Good morning everybody. I am Thane Fotopoulos, the Vice President of Investor Relations at BCE and on behalf of the entire Bell executive leadership team here today, I want to welcome you to our 2013 Investor Day Conference. Its been a few years since we met in this kind of forum, four years to be exact and a lot of progress has been made in those four years in growing the business and delivering value to BCE shareholders and we are here to tell you about that and more importantly how we intend to keep that up going forward. We are happy to have this opportunity here this morning to give you an in-depth update on our strategies and plans for 2013. However, before we get started, I would like to remind you that today's event will be webcast. Links to the webcast along with all supporting materials are on BCE’s Investor Relations web page. And of course, I also need to cover the Safe Harbor notice which is up behind me on the screen. Today's presentation and comments will certain forward-looking statements that represent our expectations as of today and accordingly are subject to change. We do not undertake any obligation to update any forward-looking statements except as maybe required by Canadian Securities laws. A number of assumptions were made by us in preparing these forward-looking statements which are subject to risk. Results may differ materially. Details on these risks and assumptions are in our filings with the Canadian Securities Commission and with the SEC which are all found on our website. We have a great agenda for you today as you can see here. So let me quickly cover that with you before we begin. We will start off with an overview from our CFO Siim Vanaselja on…

Thanks Thane. Good morning everyone. We are really happy to have this opportunity today to share our strategic plans and our financial outlook with you this morning. What I am going to do is start with our fourth quarter financial highlights which we released this morning. I would say our operations delivered on a steady course with quite a strong contribution from both Wireless and Media. Total service revenue growth in the quarter is 0.3% represented healthy revenue growth across our growth businesses across Wireless, TV, Internet and Media and that was offset by lower business data product sales and ongoing voice decline. Bell’s EBITDA grew nicely, 2.2% in the fourth quarter and that increase was driven by our Wireless segment which posted great EBITDA performance. Wireline’s EBITDA decline was pretty much in line with what we saw in the third quarter of this year. Our consolidated margin at Bell expanded 80 basis points. That was on improved service margins, both in Wireless and in Media. At the EPS level, BCE statutory EPS in the fourth quarter with $0.91 per share; that’s up from $0.62 per share a year ago and that increase reflects in addition to higher EBITDA, lower year-over-year severance costs and as well we had in the quarter a one-time non-cash gain that we realized on the transfer of spectrum from Inukshuk out to it's respective shareholders. We look at adjusted EPS in the quarter, increased 4.8% to $0.65 per share. And I will highlight that our effective tax rate this quarter was just below the statutory rate and that's because the Inukshuk spectrum gain that we realized was non-taxable. I will also say that there were no tax provision adjustments this quarter. On free cash flow, our operations generated over $600 million in the quarter, representing…

Well, good morning. And it seems that thank you for taking the time this morning to give us an opportunity to give you a much deeper understanding of what we are planning to do in ‘13 and what we have been doing. As the video hopefully reminds everyone we have accomplished a significant amount over the past four years as a company and for the investment community, but as the video says I actually truly believe we are now just getting started. The focus of today’s agenda is really around 2013 operationally and strategically, but probably more importantly I felt it was really an opportunity to give the investors a unique time with some of our senior executive. The executive team that we have built in this company over the last five years, I am convinced would stand up to any Telco or cable leadership team on the globe and we want to give you that opportunity here from those leaders today as investors in Bell. And then Siim talked about you know, we have accomplished a lot in 2012 and I will just quickly add a few comments to the year if you go back to ‘08 and you look at where we are today, you know operationally in 2012 leading and we believe we will lead the industry this year in postpaid net adds, wireless ARPU growth and EBITDA when all the numbers are in for the year. Increasing our consolidated Bell EBITDA margin year-over-year in that declining voice challenge we have on the local access side. Again reducing our OpEx cost this time a $166 million, bringing our cost reduction since 2008 to well over a $1 billion and that excludes the working capital improvements of well over $500 million. Quarter million, 250,000 Fibe TVs under Kevin…

