BCE Inc. (BCE): Business Model Canvas [Dec-2025 Updated]

You're digging into BCE Inc.'s strategy as of late 2025, trying to see past the quarterly noise, and honestly, the story is a massive infrastructure pivot built on fiber and AI. This isn't just about maintaining service; it's a calculated race to own the future pipe-think deploying pure fiber to another 1.1 million locations this year while pushing 5G+ wireless coverage past 70% of the Canadian population. They are simultaneously cutting $500 million from 2025 Capital Expenditures while betting big on enterprise AI through platforms like Bell AI Fabric, all while managing a mobile ARPU that settled at $57.61 in Q2 2025. It's a high-stakes balancing act between aggressive network build-out and a company-wide transformation targeting $1.5 billion in savings by 2028. Below, I've mapped out the nine blocks of their current Business Model Canvas so you can see exactly where the capital is flowing and what they expect to get back for it.

BCE Inc. (BCE) - Canvas Business Model: Key Partnerships

You're looking at the core alliances that fuel BCE Inc.'s strategy heading into 2026, especially as they push fiber and AI.

Public Sector Pension Investment Board (PSP Investments) for Network FiberCo

This partnership is a major capital play for U.S. fibre expansion via Ziply Fiber, which BCE acquired for a reported C$7 billion (or $5.1 billion as of November 2024). PSP Investments agreed to a potential commitment in excess of US$1.5 billion to Network FiberCo. The ownership structure sees PSP Investments holding a 51% equity stake through its High Inflation Correlated Infrastructure Portfolio (HICI), with BCE through Ziply Fiber holding the remaining 49%. Network FiberCo is designed to enable Ziply Fiber to potentially reach up to 8 million total fibre passings, focusing on last-mile deployment outside incumbent areas. The transaction was expected to close in the second half of 2025. This structure helps BCE maintain financial discipline while funding U.S. growth, which is key as BCE reported a net debt leverage ratio of approximately 3.8x as of September 30, 2025.

Best Buy Canada for strategic retail distribution and The Source store closures

BCE Inc., through its wholly owned subsidiary, partnered with Best Buy Canada to rebrand and operate 165 The Source locations as Best Buy Express. This move involved shuttering the remaining 100-plus The Source locations by the end of 2024. The Best Buy Express stores offer consumer electronics alongside exclusive Bell services, including mobility, Internet, TV, and home phone. This leverages Best Buy's buying power and supply chain.

Cohere for integrating agentic AI into the Bell AI Fabric platform

The partnership with Cohere is central to BCE's ambition to build a $1-billion tech services business through its Ateko brand. Bell AI Fabric incorporates Cohere's agentic AI platform, North, to offer sovereign AI solutions. This infrastructure includes six AI data centres, planned to provide around 500 megawatts of hydroelectric-powered AI compute capacity. Cohere, which raised $500 million in new funding in July 2024, becomes BCE's preferred AI infrastructure partner in Canada, ensuring data sovereignty.

Major content providers (e.g., Warner Bros. Discovery) for Bell Media's Crave

Crave, Bell Media's streaming service, remains the exclusive Canadian home for HBO and Max content due to an expanded, multi-year licensing agreement with Warner Bros. Discovery (WBD), which also settled a prior dispute with Bell Media in October 2024. As of early October 2025, Crave reported having 4.3 million subscribers. The deal includes a co-production commitment for original Canadian content and licensing of Bell Media originals for WBD platforms outside Canada. Bell Media's Q3 2025 adjusted EBITDA was $237 million, with operating costs decreasing by 6.3% partly due to lower content costs.

Technology vendors like Fortinet and Zoom for enterprise solutions

BCE is driving monetization in secure connectivity markets through technology alliances. The managed SD-WAN-as-a-Service offering is enhanced by Fortinet, while the Workplace from Bell and Zoom collaboration suite targets productivity. These initiatives support BCE's goal to lead in enterprise with AI-powered solutions. The overall CTS segment saw 11.2% Internet revenue growth in Q3 2025, partly from these advanced offerings.

