristics and eliminates the IAS 39 categories of held-to-maturity, loans and receivables and available-for-sale. The adoption of IFRS 9 did not, however, change the measurement bases of our financial assets.

• Cash and cash equivalents and derivative instruments measured at FVTPL under IAS 39 continue to be measured as such under IFRS 9
• Portfolio investments in equity securities and certain derivative instruments that qualify for cash flow hedge accounting measured at FVOCI under IAS 39 continue to be measured as such under IFRS 9
• Trade and other receivables continue to be measured at amortized cost under IFRS 9

The impairment of financial assets under IFRS 9 is based on an expected credit loss (ECL) model, as opposed to the incurred loss model in IAS 39. IFRS 9 applies to financial assets measured at amortized cost and contract assets and requires that we consider factors that include historical, current and forward-looking information when measuring the ECL. We use the simplified approach for measuring losses based on the lifetime ECL for trade receivables and contract assets. Amounts considered uncollectible are written off and recognized in Operating costs in the income statement.

We have adopted the general hedge accounting model in IFRS 9 which requires that we ensure hedge accounting relationships are consistent with our risk management objectives and strategies. We also apply a more qualitative and forward-looking approach in assessing hedge effectiveness as a retrospective assessment is no longer required.

• Under IFRS 9, amounts related to cash flow hedges of anticipated purchases of non-financial assets settled during the period are reclassified from Accumulated other comprehensive income to the initial cost of the non-financial asset when it is recognized. Under IAS 39, such amounts were reclassified from Other comprehensive income. Amounts related to cash flow hedges of other anticipated purchases continue to be reclassified from Other comprehensive income to net earnings under IFRS 9.

FUTURE CHANGES TO ACCOUNTING STANDARDS

As outlined in Note 2, Significant accounting policies in our consolidated financial statements for the year ended December 31, 2017, the IASB issued IFRS 16 – Leases with an effective date of January 1, 2019.

We continue to make progress towards adoption of IFRS 16 according to our detailed implementation plan. It is not yet possible to make a reliable estimate of the impact of the new standard on our financial statements. We will adopt IFRS 16 on January 1, 2019, using a modified retrospective approach.

Note 3 Business acquisitions and dispositions

2018

ACQUISITION OF ALARMFORCE

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

Subsequent to the acquisition of AlarmForce, on January 5, 2018, BCE sold AlarmForce’s approximate 39,000 customer accounts in British Columbia, Alberta and Saskatchewan to TELUS Communications Inc. (Telus) for total proceeds of approximately $68 million.

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

AlarmForce is included in our Bell Wireline segment in our consolidated financial statements.

46     BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT
	Notes to consolidated financial statements

The purchase price allocation includes provisional estimates, in particular for 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.

	TOTAL
Cash consideration	181
Issuance of 22,531 BCE common shares(1)	1
Total cost to be allocated	182
Assets held for sale(2)	68
Property, plant and equipment	8
Finite-life intangible assets(3)	34
Indefinite-life intangible assets	1
Deferred tax liabilities	(7	)
Other non-current liabilities	(1	)
	103
Cash and cash equivalents	4
Fair value of net assets acquired	107
Goodwill(4)	75

(1)	Recorded at fair value based on the market price of BCE common shares on the acquisition date.
(2)	Consists mainly of customer relationships recorded at fair value less costs to sell.
(3)	Consists mainly of customer relationships.
(4)	Goodwill arises principally from expected synergies and future growth and is not deductible for tax purposes. Goodwill arising from the transaction was allocated to our Bell Wireline group of CGUs.

Revenues of $26 million and net earnings of $2 million from AlarmForce are included in the consolidated income statements from the date of acquisition. These amounts reflect the amortization of certain elements of the purchase price allocation and related tax adjustments.

TERMINATION OF AGREEMENT TO ACQUIRE SÉRIES+ AND HISTORIA SPECIALTY CHANNELS

On October 17, 2017, BCE entered into an agreement with Corus Entertainment Inc. (Corus) to acquire French-language specialty channels Séries+ and Historia. On May 28, 2018, the Competition Bureau announced that it did not approve the sale of the channels to BCE. As a result, BCE and Corus terminated their agreement.

FUTURE BUSINESS ACQUISITIONS

On June 30, 2018, Bell entered into an agreement to acquire a corporation that provides broadband network services to commercial and government accounts. The transaction is valued at approximately $152 million and is expected to close by the end of August 2018.

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.

Revenues of $271 million and net earnings of $38 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 six months ended June 30, 2017 would have been $11,217 million and $1,513 million, respectively, had the acquisition of MTS occurred on January 1, 2017. These amounts reflect the elimination of intercompany transactions, financing costs and the amortization of certain elements of the purchase price allocation and related tax adjustments.

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

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.

The transaction did not have a significant impact on our consolidated operating revenues and net earnings for the six months ended June 30, 2017.

	BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT    47
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 three month periods ended June 30, 2018 and 2017.

		BELL		BELL		BELL		INTERSEGMENT
FOR THE THREE MONTH PERIOD ENDED JUNE 30, 2018	NOTE	WIRELESS		WIRELINE		MEDIA		ELIMINATIONS		BCE
Operating revenues
External customers		2,032		3,077		677		—		5,786
Inter-segment		14		58		114		(186	)	—
Total operating revenues		2,046		3,135		791		(186	)	5,786
Operating costs	5	(1,142	)	(1,814	)	(586	)	186		(3,356	)
Segment profit(1)		904		1,321		205		—		2,430
Severance, acquisition and other costs	6	(3	)	(13	)	(8	)	—		(24	)
Depreciation and amortization		(165	)	(803	)	(40	)	—		(1,008	)
Finance costs
Interest expense										(246	)
Interest on post-employment benefit obligations	10									(17	)
Other expense	7									(88	)
Income taxes										(292	)
Net earnings										755

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

		BELL		BELL		BELL		INTERSEGMENT
FOR THE THREE MONTH PERIOD ENDED JUNE 30, 2017	NOTE	WIRELESS		WIRELINE		MEDIA		ELIMINATIONS		BCE
Operating revenues
External customers		1,938		3,067		683		—		5,688
Inter-segment		11		50		113		(174	)	—
Total operating revenues		1,949		3,117		796		(174	)	5,688
Operating costs	5	(1,098	)	(1,810	)	(572	)	174		(3,306	)
Segment profit(1)		851		1,307		224		—		2,382
Severance, acquisition and other costs	6	—		(35	)	(1	)	—		(36	)
Depreciation and amortization		(143	)	(796	)	(38	)	—		(977	)
Finance costs
Interest expense										(238	)
Interest on post-employment benefit obligations	10									(18	)
Other expense	7									(1	)
Income taxes										(298	)
Net earnings										814

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

48     BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT
	Notes to consolidated financial statements

The following tables present financial information by segment for the six month periods ended June 30, 2018 and 2017.

		BELL		BELL		BELL		INTERSEGMENT
FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2018	NOTE	WIRELESS		WIRELINE		MEDIA		ELIMINATIONS		BCE
Operating revenues
External customers		3,966		6,102		1,308		—		11,376
Inter-segment		26		117		232		(375	)	—
Total operating revenues		3,992		6,219		1,540		(375	)	11,376
Operating costs	5	(2,266	)	(3,596	)	(1,205	)	375		(6,692	)
Segment profit(1)		1,726		2,623		335		—		4,684
Severance, acquisition and other costs	6	(6	)	(8	)	(10	)	—		(24	)
Depreciation and amortization		(325	)	(1,598	)	(77	)	—		(2,000	)
Finance costs
Interest expense										(486	)
Interest on post-employment benefit obligations	10									(34	)
Other expense	7									(149	)
Income taxes										(527	)
Net earnings										1,464

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

		BELL		BELL		BELL		INTERSEGMENT
FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2017	NOTE	WIRELESS		WIRELINE		MEDIA		ELIMINATIONS		BCE
Operating revenues
External customers		3,694		5,995		1,335		—		11,024
Inter-segment		22		99		212		(333	)	—
Total operating revenues		3,716		6,094		1,547		(333	)	11,024
Operating costs	5	(2,096	)	(3,524	)	(1,189	)	333		(6,476	)
Segment profit(1)		1,620		2,570		358		—		4,548
Severance, acquisition and other costs	6	(5	)	(102	)	(13	)	—		(120	)
Depreciation and amortization		(281	)	(1,532	)	(73	)	—		(1,886	)
Finance costs
Interest expense										(472	)
Interest on post-employment benefit obligations	10									(36	)
Other income	7									16
Income taxes										(548	)
Net earnings										1,502

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

REVENUES BY SERVICES AND PRODUCTS

	THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2018	2017	2018	2017
Services(1)
Wireless	1,562	1,508	3,062	2,923
Data	1,869	1,812	3,689	3,531
Voice	957	1,020	1,907	2,001
Media	677	683	1,308	1,335
Other services	64	55	127	99
Total services	5,129	5,078	10,093	9,889
Products(2)
Wireless	470	430	904	771
Data	98	95	202	194
Equipment and other	89	85	177	170
Total products	657	610	1,283	1,135
Total operating revenues	5,786	5,688	11,376	11,024

(1)	Our service revenues are generally recognized over time.
(2)	Our product revenues are generally recognized at a point in time.

	BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT    49
Notes to consolidated financial statements

Note 5 Operating costs

		THREE MONTHS				SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	NOTE	2018		2017		2018		2017
Labour costs
Wages, salaries and related taxes and benefits		(1,090	)	(1,072	)	(2,148	)	(2,075	)
Post-employment benefit plans service cost (net of capitalized amounts)	10	(63	)	(64	)	(136	)	(114	)
Other labour costs(1)		(262	)	(264	)	(510	)	(517	)
Less:
Capitalized labour		288		268		543		513
Total labour costs		(1,127	)	(1,132	)	(2,251	)	(2,193	)
Cost of revenues(2)		(1,720	)	(1,678	)	(3,430	)	(3,305	)
Other operating costs(3)		(509	)	(496	)	(1,011	)	(978	)
Total operating costs		(3,356	)	(3,306	)	(6,692	)	(6,476	)

(1)	Other labour costs include contractor and outsourcing costs.
(2)	Cost of revenues includes costs of wireless devices and other equipment sold, network and content costs, and payments to other carriers.
(3)	Other operating costs include marketing, advertising and sales commission costs, bad debt expense, taxes other than income taxes, IT costs, professional service fees and rent.

Note 6 Severance, acquisition and other costs

	THREE MONTHS				SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2018		2017		2018		2017
Severance	(15	)	(16	)	(24	)	(47	)
Acquisition and other	(9	)	(20	)	—		(73	)
Total severance, acquisition and other costs	(24	)	(36	)	(24	)	(120	)

SEVERANCE COSTS

Severance costs consist of charges related to workforce reduction initiatives.

ACQUISITION AND OTHER COSTS

Acquisition and other costs consist of transaction costs, such as legal and financial advisory fees, related to completed or potential acquisitions, employee severance costs related to the purchase of a business, the costs to integrate acquired companies into our operations and litigation costs, when they are significant. Acquisition costs also include a loss on transfer of spectrum licences relating to the MTS acquisition in 2017.

Note 7 Other (expense) income

		THREE MONTHS				SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	NOTE	2018		2017		2018		2017
Net mark-to-market (losses) gains on derivatives used to economically hedge equity settled share-based compensation plans(1)		(30	)	1		(107	)	25
Equity (losses) income from investments in associates and joint ventures
Losses on investments(2)		(20	)	—		(20	)	(2	)
Operations		(20	)	12		(3	)	31
Early debt redemption costs	9	(18	)	(4	)	(18	)	(4	)
Impairment of assets		—		—		(4	)	—
Losses on retirements and disposals of property, plant and equipment and intangible assets		(2	)	(9	)	(1	)	(26	)
Losses on investments		—		—		—		(12	)
Other(1)		2		(1	)	4		4
Total other (expense) income		(88	)	(1	)	(149	)	16

(1)	We have reclassified amounts from the previous period to make them consistent with the presentation for the current period.
(2)	The $20 million loss in 2018 represents BCE’s share of an obligation to repurchase at fair value the minority interest in one of BCE’s joint ventures. The obligation is marked to market each reporting period and the gain or loss on investment is recorded as equity gains or losses from investments in associates and joint ventures.

50     BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT
	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.

	THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2018	2017	2018	2017
Net earnings attributable to common shareholders – basic	704	765	1,365	1,407
Dividends declared per common share (in dollars)	0.7550	0.7175	1.5100	1.4350
Weighted average number of common shares outstanding (in millions)
Weighted average number of common shares outstanding – basic	898.0	900.1	899.1	888.0
Assumed exercise of stock options(1)	0.3	0.9	0.3	0.8
Weighted average number of common shares outstanding – diluted (in millions)	898.3	901.0	899.4	888.8

(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 12,050,731 for both the second quarter of 2018 and for the first half of 2018, compared to 31,722 for the second quarter of 2017 and 5,803,983 for the first half of 2017.

Note 9 Debt

2018

On May 4, 2018, Bell Canada redeemed, prior to maturity, its 3.50% Series M-28 medium term notes (MTN) debentures, having an outstanding principal amount of $400 million which were due on September 10, 2018.

On April 16, 2018, Bell Canada redeemed, prior to maturity, its 4.59% Series 9 notes, having an outstanding principal amount of $200 million which were due on October 1, 2018. In addition, on the same date, Bell Canada redeemed, prior to maturity, its 5.52% Series M-33 debentures, having an outstanding principal amount of $300 million, which were due on February 26, 2019.

In Q2 2018, we incurred early debt redemption charges of $18 million which were recorded in Other (expense) income in the income statement.

In Q2 2018, Bell Canada reclassified its $1 billion 3.35% Series M-25 debentures, which mature on June 18, 2019, from long-term debt to debt due within one year.

On March 29, 2018, Bell Canada issued 4.464% Series US-1 notes under its 2016 trust indenture, with a principal amount of US $750 million (CAD $967 million), which mature on April 1, 2048. The Series US-1 Notes have been hedged for foreign currency fluctuations through a cross currency interest rate swap. See Note 11, Financial assets and liabilities, for additional details.

On March 12, 2018, Bell Canada issued 3.35% Series M-47 MTN debentures under its 1997 trust indenture, with a principal amount of $500 million, which mature on March 12, 2025.

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).

COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS SERVICE COST

	THREE MONTHS				SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2018		2017		2018		2017
DB pension	(53	)	(53	)	(106	)	(101	)
DC pension	(24	)	(24	)	(57	)	(55	)
OPEBs	(1	)	(1	)	(2	)	(3	)
Plan amendment gain on OPEBs	—		—		—		16
Less:
Capitalized benefit plans cost	15		14		29		29
Total post-employment benefit plans service cost included in operating costs	(63	)	(64	)	(136	)	(114	)
Other costs recognized in severance, acquisition and other costs	—		(4	)	(4	)	(4	)
Total post-employment benefit plans service cost	(63	)	(68	)	(140	)	(118	)

	BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT    51
Notes to consolidated financial statements

COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS FINANCING COST

	THREE MONTHS				SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2018		2017		2018		2017
DB pension	(5	)	(5	)	(11	)	(9	)
OPEBs	(12	)	(13	)	(23	)	(27	)
Total interest on post-employment benefit obligations	(17	)	(18	)	(34	)	(36	)

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.

			JUNE 30, 2018		DECEMBER 31, 2017
			CARRYING	FAIR	CARRYING	FAIR
	CLASSIFICATION	FAIR VALUE METHODOLOGY	VALUE	VALUE	VALUE	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	79	78	111	110
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	119	121	124	128
Debt securities, finance leases and other debt	Debt due within one year and long-term debt	Quoted market price of debt or present value of future cash flows discounted using observable market interest rates	19,868	21,490	19,321	21,298

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

	CLASSIFICATION	CARRYING VALUE OF ASSET (LIABILITY)		FAIR VALUE
				QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)	OBSERVABLE MARKET DATA (LEVEL 2)(1)		NON-OBSERVABLE MARKET INPUTS (LEVEL 3)(2)
June 30, 2018
Publicly-traded and privately-held investments	Other non-current assets	104		1	—		103
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities	(5	)	—	(5	)	—
Maple Leaf Sports & Entertainment Ltd. (MLSE) financial liability(3)	Trade payables and other liabilities	(135	)	—	—		(135	)
Other	Other non-current assets and liabilities	70		—	116		(46	)
December 31, 2017
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	(48	)	—	(48	)	—
MLSE financial liability(3)	Trade payables and other liabilities	(135	)	—	—		(135	)
Other	Other non-current assets and liabilities	60		—	106		(46	)

(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 MLSE at a price not less than an agreed minimum price should the Master Trust exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recorded in Other (expense) income in the income statements.

52     BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT
	Notes to consolidated financial statements

CURRENCY EXPOSURES

We use forward contracts, options and cross currency interest rate swaps to manage foreign currency risk related to anticipated purchases and sales and certain foreign currency denominated debt.

A 10% depreciation (appreciation) in the value of the Canadian dollar relative to the U.S. dollar would result in a gain (loss) of $2 million ($3 million) recognized in net earnings at June 30, 2018 and a gain (loss) of $139 million ($134 million) recognized in Other comprehensive income (loss) at June 30, 2018, with all other variables held constant.

In Q1 2018, we entered into a cross currency interest rate swap with a notional amount of $750 million in U.S. dollars ($967 million in Canadian dollars) to hedge the U.S. currency exposure of our Series US-1 notes maturing in 2048. See Note 9, Debt, for additional details.

The following table provides further details on our outstanding foreign currency forward contracts and options as at June 30, 2018.

TYPE OF HEDGE	BUY CURRENCY	AMOUNT TO RECEIVE	SELL CURRENCY	AMOUNT TO PAY	MATURITY	HEDGED ITEM
Cash flow	USD	2,499	CAD	3,244	2018	Commercial paper
Cash flow	USD	450	CAD	584	2018	Anticipated transactions
Cash flow	CAD	46	USD	36	2018-2019	Anticipated transactions
Cash flow	USD	775	CAD	968	2019	Anticipated transactions
Cash flow	USD	76	CAD	96	2020-2021	Anticipated transactions
Economic	USD	19	CAD	24	2018	Anticipated transactions
Economic – call options	USD	33	CAD	41	2018	Anticipated transactions
Economic – put options	USD	99	CAD	119	2018	Anticipated transactions

INTEREST RATE EXPOSURES

A 1% increase (decrease) in interest rates would result in a decrease (increase) of $31 million in net earnings at June 30, 2018.

EQUITY PRICE EXPOSURES

We use equity forward contracts on BCE’s common shares to economically hedge the cash flow exposure related to the settlement of equity settled share-based compensation plans and the equity price risk related to a cash-settled share-based payment plan. The fair value of our equity forward contracts at June 30, 2018 was a liability of $85 million.

A 5% increase (decrease) in the market price of BCE’s common shares at June 30, 2018 would result in a gain (loss) of $33 million recognized in net earnings, with all other variables held constant.

Note 12 Share capital

NORMAL COURSE ISSUER BID PROGRAM (NCIB)

In Q1 2018, BCE repurchased and canceled 3,085,697 common shares for a total cost of $175 million. Of the total cost, $69 million represents stated capital and $3 million represents the reduction of the contributed surplus attributable to these common shares. The remaining $103 million was charged to the deficit.

CONVERSION OF FIRST PREFERRED SHARES

On March 1, 2018, 397,181 of BCE’s 5,069,935 fixed-rate Cumulative Redeemable First Preferred Shares, Series AC (Series AC Preferred Shares) were converted, on a one-for-one basis, into floating rate Cumulative Redeemable First Preferred Shares, Series AD (Series AD Preferred Shares). In addition, on March 1, 2018, 5,356,937 of BCE’s 14,930,065 Series AD Preferred Shares were converted, on a one-for-one basis, into Series AC Preferred Shares.

The annual fixed dividend rate on BCE’s Series AC Preferred Shares was reset for the next five years, effective March 1, 2018, at 4.38% from 3.55%. The Series AD Preferred Shares continue to pay a monthly floating cash dividend.

	BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT    53
Notes to consolidated financial statements

Note 13 Share-based payments

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

	THREE MONTHS				SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2018		2017		2018		2017
Employee savings plan (ESP)	(7	)	(7	)	(14	)	(14	)
Restricted share units (RSUs) and performance share units (PSUs)	(11	)	(10	)	(30	)	(27	)
Other(1)	(2	)	(2	)	(6	)	(5	)
Total share-based payments	(20	)	(19	)	(50	)	(46	)

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

The following tables summarize the change in outstanding ESP shares, RSUs/PSUs, DSUs and stock options for the period ended June 30, 2018.

ESP

	NUMBER OF
	ESP SHARES
Unvested contributions, January 1, 2018	1,039,030
Contributions(1)	331,987
Dividends credited	26,960
Vested	(255,867	)
Forfeited	(71,395	)
Unvested contributions, June 30, 2018	1,070,715

(1) The weighted average fair value of the shares contributed during the six months ended June 30, 2018 was $56.

RSUs/PSUs

	NUMBER OF
	RSUs/PSUs
Outstanding, January 1, 2018	2,740,392
Granted(1)	958,411
Dividends credited	71,863
Settled	(1,010,626	)
Forfeited	(20,287	)
Outstanding, June 30, 2018	2,739,753

(1) The weighted average fair value of the RSUs/PSUs granted during the six months ended June 30, 2018 was $57.

DSUs

	NUMBER OF DSUs
Outstanding, January 1, 2018	4,309,528
Issued(1)	69,659
Settlement of RSUs/PSUs	112,675
Dividends credited	116,172
Settled	(181,645	)
Outstanding, June 30, 2018	4,426,389

(1) The weighted average fair value of the DSUs issued during the six months ended June 30, 2018 was $55.

STOCK OPTIONS

	NUMBER OF OPTIONS		WEIGHTED AVERAGE EXERCISE PRICE ($)
Outstanding, January 1, 2018	10,490,249		55
Granted	3,651,802		57
Exercised(1)	(59,756	)	39
Forfeited	(4,641	)	59
Outstanding, June 30, 2018	14,077,654		56
Exercisable, June 30, 2018	4,606,773		52

(1) The weighted average share price for options exercised during the six months ended June 30, 2018 was $56.

54     BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT
	Notes to consolidated financial statements

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.

	2018
Weighted average fair value per option granted	$2.13
Weighted average share price	$57
Weighted average exercise price	$57
Dividend yield	5	%
Expected volatility	12	%
Risk-free interest rate	2	%
Expected life (years)	4

Expected volatilities are based on the historical volatility of BCE’s share price. The risk-free rate used is equal to the yield available on Government of Canada bonds at the date of grant with a term equal to the expected life of the options.

Note 14 Adoption of IFRS 15

As a result of adopting IFRS 15, we have changed the comparative figures for the three and six months ended June 30, 2017 and the year ended December 31, 2017. The impacts of adopting IFRS 15 on our previously reported results for the three and six months ended June 30, 2017 are provided below. The impacts of adopting IFRS 15 on our statement of financial position as at January 1, 2017 and December 31, 2017, our consolidated income statement and consolidated statement of cash flows for the year ended December 31, 2017, along with updated 2017 annual disclosures are included in Note 3, Adoption of IFRS 15, of our unaudited consolidated financial statements for the period ended March 31, 2018.

CONSOLIDATED INCOME STATEMENTS

The table below shows the impacts of adopting IFRS 15 on our previously reported consolidated income statements for the three and six months ended June 30, 2017.

	THREE MONTHS ENDED JUNE 30, 2017						SIX MONTHS ENDED JUNE 30, 2017
(IN MILLIONS OF CANADIAN DOLLARS, EXCEPT SHARE AMOUNTS)	2017 AS PREVIOUSLY REPORTED		IFRS 15 IMPACTS		2017 UPON ADOPTION OF IFRS 15		2017 AS PREVIOUSLY REPORTED		IFRS 15 IMPACTS		2017 UPON ADOPTION OF IFRS 15
Operating revenues	5,699		(11	)	5,688		11,083		(59	)	11,024
Operating costs	(3,318	)	12		(3,306	)	(6,488	)	12		(6,476	)
Severance, acquisition and other costs	(36	)	—		(36	)	(120	)	—		(120	)
Depreciation	(769	)	2		(767	)	(1,491	)	—		(1,491	)
Amortization	(211	)	1		(210	)	(396	)	1		(395	)
Finance costs
Interest expense	(238	)	—		(238	)	(472	)	—		(472	)
Interest on post-employment benefit obligations	(18	)	—		(18	)	(36	)	—		(36	)
Other (expense) income	(1	)	—		(1	)	16		—		16
Income taxes	(297	)	(1	)	(298	)	(560	)	12		(548	)
Net earnings	811		3		814		1,536		(34	)	1,502
Net earnings attributable to:
Common shareholders	762		3		765		1,441		(34	)	1,407
Preferred shareholders	32		—		32		63		—		63
Non-controlling interest	17		—		17		32		—		32
Net earnings	811		3		814		1,536		(34	)	1,502
Net earnings per common share – basic and diluted	0.84		0.01		0.85		1.62		(0.04	)	1.58
Average number of common shares outstanding – basic (millions)	900.1		—		900.1		888.0		—		888.0

	BCE Inc.   2018 SECOND QUARTER SHAREHOLDER REPORT    55
Notes to consolidated financial statements

DEFICIT

The table below provides a reconciliation of our deficit at June 30, 2017 from amounts previously reported in 2017 to the amounts reported under IFRS 15. All amounts are after tax.

	AT JUNE 30, 2017
Total deficit as previously reported	(6,466	)
Timing of revenue recognition	777
Cost to obtain a contract	251
Total deficit upon adoption of IFRS 15	(5,438	)

CONSOLIDATED STATEMENT OF CASH FLOWS

The table below shows the impacts of adopting IFRS 15 on select line items of our previously reported 2017 statement of cash flows for the three and six months ended June 30, 2017.

	THREE MONTHS ENDED JUNE 30, 2017				SIX MONTHS ENDED JUNE 30, 2017
	2017 AS PREVIOUSLY REPORTED	IFRS 15 IMPACTS		2017 UPON ADOPTION OF IFRS 15	2017 AS PREVIOUSLY REPORTED	IFRS 15 IMPACTS		2017 UPON ADOPTION OF IFRS 15
Cash flows from operating activities
Net earnings	811	3		814	1,536	(34	)	1,502
Depreciation and amortization	980	(3	)	977	1,887	(1	)	1,886
Income taxes	297	1		298	560	(12	)	548
Net change in operating assets and liabilities	242	(1	)	241	8	47		55
Cash flows from operating activities	2,154	—		2,154	3,467	—		3,467

56     BCE Inc.   2018 SECOND 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.   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: AST TRUST COMPANY (CANADA) 1 Toronto Street, Suite 1200
Toronto, Ontario M5C 2V6 tel: 416 682-3861 or 1 800 561-0934
fax: 514 985-8843 or 1 888 249-6189
e-mail: bce@astfinancial.com  

Pour obtenir un exemplaire de la version française de ce document, contactez les Relations avec les investisseurs.

EX-99.2

Exhibit 99.2

BCE ^{(1) (2) (3)}
Consolidated Operational Data

(In millions of Canadian dollars, except share amounts) (unaudited)		Q2 2018			Q2 2017			$ change		% change			YTD 2018			YTD 2017			$ change		% change
Operating revenues
Service		5,129			5,078			51		1.0	%		10,093			9,889			204		2.1	%
Product		657			610			47		7.7	%		1,283			1,135			148		13.0	%
Total operating revenues		5,786			5,688			98		1.7	%		11,376			11,024			352		3.2	%
Operating costs		(3,293	)		(3,242	)		(51	)	(1.6	%)		(6,556	)		(6,362	)		(194	)	(3.0	%)
Post-employment benefit plans service cost		(63	)		(64	)		1		1.6	%		(136	)		(114	)		(22	)	(19.3	%)
Adjusted EBITDA (4)		2,430			2,382			48		2.0	%		4,684			4,548			136		3.0	%
Adjusted EBITDA margin (4)		42.0	%		41.9	%				0.1	pts		41.2	%		41.3	%				(0.1	) pts
Severance, acquisition and other costs		(24	)		(36	)		12		33.3	%		(24	)		(120	)		96		80.0	%
Depreciation		(787	)		(767	)		(20	)	(2.6	%)		(1,567	)		(1,491	)		(76	)	(5.1	%)
Amortization		(221	)		(210	)		(11	)	(5.2	%)		(433	)		(395	)		(38	)	(9.6	%)
Finance costs
Interest expense		(246	)		(238	)		(8	)	(3.4	%)		(486	)		(472	)		(14	)	(3.0	%)
Interest on post-employment benefit obligations		(17	)		(18	)		1		5.6	%		(34	)		(36	)		2		5.6	%
Other (expense) income		(88	)		(1	)		(87	)	n.m.			(149	)		16			(165	)	n.m.
Income taxes		(292	)		(298	)		6		2.0	%		(527	)		(548	)		21		3.8	%
Net earnings		755			814			(59	)	(7.2	%)		1,464			1,502			(38	)	(2.5	%)
Net earnings attributable to:
Common shareholders		704			765			(61	)	(8.0	%)		1,365			1,407			(42	)	(3.0	%)
Preferred shareholders		35			32			3		9.4	%		71			63			8		12.7	%
Non-controlling interest		16			17			(1	)	(5.9	%)		28			32			(4	)	(12.5	%)
Net earnings		755			814			(59	)	(7.2	%)		1,464			1,502			(38	)	(2.5	%)
Net earnings per common share - basic	$	0.79		$	0.85			(0.06	)	(7.1	%)	$	1.52		$	1.58			(0.06	)	(3.8	%)
Net earnings per common share - diluted	$	0.79		$	0.85			(0.06	)	(7.1	%)	$	1.52		$	1.58			(0.06	)	(3.8	%)
Dividends per common share	$	0.7550		$	0.7175		$	0.0375		5.2	%	$	1.5100		$	1.4350		$	0.0750		5.2	%
Average number of common shares outstanding - basic (millions)		898.0			900.1								899.1			888.0
Average number of common shares outstanding - diluted (millions)		898.3			901.0								899.4			888.8
Number of common shares outstanding (millions)		898.0			900.4								898.0			900.4
Adjusted net earnings and EPS
Net earnings attributable to common shareholders		704			765			(61	)	(8.0	%)		1,365			1,407			(42	)	(3.0	%)
Severance, acquisition and other costs		18			27			(9	)	(33.3	%)		17			92			(75	)	(81.5	%)
Net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans		22			-			22		n.m.			78			(18	)		96		n.m.
Net losses on investments		20			-			20		n.m.			20			14			6		42.9	%
Early debt redemption costs		13			3			10		n.m.			13			3			10		n.m.
Impairment charges		-			-			-		-			3			-			3		n.m.
Adjusted net earnings (4)		777			795			(18	)	(2.3	%)		1,496			1,498			(2	)	(0.1	%)
Impact on net earnings per share	$	0.07		$	0.04		$	0.03		75.0	%	$	0.14		$	0.11		$	0.03		27.3	%
Adjusted EPS (4)	$	0.86		$	0.89		$	(0.03	)	(3.4	%)	$	1.66		$	1.69		$	(0.03	)	(1.8	%)

n.m. : not meaningful

BCE Supplementary Financial Information - Second Quarter 2018 Page 2

BCE
Consolidated Operational Data - Historical Trend

(In millions of Canadian dollars, except share amounts) (unaudited)		YTD 2018			Q2 18			Q1 18			TOTAL 2017			Q4 17			Q3 17			Q2 17			Q1 17
Operating revenues
Service		10,093			5,129			4,964			20,095			5,152			5,054			5,078			4,811
Product		1,283			657			626			2,662			884			643			610			525
Total operating revenues		11,376			5,786			5,590			22,757			6,036			5,697			5,688			5,336
Operating costs		(6,556	)		(3,293	)		(3,263	)		(13,233	)		(3,643	)		(3,228	)		(3,242	)		(3,120	)
Post-employment benefit plans service cost		(136	)		(63	)		(73	)		(242	)		(64	)		(64	)		(64	)		(50	)
Adjusted EBITDA		4,684			2,430			2,254			9,282			2,329			2,405			2,382			2,166
Adjusted EBITDA margin		41.2	%		42.0	%		40.3	%		40.8	%		38.6	%		42.2	%		41.9	%		40.6	%
Severance, acquisition and other costs		(24	)		(24	)		-			(190	)		(47	)		(23	)		(36	)		(84	)
Depreciation		(1,567	)		(787	)		(780	)		(3,034	)		(783	)		(760	)		(767	)		(724	)
Amortization		(433	)		(221	)		(212	)		(810	)		(208	)		(207	)		(210	)		(185	)
Finance costs
Interest expense		(486	)		(246	)		(240	)		(955	)		(241	)		(242	)		(238	)		(234	)
Interest on post-employment benefit obligations		(34	)		(17	)		(17	)		(72	)		(18	)		(18	)		(18	)		(18	)
Other (expense) income		(149	)		(88	)		(61	)		(102	)		(62	)		(56	)		(1	)		17
Income taxes		(527	)		(292	)		(235	)		(1,069	)		(272	)		(249	)		(298	)		(250	)
Net earnings		1,464			755			709			3,050			698			850			814			688
Net earnings attributable to:
Common shareholders		1,365			704			661			2,866			656			803			765			642
Preferred shareholders		71			35			36			128			34			31			32			31
Non-controlling interest		28			16			12			56			8			16			17			15
Net earnings		1,464			755			709			3,050			698			850			814			688
Net earnings per common share - basic	$	1.52		$	0.79		$	0.73		$	3.20		$	0.72		$	0.90		$	0.85		$	0.73
Net earnings per common share - diluted	$	1.52		$	0.79		$	0.73		$	3.20		$	0.72		$	0.90		$	0.85		$	0.73
Dividends per common share	$	1.5100		$	0.7550		$	0.7550		$	2.8700		$	0.7175		$	0.7175		$	0.7175		$	0.7175
Average number of common shares outstanding - basic (millions)		899.1			898.0			900.2			894.3			900.6			900.4			900.1			875.7
Average number of common shares outstanding - diluted (millions)		899.4			898.3			900.6			894.9			901.4			901.1			901.0			876.6
Number of common shares outstanding (millions)		898.0			898.0			898.0			901.0			901.0			900.4			900.4			899.5
Adjusted net earnings and EPS
Net earnings attributable to common shareholders		1,365			704			661			2,866			656			803			765			642
Severance, acquisition and other costs		17			18			(1	)		143			34			17			27			65
Net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans		78			22			56			(55	)		(29	)		(8	)		-			(18	)
Net losses on investments		20			20			-			29			15			-			-			14
Early debt redemption costs		13			13			-			15			-			12			3			-
Impairment charges		3			-			3			60			60			-			-			-
Adjusted net earnings		1,496			777			719			3,058			736			824			795			703
Impact on net earnings per share	$	0.14		$	0.07		$	0.07		$	0.22		$	0.10		$	0.01		$	0.04		$	0.07
Adjusted EPS	$	1.66		$	0.86		$	0.80		$	3.42		$	0.82		$	0.91		$	0.89		$	0.80

