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Strategy
StrategyEnglish

We have one goal: To be recognized by customers as Canada’s leading communication’s company.

To achieve that goal, Bell is making significant investments in developing and delivering the most innovative communications and media services to Canadians across any screen they choose: television, Smartphone, tablet and computer. In that way, we will continue to create value for our shareholders and rewarding careers for our team members, while ensuring we have the financial strength to fulfill our Bell Let’s Talk charitable commitment to mental health and multiple sponsorship programs across the country.

Our Strategy focuses on 6 imperatives:

1. Accelerate wireless :

Accelerate wireless : Investment and innovation have always been part of Bell’s wireless history, but we are accelerating both of these advantages more than ever. Bell continuously improves our wireless networks, enhances our leading product line-up and broadens our unmatched mobile TV and live sports programming to meet the demand for innovation in an intensely competitive industry.

To power our wireless growth, Bell’s 4G LTE (Long-Term Evolution) network is continually expanding to more urban areas and enabling the fastest speeds possible and HD quality TV and video to mobile device users.We have also continued to improve our HSPA + network – already the best in the country – so that it now covers 97% of the population. In addition, our HSPA + Dual Cell technology now covers 70% of the HSPA + footprint, effectively doubling the network’s data transfer speed.

As a result, Bell attracted more postpaid new customers than the other two major carriers in 2011. Most of them bought high-revenue-generating smart phones which now represent just under half of our postpaid subscriber base, an increase of more than 70% in one year.

To help customers make the most of these powerful devices, we enhanced our Bell Mobile TV service, including more live sports from TSN, TSN2 and RDS – the most – watched English and French specialty channels in Canada – live content from CTV News Channels and MTV and on-demand content from The Comedy Network. Bell Mobile TV also upgraded its exclusive sports line-up, adding the Montréal Canadians, Vancouver Whitecaps, NFL football and NHL Stanley Cup playoff games to its roster.

Bell offers customers even more choice through brands such as Virgin Mobile, and brings its devices closer to customers through the most extensive distribution network in the industry thanks to the reach of The Source’s network of stores, as well as retail partner and dealer locations across Canada.

2. Leverage wire line momentum :

Leverage wire line momentum : Bell’s investment in broadband fiber networks is enabling the company to break new ground with growth services such as Fibe TV. it also solidifies our ability to succeed at our triple-play strategybundling Television, Internet and Home Phone to provide complete communications services to a growing number of residential customer households.

Our fiber network investment has enabled us to reach about 2 million households in Montréal and Toronto. As a result, Fibe TV – a service that surpasses cable TV quality and features – is gaining significant traction in the market.

Fibe TV complements our well-established Bell Satellite TV service, providing real consumer choice and competition in urban markets where cable has long had the largest market share. We are the industry leader in high-definition TV, offering more than 100 HD channels.

That progress enabled us to increase our triple-play household penetration 11% in 2011.

Bell Business Markets (BBM) provides a full range of communications services – including industry – leading information and communications technology (ICT) service – to companies and government organizations of all sizes.

We have invested hundreds of millions of dollars in a national netwrok of data centres that provide Bell corporate and government customers with co-location, managed hosting and next-generation cloud computing services, such as software as a service and hosted unified communications. Bell is consistently ranked among the top providers of managed information services in North America.

Bell’s network leadership gives it a firm foundation to serve both consumers and business. For consumers, Bell means the fastest digital TV and Internet services. For organizations of all sizes, Bell means unmatched experience and expertise in everything from connectivity to cloud computing

3. Expand media leadership :

Expand media leadership : Bell Media, which has the mandate to leverage BCE’s investments in broadband networks and deliver the content Canadians most want across 4 screens: television, Smartphone, tablet and computer.

Bell Media includes a broad range of assets led by CTV, Canada’s #1 television network, and CTV Two. It also manages 30 specialty channels, including BNN – Business News Network, Discovery Channel, Much, MTV, The Comedy Network, SPACE, and TSN and RDS.

CTV consistently reported top audience ratings in all seasons in 2011, holding a majority of the top 20 programs nationally among all viewers.

Bell Media also offers Canada’s top English and French – language specialty channels and more than 30 radio stations, including TSN Radio 1050 Toronto, TSN Radio 990 Montreal and TSN Radio 1290 in Winnipeg as well as Bell’s popular Sympatico.ca portal.

Among its innovations, Bell Media provides the best mobile media available in the Canadian industry including live broadcasts of the NHL, the Super Bowl and a huge variety of live or on-demand programming from TSN, RDS, BNN, MTV and the Comedy Network.

