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BCI Announces Fourth Quarter Results




JANUARY 25, 2000

BCI Announces Fourth Quarter Results


* Sharpens focus through divesting non-core assets; 

* Doubles subscriber base during 1999; 

* Completes initial network build in Brazil enabling the launch of
  Vesper companies. 

Bell Canada International Inc. ("BCI") today released results for 
the fourth quarter ending December 31, 1999. 

In releasing the results, BCI also announced that it has concluded
agreements to divest its interests in the Indian cellular company,
Tata Communications, and the Chinese cellular operations, Shandong
Bell and Yantai Bell. 

"These transactions, which generate proceeds of approximately $85 
million, are the first steps in sharpening the focus of the 
company", stated BCI's Chief Executive Officer, Michael Sabia. 


In the fourth quarter, BCI's operations added over 478,000 total 
subscribers and 124,000 proportionate subscribers (based on BCI's 
percentage ownership in each of its operations). 

As a result, total subscribers served by BCI's current operations 
approximately doubled during 1999 to over 5 1/2 million.  BCI's 
proportionate subscribers also doubled from 678,000 to nearly 1.4 
million at year end. 


Consolidated revenues for the fourth quarter of 1999 rose 3 % over
the third quarter to $215 million.  On a proportionate basis, 
BCI's revenues for the fourth quarter rose 6 % over the prior 
quarter to $162 million. 

Consolidated EBITDA was negative $41 million for the fourth 
quarter, compared to EBITDA of $28 million for the third quarter. 
BCI's proportionate EBITDA was negative $47.8 million, compared to
proportionate EBITDA of $13.6 million in the third quarter.  The 
reduction in fourth quarter EBITDA was primarily attributable to 
higher handset subsidies incurred by the Korean PCS provider, 
Hansol PCS, in expanding its customer base and to provisions taken
at the corporate level. 

Pro-forma for the accounting change which the company is also 
announcing this quarter, BCI's 1999 fourth quarter proportionate 
EBITDA would have been $12.3 million compared to pro-forma 
proportionate EBITDA of negative $7.6 million for the third 
quarter.  The policy change adopts a current basis of expensing 
handset costs beginning in 2000.  The change makes the financial 
performance of BCI's operating companies more transparent for 
investors, as subsidies will be fully expensed in the period when 
they occur.  Under the previous accounting policy, subsidies were 
amortized over the life of the customer contract. 

BCI reported a loss of $169 million in the fourth quarter of 1999 
compared to a loss of $140 million in the third quarter.  The 
fourth quarter loss includes gains on the sale of non-core assets 
and a dilution gain generated through the initial public offering 
of Hansol PCS shares, as well as special charges of $113 million 
relating to the change in handset subsidy accounting policy and to
restructuring costs at COMCEL. 


Consolidated revenues for the fourth quarter of 1999 were $9 
million below consolidated revenues of $224 million reported in 
the fourth quarter of 1998.  The decline in consolidated revenues 
is attributable primarily to weaker 1999 results from COMCEL 
following economic downturn and currency devaluation in Colombia. 
Proportionate revenues for the fourth quarter of 1999 were $23 
million above proportionate revenues of $139 million in the fourth
quarter of 1998, as a strong contribution from BCI's Asian 
operations more than offset BCI's share of revenue loss from 

Consolidated EBITDA in the fourth quarter of 1999 of negative $41 
million was $70 million below consolidated EBITDA in the fourth 
quarter of 1998, while proportionate EBITDA in the fourth quarter 
of 1999 was $63 million below proportionate EBITDA in the fourth 
quarter of 1998. 

Pro-forma for the handset subsidy accounting change, BCI's fourth 
quarter 1999 proportionate EBITDA of $12.3 million would have been
$5 million above pro-forma proportionate EBITDA for the fourth 
quarter of 1998. 

BCI's net loss for the fourth quarter 1999 compares to net income 
of $55 million reported in the fourth quarter of 1998.  The 1998 
fourth quarter results included one-time gains in the amount of 
$135 million. 



BCI successfully completed a number of important initiatives in the
fourth quarter:

* The Brazilian competitive access providers (the Vesper companies)
  executed a large and rapid network buildout which allowed both
  Vesper companies to meet their licensing commitments and launch
  commercial service, with a network capacity exceeding 2.1 million
  lines.  The speed and size of the buildout reflects the 'speed-to
  -market' benefits of fixed wireless technology in telecom start
  -ups.  As a result of the two commercial launches, BCI will include
  results from the Vesper companies in its financial reporting
  commencing in the first quarter of 2000.

* Hansol PCS of Korea raised approximately $450 million through a
  successful initial public offering of common shares which are now
  trading on the Korean KOSDAQ exchange.

* BCI invested approximately US$67 million to maintain its current
  20 % interest in the island-wide Taiwanese PCS provider, KG
  Telecom, which is acquiring the outstanding 18 % minority interest
  in the regional PCS provider, Tuntex, in order to effect a full

* In December of 1999, the company arranged credit facilities in the
  aggregate amount of $800 million with a consortium of financial
  institutions and BCI's majority shareholder, BCE Inc., thereby
  securing funding commitments through the year 2000.