BCE Supplementary Financial Information - Second Quarter 2018 Page 3

BCE
Segmented Data

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q2 2018		Q2 2017		$ change		% change		YTD 2018		YTD 2017		$ change		% change
Operating revenues
Bell Wireless	2,046		1,949		97		5.0	%	3,992		3,716		276		7.4	%
Bell Wireline	3,135		3,117		18		0.6	%	6,219		6,094		125		2.1	%
Bell Media	791		796		(5	)	(0.6	%)	1,540		1,547		(7	)	(0.5	%)
Inter-segment eliminations	(186	)	(174	)	(12	)	(6.9	%)	(375	)	(333	)	(42	)	(12.6	%)
Total	5,786		5,688		98		1.7	%	11,376		11,024		352		3.2	%
Operating costs
Bell Wireless	(1,142	)	(1,098	)	(44	)	(4.0	%)	(2,266	)	(2,096	)	(170	)	(8.1	%)
Bell Wireline	(1,814	)	(1,810	)	(4	)	(0.2	%)	(3,596	)	(3,524	)	(72	)	(2.0	%)
Bell Media	(586	)	(572	)	(14	)	(2.4	%)	(1,205	)	(1,189	)	(16	)	(1.3	%)
Inter-segment eliminations	186		174		12		6.9	%	375		333		42		12.6	%
Total	(3,356	)	(3,306	)	(50	)	(1.5	%)	(6,692	)	(6,476	)	(216	)	(3.3	%)
Adjusted EBITDA
Bell Wireless	904		851		53		6.2	%	1,726		1,620		106		6.5	%
Margin	44.2	%	43.7	%			0.5	pts	43.2	%	43.6	%			(0.4	) pts
Bell Wireline	1,321		1,307		14		1.1	%	2,623		2,570		53		2.1	%
Margin	42.1	%	41.9	%			0.2	pts	42.2	%	42.2	%			-
Bell Media	205		224		(19	)	(8.5	%)	335		358		(23	)	(6.4	%)
Margin	25.9	%	28.1	%			(2.2	) pts	21.8	%	23.1	%			(1.3	) pts
Total	2,430		2,382		48		2.0	%	4,684		4,548		136		3.0	%
Margin	42.0	%	41.9	%			0.1	pts	41.2	%	41.3	%			(0.1	) pts
Capital expenditures
Bell Wireless	179		191		12		6.3	%	343		327		(16	)	(4.9	%)
Capital intensity (5)	8.7	%	9.8	%			1.1	pts	8.6	%	8.8	%			0.2	pts
Bell Wireline	845		818		(27	)	(3.3	%)	1,592		1,509		(83	)	(5.5	%)
Capital intensity	27.0	%	26.2	%			(0.8	) pts	25.6	%	24.8	%			(0.8	) pts
Bell Media	32		33		1		3.0	%	52		58		6		10.3	%
Capital intensity	4.0	%	4.1	%			0.1	pts	3.4	%	3.7	%			0.3	pts
Total	1,056		1,042		(14	)	(1.3	%)	1,987		1,894		(93	)	(4.9	%)
Capital intensity	18.3	%	18.3	%			-		17.5	%	17.2	%			(0.3	) pts

BCE Supplementary Financial Information - Second Quarter 2018 Page 4

BCE
Segmented Data - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2018		Q2 18		Q1 18		TOTAL 2017		Q4 17		Q3 17		Q2 17		Q1 17
Operating revenues
Bell Wireless	3,992		2,046		1,946		7,926		2,149		2,061		1,949		1,767
Bell Wireline	6,219		3,135		3,084		12,400		3,218		3,088		3,117		2,977
Bell Media	1,540		791		749		3,104		834		723		796		751
Inter-segment eliminations	(375	)	(186	)	(189	)	(673	)	(165	)	(175	)	(174	)	(159	)
Total	11,376		5,786		5,590		22,757		6,036		5,697		5,688		5,336
Operating costs
Bell Wireless	(2,266	)	(1,142	)	(1,124	)	(4,550	)	(1,303	)	(1,151	)	(1,098	)	(998	)
Bell Wireline	(3,596	)	(1,814	)	(1,782	)	(7,210	)	(1,906	)	(1,780	)	(1,810	)	(1,714	)
Bell Media	(1,205	)	(586	)	(619	)	(2,388	)	(663	)	(536	)	(572	)	(617	)
Inter-segment eliminations	375		186		189		673		165		175		174		159
Total	(6,692	)	(3,356	)	(3,336	)	(13,475	)	(3,707	)	(3,292	)	(3,306	)	(3,170	)
Adjusted EBITDA
Bell Wireless	1,726		904		822		3,376		846		910		851		769
Margin	43.2	%	44.2	%	42.2	%	42.6	%	39.4	%	44.2	%	43.7	%	43.5	%
Bell Wireline	2,623		1,321		1,302		5,190		1,312		1,308		1,307		1,263
Margin	42.2	%	42.1	%	42.2	%	41.9	%	40.8	%	42.4	%	41.9	%	42.4	%
Bell Media	335		205		130		716		171		187		224		134
Margin	21.8	%	25.9	%	17.4	%	23.1	%	20.5	%	25.9	%	28.1	%	17.8	%
Total	4,684		2,430		2,254		9,282		2,329		2,405		2,382		2,166
Margin	41.2	%	42.0	%	40.3	%	40.8	%	38.6	%	42.2	%	41.9	%	40.6	%
Capital expenditures
Bell Wireless	343		179		164		731		218		186		191		136
Capital intensity	8.6	%	8.7	%	8.4	%	9.2	%	10.1	%	9.0	%	9.8	%	7.7	%
Bell Wireline	1,592		845		747		3,174		845		820		818		691
Capital intensity	25.6	%	27.0	%	24.2	%	25.6	%	26.3	%	26.6	%	26.2	%	23.2	%
Bell Media	52		32		20		129		37		34		33		25
Capital intensity	3.4	%	4.0	%	2.7	%	4.2	%	4.4	%	4.7	%	4.1	%	3.3	%
Total	1,987		1,056		931		4,034		1,100		1,040		1,042		852
Capital intensity	17.5	%	18.3	%	16.7	%	17.7	%	18.2	%	18.3	%	18.3	%	16.0	%

BCE Supplementary Financial Information - Second Quarter 2018 Page 5

BCE
Segmented Data - IFRS 15 Adoption Impacts ⁽²⁾

	TOTAL 2017			Q4 17			Q3 17			Q2 17			Q1 17
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	As previously reported	IFRS 15 impacts	Upon adoption of IFRS 15	As previously reported	IFRS 15 impacts	Upon adoption of IFRS 15	As previously reported	IFRS 15 impacts	Upon adoption of IFRS 15	As previously reported	IFRS 15 impacts	Upon adoption of IFRS 15	As previously reported	IFRS 15 impacts	Upon adoption of IFRS 15
Operating revenues
Bell Wireless
Service	7,350	(1,260)	6,090	1,894	(338)	1,556	1,913	(323)	1,590	1,828	(309)	1,519	1,715	(290)	1,425
Product	533	1,303	1,836	176	417	593	127	344	471	131	299	430	99	243	342
Total Bell Wireless	7,883	43	7,926	2,070	79	2,149	2,040	21	2,061	1,959	(10)	1,949	1,814	(47)	1,767
Bell Wireline	12,415	(15)	12,400	3,222	(4)	3,218	3,092	(4)	3,088	3,121	(4)	3,117	2,980	(3)	2,977
Bell Media	3,104	-	3,104	834	-	834	723	-	723	796	-	796	751	-	751
Inter-segment eliminations	(683)	10	(673)	(168)	3	(165)	(177)	2	(175)	(177)	3	(174)	(161)	2	(159)
Total	22,719	38	22,757	5,958	78	6,036	5,678	19	5,697	5,699	(11)	5,688	5,384	(48)	5,336
Operating costs
Bell Wireless	(4,607)	57	(4,550)	(1,334)	31	(1,303)	(1,169)	18	(1,151)	(1,108)	10	(1,098)	(996)	(2)	(998)
Bell Wireline	(7,229)	19	(7,210)	(1,912)	6	(1,906)	(1,784)	4	(1,780)	(1,815)	5	(1,810)	(1,718)	4	(1,714)
Bell Media	(2,388)	-	(2,388)	(663)	-	(663)	(536)	-	(536)	(572)	-	(572)	(617)	-	(617)
Inter-segment eliminations	683	(10)	673	168	(3)	165	177	(2)	175	177	(3)	174	161	(2)	159
Total	(13,541)	66	(13,475)	(3,741)	34	(3,707)	(3,312)	20	(3,292)	(3,318)	12	(3,306)	(3,170)	-	(3,170)
Adjusted EBITDA
Bell Wireless	3,276	100	3,376	736	110	846	871	39	910	851	-	851	818	(49)	769
Margin	41.6%	1.0 pts	42.6%	35.6%	3.8 pts	39.4%	42.7%	1.5 pts	44.2%	43.4%	0.3 pts	43.7%	45.1%	(1.6) pts	43.5%
Bell Wireline	5,186	4	5,190	1,310	2	1,312	1,308	-	1,308	1,306	1	1,307	1,262	1	1,263
Margin	41.8%	0.1 pts	41.9%	40.7%	0.1 pts	40.8%	42.3%	0.1 pts	42.4%	41.8%	0.1 pts	41.9%	42.3%	0.1 pts	42.4%
Bell Media	716	-	716	171	-	171	187	-	187	224	-	224	134	-	134
Margin	23.1%	-	23.1%	20.5%	-	20.5%	25.9%	-	25.9%	28.1%	-	28.1%	17.8%	-	17.8%
Total	9,178	104	9,282	2,217	112	2,329	2,366	39	2,405	2,381	1	2,382	2,214	(48)	2,166
Margin	40.4%	0.4 pts	40.8%	37.2%	1.4 pts	38.6%	41.7%	0.5 pts	42.2%	41.8%	0.1 pts	41.9%	41.1%	(0.5) pts	40.6%

BCE Supplementary Financial Information - Second Quarter 2018 Page 6

Bell Wireless ^{(1) (2) (3)}

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q2 2018		Q2 2017		% change		YTD 2018		YTD 2017		% change
Bell Wireless
Operating revenues
External service revenues	1,562		1,508		3.6	%	3,062		2,923		4.8	%
Inter-segment service revenues	12		11		9.1	%	24		21		14.3	%
Total operating service revenues	1,574		1,519		3.6	%	3,086		2,944		4.8	%
External product revenues	470		430		9.3	%	904		771		17.3	%
Inter-segment product revenues	2		-		n.m.		2		1		100.0	%
Total operating product revenues	472		430		9.8	%	906		772		17.4	%
Total external revenues	2,032		1,938		4.9	%	3,966		3,694		7.4	%
Total operating revenues	2,046		1,949		5.0	%	3,992		3,716		7.4	%
Operating costs	(1,142	)	(1,098	)	(4.0	%)	(2,266	)	(2,096	)	(8.1	%)
Adjusted EBITDA	904		851		6.2	%	1,726		1,620		6.5	%
Adjusted EBITDA margin (Total operating revenues)	44.2	%	43.7	%	0.5	pts	43.2	%	43.6	%	(0.4	) pts
Capital expenditures	179		191		6.3	%	343		327		(4.9	%)
Capital intensity	8.7	%	9.8	%	1.1	pts	8.6	%	8.8	%	0.2	pts
Wireless gross activations	468,152		403,418		16.0	%	872,942		751,870		16.1	%
Postpaid	394,136		339,392		16.1	%	741,455		636,008		16.6	%
Wireless net activations	114,486		66,916		71.1	%	158,863		67,588		135.0	%
Postpaid	122,092		88,611		37.8	%	190,579		124,393		53.2	%
Wireless subscribers end of period (EOP)(A)(B)	9,309,534		8,901,291		4.6	%	9,309,534		8,901,291		4.6	%
Postpaid(A)(B)	8,593,113		8,126,264		5.7	%	8,593,113		8,126,264		5.7	%
Blended average revenue per user(5) (ARPU)($/month)	55.53		55.61		(0.1	%)	54.91		54.97		(0.1	%)
Blended average billing per user(5) (ABPU)($/month)	67.71		67.28		0.6	%	67.14		66.48		1.0	%
Churn (%) (5) (average per month)	1.28	%	1.27	%	(0.01	) pts	1.29	%	1.31	%	0.02	pts
Prepaid	3.34	%	3.19	%	(0.15	) pts	3.37	%	3.24	%	(0.13	) pts
Postpaid	1.10	%	1.08	%	(0.02	) pts	1.12	%	1.12	%	-

n.m. : not meaningful
(A)	At the beginning of Q1 2018, we adjusted our postpaid wireless subscriber base to remove 16,116 subscribers with a corresponding increase to our high-speed Internet subscribers to reflect the transfer of fixed wireless Internet subscribers.
(B)	In Q2 2017, Bell’s wireless subscriber base reflected the divestiture of 104,833 postpaid subscribers to TELUS Communications Inc. (Telus) related to BCE’s acquisition of MTS. Bell’s wireless subscriber base in Q2 2017 also reflected the removal of 7,268 subscribers (2,450 postpaid and 4,818 prepaid), due to the decommissioning of the code division multiple access (CDMA) network in western Canada.

BCE Supplementary Financial Information - Second Quarter 2018 Page 7

Bell Wireless - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2018		Q2 18		Q1 18		TOTAL 2017		Q4 17		Q3 17		Q2 17		Q1 17
Bell Wireless
Operating revenues
External service revenues	3,062		1,562		1,500		6,048		1,545		1,580		1,508		1,415
Inter-segment service revenues	24		12		12		42		11		10		11		10
Total operating service revenues	3,086		1,574		1,512		6,090		1,556		1,590		1,519		1,425
External product revenues	904		470		434		1,833		593		469		430		341
Inter-segment product revenues	2		2		-		3		-		2		-		1
Total operating product revenues	906		472		434		1,836		593		471		430		342
Total external revenues	3,966		2,032		1,934		7,881		2,138		2,049		1,938		1,756
Total operating revenues	3,992		2,046		1,946		7,926		2,149		2,061		1,949		1,767
Operating costs	(2,266	)	(1,142	)	(1,124	)	(4,550	)	(1,303	)	(1,151	)	(1,098	)	(998	)
Adjusted EBITDA	1,726		904		822		3,376		846		910		851		769
Adjusted EBITDA margin (Total operating revenues)	43.2	%	44.2	%	42.2	%	42.6	%	39.4	%	44.2	%	43.7	%	43.5	%
Capital expenditures	343		179		164		731		218		186		191		136
Capital intensity	8.6	%	8.7	%	8.4	%	9.2	%	10.1	%	9.0	%	9.8	%	7.7	%
Wireless gross activations	872,942		468,152		404,790		1,780,478		568,555		460,053		403,418		348,452
Postpaid	741,455		394,136		347,319		1,532,425		505,432		390,985		339,392		296,616
Wireless net activations	158,863		114,486		44,377		333,084		158,514		106,982		66,916		672
Postpaid	190,579		122,092		68,487		416,779		175,204		117,182		88,611		35,782
Wireless subscribers EOP(A)(B)	9,309,534		9,309,534		9,195,048		9,166,787		9,166,787		9,008,273		8,901,291		8,946,476
Postpaid(A)(B)	8,593,113		8,593,113		8,471,021		8,418,650		8,418,650		8,243,446		8,126,264		8,144,936
Blended ARPU(C) ($/month)	54.91		55.53		54.28		55.88		55.77		57.77		55.61		54.31
Blended ABPU(C) ($/month)	67.14		67.71		66.56		67.77		68.27		69.78		67.28		65.66
Churn (%)(average per month)	1.29	%	1.28	%	1.31	%	1.36	%	1.51	%	1.32	%	1.27	%	1.36	%
Prepaid	3.37	%	3.34	%	3.40	%	3.17	%	3.25	%	2.95	%	3.19	%	3.29	%
Postpaid	1.12	%	1.10	%	1.13	%	1.19	%	1.35	%	1.16	%	1.08	%	1.17	%

(A)	At the beginning of Q1 2018, we adjusted our postpaid wireless subscriber base to remove 16,116 subscribers with a corresponding increase to our high-speed Internet subscribers to reflect the transfer of fixed wireless Internet subscribers.
(B)	In Q2 2017, Bell’s wireless subscriber base reflected the divestiture of 104,833 postpaid subscribers to Telus related to BCE’s acquisition of MTS. Bell’s wireless subscriber base in Q2 2017 also reflected the removal of 7,268 subscribers (2,450 postpaid and 4,818 prepaid), due to the decommissioning of the CDMA network in western Canada.
(C)	Our Q1 2018 blended ARPU and blended ABPU were adjusted to exclude the unfavourable retroactive impact of the recent CRTC decision on wholesale wireless domestic roaming rates of $14 million.

BCE Supplementary Financial Information - Second Quarter 2018 Page 8

Bell Wireline ^{(1) (2) (3)}

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q2 2018		Q2 2017		% change		YTD 2018		YTD 2017		% change
Bell Wireline
Operating revenues
Data	1,869		1,812		3.1	%	3,689		3,531		4.5	%
Voice	957		1,020		(6.2	%)	1,907		2,001		(4.7	%)
Other services	64		55		16.4	%	127		99		28.3	%
Total external service revenues	2,890		2,887		0.1	%	5,723		5,631		1.6	%
Inter-segment service revenues	57		49		16.3	%	116		98		18.4	%
Total operating service revenues	2,947		2,936		0.4	%	5,839		5,729		1.9	%
Data	98		95		3.2	%	202		194		4.1	%
Equipment and other	89		85		4.7	%	177		170		4.1	%
Total external product revenues	187		180		3.9	%	379		364		4.1	%
Inter-segment product revenues	1		1		-		1		1		-
Total operating product revenues	188		181		3.9	%	380		365		4.1	%
Total external revenues	3,077		3,067		0.3	%	6,102		5,995		1.8	%
Total operating revenues	3,135		3,117		0.6	%	6,219		6,094		2.1	%
Operating costs	(1,814	)	(1,810	)	(0.2	%)	(3,596	)	(3,524	)	(2.0	%)
Adjusted EBITDA	1,321		1,307		1.1	%	2,623		2,570		2.1	%
Adjusted EBITDA margin	42.1	%	41.9	%	0.2	pts	42.2	%	42.2	%	-
Capital expenditures	845		818		(3.3	%)	1,592		1,509		(5.5	%)
Capital intensity	27.0	%	26.2	%	(0.8	) pts	25.6	%	24.8	%	(0.8	) pts
High-speed Internet
High-speed Internet net activations	10,816		1,407		668.7	%	30,463		16,396		85.8	%
High-speed Internet subscribers EOP(A)(B)	3,856,555		3,718,677		3.7	%	3,856,555		3,718,677		3.7	%
TV
Net subscriber activations (losses)	809		(13,337	)	106.1	%	(11,672	)	(29,000	)	59.8	%
Internet protocol television (IPTV)	20,653		16,427		25.7	%	34,226		38,829		(11.9	%)
Total subscribers EOP(B)	2,835,227		2,824,016		0.4	%	2,835,227		2,824,016		0.4	%
IPTV(B)	1,599,142		1,481,434		7.9	%	1,599,142		1,481,434		7.9	%
Network access services (NAS)
Residential NAS(B)	3,126,551		3,332,976		(6.2	%)	3,126,551		3,332,976		(6.2	%)
Residential NAS net losses	(70,665	)	(67,005	)	(5.5	%)	(128,198	)	(140,426	)	8.7	%

(A)	At the beginning of Q1 2018, we adjusted our high-speed Internet subscriber base to add 16,116 subscribers with a corresponding decrease to our postpaid wireless subscribers to reflect the transfer of fixed wireless Internet subscribers.
(B)	At the beginning of Q1 2018, our high-speed Internet subscriber base was increased by 19,835, our IPTV by 14,599 and our residential NAS by 23,441, mainly as a result of a small acquisition made in Q1 2018.

BCE Supplementary Financial Information - Second Quarter 2018 Page 9

Bell Wireline - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2018		Q2 18		Q1 18		TOTAL 2017		Q4 17		Q3 17		Q2 17		Q1 17
Bell Wireline
Operating revenues
Data	3,689		1,869		1,820		7,192		1,844		1,817		1,812		1,719
Voice	1,907		957		950		3,968		973		994		1,020		981
Other services	127		64		63		211		60		52		55		44
Total external service revenues	5,723		2,890		2,833		11,371		2,877		2,863		2,887		2,744
Inter-segment service revenues	116		57		59		199		50		51		49		49
Total operating service revenues	5,839		2,947		2,892		11,570		2,927		2,914		2,936		2,793
Data	202		98		104		410		137		79		95		99
Equipment and other	177		89		88		419		154		95		85		85
Total external product revenues	379		187		192		829		291		174		180		184
Inter-segment product revenues	1		1		-		1		-		-		1		-
Total operating product revenues	380		188		192		830		291		174		181		184
Total external revenues	6,102		3,077		3,025		12,200		3,168		3,037		3,067		2,928
Total operating revenues	6,219		3,135		3,084		12,400		3,218		3,088		3,117		2,977
Operating costs	(3,596	)	(1,814	)	(1,782	)	(7,210	)	(1,906	)	(1,780	)	(1,810	)	(1,714	)
Adjusted EBITDA	2,623		1,321		1,302		5,190		1,312		1,308		1,307		1,263
Adjusted EBITDA margin	42.2	%	42.1	%	42.2	%	41.9	%	40.8	%	42.4	%	41.9	%	42.4	%
Capital expenditures	1,592		845		747		3,174		845		820		818		691
Capital intensity	25.6	%	27.0	%	24.2	%	25.6	%	26.3	%	26.6	%	26.2	%	23.2	%
High-speed Internet
High-speed Internet net activations	30,463		10,816		19,647		87,860		27,040		44,424		1,407		14,989
High-speed Internet subscribers EOP(A)(B)	3,856,555		3,856,555		3,845,739		3,790,141		3,790,141		3,763,101		3,718,677		3,717,270
TV
Net subscriber (losses) activations	(11,672	)	809		(12,481	)	(20,716	)	6,546		1,738		(13,337	)	(15,663	)
IPTV	34,226		20,653		13,573		107,712		32,484		36,399		16,427		22,402
Total subscribers EOP(B)	2,835,227		2,835,227		2,834,418		2,832,300		2,832,300		2,825,754		2,824,016		2,837,353
IPTV(B)	1,599,142		1,599,142		1,578,489		1,550,317		1,550,317		1,517,833		1,481,434		1,465,007
Network access services (NAS)
Residential NAS(B)	3,126,551		3,126,551		3,197,216		3,231,308		3,231,308		3,275,589		3,332,976		3,399,981
Residential NAS net losses	(128,198	)	(70,665	)	(57,533	)	(242,094	)	(44,281	)	(57,387	)	(67,005	)	(73,421	)

(A)	At the beginning of Q1 2018, we adjusted our high-speed Internet subscriber base to add 16,116 subscribers with a corresponding decrease to our postpaid wireless subscribers to reflect the transfer of fixed wireless Internet subscribers.
(B)	At the beginning of Q1 2018, our high-speed Internet subscriber base was increased by 19,835, our IPTV by 14,599 and our residential NAS by 23,441, mainly as a result of a small acquisition made in Q1 2018.

BCE Supplementary Financial Information - Second Quarter 2018 Page 10

BCE ^{(2) (3)}
Net debt and other information

BCE - Net debt and preferred shares
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)
	June 30 2018		March 31 2018		December 31 2017
Debt due within one year	5,732		5,520		5,178
Long-term debt	18,367		19,347		18,215
Preferred shares - BCE (A)	2,002		2,002		2,002
Cash and cash equivalents	(390	)	(1,199	)	(625	)
Net debt (4)	25,711		25,670		24,770
Net debt leverage ratio (4)	2.73		2.74		2.67
Adjusted EBITDA /net interest expense ratio (4)	9.18		9.22		9.23

Cash flow information
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q2 2018		Q2 2017		$ change		% change		YTD 2018		YTD 2017		$ change		% change
Free cash flow (FCF) (4)
Cash flows from operating activities	2,057		2,154		(97	)	(4.5	%)	3,553		3,467		86		2.5	%
Capital expenditures	(1,056	)	(1,042	)	(14	)	(1.3	%)	(1,987	)	(1,894	)	(93	)	(4.9	%)
Dividends paid on preferred shares	(35	)	(30	)	(5	)	(16.7	%)	(68	)	(73	)	5		6.8	%
Dividends paid by subsidiaries to non-controlling interest	-		(9	)	9		100.0	%	(13	)	(21	)	8		38.1	%
Acquisition and other costs paid	28		21		7		33.3	%	46		104		(58	)	(55.8	%)
FCF	994		1,094		(100	)	(9.1	%)	1,531		1,583		(52	)	(3.3	%)

Cash flow information - Historical trend
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2018		Q2 2018		Q1 2018		TOTAL 2017		Q4 2017		Q3 2017		Q2 2017		Q1 2017
FCF
Cash flows from operating activities	3,553		2,057		1,496		7,358		1,658		2,233		2,154		1,313
Capital expenditures	(1,987	)	(1,056	)	(931	)	(4,034	)	(1,100	)	(1,040	)	(1,042	)	(852	)
Dividends paid on preferred shares	(68	)	(35	)	(33	)	(127	)	(33	)	(21	)	(30	)	(43	)
Dividends paid by subsidiaries to non-controlling interest	(13	)	-		(13	)	(34	)	-		(13	)	(9	)	(12	)
Acquisition and other costs paid	46		28		18		155		27		24		21		83
Voluntary defined benefit pension plan contribution	-		-		-		100		100		-		-		-
FCF	1,531		994		537		3,418		652		1,183		1,094		489

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

BCE Supplementary Financial Information - Second Quarter 2018 Page 11

BCE ^{(2) (3)}
Consolidated Statements of Financial Position

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	June 30 2018		March 31 2018		December 31 2017
ASSETS
Current assets
Cash	254		675		442
Cash equivalents	136		524		183
Trade and other receivables	2,932		2,938		3,129
Inventory	436		443		380
Contract assets	856		836		832
Contract costs	345		337		350
Prepaid expenses	376		344		217
Other current assets	222		169		122
Total current assets	5,557		6,266		5,655
Non-current assets
Contract assets	414		414		431
Contract costs	287		280		286
Property, plant and equipment	24,392		24,169		24,029
Intangible assets	13,407		13,410		13,258
Deferred tax assets	156		153		144
Investments in associates and joint ventures	803		829		814
Other non-current assets	975		584		757
Goodwill	10,568		10,543		10,428
Total non-current assets	51,002		50,382		50,147
Total assets	56,559		56,648		55,802
LIABILITIES
Current liabilities
Trade payables and other liabilities	3,603		3,534		3,875
Contract liabilities	687		706		693
Interest payable	177		176		168
Dividends payable	701		701		678
Current tax liabilities	148		49		140
Debt due within one year	5,732		5,520		5,178
Total current liabilities	11,048		10,686		10,732
Non-current liabilities
Contract liabilities	196		196		201
Long-term debt	18,367		19,347		18,215
Deferred tax liabilities	3,139		2,916		2,870
Post-employment benefit obligations	1,987		2,124		2,108
Other non-current liabilities	1,098		1,083		1,051
Total non-current liabilities	24,787		25,666		24,445
Total liabilities	35,835		36,352		35,177
EQUITY
Equity attributable to BCE shareholders
Preferred shares	4,004		4,004		4,004
Common shares	20,027		20,026		20,091
Contributed surplus	1,151		1,141		1,162
Accumulated other comprehensive income (loss)	34		9		(17	)
Deficit	(4,811	)	(5,192	)	(4,938	)
Total equity attributable to BCE shareholders	20,405		19,988		20,302
Non-controlling interest	319		308		323
Total equity	20,724		20,296		20,625
Total liabilities and equity	56,559		56,648		55,802
Number of common shares outstanding (millions)	898.0		898.0		901.0

BCE Supplementary Financial Information - Second Quarter 2018 Page 12

BCE ^{(2) (3)}
Consolidated Cash Flow Data

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q2 2018		Q2 2017		$ change		YTD 2018		YTD 2017		$ change
Net earnings	755		814		(59	)	1,464		1,502		(38	)
Adjustments to reconcile net earnings to cash flows from operating activities
Severance, acquisition and other costs	24		36		(12	)	24		120		(96	)
Depreciation and amortization	1,008		977		31		2,000		1,886		114
Post-employment benefit plans cost	80		82		(2	)	170		150		20
Net interest expense	243		235		8		481		465		16
Losses on investments	-		-		-		-		12		(12	)
Income taxes	292		298		(6	)	527		548		(21	)
Contributions to post-employment benefit plans	(74	)	(86	)	12		(161	)	(174	)	13
Payments under other post-employment benefit plans	(19	)	(19	)	-		(38	)	(38	)	-
Severance and other costs paid	(33	)	(40	)	7		(68	)	(81	)	13
Interest paid	(252	)	(249	)	(3	)	(488	)	(472	)	(16	)
Income taxes paid (net of refunds)	(113	)	(114	)	1		(397	)	(402	)	5
Acquisition and other costs paid	(28	)	(21	)	(7	)	(46	)	(104	)	58
Net change in operating assets and liabilities	174		241		(67	)	85		55		30
Cash flows from operating activities	2,057		2,154		(97	)	3,553		3,467		86
Capital expenditures	(1,056	)	(1,042	)	(14	)	(1,987	)	(1,894	)	(93	)
Cash dividends paid on preferred shares	(35	)	(30	)	(5	)	(68	)	(73	)	5
Cash dividends paid by subsidiaries to non-controlling interest	-		(9	)	9		(13	)	(21	)	8
Acquisition and other costs paid	28		21		7		46		104		(58	)
Free cash flow	994		1,094		(100	)	1,531		1,583		(52	)
Business acquisitions	(21	)	-		(21	)	(244	)	(1,635	)	1,391
Acquisition and other costs paid	(28	)	(21	)	(7	)	(46	)	(104	)	58
Acquisition of spectrum licences	-		-		-		(36	)	-		(36	)
Disposition of intangibles and other assets	-		323		(323	)	68		323		(255	)
Other investing activities	(20	)	(5	)	(15	)	(55	)	(14	)	(41	)
Increase in notes payable	97		127		(30	)	40		435		(395	)
Decrease in securitized trade receivables	(2	)	(360	)	358		(2	)	(10	)	8
Issue of long-term debt	-		-		-		1,466		1,496		(30	)
Repayment of long-term debt	(1,068	)	(472	)	(596	)	(1,241	)	(1,076	)	(165	)
Issue of common shares	1		41		(40	)	2		89		(87	)
Repurchase of common shares	-		-		-		(175	)	-		(175	)
Repurchase of shares for settlement of share-based payments	(49	)	(45	)	(4	)	(137	)	(141	)	4
Cash dividends paid on common shares	(678	)	(626	)	(52	)	(1,324	)	(1,220	)	(104	)
Return of capital to non-controlling interest	(12	)	-		(12	)	(41	)	-		(41	)
Other financing activities	(23	)	(9	)	(14	)	(41	)	(22	)	(19	)
	(1,803	)	(1,047	)	(756	)	(1,766	)	(1,879	)	113
Net (decrease) increase in cash and cash equivalents	(809	)	47		(856	)	(235	)	(296	)	61
Cash and cash equivalents at beginning of period	1,199		510		689		625		853		(228	)
Cash and cash equivalents at end of period	390		557		(167	)	390		557		(167	)

BCE Supplementary Financial Information - Second Quarter 2018 Page 13

BCE
Consolidated Cash Flow Data - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2018		Q2 18		Q1 18		TOTAL 2017		Q4 17		Q3 17		Q2 17		Q1 17
Net earnings	1,464		755		709		3,050		698		850		814		688
Adjustments to reconcile net earnings to cash flows from operating activities
Severance, acquisition and other costs	24		24		-		190		47		23		36		84
Depreciation and amortization	2,000		1,008		992		3,844		991		967		977		909
Post-employment benefit plans cost	170		80		90		314		82		82		82		68
Net interest expense	481		243		238		942		238		239		235		230
Losses (gains) on investments	-		-		-		5		(7	)	-		-		12
Income taxes	527		292		235		1,069		272		249		298		250
Contributions to post-employment benefit plans	(161	)	(74	)	(87	)	(413	)	(175	)	(64	)	(86	)	(88	)
Payments under other post-employment benefit plans	(38	)	(19	)	(19	)	(77	)	(19	)	(20	)	(19	)	(19	)
Severance and other costs paid	(68	)	(33	)	(35	)	(147	)	(36	)	(30	)	(40	)	(41	)
Interest paid	(488	)	(252	)	(236	)	(965	)	(251	)	(242	)	(249	)	(223	)
Income taxes paid (net of refunds)	(397	)	(113	)	(284	)	(675	)	(207	)	(66	)	(114	)	(288	)
Acquisition and other costs paid	(46	)	(28	)	(18	)	(155	)	(27	)	(24	)	(21	)	(83	)
Net change in operating assets and liabilities	85		174		(89	)	376		52		269		241		(186	)
Cash flows from operating activities	3,553		2,057		1,496		7,358		1,658		2,233		2,154		1,313
Capital expenditures	(1,987	)	(1,056	)	(931	)	(4,034	)	(1,100	)	(1,040	)	(1,042	)	(852	)
Cash dividends paid on preferred shares	(68	)	(35	)	(33	)	(127	)	(33	)	(21	)	(30	)	(43	)
Cash dividends paid by subsidiaries to non-controlling interest	(13	)	-		(13	)	(34	)	-		(13	)	(9	)	(12	)
Acquisition and other costs paid	46		28		18		155		27		24		21		83
Voluntary defined benefit pension plan contribution	-		-		-		100		100		-		-		-
Free cash flow	1,531		994		537		3,418		652		1,183		1,094		489
Business acquisitions	(244	)	(21	)	(223	)	(1,649	)	(14	)	-		-		(1,635	)
Acquisition and other costs paid	(46	)	(28	)	(18	)	(155	)	(27	)	(24	)	(21	)	(83	)
Voluntary defined benefit pension plan contribution	-		-		-		(100	)	(100	)	-		-		-
Acquisition of spectrum licences	(36	)	-		(36	)	-		-		-		-		-
Disposition of intangibles and other assets	68		-		68		323		-		-		323		-
Other investing activities	(55	)	(20	)	(35	)	(77	)	(26	)	(37	)	(5	)	(9	)
Increase (decrease) in notes payable	40		97		(57	)	333		277		(379	)	127		308
(Decrease) increase in securitized trade receivables	(2	)	(2	)	-		(10	)	-		-		(360	)	350
Issue of long-term debt	1,466		-		1,466		3,011		-		1,515		-		1,496
Repayment of long-term debt	(1,241	)	(1,068	)	(173	)	(2,653	)	(1,435	)	(142	)	(472	)	(604	)
Issue of common shares	2		1		1		117		24		4		41		48
Repurchase of common shares	(175	)	-		(175	)	-		-		-		-		-
Repurchase of shares for settlement of share-based payments	(137	)	(49	)	(88	)	(224	)	(45	)	(38	)	(45	)	(96	)
Cash dividends paid on common shares	(1,324	)	(678	)	(646	)	(2,512	)	(646	)	(646	)	(626	)	(594	)
Return of capital to non-controlling interest	(41	)	(12	)	(29	)	-		-		-		-		-
Other financing activities	(41	)	(23	)	(18	)	(50	)	(14	)	(14	)	(9	)	(13	)
	(1,766	)	(1,803	)	37		(3,646	)	(2,006	)	239		(1,047	)	(832	)
Net (decrease) increase in cash and cash equivalents	(235	)	(809	)	574		(228	)	(1,354	)	1,422		47		(343	)
Cash and cash equivalents at beginning of period	625		1,199		625		853		1,979		557		510		853
Cash and cash equivalents at end of period	390		390		1,199		625		625		1,979		557		510

BCE Supplementary Financial Information - Second Quarter 2018 Page 14

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. 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.
(2)	As required by International Financial Reporting Standards (IFRS), effective January 1, 2018, we have adopted IFRS 15, Revenue from Contracts with Customers, retrospectively to each period in 2017 previously reported. For further details, see note 3 and note 14, Adoption of IFRS 15, respectively, of the Q1 2018 financial statements and Q2 2018 financial statements.
(3)	On March 17, 2017, BCE acquired all of the issued and outstanding common shares of MTS. Bell MTS offers wireless, Internet, television (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 2017 annual financial statements and the Q2 2018 financial statements, respectively.
(4)	Non-GAAP Financial Measures In Q1 2018, we updated our definition of adjusted net earnings and adjusted EPS to exclude net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans as they may affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. Adjusted net earnings and adjusted EPS for 2017 have also been updated for comparability purposes. 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 (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.