Great, well thanks George and hello everyone. I’ll take a little time to take you through a little bit of journey we’ve been on and while I believe are unconcerned gains in productivity and service at the Field Operations has made about Canada, but more importantly what I think are some outstanding opportunities still yet to come. Before I took over the Operations in 2008, I was worried and lots of debt from lots of bankers and lots of consultants around the continent about $150 million or so. Cash, opportunity that was in this business. So now we're approaching the end of 2013 at the end of this year and that number should be about $250 million. So we've done some really good work. And these are not the results of one timers; what these are fundamental, efficient and smart practices that we’ve developed over the last four years that really make this operation different and really make it, we have a sustainable operating advantage going forward. From what I’ve seen, I believe that one of the best operating teams in the world and we're going to get into a little bit now and I want to show you what we've done and I want to show you some of the opportunities we have going forward. Who are we? So we're the force that services every single business and residential customer at Bell Canada. We build every meter of fiber that is out there; we have three broad themes you can see there, Bell Canada technicians, Bell Technical Solutions and also Expertech. They are governed by eight different collective agreements in the CP and that’s not nearly as scary as it seems. Our technicians are really, really good. We want them to do the work and the CP wants them…

Great. Welcome and thank you. I would like to build on some of the great work that Mary Ann has been doing to give you a window into what we call customer operations. So bit of history and a little over two years ago, my role was nearly created. It was a focus on improving customer experience within mobility as well as the residential part of the business. I think it is important milestone of having an executive responsible for customer experience at Bell, essentially Wade and I split the P&L; it’s a structure that he and I have proven to be successful in the past. At the time, Bell lagged in the area of customer experience on a number of levels and our costs were significantly higher and on the increase at that point in time and the two tend to go hand-in-hand. I'm pleased to report that we've made very significant gains, I'm through that over time and this slide gives you an example of what I'm responsible for. So Mary Ann owning field if you look at the bottom of this slide, I pick up the areas of customer service, also look at churn and loyalty management, all facets of that, experience transformation projects, the CapEx projects that George showed that my team drives as well as business intelligence and much of the remainder of my presentation will cover all these topics. Similar to slide of Mary Ann, it's very simple but succinctly sums up what we want to do the difference between her’s and mine is that I add in the churn component. Looking after the churn element is a huge win for our business but also one that's very integral to operations. It’s a different point of structure for us and our competitors most don't…

If you can find your seats. (Inaudible) get started in a minute. Are we good to go? Good to go.

Good morning, everybody thank you for staying through the break. My name is Wade Oosterman and then the slide says these are the things I manage for Bell, and really my job is to manage our picker screen, fill it with goodness trademark kind of approach to the market as the whole. And the pieces of the business that I manage each play a role in delivering that promise to the market and you should ask why we have that view on the market and its because we can see very clearly a change in the market where people are becoming less focused on product centric attributes and care more about the ability to complete the activity they are interested in. So, I want to watch whatever it is, I want to watch on the screen of my choice and that's one of the reasons why we are restructured to where we are to enable that. So as I said, my role is to make that happen, of course it's my role and the role of every presenter that is in front of you today to kind of deliver that to the market. Today however, our focus is primarily on the wireless aspect of that puzzle. And then George and Siim have already walked you through the Q4 results that are released and the 2012 results give you some insight into our thinking on 2013, although I will give some more detail. And you all have seen from those results that really the wireless team and the teams that enable the wireless group are all delivering at world class levels and we certainly incredibly pleased with the performance in 2012 and certainly since that ‘08 management and then since ‘09 of the large part of our new network. So we…

Thanks Wade. My name is Stephen Howe, I am responsible for the operations strategy and implementation of various networks at Bell. Bell’s networks are really the foundation of everything we do at the company, a bit of a biased opinion perhaps, but unless I believe its true and I do apologize in advance if I use a few acronyms I will try to keep it to a minimum for you today. As far as network strategy this is really an aspirational view our the types of things we are trying to do, really we have one core world-class core network that's the cloud you see and around axis here we have all our connections into that network whether its fiber, WiFi, copper, LTE, or HSPA. And so convergence is really happening. We've already and my team converged and consolidated wireless and wireline operations team, the team that manages that core and of course all of our cell sites where possible we actually backhaul using our fiber assets. So really anywhere anytime seamless network experience is what we are driving towards and let me give you one kind of simple example and something that's actually inter-laps today and I have experienced it myself so you are watching Fibe TV and this will happen this year, you are watching Fibe TV and Saturday morning you need to eat brunch at the mother-in-laws and right when you need to be to get into the car, right you are right in the middle of the Sports Center Top 10, alright you don't want to miss it and so the great thing you can do is you pause right there in your Fibe TV, you pause that feed, you get in the minivan, put the kids in the minivan, you slap up an iPad, you…

