BCE (NYSE:BCE) 2026 Conference Transcript

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.