BCE Supplementary Financial Information - Second Quarter 2018 Page 15

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.

We define adjusted net earnings as net earnings attributable to common shareholders before severance, acquisition and other costs, net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans, net losses (gains) on investments, early debt redemption costs and impairment charges. 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 mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans, net losses (gains) on investments, early debt redemption costs and impairment charges, net of tax and non-controlling interest (NCI). We exclude these items because they affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. Excluding these items does not imply they are non-recurring.

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 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, 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 - Second Quarter 2018 Page 16

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.

(5)

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. Average revenue per user (ARPU) or subscriber is a measure used to track our recurring revenue streams, which has been updated to reflect the adoption of IFRS 15. 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. Average billing per user (ABPU) or subscriber approximates the average amount billed to customers on a monthly basis, which is used to track our recurring billing streams. This measure is the same as blended ARPU prior to the adoption of IFRS 15. Wireless blended ABPU is calculated by dividing certain customer billings by the average subscriber base for the specified period and is expressed as a dollar unit per month. Capital intensity is capital expenditures divided by operating revenues. 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. 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

BCE Supplementary Financial Information - Second Quarter 2018 Page 17

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 June 30, 2018.

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 N/A

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 April 1, 2018 and ended on June 30, 2018 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: August 2, 2018

(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 June 30, 2018.

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 N/A

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 April 1, 2018 and ended on June 30, 2018 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: August 2, 2018

(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 second quarter 2018 results

• Revenue of $5,786 million up 1.7%, adjusted EBITDA grows 2.0% to $2,430 million, margin increases to 42.0%

• Postpaid wireless net additions up 37.8% to 122,092 – best second-quarter performance since 2000 – driving wireless revenue growth of 5.0% and 6.2% higher adjusted EBITDA with 0.5-point margin expansion to 44.2%

• Total broadband Internet and IPTV net additions of 31,469, up 76.5%

• Wireline adjusted EBITDA up 1.1% on stronger organic residential revenue growth, improved Bell Business Markets results and stable operating costs

• Bell announces 1.5 Gigabit Internet service, the fastest access speed to the home available in Canada; Bell Internet speeds score 30% higher than our closest competitor in independent testing; over 4.2 million homes and businesses now served with direct fibre connections

• Net earnings of $755 million with net earnings attributable to common shareholders of $704 million, or $0.79 per common share; adjusted net earnings of $777 million generated adjusted EPS of $0.86

MONTRÉAL, August 2, 2018 – BCE Inc. (TSX, NYSE: BCE) today reported results for the second quarter (Q2) of 2018.

“Bell’s network leadership coupled with our team’s dedicated execution in a competitive marketplace delivered strong operational performance in Q2, including 154,000 net new Fibe TV, Internet and postpaid wireless additions, a 44.3% increase from last year, and continued growth in customer usage of our broadband services. Wireless continued to lead the way as we welcomed 122,092 net new postpaid customers, up 37.8% over last year and our best Q2 result in 18 years. The unmatched performance of Bell’s fibre network continues to propel wireline growth, including customer increases in Fibe TV and Internet and improved performance at Bell Business Markets. In a challenging and fast-changing media marketplace, Bell Media continues to deliver the top conventional, pay and specialty channels, including #1 sports network TSN and the most-watched CTV News, innovative new viewing options, and partnerships with the leading Canadian and international content brands,” said George Cope, President and CEO of BCE and Bell Canada.

“With 51 consecutive quarters of year-over-year adjusted EBITDA growth, the Bell team’s consistently strong operational execution is driving expected free cash flow growth of 3% to 7% in 2018, fully supporting our ongoing investment in the Bell broadband innovation strategy. Bell’s network leadership was underscored in Q2 with our ranking as by far the fastest Internet provider in Canada and our selection by the government of Alberta to operate its provincial SuperNet broadband network, and again today as Bell announces that our new 1.5 Gigabit Internet service will be available to consumers beginning this month.”

1/15

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.

BUSINESS DEVELOPMENTS

Bell announces 1.5 Gigabit Internet service; Bell Internet ranked as Canada’s fastest

Bell today announced that Bell Fibe Internet speeds of 1.5 Gigabit per second (Gbps), the fastest available to the home in Canada, will launch this month in Ontario, followed by Québec, Atlantic Canada and Manitoba. Bell has already taken the top spot in PCMag’s The Fastest ISPs of 2018: Canada, delivering the highest overall Internet speed index ever recorded in Canada by the magazine and scoring more than 30% higher than our nearest competitor. Atlantic Canada’s Bell Aliant took second place while Manitoba’s Bell MTS moved into the top 10 for the first time. Bell’s fibre to the premises (FTTP) network is now available to more than 4.2 million homes and businesses in 7 provinces and continues to expand with the announcement of new all-fibre deployments in the communities of Oshawa, Clarington, Orillia, Chatham-Kent and Winkler.

Bell awarded Alberta SuperNet, IoT, smart city contracts

Bell has been awarded a multi-year contract to operate SuperNet, the Alberta government initiative providing broadband connectivity to schools, hospitals, libraries, provincial, municipal and Indigenous offices, enterprise business customers and Internet service providers in communities throughout the province. Bell has also agreed to acquire Axia NetMedia Corporation, the Calgary-based operator of SuperNet’s rural assets, in a transaction expected to close later this month. Bell announced a multi-year agreement with Superior Propane to deliver a comprehensive Internet of Things (IoT) fuel tank monitoring solution for Superior’s business and residential customers. We also launched more smart kiosks and other smart city initiatives with the City of Orillia and Metrobus in St. John’s, and the North’s first smart kiosk in Whitehorse with Northwestel.

Lucky Mobile goes national; Fibe TV innovations

Canada’s low-cost prepaid wireless service Lucky Mobile is now available in all 10 provinces with launches in Québec, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador. Fibe TV customers in Ontario and Québec can now use the Fibe TV app to download and go with their recorded television content on laptops, smartphones and tablets even without an Internet connection, and Bell MTS announced the launch of 4K Fibe TV service in Manitoba, the first live 4K programming available in the province.

Bell Media content leadership: Just for Laughs, major studio agreements

Bell Media and Montreal Canadiens owners Groupe CH joined ICM Partners and Howie Mandel in acquiring Groupe Juste pour rire, producer of the world’s largest comedy festival in Montréal and other Just For Laughs TV and live comedy productions in Canada and worldwide. Bell Media announced new and exclusive long-term deals with major Hollywood movie studios, including 20^th Century Fox, Fox Searchlight Films, Entertainment One, Sony Pictures Entertainment, Universal Pictures, Focus Features and Warner Bros., to bring blockbuster movies to multiple platforms, complementing partnerships with premium TV brands HBO, SHOWTIME and Starz already in place. Bell Media also announced new ad-supported video-on-demand services CTV Movies and CTV Vault, each featuring thousands of hours of content.

2/15

Mental health and environmental leadership

The Bell Let’s Talk Community Fund, which doubled in value to $2 million annually as of 2018, has selected 120 front-line community mental health groups in every province to receive grants this year. Bell Let’s Talk and The Rossy Family Foundation made a joint $500,000 donation to the Fédération des cégeps and the Fondation de l’Université du Québec à Montréal to support the mental health of CÉGEP students. Bell was named one of Canada’s Greenest Employers for the second consecutive year.

BCE RESULTS

FINANCIAL HIGHLIGHTS

($ millions except per share amounts) (unaudited)	Q2 2018	Q2 2017	% change
BCE
Operating revenues	5,786	5,688	1.7%
Net earnings	755	814	(7.2%)
Net earnings attributable to common shareholders	704	765	(8.0%)
Adjusted net earnings(1)	777	795	(2.3%)
Adjusted EBITDA(2)	2,430	2,382	2.0%
EPS	0.79	0.85	(7.1%)
Adjusted EPS(1)	0.86	0.89	(3.4%)
Cash flows from operating activities	2,057	2,154	(4.5%)
Free cash flow(3)	994	1,094	(9.1%)

“We delivered another solid quarter of revenue and adjusted EBITDA growth consistent with plan, led by continued strong wireless operating profitability, improved organic wireline revenue growth and a healthy contribution to overall consolidated BCE free cash flow from Bell Media,” said Glen LeBlanc, Chief Financial Officer for BCE and Bell. “With a focus on profitable subscriber growth, we continued to leverage our advanced broadband networks and services to deliver higher wireless postpaid and residential wireline net customer additions in a financially disciplined manner during a seasonally slower quarter, providing the foundation for sustained financial performance going forward. Our operating results in 2018 and ongoing confidence in our business outlook provide us with considerable financial flexibility to execute our strategy and achieve our 2018 guidance targets, all of which we reconfirm today.”

BCE operating revenue was up 1.7% in Q2 to $5,786 million, reflecting a 1.0% increase in service revenue to $5,129 million and 7.7% higher product revenue of $657 million. This was driven by increases at both Bell Wireless and Bell Wireline, partly offset by a modest year-over-year revenue decline at Bell Media.

Net earnings decreased 7.2% to $755 million while net earnings attributable to common shareholders totalled $704 million, or $0.79 per share, down 8.0% and 7.1% respectively. Despite higher adjusted EBITDA, net earnings declined due mainly to higher other expense and increased depreciation and amortization.

Excluding severance, acquisition and other costs, net gains or losses on investments, net mark-to-market changes on derivatives used to economically hedge equity settled share-based compensation plans, early debt redemption costs and impairment charges, adjusted net earnings decreased 2.3% to $777 million, or $0.86 per common share.

3/15

Adjusted EBITDA grew 2.0% to $2,430 million, driven by increases of 6.2% at Bell Wireless and 1.1% at Bell Wireline. Bell Media adjusted EBITDA was down 8.5% due to the combined impact of lower advertising revenue and higher programming costs compared to last year. BCE’s consolidated adjusted EBITDA margin⁽²⁾ expanded to 42.0% from 41.9% in Q2 2017, reflecting the high flowthrough of strong wireless revenue growth, increasing broadband Internet scale, improved year-over-year wireline business markets performance, and disciplined spending on wireless postpaid and residential wireline subscriber acquisitions.

BCE continued to lead strategic investment in Canada’s advanced broadband wireline and wireless infrastructure with capital expenditures of $1,056 million in Q2, up 1.3% over last year. This represented a capital intensity ⁽⁴⁾ ratio (capital expenditures as a percentage of total revenue) of 18.3%, the same percentage as in Q2 2017. Capital investment focused primarily on expanding our fibre to the premises (FTTP) footprint and connecting more homes and businesses directly to the network; the deployment of wireless small-cells to optimize mobile coverage, signal quality and data backhaul; and ongoing investment in Manitoba to improve broadband network coverage, capacity and speeds.

BCE cash flows from operating activities were $2,057 million, down 4.5% from last year, as higher adjusted EBITDA was more than offset by a decrease in cash from working capital. Free cash flow generated in the quarter was $994 million, 9.1% lower than Q2 2017, reflecting a decrease in cash flows from operating activities, excluding acquisition and other costs paid, and higher capital expenditures.

In Q2, BCE reported 122,092 net new wireless postpaid subscribers and a decrease of 7,606 net wireless prepaid customers; 10,816 net new high-speed Internet customers; 20,653 net new IPTV customers and a decrease of 19,844 net satellite TV customers; and a decrease in residential NAS lines of 70,665.

BCE customer connections across wireless, Internet, TV and residential NAS totalled 19,127,867 at the end of Q2, up 1.9% from last year. The total included 9,309,534 wireless customers, up 4.6% over last year (including 8,593,113 postpaid customers, an increase of 5.7%); 3,856,555 high-speed Internet subscribers, up 3.7%; 2,835,227 TV subscribers (including 1,599,142 IPTV customers, an increase of 7.9%), up 0.4%; and 3,126,551 residential NAS lines, down 6.2%.

BCE OPERATING RESULTS BY SEGMENT

Bell Wireless

Bell Wireless delivered another strong quarter of financial results with total Q2 operating revenue up 5.0% to $2,046 million. Service revenue increased 3.6% to $1,574 million, reflecting continued subscriber base expansion, including a higher proportion of postpaid customers. Product revenue grew 9.8% to $472 million due to increased sales of higher-value smartphones.

Wireless adjusted EBITDA was up 6.2% to $904 million, yielding a 0.5 percentage-point increase in revenue margin to 44.2%, on strong revenue growth flow-through and disciplined spending on postpaid customer acquisitions and device upgrades. Operating costs were 4.0% higher compared to last year due to increased cost of goods sold, driven by higher handset sale volumes; increased network operating expenses; and higher customer support costs due to subscriber base growth and increasing data usage.

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• Postpaid net additions increased 37.8% to 122,092, our best Q2 performance since 2000. This was driven by 16.1% higher gross additions of 394,136, reflecting the success of our marketing efforts and sales execution across retail channels, Bell’s mobile network leadership and leading line-up of high-demand smartphones, and the ongoing onboarding of customers from our long-term mobile services contract with Shared Services Canada. Postpaid churn⁽⁴⁾ increased 2 basis points to 1.10%, reflecting promotional pricing discipline and more off-contract subscribers compared to last year.
• Prepaid net customer losses of 7,606 represented an improvement of 64.9% over last year as low-cost prepaid service Lucky Mobile continued to gain traction, contributing to 74,016 prepaid gross additions in the quarter, an increase of 15.6% over last year.
• Bell postpaid wireless customers totalled 8,593,113 at the end of Q2, a 5.7% increase over Q2 2017. Total wireless customers increased 4.6% to 9,309,534.
• Blended average billing per user (ABPU)⁽⁴⁾ increased 0.6% to $67.71, driven by a higher postpaid subscriber mix, more customers moving to higher-value monthly plans with larger data allotments, increased roaming revenue and the flow-through of pricing changes.
• Bell’s mobile LTE network provided coverage to more than 99% of Canadians at the end of Q2, including 90% covered by LTE Advanced (LTE-A) service. The percentage of postpaid subscribers on LTE has now reached 89%.

Bell Wireline

Total wireline operating revenue was up 0.6% to $3,135 million on a 0.4% increase in service revenue to $2,947 million and 3.9% higher product revenue of $188 million. These increases were due to positive residential services revenue growth driven by strong Internet and IPTV customer gains and higher household ARPU⁽⁴⁾, as well as improved Bell Business Markets performance from higher Internet Protocol (IP) broadband connectivity revenue and increased sales of professional services, including non-recurring contributions in the quarter from the G7 Summit and Ontario general election.

With increasing broadband subscriber scale, more favourable business markets results and relatively stable operating costs that grew a modest 0.2% over last year to $1,814 million, wireline adjusted EBITDA was up 1.1% to $1,321 million, driving a 20 basis-point increase in Bell’s North American-leading revenue margin to 42.1%.

• Bell added 10,816 new net high-speed Internet customers, compared to 1,407 in Q2 last year, driven by a rapidly expanding FTTP footprint (which reached more than 4.2 million locations at the end of the quarter, up from 3.4 million last year) and the pull-through of Internet customer activations from app-based live TV service Alt TV. BCE’s high-speed Internet customer base totalled 3,856,555 at the end of Q2, up 3.7% from the same time last year.
• Bell TV gained 20,653 net new IPTV subscribers in Q2, up 25.7% from the 16,427 last year despite sustained aggressive cable service bundle offers and ongoing cord cutting by customers. The improved year-over-year performance reflected strong customer demand for Alt TV and ongoing direct fibre footprint expansion. BCE served 1,599,142 IPTV subscribers at the end of Q2, up 7.9% from the same time last year.

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• Satellite TV net losses improved 33.3% to 19,844 from 29,764 in Q2 2017. The reduction was the result of fewer deactivations and migrations reflecting a more mature subscriber base geographically better-suited for satellite TV service, as well as increased market activity from the traditional summer bump in activations. BCE’s total TV customer base reached 2,835,227 TV subscribers at the end of Q2, up 0.4% from the same time last year.
• Wireline data service revenue was up 3.1% to $1,869 million on strong Internet and IPTV subscriber growth, higher ARPU from customer upgrades to faster Internet speeds and rate changes, and increased business IP broadband connectivity and professional services sales to large business customers, including contributions from the G7 Summit and Ontario election.
• Other services revenue increased 16.4% to $64 million, driven by the incremental financial contribution from the acquisition of AlarmForce Industries.
• Wireline product revenue was up 3.9% to $188 million, reflecting increased telecommunications equipment sales and the AlarmForce acquisition.
• Residential NAS net losses increased 5.5% to 70,665 from 67,005 in Q2 2017, the result of richer cable promotional service bundle offers and lower overall customer demand for traditional landline voice service due largely to continued wireless and Internet technology substitution. Bell residential NAS access lines totalled 3,126,551 at the end of Q2, a 6.2% decline from the same time last year.
• Total wireline voice revenue decreased 6.2% to $957 million due to NAS access line reductions, decreased usage of traditional long distance services and lower sales of wholesale international long distance minutes.

Bell Media

Bell Media reported revenues of $791 million, a 0.6% decline over last year as advertising revenue for conventional and non-sports specialty TV decreased due to ongoing market softness and viewership declines for traditional linear TV. This was moderated by advertising revenue from the 2018 FIFA World Cup, increases at specialty TV news service CP24 and continued growth in Astral outdoor advertising.

Subscriber revenue increased 1.9% in Q2, reflecting continued steady growth in CraveTV and TV Everywhere GO platforms, as well as revenue generated from our newly launched direct-to-consumer sports streaming services TSN Direct and RDS Direct.

Adjusted EBITDA for Bell Media fell 8.5% to $205 million, mainly due to higher operating costs from sports broadcast rights, including for the 2018 FIFA World Cup, and CraveTV programming expansion.

• CTV was the most-watched television network for the 17^th straight year, with 7 of the top 10 shows in total viewers and more top 20 programs in key demographics than all other competitors combined.

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• TSN remains Canada’s #1 specialty sports channel and the top specialty network overall, supported by high-profile programming including the 2018 FIFA World Cup, CFL Football, The Masters and U.S. Open Golf, and Grand Slam tennis.
• TSN and French-language sports network RDS also announced in Q2 new TV streaming options for consumers through a monthly subscription with the new TSN Direct and RDS Direct services. Current TSN and RDS subscribers can also now access on-demand content and bonus streams on all their screens through the TSN and RDS apps and websites.
• Canada’s top radio broadcaster, Bell Media reached an average audience of 17 million radio listeners who spent approximately 72 million hours tuned in each week.
• Bell Media remains the digital media leader among Canadian broadcast and video network competitors with monthly averages of 436 million total views, approximately 1 billion minutes spent watching, and 79 million videos served in Q2. We reached 67% of digital audiences with approximately 21 million unique monthly visitors.

COMMON SHARE DIVIDEND

BCE’s Board of Directors has declared a quarterly dividend of $0.755 per common share, payable on October 15, 2018 to shareholders of record at the close of business on September 14, 2018.

OUTLOOK FOR 2018

BCE confirmed its financial guidance targets for 2018, which were updated on May 3, 2018 to reflect the adoption of International Financial Reporting Standard 15 (IFRS 15):

	May 3 Guidance	August 2 Guidance
Revenue growth	2% – 4%	On track
Adjusted EBITDA growth	2% – 4%	On track
Capital intensity	approx. 17%	On track
Adjusted EPS	$3.45 – $3.55	On track
Adjusted EPS growth	1% – 4%	On track
Free cash flow growth	3% – 7%	On track
Annualized common dividend per share	$3.02	$3.02
Dividend payout policy(3)	65% – 75% of free cash flow	On track

CALL WITH FINANCIAL ANALYSTS

BCE will hold a conference call for financial analysts to discuss Q2 2018 results on Thursday, August 2 at 8:00 am (Eastern). Media are welcome to participate on a listen-only basis. Please dial toll-free 1-800-377-0758 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 5118526#.

A live audio webcast of the conference call will be available on BCE’s website at BCE Q2-2018 conference call. The mp3 file will be available for download on this page later in the day.

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NOTES

The information contained in this news release is unaudited.

In Q1 2018, we updated our definition of adjusted net earnings and adjusted EPS to exclude net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans as they may affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. Adjusted net earnings and adjusted EPS for 2017 have also been updated for comparability purposes.

(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 mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans, net losses (gains) on investments, early debt redemption costs and impairment charges. 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 mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans, net losses (gains) on investments, early debt redemption costs and impairment charges, net of tax and non-controlling interest (NCI). We exclude these items because they affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. Excluding these items does not imply they are non-recurring. 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.

($ millions except per share amounts)
	Q2 2018		Q2 2017
	TOTAL	PER SHARE	TOTAL	PER SHARE
Net earnings attributable to common shareholders	704	0.79	765	0.85
Severance, acquisition and other costs	18	0.02	27	0.04
Net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans	22	0.02	-	-
Net losses on investments	20	0.02	-	-
Early debt redemption costs	13	0.01	3	-
Impairment charges	-	-	-	-
Adjusted net earnings	777	0.86	795	0.89

(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

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information, in BCE’s Q2 2018 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.

($ millions)
	Q2 2018	Q2 2017
Net earnings	755	814
Severance, acquisition and other costs	24	36
Depreciation	787	767
Amortization	221	210
Finance costs
Interest expense	246	238
Interest on post-employment benefit obligations	17	18
Other (expense) income	88	1
Income taxes	292	298
Adjusted EBITDA	2,430	2,382
BCE operating revenues	5,786	5,688
Adjusted EBITDA margin	42.0%	41.9%

(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 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 nonrecurring. 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.

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($ millions)
	Q2 2018	Q2 2017
Cash flows from operating activities	2,057	2,154
Capital expenditures	(1,056)	(1,042)
Cash dividends paid on preferred shares	(35)	(30)
Cash dividends paid by subsidiaries to non-controlling interest	-	(9)
Acquisition and costs paid	28	21
Free cash flow	994	1,094

(4) We use ABPU, 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 2018 financial guidance (including revenues, adjusted EBITDA, capital intensity, adjusted EPS and free cash flow), BCE’s common share dividend payout policy and 2018 annualized common share dividend, 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 expectations as of August 2, 2018 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 August 2, 2018. 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 2018 financial results, as well as our objectives, strategic priorities and business outlook for 2018, and in obtaining a better

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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

• Lower economic growth, given the Bank of Canada’s most recent estimated growth in Canadian gross domestic product of 2.0% in 2018
• Employment gains expected to slow in 2018, as the overall level of business investment is expected to remain soft
• Interest rates expected to increase modestly in 2018
• Canadian dollar expected to remain at 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
• A soft media advertising market, due to variable demand, and continued escalation of costs to secure TV programming
• Ongoing linear TV subscriber erosion, due to growing cord-cutter and cord-never customer segments

Assumptions Concerning our Bell Wireless Segment

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

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

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

Assumptions Concerning our Bell Media Segment

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

Financial Assumptions Concerning BCE

The following constitute BCE’s principal financial assumptions for 2018:

• total post-employment benefit plans cost to be approximately $335 million to $355 million, based on an estimated accounting discount rate of 3.6%, comprised of an estimated above adjusted EBITDA post-employment benefit plans service cost of approximately $270 million to $280 million and an estimated below adjusted EBITDA net post-employment benefit plans financing cost of approximately $65 million to $75 million
• depreciation and amortization expense of approximately $4,000 million to $4,050 million
• interest expense of approximately $975 million to $1,000 million
• an effective tax rate of approximately 25%
• NCI of approximately $50 million
• total pension plan cash funding of approximately $400 million
• cash taxes of approximately $700 million to $750 million

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• 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
• average BCE common shares outstanding of approximately 900 million
• Common share buybacks totalling $175 million
• an annual common share dividend of $3.02 per share

The foregoing assumptions, although considered reasonable by BCE on August 2, 2018, 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 2018 financial guidance, are listed below. The realization of our forward-looking statements, including our ability to meet our 2018 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:

• the intensity of competitive activity, including from new and emerging competitors, and the resulting impact on the cost of retaining existing customers and attracting new ones, as well as on our market shares, service volumes and pricing strategies
• the level of technological substitution and the presence of alternative service providers contributing to reduced utilization of our traditional wireline services
• regulatory initiatives, proceedings and decisions, government consultations and government positions that affect us and influence our business, including, in particular, those relating to mandatory access to networks, spectrum auctions, approval of acquisitions, broadcast licensing and foreign ownership requirements
• the inability to protect our physical and non-physical assets, including networks, IT systems, offices, corporate stores and sensitive information, from events and attacks such as cyber threats, and damage from fire and natural disasters
• security and data leakage exposure if security control protocols applicable to our cloud- based solutions are bypassed
• 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 failure to optimize network and IT deployment and upgrade 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

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• 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
• online content theft and piracy and the absence of effective legal recourses to combat them
• events affecting the continuity of supply of products and services that we need to operate our business and to comply with various obligations from our third-party suppliers, outsourcers and consultants
• the failure of our procurement and vendor management practices to address risk exposures associated with existing and new supplier models
• the quality of our products and services and the extent to which they may be subject to manufacturing defects or fail to comply with applicable government regulations and standards
• 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

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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 2017 Annual MD&A dated March 8, 2018 (included in BCE’s 2017 Annual Report) and BCE’s 2018 First and Second Quarter MD&As dated May 2, 2018 and August 1, 2018, respectively, 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

BCE is Canada’s largest communications company, providing advanced Bell broadband wireless, TV, Internet and business communication services throughout the country. Bell Media is Canada’s premier content creation company with leading assets in television, radio, out of home, and digital media. To learn more, please visit Bell.ca or 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 mental health 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: August 2, 2018

BELL CANADA
By:	(signed) Thierry Chaumont
Name:	Thierry Chaumont
Title:	Senior Vice-President and Controller

BELL CANADA

UNAUDITED SELECTED SUMMARY FINANCIAL INFORMATION ⁽¹⁾
For the periods ended June 30, 2018 and 2017
(in millions of Canadian dollars)

BCE Inc. fully and unconditionally guarantees the payment obligations of its 100% owned subsidiary Bell Canada under the public debt issued by Bell Canada. Accordingly, the following summary financial information is provided by Bell Canada in compliance with the requirements of section 13.4 of National Instrument 51-102 (Continuous Disclosure Obligations) providing for an exemption for certain credit support issuers. The tables below contain selected summary financial information for (i) BCE Inc. (as credit supporter), (ii) Bell Canada (as credit support issuer) on a consolidated basis, (iii) BCE Inc.’s subsidiaries, other than Bell Canada, on a combined basis, (iv) consolidating adjustments, and (v) BCE Inc. and all of its subsidiaries on a consolidated basis, in each case for the periods indicated. Such summary financial information for BCE Inc. and Bell Canada and all other subsidiaries is intended to provide investors with meaningful and comparable financial information about BCE Inc. and its subsidiaries. This summary financial information should be read in conjunction with BCE Inc.’s audited consolidated financial statements for the year ended December 31, 2017 and the unaudited consolidated interim financial report for the six months ended June 30, 2018.

For the periods ended June 30:

	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
	2018	2017	2018	2017	2018	2017	2018	2017	2018	2017	2018	2017	2018	2017	2018	2017	2018	2017	2018	2017
	Three	Three	Six	Six	Three	Three	Six	Six	Three	Three	Six	Six	Three	Three	Six	Six	Three	Three	Six	Six
	months	months	months	months	months	months	months	months	months	months	months	months	months	months	months	months	months	months	months	months
Operating revenues	—	—	—	—	5,786	5,688	11,377	11,025	—	—	—	—	—	—	(1)	(1)	5,786	5,688	11,376	11,024
Net earnings from continuing operations attributable to owners	739	797	1,436	1,470	776	796	1,463	1,467	35	37	70	37	(811)	(833)	(1,533)	(1,504)	739	797	1,436	1,470
Net earnings attributable to owners	739	797	1,436	1,470	776	796	1,463	1,467	35	37	70	37	(811)	(833)	(1,533)	(1,504)	739	797	1,436	1,470

As at June 30, 2018 and December 31, 2017, 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
	June 30,	Dec. 31,	June 30,	Dec. 31,	June 30,	Dec. 31,	June 30,	Dec. 31,	June 30,	Dec. 31,
	2018	2017	2018	2017	2018	2017	2018	2017	2018	2017
Total Current Assets	561	626	6,858	6,280	216	154	(2,078)	(1,405)	5,557	5,655
Total Non-current Assets	22,168	21,359	44,293	43,429	78	80	(15,537)	(14,721)	51,002	50,147
Total Current Liabilities	2,213	1,567	10,869	10,529	44	41	(2,078)	(1,405)	11,048	10,732
Total Non-current Liabilities	111	116	24,042	23,692	89	103	545	534	24,787	24,445

(1)	The summary financial information is prepared in accordance with International Financial Reporting Standards (IFRS) and is in accordance with generally accepted accounting principles issued by the Canadian Accounting Standards Board for publicly-accountable enterprises. As required by IFRS, effective January 1, 2018, BCE adopted IFRS 15 - Revenue from Contracts with Customers, retrospectively to each period in 2017 previously reported.
(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 2018 SECOND QUARTER FINANCIAL STATEMENTS
EARNINGS COVERAGE

The following consolidated financial ratios are calculated for the twelve months ended June 30, 2018 and give effect to the issuance and redemption of all long-term debt since July 1, 2017 as if these transactions occurred on July 1, 2017 and are based on unaudited financial information of BCE Inc.

	June 30, 2018
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:	4.9 times

EX-99.7

Exhibit 99.7

Code of Business Conduct

What we do is who we are

Our Moral Compass

Policy Contact: corporate.secretariat@bell.ca

© Bell Canada 2018. All Rights Reserved.

Code of Business Conduct

What’s Inside

1	INTRODUCTION	1
	1.1  Scope: Who Does the Code Apply To?	1
	1.2  Objectives	1
	1.3  Reporting a Misconduct or Violation of the Code – The Business Conduct Help Line	1
	1.4  Responsibilities of Managers & Executives	2
	1.5  Penalties for Violations	2
	1.6  Annual Review and Sign Off	2
2	OUR PRINCIPLES OF ETHICAL CONDUCT	3
	2.1  Personal Integrity	3
	2.2  Conflicts of Interest	3
	2.3  Loans, Gifts and Entertainment	7
	2.4  Political Activities	8
	2.5  Improper Influence on the Conduct of Audits	9
	2.6  Trading in Securities	9
	2.7  Public Disclosure of Material Information	10
	2.8  Confidentiality of Customer and Employee Information	10
	2.9  Information Classification and Records Management	12
	2.10  Dealing with Customers and Suppliers	14
	2.11  Dealing with Competitors	15
	2.12  Safeguarding Bell Assets	16
	2.13  Social Media	20
	2.14  Work Environment	21
	2.15  Journalistic Independence	26
	2.16  Protecting the Environment	27
3	ROLES AND RESPONSIBILITIES	28
	3.1  Business Unit Responsibility	28
	3.2  Board of Directors, Corporate Governance Committee and Audit Committee	28
	3.3  Corporate Secretary’s Office	28
APPENDICES		29
	Supporting Procedures	29
	Attachments	29
POLICY OR PRACTICE DETAILS		34

If you have any question regarding this Code of Business Conduct, please e-mail corporate.secretariat@bell.ca or contact the Business Conduct Help Line available at clearviewconnects.com on a 24/7 basis or by calling 1 866 298 2942 (toll free).

Our goal:

To be recognized by customers as Canada’s leading communications company.

Our 6 strategic imperatives:

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Code of Business Conduct

A Message from our President and Chief Executive Officer

As Canada’s communications leader since 1880, Bell has earned a reputation for operating with the highest standards of business conduct and good governance.

A critical component of our leadership has been the commitment by Bell team members each year to abide by the Bell Code of Business Conduct. The Code clearly explains the key values and standards of behaviour expected of every member of the team in all aspects of our business.

As we work together to achieve Bell’s goal – to be recognized by customers as Canada’s leading communications company – each of us has a duty to uphold the highest ethical and professional standards in every interaction with customers and the broader public, shareholders, suppliers and our fellow team members.

Please review the Bell Code of Business Conduct at your earliest opportunity and renew your commitment to upholding its principles each day. Thank you.

George Cope
President and Chief Executive Officer BCE Inc. and Bell Canada

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Code of Business Conduct

1 INTRODUCTION

The Bell Canada Code of Business Conduct explains the fundamental values and standards of behaviour that are expected from us in all aspects of our business.

In our daily activities, we have a fundamental responsibility to address a broad spectrum of issues. These include: preventing conflicts of interest, protecting company assets, safeguarding privacy and confidentiality, treating customers and the broader public, shareholders, suppliers, our fellow team members and competitors with respect and honesty, fostering a diverse, safe and healthy workplace and protecting the environment.

Acting responsibly is central to achieving sustainable business success and essential to the pursuit of our corporate goal: to be recognized by customers as Canada’s leading communications company.

The Code provides various rules and guidelines for ethical behaviour based on Bell values, as well as applicable laws and regulations.

These values and standards reinforce our commitment to the highest levels of customer service, a working environment in which performance is recognized and people are respected and sensitivity to the needs of the community that Bell serves.

1.1 Scope: Who Does the Code Apply To?

The Code applies to everyone at Bell, including all directors, executives and employees of BCE Inc., Bell Canada and their subsidiaries. Throughout the Code, we will refer to these companies as Bell.

1.2 Objectives

Collectively, we undertake to:

• perform our work duties and conduct our business relationships with integrity and in a dynamic, straightforward, honest and fair manner
• comply with laws that apply to us as well as with Bell policies and procedures
• avoid conflicts of interest
• foster a work environment based on mutual trust and respect and that encourages open communication
• maintain a safe, healthy and secure workplace
• protect the environment
• support a culture in which ethical conduct is recognized, valued and exemplified
• promptly report issues relating to the Code and potential violations, non-compliance with applicable laws, regulations or company policies or procedures and any other emergencies.

1.3 Reporting a Misconduct or Violation of the Code – The Business Conduct Help Line

Individual responsibility does not mean you are on your own when facing an ethical issue. Don’t be reluctant to ask any questions you might have on the Code or raise issues.

As part of Bell’s commitment to the highest standards of ethics, employees are encouraged to promptly report any actual or potential misconduct, Code or other company policy violations, malpractice, fraud, misappropriation of business property or any other illegal or unethical act or behaviour, including accounting, internal accounting controls or auditing matters by an employee of Bell or by any business unit of Bell.

Any submission made by an employee regarding an unethical behaviour will be treated on a confidential and anonymous basis, unless specifically permitted to be disclosed by the employee or unless required by law. Submissions will only be disclosed to those persons who have a need to know in order to properly carry out an investigation of the potential unethical behaviour.

Any employee who in good faith reports an unethical behaviour will be protected from threats of retaliation, discharge or other types of sanctions that are directly related to the disclosure of such unethical behaviour.

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Code of Business Conduct

No employee will be penalized for inquiring, in good faith, about apparently unethical behaviour or for obtaining guidance on how to handle suspected illegal acts or policy violations. Further, Bell will not allow retaliation for reports made in good faith.