As part of the purchase, Bell implemented a package potentially worth about $240 million to support the development of independently produced Canadian programming including dramas, documentaries, new media and extended news across Western Canada.

Bell augmented sports content leadership – which already included an ownership position in the Montréal Canadiens – with an investment in joint ownership of Canada’s largest sports and entertainment company, Maple Leaf Sports and Entertainment (MLSE) in a deal expected to close in 2012. MLSE includes the Toronto Maple Leafs, Toronto Raptors, Toronto Marlies, Toronto FC and major real estate and entertainment assets such as the Air Canada Centre and the Maple Leaf Square condominium and commercial complex.

4. Invest in broadband networks and services :

Invest in broadband networks and services : A Canadian leader in R&D and broadband infrastructure spending, BCE invested more than $3.2 billion in network and technology in 2011. These investments in network reach, speed and capacity enable significant customer benefits plus revenue growth in services such as Bell Fibe and Satellite TV, Fibe Internet, wireless, data hosting and cloud computing solutions for business.

Our world – leading HSPA + network covers more than 97% of the population. More than 70% of that network is fitted with HSPA + Dual Cell technology which doubles the network’s data transfer speed up to 42 Mbps.

In 2011, Bell launched its super fast 4G LTE (Long – Term Evolution) network, available in most major urban centres. This initially provides average speeds of 12 to 25 Mbps, but as the network and devices evolve, it will support speeds approaching 150 Mbps.

Our wireless networks now regulary carry more than a billion text messages a week with data traffic up 225% year over year on our HSPA + network.

We also continue to rapidly expand and enhance our wire line fiber network to deliver Fibe TV and Fibe Internet services. In 2011, we extended next – generation Fibe TV to a total of about 2 million homes covering most areas in Montréal and Toronto. We expect to reach about 3.3 million homes by the end of 2012.

We are deploying fiber – to – home (FTTH) in all new housing developments in Ontario and Québec and will accelerate the FTTH coverage to every home and business in the Québec City region in 2012 in Canada’s largest urban FTTH project. We are also aggressively stepping up our programs to take fiber to apartment buildings and condominiums.

With our significant investments in a national network of data management centres for business, Bell leads the Canadian industry in building a broadband infrastructure to support increased innovation and productivity for Canadians and strong ongoing growth for BCE.

5. Achieve a competitive cost structure :

Achieve a competitive cost structure : Bell’s commitment to drive productivity  gains and reduce spending gives the company greater financial flexibility to invest in industry -leading investments in networks, products and content as well as accelerating shareholder value.

In just four years, we have reduced spending or improved efficiencies to produce total savings of $980 million with the results from the last two years surpassing those of the first two. Cost saving and efficiency have become a way of life at Bell as we have become increasingly effective at managing priorities.

In 2011, we found about $290 million in savings through a variety of initiatives, including $100 million in full-year annual savings as several business units restructured tooperate more effectively and management teams assumed broader spans of responsibility.

We also found significant operating efficiencies. In Field Services, for example, we deployed software that puts almost a dozen different teams on a common productivity tracking platform and integrated teams from different parts of the business. We also generated savings by renegotiating vendor contracts and by making the most of synergies that occurred when Bell Media integrated into Bell.

In all this, we made sure not to affect the customer experience. Because of the savings we uncovered, we were able to deploy more resources to serve customers, including the hiring of more than 1,000 technicians to support the expansion of our fiber networks and the growth of new services such as Fibe TV.

We also maintained rigorous control on discretionary spending, encouraging our team to use teleconferences and videoconferences instead of travel. And by making a voluntary $750 million payment to our defined benefit pension plan, we created significant tax savings.

6. Improve customer service :

Improve customer service : Because we understand that customers have more choices than ever before, Bell is investing heavily to improve our front-line service capabilities, our products and our distribution channels to win and keep customers in a highly competitive market.

Bell’s investment of more than $100 million in 2011 alone focused on improving call centre technology, call routing and self-serve online options for customers as well as on billing and simplified desktop systems for service teams to deliver a better experience to every customer.

We introduced a fast track for residential customers to get live help to walk through a service issue and we reduced the number of steps customers need to take to manage their accounts online and we made the experience more consistent across all product lines.

We also added more than 1,000 field technicians to accelerate installations of Bell Fibe TV and broadband fiber. Growing our technician team contributed to Fibe TV having the highest customer satisfaction rate among all of our services. It also enabled us to meet our Same Day Next Day commitment for repairs to Bell Home Phone, Bell TV and Bell Internet more than 90% of the time.

That is the customer service differentiation we provide in customer’s homes, online, over the phone and in their businesses and in our stores as we continue to work to ensure that Bell remains their first choice for all their communications needs.

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