Here's a quick look at the scale of some of these segments and partnerships in Q3 2025:

Metric/Segment	Value/Amount	Context
BCE Consolidated Revenue (Q3 2025)	$6.05 billion	Year-over-year increase of 1.3%.
BCE Adjusted EBITDA Margin (Q3 2025)	45.7%	Essentially stable year-over-year.
Network FiberCo PSP Commitment	US$1.5 billion (potential)	Equity commitment for U.S. fibre build.
Network FiberCo BCE Stake	49%	Equity stake contingent on Ziply Fiber closing.
Crave Subscribers (Early Oct 2025)	4.3 million	Driven by direct-to-consumer streaming growth.
Bell AI Fabric Data Centres	Six	Part of the sovereign AI infrastructure plan.
The Source Rebrand to Best Buy Express	165 locations	Number of stores to be rebranded.

The Bell CTS U.S. segment, which includes the newly acquired Ziply Fiber, contributed to 11.2% Internet revenue growth in Q3 2025.

The Bell AI Fabric project involves integrating Cohere's LLMs and relies on Ateko, which is a cornerstone of BCE's ambition to build a $1-billion tech services business.

The partnership with PSP Investments is structured to have Network FiberCo utilize its own non-recourse debt financing, which is anticipated to be the majority of its capital over time.

BCE's Board declared a quarterly dividend of $0.4375 per common share, payable on January 15, 2026, to shareholders of record at the close of business on December 15, 2025.

The Bell Media segment revenue in Q3 2025 was $732 million, with adjusted EBITDA of $237 million.

The retail fiber-to-the-home (FTTH) internet service in the wireline segment saw 65,239 net additions in Q3 2025.

Finance: draft 13-week cash view by Friday.

BCE Inc. (BCE) - Canvas Business Model: Key Activities

You're looking at the core actions BCE Inc. is driving right now to meet its strategic goals through 2028. These aren't just vague plans; they are concrete operational targets that require massive capital and organizational focus.

Network Build and Expansion

A major activity centers on the fiber rollout, which is foundational to future service delivery and cost reduction. BCE is executing on its plan to reach a subscriber milestone by year-end.

• Targeting 3 million fibre Internet subscribers by the end of 2025.
• Added 65,000 net new fibre subscribers in Q3 2025, including U.S. operations.
• The company's fiber network passes more than twice the locations of its nearest competitor.
• Canadian households with fiber access stand at 75 per cent.

Simultaneously, the wireless network expansion is a constant activity, ensuring broad coverage for the 5G+ service.

Wireless Network Metric	Value as of Q2 2025
Population with Wireless Network Reach	Over 99 percent
Population with 5G/5G+ Access	89 percent
Total Wireless Subscribers (Q2 2025)	10.4 million

Enterprise and AI Solution Development

BCE Inc. is actively developing its enterprise solutions business, treating it as a distinct growth engine. This involves integrating acquisitions and building out proprietary platforms.

• The ambition is to build a $1-billion tech services business through brands like Ateko.
• Ateko recently acquired SDK Tek Services Ltd. to bolster its data engineering and analytics capabilities.
• Bell AI Fabric is being bolstered by opening data centres, with the first seven-megawatt facility slated for Kamloops.

This AI focus is a clear pivot, moving beyond pure connectivity into high-value, AI-powered service integration for governments and enterprises.

Content and Digital Platform Management

For Bell Media, the key activity is managing and growing its digital assets, particularly the Crave streaming service, while navigating a tough advertising market.

Bell Media/Crave Metric	Value/Target
Crave Direct-to-Consumer Subscribers (Q3 2025)	4.2 million
Crave DTC Subscriber Year-over-Year Growth (Q3 2025)	64 percent
Crave Annual Revenue Target (by 2028)	$1 billion
Digital Revenue as % of Total Media Revenue (Q2 2025)	43 percent

The media segment Q3 operating revenue was $732 million, reflecting an 11.5 per cent decrease in advertising revenue.

