BCE appeals CRTC decision that discourages investment in next-generation networks

OTTAWA, Ontario, March 12 2009 -- BCE Inc. has asked the federal
cabinet to confirm that investment in next-generation communications networks
should be encouraged as a matter of policy by overturning a decision and
companion order by the Canadian Radio-television and Telecommunications
Commission (CRTC).
    The December 11, 2008 decision, Telecom Decision 2008-117, and March 3,
2009 companion order, Telecom Order 2009-111, threaten to slow and even
eliminate such network investments in many communities by forcing
telecommunications companies to provide competitors with regulated access to
their newly constructed next-generation networks, such as the high-speed Fibre
to the node (FTTN) being rolled out by Bell and other carriers.
    "As in any other competitive industry in Canada, we should be able to
choose who distributes our services and how, be it wholesale, retail, direct
or any other creative form of distribution channel," said George Cope,
President and CEO of BCE and Bell. "The alternative of regulated access will
have significant implications for our network and other investments going
forward. Despite current economic conditions, BCE has committed to investing
more than $2.5 billion in the Canadian economy in 2009 alone."
    In making its decision, the CRTC ignored the fact that such extensive
wholesale regulation discourages the development of new, multi-billion-dollar,
state-of-the-art network technologies. By inhibiting investments in
next-generation networks, the CRTC decision would create a new urban digital
divide - in stark contrast to the government's own policy priorities for the
Canadian economy.
    "By regulating who can sell our next-generation network services and how,
the CRTC decision alters the financial case for the $700 million we are
investing in accelerating the deployment of our next-generation fibre over the
next three years and puts further investment at risk," added Kevin Crull,
President, Bell Residential Services. "If this decision stands, we will have
to revise the pace, extent and location of our network roll-out, re-evaluating
all our deployment plans in locales outside of Montreal and Toronto, where
fibre rollouts are complete."
    BCE asked the cabinet yesterday to address its request on an urgent basis
in order to avoid putting a damper on innovation and productivity by
interfering with the very investments needed to foster economic recovery, such
as those being undertaken by Bell and other telecom companies.
    "Telecom is one of the few sectors of the economy where companies are
continuing to invest despite the economic downturn, with Bell in the
forefront," said Mirko Bibic, Bell's Senior Vice-President, Regulatory and
Government Affairs. "The cabinet needs to act urgently to prevent the further
damage to the Canadian economy that would result from a slowdown in investment
in a sector crucial to all Canadians."

    About BCE

    BCE (TSX, NYSE: BCE) is Canada's largest communications company,
providing the most comprehensive and innovative suite of communication
services to residential and business customers in Canada. Operating under the
Bell and Bell Aliant brands, the Company's services include Bell Home Phone
local and long distance services, Bell Mobility and Solo Mobile wireless,
high-speed Bell Internet, Bell TV direct-to-home satellite and VDSL
television, IP-broadband services and information and communications
technology (ICT) services. BCE shares are listed in Canada and the United
States. For corporate information on BCE, please visit www.bce.ca.
For Bell
product and service information, please visit www.bell.ca.

    Caution Concerning Forward-Looking Statements

    Certain statements made in this news release, including, but not limited
to, statements relating to BCE's appeal to the federal cabinet of CRTC Telecom
Decision 2008-117 and Telecom Order 2009-111 and BCE's plans for capital
expenditures, and other statements that are not historical facts, are
forward-looking statements and are subject to important risks, uncertainties
and assumptions including, in particular, the inherent uncertainty regarding
the conduct, outcome and timing of any regulatory proceeding. The results or
events predicted in these forward-looking statements may differ materially
from actual results or events. As a result, we cannot guarantee that any
forward-looking statement will materialize and you are cautioned not to place
undue reliance on these forward-looking statements. There can be no assurance
that the federal cabinet will grant BCE's appeal. The failure by the federal
cabinet to grant BCE's appeal could have a negative impact on BCE's business
and results of operations. The forward-looking statements contained in this
news release are made as of the date of this release and, accordingly, are
subject to change after such date. Except as may be required by Canadian
securities laws, we do not undertake any obligation to update or revise any
forward-looking statements contained in this news release, whether as a result
of new information, future events or otherwise. Except as otherwise indicated
by BCE, these statements do not reflect the potential impact of any
non-recurring or other unusual items or of any dispositions, monetizations,
mergers, acquisitions, other business combinations or other transactions that
may be announced or that may occur after the date hereof.
    For additional information with respect to certain of the assumptions and
risks that could cause actual results to differ materially from our
expectations expressed in or implied by our forward-looking statements, please
refer to BCE's Safe Harbour Notice Concerning Forward-Looking Statements dated
February 11, 2009, filed by BCE with the Canadian securities commissions
(available at www.sedar.com) and with the U.S. Securities and
Exchange
Commission (available at www.sec.gov). This document is also
available on
BCE's website at www.bce.ca.



For further information: Media inquiries: Jacqueline Michelis, Bell
Media Relations, (613) 785-1427, 1 888 482-0809, jacqueline.michelis@bell.ca;
Investor inquiries: Thane Fotopoulos, BCE Investor Relations, (514) 870-4619,
thane.fotopoulos@bell.ca
 
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