An unethical behaviour may be reported to your immediate manager. If this won’t meet your needs, is inappropriate, does not provide the necessary level of confidentiality or if you otherwise prefer, you can contact our confidential and anonymous Business Conduct Help Line at clearviewconnects.com on a 24/7 basis or by calling 1 866 298 2942 (toll free). You may also contact the Chief Legal & Regulatory Officer and EVP, Corporate Development or the Chair of the Audit Committee.

You can also consult the Complaint Procedures for Accounting and Auditing Matters on the Corporate Policies & Ethics Program intranet site.

1.4 Responsibilities of Managers & Executives

We are all expected to perform our jobs with integrity and in a dynamic, straightforward, honest and fair manner. However, managers and executives have an enhanced role. This means:

• setting an example by complying with the Code and all Bell policies at all times
• ensuring that all employees have access to the Code (on-line or in paper format), that they know, understand and comply with its provisions and that they complete the annual review and sign off process
• complying with security policies and the associated directives, procedures and standards
• fostering an environment that encourages open communication and upholds sustainable development, health & safety, labour and ethics principles in every business decision and actions
• immediately reporting violations of the Code or breaches of Bell policies and taking prompt and decisive disciplinary action when it has been established that the Code has been violated.

1.5 Penalties for Violations

Disciplinary action up to and including dismissal will be taken should an employee, manager or executive:

• violate the Code or a Bell policy, disregard proper procedures or ask others to violate the Code or a Bell policy
• deliberately fail to promptly report a violation or withhold relevant information concerning a violation
• fail to cooperate in the investigation of a known or suspected violation or
• take action against an employee who reports a violation or breach of the Code or other policy.

1.6 Annual Review and Sign Off

To demonstrate our commitment to the shared values and standards described in the Code, all employees, managers, executives and members of the Board of Directors must certify annually that they have reviewed and follow the Code. A copy of these certifications can be found at Attachments 1A and 2A. All employees must also take the on-line course on the Code at least every two years.

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Code of Business Conduct

2 OUR PRINCIPLES OF ETHICAL CONDUCT

2.1 Personal Integrity

Ethical behaviour is an essential part of our job and is a personal responsibility we all share. It means performing our job fully and competently. It also means being accountable for our behaviour and for supporting the values, principles and standards upon which our reputation rests.

Many aspects of our business are governed by laws and regulations and compliance with such laws and regulations is basic to ethical conduct. Bell and its directors, executives, managers and other employees are expected to comply with the laws, rules and regulations of all countries in which we operate, as well as the expectations and requirements of our various regulators. These laws include, but are not limited to, telecommunications and broadcasting laws, securities laws, laws prohibiting the corruption of government officials, in Canada and abroad, as well as lobbying, competition, environmental, health and safety and employment legislation.

Ethical behaviour, however, goes beyond mere compliance with the law. It involves thinking through the possible impact of our decisions on all interested parties - customers, employees, unions, business partners, suppliers, investors, government as well as the communities and environment in which we live and work.

Although the Code lays out the fundamental principles of ethical and legal conduct, it cannot anticipate every ethical dilemma or situation we may encounter as we perform our jobs. This would be impossible given the rapid evolution of the communications industry.

Consequently, we may often find ourselves caught in a situation or facing an ethical problem not explicitly covered in the Code. In this case, we must rely on our internal sense of what is right – our moral compass – to guide us in making the right decision.

When faced with a difficult or unclear situation, it may help to ask questions such as:

• how would I feel if, rather than initiating this action, I was on the receiving end?
• how would my customer react if he/she knew I was breaking the rules or distorting the facts to make a sale?
• if I do this, how will I feel afterwards? Would I want my co-workers, friends or family to find out?
• if my actions became public, how would they be reported in the media?

Assuming personal responsibility for our actions means we can’t blame someone else for our behaviour. Conversely, no one - not even a manager - can force us to commit an illegal or unethical act that may damage Bell’s reputation, or our own.

We have a duty to report illegal acts or violations of the Code or Bell policies. Turning a blind eye to wrongdoing - in effect condoning such behaviour - is itself unethical. See section 1.3 for ways that are available to you to report unethical conducts.

Any breach of the Code or Bell policies or evidence of illegal behaviour will be taken very seriously. Depending on the nature and severity of the case, employees who breach the Code, violate Bell policy or commit an illegal act will face immediate discipline, up to and including dismissal, as well as possible civil or criminal prosecution.

2.2 Conflicts of Interest

As employees, managers and executives, our business loyalty rests in placing Bell’s interests – including those of its customers and shareholders – before our personal interests and relationships.

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Code of Business Conduct

A conflict of interest arises whenever we allow, or appear to allow, personal interests or relationships to impair our judgment and ability to make decisions with integrity and honesty. By thinking of ourselves or our relationships first, we may act in a way that is damaging, or potentially damaging, to Bell. We may also harm our personal reputation.

We must not use our position to influence or bypass Bell procedures for personal gain nor for the benefit of our family, friends, colleagues or anyone else.

How Can I Tell If I Am In a Conflict of Interest?

If you are not sure about a particular situation, obtain the guidance you need. Start by asking yourself the following questions:

• Am I following proper Bell procedures?
• Do I stand to potentially gain personally from my actions?
• Can my actions potentially result in a financial or other advantage for myself, a near relative (which would include a spouse, sibling, parent, child, or in-law), friend or other relationship?
• Am I uncomfortable discussing this with my manager or fellow employees?
• Would I act differently if a friend or near relative or relationship weren’t involved?

If you have any doubts about a possible conflict, raise the matter with your manager or contact the Business Conduct Help Line at www.clearviewconnects.com or by calling 1-866-298-2942 (toll free).

If there is an actual or potential conflict of interest, you must disclose it immediately to your leader and as part of the annual online review process.

2.2.1 Conflicts of Interest Relating to Family and Personal Relationships

Each of us has a variety of personal relationships involving family and friends and sometimes our work and personal lives intersect.

We must disclose this relationship if it compromises, or threatens to compromise, our ability to act in Bell’s best interest. Speak to your manager or contact the Business Conduct Help Line for further guidance. We should also be aware that bridging our personal and business lives may cause our competitors or suppliers – as well as colleagues within Bell – to believe we are in a conflict of interest. To avoid a conflict of interest, or prevent a situation from developing into a conflict of interest, you must inform your manager if, for example:

• you are considering hiring a near relative, friend or relationship
• you transact business on behalf of Bell with a near relative, friend or relationship
• you have been employed by a competitor within the last two years
• a near relative, friend or relationship works for a supplier or competitor or has a financial interest in or is a major shareholder of a supplier or competitor.

If you are concerned that you may be in a conflict of interest, speak to your manager. You must also disclose the conflict at your next online annual review of the Code.

My partner has just become an executive sales manager for a company that services the computers in my department. Do I need to tell anyone about this?

• Yes. Someone could claim that Bell is giving your partner business because you are a Bell employee. You should notify your manager and make sure you are not involved in any decisions regarding your partner’s company. This relationship should be disclosed in your annual online review of the Code.

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Code of Business Conduct

2.2.2 Conflicts of Interest Relating to Supplier-Funded Incentive Programs

Supplier-funded incentive programs, often offered to sales employees by suppliers seeking to sell their products, may only be arranged through an authorized program administrator who does not work with the eligible employees.

It’s up to the program administrator to ensure there is no conflict between Bell’s marketing strategy and the supplier’s incentive program. For further information, please refer to the Incentive & Recognition Programs Guidelines on the Human Resources intranet site.

2.2.3 Conflicts of Interest Arising from Outside Employment and Similar Activities

We all have a right to do what we want during our non-working hours. This could include holding another job in which we use the skills and experience acquired through our work at Bell. However, we must ensure that our outside employment or other activities do not conflict, or appear to conflict, with Bell’s business or with our ability to fulfill our duties as employees.

To avoid a conflict of interest, or even the appearance of such a conflict, you should discuss any planned outside business activities with your manager. As a general guideline, you may not:

• work for an organization that competes with Bell or operate a business or promote a third party’s line of products or services that compete with those offered by Bell
• use Bell’s time, materials and facilities in paid or unpaid work for other organizations (for example, to support a charitable community project), unless specifically authorized by senior management (CP4 or higher). Where such authorization has been obtained, as per the Bell Community Investment policy, no company products or services (such as wireline telecommunication services, Internet services, handsets, etc.) may be provided in-kind
• accept outside employment or engage in any activity that may prevent you from performing your job at Bell fully and competently
• contribute to or support any political group or political activity on behalf of Bell, unless specifically authorized by the appropriate Bell department responsible for government relations.

I am a Bell technician who installs circuitry for small and medium-sized business customers. With the growth of the Internet and other communications services, demand for my expertise is booming. Can I take advantage of this opportunity and start up an installation business on my own time?

• No. You cannot engage in any outside activity that might take business away from Bell or any of its subsidiaries. Furthermore, as an employee, you are expected to contribute your energy and ideas to your job as an installer for Bell.

As a customer service representative I happen to respond to my brother’s telephone call inquiring about a charge on his account for TV services. Can I respond to this call and make adjustments, if any, to his account?

• No. Employees are not allowed to access or make changes to the billing accounts of their families and friends, including accessing their own or invoicing themselves.

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Code of Business Conduct

2.2.4 Conflict of Interest Guidelines for Executives and External Directorships

In addition to the conflict of interest guidelines and procedures noted above, in respect to all persons who are executives (i.e. Vice-President and above), a conflict of interest may also arise:

• when there is an outside interest which materially encroaches on time or attention which should be devoted to Bell’s affairs or so affects the executive's energies as to prevent him/her from devoting his/her full abilities to the performance of duties
• where an executive or any of his/her near relatives, friends or relationships has a direct or indirect interest in or relationship with any outsider, such as a supplier (whether of goods or services), customer, agent or competitor of Bell or its subsidiary and associated corporations, or with a person in a position to influence the actions of an outsider, which is inherently unethical or which might be implied or construed to:
  • give rise to a possible personal gain or favour to the executive involved, or any of his/her near relatives, friends or relationships due to the executive's actual or potential power to influence dealings between Bell and the outsider
  • render the executive partial toward the outsider for personal reasons, or otherwise inhibit the impartiality of the executive's business judgement or his/her desire to serve only Bell’s best interests in the performance of his/her functions as an executive
  • place the executive or Bell in an equivocal, embarrassing or ethically questionable position in the eyes of the public or any external monitoring body
  • reflect unfavourably on the integrity of the executive or Bell.
• where an executive or any of his/her near relatives, friends or relationships makes use of any non-public information, such as information for internal use, or of a confidential nature, proprietary, insider, privileged or government classified nature or customer information, entrusted to or obtained by the executive in the conduct of Bell’s business to benefit himself/herself or any of his/her near relatives, by selling or making available such information to interests outside Bell, or uses the information in any other manner to further his/her interest(s), or the interest(s) of any of his/her near relatives
• where an executive or any of his/her near relatives, friends or relationships has any direct or indirect interest or relationship which is actually or potentially harmful or detrimental to Bell’s best interests.

Executives are required to disclose any actual or potential conflicts of interest by providing written notice to the Corporate Secretary at corporate.secretariat@bell.ca. The Corporate Secretary is responsible for administering the Code and the Conflict of Interest Guidelines. If the Corporate Secretary is unable to resolve an existing or potential conflict of interest with the person involved, the matter will be discussed with the Chief Legal & Regulatory Officer and EVP, Corporate Development.

External Directorships

As a general rule, executives are allowed to be appointed to the board of directors of a company other than a Bell company provided that such appointment:

• will not create conflicts of interest either for the executive or for any Bell company
• will contribute to the development of the executive or will benefit Bell either directly or indirectly
• will not be at the expense of the executive’s corporate responsibilities and will not impose an undue burden on the executive.

Provided the above criteria are met, before accepting an external directorship appointment, an executive shall, through his/her superior, seek and obtain clearance from the President and Chief Executive Officer. If appointed, the executive must then disclose such fact to the Corporate Secretary’s Office promptly.

Executives should however understand that the BCE group companies’ D&O Insurance policy will not be applicable unless the executive’s appointment is made at the request of Bell.

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Code of Business Conduct

2.3 Loans, Gifts and Entertainment

2.3.1 Loans from Bell

We do not accept, whether directly or indirectly, any loan or guarantee of obligations from Bell that are for our personal benefit.

2.3.2 Business Gifts & Entertainment

Do not solicit, accept or give gifts, gratuities, favours or unusual hospitality from or to suppliers or customers, which may compromise - or appear to compromise - our ability to make fair, objective, business decisions or may unfairly influence a business interaction.

Do not solicit or encourage gifts, hospitality, entertainment or any other thing for personal use.

Do not accept gifts having a monetary value; for example, gift certificates, cash, services, discounts or loans.

Notwithstanding any other provision of this section, do not offer gifts, gratuities, favours or hospitality to public sector recipients or sponsor public sector events/activities without the express prior consent of the Legal, Regulatory and Government Affairs Team.

These guidelines do not change during traditional gift giving season.

We recognize, however, that building relationships with customers and suppliers is an integral part of doing business.

You may offer and accept reasonable hospitality in certain cases. If to or from public sector third parties, you must first obtain the express prior consent of the Legal, Regulatory and Government Affairs Team. If to or from other third parties, you should consult your manager or contact the Business Conduct Help Line when in doubt about the appropriateness of a particular situation.

You may participate in unsolicited business entertainment depending on the function or services you perform for Bell and if the entertainment is clearly intended to facilitate business goals. If for example, tickets to a sporting or cultural event are offered, then the person offering the tickets should plan to attend the event as well.

You may sponsor events/activities for customers or potential customers where the purpose is to strengthen business relationships; however it is your responsibility to know and be sensitive to the customer’s own code of conduct on these issues and, for public sector events/activities, you must first obtain the express prior consent of the Legal, Regulatory and Government Affairs Team. Solicitation of modest gifts or prizes for Bell sponsored events which provide clear benefits to the sponsor and/or charitable organization is permitted upon approval by your manager and, in the case of the public sector, the Legal, Regulatory and Government Affairs Team.

You may accept unsolicited, nominal value hospitality, gifts or mementos that are customary or business related.

You may accept business entertainment in the form of meals as long as it is modest, infrequent, and as far as possible on a reciprocal basis.

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Factors which you and your manager should consider when assessing the proper course of action include:

• Is Bell potentially involved in a major procurement activity with the company offering the gift or entertainment?
• Would the gift or entertainment be considered appropriate or customary, taking into account the nature of the function or services you perform for Bell?
• Would it be perceived as insulting or damaging to the business relationship to return the gift or decline the hospitality?
• Can the gift or hospitality be applied to benefit all team members rather than certain individuals?
• Is the public sector involved? If so, consult the Legal, Regulatory and Government Affairs Team

2.4 Political Activities

2.4.1 Political Contributions

Political Contributions refer to any payment or donation, including provision of services at favourable rates, irrespective of format or location, made on behalf of Bell to a recipient involved in federal, provincial, territorial or municipal political process, such as a political party, an election or leadership candidate, a riding association or an elected official. Bell’s corporate policy prohibits political contributions without the express prior consent of the Chief Legal & Regulatory Officer and EVP, Corporate Development. This policy does not apply to political contributions made by individuals within Bell on their own behalf. However, funds or assets being contributed must originate with or belong to the individual making the contribution, and individuals making political contributions should be prepared to demonstrate ownership.

For further information, consult the Political Contributions Policy available from the Corporate Policies & Ethics intranet site.

Beyond standard penalties for non-compliance with the Code which were previously outlined, Bell may refer the matter to the appropriate regulatory and legal authorities, which could lead to penalties, fines or imprisonment.

2.4.2 Lobbying on behalf of Bell

Broadly speaking, lobbying involves reaching out to a public office holder in order to further Bell’s objectives, whether at the federal, provincial, municipal or other level of government. It is each employee’s own responsibility to know and ensure compliance with the rules and guidelines applicable to the jurisdiction of the public office holder he or she is meeting with. Lobbying does not, however, include formal legal or regulatory submissions, communications in a public forum or responses to government Request for Proposals.

Lobbying public office holders is a legitimate activity but the law sets certain boundaries around lobbying, as well as establishes some disclosure requirements, to ensure that lobbying activities are transparent and ethical. The Legal, Regulatory and Government Affairs Team must be consulted before making representations to public office holders. If you have any questions, you may consult the Legal, Regulatory and Government Affairs Team prior to the meeting.

Beyond standard penalties for non-compliance with the Code which were previously outlined, Bell may refer the matter to the appropriate regulatory and legal authorities, which could lead to penalties, fines or imprisonment.

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Code of Business Conduct

2.5 Improper Influence on the Conduct of Audits

Employees are prohibited from coercing, manipulating, misleading or fraudulently influencing Bell’s internal or external auditors at any time and especially when the employee knows or should know that his/her action, if successful, could result in rendering Bell’s financial statements misleading in any way.

2.6 Trading in Securities

2.6.1 Insider Trading

As a director or employee, you may become aware of undisclosed material information about Bell or any other company. Unless you are certain that the entirety of this information has been officially publicly disclosed, it is illegal for you to:

• trade in securities of BCE Inc., Bell Canada or any company to which the information relates
• disclose such information (otherwise than in the necessary course of business and on a confidential basis) to another person – also known as “tipping” - even if the other person, the tippee, is related to you or is a friend. Trading or tipping by the tippee is also illegal.

Undisclosed material information refers to information that, if disclosed, could affect the market price of a company’s securities or is likely to be considered important by investors in determining whether to buy, sell or otherwise trade in such securities. Some examples of what could constitute undisclosed material information are financial results, key operating metrics, financial guidance and business plans before they are publicly announced, material planned business acquisitions or dispositions, significant new products and services before they are launched and cybersecurity incidents.

At law, severe penalties may be imposed against you personally as a result of unlawful trading and tipping.

Assuming you are not otherwise aware of undisclosed material information, the recommended time to purchase or sell BCE Inc. and Bell Canada securities is during the period beginning on the second business day following the day of announcement of BCE Inc.’s and Bell Canada’s quarterly financial results and ending on the last day of the quarter during which the announcement is made. This will help minimize the risk of an unintentional violation of these prohibitions, and the appearance of a violation (intentional or not). All employees are required to keep accurate records of their securities transactions and may be asked to report to Bell their holdings and investment transactions.

Even after Bell has officially publicly released material information, it is important to be sure that sufficient time has elapsed to enable the information to be disseminated to investors. As a rule of thumb, you should not trade securities until the second business day following the public announcement. An employee must not attempt to “beat the market” by trading simultaneously with, or shortly after, the official release of public information.

Members of the board of directors and executives should consult the BCE Inc. and Bell Canada Insider Trading and Reporting Guidelines for additional information. A copy of these guidelines can be obtained from the Corporate Secretary’s Office.

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Can I use information I obtain by accident or overheard?

• No. Even when you obtain undisclosed material information by accident, such as by overhearing a discussion of a planned acquisition, you are prohibited by law from trading in securities of BCE Inc., Bell Canada or the target company. In addition, you cannot suggest to a spouse, near relative or friend that they trade in shares of BCE Inc., Bell Canada or the target company while in possession of such information as this would be considered tantamount to divulging that information to someone outside Bell for personal gain or the gain of someone else. Such securities could only be traded on the second business day after Bell or the company being acquired issues a press release publicly announcing the planned acquisition.

2.6.2 Short Sales, Calls and Puts

As a director or employee of Bell, you may not engage in the following activities with respect to BCE Inc.’s securities or the securities of any of its affiliates (such as Bell Canada): (a) short sale; (b) sale of a call option and (c) purchase of a put option.

“Short selling” means selling shares you do not currently own and borrowing a third party’s shares in order to make delivery, the whole in expectation that the shares will decrease in value when you will buy back the shares and return them to the owner. Such process may lead to undue speculation and abuse and is therefore prohibited.

Puts and calls may also lead to the same abuse and therefore similar restrictions apply to the sales of call options and purchases of put options in respect of securities of BCE Inc. and its affiliates. For the purposes hereof, a “call” can be defined as an option to demand delivery of a specified number or amount of securities at a fixed price within a specified time but does not include an option or right to acquire securities of BCE Inc. or its affiliates where such were granted by BCE Inc. or its affiliates (such as pursuant to BCE Inc.’s Long-Term Incentive (stock option) Programs). A “put” can be defined as an option to deliver a specified number or amount of securities at a fixed price within a specified time.

In summary, you cannot sell short securities of BCE Inc. or its affiliates, and you may not sell call options or buy put options over the same securities. You must exercise great caution in your trading in order to avoid inadvertent breaches of these restrictions.

2.7 Public Disclosure of Material Information

Only authorized executives can decide the timing and content of public disclosures regarding Bell. Examples include public filings with securities regulatory authorities or the issuance of news releases.

If you are not an authorized designated spokesperson, you must not respond under any circumstances (including on a “no-name” or “off the record” basis) to inquiries from, or voluntarily provide information to, the investment community or the media, unless specifically asked to do so by an authorized spokesperson.

Any inquiries need to be immediately referred to Bell’s Communications Department or Investor Relations Department. The list of authorized designated spokespersons can be found in Bell’s Disclosure Policy available on the Corporate Policies & Ethics intranet site.

2.8 Confidentiality of Customer and Employee Information

2.8.1 Customer Privacy

Bell has long been committed to maintaining the accuracy, confidentiality, security and privacy of customer information. It is essential that we protect the confidentiality of all non-public information entrusted to us by Bell or its customers, except when disclosure is authorized or legally mandated. Even seemingly mundane information might be of use to competitors, or harmful to Bell or its customers, if disclosed. Even unintentional disclosure can lead to identity theft or financial gain by third parties. Therefore, the

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best way to protect customer information is to limit access on a need-to-know basis. In addition, we must comply with the laws and regulations related to privacy that apply to Bell, including the Personal Information Protection and Electronic Documents Act and restrictions imposed by the CRTC.

Unless a customer provides explicit consent or disclosure is pursuant to a legal power such as a search warrant, all information kept by Bell about its customers is confidential and cannot be disclosed or used, directly or indirectly, except for business purposes. We may only use this information for the purposes for which it was collected and that the customer would reasonably expect.

Recording, releasing or disclosing private customer information for personal gain or the benefit of another will result in immediate discipline up to and including dismissal, and may include civil or criminal prosecution. This may also expose Bell to substantive reputational harm and financial liability.

Interception of Private Communications

Communications between Bell and a customer may be monitored for quality assurance purposes, with an appropriate advisory to the customer.

The unlawful interception of a private communication is prohibited under the Criminal Code. The content of a customer’s transmissions (including telephone and email) may not be monitored, nor may the content, nature and existence of telephone calls and data transmissions be released to third parties except as explicitly authorized by law.

Unintentional interceptions of a call may occur when providing service, doing repairs or when conducting quality control checks. In these instances, the employee must advise the persons on the call of the unintended interception and immediately disconnect from that call.

Business Customer or Supplier Information

Maintaining customer and supplier privacy is also crucial when dealing with contracts, proposals and quotations. We must be vigilant to not share business customer or supplier information - such as business plans, names of representatives or information of a sensitive nature - with other employees servicing a similar market segment (for example, the banking industry). By doing so, we may inadvertently divulge information about a business customer or supplier to that customer’s or supplier competitor. Also, unless a business customer or supplier provides explicit consent, we do not share information about business customers or suppliers with other affiliates or partners, agents or subsidiaries of our group, except with those affiliate or partners or agents or subsidiaries of a group, who are directly involved in the specific contract, proposals or quotations or a related transaction.

I am a customer service representative for the residential market. A caller identifying himself as the spouse of a wireless customer requests billing details for the spouse’s account, indicating that he looks after bill payments for the family. Should I provide the information?

• If the caller is not explicitly listed on the account as an authorized co-user, the information should not be provided. Account details, particularly for wireless accounts, can be very sensitive information and is often sought in the context of matrimonial disputes. Advise the caller to have the account holder of record contact Bell to have the spouse added to the account as an authorized co-user. This approach applies equally to all customer accounts, in all business units.

2.8.2 Employee Privacy

Bell has also long been committed to protecting the personal information of its employees which is collected only for purposes relevant to managing the employment relationship. The obligations described in the Personal Information

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Protection and Electronic Documents Act also apply to the collection, use, disclosure and protection of personal employee information.

Personal information means information, in any format, about an identifiable individual, but does not include the name, title or business address or telephone number of an employee. Employee personal information refers to those records like the personnel files and other documents collected and used to provide services or support such as pay or benefits information. Personal health information is held separately by the Disability Management Group.

All personal information is protected by security safeguards appropriate to the sensitivity of the information and may only be used for reasonable purposes relating to the management of the employment relationship or for other purposes as may be required by law. All employees holding personal employee information must handle it in accordance with privacy principles. Aside from applying normal safeguards (i.e. locked cabinets and desks), employees should avoid discussing personal employee information in public areas.

Notwithstanding the notion of employee personal information, there shall be no expectation of privacy for communications made through the use of Bell equipment or using Bell paid services or products (for example, e-mail, internet/intranet activities, voice mail, computer files, network), as well as workspaces (for example, desks, lockers, and vehicles).

Bell reserves the right to monitor or search any and all Bell property at any time, where it determines on reasonable grounds that this is required; for example:

• to evaluate and measure service quality
• in the interests of the safety and protection of employees or Bell
• to search for specific business information
• to comply with legal warrants or other obligations
• to conduct security investigations such as in the event Bell suspects an employee of fraud, theft, undeclared conflict of interest, violation of this code or other situation which may cause prejudice to an employee or Bell or its reputation.

Additional information is available through the Employee Privacy section of the Human Resources intranet site as well as in the Acceptable Use of Information Technology Resources Policy.

2.8.3 The Bell Privacy Policy

To support our commitment to privacy we have developed policies and a formal privacy code - the Bell Privacy Policy - which spell out the commitments of Bell, its employees and agents and the rights of customers and employees regarding personal information.

The Bell Privacy Ombudsman oversees compliance with these privacy policies and may be contacted at privacy@bell.ca.

The Bell Privacy Policy and other privacy-related documents are available by following the “privacy” link on www.bell.ca or on the Bellnet policies page Corporate Policies & Ethics.

2.9 Information Classification and Records Management

The purpose of the Information Management Policy and the Records Retention Schedule is to ensure that Bell’s information is properly classified so records are adequately protected, stored and shared to comply with legal requirements and business needs. The policy applies to all forms of records regardless of who has prepared them, regardless of the medium used (paper, electronic or other) and whether or not they reside on Bell’s premises, servers and infrastructure.

Employees are responsible for:

• ensuring compliance with business, legal and regulatory requirements with respect to record retention
• improving operational efficiencies, reducing space requirements and costs by eliminating unnecessary records
• ensuring the preservation and accessibility of relevant records to satisfy specific operating needs and in the event of potential or actual litigation or internal or

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external (including governmental) investigation

• ensuring information is kept for as long as required according to the Records Retention Schedule.

Confidential information is information about our business that must not be made publicly available. Confidential information includes information classified as Internal Use or Confidential, as well as information that has not been explicitly classified as Public. Some examples of information which must be safeguarded from disclosure include:

• marketing strategies, pricing, bids and proposals
• training material
• employee or customer personal information
• passwords and encryption keys
• undisclosed financial results
• pictures or recordings of confidential information or discussions
• any video, picture or recording taken on work premise or of Bell premises, which are permitted only with director level management approval. Furthermore, it is strictly prohibited to record any identifiable individual without the person’s knowledge and consent, except if such recording is for investigation purposes and authorized by Corporate Security.

Employees must also:

• not send confidential information to personal email accounts
• not store confidential information on portable storage devices including USB keys or external hard drives
• ensure confidential information is securely stored at all times
• not store confidential information, including pictures, on personal devices that have not been registered through the BYOD (bring your own device) process
• avoid discussing such information in public places (including by phone in taxis, trains and airplanes), with family members or friends or with business colleagues when conversations might be overheard
• report immediately unauthorized disclosure, transmission, misappropriation or misuse of confidential information to Bell’s National Incident Centre (NIC) at 1- 866-714-0911 or at cni-nic@bell.ca

Post Employment Obligations

Your obligation to protect Bell’s confidential information continues after the employment relationship ends. Upon termination of employment or contract, or reassignment, all employees must:

• return all copies of confidential information and documents, including electronic records, and all third party information entrusted to Bell
• continue to uphold the confidentiality of Bell confidential information and not use or disseminate any such information. This continuing obligation is particularly important in the case of a departing employee who subsequently works for one of Bell’s competitors or suppliers.

Preservation of Records under Legal Hold

Records subject to preservation under a “legal hold” must not be disposed of until the hold is lifted. Where a “legal hold” is in place, all owners of records that are subject to it must take positive steps to ensure the preservation of such records. Those record owners must also, prior to taking any steps that might affect the disposal of such records, such as re-imaging their computers or being “evergreened” to a new device, contact the Legal, Regulatory and Government Affairs Team (ediscovery.legal@bell.ca) to verify whether they can dispose of the records. Any employee unsure whether records are subject to a legal hold or unsure of the hold’s scope should contact the Legal, Regulatory and Government Affairs Team at ediscovery.legal@bell.ca.

When an employee, who owns records that are subject to a legal hold leaves Bell, the employee’s manager and Human Resources Consultant must ensure that these records are preserved.

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How do I tell if a document (paper or electronic) is confidential if it is not marked as such?

• You must begin by asking the person who issued the document (if known), as the originator is the person who must determine the security classification. If you can’t find the source of the information and the nature of the document does not make the classification obvious (such as information that has been made public), the document must be treated as confidential until the proper classification is determined.

2.10 Dealing with Customers and Suppliers

We achieve an ongoing competitive advantage by ensuring that our reputation for quality, service and integrity remains intact. Compete vigorously but fairly while complying with our legal and ethical obligations.

2.10.1 Customer Relations

Customers and customer service are at the core of our business. To succeed, we have to be honest, courteous, and respectful when dealing with our customers and their property whether visiting their home or place of business.

Our customers expect us to provide quality products and services, and be truthful when discussing our advantages and benefits. To maintain that trust we should:

• offer customers only those services which we are legally allowed to provide and that they want or need
• promote our products and services accurately even when up selling
• give customers the straight facts about their competitive choices
• guide customers into asking the right questions about their competitive options
• convince customers it’s to their advantage to stay with Bell – or come back from a competitor
• don’t offer to waive charges, cut special deals or grant discounts that are not authorized
• serve our Québec clients in the official language of their choice (French or English).

2.10.2 Supplier Relations - Reciprocity

Like many corporations, we purchase goods and services from thousands of suppliers, many of whom are also our customers.

While we quite naturally want to do business with our customers, and will take advantage of every opportunity to do so, we must keep in mind that this should not be done at the expense of price, quality and service. These criteria, rather than the simple fact a supplier is or is not our customer, should guide our purchasing decisions.

Reciprocity is an arrangement where a purchaser gives business to a supplier because that supplier is its customer for other products, in preference to another supplier. Reciprocity, whether it originates with the buyer or the seller, should be handled with utmost care for a number of financial, ethical and legal reasons.

For example, we may lose the opportunity to save money on our purchases if we choose suppliers solely because they are Bell customers and we may be accused of anticompetitive behaviour.

Under certain circumstances, we may, for strategic marketing reasons, develop and contract services exclusively with a given supplier. The Law Department must be consulted before such arrangements are established.

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Our department is organizing a meeting at a hotel. Due to the large size of our group, and the fact we don’t want to travel far, we’ve chosen a nearby hotel serviced by a competitor. Is this okay, or should we find a hotel that uses Bell services?

• It is not Bell policy to prohibit employees on company business from dealing with organizations that do not use Bell’s services. While we actively encourage everyone at Bell to do business with our customers, we must ensure that this is not done at the expense of price, quality and service.
• Although the hotel you’ve chosen is not a Bell customer, you were right to choose it if, in your judgment, it best meets the price-quality-service criteria you are looking for: the hotel is located close to your office, it can easily accommodate all the members of your department and, as a result, will enable your group to save both time and traveling expenses.

2.11 Dealing with Competitors

2.11.1 Treating Competitors with Respect

We welcome and encourage fair and open competition and we are committed to treating competitors with due respect. By doing so, we honour the competitive spirit that motivates us to perform at our best.

Behaving competitively means that we:

• do not portray a competitor to the public or to a customer in an inaccurate, misleading, disparaging or unfair manner or in a way contrary to laws that govern competitive business practices
• do not state as a fact our understanding of a competitor’s price information as that information may be out of date and incomplete
• exercise care when commenting publicly on such topics as a competitor’s financial situation, business practices, management, reliability or foreign ownership
• do not behave disrespectfully toward a customer who has decided to purchase a competitor’s products or services; rather we rigorously promote and provide high- quality service for any other product we may supply to this customer.

2.11.2 Obtaining Information about our Competitors

We have every right to gather information about the marketplace in which we operate through legal and ethical means. This includes information about our competitors, their products and services, technology, prices, advertising, and so on.

However, we do not engage in industrial espionage, buy proprietary information or induce employees or former employees of our competitors to disclose proprietary or confidential information of his/her current or former employer.

If you become aware that confidential or proprietary information about a competitor is circulating through Bell, you must not use such information and must immediately report it as indicated below.

Our business unit recently hired someone who was employed with a competing radio station. This person has confidential information which would be very valuable to us. Can we ask him to disclose this confidential information?

• Absolutely not. The new employee has an obligation to protect his/her former company’s confidential or proprietary information, just as you would be obliged to protect Bell’s confidential or proprietary information if you were to leave Bell. You must respect the employee’s personal integrity as well as his/her obligation to his/her former

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employer. Inducing an employee to disclose such confidential information is a violation of the Code.

If I become aware that this person is disclosing a competitor’s confidential information to Bell employees, should I report it?

• Yes you must report this fact to your immediate supervisor or through the Business Conduct Help Line at clearviewconnects.com or by calling 1-866-298-2942 – and you must not use such confidential information. Bell’s reputation could be significantly harmed by such disclosure and taking immediate steps to contain the confidential information is critical. Failure to report is a violation of the Code.

2.11.3 Agreements with Competitors

In many cases, agreements between competitors that restrict i) the price at which competitors can sell their products or services to customers, ii) the customers to whom competitors can sell, or iii) quantities that competitors will produce or market, are criminal offences and thus prohibited. To be clear, this prohibition does not address cases where two competitors are simply entering into an agreement as buyer and seller of each other, as is for instance common in our wholesale division.

The law provides certain exceptions and we may, for strategic reasons, sometimes take advantage of these exceptions and enter into specific agreements with competitors. For instance, the rules allow, under certain conditions, the submission of joint bids with competitors in response to requests for proposal, something which otherwise would appear to be a prohibited agreement on price. The Legal, Regulatory and Government Affairs Team must be consulted before arrangements with competitors are established.

2.11.4 When a Competitor is a Customer

When providing competitors with network facilities, broadcasting, access or other services, we cannot use information obtained as a result of that process in any manner which would give us an undue competitive advantage. This includes ensuring that this information is not made available to those within Bell or its affiliates who develop competitive service strategies. It also means that we must not disclose a customer’s choice of competitive carrier to anyone who does not clearly require the information to provide service to the customer.

2.12 Safeguarding Bell Assets

We all have a responsibility to be accountable for and safeguard Bell assets from loss, damage, theft, fraud, vandalism, sabotage or unauthorized use, copying, disclosure or disposal. The improper use and/or reporting of assets could seriously undermine Bell’s integrity, adversely affect our business strategies and decisions and weaken investor confidence. It may lead to disciplinary action up to and including dismissal. It could also constitute a criminal offence.