Company-Wide Transformation and Efficiency

Underpinning all these activities is a massive internal transformation effort focused on efficiency and cost reduction. This is a necessary step to fund the network and AI investments while managing leverage.

• The stated goal is achieving $1.5 billion in cost savings by 2028.
• This saving is achieved through simplification and decommissioning of legacy copper-based networks.
• Capital intensity is expected to decrease to approximately 14 per cent by 2028.

The company expects to generate cumulative free cash flow before capital expenditures and lease liabilities of approximately $22 billion between 2025 and 2028.

BCE Inc. (BCE) - Canvas Business Model: Key Resources

You're looking at the core assets underpinning BCE Inc.'s operations as of late 2025. These aren't just line items; they are the physical and intellectual foundations that drive service delivery and market positioning.

The physical network infrastructure is massive, representing a significant barrier to entry for competitors. This includes the extensive fiber-optic backbone that is central to the company's strategy, even with recent adjustments to the build pace.

Resource Category	Metric/Asset Detail	Latest Reported Figure (Late 2025)
Fixed Network Infrastructure	Canadian Fibre Footprint (Homes Passed)	Around 8 million homes passed as of August 2025
Wireless Spectrum	Key Spectrum Band for 5G+ Testing	3500 MHz spectrum
Financial Capital	Available Liquidity (as of September 30, 2025)	$3.6 billion
Financial Capital	Cash on Hand (as of September 30, 2025)	$460 million
Human Capital	Total Employees (as of December 31, 2024)	40,390 employees

Bell Media's content library and distribution channels are another critical, though more intangible, asset. The digital transformation in this segment continues to be a focus area, driving a significant portion of media revenue.

• Crave Subscriber Base (as of early October 2025): 4.3 million subscribers
• Bell Media 2025/26 Original Content Lineup: 116 key returning and anticipated new titles
• Digital Revenue Growth (Full Year 2024 vs. 2023): Up 19%

The company's human capital, while seeing workforce reductions in early 2025, still represents a large base of technical expertise necessary to run and advance these complex networks. The focus is clearly shifting toward AI-driven solutions in the enterprise space.

The financial structure supports these assets, with the net debt leverage ratio reported at approximately 3.8x adjusted EBITDA following the Ziply Fiber acquisition and MLSE sale as of Q3 2025. Finance: draft 13-week cash view by Friday.

BCE Inc. (BCE) - Canvas Business Model: Value Propositions

You're looking at the core value BCE Inc. is promising its customers as of late 2025. It's a mix of network superiority, content exclusivity, and enterprise modernization.

Best-in-class pure fiber Internet and 5G+ wireless network speeds

BCE Inc. is pushing its fibre-to-the-premises (FTTP) network as a key differentiator. As of Q3 2025, Bell CTS retail high-speed Internet subscribers totaled 4,890,297, up 9.7% compared to Q3 2024, reflecting the inclusion of Ziply Fiber. The company expects to reach 3 million total fibre Internet subscribers by the end of 2025. The fibre footprint leads the Canadian market with more than double the locations passed versus the next leading competitor. For wireless, Bell is emphasizing 5G+ performance; for instance, its latest spectrum deployment delivered speeds up to 65% faster for customers in key Ontario markets. Wireless service quality is also quantified by churn improvement, with postpaid mobile phone churn down 15 basis points year-over-year in Q3 2025, settling at 1.13%.

