BCE (NYSE:BCE) 2026 Conference Summary Company Overview - **Company**: BCE Inc. (Bell Canada) - **Industry**: Telecommunications Key Points Strategic Priorities - The company maintains its strategic priorities from the previous year, focusing on balanced capital allocation, strengthening the balance sheet, and funding strategic growth opportunities [4][5] - Emphasis on customer-first initiatives, digital transformation, and leveraging AI to enhance customer experience [4][5] Wireless Market Dynamics - The first quarter is typically quiet for wireless loading, but there has been increased promotional activity in early 2026 [6] - The competitive landscape remains intense, with pricing becoming more competitive during low volume periods [6][8] - Long-term value focus on customer acquisition and retention, particularly for higher-value subscribers [7][8] Churn Improvement - Churn improved by 17 basis points in Q4, marking the third consecutive quarter of improvement [9] - Factors contributing to churn reduction include enhanced network quality, service, and overall customer experience [9][10] Industry Growth Outlook - Anticipated long-term core telecom growth is expected to settle in the low single-digit range [11] - Factors such as increased penetration of wireless handsets and immigration are seen as positive tailwinds for growth [11][12] Fiber Network Expansion - BCE continues to build fiber infrastructure, with over 8 million fiber locations, and aims to increase penetration within its fiber footprint [14][15] - The company has built 3 million fiber locations in the last five years, with potential for further growth as fiber is considered superior to cable [14][15] Fixed Wireless Strategy - Fixed wireless is viewed as a niche product in Canada, primarily useful in areas lacking fiber [18][19] - The company has built out 1 million fixed wireless homes but does not see it as competitive against fiber [18][19] Capital Allocation and Deleveraging - The company is focused on deleveraging and strengthening its balance sheet while funding growth initiatives [24][25] - Asset sales, including potential tower monetization, are part of the deleveraging strategy [35][37] AI and Digital Transformation - AI-powered solutions are a major growth driver, with various segments like Bell Cyber and Ateko working together to enhance customer value [40][41] - The company is focused on leveraging technology to improve efficiency and customer service [52][53] Enterprise Business - The enterprise revenue base is expected to smooth out naturally despite being lumpy on a contract-by-contract basis [56][58] - The company plans to provide more detailed information on enterprise revenue starting in Q1 [58] Device Financing and Customer Experience - Device financing is one of the levers to manage churn and enhance customer experience, with a focus on long-term customer satisfaction [60][61] Economic and Market Factors - The company acknowledges macroeconomic factors impacting guidance, including potential improvements in ARPU and immigration [47][48] Additional Insights - The company is optimistic about its ability to drive growth and leverage its fiber footprint in both Canada and the U.S. [22][27] - BCE's investment in Ziply is seen as a strategic move to capitalize on the U.S. market's fiber growth potential [26][27] This summary encapsulates the key insights and strategic directions discussed during the BCE conference, highlighting the company's focus on growth, customer experience, and technological advancements in the telecommunications sector.

Financial Data and Key Metrics Changes - In 2025, consolidated service revenue increased by 0.6%, with adjusted EBITDA rising by 0.7%, leading to a 20 basis point improvement in adjusted EBITDA margin to 43.6%, the strongest annual margin in over 30 years [18] - Adjusted EPS declined by 7.9% in 2025, primarily due to higher depreciation and amortization from network investments and increased interest expense [18] - Free cash flow increased by 10% to CAD 3.2 billion, driven by higher EBITDA, lower capital expenditures, and improved working capital [19] Business Line Data and Key Metrics Changes - Wireless service revenue declined by 0.2% in Q4, an improvement from the 1.5% decline in Q4 of the previous year, with consumer wireless service revenue stable year-over-year [20][22] - Fibre-to-the-home internet net additions were 43,000 in Q4, reflecting disciplined pricing and strong demand [21] - AI-powered solutions revenue grew by 31% in Q4, driven by momentum in Ateco and Bell Cyber, contributing to the goal of reaching CAD 1.5 billion in AI-powered solutions revenue by 2028 [22] Market Data and Key Metrics Changes - Ziply Fiber's total revenue in Q4 was CAD 232 million, with internet revenue growing in double digits