OTTAWA,Feb. 25 2004 --Bell Canada Enterprises President and CEO
Michael Sabia today called for the re-setting of the public policy framework
governing the fast-changing communications industry, in order to preserve
Canada's long-standing leadership position in the sector.
    Speaking here at the Canadian Chamber of Commerce, Mr. Sabia said:
"Barriers are falling. Lines blurring. This is not telecom as usual." He
maintained that change will accelerate even faster with the widespread
introduction of Internet Protocol (IP) technology which will put greater power
and choice directly into the hands of customers.
    "For companies like ours, it means we must rethink everything; from our
approach to the customer to the underlying financial model of the business
itself," Mr. Sabia said. "For policy makers it means rebuilding the policy
framework for a new world of competition - a world of possibilities."
    Mr. Sabia stressed the revised policy framework must focus on three
elements: it must reflect how customers view the industry and serve to meet
their needs, it must provide the same rules for all service providers, and it
must focus on investment and innovation to drive continued Canadian leadership
in the communications sector.
    Canada must act quickly to maintain that leadership he said, noting that
industry regulators in both the United States and the United Kingdom have
already launched reviews on the degree and nature of regulation required in a
world dominated by IP. Canada has not yet done so.
    He said that even today, before the full impact of IP is felt, customers
are increasingly turning to substitutes for their traditional wireline
telephone service on which Bell continues to be heavily regulated. Mr. Sabia
pointed to research that showed:

    -  10% of Canadians have cut back on the number of wireline connections
       at home because of e-mail
    -  About half of cell phone customers use their cells at home, even when
       they have a nearby wireline
    -  55% of Internet users say they use local phone service less because of
       the options the Internet gives them, and
    -  230,000 Canadian homes and 8 million U.S. homes have already switched
       totally to wireless.

    Bell recently conducted its own study to determine what percentage of
local minutes actually moves across Bell's traditional wireline network. "The
current 'myth' would have you believe that number is 97% or 98%," said
Mr. Sabia. "In fact, we found the real number is 81%. So anyone who says
substitution, competition, and growing consumer choice aren't having a
substantial impact on local telephony just doesn't have the facts."
    He said soon all nature of companies - from telecom to cable companies to
Internet Service Providers - will be providing a similar menu of services to a
common set of customers. One set of rules should apply to all players to
ensure ongoing, aggressive competition.
    "This is not an isolated debate over narrow policy issues that concern
only a handful of companies," Mr. Sabia concluded. "It's about resetting the
model for an industry that is the foundation for so much of what makes this
country what it is today... and what it can be tomorrow."

    (Editor's Note: The full text of Mr. Sabia's remarks can be found on the
    BCE web site at: www.bce.ca)


    About BCE

    BCE is Canada's largest communications company. It has 26 million
customer connections through the wireline, wireless, data/Internet and
satellite services it provides, largely under the Bell brand. BCE's media
interests are held by Bell Globemedia, including CTV and The Globe and Mail.
As well, BCE has e-commerce capabilities provided under the BCE Emergis brand.
BCE shares are listed in Canada, the United States and Europe.



For further information: France Poulin, Communications, (514) 786-8033;
Web Site: www.bce.ca