Here's a look at the network growth and performance metrics:

Metric	Value/Period	Date/Context
Total Bell CTS Retail High-Speed Internet Subscribers	4,890,297	End of Q3 2025
Retail FTTH Internet Customers	3 million	End of 2024
Q3 2025 Total Retail High-Speed Internet Net Additions	26,111	Q3 2025
Postpaid Churn	1.13%	Q3 2025
U.S. FTTP Network Capital Investment	$128 million	Q3 2025, for Ziply Fiber

Comprehensive content bundles via Bell Media, including exclusive streaming on Crave

Bell Media is driving value through content aggregation and its exclusive streaming service, Crave. Total Crave subscriptions reached 4.3 million as of early October 2025. This represents growth from 3.64 million subscribers reported at the end of Q4 2024. The direct-to-consumer (DTC) segment is a major growth driver; Crave's DTC subscribers increased by 64% in Q3 2025. Sports DTC streaming subscribers saw a 38% increase in the same quarter. Bell is actively bundling, launching a Crave, Netflix, and Disney+ streaming bundle in select markets.

Crave subscriber metrics show clear momentum:

• Total Crave Subscriptions: 4.3 million (as of early October 2025)
• Crave DTC Subscriber Growth (Q3 2025): 64% year-over-year increase
• Bell Media Digital Revenue Growth (Q2 2025): 9% year-over-year
• Bell Media Digital Revenue Mix Expectation: Approaching 60% of Bell Media revenue by 2028, up from 45% in 2025

Advanced business technology solutions: cybersecurity, managed services, and sovereign AI

BCE Inc. is positioning its enterprise segment, Bell Business Markets, as a growth engine, particularly in AI-powered solutions. The enterprise segment reported 34% revenue growth in Q3 2025, which was almost entirely organic. This follows a strong 18% business solutions revenue growth achieved in the full year 2024. The value proposition here centers on three key offerings: the IT service provider Ateko, the cybersecurity tech Bell Cyber, and the AI compute project Bell AI Fabric.

Accessible mobile options through the new 'ahlo' smartphone brand

The 'ahlo' brand is positioned as a sleek and affordable smartphone alternative. Specific financial or subscriber numbers for 'ahlo' aren't public yet, but the hardware value proposition includes a 6.58-inch HD+ display and a 5,000mAh battery. This offering supports the broader mobile segment, which saw mobile connected device net activations increase by 48.5% in Q3 2025 to 83,505.

High network reliability and service continuity (e.g., future 'Unbreakable Internet')

BCE Inc. is promising enhanced network resilience with the planned introduction of Unbreakable Internet in Spring 2026. This feature is designed to keep Internet service working during power outages by using wireless backups enabled by Bell Mobility 5G smartphones and the fibre network's passive optical technology. This focus on continuity is a direct response to the need for reliable service, especially given the planned reduction in capital spending on FTTP footprint expansion in Canada due to regulatory decisions.

BCE Inc. (BCE) - Canvas Business Model: Customer Relationships

BCE Inc. has made putting the customer first a core strategic priority for its next era, aiming to improve experience while driving operational efficiencies. This focus is evident in their pursuit of digital transformation and specific performance improvements across their brands.

Customer-first strategy focused on digital self-service and reducing complaints

The commitment to a customer-first approach is reflected in measurable improvements in complaint handling. According to the 2024-2025 Complaints for Telecom-television Services (CCTS) mid-year report, the overall BCE group of companies saw its share of industry complaints decrease by 1%. This strategy is heavily supported by a push toward digital channels. BCE has a stated goal to more than double its digital transaction mix by 2028. This digital shift is already impacting the media segment, where digital revenues reached 42% of total Bell Media revenue in 2024, up from 35% in 2023, with digital revenue growing by 19% over the last year (2024).

Dedicated account management and consultative sales for enterprise clients

For business customers, BCE is emphasizing leadership in enterprise through AI-powered solutions, which requires a more consultative relationship structure. The enterprise segment demonstrated significant growth, posting 34% revenue growth in Q3 2025, with nearly all of that growth being organic. Bell Business Markets revenue growth in Q2 2025 was specifically driven by managed services from Ateko, cybersecurity offerings, and the Bell AI Fabric. BCE projects around $1.5 billion in revenue from these AI-powered enterprise solutions over the three-year period spanning 2025 through 2028.