due to fibre expansion and strong customer penetration [23] - Ziply added over 6,000 net new fibre customers in Q4, with a focus on higher growth markets for future expansion [24] Company Strategy and Development Direction - The company has aligned its organization around four strategic priorities: enhancing customer experience, strengthening fibre and wireless network leadership, establishing a fibre growth platform in the U.S., and accelerating enterprise and digital media momentum [3][4] - The acquisition of Ziply Fiber is a key milestone in the fibre growth strategy, with plans to reach approximately 3 million fibre passings by the end of 2028 [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of core segments while managing declines in legacy services, indicating a focus on disciplined execution and customer-first initiatives [36] - The company anticipates consolidated revenue growth of 1%-5% and adjusted EBITDA growth of 0%-4% for 2026, reflecting continued momentum in growth engines [26][27] Other Important Information - Capital expenditures are expected to remain stable at approximately CAD 3.7 billion in 2026, with a lower capital intensity of 15% or less [29] - The company has CAD 2.5 billion of available liquidity and a pension solvency surplus of CAD 4.4 billion, providing financial flexibility for executing the 2026 business plan [30] Q&A Session Summary Question: Guidance ranges for 2026 - Management indicated that the guidance reflects growth in segments while managing legacy declines, with potential swings from wireless penetration gains and overall market growth [35][36] Question: Wireless pricing environment - Management noted that while there has been aggressive promotion in the market, they remain disciplined in their strategy, focusing on premium brand value and customer experience [39][40] Question: Ziply's growth and margins - Management confirmed that Ziply's performance is consistent with expectations, with strong demand for fibre and plans for broader geographic expansion [45][46] Question: U.S. competitive environment - Management stated that the strategy in the U.S. remains unchanged, focusing on penetration and capital discipline while assessing opportunities for expansion [67] Question: Asset sales and capital allocation - Management confirmed ongoing asset sales as part of capital allocation discipline, with updates to be provided as agreements are reached [71]

Financial Data and Key Metrics Changes - In 2025, consolidated service revenue increased by 0.6%, with adjusted EBITDA rising by 0.7%, leading to a 20 basis point improvement in adjusted EBITDA margin to 43.6%, the strongest annual margin in over 30 years [18] - Adjusted EPS declined by 7.9% in 2025, primarily due to higher depreciation and amortization from network investments and increased interest expense [18] - Capital expenditures decreased by CAD 197 million to CAD 3.7 billion, resulting in a capital intensity of 15.1% [19] - Free cash flow increased by 10% to CAD 3.2 billion, driven by higher EBITDA, lower CapEx, and improved working capital [19] Business Line Data and Key Metrics Changes - Wireless service revenue declined by 0.2% in Q4, an improvement from the 0.4% decline in Q3 and significantly better than the 1.5% decline in Q4 of the previous year [22] - Fiber continued to be a key growth driver with approximately 200,000 net new subscriber additions, contributing to an 8% growth in internet revenue [7][19] - AI-powered solutions revenue grew by 31% in the enterprise segment, driven by momentum in Ateco and Bell Cyber [22] Market Data and Key Metrics Changes - Postpaid churn improved by 17 basis points to 1.49%, marking the third consecutive quarter of year-over-year improvement [20] - Consumer wireless service revenue remained stable year-over-year in Q4, indicating a positive trend as the company enters 2026 [22] - Ziply Fiber's total revenue reached CAD 232 million in Q4, with internet revenue growing in double digits [24] Company Strategy and Development Direction - The company has aligned its organization around four strategic priorities: fiber, wireless, enterprise, and media, aiming for sustainable free cash flow growth [3][4] - The acquisition of Ziply Fiber is a key milestone in the fiber growth strategy, with plans to reach approximately 3 million fiber passings by the end of 2028 [9] - The focus remains on delivering premium content through digital platforms and enhancing customer experience across all segments [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth segments while acknowledging the need to manage declines in legacy services carefully [36] - The company expects consolidated revenue growth of 1%-5% and adjusted EBITDA growth of 0%-4% for 2026, reflecting continued momentum in core growth engines [27] - Management highlighted the importance of maintaining disciplined execution and focusing on customer value amidst competitive pressures [40] Other Important Information - The company is targeting a net debt leverage ratio of approximately 3.5x by the end of 2027, with a focus on deleveraging [32] - The company has CAD 2.5 billion of available liquidity and a pension solvency surplus of CAD 4.4 billion, providing financial flexibility [31] Q&A Session Summary Question: Could you talk about your guidance ranges? - Management indicated that the guidance reflects growth in segments while managing legacy declines, with factors such as wireless penetration and overall market growth influencing the ranges [35][36] Question: Any comment on the wireless pricing environment? - Management noted that consumers are receiving significant value from wireless services, with a focus on disciplined execution and premium brand positioning [40][41] Question: What are the expectations for Ziply's growth and margins in 2026? - Management expressed satisfaction with Ziply's performance and indicated strong demand for fiber, with plans to expand beyond the existing footprint [46][47] Question: Any updates on asset sales? - Management confirmed ongoing efforts to optimize the balance sheet through asset sales, with transparency to be provided as agreements are reached [71][72]

BCE 2025 Investor Day Summary Company Overview - **Company**: BCE Inc. (NYSE: BCE) - **Event**: 2025 Investor Day - **Date**: October 14, 2025 - **Location**: Toronto, Canada Key Industry Insights - **Telecommunications Industry**: BCE operates in the highly competitive telecommunications sector, focusing on connectivity through fiber and wireless networks. Core Strategic Priorities 1. **Customer First**: BCE aims to enhance customer experience, having improved from the highest share of complaints among major carriers in 2019 to the lowest today [24][60]. 2. **Best Fiber and Wireless Networks**: BCE emphasizes the superiority of its fiber and 5G networks, which are critical for future growth and customer satisfaction [22][39]. 3. **Enterprise Solutions with AI**: BCE is positioning itself as a leader in enterprise solutions powered by AI, aiming for a $1.5 billion AI-powered solutions business by 2028 [29][30]. 4. **Digital Media Powerhouse**: BCE's media division, Bell Media, is expected to drive consistent revenue and cash flow, targeting a 60% digital revenue mix by 2028 [30][31]. Financial Goals - **Revenue Growth**: BCE targets a compound annual revenue growth of 2% to 4% from 2025 to 2028 [23][33]. - **Cost Savings**: Aiming for an additional $750 million in savings, totaling $1.5 billion by 2028 [23][33]. - **Adjusted EBITDA Growth**: Expected CAGR of 2% to 3% from 2025 to 2028 [23][33]. - **Free Cash Flow Growth**: Projected growth of approximately 15% after lease payments [32][33]. - **Dividend Payments**: Anticipating approximately $5 billion in dividend payments to shareholders through a sustainable strategy [33]. Network and Technology Advancements - **Fiber Network Expansion**: BCE has expanded its fiber network significantly, with a goal to reach up to 8 million locations in the U.S. through strategic partnerships [26][39]. - **5G Network Coverage**: BCE's 5G network now reaches 89% of Canadians, with plans for further enhancements, including space-based direct-to-cell services by 2026 [27][28]. - **AI Integration**: BCE is leveraging AI to improve customer service and operational efficiency, with initiatives like the AI-powered Virtual Repair tool that has eliminated over a million technical support calls [66][75]. Customer Experience Enhancements - **Self-Service Initiatives**: Introduction of self-install programs and a user-friendly MyBell app to streamline customer interactions [65][66]. - **Churn Reduction Strategies**: Targeting a 30 basis points reduction in churn by 2028 through improved customer engagement and service offerings [49][64]. - **Personalized Experiences**: Utilizing AI to provide tailored recommendations and support, enhancing customer satisfaction and loyalty [61][72]. Market Position and Competitive Advantage - **Unique Asset Portfolio**: BCE's combination of fiber, wireless, and media assets provides a competitive edge that is difficult for rivals to replicate [39][46]. - **Customer Base**: BCE boasts 3 million fiber Internet customers, 10.5 million wireless subscribers, and 4 million TV content subscribers, positioning it as a market leader in Canada [39]. Conclusion - BCE is strategically positioned for growth through its focus on customer experience, network superiority, and innovative solutions. The company aims to deliver sustainable financial performance while navigating the challenges of a rapidly evolving telecommunications landscape.