Bell’s assets include but are not limited to, offices and office equipment, inventory, computers, art, telephone and video equipment, vehicles, tools, materials, buildings, people, property, information, funds, communication networks, information systems, and intellectual property. The vehicle related policy and practice can be found on the Corporate Services intranet site and covers both the use of Bell-owned vehicles and the use of employee’s vehicle for Bell purposes.

Access to and use of these assets must be authorized, adequately controlled and based on business needs. We should not use Bell assets for personal purposes, except where this use has been authorized by your leader. Each of us must also take appropriate measures to prevent losses due to willful action by others, both outside and within Bell, which may result in personal injury, property damage, theft, fraud, loss, abuse or unauthorized access to physical or logical assets, and intellectual property (including data).

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Employees are expected to safeguard Bell assets and comply with Bell policies, including the Policy on Authorizations.

Bell policies, including the Policy on Authorizations, are available in the Corporate Policies & Ethics intranet site.

To best safeguard the tools and equipment used as part of their functions, employees must consult the Bell Corporate Security policies, available on the Corporate Policies & Ethics intranet site.

Loss or theft of Bell assets, property damage and malfunctioning doors and locks are to be reported to Bell’s National Incident Centre (NIC) at 1-866-714-0911 or at cni-nic@bell.ca.

2.12.1 Visible ID

All employees, consultants and contractors must wear a visible, valid, designated ID card at all times while on Bell premises. An ID card can only be used by the employee to whom it is issued. It cannot be shared or lent. Visitors must wear a visible, valid, designated visitor’s card while on Bell premises and must be accompanied by a Bell team member at all times. Employees should question anyone on Bell premises not wearing a visible Bell ID or visitor’s card.

2.12.2 Prevention of Fraud

What is Fraud?

• Fraud is defined as an intentional deception, falsification or misrepresentation made for personal gain, or to damage or create loss for the organization, customers or individuals. This can include the misuse or misapplication of the organization’s resources or assets to conduct internal fraud. This can also include actions taken towards business partners such as clients and service providers as well as false or inflated insurance claims presented to Manulife or any other insurance provider.

Successfully preventing fraud requires an ongoing commitment from all of us. This includes actively participating in the prevention, detection, and reporting of suspected fraud, whether committed by an internal or external party. As employees we will not engage, directly or indirectly, in bribery, kick-backs, account falsification, false claims, time fraud or any other fraudulent or corrupt business practices.

Fraudulent actions are not only unethical, but may also be a violation of law, Bell has a “zero tolerance” stance with regards to all confirmed fraud situations. If you are approached by anyone with an opportunity to engage in fraudulent activities, you must report the incident to your manager and Corporate Security or through the confidential Employee Help Line available at clearviewconnects.com or by calling 1 866 298 2942 (toll free).

2.12.3 Corporate Credit Cards and Bell Funds

We are personally responsible for funds, cash, cheques, postage, etc., over which we have control. Corporate credit cards are not to be used for personal cash withdrawals or purchases and other charge cards are to be used only for business purposes. We must also ensure that all expense vouchers, benefit claims and invoices are accurate and properly authorized.

Corporate policy regarding the use of corporate credit cards and corporate travel is detailed on the Travel and Expenses Management intranet site. We should, unless unavailable, use the services of suppliers with whom Bell has negotiated agreements (e.g. travel agents, airlines, car-rental agencies, taxi companies, hotels).

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2.12.4 Hiring Consultants or Contractors

Hiring of contractors, consultants or other external resources must follow the rules as outlined on the Contractors and Consultants Procurement intranet site and hiring of external resources must also comply with the principles and procedures of the Contractor Program Policy and the requirements of the relevant Bell Policies available on the Corporate Policies & Ethics intranet site, including the Personnel Security Policy. In addition, all contractors performing high-risk work must be pre-qualified to ensure all workers are competent, trained and compliant with the health and safety requirements of Bell, prior to conducting any work for Bell, as outlined in the Directive on contractor safety and high-risk services.

2.12.5 Electronic Procurement and Electronic Processing of Expense Reports

Bell electronically processes much of its procurement needs including employee expense reports and accounting for corporate credit card payments. All employee expense reports and credit card payments must be approved by a leader one level above the employee submitting the reports.

2.12.6 Business Books and Records

Bell’s books and records contain information essential to effective and efficient operations. They form the basis upon which key decisions about Bell are made by our executives, financial analysts, shareholders, investors, and regulators.

Because they are so crucial to Bell meeting its legal, regulatory and financial obligations, we must ensure that all documents, reports, plans and records falling under our responsibility are accurate and complete. We must also ensure that all transactions are properly authorized.

In preparing and maintaining our books and records, we must:

• adhere to all accepted accounting standards and practices, rules, regulations and controls applicable to us
• ensure that all entries are recorded accurately, on time, in the proper accounts, and are properly documented
• record all funds, assets and transactions; we may not establish any undisclosed or unrecorded fund or assets for any purpose
• keep books and records which reflect fairly, accurately and in reasonable detail Bell’s transactions, acquisitions and disposal of assets and other relevant activities
• sign only those documents we believe to be accurate and truthful
• restrict access to sensitive or confidential information (such as financial records and customer information) to ensure the information is not accidentally or intentionally disclosed, modified, misused or destroyed
• maintain internal control processes to ensure that Bell meets its book and record keeping obligations.

2.12.7 Standard Contracts and Agreements

If you are in a position to develop or sign contracts, you must take necessary steps to protect the interests of Bell by ensuring that only Bell standard form template contracts are used and, in the case of purchase agreements, the Procurement Policy is followed. All contracts must be reviewed by appropriate departments such as, Legal, Regulatory and Government Affairs, Procurement, Corporate Security, Corporate Responsibility & Environment, Health, Safety and Workplace, Risk Advisory Services and Insurance. Standard contracts must not be modified without prior approval of the Legal, Regulatory and Government Affairs Team.

2.12.8 Information Security

Computers and computer networks form the backbone of our business and operations infrastructure. For this reason, every effort must be made to protect Bell’s computer systems and associated software from the various threats to their security, such as accidental or deliberate destruction of data and equipment, interruption of service, disclosure of confidential information, theft and corruption.

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To maintain security:

• access to computer systems must only be granted to authorized users
• access codes and passwords must be kept confidential and cannot be shared with anyone including leaders, co-workers and support teams,
• when traveling with mobile devices that access or contain company data, you must comply with applicable Bell policies
• comply with all Information Security Policies and Directives
• follow Bell rules regarding the purchase and use of computer software
• guard against computer viruses that may damage Bell’s computer systems
• report computer security incidents, virus or worms to the Bell Customer Service Desk at 1-888-920-8888.
• report Bell branded phishing emails sent to your Bell office account as follows:
  1. From your email inbox, select the phishing email
  2. Press the Ctrl + Alt + F or for Mac Ctrl + Cmd + J keys and forward the email to phish@bell.ca
  3. Permanently delete the original and sent messages from Outlook.

For further information and references, visit the Corporate Security intranet site.

2.12.9 Intellectual Property

Intellectual property such as patents, inventions, copyrights, trade-marks, domain names, industrial designs and trade secrets are strategic assets of Bell and must not be disclosed to or used by others without first ensuring that appropriate legal safeguards are in place. Failure to do so could result in Bell losing rights in its intellectual property.

Intellectual property rights also reside in and protect know-how, business methods and processes, computer software, written materials (including paper or electronic form), graphics, photographs and audiovisual works, whether developed internally within Bell or obtained from others.

Every employee has a responsibility to preserve, protect and enhance the value of these assets.

Trade-marks, including Bell’s logo and its various trade names, are among Bell’s most valuable assets. When using them, employees must follow the Brand guidelines, and must immediately report any infringement or misuse of such trade-marks or trade names to the Brand and Identity team by sending an email to info.branding@bell.ca. In addition to protecting Bell’s intellectual property, we also have a responsibility to avoid infringing intellectual property rights of others, as detailed in the Intellectual Property Policy referred to below.

All intellectual property conceived or made in the course of our employment with Bell or which are within the scope of Bell’s business interests, are rightly the exclusive property of Bell. Each employee assigns to Bell the ownership of all intellectual property created in the course of their employment, and also waives in favour of Bell any moral rights they may have in such intellectual property. Employees are prohibited from applying for patents or other intellectual property registrations in regards to intellectual property that belongs to Bell, nor can Bell’s intellectual property be used for personal purposes or gain.

For additional information, please consult the Intellectual Property Policy.

2.12.10 Proper Use of Bell-Provided Internet Access and Other IT Resources

Access to the Internet is primarily provided for business purposes. However, accommodating employees’ development and awareness through personal use of Bell-provided Internet access is also encouraged.

Personal use of the Internet and e-mail must be reasonable, i.e. it must not impede or reduce an employee’s ability to perform his/her duties, diminish productivity or effectiveness at work or negatively impact Bell in any way. Abuse of Bell-provided Internet or e-mail may result in disciplinary action up to and including dismissal. The use of Internet and e-mail to conduct illegal activities is strictly prohibited and will lead to dismissal.

The law strictly prohibits the unlicensed use of software on computers (including tablets and smart phones). To obtain software licensed by

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Bell for business use visit the software page in My Telecom Warehouse. You must also verify and respect the manufacturer’s conditions of license or agreement under which the software was acquired. Copying software onto your Bell or personal computer may be a violation of the software company’s licensing agreement as well as copyright laws, and placing Bell at risk of prosecution for copyright infringement.

For further details, consult the Acceptable Use of Information Technology Resources Policy.

Any evidence of child pornography is to be immediately reported through the Internet child pornography reporting form.

My daughter has asked me if she can use my company laptop to do some research on the internet for a school project. Should I lend her my laptop?

No. To protect our networks, we can’t let anyone, even family members, use Bell equipment.

2.13 Social Media

Social networking sites like Facebook, Instagram, LinkedIn, Snapchat, Twitter and YouTube have all become increasingly effective channels for Bell to strengthen our brand and our connection with customers and the public. All team members are required to follow Bell’s Social Media Guidelines (available from the Corporate Policies and Ethics intranet site) to ensure we can maximize the value of social media while protecting and enhancing the reputation of Bell and our team. We expect our team members to respect the principles and values outlined in the Code while navigating the social media world.

As a general rule, always remember that you are responsible for what you say or post online. Never assume that anything you say or post is private on social media and other public websites. Any statement you make online may be perceived as representative of Bell company policy and may create unnecessary liability for you and the company.

No Bell team member is authorized to speak on behalf of Bell and its affiliates without prior approval. If you believe it is necessary for you to engage in social media on behalf of Bell, please contact the Social Media team (social.info@bell.ca), which will coordinate all requests for approval with Bell’s executive leadership team. For individuals authorized to participate in social media on behalf of Bell, any business records created by this activity will be managed in accordance with the Information Classification and Records Management Policy.

• Protecting confidential information: whether you are posting as an approved Bell spokesperson or for personal reasons, you can only disclose information that is in the public domain. You have an obligation to continue to protect Bell’s Confidential and Internal Use information as defined in the Information Management Policy. You have an obligation to protect confidential and personal information and may not post any comment that would include confidential information concerning our company, customers, suppliers or team members.
• Do not post online reviews of Bell products and services: “Astroturfing” is the term for online reviews of products and services that give the impression they have been made by independent consumers when in fact the person making them has a business interest in the product or service being reviewed. Employee discussion of our products or services online could be perceived as providing a biased or unrealistic opinion. This conduct may also raise legal issues and can have serious repercussions for you and for Bell. For all these reasons, Bell’s policy is that team members cannot rate or review any product or service owned by or associated with Bell or its affiliates on any public online service or site, including all social media platforms. That means, for example, that we cannot rate or review Bell products, services or apps on online review sites or Apple, Android, BlackBerry, or other app stores. It also means that we cannot comment on Bell products or

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services on social media sites such as Facebook, Twitter, LinkedIn Snapchat, YouTube or Instagram.

• Respect for our company and reputation: upholding Bell’s reputation is in the best interests of our entire team. Misleading, disparaging or untruthful comments about our company, products, services or team members can seriously undermine our brand and ability to support customers. We must also have respect for our competitors and must not portray a competitor to the public or to a customer in an inaccurate, misleading, disparaging or unfair manner. Don’t post comments or participate in online campaigns that could potentially jeopardize our reputation, including posting comments, reviews or ratings online about competitors’ products and services.

As with any company policy, violations may be serious and require a disciplinary action, up to and including termination of employment.

A complete copy of the Bell’s Social Media Guidelines is available from the Corporate Policies and Ethics intranet site. Additional related corporate policies, such as Bell’s Acceptable Use of Information Technology Resources Policy and Bell Media’s Social Media Policy for CTV News and on-air talent are available from the Corporate Policies and Ethics intranet site.

2.14 Work Environment

2.14.1 Mental Health

At Bell, we believe that the mental health of our team members is essential to achieving personal and organizational success and we are committed to leading by example in our own workplace by promoting mental health and supporting team members with a mental illness.

We expect every member of the Bell organization to take primary responsibility for their own health. Every employee also has a responsibility to contribute towards a workplace that promotes mental wellbeing.

Bell is committed to:

• supporting employees experiencing mental illness through our workplace practices
• understanding what factors contribute towards mental wellbeing at work by reviewing Bell’s mental health policy, employee feedback, government and legal requirements, and current best practices
• setting objectives that drive continuous improvement of our workplace mental health strategy and regularly evaluating our approach
• implementing or adapting policies and practices that support mental health in the workplace within the context of our corporate priorities and the evolution of our industry
• providing resources and training to educate all team members about mental health
• encouraging employees to take part in activities that contribute to their own mental health in the workplace.

To view the full policy statement, consult the Corporate Ethics and Policy intranet site at the following link: Corporate Policies and Ethics

Additional information on Mental Health in the Workplace, training and resources is available on the Human Resources intranet site at Mental Health and Wellness.

You can also contact the Workplace Health team for more information at workplacehealth@bell.ca.

2.14.2 Trust and Respect

Nothing is more basic to ethical behaviour than trust and respect. Upholding these values enables us to build and cultivate more meaningful, richer relationships with fellow team members, customers and the broader public, suppliers and shareholders. For this reason, we expect all our employees to respect their colleagues, team members and leaders.

We are committed to fostering a workplace which encourages open and honest communication, recognizes the intrinsic dignity and worth of all employees and values the diversity of team members, customers, suppliers and shareholders.

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Bell supports prevention by equipping employees and leaders with practical resources (Civility guide, Leader’s guide to managing conflict) available on the Respectful workplace ethics website.

2.14.3 Diversity and Employment Equity

Diversity is an unwavering respect for each other’s uniqueness, including, but not limited to: culture, ethnicity, gender, gender identity/expression, age, religion, disability, sexual orientation, education and experiences. By valuing our differences, we can create an inclusive work environment based on merit and fairness where all employees achieve their full potential.

Our Diversity, Human Rights and Accommodation policies provide the framework for supporting a diverse and inclusive workplace.

Employment equity is an important aspect of our diversity strategy. While diversity encompasses many different factors that make each of us unique, legislated employment equity programs focus on four designated groups: women, visible minorities, Aboriginal peoples and persons with disabilities. Bell is required to comply with the Employment Equity Act through workforce practices free of barriers to recruiting, retaining and promoting members of these designated groups. Ensuring equality in the workplace is not about hiring unqualified individuals but rather to ensure that the qualified members of the designated groups are given equal employment opportunities.

Employment equity and diversity programs also make business sense. A diverse workforce brings Bell closer to its customers. By becoming the supplier of choice to a diverse customer base and the employer of choice to our current and future employees, we further improve Bell’s chances of success.

Promotion of self identification through our online employment equity and diversity questionnaire, available in the Employment equity section of the Diversity intranet site, allows Bell to have an accurate assessment of representation within the four groups and allows for appropriate strategies and action plans to be developed in order to address any gaps. The information collected in the employment equity and diversity questionnaire is confidential.

In addition, Diversity training (Career Zone course L744) and Respect in the Workplace (also in Career Zone) training are available to help support a diverse and inclusive work environment. Information is available at the following link: Diversity and Human Rights.

Bell operates in both official languages, English and French, and complies with Québec laws requiring French to be the primary language used in workplaces in that province. Our Language Diversity Program provides training, tools and a language pairing program to support bilingualism throughout the organization. For more details, please see the Bell Language Policy.

2.14.4 Discrimination and Harassment

We provide a workplace free of any type of personal harassment, including sexual harassment, intimidation and violence and are committed to an environment in which all workers can work safely.

We prohibit all types of unlawful discrimination, including harassment, whether directed against an individual or group, including employees, customers, suppliers and shareholders. This specifically includes discrimination based on race, national or ethnic origin, aboriginal or indigenous status, language spoken, religion, age, sex (including pregnancy or childbirth), gender identity/expression, sexual orientation, marital status, family status, veteran status, physical or mental disability and conviction for which a pardon has been granted.

Harassment is defined as vexatious behaviour that is repetitive and hostile or unwanted that degrades, humiliates, embarrasses, affects or insults an employee’s dignity or integrity and that results in a harmful work environment for the employee. It may include:

• threats, intimidation and/or verbal abuse, unwelcome remarks or jokes
• unnecessary physical contact, such as touching, patting, pinching or punching
• displaying sexist, racist or other offensive pictures, posters, e-mails or screen displays

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• any other action that may reasonably be perceived as offensive or degrading.

Sexual harassment includes offensive or humiliating behaviour that is related to a person’s sex, as well as behaviour of a sexual nature that creates an intimidating, unwelcome, hostile or offensive work environment, or that could reasonably be thought to put sexual conditions on a person’s job or employment opportunities. A few examples are:

• questions and discussions about a person’s sexual life
• commenting on someone’s sexual attractiveness or unattractiveness
• displaying posters, calendars and/or screen displays of a sexual nature
• writing notes, letters or e-mails of a sexually suggestive nature.

An employee who believes that he or she is being unlawfully discriminated against should tell the person to stop immediately. If there is imminent danger the matter should be reported to the police and/or emergency services as appropriate (dial 911) and then to Corporate Security (dial 1-866-714-0911): If the behaviour or action persists, the employee should report the matter to his or her manager or to a more senior manager in the organization. Unionized employees may elect to contact their union representative; management employees may consult with their Human Resources representative.

2.14.5 Workplace Violence Prevention

We all have a right to work in an environment free from violence and threats. Bell prohibits all acts of physical, verbal or written aggression or violence. This applies whether the aggression is committed by one employee against another, or against anyone else an employee comes in contact with when carrying out his or her responsibilities.

It’s up to each employee to report any act, or threatened act, of violence to a manager or to Corporate Security. In situations of imminent danger call the police or local emergency services and then Corporate Security. If the danger seems less imminent, take note of the facts: Who was involved?

Where and when did the incident take place? Were there any witnesses? Then report the incident to Corporate Security. Corrective action will ensue as required.

Bell promotes a “zero tolerance” approach under which violence of any kind is not tolerated and may result in disciplinary measures up to and including termination of employment.

Bell’s policy Preventing Violence in the Workplace is available on the Human Resources intranet site. In addition, mandatory violence prevention training (Career Zone course L1027) must be taken every three years.

2.14.6 Health and Safety

At Bell, the health and safety of our team members and external stakeholders is integral to the success of our strategic imperatives, and as such, Bell embraces this commitment.

Our Obligations

• To provide a safe and healthy workplace which is essential to achieving success in all areas of our business
• Under the law, employees and leaders at all levels of the company are personally accountable to ensure proper health and safety practices are in place

Your Role

As a Bell team member, you assume the primary responsibility for your own health and safety and to uphold safe work practices at all times to prevent injuries. You have a role to play in supporting our Health and Safety Policy by:

• Upholding safe work practices at all times to prevent injuries.
• Identifying and reporting health & safety hazards and incidents via the established reporting processes and participating in associated investigations when required
• Actively participating in health and safety training

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• Cooperating as required to meet or exceed health & safety laws and regulations that apply to us

Our Health & Safety Policy Statement

At Bell, the health and safety of our team members and external stakeholders, including contractors, customers, and the general public, is an absolute priority. We also believe that a safe and healthy workplace is essential to achieving organization success, in all areas of our business. To support our commitment to team members, Bell will:

• ensure due diligence in its approach to meet or exceed all applicable workplace health & safety laws and regulations
• identify, analyze and address health & safety hazards
• establish processes and practices to support a safe workplace and prevent injuries
• investigate health & safety incidents
• provide employee training to ensure adequate health & safety knowledge and competency
• work in consultation with joint health & safety committees to uphold and evolve safe work practices and resolve any issues
• set objectives to continuously improve our safety performance
• regularly evaluate, monitor and report health & safety performance.

In support of our commitment to external partners and stakeholders, Bell will:

• require contractors, sub-contractors and third parties that access Bell sites accessing Bell sites to demonstrate due diligence at all times by having appropriate training, following contractual requirements, working safely and not exposing themselves or Bell employees to health & safety risks.
• cooperate with government and other stakeholders on health & safety matters.

Additional information on Health and safety programs and procedures is available on the Health and Safety intranet site under Human Resources, Workplace and Safety.

You can also contact the Corporate Health and Safety team for more information at Info.ss-hs@bell.ca.

2.14.7 Reasonable Accommodation

Accommodation is part of a broader principle - that our society should be structured and designed for inclusiveness.

An accommodation is considered reasonable if it does not result in undue hardship, such as: significant impact on business operations, or risk to the health and safety of the employee concerned or any other person. Examples of accommodation can include physical or technical alterations to an employee’s workspace (work station height, non-standard computer monitor, telephone with amplifier or headset) and modification of work duties or conditions.

To make an accommodation request or to obtain information on the process of how requests are treated, visit the Human rights website.

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2.14.8 Emergency Management

Employees may encounter various emergency situations that can directly affect them or Bell. To this end, Bell is committed to a level of preparedness and planning that is designed to “protect life and property” and to ensure a rapid return to providing service to our customers. Through the development and implementation of emergency response procedures and the “Be Ready” training modules, employees and business units will be ready to respond during emergencies. All employees must follow the “Be Ready” on line training every two years.

In the event of a life-threatening emergency first make sure you are safe, then call 911 (or local emergency service). All emergencies and emergency conditions including unplanned evacuations, or situations significantly impairing or potentially impacting service (such as but not limited to floods, major fires, power outages, health and safety emergencies) occurring on or in proximity to Bell facilities are to be reported to Bell’s National Incident Centre (NIC) at 1-866-714-0911 or cni-nic@bell.ca. For information on Bell’s Emergency Management procedures, consult the Corporate Security intranet site.

Evidence of serious criminal activity such as terrorism, found on Bell or customer premises or Bell systems, are to be reported to Bell’s National Incident Centre (NIC) at 1-866-714-0911, unless involving an imminent threat where 911 must be called.

Significant facility or utility interruptions, surveillance, control systems or any service failures that impact our network are to be reported to the National Network Operations Centre (NNOC) at 1-888-570-1091.

2.14.9 Business Continuity

Bell recognizes the importance of its infrastructure and services for its employees and customers. To that end, all business unit leaders and team members must ensure they have appropriate business continuity plans and disaster recovery plans in order to be ready to react to any type of events that may impair our activities.

2.14.10 Alcohol, Drugs and Other Substances

We are required to be fit at all times to perform all assigned duties. While at work, we must not be impaired by the use of alcohol, medication, or illicit drugs.

The use, sale, unlawful possession, manufacture or distribution of alcohol and illicit drugs or non-prescribed medications for which a prescription is legally required, whether on Bell work premises or other work locations, is strictly prohibited.

Employees have the responsibility to determine any potential adverse effects when using prescribed or over-the-counter medications with the assistance of their doctor or pharmacist. Intentional misuse of prescribed or over-the-counter medications is strictly prohibited.

For further information consult the Alcohol and Drug Policy on the Human Resources intranet site.

2.14.11 Involvement in a Legal Matter

If you are involved in a legal matter or police case you must immediately inform your manager if this involvement has the potential to affect your ability to perform your job fully and competently. Loss of a driver’s license, for example, must be reported immediately if the affected employee is required to drive a Bell vehicle.

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2.15 Journalistic Independence

Bell is committed to upholding principles of journalistic independence. The Journalistic Independence Policy governs CTV News editorial decision making. CTV News refers to all applicable news divisions owned by Bell, including radio. CTV News is solely responsible for all news reporting decisions and for ensuring the integrity of its news operations. Compliance with the Journalistic Independence Policy is mandatory for all Bell employees. Failure to comply with the policy will be considered a breach of the Code of Conduct and may result in disciplinary action up to and including termination of employment.

An appropriate framework of independence between CTV News and Bell is a fundamental safeguard to ensure that news is covered in a fair, accurate, balanced and unbiased manner. Any interference, whether direct or indirect, actual or perceived, undermines the principles of news independence and can erode the credibility of CTV News which is critical to maintaining the trust of audiences.

Bell fully endorses the independence of CTV News and requires that all employees execute their day-to-day job responsibilities in a manner that respects this core value.

From time to time, news stories directly or indirectly concerning Bell, or of commercial interest to Bell, will be reported by CTV News. The appropriate CTV News editorial team is solely responsible for determining how to cover any such story, with full discretion and control, and without interference. No Bell employee will take any action that will impact the standards of fairness, accuracy, balance and independence that must be applied to any such news story.

In the normal course of business, representatives of Bell may offer ideas for news coverage to the CTV News team, as they would with any other news organization. In any such instances, Bell representatives must recognize that the material offered must be considered newsworthy and relevant to the audience by the applicable CTV News division’s editorial team before receiving coverage. The news team will decide whether to proceed with a story, how it will be covered, and the extent of any coverage, with full and absolute discretion and control, and without direct or indirect interference in the decision making process.

At all times, this Code and other relevant BCE policies apply to Bell Media, including CTV News management and staff. As a result, in accordance with this Code and BCE’s Disclosure Policy, BCE’s communications department is responsible for addressing all queries from other media outlets regarding Bell Media and its divisions and properties, including CTV News. Furthermore, (i) non-public BCE information of which CTV News management or staff have knowledge in a capacity other than CTV News reporting or (ii) information in the possession of Bell Media in its capacity as an employer, must remain confidential and be treated in accordance with the Code and Bell’s Information Management Policy.

You are a member of the CTV News team and you receive a request from the Bell Residential Services team to profile an item they believe is newsworthy on CP24. What should you do?

• Remember that it is acceptable for Bell employees to suggest story ideas, with respect for the CTV News team’s full authority to decide on news coverage
• If you decide the item is not newsworthy, but they persist or escalate the matter, you should discuss it with your supervisor to confirm your position and obtain support
• Ultimately, you can engage the President of CTV News, who is the final arbiter in matters relating to independent news reporting and has the authority to take steps to ensure the situation is resolved in an appropriate manner in accordance with the Policy on Journalistic Independence
• Should you consider that the matter is not handled in accordance with the policy, you can report your concerns through the Business Conduct Help Line

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All news editorial decision making resides with the CTV News team with absolute and final privilege belonging to the President, CTV News. The CTV News teams will be responsible for the development of applicable editorial and reporting policies, including news policies on attribution, sources, and disclosure of conflicts.

If at any time the President, CTV News has any concerns about journalistic independence or compliance with the Policy that cannot be resolved through normal functional reporting channels in line with the principles of the Policy, the President, CTV News can address said matters with BCE’s Chief Executive Officer and/or the Chair of the BCE Audit Committee.

If you have any concerns regarding compliance with the Journalistic Independence Policy, such concerns shall be communicated to your immediate manager and/or the President, CTV News. However, if such reporting is either inappropriate, does not provide the necessary level of confidentiality, or as you otherwise prefer, the reportable activity should be reported to the Business Conduct Help Line or to the BCE Chief Legal & Regulatory Officer and EVP, Corporate Development or equivalent position.

To view the full Journalistic Independence Policy, consult the Corporate Ethics and Policy intranet site at the following link: Corporate Policies and Ethics.

The Business Conduct Help Line may be reached 24/7 by calling 1 866 298 2942 or by visiting clearviewconnects.com.

Members of the public should call Bell Canada’s Complaint and Concerns Line at 1-866-317-3382 with any concerns about Bell activities.

2.16 Protecting the Environment

Bell believes that environmental protection is an integral part of doing business. We strive to minimize, through a continuous improvement process, the impact that some of our activities, products or services may have on the environment. To that end, every employee is responsible to comply with our policies.

In support of this commitment, we will:

• exercise due diligence to meet or exceed the requirements of all applicable legislation and other prescribed requirements
• prevent, control and reduce releases into the environment and correct in a timely manner problem situations which cannot be prevented
• promote and support cost-effective resource use and waste minimization initiatives
• deal with suppliers who seek to minimize their environmental impacts
• develop and market services providing people and organizations with innovative solutions that take into account their environmental challenges
• participate with governments, businesses, the public and relevant interest groups to advance environmental protection
• communicate our environmental initiatives and performance to stakeholders on a regular basis
• ensure that employees adhere to the Environmental policy and understand their responsibilities in putting it into practice.

The Corporate Responsibility & Environment (CR&E) group has developed a series of policies, programs, procedures and guidelines to support employees in their environmental duties. These documents are available through the Environmental Management section of Bellnet

Environmental training is mandatory for all employees directly involved in managing any of the following environmental issues: incidents, manhole effluents, network impacts, residual materials (hazardous and non-hazardous), treated wood poles, petroleum products or ozone depleting substances. Training must be completed before the employee is assigned to operational duties.

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All environmental incidents must be reported without delay to the Enviro-Line at 1-877-235-5368, available on a 24/7 basis, or at enviroline@bell.ca.

For inquiries, concerns or for information about environmental training, contact your Environmental Coordinator or the appropriate CR&E team member.

3 ROLES AND RESPONSIBILITIES

3.1 Business Unit Responsibility

Managers are required to ensure that all employees have access to the Code either on-line or in a paper format if required, and that they know, understand and comply with its provisions. To this end, they should ensure that all employees review the Code annually and comply with the annual review process outlined in this Code.

3.2 Board of Directors, Corporate Governance Committee and Audit Committee

The Board of Directors, with the recommendation of the Corporate Governance Committee, has the authority to approve this policy. In addition, the Corporate Secretary’s Office in conjunction with Internal Audit, report quarterly to the Audit Committee on the number and scope of issues brought via the Business Conduct Help Line.

3.3 Corporate Secretary’s Office

The Corporate Secretary’s Office has the responsibility of administering the Code and managing the Business Conduct Help Line, securing annual certification of all executives and members of the Board of Directors under the Code, addressing conflict of interest issues and ensuring compliance by all Business Units.

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APPENDICES

Supporting Procedures

The Code of Business Conduct annual review is included in the annual performance process. These procedures are located in the Career Zone intranet site under Objective Performance.

Attachments

Attachment 1A	Certification of Directors and Executives under the Code of Business Conduct
Attachment 2A	Form BC 3684 – Employee Annual Record of Review
Attachment 2B	Form BC 3684A – Disclosure of Conflict of Interest or Potential Conflict of Interest
Attachment 3	Additional Resources

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Attachment 1A

CERTIFICATION OF DIRECTORS AND EXECUTIVE
UNDER THE CODE OF BUSINESS CONDUCT

The Boards of Directors of BCE Inc. and Bell Canada (in each case, the “Company”) and our shareholders, expect all Directors and executives of the Company to follow the highest possible standards of honest and ethical conduct and to encourage and promote a culture in which ethical business conduct is recognized, valued and exemplified.

Certification

I certify that I have reviewed, understand and follow the Bell Canada Code of Business Conduct (the “Code”).

In addition, I support the setting of standards needed to discourage wrongdoing and to promote:

• honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships,
• full, fair, accurate and timely disclosure in reports and documents that the Company files with, or submits to, securities regulators and in other public communications made by the Company, in accordance with the Disclosure Policy,
• compliance with laws, rules and regulations of federal, provincial, state or local governments, and other relevant private and public regulatory agencies in all jurisdictions in which the Company operates,
• prompt reporting of all material violations of the Code to the Chair of the Audit Committee of the Board of Directors of the Company.

To the best of my knowledge and ability, I will act in good faith, responsibly, with due care, competence and diligence, without misrepresenting material facts or allowing my independent judgment to be compromised.

I acknowledge that I am accountable for following the Code and the responsibilities I have under it. I also acknowledge that complying with the Code is a condition of my employment. If I do not comply with it or applicable laws, rules or regulations, I may be subject to disciplinary measures, which could include dismissal from the Company.

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Attachment 2A Form BC 3684

EMPLOYEE ANNUAL RECORD OF REVIEW

Note to immediate manager: If this form is completed in paper format, please file original in employee’s personnel file.

Policy on conflict of interest

Employees owe their first business allegiance to Bell, and therefore they must remain free of interests or relationships which are harmful or detrimental to Bell’s best interests. Employees should avoid not only a real conflict of interest, but also the appearance of one which could tarnish their own or Bell’s image. Even though it is not always possible to avoid relationships that could place you in a position of potential conflict, it is important to inform your manager and avoid actions or decisions that would conflict with Bell’s interests.

Conflict of interest can lead to disciplinary action, even to dismissal and/or prosecution. If you are in doubt, you should discuss your specific situation with your manager, who will then advise you as to the position of Bell with respect to the matter.

Annual certification

I have reviewed, fully understand and follow Bell Canada’s “Code of Business Conduct” including the section on Conflict of Interest. I have reported immediately to my manager and through the annual review process any relationship or other circumstances that do or could place me in conflict with the interests of Bell. Any new situations will be reported as they occur. I hereby certify that I have no real or potential conflict of interest, except what is disclosed through the annual review process.

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Attachment 2B Form BC 3684A

DISCLOSURE OF CONFLICT OF INTEREST
OR POTENTIAL CONFLICT OF INTEREST

Note to immediate manager: If this form is completed in paper format, please file original in employee’s personnel file. A copy should also be sent to the Corporate Secretary’s Office at corporate.secretariat@bell.ca.

Employee
Family name	Given names	Employee number

I am directly or indirectly involved in other business or employment, which may give rise to or is at present in conflict with, or potential conflict with, the best interests of Bell:

I have direct or indirect investment, business involvements or relationships, which may give rise to or is at present in conflict with, or potential conflict with, the best interests of Bell:

I have, in the past 2 years, been employed or otherwise commercially involved in endeavours or companies which are in competition with Bell Canada and its affiliated companies (e.g.: Rogers, Telus, Videotron, Cogeco, etc.):

I am currently or was recently bound by restrictive covenants such as non-competition or non-solicitation restrictions:

Other:

For employees who declare a conflict due to past employment by a competitor: I understand that in my previous employment or commercial involvement with a competitor of Bell Canada and its affiliated companies I may have become aware of or given access to undisclosed confidential or proprietary information of my previous employer. As such, unless this information has been publicly disclosed or otherwise available in the marketplace, I am not to share such information. I also acknowledge that I have returned to my previous employer all property belonging to my previous employer including any confidential or proprietary information and documents provided to me including any third party information that was entrusted to me.

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Attachment 3

ADDITIONAL RESOURCES

If you have any questions regarding the issues raised in this document or any questions on the Code, speak to your manager or use the Business Conduct Help Line at clearviewconnects.com or by calling 1-866-298-2942 (toll free).

If you wish to report any unethical or illegal behaviour such as corporate fraud, or to raise any concerns regarding Bell’s accounting, internal accounting controls or auditing matters, you may report the matter to your manager or use the Business Conduct Help Line at clearviewconnects.com or by calling 1-866-298-2942 (toll free).