CEO Michael Sabia concluded: We have set two major goals for 2000.
 First, we will continue to streamline and sharpen the focus of 
our portfolio.  Second, we will take actions to capitalize on the 
huge pent-up demand that exists in Latin America for voice and 
data services.  As we meet these goals, I am confident that we 
will create exceptional value for our shareholders. 

Bell Canada International is in the business of building and 
developing world-class communications companies in markets outside
Canada, with a focus on Latin America and the Asia-Pacific region.
 A subsidiary of BCE Inc., Canada's largest communications 
company, BCI is listed on the Toronto stock exchange under the 
symbol BI, and on the Nasdaq national market under the symbol 


Selected Consolidated Financial Information  (Unaudited)
Fourth Quarter 1999
(Cdn$ thousands except per share data)

                          Three months ended      Twelve months ended
                             December 31,             December 31,
                          1999          1998       1999          1998

Income Statement
 and Cash Flow

Revenues               214,510       223,776    806,931       771,506
EBITDA (1)             (41,063)       28,948     44,983       141,139
Net earnings (loss)
 applicable to
 common shares *      (169,001)       54,603   (480,669)      (65,611)
Net earnings (loss)
 per common share (2)    (2.14)         0.69      (6.10)        (0.83)

* Includes the recording of 100 % of the losses of Comcel effective
  from May, 1999.  This resulted in an additional loss of approximately
  $46 million in the three months ended December 31, 1999 and
  $109 million for the twelve months ended December 31, 1999.

                          As at        As at
                    December 31,  December 31,
                           1999          1998

Balance Sheet

Total cash and
 notes receivable
  Corporate             112,839        32,835
   Companies            151,693        70,433
Total assets          3,680,889     2,923,589
Short-term debt
 Corporate              511,000       273,528
   Companies            185,731       180,702
Long-term debt (3)
  Corporate             160,000             -
   Companies          1,827,100     1,506,198
 equity                 364,211       538,325

(1)  EBITDA means operating earnings before depreciation and
     amortization and special charges.
(2)  Net earnings (loss) per common share is based on 78.8 million
     average common shares outstanding for the quarters ending
     December 31, 1999 and 1998.
(3)  Long-term debt includes current portion of long-term debt.

Selected Proportionate Information (Unaudited) (1)
Fourth Quarter 1999
(Cdn$ thousands except POPs and subscribers)

                     Three months ended      Twelve months ended
                        December 31,             December 31,
                     1999         1998        1999         1998
 POPs (millions)        -            -       113.0        113.4
 subscribers            -            -   1,360,926      715,509
 revenue          161,722      139,012     547,649      439,421
 EBITDA (1)       (47,841)      15,366     (12,850)      63,991

Reconciliation of Proportionate Reported EBITDA with
Proportionate Pro-Forma EBITDA
(Unaudited, Cdn$ thousands)

                        Three months ended                    months
                 31-Mar-99  30-Jun-99  30-Sep-99  31-Dec-99  31-Dec-99
 Reported EBITDA    12,891      8,475     13,625    (47,841)   (12,850)

Add back:
 segment and
 handset subsidies
 basis)             27,690     31,734     38,699     97,941    196,064

 segment and
 (cash basis)      (65,239)   (25,858)   (59,966)   (37,803)  (188,866)
 EBITDA            (24,658)    14,351     (7,642)    12,297     (5,652)

(1)  Proportionate numbers reflect BCI's percentage ownership interest
     in each of its operations.  Operations which under generally
     accepted accounting principles are consolidated or equity
     accounted are proportionately presented on this basis.  Prior to
     June 1st, 1999, KG Telecom was not included as it was
     accounted for at cost.

BCI Principal Operations
As at December 31, 1999

                    Equity     POPs (Millions) (1)     Subscribers
Company            Interest   Total  Proportionate  Total Proportionate

Asia Mobile

Hansol PCS (Korea)     21.0 %  46.4       9.7   2,741,189     575,650
KG Telecom
 (Taiwan) (2)          20.0 %  21.9       3.9   1,443,237     288,647
                               68.3      13.6   4,184,426     864,297

Latin America Mobile

 (Colombia) (2)        55.5 %  33.0      15.9     750,505     377,825
Americel (Brazil)      16.0 %  13.4       2.1     211,542      33,847
Telet (Brazil)         16.0 %   9.6       1.5     182,781      29,245
                               56.0      19.5   1,144,828     440,917

Latin America CLECs

Axtel (Mexico)         27.4 %  96.0      26.3      29,461       8,072
Vesper  (Brazil)       34.4 %  88.0      30.3           -           -
Vesper Sao Paulo
 (Brazil)              34.4 %  35.0      12.0           -           -
 (Brazil) (2)          49.2 %   1.2       0.4     161,387      47,238
Venezuela              49.5 %  22.0      10.9         813         402
                              242.2      79.9     191,661      55,712
Total                         366.5     113.0   5,520,915   1,360,926

(1) Licenced POPs reflect estimates by BCI. The figures for Canbras
    Communications represent the estimated number of households in the
    licenced areas.
(2) Proportionate POPs and subscribers for KG Telecom, Comcel and
    Canbras include equity interests in underlying operating entities.



SOURCE Bell Internet

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