BCE FY Conference Summary Company Overview - **Company**: BCE Inc. (NYSE: BCE) - **Event**: FY Conference held on September 25, 2025 Key Points Industry and Market Dynamics - BCE has acquired Ziply, focusing on the U.S. fiber market, which is underpenetrated compared to Canada, where fiber penetration is approximately 75% versus about 50% in the U.S. [2][3] - The U.S. fiber market presents significant growth opportunities due to a lack of infrastructure build-out by telcos over the past decade [3] - BCE plans to double its U.S. fiber footprint over the next three years, aiming for approximately 3 million locations by 2028 [5] - The strategy involves not competing directly with major players like AT&T or Verizon but rather taking market share from cable providers [6] Financial Performance and Strategy - BCE emphasizes free cash flow over net adds, indicating a shift in focus towards profitability rather than just subscriber growth [8][9] - Churn rates have improved, with a reduction of 12 basis points, indicating better customer retention strategies [10] - The company has 8 million fiber homes in Canada and aims to manage penetration effectively as growth slows [11][12] Competitive Positioning - BCE's strategy in Quebec involves increasing fiber penetration from below 30% to mid-40%, challenging cable competitors [14] - The company is exploring partnerships and bolt-on acquisitions to enhance its market position and drive returns [7] Technology and AI Integration - BCE is positioning itself to capitalize on AI and business transformation, providing end-to-end solutions for enterprise customers [18][20] - The company is not looking to replicate large language models but rather to partner with hyperscalers to deliver integrated solutions [19][24] - BCE has secured over 500 megawatts of renewable hydroelectric power for its data centers, enhancing its operational capabilities [26] Cost Management and Infrastructure - BCE aims to reduce costs by automating processes and simplifying operations, with a target of $1.5 billion in cost savings by 2028 [30][31] - The company views its infrastructure as a valuable asset, considering potential monetization strategies while maintaining strategic control [32][33] Future Outlook - BCE is focused on increasing its capital efficiency and scrutinizing asset ownership to ensure optimal returns [34] - The company is committed to leveraging its fiber infrastructure to drive growth and profitability in both Canadian and U.S. markets [16][34] Additional Insights - The Canadian wireless pricing environment is stabilizing, with double-digit increases in flanker pricing compared to the previous year [8] - BCE's approach to AI is cautious, emphasizing the importance of tangible business outcomes over mere buzzwords [21][24] This summary encapsulates the critical insights and strategic directions discussed during the BCE FY Conference, highlighting the company's focus on growth, profitability, and technological integration in a competitive landscape.

Core Viewpoint - BUZZ High Performance Computing, a subsidiary of HIVE Digital Technologies, has partnered with Bell Canada to create a significant sovereign AI ecosystem in Canada, leveraging NVIDIA technology to enhance AI capabilities and ensure data residency compliance [2][5][10]. Company Overview - BUZZ HPC is a wholly owned subsidiary of HIVE Digital Technologies Ltd., focused on providing enterprise-grade cloud services and large-scale NVIDIA GPU clusters optimized for AI, machine learning, and scientific workloads [8]. - The company has been operational since 2017 and has established supercomputing environments across Canada and the Nordics, utilizing renewable energy for its Tier 3+ data centers [8][12]. Partnership Details - The partnership with Bell Canada aims to deliver one of Canada's largest sovereign AI ecosystems through Bell AI Fabric, integrating BUZZ HPC's NVIDIA accelerated computing infrastructure with Bell's advanced fiber network and data centers [2][3]. - The collaboration will provide access to NVIDIA Ampere, Hopper, and Blackwell GPU clusters, scalable over NVIDIA Quantum-2 InfiniBand networking, supporting various AI use cases [3][4]. Infrastructure Deployment - The initial deployment will start with a 5 MW infrastructure in Manitoba, with plans for expansion into other Bell AI Fabric data centers across multiple provinces, ensuring nationwide access to advanced AI tools [6][10]. - The infrastructure is designed to comply with strict data residency and cybersecurity regulations, ensuring that all data and compute resources remain within Canadian-owned facilities [10]. Strategic Importance - The partnership is positioned to enhance Canada's leadership in AI innovation while maintaining digital independence, providing Canadian businesses and researchers with the necessary tools to develop competitive AI solutions [5][10]. - The collaboration is expected to drive productivity, foster innovation, and create economic opportunities across various Canadian industries [6][10].