Automated and AI-driven customer service tools for efficiency

Efficiency in customer service is being driven by technology integration, which supports the customer-first goal by reducing costs and improving response quality. Cost savings are explicitly tied to digital adoption and expanding self-serve capabilities. AI-powered tools are central to enhancing the customer experience and operational efficiency across the organization. This technological focus helps drive down key operational metrics, such as the postpaid churn rate for the main Bell brand, which improved year-over-year in Q2 2025 to 1.06%, the first such improvement since Q3 2022. By Q3 2025, postpaid churn further improved to 1.13%.

Brand-specific relationships for different segments (e.g., Virgin Plus, Bell)

BCE Inc. manages distinct customer relationships through its portfolio of brands, each tailored to a specific market segment. Virgin Plus operates as the flanker post-paid mobility brand, while Lucky Mobile serves the prepaid segment. The performance of these brands directly impacts overall customer metrics; for instance, Virgin Plus showed a strong performance in complaint reduction, with a 5.7% decrease in its complaints and a 16% decrease in its share of industry complaints in Q2 2025. For the core Bell brand, all new postpaid customer net activations in 2024 occurred on this main brand. Furthermore, the company is expanding its reach through partnerships, such as the expansion of the no name™ mobile prepaid service to all Maxi® store locations across Québec, powered by Bell's wireless network (as of November 2025).

Here's a quick look at some of the key customer-related performance indicators and targets:

Metric/Target Area	Value/Data Point	Period/Context
Share of Industry Complaints (BCE Group)	Decrease of 1%	2024-2025 CCTS mid-year report
Virgin Plus Complaints	Decrease of 5.7%	Q2 2025
Digital Transaction Mix Target	More than double by 2028	Strategic Goal
Bell Media Digital Revenue Share	42%	2024
Postpaid Churn (Bell Brand)	1.06%	Q2 2025
Enterprise Segment Revenue Growth	34%	Q3 2025
AI-Powered Enterprise Revenue Projection	Around $1.5 billion	2025 to 2028

If onboarding new enterprise clients takes longer than expected, the risk to achieving the projected 34% growth rate rises.

Finance: draft 13-week cash view by Friday.

BCE Inc. (BCE) - Canvas Business Model: Channels

You're looking at how BCE Inc. gets its products and services to the customer base as of late 2025. The channel mix shows a clear push toward digital self-service and high-value enterprise solutions, even as physical retail undergoes strategic realignment.

Bell and Virgin Plus branded retail stores and kiosks remain a touchpoint, though the physical footprint has seen changes. For instance, in Q1 2025, part of the channel strategy involved permanent closures of The Source stores, which was linked to a strategic distribution partnership. This suggests a channel optimization effort away from that specific retail presence.

The strategic retail partner locations, notably Best Buy Canada, are part of this evolving physical presence. While direct store counts aren't public, the strategy is evident in the shift away from certain owned/partnered retail formats. The success of the overall retail channel is reflected in the performance of bundled services; as of Q3 2025, approximately 50% of internet households subscribe to both mobility and internet service bundles, showing the importance of the in-store sales interaction for cross-selling.

Digital platforms: BCE.ca, mobile apps, and direct-to-consumer streaming (Crave) are clearly a major focus for customer acquisition and engagement. Crave, in particular, shows significant direct channel strength:

Metric	Period End	Value	Context/Change
Total Crave Subscriptions	Q2 2025	4.1 million	Total subscriptions.
Total Crave Subscriptions	Early October 2025 (Q3 End)	4.3 million	Total subscriptions.
Direct-to-Consumer Streaming Subscribers Growth	Q2 2025 vs. Prior Year	72% increase	Year-over-year growth in the direct digital channel.
Direct-to-Consumer (DTC) Subscribers Growth	Q3 2025 Quarter	64% increase	Quarterly growth in the direct digital channel.
DTC Sports Subscribers Growth	Q3 2025 Quarter	38% increase	Quarterly growth for sports streaming DTC.

The wireline segment also relies heavily on digital/direct sales for high-speed internet activations, with 26,111 total retail high-speed Internet net subscriber activations reported in Q3 2025.