You may also use the following resources:

• Human resources intranet site
• Corporate Security intranet site:
  • life-threatening emergencies: call 911
  • loss or theft of Bell assets, internal fraud, criminal activity, property damage, unauthorized disclosure of confidential information, known failures in security safeguards, malfunctioning doors and locks, emergency response system (non-life threatening emergencies), emergency conditions and service impacting situations are to be reported to Bell’s National Incident Centre (NIC) at 1-866-714-0911 or at cni-nic@bell.ca
  • computer security incidents, virus, worms, spam or phishing using Bell’s name, any other computer or data network attacks, weaknesses in security systems, and unexplained systems changes are to be reported to 1-888-920-8888
  • significant facility or utility interruptions, surveillance, control systems or any service failures that impact our telecommunications networks are to be reported on 1-888-570- 1091
• Corporate Responsibility at 1-877-235-5368 or at responsibility@bell.ca.
• Enviro-Line Bell (environmental issues) at 1-877-235-5368
• Branding at info.branding@bell.ca
• Corporate Secretary’s Office intranet site or at (514) 786-8424
• Occupational Health, Safety and Workplace at (514) 870-5848 or at Info.ss-hs@bell.ca
• Bell Privacy Office for customer related privacy issues at privacy@bell.ca or for additional privacy related information, visit bell.ca
• Information on privacy in the workplace for employees is available on the Privacy intranet site or at:
  • English: privacy.coordinator@bell.ca
  • French: coord.rens.pers@bell.ca

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POLICY OR PRACTICE DETAILS

Issuing BU	Law & Regulatory Department
Policy sponsor	Chief Legal & Regulatory Officer and Executive Vice-President, Corporate Development
Policy owner	Corporate Secretary’s Office
Primary contact	Corporate Secretary’s Office
Required approvals	Board of Directors, Corporate Governance Committee, Corporate Secretary
First Release	1995
Review cycle	Annually

Required Policy or Practice management elements checklist

Monitoring compliance processes defined	Yes
Communication plan complete	Yes
Communication materials complete	Yes
Training plan complete	Yes

Revision history

Date	Change owner	Changed by	Description
August 2012	Alain Dussault	Alain Dussault	Annual update
August 2013	Alain Dussault	Alain Dussault	Annual update
August 2014	Michel Lalande	Michel Lalande	Annual update
June 2015	Mirko Bibic	Mirko Bibic	Update
August 2015	Michel Lalande	Michel Lalande	Annual update
August 2016	Michel Lalande	Michel Lalande	Annual update
August 2017	Michel Lalande	Michel Lalande	Annual Update
August 2018	Michel Lalande	Miguel Baz	Annual Update

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XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2018 shares
Document and Entity Information [Abstract]
Entity Registrant Name	BCE INC
Entity Central Index Key	0000718940
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Type	6-K
Document Fiscal Period Focus	Q2
Entity Common Stock, Shares Outstanding (in shares)	897,993,230
Amendment Flag	false

XML

Consolidated income statements - CAD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Profit or loss [abstract]
Operating revenues	$ 5,786	$ 5,688	$ 11,376	$ 11,024
Operating costs	(3,356)	(3,306)	(6,692)	(6,476)
Severance, acquisition and other costs	(24)	(36)	(24)	(120)
Depreciation	(787)	(767)	(1,567)	(1,491)
Amortization	(221)	(210)	(433)	(395)
Finance costs
Interest expense	(246)	(238)	(486)	(472)
Interest on post-employment benefit obligations	(17)	(18)	(34)	(36)
Other (expense) income	(88)	(1)	(149)	16
Income taxes	(292)	(298)	(527)	(548)
Net earnings	755	814	1,464	1,502
Net earnings attributable to:
Common shareholders	704	765	1,365	1,407
Preferred shareholders	35	32	71	63
Non-controlling interest	$ 16	$ 17	$ 28	$ 32
Earnings per share [abstract]
Net earnings per common share - basic and diluted (in cad per share)	$ 0.79	$ 0.85	$ 1.52	$ 1.58
Average number of common shares outstanding - basic (millions) (in shares)	898.0	900.1	899.1	888.0

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Consolidated statements of comprehensive income - CAD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of comprehensive income [abstract]
Net earnings		$ 755	$ 814	$ 1,464	$ 1,502
Items that will be subsequently reclassified to net earnings
Net change in value of derivatives designated as cash flow hedges, net of income taxes of ($2) million and $9 million for the three months ended June 30, 2018 and 2017, respectively, and ($5) million and $12 million for the six months ended June 30, 2018 and 2017, respectively (1)	[1]	7	(30)	14	(39)
Items that will not be reclassified to net earnings
Actuarial gains (losses) on post-employment benefit plans, net of income taxes of ($136) million and $95 million for the three months ended June 30, 2018 and 2017, respectively, and ($94) million and $214 million for the six months ended June 30, 2018 and 2017, respectively (2)	[2]	366	(256)	254	(579)
Net change in value of derivatives designated as cash flow hedges, net of income taxes of ($6) million and nil for the three months ended June 30, 2018 and 2017, respectively, and ($13) million and nil for the six months ended June 30, 2018 and 2017, respectively (1)	[1]	16	0	35	0
Other comprehensive income (loss)		389	(286)	303	(618)
Total comprehensive income		1,144	528	1,767	884
Total comprehensive income attributable to:
Common shareholders		1,091	479	1,665	789
Preferred shareholders		35	32	71	63
Non-controlling interest		$ 18	$ 17	$ 31	$ 32

[1] Amounts relating to the net change in value of derivatives for the three and six month periods ended June 30, 2017 have not been restated, in accordance with the transition requirements upon adoption of IFRS 9 - Financial Instruments on January 1, 2018. See Note 2, Basis of presentation and significant accounting policies for further details.

[2] The discount rate used to value our post-employment benefit obligations at June 30, 2018 was 3.7% compared to 3.6% at March 31, 2018 and December 31, 2017. The discount rate used to value our post-employment benefit obligations at June 30, 2017 was 3.6% compared to 3.8% at March 31, 2017 and 4.0% at December 31, 2016.

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Consolidated statements of comprehensive income (Parenthetical) - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Statement of comprehensive income [abstract]
Actuarial assumption of discount rates	3.70%	3.60%	3.70%	3.60%	3.60%	3.60%	3.80%	4.00%
Income tax relating to cash flow hedges	$ (2)	$ 9	$ (5)	$ 12
Income tax relating to actuarial (losses) gains of defined benefit plans	(136)	95	(94)	214
Income tax relating to changes in fair value of financial liability attributable to change in credit risk of liability of other comprehensive income	$ (6)	$ 0	$ (13)	$ 0

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Consolidated statements of financial position - CAD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Current assets
Cash	$ 254	$ 442
Cash equivalents	136	183
Trade and other receivables	2,932	3,129
Inventory	436	380
Contract assets	856	832
Contract costs	345	350
Prepaid expenses	376	217
Other current assets	222	122
Total current assets	5,557	5,655
Non-current assets
Contract assets	414	431
Contract costs	287	286
Property, plant and equipment	24,392	24,029
Intangible assets	13,407	13,258
Deferred tax assets	156	144
Investments in associates and joint ventures	803	814
Other non-current assets	975	757
Goodwill	10,568	10,428
Total non-current assets	51,002	50,147
Total assets	56,559	55,802
Current liabilities
Trade payables and other liabilities	3,603	3,875
Contract liabilities	687	693
Interest payable	177	168
Dividends payable	701	678
Current tax liabilities	148	140
Debt due within one year	5,732	5,178
Total current liabilities	11,048	10,732
Non-current liabilities
Contract liabilities	196	201
Long-term debt	18,367	18,215
Deferred tax liabilities	3,139	2,870
Post-employment benefit obligations	1,987	2,108
Other non-current liabilities	1,098	1,051
Total non-current liabilities	24,787	24,445
Total liabilities	35,835	35,177
EQUITY
Contributed surplus	1,151	1,162
Accumulated other comprehensive income (loss)	34	(17)
Deficit	(4,811)	(4,938)
Total equity attributable to BCE shareholders	20,405	20,302
Non-controlling interest	319	323
Total equity	20,724	20,625
Equity and liabilities	56,559	55,802
Preferred shares
EQUITY
Issued capital	4,004	4,004
Common shares
EQUITY
Issued capital	$ 20,027	$ 20,091

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Consolidated statements of changes in equity - CAD ($) $ in Millions	Total	SHARES ISSUED PREFERRED SHARES	SHARES ISSUED COMMON SHARES	CONTRI-BUTED SURPLUS	ACCUMU-LATED OTHER COMPRE-HENSIVE (LOSS) INCOME	DEFICIT	TOTAL	NON-CONTROL-LING INTEREST
Beginning Balance at Dec. 31, 2016	$ 18,916	$ 4,004	$ 18,370	$ 1,160	$ 46	$ (4,978)	$ 18,602	$ 314
Net earnings	1,502					1,470	1,470	32
Other comprehensive income (loss)	(618)				(39)	(579)	(618)
Total comprehensive income	884				(39)	891	852	32
Common shares issued under employee stock option plan	88		93	(5)			88
Common shares issued under employee savings plan	5		5				5
Other share-based compensation	(27)			(10)		(17)	(27)
Common shares issued for the acquisition of subsidiary	1,594		1,594				1,594
Dividends declared on BCE common and preferred shares	(1,334)					(1,334)	(1,334)
Dividends declared by subsidiaries to non-controlling interest	(22)							(22)
Ending Balance at Jun. 30, 2017	20,104	4,004	20,062	1,145	7	(5,438)	19,780	324
Beginning Balance (2017 as previously reported) at Dec. 31, 2017	20,625	4,004	20,091	1,162	(17)	(4,938)	20,302	323
Beginning Balance at Dec. 31, 2017	20,625
Net earnings	1,464					1,436	1,436	28
Other comprehensive income (loss)	303				46	254	300	3
Total comprehensive income	1,767				46	1,690	1,736	31
Common shares issued under employee stock option plan	4		4				4
Other share-based compensation	(31)			(8)		(23)	(31)
Repurchase of common shares	(175)		(69)	(3)		(103)	(175)
Common shares issued for the acquisition of subsidiary	1		1				1
Dividends declared on BCE common and preferred shares	(1,427)					(1,427)	(1,427)
Dividends declared by subsidiaries to non-controlling interest	(3)							(3)
Settlement of cash flow hedges transferred to the cost basis of hedged items	5				5		5
Return of capital to non-controlling interest	(41)					(6)	(6)	(35)
Other	3							3
Ending Balance at Jun. 30, 2018	$ 20,724	$ 4,004	$ 20,027	$ 1,151	$ 34	$ (4,811)	$ 20,405	$ 319

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Consolidated statements of cash flows - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities
Net earnings	$ 755	$ 814	$ 1,464	$ 1,502
Adjustments to reconcile net earnings to cash flows from operating activities
Severance, acquisition and other costs	24	36	24	120
Depreciation and amortization	1,008	977	2,000	1,886
Post-employment benefit plans cost	80	82	170	150
Net interest expense	243	235	481	465
Losses on investments	0	0	0	12
Income taxes	292	298	527	548
Contributions to post-employment benefit plans	(74)	(86)	(161)	(174)
Payments under other post-employment benefit plans	(19)	(19)	(38)	(38)
Severance and other costs paid	(33)	(40)	(68)	(81)
Interest paid	(252)	(249)	(488)	(472)
Income taxes paid (net of refunds)	(113)	(114)	(397)	(402)
Acquisition and other costs paid	(28)	(21)	(46)	(104)
Net change in operating assets and liabilities	174	241	85	55
Cash flows from operating activities	2,057	2,154	3,553	3,467
Cash flows used in investing activities
Capital expenditures	(1,056)	(1,042)	(1,987)	(1,894)
Business acquisitions	(21)	0	(244)	(1,635)
Disposition of intangibles and other assets	0	323	68	323
Acquisition of spectrum licences	0	0	(36)	0
Other investing activities	(20)	(5)	(55)	(14)
Cash flows used in investing activities	(1,097)	(724)	(2,254)	(3,220)
Cash flows used in financing activities
Increase in notes payable	97	127	40	435
Decrease in securitized trade receivables	(2)	(360)	(2)	(10)
Issue of long-term debt	0	0	1,466	1,496
Repayment of long-term debt	(1,068)	(472)	(1,241)	(1,076)
Issue of common shares	1	41	2	89
Repurchase of shares for settlement of share-based payments	(49)	(45)	(137)	(141)
Repurchase of common shares	0	0	(175)	0
Cash dividends paid on common shares	(678)	(626)	(1,324)	(1,220)
Cash dividends paid on preferred shares	(35)	(30)	(68)	(73)
Cash dividends paid by subsidiaries to non-controlling interest	0	(9)	(13)	(21)
Return of capital to non-controlling interest	(12)	0	(41)	0
Other financing activities	(23)	(9)	(41)	(22)
Cash flows used in financing activities	(1,769)	(1,383)	(1,534)	(543)
Net decrease in cash	(421)	(19)	(188)	(183)
Cash at beginning of period	675	439	442	603
Cash at end of period	254	420	254	420
Net (decrease) increase in cash equivalents	(388)	66	(47)	(113)
Cash equivalents at beginning of period	524	71	183	250
Cash equivalents at end of period	$ 136	$ 137	$ 136	$ 137

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Corporate information

6 Months Ended

Jun. 30, 2018

Corporate Information And Statement Of IFRS Compliance [Abstract]

Corporate information

Note 1 Corporate information

BCE is incorporated and domiciled in Canada. BCE’s head office is located at 1, Carrefour Alexander-Graham-Bell, Verdun, Québec, Canada. BCE is a telecommunications and media company providing wireless, wireline, Internet and television (TV) services to residential, business and wholesale customers nationally across Canada. Our Bell Media segment provides conventional, specialty and pay TV, digital media, radio broadcasting services and out-of-home (OOH) advertising services to customers nationally across Canada.

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Basis of presentation and significant accounting policies

6 Months Ended

Jun. 30, 2018

Accounting Policies, Changes In Accounting Estimates And Errors [Abstract]

Basis of presentation and significant accounting policies

Note 2 Basis of presentation and significant accounting policies

These 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 August 1, 2018. These 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, 2017, except as noted below. The impacts of adopting IFRS 15 on our previously reported results for the three and six months ended June 30, 2017 are provided in Note 14, Adoption of IFRS 15. The impacts of adopting IFRS 15 on our statement of financial position as at January 1, 2017 and December 31, 2017, our consolidated income statement and consolidated statement of cash flows for the year ended December 31, 2017, along with updated 2017 annual disclosures are included in Note 3, Adoption of IFRS 15, of our unaudited consolidated financial statements for the period ended March 31, 2018.

These 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.

Adoption of new accounting standards

As required, effective January 1, 2018, we adopted the following new accounting standards.

IFRS 15

We applied IFRS 15, Revenue from Contracts with Customers, retrospectively to each prior reporting period presented. IFRS 15 establishes principles to record revenues from contracts for the sale of products or services, unless the contracts are in the scope of other IFRSs.

IFRS 15 principally affects the timing of revenue recognition and how we classify revenues between product and service in our Bell Wireless segment. IFRS 15 also affects how we account for costs to obtain a contract.

• Under multiple-element arrangements, revenue allocated to a satisfied performance obligation is no longer limited to the amount that is not contingent upon the satisfaction of additional performance obligations. Although the total revenue recognized during the term of a contract is largely unaffected, revenue recognition may be accelerated and reflected ahead of the associated cash inflows. This results in the recognition of a contract asset on the balance sheet, corresponding to the amount of revenue recognized and not yet billed to a customer. The contract asset is realized over the term of the customer contract.

• As revenues allocated to a satisfied performance obligation are no longer limited to the non-contingent amount, a greater proportion of the total revenue recognized during the term of certain customer contracts may be attributed to a delivered product, resulting in a corresponding decrease in service revenue

• Sales commissions and any other incremental costs of obtaining a contract with a customer are recognized on the statement of financial position and amortized on a systematic basis that is consistent with the period and pattern of transfer to the customer of the related products or services, except as noted below

Under IFRS 15, we apply the following practical expedients.

• Completed contracts that begin and end within the same annual reporting period and those completed before January 1, 2017 are not restated

• Contracts modified prior to January 1, 2017 are not restated. The aggregate effect of these modifications is reflected when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price to the satisfied and unsatisfied performance obligations.

• When our right to consideration from a customer corresponds directly with the value to the customer of the products and services transferred to date, we recognize revenue in the amount to which we have a right to invoice. For such contracts and for performance obligations that are part of a contract that has an original expected duration of one year or less, the transaction price amount allocated to the remaining performance obligations and an explanation of when we expect to recognise that amount as revenue are not disclosed.

• Costs of obtaining a contract that would be amortized within one year or less are immediately expensed

IFRS 9

We applied IFRS 9, Financial Instruments (as revised in July 2014) and the related consequential amendments to other IFRSs retrospectively, except for the changes to hedge accounting described below which are applied prospectively. In accordance with the transition requirements, comparative periods have not been restated. The adoption of IFRS 9 did not have a significant impact on the carrying amounts of our financial instruments as at January 1, 2018. As a result of the adoption of IFRS 9, our January 1, 2018 deficit increased by $4 million.

IFRS 9 replaces the classification and measurement models in IAS 39, Financial Instruments: Recognition and Measurement, with a single model under which financial assets are classified and measured at amortized cost, fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVTPL). This classification is based on the business model in which a financial asset is managed and its contractual cash flow characteristics and eliminates the IAS 39 categories of held-to-maturity, loans and receivables and available-for-sale. The adoption of IFRS 9 did not, however, change the measurement bases of our financial assets.

• Cash and cash equivalents and derivative instruments measured at FVTPL under IAS 39 continue to be measured as such under IFRS 9

• Portfolio investments in equity securities and certain derivative instruments that qualify for cash flow hedge accounting measured at FVOCI under IAS 39 continue to be measured as such under IFRS 9

• Trade and other receivables continue to be measured at amortized cost under IFRS 9

The impairment of financial assets under IFRS 9 is based on an expected credit loss (ECL) model, as opposed to the incurred loss model in IAS 39. IFRS 9 applies to financial assets measured at amortized cost and contract assets and requires that we consider factors that include historical, current and forward-looking information when measuring the ECL. We use the simplified approach for measuring losses based on the lifetime ECL for trade receivables and contract assets. Amounts considered uncollectible are written off and recognized in Operating costs in the income statement.

We have adopted the general hedge accounting model in IFRS 9 which requires that we ensure hedge accounting relationships are consistent with our risk management objectives and strategies. We also apply a more qualitative and forward-looking approach in assessing hedge effectiveness as a retrospective assessment is no longer required.

• Under IFRS 9, amounts related to cash flow hedges of anticipated purchases of non-financial assets settled during the period are reclassified from Accumulated other comprehensive income to the initial cost of the non-financial asset when it is recognized. Under IAS 39, such amounts were reclassified from Other comprehensive income. Amounts related to cash flow hedges of other anticipated purchases continue to be reclassified from Other comprehensive income to net earnings under IFRS 9.

Future changes to accounting standards

As outlined in Note 2, Significant accounting policies in our consolidated financial statements for the year ended December 31, 2017, the IASB issued IFRS 16 - Leases with an effective date of January 1, 2019.

We continue to make progress towards adoption of IFRS 16 according to our detailed implementation plan. It is not yet possible to make a reliable estimate of the impact of the new standard on our financial statements. We will adopt IFRS 16 on January 1, 2019, using a modified retrospective approach.

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Business acquisitions and dispositions

6 Months Ended

Jun. 30, 2018

Business Combinations1 [Abstract]

Business acquisitions and dispositions

Note 3 Business acquisitions and dispositions

2018

Acquisition of AlarmForce

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

Subsequent to the acquisition of AlarmForce, on January 5, 2018, BCE sold AlarmForce's approximate 39,000 customer accounts in British Columbia, Alberta and Saskatchewan to TELUS Communications Inc. (Telus) for total proceeds of approximately $68 million.

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

AlarmForce is included in our Bell Wireline segment in our consolidated financial statements.

The purchase price allocation includes provisional estimates, in particular for 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.

	TOTAL
Cash consideration	181
Issuance of 22,531 BCE common shares (1)	1
Total cost to be allocated	182
Assets held for sale (2)	68
Property, plant and equipment	8
Finite-life intangible assets (3)	34
Indefinite-life intangible assets	1
Deferred tax liabilities	(7	)
Other non-current liabilities	(1	)
	103
Cash and cash equivalents	4
Fair value of net assets acquired	107
Goodwill (4)	75

(1) Recorded at fair value based on the market price of BCE common shares on the acquisition date.

(2) Consists mainly of customer relationships recorded at fair value less costs to sell.

(3) Consists mainly of customer relationships.

(4) Goodwill arises principally from expected synergies and future growth and is not deductible for tax purposes. Goodwill arising from the transaction was allocated to our Bell Wireline group of CGUs.

Revenues of $26 million and net earnings of $2 million from AlarmForce are included in the consolidated income statements from the date of acquisition. These amounts reflect the amortization of certain elements of the purchase price allocation and related tax adjustments.

Termination of agreement to acquire Séries+ and Historia specialty channels

On October 17, 2017, BCE entered into an agreement with Corus Entertainment Inc. (Corus) to acquire French-language specialty channels Séries+ and Historia. On May 28, 2018, the Competition Bureau announced that it did not approve the sale of the channels to BCE. As a result, BCE and Corus terminated their agreement.

Future business acquisitions

On June 30, 2018, Bell entered into an agreement to acquire a corporation that provides broadband network services to commercial and government accounts. The transaction is valued at approximately $152 million and is expected to close by the end of August 2018.

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.

Revenues of $271 million and net earnings of $38 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 six months ended June 30, 2017 would have been $11,217 million and $1,513 million, respectively, had the acquisition of MTS occurred on January 1, 2017. These amounts reflect the elimination of intercompany transactions, financing costs and the amortization of certain elements of the purchase price allocation and related tax adjustments.

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

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.

The transaction did not have a significant impact on our consolidated operating revenues and net earnings for the six months ended June 30, 2017.

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Segmented information

6 Months Ended

Jun. 30, 2018

Operating Segments [Abstract]

Segmented information

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 three month periods ended June 30, 2018 and 2017.

FOR THE THREE MONTH PERIOD ENDED JUNE 30, 2018	NOTE	BELL WIRELESS		BELL WIRELINE		BELL MEDIA		INTER- SEGMENT ELIMINA- TIONS		BCE
Operating revenues
External customers		2,032		3,077		677		—		5,786
Inter-segment		14		58		114		(186	)	—
Total operating revenues		2,046		3,135		791		(186	)	5,786
Operating costs	5	(1,142	)	(1,814	)	(586	)	186		(3,356	)
Segment profit (1)		904		1,321		205		—		2,430
Severance, acquisition and other costs	6	(3	)	(13	)	(8	)	—		(24	)
Depreciation and amortization		(165	)	(803	)	(40	)	—		(1,008	)
Finance costs
Interest expense										(246	)
Interest on post-employment benefit obligations	10									(17	)
Other expense	7									(88	)
Income taxes										(292	)
Net earnings										755

(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 THREE MONTH PERIOD ENDED JUNE 30, 2017		NOTE	BELL WIRELESS		BELL WIRELINE		BELL MEDIA		INTER- SEGMENT ELIMINA- TIONS		BCE
Operating revenues
	External customers		1,938		3,067		683		—		5,688
	Inter-segment		11		50		113		(174	)	—
Total operating revenues			1,949		3,117		796		(174	)	5,688
Operating costs		5	(1,098	)	(1,810	)	(572	)	174		(3,306	)
Segment profit (1)			851		1,307		224		—		2,382
Severance, acquisition and other costs		6	—		(35	)	(1	)	—		(36	)
Depreciation and amortization			(143	)	(796	)	(38	)	—		(977	)
Finance costs
	Interest expense										(238	)
	Interest on post-employment benefit obligations	10									(18	)
Other expense		7									(1	)
Income taxes											(298	)
Net earnings											814

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

The following tables present financial information by segment for the six month periods ended June 30, 2018 and 2017.

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2018	NOTE	BELL WIRELESS		BELL WIRELINE		BELL MEDIA		INTER- SEGMENT ELIMINA- TIONS		BCE
Operating revenues
External customers		3,966		6,102		1,308		—		11,376
Inter-segment		26		117		232		(375	)	—
Total operating revenues		3,992		6,219		1,540		(375	)	11,376
Operating costs	5	(2,266	)	(3,596	)	(1,205	)	375		(6,692	)
Segment profit (1)		1,726		2,623		335		—		4,684
Severance, acquisition and other costs	6	(6	)	(8	)	(10	)	—		(24	)
Depreciation and amortization		(325	)	(1,598	)	(77	)	—		(2,000	)
Finance costs
Interest expense										(486	)
Interest on post-employment benefit obligations	10									(34	)
Other expense	7									(149	)
Income taxes										(527	)
Net earnings										1,464

(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 SIX MONTH PERIOD ENDED JUNE 30, 2017		NOTE	BELL WIRELESS		BELL WIRELINE		BELL MEDIA		INTER- SEGMENT ELIMINA- TIONS		BCE
Operating revenues
	External customers		3,694		5,995		1,335		—		11,024
	Inter-segment		22		99		212		(333	)	—
Total operating revenues			3,716		6,094		1,547		(333	)	11,024
Operating costs		5	(2,096	)	(3,524	)	(1,189	)	333		(6,476	)
Segment profit (1)			1,620		2,570		358		—		4,548
Severance, acquisition and other costs		6	(5	)	(102	)	(13	)	—		(120	)
Depreciation and amortization			(281	)	(1,532	)	(73	)	—		(1,886	)
Finance costs
	Interest expense										(472	)
	Interest on post-employment benefit obligations	10									(36	)
Other income		7									16
Income taxes											(548	)
Net earnings											1,502

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

Revenues by services and products

	THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2018	2017	2018	2017
Services(1)
Wireless	1,562	1,508	3,062	2,923
Data	1,869	1,812	3,689	3,531
Voice	957	1,020	1,907	2,001
Media	677	683	1,308	1,335
Other services	64	55	127	99
Total services	5,129	5,078	10,093	9,889
Products(2)
Wireless	470	430	904	771
Data	98	95	202	194
Equipment and other	89	85	177	170
Total products	657	610	1,283	1,135
Total operating revenues	5,786	5,688	11,376	11,024

(1) Our service revenues are generally recognized over time.

(2) Our product revenues are generally recognized at a point in time.

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Operating costs

6 Months Ended

Jun. 30, 2018

Analysis of income and expense [abstract]

Operating costs

Note 5 Operating costs

			THREE MONTHS				SIX MONTHS
FOR THE PERIOD ENDED JUNE 30		NOTE	2018		2017		2018		2017
Labour costs
	Wages, salaries and related taxes and benefits		(1,090	)	(1,072	)	(2,148	)	(2,075	)
	Post-employment benefit plans service cost (net of capitalized amounts)	10	(63	)	(64	)	(136	)	(114	)
	Other labour costs (1)		(262	)	(264	)	(510	)	(517	)
Less:
	Capitalized labour		288		268		543		513
Total labour costs			(1,127	)	(1,132	)	(2,251	)	(2,193	)
Cost of revenues (2)			(1,720	)	(1,678	)	(3,430	)	(3,305	)
Other operating costs (3)			(509	)	(496	)	(1,011	)	(978	)
Total operating costs			(3,356	)	(3,306	)	(6,692	)	(6,476	)

(1) Other labour costs include contractor and outsourcing costs.

(2) Cost of revenues includes costs of wireless devices and other equipment sold, network and content costs, and payments to other carriers.

(3) Other operating costs include marketing, advertising and sales commission costs, bad debt expense, taxes other than income taxes, IT costs, professional service fees and rent.

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Severance, acquisition and other costs

6 Months Ended

Jun. 30, 2018

Analysis of income and expense [abstract]

Severance, acquisition and other costs

Note 6 Severance, acquisition and other costs

	THREE MONTHS				SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2018		2017		2018		2017
Severance	(15	)	(16	)	(24	)	(47	)
Acquisition and other	(9	)	(20	)	—		(73	)
Total severance, acquisition and other costs	(24	)	(36	)	(24	)	(120	)

Severance costs

Severance costs consist of charges related to workforce reduction initiatives.

Acquisition and other costs

Acquisition and other costs consist of transaction costs, such as legal and financial advisory fees, related to completed or potential acquisitions, employee severance costs related to the purchase of a business, the costs to integrate acquired companies into our operations and litigation costs, when they are significant. Acquisition costs also include a loss on transfer of spectrum licences relating to the MTS acquisition in 2017.

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Other (expense) income

6 Months Ended

Jun. 30, 2018

Analysis of income and expense [abstract]

Other (expense) income

Note 7 Other (expense) income

			THREE MONTHS				SIX MONTHS
FOR THE PERIOD ENDED JUNE 30		NOTE	2018		2017		2018		2017
Net mark-to-market (losses) gains on derivatives used to economically hedge equity settled share-based compensation plans (1)			(30	)	1		(107	)	25
Equity (losses) income from investments in associates and joint ventures
	Losses on investments (2)		(20	)	—		(20	)	(2	)
	Operations		(20	)	12		(3	)	31
Early debt redemption costs		9	(18	)	(4	)	(18	)	(4	)
Impairment of assets			—		—		(4	)	—
Losses on retirements and disposals of property, plant and equipment and intangible assets			(2	)	(9	)	(1	)	(26	)
Losses on investments			—		—		—		(12	)
Other (1)			2		(1	)	4		4
Total other (expense) income			(88	)	(1	)	(149	)	16

(1) We have reclassified amounts from the previous period to make them consistent with the presentation for the current period.

(2)The$20 million loss in 2018 represents BCE's share of an obligation to repurchase at fair value the minority interest in one of BCE's joint ventures. The obligation is marked to market each reporting period and the gain or loss on investment is recorded as equity gains or losses from investments in associates and joint ventures.

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Earnings per share

6 Months Ended

Jun. 30, 2018

Earnings per share [abstract]

Earnings per share

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.

		THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30		2018	2017	2018	2017
Net earnings attributable to common shareholders - basic		704	765	1,365	1,407
Dividends declared per common share (in dollars)		0.7550	0.7175	1.5100	1.4350
Weighted average number of common shares outstanding (in millions)
	Weighted average number of common shares outstanding - basic	898.0	900.1	899.1	888.0
	Assumed exercise of stock options (1)	0.3	0.9	0.3	0.8
Weighted average number of common shares outstanding - diluted (in millions)		898.3	901.0	899.4	888.8

(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 12,050,731 for both the second quarter of 2018 and for the first half of 2018, compared to 31,722 for the second quarter of 2017 and 5,803,983 for the first half of 2017.

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Debt

6 Months Ended

Jun. 30, 2018

Financial Instruments [Abstract]

Debt

Note 9 Debt

2018

On May 4, 2018, Bell Canada redeemed, prior to maturity, its 3.50% Series M-28 medium term notes (MTN) debentures, having an outstanding principal amount of $400 million which were due on September 10, 2018.

On April 16, 2018, Bell Canada redeemed, prior to maturity, its 4.59% Series 9 notes, having an outstanding principal amount of $200 million which were due on October 1, 2018. In addition, on the same date, Bell Canada redeemed, prior to maturity, its 5.52% Series M-33 debentures, having an outstanding principal amount of $300 million, which were due on February 26, 2019.

In Q2 2018, we incurred early debt redemption charges of $18 million which were recorded in Other (expense) incomein the income statement.

In Q2 2018, Bell Canada reclassified its $1 billion3.35% Series M-25 debentures, which mature on June 18, 2019, from long-term debt to debt due within one year.

On March 29, 2018, Bell Canada issued 4.464% Series US-1 notes under its 2016 trust indenture, with a principal amount of US $750 million (CAD $967 million), which mature on April 1, 2048. The Series US-1 Notes have been hedged for foreign currency fluctuations through a cross currency interest rate swap. See Note 11, Financial assets and liabilities, for additional details.

On March 12, 2018, Bell Canada issued 3.35% Series M-47 MTN debentures under its 1997 trust indenture, with a principal amount of $500 million, which mature on March 12, 2025.

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Post-employee benefit plans

6 Months Ended

Jun. 30, 2018

Employee Benefits [Abstract]

Post-employment benefit plans

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).

COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS SERVICE COST

		THREE MONTHS				SIX MONTHS
FOR THE PERIOD ENDED JUNE 30		2018		2017		2018		2017
DB pension		(53	)	(53	)	(106	)	(101	)
DC pension		(24	)	(24	)	(57	)	(55	)
OPEBs		(1	)	(1	)	(2	)	(3	)
Plan amendment gain on OPEBs		—		—		—		16
Less:
	Capitalized benefit plans cost	15		14		29		29
Total post-employment benefit plans service cost included in operating costs		(63	)	(64	)	(136	)	(114	)
Other costs recognized in severance, acquisition and other costs		—		(4	)	(4	)	(4	)
Total post-employment benefit plans service cost		(63	)	(68	)	(140	)	(118	)

COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS FINANCING COST

	THREE MONTHS				SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2018		2017		2018		2017
DB pension	(5	)	(5	)	(11	)	(9	)
OPEBs	(12	)	(13	)	(23	)	(27	)
Total interest on post-employment benefit obligations	(17	)	(18	)	(34	)	(36	)

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Financial assets and liabilities

6 Months Ended

Jun. 30, 2018

Financial Instruments [Abstract]

Financial assets and liabilities

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.

			JUNE 30, 2018		DECEMBER 31, 2017
	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	79	78	111	110
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	119	121	124	128
Debt securities, finance leases and other debt	Debt due within one year and long-term debt	Quoted market price of debt or present value of future cash flows discounted using observable market interest rates	19,868	21,490	19,321	21,298

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)
June 30, 2018
Publicly-traded and privately-held investments	Other non-current assets	104		1	—		103
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities	(5	)	—	(5	)	—
Maple Leaf Sports & Entertainment Ltd. (MLSE) financial liability(3)	Trade payables and other liabilities	(135	)	—	—		(135	)
Other	Other non-current assets and liabilities	70		—	116		(46	)
December 31, 2017
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	(48	)	—	(48	)	—
MLSE financial liability(3)	Trade payables and other liabilities	(135	)	—	—		(135	)
Other	Other non-current assets and liabilities	60		—	106		(46	)

(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 MLSE at a price not less than an agreed minimum price should the Master Trust exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recorded in Other (expense) income in the income statements.

CURRENCY EXPOSURES

We use forward contracts, options and cross currency interest rate swaps to manage foreign currency risk related to anticipated purchases and sales and certain foreign currency denominated debt.

A 10% depreciation (appreciation) in the value of the Canadian dollar relative to the U.S. dollar would result in a gain (loss) of $2 million ($3 million) recognized in net earnings at June 30, 2018 and a gain (loss) of $139 million ($134 million) recognized in Other comprehensive income (loss) at June 30, 2018, with all other variables held constant.

In Q1 2018, we entered into a cross currency interest rate swap with a notional amount of $750 million in U.S. dollars ($967 million in Canadian dollars) to hedge the U.S. currency exposure of our Series US-1 notes maturing in 2048. See Note 9, Debt, for additional details.

The following table provides further details on our outstanding foreign currency forward contracts and options as at June 30, 2018.

TYPE OF HEDGE	BUY CURRENCY	AMOUNT TO RECEIVE	SELL CURRENCY	AMOUNT TO PAY	MATURITY	HEDGED ITEM
Cash flow	USD	2,499	CAD	3,244	2018	Commercial paper
Cash flow	USD	450	CAD	584	2018	Anticipated transactions
Cash flow	CAD	46	USD	36	2018-2019	Anticipated transactions
Cash flow	USD	775	CAD	968	2019	Anticipated transactions
Cash flow	USD	76	CAD	96	2020-2021	Anticipated transactions
Economic	USD	19	CAD	24	2018	Anticipated transactions
Economic - call options	USD	33	CAD	41	2018	Anticipated transactions
Economic - put options	USD	99	CAD	119	2018	Anticipated transactions

INTEREST RATE EXPOSURES

A 1% increase (decrease) in interest rates would result in a decrease (increase) of $31 million in net earnings at June 30, 2018.