Core Viewpoint - BUZZ High Performance Computing, a subsidiary of HIVE Digital Technologies, has partnered with Bell Canada to create a significant sovereign AI ecosystem in Canada, leveraging NVIDIA's advanced infrastructure for AI and machine learning applications [2][5][11] Company Overview - BUZZ HPC is a wholly owned subsidiary of HIVE Digital Technologies Ltd., recognized as a Canadian AI cloud provider and NVIDIA Cloud Partner [2][8] - The company specializes in delivering enterprise-grade cloud services and large-scale NVIDIA GPU clusters, optimized for AI, machine learning, and scientific workloads [8] Partnership Details - The partnership with Bell Canada aims to provide government and enterprise customers access to NVIDIA's advanced GPU clusters, including Ampere, Hopper, and Blackwell, integrated with Bell's AI Fabric [3][4] - This collaboration will ensure nationwide access to high-performance computing resources, hosted in secure Canadian facilities that comply with data residency and cybersecurity regulations [4][11] Infrastructure Deployment - The initial deployment will start with a 5 MW infrastructure in Manitoba, with plans for expansion into other Bell AI Fabric data centers across Canada [6][11] - The infrastructure is designed to support a variety of national objectives, enhancing innovation and competitiveness in AI [6][11] Strategic Importance - The partnership is positioned to establish Canada as a leader in AI innovation while ensuring the protection of digital independence through sovereign AI infrastructure [5][11] - The collaboration combines BUZZ HPC's hardware capabilities with Bell's advanced network and data center resources, creating a comprehensive AI solution for the Canadian market [7][11]

Core Insights - BCE Inc. reported second-quarter 2025 adjusted EPS of C$0.63, down from C$0.78 in the prior-year quarter, missing the Zacks Consensus Estimate of C$0.52 per share [1][8] - Total operating revenues increased by 1.3% year over year to C$6,085 million, surpassing the consensus estimate of C$4,324.9 million [2][8] - Product revenues surged by 17.4% to C$818 million, while total service revenues dipped by 1.5% to C$5,267 million [2][8] Financial Performance - Bell CTS segment's operating revenues rose by 1% year over year to C$5,334 million, driven by higher product revenues, although service revenues fell by 1.5% to C$4,516 million [3][8] - Mobile phone blended ARPU decreased by 0.7% to C$57.61, attributed to competitive pricing pressures and lower data overage revenues [9] - Adjusted EBITDA fell by 0.9% year over year to C$2,674 million, with a margin of 43.9% compared to 44.9% in the prior-year quarter [11] Subscriber Metrics - Postpaid mobile phone net subscriber activations were 44,547, down from 78,500 in the prior-year quarter, due to a 14.8% decline in gross activations [5][8] - Prepaid mobile phone net subscriber activations decreased to 49,932 from 52,543 in the prior-year quarter, driven by a 3.7% decline in gross activations [6][8] Media Segment - Bell Media revenues grew by 3.8% year over year to C$843 million, supported by an 8.1% increase in subscriber revenues, despite a 3.1% decline in ad revenues [10][8] Cash Flow and Guidance - Operating cash flow decreased by 8.9% year over year to C$1,947 million, while free cash flow increased by 5% to C$1,152 million [12][8] - BCE updated its 2025 financial guidance, now anticipating revenue growth of 0-2%, adjusted EBITDA growth of 0-2%, and a revised free cash flow outlook of 6% to 11% lower [13][14]

Financial Data and Key Metrics Changes - BCE reported a total revenue growth of 1.3% in Q2 2025, driven by fiber strategy and premium wireless subscriber retention [32] - EBITDA decreased by 0.9% due to higher cost of goods sold, while net earnings and statutory EPS increased due to lower asset impairment charges [33] - Adjusted EPS fell by 19.2%, reflecting noncash mark-to-market losses on FX hedges and options, higher interest expense, and lower tax adjustments [33] - Free cash flow increased by 5% in Q2 2025 [34] Business Line Data and Key Metrics Changes - Internet revenue grew by 3%, supported by the addition of 27,000 new FTTH customers in Canada [12][36] - Wireless service revenue declined by approximately 3%, marking the second consecutive quarter of improvement in the year-over-year rate of decline [37] - Bell Media's total revenue increased by approximately 4%, driven by an 8.1% rise in subscription revenue [38] Market Data and Key Metrics Changes - BCE's acquisition of Zipline Fiber expanded its fiber footprint by 1.4 million locations, positioning it as the third-largest fiber Internet provider in North America [11] - The Canadian AI data center market is projected to grow at an annual rate exceeding 20% [26] Company Strategy and Development Direction - BCE's strategic priorities include putting customers first, delivering superior fiber and wireless networks, leading with AI-powered solutions, and building a digital media powerhouse [6] - The company aims to become the backbone of Canada's AI economy through its Bell AI Fabric initiative, which includes purpose-built AI data centers [24] - BCE is focused on executing its strategic plan while investing significantly in Canadian content and technology services [30] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment over the federal government's decision regarding CRTC's wholesale access but remains focused on executing the strategic plan [30] - The company anticipates continued growth in free cash flow and revenue, particularly from the