For Bell Business Markets (BBM), the direct sales force is critical for its enterprise focus, which is showing strong top-line momentum. The business solutions revenue growth for the full year 2024 was 18%. This growth trajectory continued into Q3 2025, where the enterprise segment saw 34% revenue growth, largely organic, driven by AI-powered solutions like Ateko managed services and Bell AI Fabric.

Regarding wholesale network access to Mobile Virtual Network Operators (MVNOs), specific revenue or subscriber volume data for this channel is not explicitly detailed in the latest public reports available as of late 2025. However, the overall wireless segment shows a total mobile phone customer base of 10,287,978 subscribers at the end of Q1 2025, which includes postpaid and prepaid customers.

Finance: review the Q4 2025 capital expenditure forecast against the Q3 2025 capital intensity of 14.7% by next Tuesday.

BCE Inc. (BCE) - Canvas Business Model: Customer Segments

You're looking at the core customer groups BCE Inc. serves as of late 2025. It's a mix of massive residential scale and targeted business solutions, all underpinned by network access.

Canadian Residential Consumers: Mobile, Internet, TV, and Smart Home Subscribers

This segment forms the bedrock of BCE Inc.'s revenue base, heavily focused on bundling services to increase customer stickiness. The focus is clearly on fibre penetration and streaming adoption.

• Mobile Phone Customer Base: Totaled 10,382,457 at the end of Q2 2025.
• Postpaid Mobile Subscribers: Stood at 9,565,385 at the end of Q2 2025, showing a postpaid churn rate of 1.13% in Q3 2025.
• Retail High-Speed Internet Subscribers: The combined base (Bell CTS Canada and U.S.) was 4,890,297 at the end of Q3 2025.
• Fibre Internet Target: BCE expected to have 3 million fibre Internet subscribers by the end of 2025.
• Retail IPTV Base: Experienced a net loss of 16,161 subscribers in Q3 2025.
• Crave Subscribers: Reached 4.2 million total subscriptions by the end of Q3 2025.

The strategy here involves driving convergence; in areas with fibre access, 39 percent of households subscribe to both Bell's mobility and Internet services, compared to only 18 percent in non-fibre regions.

Canadian Enterprises and Government: Large and Small-to-Medium Business Solutions

This group is served primarily through Bell Communication and Technology Services (Bell CTS) Canada, with a growing emphasis on advanced, AI-powered solutions. The enterprise segment is a key growth vector.

For full-year 2024, Bell Business Markets saw revenue growth driven by managed cybersecurity and digital workflow automation acquisitions like Stratejm and CloudKettle. In Q3 2025, BCE reported 34% revenue growth in the enterprise segment, largely organic.

Metric	Period Ending Q3 2025	Comparison/Context
Bell CTS Canada Service Revenue	$4,528 million	Down 1.5% year-over-year
Bell CTS Adjusted EBITDA YoY Change	Down 0.6%	Reflecting declines in the Canadian segment
AI Power Solutions Growth	34%	Reported for Q3 2025, mainly organic growth

U.S. Residential and Business Customers: Through the Ziply Fiber Acquisition

The acquisition of Ziply Fiber, completed on August 1, 2025, for C$5.0 billion (U.S. $3.65 billion) plus debt assumption, established a significant U.S. foothold. This move positions BCE as the third-largest fibre Internet provider in North America.

• Ziply Fiber Footprint Passed: Currently 1.4 million American homes.
• Ziply Fiber Net Adds (Aug/Sep 2025): Added 9,000 net new fibre customers in its first two months under BCE ownership.
• Bell CTS U.S. Retail High-Speed Net Activations (Q3 2025): Totaled 4,685.
• Long-Term U.S. Target: Potential to reach up to 8 million fiber locations via the Network FiberCo partnership.

The integration of Ziply Fiber contributed to a 5.1% increase in Bell CTS product revenue in Q3 2025.