EQUITY PRICE EXPOSURES

We use equity forward contracts on BCE’s common shares to economically hedge the cash flow exposure related to the settlement of equity settled share-based compensation plans and the equity price risk related to a cash-settled share-based payment plan. The fair value of our equity forward contracts at June 30, 2018 was a liability of $85 million.

A 5% increase (decrease) in the market price of BCE’s common shares at June 30, 2018 would result in a gain (loss) of $33 million recognized in net earnings, with all other variables held constant.

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Share capital

6 Months Ended

Jun. 30, 2018

Disclosure Of Share Capital, Reserves And Other Equity Interest [Abstract]

Share capital

Note 12 Share capital

NORMAL COURSE ISSUER BID PROGRAM (NCIB)

In Q1 2018, BCE repurchased and canceled 3,085,697 common shares for a total cost of $175 million. Of the total cost, $69 million represents stated capital and $3 million represents the reduction of the contributed surplus attributable to these common shares. The remaining $103 million was charged to the deficit.

CONVERSION OF FIRST PREFERRED SHARES

On March 1, 2018, 397,181 of BCE's 5,069,935 fixed-rate Cumulative Redeemable First Preferred Shares, Series AC (Series AC Preferred Shares) were converted, on a one-for-one basis, into floating rate Cumulative Redeemable First Preferred Shares, Series AD (Series AD Preferred Shares). In addition, on March 1, 2018, 5,356,937 of BCE's 14,930,065 Series AD Preferred Shares were converted, on a one-for-one basis, into Series AC Preferred Shares.

The annual fixed dividend rate on BCE’s Series AC Preferred Shares was reset for the next five years, effective March 1, 2018, at 4.38% from 3.55%. The Series AD Preferred Shares continue to pay a monthly floating cash dividend.

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Share-based payments

6 Months Ended

Jun. 30, 2018

Share-based Payment Arrangements [Abstract]

Share-based payments

Note 13 Share-based payments

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

	THREE MONTHS				SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2018		2017		2018		2017
Employee savings plan (ESP)	(7	)	(7	)	(14	)	(14	)
Restricted share units (RSUs) and performance share units (PSUs)	(11	)	(10	)	(30	)	(27	)
Other (1)	(2	)	(2	)	(6	)	(5	)
Total share-based payments	(20	)	(19	)	(50	)	(46	)

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

The following tables summarize the change in outstanding ESP shares, RSUs/PSUs, DSUs and stock options for the period ended June 30, 2018.

ESP

	NUMBER OF ESP SHARES
Unvested contributions, January 1, 2018	1,039,030
Contributions(1)	331,987
Dividends credited	26,960
Vested	(255,867	)
Forfeited	(71,395	)
Unvested contributions, June 30, 2018	1,070,715

(1) The weighted average fair value of the shares contributed during the six months ended June 30, 2018 was $56.

RSUs/PSUs

	NUMBER OF RSUs/PSUs
Outstanding, January 1, 2018	2,740,392
Granted(1)	958,411
Dividends credited	71,863
Settled	(1,010,626	)
Forfeited	(20,287	)
Outstanding, June 30, 2018	2,739,753

(1) The weighted average fair value of the RSUs/PSUs granted during the six months ended June 30, 2018 was $57.

DSUs

	NUMBER OF DSUs
Outstanding, January 1, 2018	4,309,528
Issued(1)	69,659
Settlement of RSUs/PSUs	112,675
Dividends credited	116,172
Settled	(181,645	)
Outstanding, June 30, 2018	4,426,389

(1) The weighted average fair value of the DSUs issued during the six months ended June 30, 2018 was $55.

STOCK OPTIONS

	NUMBER OF OPTIONS		WEIGHTED AVERAGE EXERCISE PRICE ($)
Outstanding, January 1, 2018	10,490,249		55
Granted	3,651,802		57
Exercised(1)	(59,756	)	39
Forfeited	(4,641	)	59
Outstanding, June 30, 2018	14,077,654		56
Exercisable, June 30, 2018	4,606,773		52

(1) The weighted average share price for options exercised during the six months ended June 30, 2018 was $56.

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.

	2018
Weighted average fair value per option granted	$2.13
Weighted average share price	$57
Weighted average exercise price	$57
Dividend yield	5	%
Expected volatility	12	%
Risk-free interest rate	2	%
Expected life (years)	4

Expected volatilities are based on the historical volatility of BCE’s share price. The risk-free rate used is equal to the yield available on Government of Canada bonds at the date of grant with a term equal to the expected life of the options.

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Adoption of IFRS 15

6 Months Ended

Jun. 30, 2018

Disclosure of revenue from contracts with customers [Abstract]

Adoption of IFRS 15

Note 14 Adoption of IFRS 15

As a result of adopting IFRS 15, we have changed the comparative figures for the three and six months ended June 30, 2017 and the year ended December 31, 2017. The impacts of adopting IFRS 15 on our previously reported results for the three and six months ended June 30, 2017 are provided below. The impacts of adopting IFRS 15 on our statement of financial position as at January 1, 2017 and December 31, 2017, our consolidated income statement and consolidated statement of cash flows for the year ended December 31, 2017, along with updated 2017 annual disclosures are included in Note 3, Adoption of IFRS 15, of our unaudited consolidated financial statements for the period ended March 31, 2018.

Consolidated income statements

The table below shows the impacts of adopting IFRS 15 on our previously reported consolidated income statements for the three and six months ended June 30, 2017.

	THREE MONTHS ENDED JUNE 30, 2017						SIX MONTHS ENDED JUNE 30, 2017
(IN MILLIONS OF CANADIAN DOLLARS, EXCEPT SHARE AMOUNTS)	2017 as previously reported		IFRS 15 impacts		2017 upon adoption of IFRS 15		2017 as previously reported		IFRS 15 impacts		2017 upon adoption of IFRS 15
Operating revenues	5,699		(11	)	5,688		11,083		(59	)	11,024
Operating costs	(3,318	)	12		(3,306	)	(6,488	)	12		(6,476	)
Severance, acquisition and other costs	(36	)	—		(36	)	(120	)	—		(120	)
Depreciation	(769	)	2		(767	)	(1,491	)	—		(1,491	)
Amortization	(211	)	1		(210	)	(396	)	1		(395	)
Finance costs
Interest expense	(238	)	—		(238	)	(472	)	—		(472	)
Interest on post-employment benefit obligations	(18	)	—		(18	)	(36	)	—		(36	)
Other (expense) income	(1	)	—		(1	)	16		—		16
Income taxes	(297	)	(1	)	(298	)	(560	)	12		(548	)
Net earnings	811		3		814		1,536		(34	)	1,502
Net earnings attributable to:
Common shareholders	762		3		765		1,441		(34	)	1,407
Preferred shareholders	32		—		32		63		—		63
Non-controlling interest	17		—		17		32		—		32
Net earnings	811		3		814		1,536		(34	)	1,502
Net earnings per common share - basic and diluted	0.84		0.01		0.85		1.62		(0.04	)	1.58
Average number of common shares outstanding - basic (millions)	900.1		—		900.1		888.0		—		888.0

Deficit

The table below provides a reconciliation of our deficit at June 30, 2017 from amounts previously reported in 2017 to the amounts reported under IFRS 15. All amounts are after tax.

	AT JUNE 30, 2017
Total deficit as previously reported	(6,466	)
Timing of revenue recognition	777
Cost to obtain a contract	251
Total deficit upon adoption of IFRS 15	(5,438	)

Consolidated statement of cash flows

The table below shows the impacts of adopting IFRS 15 on select line items of our previously reported 2017 statement of cash flows for the three and six months ended June 30, 2017.

	THREE MONTHS ENDED JUNE 30, 2017				SIX MONTHS ENDED JUNE 30, 2017
	2017 as previously reported	IFRS 15 impacts		2017 upon adoption of IFRS 15	2017 as previously reported	IFRS 15 impacts		2017 upon adoption of IFRS 15
Cash flows from operating activities
Net earnings	811	3		814	1,536	(34	)	1,502
Depreciation and amortization	980	(3	)	977	1,887	(1	)	1,886
Income taxes	297	1		298	560	(12	)	548
Net change in operating assets and liabilities	242	(1	)	241	8	47		55
Cash flows from operating activities	2,154	—		2,154	3,467	—		3,467

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Basis of presentation and significant accounting policies (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies, Changes In Accounting Estimates And Errors [Abstract]

Adoption of new accounting standards

Adoption of new accounting standards

As required, effective January 1, 2018, we adopted the following new accounting standards.

IFRS 15

We applied IFRS 15, Revenue from Contracts with Customers, retrospectively to each prior reporting period presented. IFRS 15 establishes principles to record revenues from contracts for the sale of products or services, unless the contracts are in the scope of other IFRSs.

IFRS 15 principally affects the timing of revenue recognition and how we classify revenues between product and service in our Bell Wireless segment. IFRS 15 also affects how we account for costs to obtain a contract.

• Under multiple-element arrangements, revenue allocated to a satisfied performance obligation is no longer limited to the amount that is not contingent upon the satisfaction of additional performance obligations. Although the total revenue recognized during the term of a contract is largely unaffected, revenue recognition may be accelerated and reflected ahead of the associated cash inflows. This results in the recognition of a contract asset on the balance sheet, corresponding to the amount of revenue recognized and not yet billed to a customer. The contract asset is realized over the term of the customer contract.

• As revenues allocated to a satisfied performance obligation are no longer limited to the non-contingent amount, a greater proportion of the total revenue recognized during the term of certain customer contracts may be attributed to a delivered product, resulting in a corresponding decrease in service revenue

• Sales commissions and any other incremental costs of obtaining a contract with a customer are recognized on the statement of financial position and amortized on a systematic basis that is consistent with the period and pattern of transfer to the customer of the related products or services, except as noted below

Under IFRS 15, we apply the following practical expedients.

• Completed contracts that begin and end within the same annual reporting period and those completed before January 1, 2017 are not restated

• Contracts modified prior to January 1, 2017 are not restated. The aggregate effect of these modifications is reflected when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price to the satisfied and unsatisfied performance obligations.

• When our right to consideration from a customer corresponds directly with the value to the customer of the products and services transferred to date, we recognize revenue in the amount to which we have a right to invoice. For such contracts and for performance obligations that are part of a contract that has an original expected duration of one year or less, the transaction price amount allocated to the remaining performance obligations and an explanation of when we expect to recognise that amount as revenue are not disclosed.

• Costs of obtaining a contract that would be amortized within one year or less are immediately expensed

IFRS 9

We applied IFRS 9, Financial Instruments (as revised in July 2014) and the related consequential amendments to other IFRSs retrospectively, except for the changes to hedge accounting described below which are applied prospectively. In accordance with the transition requirements, comparative periods have not been restated. The adoption of IFRS 9 did not have a significant impact on the carrying amounts of our financial instruments as at January 1, 2018. As a result of the adoption of IFRS 9, our January 1, 2018 deficit increased by $4 million.

IFRS 9 replaces the classification and measurement models in IAS 39, Financial Instruments: Recognition and Measurement, with a single model under which financial assets are classified and measured at amortized cost, fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVTPL). This classification is based on the business model in which a financial asset is managed and its contractual cash flow characteristics and eliminates the IAS 39 categories of held-to-maturity, loans and receivables and available-for-sale. The adoption of IFRS 9 did not, however, change the measurement bases of our financial assets.

• Cash and cash equivalents and derivative instruments measured at FVTPL under IAS 39 continue to be measured as such under IFRS 9

• Portfolio investments in equity securities and certain derivative instruments that qualify for cash flow hedge accounting measured at FVOCI under IAS 39 continue to be measured as such under IFRS 9

• Trade and other receivables continue to be measured at amortized cost under IFRS 9

The impairment of financial assets under IFRS 9 is based on an expected credit loss (ECL) model, as opposed to the incurred loss model in IAS 39. IFRS 9 applies to financial assets measured at amortized cost and contract assets and requires that we consider factors that include historical, current and forward-looking information when measuring the ECL. We use the simplified approach for measuring losses based on the lifetime ECL for trade receivables and contract assets. Amounts considered uncollectible are written off and recognized in Operating costs in the income statement.

We have adopted the general hedge accounting model in IFRS 9 which requires that we ensure hedge accounting relationships are consistent with our risk management objectives and strategies. We also apply a more qualitative and forward-looking approach in assessing hedge effectiveness as a retrospective assessment is no longer required.

• Under IFRS 9, amounts related to cash flow hedges of anticipated purchases of non-financial assets settled during the period are reclassified from Accumulated other comprehensive income to the initial cost of the non-financial asset when it is recognized. Under IAS 39, such amounts were reclassified from Other comprehensive income. Amounts related to cash flow hedges of other anticipated purchases continue to be reclassified from Other comprehensive income to net earnings under IFRS 9.

The table below shows the impacts of adopting IFRS 15 on our previously reported consolidated income statements for the three and six months ended June 30, 2017.

	THREE MONTHS ENDED JUNE 30, 2017						SIX MONTHS ENDED JUNE 30, 2017
(IN MILLIONS OF CANADIAN DOLLARS, EXCEPT SHARE AMOUNTS)	2017 as previously reported		IFRS 15 impacts		2017 upon adoption of IFRS 15		2017 as previously reported		IFRS 15 impacts		2017 upon adoption of IFRS 15
Operating revenues	5,699		(11	)	5,688		11,083		(59	)	11,024
Operating costs	(3,318	)	12		(3,306	)	(6,488	)	12		(6,476	)
Severance, acquisition and other costs	(36	)	—		(36	)	(120	)	—		(120	)
Depreciation	(769	)	2		(767	)	(1,491	)	—		(1,491	)
Amortization	(211	)	1		(210	)	(396	)	1		(395	)
Finance costs
Interest expense	(238	)	—		(238	)	(472	)	—		(472	)
Interest on post-employment benefit obligations	(18	)	—		(18	)	(36	)	—		(36	)
Other (expense) income	(1	)	—		(1	)	16		—		16
Income taxes	(297	)	(1	)	(298	)	(560	)	12		(548	)
Net earnings	811		3		814		1,536		(34	)	1,502
Net earnings attributable to:
Common shareholders	762		3		765		1,441		(34	)	1,407
Preferred shareholders	32		—		32		63		—		63
Non-controlling interest	17		—		17		32		—		32
Net earnings	811		3		814		1,536		(34	)	1,502
Net earnings per common share - basic and diluted	0.84		0.01		0.85		1.62		(0.04	)	1.58
Average number of common shares outstanding - basic (millions)	900.1		—		900.1		888.0		—		888.0

The table below shows the impacts of adopting IFRS 15 on select line items of our previously reported 2017 statement of cash flows for the three and six months ended June 30, 2017.

	THREE MONTHS ENDED JUNE 30, 2017				SIX MONTHS ENDED JUNE 30, 2017
	2017 as previously reported	IFRS 15 impacts		2017 upon adoption of IFRS 15	2017 as previously reported	IFRS 15 impacts		2017 upon adoption of IFRS 15
Cash flows from operating activities
Net earnings	811	3		814	1,536	(34	)	1,502
Depreciation and amortization	980	(3	)	977	1,887	(1	)	1,886
Income taxes	297	1		298	560	(12	)	548
Net change in operating assets and liabilities	242	(1	)	241	8	47		55
Cash flows from operating activities	2,154	—		2,154	3,467	—		3,467

Future changes to accounting standards

Future changes to accounting standards

As outlined in Note 2, Significant accounting policies in our consolidated financial statements for the year ended December 31, 2017, the IASB issued IFRS 16 - Leases with an effective date of January 1, 2019.

We continue to make progress towards adoption of IFRS 16 according to our detailed implementation plan. It is not yet possible to make a reliable estimate of the impact of the new standard on our financial statements. We will adopt IFRS 16 on January 1, 2019, using a modified retrospective approach.

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Business acquisitions and dispositions (Tables)

6 Months Ended

Jun. 30, 2018

Business Combinations1 [Abstract]

Disclosure of detailed information about business combinations

The following table summarizes the fair value of the consideration paid and the fair value assigned to each major class of assets and liabilities.

	TOTAL
Cash consideration	181
Issuance of 22,531 BCE common shares (1)	1
Total cost to be allocated	182
Assets held for sale (2)	68
Property, plant and equipment	8
Finite-life intangible assets (3)	34
Indefinite-life intangible assets	1
Deferred tax liabilities	(7	)
Other non-current liabilities	(1	)
	103
Cash and cash equivalents	4
Fair value of net assets acquired	107
Goodwill (4)	75

(1) Recorded at fair value based on the market price of BCE common shares on the acquisition date.

(2) Consists mainly of customer relationships recorded at fair value less costs to sell.

(3) Consists mainly of customer relationships.

(4) Goodwill arises principally from expected synergies and future growth and is not deductible for tax purposes. Goodwill arising from the transaction was allocated to our Bell Wireline group of CGUs.

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Segmented information (Tables)

6 Months Ended

Jun. 30, 2018

Operating Segments [Abstract]

Segmented information

The following tables present financial information by segment for the three month periods ended June 30, 2018 and 2017.

FOR THE THREE MONTH PERIOD ENDED JUNE 30, 2018	NOTE	BELL WIRELESS		BELL WIRELINE		BELL MEDIA		INTER- SEGMENT ELIMINA- TIONS		BCE
Operating revenues
External customers		2,032		3,077		677		—		5,786
Inter-segment		14		58		114		(186	)	—
Total operating revenues		2,046		3,135		791		(186	)	5,786
Operating costs	5	(1,142	)	(1,814	)	(586	)	186		(3,356	)
Segment profit (1)		904		1,321		205		—		2,430
Severance, acquisition and other costs	6	(3	)	(13	)	(8	)	—		(24	)
Depreciation and amortization		(165	)	(803	)	(40	)	—		(1,008	)
Finance costs
Interest expense										(246	)
Interest on post-employment benefit obligations	10									(17	)
Other expense	7									(88	)
Income taxes										(292	)
Net earnings										755

(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 THREE MONTH PERIOD ENDED JUNE 30, 2017		NOTE	BELL WIRELESS		BELL WIRELINE		BELL MEDIA		INTER- SEGMENT ELIMINA- TIONS		BCE
Operating revenues
	External customers		1,938		3,067		683		—		5,688
	Inter-segment		11		50		113		(174	)	—
Total operating revenues			1,949		3,117		796		(174	)	5,688
Operating costs		5	(1,098	)	(1,810	)	(572	)	174		(3,306	)
Segment profit (1)			851		1,307		224		—		2,382
Severance, acquisition and other costs		6	—		(35	)	(1	)	—		(36	)
Depreciation and amortization			(143	)	(796	)	(38	)	—		(977	)
Finance costs
	Interest expense										(238	)
	Interest on post-employment benefit obligations	10									(18	)
Other expense		7									(1	)
Income taxes											(298	)
Net earnings											814

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

The following tables present financial information by segment for the six month periods ended June 30, 2018 and 2017.

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2018	NOTE	BELL WIRELESS		BELL WIRELINE		BELL MEDIA		INTER- SEGMENT ELIMINA- TIONS		BCE
Operating revenues
External customers		3,966		6,102		1,308		—		11,376
Inter-segment		26		117		232		(375	)	—
Total operating revenues		3,992		6,219		1,540		(375	)	11,376
Operating costs	5	(2,266	)	(3,596	)	(1,205	)	375		(6,692	)
Segment profit (1)		1,726		2,623		335		—		4,684
Severance, acquisition and other costs	6	(6	)	(8	)	(10	)	—		(24	)
Depreciation and amortization		(325	)	(1,598	)	(77	)	—		(2,000	)
Finance costs
Interest expense										(486	)
Interest on post-employment benefit obligations	10									(34	)
Other expense	7									(149	)
Income taxes										(527	)
Net earnings										1,464

(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 SIX MONTH PERIOD ENDED JUNE 30, 2017		NOTE	BELL WIRELESS		BELL WIRELINE		BELL MEDIA		INTER- SEGMENT ELIMINA- TIONS		BCE
Operating revenues
	External customers		3,694		5,995		1,335		—		11,024
	Inter-segment		22		99		212		(333	)	—
Total operating revenues			3,716		6,094		1,547		(333	)	11,024
Operating costs		5	(2,096	)	(3,524	)	(1,189	)	333		(6,476	)
Segment profit (1)			1,620		2,570		358		—		4,548
Severance, acquisition and other costs		6	(5	)	(102	)	(13	)	—		(120	)
Depreciation and amortization			(281	)	(1,532	)	(73	)	—		(1,886	)
Finance costs
	Interest expense										(472	)
	Interest on post-employment benefit obligations	10									(36	)
Other income		7									16
Income taxes											(548	)
Net earnings											1,502

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

Revenues by services and products

Revenues by services and products

	THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2018	2017	2018	2017
Services(1)
Wireless	1,562	1,508	3,062	2,923
Data	1,869	1,812	3,689	3,531
Voice	957	1,020	1,907	2,001
Media	677	683	1,308	1,335
Other services	64	55	127	99
Total services	5,129	5,078	10,093	9,889
Products(2)
Wireless	470	430	904	771
Data	98	95	202	194
Equipment and other	89	85	177	170
Total products	657	610	1,283	1,135
Total operating revenues	5,786	5,688	11,376	11,024

(1) Our service revenues are generally recognized over time.

(2) Our product revenues are generally recognized at a point in time.

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Operating costs (Tables)

6 Months Ended

Jun. 30, 2018

Analysis of income and expense [abstract]

Disclosure of operating costs

			THREE MONTHS				SIX MONTHS
FOR THE PERIOD ENDED JUNE 30		NOTE	2018		2017		2018		2017
Labour costs
	Wages, salaries and related taxes and benefits		(1,090	)	(1,072	)	(2,148	)	(2,075	)
	Post-employment benefit plans service cost (net of capitalized amounts)	10	(63	)	(64	)	(136	)	(114	)
	Other labour costs (1)		(262	)	(264	)	(510	)	(517	)
Less:
	Capitalized labour		288		268		543		513
Total labour costs			(1,127	)	(1,132	)	(2,251	)	(2,193	)
Cost of revenues (2)			(1,720	)	(1,678	)	(3,430	)	(3,305	)
Other operating costs (3)			(509	)	(496	)	(1,011	)	(978	)
Total operating costs			(3,356	)	(3,306	)	(6,692	)	(6,476	)

(1) Other labour costs include contractor and outsourcing costs.

(2) Cost of revenues includes costs of wireless devices and other equipment sold, network and content costs, and payments to other carriers.

(3) Other operating costs include marketing, advertising and sales commission costs, bad debt expense, taxes other than income taxes, IT costs, professional service fees and rent.

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Severance, acquisition and other costs (Tables)

6 Months Ended

Jun. 30, 2018

Analysis of income and expense [abstract]

Disclosure of severance, acquisition and other costs

	THREE MONTHS				SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2018		2017		2018		2017
Severance	(15	)	(16	)	(24	)	(47	)
Acquisition and other	(9	)	(20	)	—		(73	)
Total severance, acquisition and other costs	(24	)	(36	)	(24	)	(120	)

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Other (expense) income (Tables)

6 Months Ended

Jun. 30, 2018

Analysis of income and expense [abstract]

Schedule of other income

			THREE MONTHS				SIX MONTHS
FOR THE PERIOD ENDED JUNE 30		NOTE	2018		2017		2018		2017
Net mark-to-market (losses) gains on derivatives used to economically hedge equity settled share-based compensation plans (1)			(30	)	1		(107	)	25
Equity (losses) income from investments in associates and joint ventures
	Losses on investments (2)		(20	)	—		(20	)	(2	)
	Operations		(20	)	12		(3	)	31
Early debt redemption costs		9	(18	)	(4	)	(18	)	(4	)
Impairment of assets			—		—		(4	)	—
Losses on retirements and disposals of property, plant and equipment and intangible assets			(2	)	(9	)	(1	)	(26	)
Losses on investments			—		—		—		(12	)
Other (1)			2		(1	)	4		4
Total other (expense) income			(88	)	(1	)	(149	)	16

(1) We have reclassified amounts from the previous period to make them consistent with the presentation for the current period.

(2)The$20 million loss in 2018 represents BCE's share of an obligation to repurchase at fair value the minority interest in one of BCE's joint ventures. The obligation is marked to market each reporting period and the gain or loss on investment is recorded as equity gains or losses from investments in associates and joint ventures.

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Earnings per share (Tables)

6 Months Ended

Jun. 30, 2018

Earnings per share [abstract]

Schedule of components used in calculation of basic and diluted earnings per share

The following table shows the components used in the calculation of basic and diluted earnings per common share for earnings attributable to common shareholders.

		THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30		2018	2017	2018	2017
Net earnings attributable to common shareholders - basic		704	765	1,365	1,407
Dividends declared per common share (in dollars)		0.7550	0.7175	1.5100	1.4350
Weighted average number of common shares outstanding (in millions)
	Weighted average number of common shares outstanding - basic	898.0	900.1	899.1	888.0
	Assumed exercise of stock options (1)	0.3	0.9	0.3	0.8
Weighted average number of common shares outstanding - diluted (in millions)		898.3	901.0	899.4	888.8

(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 12,050,731 for both the second quarter of 2018 and for the first half of 2018, compared to 31,722 for the second quarter of 2017 and 5,803,983 for the first half of 2017.

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Post-employee benefit plans (Tables)

6 Months Ended

Jun. 30, 2018

Employee Benefits [Abstract]

Components of post-employment benefit plans service cost

COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS SERVICE COST

		THREE MONTHS				SIX MONTHS
FOR THE PERIOD ENDED JUNE 30		2018		2017		2018		2017
DB pension		(53	)	(53	)	(106	)	(101	)
DC pension		(24	)	(24	)	(57	)	(55	)
OPEBs		(1	)	(1	)	(2	)	(3	)
Plan amendment gain on OPEBs		—		—		—		16
Less:
	Capitalized benefit plans cost	15		14		29		29
Total post-employment benefit plans service cost included in operating costs		(63	)	(64	)	(136	)	(114	)
Other costs recognized in severance, acquisition and other costs		—		(4	)	(4	)	(4	)
Total post-employment benefit plans service cost		(63	)	(68	)	(140	)	(118	)

Components of post-employment benefit plans financing cost

COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS FINANCING COST

	THREE MONTHS				SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2018		2017		2018		2017
DB pension	(5	)	(5	)	(11	)	(9	)
OPEBs	(12	)	(13	)	(23	)	(27	)
Total interest on post-employment benefit obligations	(17	)	(18	)	(34	)	(36	)

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Financial assets and liabilities (Tables)

6 Months Ended

Jun. 30, 2018

Financial Instruments [Abstract]

Disclosure of financial liabilities

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

			JUNE 30, 2018		DECEMBER 31, 2017
	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	79	78	111	110
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	119	121	124	128
Debt securities, finance leases and other debt	Debt due within one year and long-term debt	Quoted market price of debt or present value of future cash flows discounted using observable market interest rates	19,868	21,490	19,321	21,298

Disclosure of fair value measurement of assets

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

				FAIR VALUE
	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)
June 30, 2018
Publicly-traded and privately-held investments	Other non-current assets	104		1	—		103
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities	(5	)	—	(5	)	—
Maple Leaf Sports & Entertainment Ltd. (MLSE) financial liability(3)	Trade payables and other liabilities	(135	)	—	—		(135	)
Other	Other non-current assets and liabilities	70		—	116		(46	)
December 31, 2017
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	(48	)	—	(48	)	—
MLSE financial liability(3)	Trade payables and other liabilities	(135	)	—	—		(135	)
Other	Other non-current assets and liabilities	60		—	106		(46	)

(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 MLSE at a price not less than an agreed minimum price should the Master Trust exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recorded in Other (expense) income in the income statements.

Disclosure of fair value measurement of liabilities

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

				FAIR VALUE
	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)
June 30, 2018
Publicly-traded and privately-held investments	Other non-current assets	104		1	—		103
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities	(5	)	—	(5	)	—
Maple Leaf Sports & Entertainment Ltd. (MLSE) financial liability(3)	Trade payables and other liabilities	(135	)	—	—		(135	)
Other	Other non-current assets and liabilities	70		—	116		(46	)
December 31, 2017
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	(48	)	—	(48	)	—
MLSE financial liability(3)	Trade payables and other liabilities	(135	)	—	—		(135	)
Other	Other non-current assets and liabilities	60		—	106		(46	)

(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 MLSE at a price not less than an agreed minimum price should the Master Trust exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recorded in Other (expense) income in the income statements.

Disclosure of detailed information about hedged items

The following table provides further details on our outstanding foreign currency forward contracts and options as at June 30, 2018.

TYPE OF HEDGE	BUY CURRENCY	AMOUNT TO RECEIVE	SELL CURRENCY	AMOUNT TO PAY	MATURITY	HEDGED ITEM
Cash flow	USD	2,499	CAD	3,244	2018	Commercial paper
Cash flow	USD	450	CAD	584	2018	Anticipated transactions
Cash flow	CAD	46	USD	36	2018-2019	Anticipated transactions
Cash flow	USD	775	CAD	968	2019	Anticipated transactions
Cash flow	USD	76	CAD	96	2020-2021	Anticipated transactions
Economic	USD	19	CAD	24	2018	Anticipated transactions
Economic - call options	USD	33	CAD	41	2018	Anticipated transactions
Economic - put options	USD	99	CAD	119	2018	Anticipated transactions

Disclosure of detailed information about hedging instruments

The following table provides further details on our outstanding foreign currency forward contracts and options as at June 30, 2018.

TYPE OF HEDGE	BUY CURRENCY	AMOUNT TO RECEIVE	SELL CURRENCY	AMOUNT TO PAY	MATURITY	HEDGED ITEM
Cash flow	USD	2,499	CAD	3,244	2018	Commercial paper
Cash flow	USD	450	CAD	584	2018	Anticipated transactions
Cash flow	CAD	46	USD	36	2018-2019	Anticipated transactions
Cash flow	USD	775	CAD	968	2019	Anticipated transactions
Cash flow	USD	76	CAD	96	2020-2021	Anticipated transactions
Economic	USD	19	CAD	24	2018	Anticipated transactions
Economic - call options	USD	33	CAD	41	2018	Anticipated transactions
Economic - put options	USD	99	CAD	119	2018	Anticipated transactions

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Share-based payments (Tables)

6 Months Ended

Jun. 30, 2018

Share-based Payment Arrangements [Abstract]

Explanation of effect of share-based payments on entity's profit or loss

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

	THREE MONTHS				SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2018		2017		2018		2017
Employee savings plan (ESP)	(7	)	(7	)	(14	)	(14	)
Restricted share units (RSUs) and performance share units (PSUs)	(11	)	(10	)	(30	)	(27	)
Other (1)	(2	)	(2	)	(6	)	(5	)
Total share-based payments	(20	)	(19	)	(50	)	(46	)

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

Disclosure of number and weighted average exercise prices of other equity instruments

DSUs

	NUMBER OF DSUs
Outstanding, January 1, 2018	4,309,528
Issued(1)	69,659
Settlement of RSUs/PSUs	112,675
Dividends credited	116,172
Settled	(181,645	)
Outstanding, June 30, 2018	4,426,389

(1) The weighted average fair value of the DSUs issued during the six months ended June 30, 2018 was $55.

ESP

	NUMBER OF ESP SHARES
Unvested contributions, January 1, 2018	1,039,030
Contributions(1)	331,987
Dividends credited	26,960
Vested	(255,867	)
Forfeited	(71,395	)
Unvested contributions, June 30, 2018	1,070,715

(1) The weighted average fair value of the shares contributed during the six months ended June 30, 2018 was $56

RSUs/PSUs

	NUMBER OF RSUs/PSUs
Outstanding, January 1, 2018	2,740,392
Granted(1)	958,411
Dividends credited	71,863
Settled	(1,010,626	)
Forfeited	(20,287	)
Outstanding, June 30, 2018	2,739,753

(1) The weighted average fair value of the RSUs/PSUs granted during the six months ended June 30, 2018 was $57

Disclosure of number and weighted average exercise prices of share options

STOCK OPTIONS

	NUMBER OF OPTIONS		WEIGHTED AVERAGE EXERCISE PRICE ($)
Outstanding, January 1, 2018	10,490,249		55
Granted	3,651,802		57
Exercised(1)	(59,756	)	39
Forfeited	(4,641	)	59
Outstanding, June 30, 2018	14,077,654		56
Exercisable, June 30, 2018	4,606,773		52

(1) The weighted average share price for options exercised during the six months ended June 30, 2018 was $56

Disclosure of indirect measurement of fair value of goods or services received, share options granted during period

The following table shows the principal assumptions used in the valuation.

	2018
Weighted average fair value per option granted	$2.13
Weighted average share price	$57
Weighted average exercise price	$57
Dividend yield	5	%
Expected volatility	12	%
Risk-free interest rate	2	%
Expected life (years)	4

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Adoption of IFRS 15 (Tables)

6 Months Ended

Jun. 30, 2018

Disclosure of revenue from contracts with customers [Abstract]

Adoption of new accounting standards

Adoption of new accounting standards

As required, effective January 1, 2018, we adopted the following new accounting standards.

IFRS 15

We applied IFRS 15, Revenue from Contracts with Customers, retrospectively to each prior reporting period presented. IFRS 15 establishes principles to record revenues from contracts for the sale of products or services, unless the contracts are in the scope of other IFRSs.

IFRS 15 principally affects the timing of revenue recognition and how we classify revenues between product and service in our Bell Wireless segment. IFRS 15 also affects how we account for costs to obtain a contract.

• Under multiple-element arrangements, revenue allocated to a satisfied performance obligation is no longer limited to the amount that is not contingent upon the satisfaction of additional performance obligations. Although the total revenue recognized during the term of a contract is largely unaffected, revenue recognition may be accelerated and reflected ahead of the associated cash inflows. This results in the recognition of a contract asset on the balance sheet, corresponding to the amount of revenue recognized and not yet billed to a customer. The contract asset is realized over the term of the customer contract.

• As revenues allocated to a satisfied performance obligation are no longer limited to the non-contingent amount, a greater proportion of the total revenue recognized during the term of certain customer contracts may be attributed to a delivered product, resulting in a corresponding decrease in service revenue

• Sales commissions and any other incremental costs of obtaining a contract with a customer are recognized on the statement of financial position and amortized on a systematic basis that is consistent with the period and pattern of transfer to the customer of the related products or services, except as noted below

Under IFRS 15, we apply the following practical expedients.

• Completed contracts that begin and end within the same annual reporting period and those completed before January 1, 2017 are not restated

• Contracts modified prior to January 1, 2017 are not restated. The aggregate effect of these modifications is reflected when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price to the satisfied and unsatisfied performance obligations.

• When our right to consideration from a customer corresponds directly with the value to the customer of the products and services transferred to date, we recognize revenue in the amount to which we have a right to invoice. For such contracts and for performance obligations that are part of a contract that has an original expected duration of one year or less, the transaction price amount allocated to the remaining performance obligations and an explanation of when we expect to recognise that amount as revenue are not disclosed.