integration of Zipline Fiber and the PSP partnership [46] Other Important Information - BCE's balance sheet remains strong with $3.8 billion in available liquidity and a net debt leverage ratio of approximately 3.5 times adjusted EBITDA [39] - The company is targeting a year-end 2025 net debt leverage ratio of approximately 3.8 times, reflecting the impacts of the MLSE sale and Zipline Fiber acquisition [40] Q&A Session Summary Question: Can you unpack guidance regarding Zipline and any adjustments? - Management indicated that Zipline continues to outperform initial financial expectations, and the revised guidance reflects the combined company's performance [51][52] Question: What is the expected free cash flow profile evolution from Zipline? - Management expects continued EBITDA growth from Zipline, with significant free cash flow growth anticipated once the PSP partnership is operational [61] Question: Can you discuss the long-term revenue opportunity for Bell AI Fabric? - Management highlighted a large total addressable market (TAM) for AI services and emphasized the integration of various elements of the enterprise strategy to drive growth [64][66] Question: How sustainable are the improvements in wireless churn metrics? - Management noted that churn reduction is a multifaceted approach, with ongoing customer service improvements contributing to the positive trend [89] Question: How should investors view the existing business compared to earlier guidance? - Management stated that the midpoint of guidance has increased, reflecting improved expectations for revenue and EBITDA, while free cash flow remains stable [91]

Financial Data and Key Metrics Changes - BCE reported a total revenue growth of 1.3% in Q2 2025, driven by fiber strategy and premium wireless subscriber retention [30] - EBITDA decreased by 0.9% due to higher cost of goods sold, while net earnings and statutory EPS increased due to lower asset impairment charges [31] - Adjusted EPS fell by 19.2%, reflecting noncash mark-to-market losses and higher interest expenses [31] - Free cash flow increased by 5% in Q2 2025 [31] Business Line Data and Key Metrics Changes - Internet revenue grew by 3%, supported by strong fiber service offerings [32] - Wireless service revenue declined by approximately 3%, marking a second consecutive quarter of improvement in the year-over-year decline rate [34] - Bell Media's revenue increased by approximately 4%, driven by strong digital momentum and a significant rise in streaming subscribers [35] Market Data and Key Metrics Changes - BCE added 94,479 new net mobile phone subscribers in Q2, with postpaid churn improving to 1.06%, marking the first year-over-year improvement in nearly three years [12][13] - The company added 27,000 new FTTH customers in Canada, despite a slowdown in fiber build [11] - Zipline Fiber's acquisition expanded BCE's fiber footprint by 1,400,000 locations, positioning it as the third-largest fiber Internet provider in North America [10] Company Strategy and Development Direction - BCE's strategic priorities include putting customers first, enhancing fiber and wireless networks, leading in AI-powered solutions, and building a digital media powerhouse [4][5] - The acquisition of Zipline Fiber is a key milestone in BCE's fiber growth strategy, aimed at diversifying revenue in unregulated markets [10] - The company aims to become the backbone of Canada's AI economy through initiatives like Bell AI Fabric, which includes purpose-built AI data centers [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment over the federal government's decision regarding CRTC's wholesale access but remains focused on executing the strategic plan [28] - The company anticipates continued growth in free cash flow and revenue driven by customer-first initiatives and momentum in wireless and enterprise sectors [29] - Management highlighted the strong demand for AI services and the expected growth in Canadian AI data centers, projecting an annual growth rate exceeding 20% [24] Other Important Information - BCE plans to host an Investor Day on October 14, 2025, to showcase its strategic elements and long-term shareholder value creation [29] - The company is targeting a year-end 2025 net debt leverage ratio of approximately 3.8 times, reflecting the impacts of the Zipline Fiber acquisition [37] Q&A Session Summary Question: Can you unpack guidance regarding Zipline and any adjustments? - Management indicated that Zipline continues to outperform initial financial expectations, and the revised guidance reflects the combined company's performance [48][49] Question: What is the expected free cash flow profile evolution from Zipline? - Management expects continued EBITDA growth from Zipline, with a significant reduction in CapEx due to the PSP partnership, leading to improved free cash flow [56][58] Question: What is the long-term revenue opportunity for Bell AI Fabric? - Management highlighted a large total addressable market (TAM) for AI services and emphasized the integration of various elements of the enterprise strategy to drive growth [61][62] Question: How sustainable are the improvements in wireless churn metrics? - Management noted that churn reduction is a multifaceted approach, with ongoing customer service improvements and a focus on retention strategies [89] Question: How does the new guidance reflect the existing business versus initial expectations? - Management stated that the midpoint of guidance has increased, indicating a more positive view of the existing business compared to earlier in the year [92]