Advertisers: National and Local Businesses Utilizing Bell Media Platforms

Bell Media serves advertisers through its portfolio of broadcast, digital, and streaming assets, including Crave, CTV, and radio properties. This segment faces headwinds in traditional advertising but sees growth in digital.

In Q3 2025, Bell Media operating revenue was $732 million, a 6.4% decrease year-over-year from $782 million in Q3 2024. The advertising revenue component saw an 11.5% decrease in Q3 2025, mainly impacting linear TV and radio.

• Q3 2025 Bell Media Advertising Revenue Change: Down 11.5% year-over-year.
• Q1 2025 Bell Media Operating Revenue: Reached $775 million.
• Digital Revenue Mix Target: Expected to increase from 45% of Bell Media revenue in 2025 to approximately 60% in 2028.

The Q1 2025 results showed Bell Media's digital revenues grew 12% from Q1 2024 and comprised 43% of the segment's top line. Finance: draft 13-week cash view by Friday.

BCE Inc. (BCE) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive BCE Inc.'s operations as of late 2025. This structure is heavily weighted toward infrastructure investment, content acquisition, and servicing a substantial debt load. Honestly, managing these costs is key to hitting their 2025 targets.

Capital Expenditures (CapEx) for Network Build-out

BCE Inc. executed a planned reduction in capital spending for 2025. The company stated a goal to reduce capital expenditures by $500 million in 2025 compared to 2024. This reduction was largely tied to a slower Fiber-to-the-Premises (FTTP) footprint expansion in Canada, partly due to regulatory environments discouraging network investment. The company maintained a 2025 capital intensity guidance of approximately 15%.

Here's how the CapEx looked through the third quarter of 2025:

Metric	Q3 2025 Amount	Year-over-Year Change	Year-to-Date Savings (vs. 2024)
Consolidated CapEx	$891 million	Down 6.6%	$551 million
Capital Intensity	14.7%	Down from 16.0% in Q3 2024	N/A
Ziply Fiber Investment (U.S.)	$128 million (Q3 2025)	N/A	N/A

The year-to-date savings of $551 million through Q3 2025 put BCE well on track to meet its $500 million reduction target for the full year.

High Content and Programming Costs for Bell Media Properties

The Bell Media segment faced revenue headwinds, with Q3 2025 revenue declining 6.4% to $732 million. However, operating costs saw moderation, as reflected in the Adjusted EBITDA margin remaining relatively stable at 32.4% in Q3 2025, down only slightly from 32.5% in Q3 2024. This stability was achieved despite the revenue drop because operating costs decreased by 6.3%, which was explicitly attributed to lower content costs, alongside decreased labor costs and other efficiencies.

Network Operating Expenses, Maintenance, and Spectrum License Fees

Overall consolidated operating expenses in Q3 2025 were up 1.2% year-over-year. This increase was moderated by technology and automation efficiencies and reduced labor costs. Specific figures for total network operating expenses, maintenance, or spectrum license fees for the full year 2025 are not explicitly broken out in the latest reports, but the cost management focus is clear across the organization.

Significant Interest Expense on Long-Term Debt

Servicing debt remains a major cost component. BCE's publicly issued debt securities carry an average term of approximately 12.8 years, with an average after-tax cost of 3.2%. Interest expense was a notable cost in 2024, totaling $1.71 billion, and management anticipated increased interest expense for 2025. The net debt leverage ratio stood at approximately 3.8x as of September 30, 2025.

Debt/Interest Metric	Value	Period/Context
Average Term of Publicly Issued Debt	12.8 years	As of early 2025
Average After-Tax Cost of Debt	3.2%	As of early 2025
Interest Expense	$1.71 billion	2024 Actual
Net Debt Leverage Ratio	Approx. 3.8x	As of September 30, 2025

Labor and Severance Costs from Workforce Reduction Initiatives

Workforce reduction initiatives were a factor in cost moderation. Q3 2025 operating expenses were moderated by decreased labor costs attributable to workforce reductions across the organization. Furthermore, the strong free cash flow growth in Q3 2025 was supported by lower severance payments compared to the prior year. However, cash flows from operating activities in Q2 2025 were negatively impacted by higher severance and other costs paid.