• Costs of obtaining a contract that would be amortized within one year or less are immediately expensed

IFRS 9

We applied IFRS 9, Financial Instruments (as revised in July 2014) and the related consequential amendments to other IFRSs retrospectively, except for the changes to hedge accounting described below which are applied prospectively. In accordance with the transition requirements, comparative periods have not been restated. The adoption of IFRS 9 did not have a significant impact on the carrying amounts of our financial instruments as at January 1, 2018. As a result of the adoption of IFRS 9, our January 1, 2018 deficit increased by $4 million.

IFRS 9 replaces the classification and measurement models in IAS 39, Financial Instruments: Recognition and Measurement, with a single model under which financial assets are classified and measured at amortized cost, fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVTPL). This classification is based on the business model in which a financial asset is managed and its contractual cash flow characteristics and eliminates the IAS 39 categories of held-to-maturity, loans and receivables and available-for-sale. The adoption of IFRS 9 did not, however, change the measurement bases of our financial assets.

• Cash and cash equivalents and derivative instruments measured at FVTPL under IAS 39 continue to be measured as such under IFRS 9

• Portfolio investments in equity securities and certain derivative instruments that qualify for cash flow hedge accounting measured at FVOCI under IAS 39 continue to be measured as such under IFRS 9

• Trade and other receivables continue to be measured at amortized cost under IFRS 9

The impairment of financial assets under IFRS 9 is based on an expected credit loss (ECL) model, as opposed to the incurred loss model in IAS 39. IFRS 9 applies to financial assets measured at amortized cost and contract assets and requires that we consider factors that include historical, current and forward-looking information when measuring the ECL. We use the simplified approach for measuring losses based on the lifetime ECL for trade receivables and contract assets. Amounts considered uncollectible are written off and recognized in Operating costs in the income statement.

We have adopted the general hedge accounting model in IFRS 9 which requires that we ensure hedge accounting relationships are consistent with our risk management objectives and strategies. We also apply a more qualitative and forward-looking approach in assessing hedge effectiveness as a retrospective assessment is no longer required.

• Under IFRS 9, amounts related to cash flow hedges of anticipated purchases of non-financial assets settled during the period are reclassified from Accumulated other comprehensive income to the initial cost of the non-financial asset when it is recognized. Under IAS 39, such amounts were reclassified from Other comprehensive income. Amounts related to cash flow hedges of other anticipated purchases continue to be reclassified from Other comprehensive income to net earnings under IFRS 9.

The table below shows the impacts of adopting IFRS 15 on our previously reported consolidated income statements for the three and six months ended June 30, 2017.

	THREE MONTHS ENDED JUNE 30, 2017						SIX MONTHS ENDED JUNE 30, 2017
(IN MILLIONS OF CANADIAN DOLLARS, EXCEPT SHARE AMOUNTS)	2017 as previously reported		IFRS 15 impacts		2017 upon adoption of IFRS 15		2017 as previously reported		IFRS 15 impacts		2017 upon adoption of IFRS 15
Operating revenues	5,699		(11	)	5,688		11,083		(59	)	11,024
Operating costs	(3,318	)	12		(3,306	)	(6,488	)	12		(6,476	)
Severance, acquisition and other costs	(36	)	—		(36	)	(120	)	—		(120	)
Depreciation	(769	)	2		(767	)	(1,491	)	—		(1,491	)
Amortization	(211	)	1		(210	)	(396	)	1		(395	)
Finance costs
Interest expense	(238	)	—		(238	)	(472	)	—		(472	)
Interest on post-employment benefit obligations	(18	)	—		(18	)	(36	)	—		(36	)
Other (expense) income	(1	)	—		(1	)	16		—		16
Income taxes	(297	)	(1	)	(298	)	(560	)	12		(548	)
Net earnings	811		3		814		1,536		(34	)	1,502
Net earnings attributable to:
Common shareholders	762		3		765		1,441		(34	)	1,407
Preferred shareholders	32		—		32		63		—		63
Non-controlling interest	17		—		17		32		—		32
Net earnings	811		3		814		1,536		(34	)	1,502
Net earnings per common share - basic and diluted	0.84		0.01		0.85		1.62		(0.04	)	1.58
Average number of common shares outstanding - basic (millions)	900.1		—		900.1		888.0		—		888.0

The table below shows the impacts of adopting IFRS 15 on select line items of our previously reported 2017 statement of cash flows for the three and six months ended June 30, 2017.

	THREE MONTHS ENDED JUNE 30, 2017				SIX MONTHS ENDED JUNE 30, 2017
	2017 as previously reported	IFRS 15 impacts		2017 upon adoption of IFRS 15	2017 as previously reported	IFRS 15 impacts		2017 upon adoption of IFRS 15
Cash flows from operating activities
Net earnings	811	3		814	1,536	(34	)	1,502
Depreciation and amortization	980	(3	)	977	1,887	(1	)	1,886
Income taxes	297	1		298	560	(12	)	548
Net change in operating assets and liabilities	242	(1	)	241	8	47		55
Cash flows from operating activities	2,154	—		2,154	3,467	—		3,467

Disclosure of disaggregation of revenue from contracts with customers

The table below provides a reconciliation of our deficit at June 30, 2017 from amounts previously reported in 2017 to the amounts reported under IFRS 15. All amounts are after tax.

	AT JUNE 30, 2017
Total deficit as previously reported	(6,466	)
Timing of revenue recognition	777
Cost to obtain a contract	251
Total deficit upon adoption of IFRS 15	(5,438	)

XML

Basis of presentation and significant accounting policies (Details) $ in Millions	Jan. 01, 2018 CAD ($)
IFRS 9
Disclosure of expected impact of initial application of new standards or interpretations [line items]
Increase through appropriation of deficit	$ 4

XML

Business acquisitions and dispositions - Acquisiton of AlarmForce Industries Inc. Narrative (Details) customer in Thousands, $ in Millions		3 Months Ended		6 Months Ended
	Jan. 05, 2018 CAD ($) shares customer	Jun. 30, 2018 CAD ($)	Jun. 30, 2017 CAD ($)	Jun. 30, 2018 CAD ($)	Jun. 30, 2017 CAD ($)
Disclosure of detailed information about business combination [line items]
Disposition of intangibles and other assets		$ 0	$ 323	$ 68	$ 323
AlarmForce
Disclosure of detailed information about business combination [line items]
Consideration transferred, acquisition-date fair value	$ 182
Cash consideration	181
Equity interests of acquirer	$ 1
Number of shares transferred (in shares) | shares	22,531
Revenue of acquiree since acquisition date				26
Profit (loss) of acquiree since acquisition date				$ 2
Customer accounts | AlarmForce
Disclosure of detailed information about business combination [line items]
Number of customer accounts | customer	39
Disposition of intangibles and other assets	$ 68

XML

Business acquisitions and dispositions - Summary of Acquisition of AlarmForce Industries Inc. (Details) - CAD ($) $ in Millions	Jun. 30, 2018	Jan. 05, 2018	Dec. 31, 2017
Disclosure of detailed information about business combination [line items]
Goodwill	$ 10,568		$ 10,428
AlarmForce
Disclosure of detailed information about business combination [line items]
Cash consideration		$ 181
Issuance of 22,531 BCE common shares		1
Total cost to be allocated		182
Assets held for sale		68
Property, plant and equipment		8
Finite-life intangible assets		34
Indefinite-life intangible assets		1
Deferred tax liabilities		(7)
Other non-current liabilities		(1)
Total costs to be allocated, excluding cash and cash equivalents and goodwill		103
Cash and cash equivalents		4
Fair value of net assets acquired		107
Goodwill		$ 75

XML

Business acquisitions and dispositions - Future Business Acquisitions (Details) $ in Millions	Aug. 31, 2018 CAD ($)
Major business combination
Disclosure of detailed information about business combination [line items]
Consideration transferred, acquisition-date fair value	$ 152

XML

Business acquisitions and dispositions - Acquisition of MTS Narrative (Details) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018 CAD ($)	Jun. 30, 2017 CAD ($) location	Jun. 30, 2018 CAD ($)	Jun. 30, 2017 CAD ($)	Mar. 17, 2017 CAD ($) shares
Disclosure of detailed information about business combination [line items]
Revenue of combined entity as if combination occurred at beginning of period				$ 11,217
Profit (loss) of combined entity as if combination occurred at beginning of period				1,513
Percentage of postpaid subscribers sold		25.00%
Number of retail locations sold | location		15
Proceeds from divestiture of businesses	$ 0	$ 323	$ 68	323
MTS
Disclosure of detailed information about business combination [line items]
Total consideration					$ 2,933
Cash consideration					1,339
Stock transferred					$ 1,594
Number of shares transferred (in shares) | shares					27.6
Revenue of acquiree since acquisition date				271
Profit (loss) of acquiree since acquisition date				$ 38

XML

Business acquisitions and dispositions - Acquisition of Cieslok Media Ltd. Narrative (Details) $ in Millions	Jan. 03, 2017 CAD ($)
Cieslok Media
Disclosure of detailed information about business combination [line items]
Cash consideration	$ 161

XML

Segmented information - Segmented Information (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018 CAD ($)	Jun. 30, 2017 CAD ($)	Jun. 30, 2018 CAD ($) segment	Jun. 30, 2017 CAD ($)
Operating Segments [Abstract]
Number of operating segments | segment			3
Disclosure of operating segments [line items]
Operating revenues	$ 5,786	$ 5,688	$ 11,376	$ 11,024
Operating costs	(3,356)	(3,306)	(6,692)	(6,476)
Segment profit	2,430	2,382	4,684	4,548
Severance, acquisition and other costs	(24)	(36)	(24)	(120)
Depreciation and amortization	(1,008)	(977)	(2,000)	(1,886)
Interest expense	(246)	(238)	(486)	(472)
Interest on post-employment benefit obligations	(17)	(18)	(34)	(36)
Other income (expense)	(88)	(1)	(149)	16
Income taxes	(292)	(298)	(527)	(548)
Net earnings	755	814	1,464	1,502
BELL WIRELESS
Disclosure of operating segments [line items]
Operating revenues	2,032	1,938	3,966	3,694
Severance, acquisition and other costs	(3)	0	(6)	(5)
Depreciation and amortization	(165)	(143)	(325)	(281)
BELL WIRELINE
Disclosure of operating segments [line items]
Operating revenues	3,077	3,067	6,102	5,995
Severance, acquisition and other costs	(13)	(35)	(8)	(102)
Depreciation and amortization	(803)	(796)	(1,598)	(1,532)
BELL MEDIA
Disclosure of operating segments [line items]
Operating revenues	677	683	1,308	1,335
Severance, acquisition and other costs	(8)	(1)	(10)	(13)
Depreciation and amortization	(40)	(38)	(77)	(73)
Operating segments | BELL WIRELESS
Disclosure of operating segments [line items]
Operating revenues	2,046	1,949	3,992	3,716
Operating costs	(1,142)	(1,098)	(2,266)	(2,096)
Segment profit	904	851	1,726	1,620
Operating segments | BELL WIRELINE
Disclosure of operating segments [line items]
Operating revenues	3,135	3,117	6,219	6,094
Operating costs	(1,814)	(1,810)	(3,596)	(3,524)
Segment profit	1,321	1,307	2,623	2,570
Operating segments | BELL MEDIA
Disclosure of operating segments [line items]
Operating revenues	791	796	1,540	1,547
Operating costs	(586)	(572)	(1,205)	(1,189)
Segment profit	205	224	335	358
Intersegment eliminations
Disclosure of operating segments [line items]
Operating revenues	(186)	(174)	(375)	(333)
Operating costs	186	174	375	333
Intersegment eliminations | BELL WIRELESS
Disclosure of operating segments [line items]
Operating revenues	14	11	26	22
Intersegment eliminations | BELL WIRELINE
Disclosure of operating segments [line items]
Operating revenues	58	50	117	99
Intersegment eliminations | BELL MEDIA
Disclosure of operating segments [line items]
Operating revenues	$ 114	$ 113	$ 232	$ 212

XML

Segmented information - Revenue by Services and Products (Details) - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disclosure of products and services [line items]
Revenue from rendering of services	$ 5,129	$ 5,078	$ 10,093	$ 9,889
Revenue from sale of goods	657	610	1,283	1,135
Revenue	5,786	5,688	11,376	11,024
Wireless
Disclosure of products and services [line items]
Revenue from rendering of services	1,562	1,508	3,062	2,923
Revenue from sale of goods	470	430	904	771
Data
Disclosure of products and services [line items]
Revenue from rendering of services	1,869	1,812	3,689	3,531
Revenue from sale of goods	98	95	202	194
Voice
Disclosure of products and services [line items]
Revenue from rendering of services	957	1,020	1,907	2,001
Media
Disclosure of products and services [line items]
Revenue from rendering of services	677	683	1,308	1,335
Other services
Disclosure of products and services [line items]
Revenue from rendering of services	64	55	127	99
Equipment and other
Disclosure of products and services [line items]
Revenue from sale of goods	$ 89	$ 85	$ 177	$ 170

XML

Operating costs (Details) - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Labour costs
Wages, salaries and related taxes and benefits	$ (1,090)	$ (1,072)	$ (2,148)	$ (2,075)
Post-employment benefit plans service cost (net of capitalized amounts)	(63)	(64)	(136)	(114)
Other employee expense	(262)	(264)	(510)	(517)
Less:
Capitalized labour	288	268	543	513
Total labour costs	(1,127)	(1,132)	(2,251)	(2,193)
Cost of revenues	(1,720)	(1,678)	(3,430)	(3,305)
Other operating costs	(509)	(496)	(1,011)	(978)
Total operating costs	$ (3,356)	$ (3,306)	$ (6,692)	$ (6,476)

XML

Severance, acquisition and other costs (Details) - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Analysis of income and expense [abstract]
Severance	$ (15)	$ (16)	$ (24)	$ (47)
Acquisition and other	(9)	(20)	0	(73)
Total severance, acquisition and other costs	$ (24)	$ (36)	$ (24)	$ (120)

XML

Other (expense) income (Details) - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Analysis of income and expense [abstract]
Net mark-to-market gains on derivatives used as economic hedges	$ (30)	$ 1	$ (107)	$ 25
Equity (losses) income from investments in associates and joint ventures
Losses on investments	(20)	0	(20)	(2)
Operations	(20)	12	(3)	31
Early debt redemption costs	(18)	(4)	(18)	(4)
Impairment of assets	0	0	(4)	0
Losses on retirements and disposals of property, plant and equipment and intangible assets	(2)	(9)	(1)	(26)
Losses on investments	0	0	0	(12)
Other	2	(1)	4	4
Total other (expense) income	$ (88)	$ (1)	$ (149)	$ 16

XML

Earnings per share (Details) - CAD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings per share [abstract]
Net earnings attributable to common shareholders - basic	$ 704	$ 765	$ 1,365	$ 1,407
Dividends declared per common share (in dollars) (CAD Per Share)	$ 0.755	$ 0.7175	$ 1.51	$ 1.435
Weighted average number of common shares outstanding (in millions)
Average number of common shares outstanding - basic (millions) (in shares)	898,000,000	900,100,000	899,100,000	888,000,000
Dilutive effect of share options on number of ordinary shares (in shares)	300,000	900,000	300,000	800,000
Average number of common shares outstanding - basic (millions) (in shares)	898,300,000	901,000,000	899,400,000	888,800,000
Shares excluded from calculation of earnings per share (in shares)	12,050,731	31,722	12,050,731	5,803,983

XML

Debt - Narrative (Details)			3 Months Ended		6 Months Ended
	May 04, 2018 CAD ($)	Apr. 16, 2018 CAD ($)	Jun. 30, 2018 CAD ($)	Jun. 30, 2017 CAD ($)	Jun. 30, 2018 CAD ($)	Jun. 30, 2017 CAD ($)	Mar. 29, 2018 CAD ($)	Mar. 29, 2018 USD ($)	Mar. 12, 2018 CAD ($)
Disclosure of detailed information about borrowings [line items]
Early debt redemption costs			$ 18,000,000	$ 4,000,000	$ 18,000,000	$ 4,000,000
Series M-28 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Principal amount redeemed	$ 400,000,000
Series M-28 Medium-Term Notes | Fixed interest rate
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)	3.50%
Series 9 Notes
Disclosure of detailed information about borrowings [line items]
Principal amount redeemed		$ 200,000,000
Series 9 Notes | Fixed interest rate
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)		4.59%
Series M-33 Debentures
Disclosure of detailed information about borrowings [line items]
Principal amount redeemed		$ 300,000,000
Series M-33 Debentures | Fixed interest rate
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)		5.52%
Series M-25 Debentures
Disclosure of detailed information about borrowings [line items]
Principal amount			$ 1,000,000,000		$ 1,000,000,000
Series M-25 Debentures | Fixed interest rate
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)			3.35%		3.35%
Series US-1 Notes
Disclosure of detailed information about borrowings [line items]
Principal amount							$ 967,000,000	$ 750,000,000
Series US-1 Notes | Fixed interest rate
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)							4.464%	4.464%
Series M-47 Medium-Term Notes
Disclosure of detailed information about borrowings [line items]
Principal amount									$ 500,000,000
Series M-47 Medium-Term Notes | Fixed interest rate
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)									3.35%

XML

Post-employee benefit plans - Service cost (Details) - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disclosure of defined benefit plans [line items]
DC pension	$ (24)	$ (24)	$ (57)	$ (55)
Plan amendment gain on OPEBs	0	0	0	16
Less: Capitalized benefit plans cost	15	14	29	29
Total post-employment benefit plans service cost included in operating costs	(63)	(64)	(136)	(114)
Other costs recognized in severance, acquisition and other costs	0	(4)	(4)	(4)
Total post-employment benefit plans service cost	(63)	(68)	(140)	(118)
DB pension
Disclosure of defined benefit plans [line items]
Current service cost	(53)	(53)	(106)	(101)
OPEBs
Disclosure of defined benefit plans [line items]
Current service cost	$ (1)	$ (1)	$ (2)	$ (3)

XML

Post-employee benefit plans - Interest cost (Details) - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disclosure of net defined benefit liability (asset) [line items]
Total interest on post-employment benefit obligations	$ (17)	$ (18)	$ (34)	$ (36)
DB pension
Disclosure of net defined benefit liability (asset) [line items]
Total interest on post-employment benefit obligations	(5)	(5)	(11)	(9)
OPEBs
Disclosure of net defined benefit liability (asset) [line items]
Total interest on post-employment benefit obligations	$ (12)	$ (13)	$ (23)	$ (27)

XML

Financial assets and liabilities - Financial instruments measured at amortized cost (Details) - Financial liabilities at amortised cost, category - CAD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
CRTC tangible benefits obligation
Disclosure of financial liabilities [line items]
CARRYING VALUE	$ 79	$ 111
FAIR VALUE	78	110
CRTC deferral account obligation
Disclosure of financial liabilities [line items]
CARRYING VALUE	119	124
FAIR VALUE	121	128
Debt securities, finance leases and other debt
Disclosure of financial liabilities [line items]
CARRYING VALUE	19,868	19,321
FAIR VALUE	$ 21,490	$ 21,298

XML

Financial assets and liabilities - Financial instruments measured at fair value (Details) - CAD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Disclosure of financial assets [line items]
Assets	$ 56,559	$ 55,802
Liabilities	$ (35,835)	(35,177)
Repurchase obligation of trust ownership percentage	9.00%
Maple Leaf Sports & Entertainment Ltd. (MLSE) financial liability
Disclosure of financial assets [line items]
Liabilities	$ (135)	(135)
Maple Leaf Sports & Entertainment Ltd. (MLSE) financial liability | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)
Disclosure of financial assets [line items]
Liabilities	0	0
Maple Leaf Sports & Entertainment Ltd. (MLSE) financial liability | OBSERVABLE MARKET DATA (LEVEL 2)
Disclosure of financial assets [line items]
Liabilities	0	0
Maple Leaf Sports & Entertainment Ltd. (MLSE) financial liability | NON-OBSERVABLE MARKET INPUTS (LEVEL 3)
Disclosure of financial assets [line items]
Liabilities	(135)	(135)
Publicly-traded and privately-held investments
Disclosure of financial assets [line items]
Assets	104	103
Publicly-traded and privately-held investments | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)
Disclosure of financial assets [line items]
Assets	1	1
Publicly-traded and privately-held investments | OBSERVABLE MARKET DATA (LEVEL 2)
Disclosure of financial assets [line items]
Assets	0	0
Publicly-traded and privately-held investments | NON-OBSERVABLE MARKET INPUTS (LEVEL 3)
Disclosure of financial assets [line items]
Assets	103	102
Derivative financial instruments | Derivative financial instruments
Disclosure of financial assets [line items]
Assets (liabilities)	(5)	(48)
Derivative financial instruments | Derivative financial instruments | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)
Disclosure of financial assets [line items]
Assets (liabilities)	0	0
Derivative financial instruments | Derivative financial instruments | OBSERVABLE MARKET DATA (LEVEL 2)
Disclosure of financial assets [line items]
Assets (liabilities)	(5)	(48)
Derivative financial instruments | Derivative financial instruments | NON-OBSERVABLE MARKET INPUTS (LEVEL 3)
Disclosure of financial assets [line items]
Assets (liabilities)	0	0
Other | Other
Disclosure of financial assets [line items]
Assets (liabilities)	70	60
Other | Other | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)
Disclosure of financial assets [line items]
Assets (liabilities)	0	0
Other | Other | OBSERVABLE MARKET DATA (LEVEL 2)
Disclosure of financial assets [line items]
Assets (liabilities)	116	106
Other | Other | NON-OBSERVABLE MARKET INPUTS (LEVEL 3)
Disclosure of financial assets [line items]
Assets (liabilities)	$ (46)	$ (46)

XML

Financial assets and liabilities - Market risk (Details) $ in Millions, $ in Millions	Jun. 30, 2018 CAD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 CAD ($)	Mar. 31, 2018 USD ($)
Currency risk
Disclosure of detailed information about hedged items [line items]
Percentage of possible change in risk variable	10.00%	10.00%
Interest rate risk
Disclosure of detailed information about hedged items [line items]
Percentage of possible change in risk variable	1.00%	1.00%
Reasonably possible change in risk variable impact on net earnings	$ 31
Interest rate swap contract | Interest rate risk | Fair value hedges
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value			$ 967	$ 750
Top of range | Currency risk
Disclosure of detailed information about hedged items [line items]
Reasonably possible change in risk variable impact on net earnings	2
Reasonably possible change in 10% depreciation (appreciation) of the CAD dollar impact on other comprehensive income	139
Bottom of range | Currency risk
Disclosure of detailed information about hedged items [line items]
Reasonably possible change in risk variable impact on net earnings	(3)
Reasonably possible change in 10% depreciation (appreciation) of the CAD dollar impact on other comprehensive income	(134)
2018 | Currency risk | Cash flow | Commercial paper | Amount to receive
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value		$ 2,499
2018 | Currency risk | Cash flow | Commercial paper | Amount to pay
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value	3,244
2018 | Currency risk | Cash flow | Anticipated Transactions [Member] | Amount to receive
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value		450
2018 | Currency risk | Cash flow | Anticipated Transactions [Member] | Amount to pay
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value	584
2018 | Currency risk | Economic | Anticipated Transactions [Member] | Amount to receive
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value		19
2018 | Currency risk | Economic | Anticipated Transactions [Member] | Amount to pay
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value	24
2018 | Purchased call options | Currency risk | Economic | Anticipated Transactions [Member] | Amount to receive
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value		33
2018 | Purchased call options | Currency risk | Economic | Anticipated Transactions [Member] | Amount to pay
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value	41
2018 | Written put options | Currency risk | Economic | Anticipated Transactions [Member] | Amount to receive
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value		99
2018 | Written put options | Currency risk | Economic | Anticipated Transactions [Member] | Amount to pay
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value	119
2018 - 2019 | Currency risk | Cash flow | Anticipated Transactions [Member] | Amount to receive
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value	46
2018 - 2019 | Currency risk | Cash flow | Anticipated Transactions [Member] | Amount to pay
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value		36
2019 | Currency risk | Cash flow | Anticipated Transactions [Member] | Amount to receive
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value		775
2019 | Currency risk | Cash flow | Anticipated Transactions [Member] | Amount to pay
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value	968
2020 - 2021 | Currency risk | Cash flow | Anticipated Transactions [Member] | Amount to receive
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value		$ 76
2020 - 2021 | Currency risk | Cash flow | Anticipated Transactions [Member] | Amount to pay
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value	$ 96

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Financial assets and liabilities - Interest rate exposures (Details) - Interest rate risk $ in Millions	Jun. 30, 2018 CAD ($)
Disclosure of detailed information about hedging instruments [line items]
Percentage of possible change in risk variable	1.00%
Reasonably possible change in risk variable impact on net earnings	$ 31

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Financial assets and liabilities - Equity price exposures (Details) - Equity price risk $ in Millions	Jun. 30, 2018 CAD ($)
Disclosure of detailed information about hedging instruments [line items]
Percentage of possible change in risk variable	5.00%
Reasonably possible change in risk variable impact on net earnings	$ 33
Forward contract | Settlement of share-based compensation plans
Disclosure of detailed information about hedging instruments [line items]
Financial instruments designated as hedging instruments, at fair value	$ 85

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Share capital - Narrative (Details) $ in Millions			3 Months Ended	4 Months Ended
	Mar. 01, 2018 shares	Feb. 28, 2018	Mar. 31, 2018 CAD ($) shares	Jun. 30, 2018
Disclosure of classes of share capital [line items]
Stock repurchased during period (in shares)			3,085,697
Value of stock repurchased during period | $			$ 175
Series AC Convertible Preference Shares
Disclosure of classes of share capital [line items]
Dividend rate reset term				5 years
SHARES ISSUED
Disclosure of classes of share capital [line items]
Value of stock repurchased during period | $			69
CONTRI-BUTED SURPLUS
Disclosure of classes of share capital [line items]
Value of stock repurchased during period | $			3
DEFICIT
Disclosure of classes of share capital [line items]
Value of stock repurchased during period | $			$ 103
Major ordinary share transactions | Series AC Convertible Preference Shares
Disclosure of classes of share capital [line items]
Conversion of stock, shares converted (in shares)	397,181
Number of shares outstanding (in shares)	5,069,935
Share conversion ratio	1
Annual dividend rate	4.38%	3.55%
Major ordinary share transactions | Series AD Convertible Preference Shares
Disclosure of classes of share capital [line items]
Conversion of stock, shares converted (in shares)	5,356,937
Number of shares outstanding (in shares)	14,930,065
Share conversion ratio	1

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Share-based payments - Share-based payment Amounts Included in the Income Statements as Operating Costs (Details) - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disclosure of terms and conditions of share-based payment arrangement [line items]
Total share-based payments	$ (20)	$ (19)	$ (50)	$ (46)
Employee savings plan (ESP)
Disclosure of terms and conditions of share-based payment arrangement [line items]
Total share-based payments	(7)	(7)	(14)	(14)
Restricted share units (RSUs) and performance share units (PSUs)
Disclosure of terms and conditions of share-based payment arrangement [line items]
Total share-based payments	(11)	(10)	(30)	(27)
Other
Disclosure of terms and conditions of share-based payment arrangement [line items]
Total share-based payments	$ (2)	$ (2)	$ (6)	$ (5)

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Share-based payments - ESP Option Activity (Details) - ESP	6 Months Ended
	Jun. 30, 2018 CAD ($) shares
Disclosure of terms and conditions of share-based payment arrangement [line items]
Unvested contributions, January 1, 2018 (in shares)	1,039,030
Granted (in shares)	331,987
Dividends credited (in shares)	26,960
Vested (in shares)	(255,867)
Forfeited (in shares)	(71,395)
Unvested contributions, June 30, 2018 (in shares)	1,070,715
Weighted average fair value at measurement date, other equity instruments granted | $	$ 56

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Share-based payments - Outstanding RSUs/PSUs Activity (Details) - Restricted share units (RSUs) and performance share units (PSUs)	6 Months Ended
	Jun. 30, 2018 CAD ($) shares
Disclosure of terms and conditions of share-based payment arrangement [line items]
Outstanding, January 1, 2018 (in shares)	2,740,392
Granted (in shares)	958,411
Dividends credited (in shares)	71,863
Settled (in shares)	(1,010,626)
Forfeited (in shares)	(20,287)
Outstanding, June 30, 2018 (in shares)	2,739,753
Weighted average fair value at measurement date, other equity instruments granted | $	$ 57

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Share-based payments - Outstanding DSUs Activity (Details) - Deferred Stock Units (DSU)	6 Months Ended
	Jun. 30, 2018 CAD ($) shares
Disclosure of terms and conditions of share-based payment arrangement [line items]
Outstanding, January 1, 2018 (in shares)	4,309,528
Issued (in shares)	69,659
Settlement of RSUs/PSUs (in shares)	112,675
Dividends credited (in shares)	116,172
Settled (in shares)	(181,645)
Outstanding, June 30, 2018 (in shares)	4,426,389
Weighted average fair value at measurement date, other equity instruments granted | $	$ 55

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Share-based payments - Outstanding Stock Options (Details)	6 Months Ended
	Jun. 30, 2018 CAD ($) shares $ / shares
Share-based Payment Arrangements [Abstract]
Outstanding, January 1, 2018 (in shares) | shares	10,490,249
Granted (in shares) | shares	3,651,802
Exercised (in shares) | shares	(59,756)
Forfeited (in shares) | shares	(4,641)
Outstanding, June 30, 2018 (in shares) | shares	14,077,654
Exercisable, June 30, 2018 (in shares) | shares	4,606,773
Weighted average exercise price of share options outstanding, beginning balance (CAD per share) | $	$ 55
Weighted average exercise price of share options granted (CAD per share) | $	57
Weighted average exercise price of share options exercised (CAD per share) | $	39
Weighted average exercise price of share options forfeited (CAD per share) | $	59
Weighted average exercise price of share options outstanding, ending balance (CAD per share) | $	56
Weighted average exercise price of share options exercisable at December 31 (CAD per share) | $	$ 52
Weighted average share price, share options exercised (CAD per share) | $ / shares	$ 56

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Share-based payments - Fair Value Assumptions (Details)	6 Months Ended
	Jun. 30, 2018 CAD ($) year
Share-based Payment Arrangements [Abstract]
Weighted average fair value per option granted (CAD per share)	$ 2.13
Weighted average share price (CAD per share)	57
Weighted average exercise price (CAD per share)	$ 57
Dividend yield	5.00%
Expected volatility	12.00%
Risk-free interest rate	2.00%
Expected life (years) | year	4

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Adoption of IFRS 15 - Consolidated income statements (Details) - CAD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disclosure of initial application of standards or interpretations [line items]
Operating revenues	$ 5,786	$ 5,688	$ 11,376	$ 11,024
Operating costs	(3,356)	(3,306)	(6,692)	(6,476)
Severance, acquisition and other costs	(24)	(36)	(24)	(120)
Depreciation	(787)	(767)	(1,567)	(1,491)
Amortization	(221)	(210)	(433)	(395)
Interest expense	(246)	(238)	(486)	(472)
Interest on post-employment benefit obligations	(17)	(18)	(34)	(36)
Other (expense) income	(88)	(1)	(149)	16
Income taxes	(292)	(298)	(527)	(548)
Net earnings	755	814	1,464	1,502
Common shareholders	704	765	1,365	1,407
Preferred shareholders	35	32	71	63
Non-controlling interest	$ 16	$ 17	$ 28	$ 32
Net earnings per common share - basic and diluted (cad per share)	$ 0.79	$ 0.85	$ 1.52	$ 1.58
Average number of common shares outstanding - basic (millions) (in shares)	898.0	900.1	899.1	888.0
2017 as previously reported | IFRS 15
Disclosure of initial application of standards or interpretations [line items]
Operating revenues		$ 5,699		$ 11,083
Operating costs		(3,318)		(6,488)
Severance, acquisition and other costs		(36)		(120)
Depreciation		(769)		(1,491)
Amortization		(211)		(396)
Interest expense		(238)		(472)
Interest on post-employment benefit obligations		(18)		(36)
Other (expense) income		(1)		16
Income taxes		(297)		(560)
Net earnings		811		1,536
Common shareholders		762		1,441
Preferred shareholders		32		63
Non-controlling interest		$ 17		$ 32
Net earnings per common share - basic and diluted (cad per share)		$ 0.84		$ 1.62
Average number of common shares outstanding - basic (millions) (in shares)		900.1		888.0
IFRS 15 impacts | IFRS 15
Disclosure of initial application of standards or interpretations [line items]
Operating revenues		$ (11)		$ (59)
Operating costs		12		12
Severance, acquisition and other costs		0		0
Depreciation		2		0
Amortization		1		1
Interest expense		0		0
Interest on post-employment benefit obligations		0		0
Other (expense) income		0		0
Income taxes		(1)		12
Net earnings		3		(34)
Common shareholders		3		(34)
Preferred shareholders		0		0
Non-controlling interest		$ 0		$ 0
Net earnings per common share - basic and diluted (cad per share)		$ 0.01		$ (0.04)
Average number of common shares outstanding - basic (millions) (in shares)		0.0		0.0

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Adoption of IFRS 15 - Reconciliation of Deficit (Details) - CAD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Disclosure of disaggregation of revenue from contracts with customers [line items]
Deficit	$ (4,811)	$ (4,938)	$ (5,438)
2017 as previously reported
Disclosure of disaggregation of revenue from contracts with customers [line items]
Deficit			(6,466)
Increase (Decrease) Due to Application of IFRS 15, Timing of Revenue Recognition
Disclosure of disaggregation of revenue from contracts with customers [line items]
Deficit			777
Increase (Decrease) Due to Application of IFRS 15, Cost to Obtain a Contract
Disclosure of disaggregation of revenue from contracts with customers [line items]
Deficit			$ 251

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Adoption of IFRS 15 - Consolidated statements of cash flows (Details) - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disclosure of initial application of standards or interpretations [line items]
Net earnings	$ 755	$ 814	$ 1,464	$ 1,502
Depreciation and amortization	1,008	977	2,000	1,886
Income taxes	292	298	527	548
Net change in operating assets and liabilities	174	241	85	55
Cash flows from operating activities	$ 2,057	2,154	$ 3,553	3,467
2017 as previously reported | IFRS 15
Disclosure of initial application of standards or interpretations [line items]
Net earnings		811		1,536
Depreciation and amortization		980		1,887
Income taxes		297		560
Net change in operating assets and liabilities		242		8
Cash flows from operating activities		2,154		3,467
IFRS 15 impacts | IFRS 15
Disclosure of initial application of standards or interpretations [line items]
Net earnings		3		(34)
Depreciation and amortization		(3)		(1)
Income taxes		1		(12)
Net change in operating assets and liabilities		(1)		47
Cash flows from operating activities		$ 0		$ 0

XML

Label	Element	Value
Increase (decrease) due to changes in accounting policy required by IFRSs [member]
Equity	ifrs-full_Equity	$ (4,000,000)
Accumulated other comprehensive income [member]
Equity	ifrs-full_Equity	(17,000,000)
Retained earnings [member]
Equity	ifrs-full_Equity	(4,942,000,000)
Retained earnings [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member]
Equity	ifrs-full_Equity	(4,000,000)
Share premium [member]
Equity	ifrs-full_Equity	1,162,000,000
Equity attributable to owners of parent [member]
Equity	ifrs-full_Equity	20,298,000,000
Equity attributable to owners of parent [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member]
Equity	ifrs-full_Equity	(4,000,000)
Non-controlling interests [member]
Equity	ifrs-full_Equity	323,000,000
Preference shares [member] | Issued capital [member]
Equity	ifrs-full_Equity	4,004,000,000
Ordinary shares [member] | Issued capital [member]
Equity	ifrs-full_Equity	$ 20,091,000,000