• Decreased labor costs contributed to Q3 2025 operating expense moderation.
• Lower severance payments helped Q3 2025 free cash flow increase.
• Higher severance costs paid negatively impacted Q2 2025 cash flows from operating activities.

Finance: draft 13-week cash view by Friday.

BCE Inc. (BCE) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers for how BCE Inc. brings in cash as of late 2025. This is where the rubber meets the road, translating service offerings into actual dollars.

Wireless Service Revenue remains a core pillar, though ARPU pressures are evident. For the second quarter of 2025, the mobile phone blended ARPU settled at $57.61. This figure reflected the impact of competition, discounting, and a shift to larger data plans. Subscriber additions show a mix of trends: postpaid mobile phone net subscriber activations in Q2 2025 were 44,547, while prepaid mobile phone net subscriber activations totaled 49,932 in the same period. By the end of Q2 2025, the total mobile phone customer base reached 10,382,457. The wireless segment showed improvement into Q3 2025, adding 68,018 net mobile phone subscribers, and postpaid churn improved to 1.13%.

Wireline Service Revenue is increasingly tied to fiber deployment. In Q2 2025, consumer fibre Internet net subscriber activations were 26,583. By the end of that quarter, the total high-speed retail Internet subscriber base stood at 4.42 million. The retail IPTV customer base was 2.10 million, representing a 1.1% year-over-year decrease. The momentum continued into Q3 2025, with 65,239 retail fiber-to-the-home (FTTH) net additions reported, contributing to an 11% Internet revenue growth.

Business Solutions Revenue is showing strength in specialized, high-value areas. Bell Business Markets saw revenue growth in Q2 2025, specifically driven by Ateko managed services, cybersecurity, and the launch of Bell AI Fabric. This enterprise momentum carried into Q3 2025, where the enterprise segment reported a 34% revenue growth.

Media Revenue shows a bifurcation between digital growth and traditional advertising softness. Bell Media revenue grew 3.8% and adjusted EBITDA climbed 7.8% in Q2 2025. Direct-to-consumer streaming subscriptions for Crave were a highlight; total Crave subscriptions reached 4.2 million by the end of Q3 2025, fueled by a 67% increase in Crave direct-to-consumer streaming subscribers and a 38% increase in sports direct-to-consumer streaming subscribers. However, advertising revenue remained a drag, sliding 3.1% in Q2 2025, and facing an 11.5% decline in advertising revenue in Q3 2025.

Product Revenue, which includes wireless device sales, saw a significant jump in Q2 2025, increasing by 17.4% to $818 million. This was attributed to higher upgrade volumes and contracted activations. By Q3 2025, product revenue was C$720 million, marking a 5.1% year-over-year rise.

Here's a quick look at the top-line revenue components for the two most recent quarters:

Revenue Component	Q2 2025 Amount (CAD)	Q2 2025 YoY Change	Q3 2025 Amount (CAD)	Q3 2025 YoY Change
Total Operating Revenues	C$6,085 million	1.3% increase	C$6.05 billion	1.3% increase
Total Service Revenue	C$5,267 million	0.8% dip	C$5.33 billion	0.8% increase
Product Revenue	C$818 million	17.4% increase	C$720 million	5.1% increase

You can see the clear shift in revenue mix, with product sales boosting the top line in Q2, while service revenue growth, albeit small, returned in Q3, partly due to the Ziply Fiber acquisition.

Further detail on the Bell CTS segment, which houses most wireless and wireline services, shows:

• Bell CTS Operating Revenues (Q2 2025): $5,334 million
• Bell CTS Operating Revenues (Q3 2025): $5,408 million
• Bell CTS U.S. Segment EBITDA (Q3 2025): $71 million with a 44.4% margin

Finance: draft 13-week cash view by Friday.