Well, good morning all, and coming up here last this morning, I think you can probably see why it is such a privilege to be a part of this management team, and at a little bit of personal risk I will take exception with one thing that George said, we are not all boring, boring has been great for shareholders so far, but I am here to tell you this morning why not boring is also great for shareholders. Our job is on media is to entertain, inform and inspire Canadians better than anyone else in this business. That way Canadians will spend more and more time on our properties like you just saw in that video. I think that's a great illustration of how we do that today. But looking-forward, one thing is clear, this business is changing fast, we think the media business have an outstanding future and we think that we are very well positioned. Every week Canadians spent 28 hours in front of their television, four hours with online video and a half an hour with mobile video, that's five hours a day consuming video. The way I see it even if you allow for eight hours of sleep every night, we still have a long way to grow. It’s been a privilege to be a part of our media leadership team for the last two and a half years and I am excited to talk today about the amazing people, the great assets and mostly about our progress and our vision. Prior to the acquisition, CTV had assembled some of the best media assets in Canada, and since then we've made them better. CTV the conventional network has been number one for a record breaking 11 years and CTV the brand is the highest value…

Okay so as the folks settle in why don't we take questions for about 20 minutes or so and if you have a question we go to the microphone and we will try to answer questions as best we can.

A question I have is on the dividend. So if you look at your 69% payout ratio that includes the free cash guidance number and that itself concludes $200 million benefit from the [overseas] pension funding that you did last year. If you don't include that, let's assume that that's not a recurring item then that payout ratio moves up into the high end of the range. So the question I want to ask and George you made reference to this earlier is you have a lot of comfort you feel for the free cash flow profile. I'm asking kind of post 2013, you know if you can comment on a couple of things. Number one, give us some context on what that comfort level is and presumably that includes CapEx directions and presumably that includes possibilities for pension solvency funding decreases, and then number two if you can give us some guidance on your willingness to see the payout ratio go into that high end of the range whether that's for a small period of time while you are making these outsized investments and things like IPTV and LTE.

I'm going to ask Stephen Howe the head of our technology to answer last one. Anyway so first of all it’s a I'm going to ask the same question for five years the first answer is look at our results. We are generating free cash flow growth of 5% to 9% and that's what's giving us the headroom to grow the dividend. The guidance is around 2013. So again I'm always a little careful to talk as always everyone knows about going forward. But I would say there are some, there are always headwinds and there are tailwinds that help do that growth, right. One is I think we continue to show the street I think its one of the biggest disconnects, not so much on the buy side but on the sell side which is our ability to cost out. I think that's where not so much I'd say on the buy side, but where I think number of the sell side analysts have said I mean such a hard one to get our head around, they don't know how to model that capability. So part of today's purpose is to say to you there is runway on cost, through productivity and so we are not going to give the 2014 productivity number here today, but that's where the headroom comes to answer some of your questions. Secondly it seems that if we are fortunate enough to have interest rates move up under the basis of our fixed financing done for Astral, then obviously the pension funding capability, the amount of funding for pension comes back our way. Ultimately the success of earning significant profits means our tax cash bill will go up and we have to obviously stay within our guidance to do all that and the last question is we have a range for a reason and it is to stay within that range. We've been fortunate enough to be in the mid or low point, but we have a range for a reason. Not every single year is going to be the way the year before us and we're committed to a dividend growth model that the streets are pretty clear on. Hopefully that helps it.

(Inaudible) still you said steady today is 5%ish still kind of a lose goal.

Actually, we have never said 5% dividend increase but it's become the norm. What is evident though as we said in our circular is our equity does invest. We're not seeing close to 5% dividend increases. So we're pretty in line with that but there is no public target, never has been. And I think we’ve exceeded the 5% as everyone knows over the last four years, with some hardware. Glen, go ahead.

I had a couple of questions on revenue. So on the wire line side, the presentation makes the point, you are going to see less discounting on TV and new products going forward. There is obviously the rate as well for those things help. On the other side, there is competitive environment, there’s discounting, safer retention and acquisitions of customers. Can you talk a little bit about what the overall trend is on discounting and wire line and whether 2013 will give, say a better wire line ARPU performance than 2012?

Yeah, well Wade do you want to start with that and then I will (inaudible).

It's a very good question. We have seen a meaningful decrease in sort of discounts following office earlier, aggressive promotions have now turned out, and we don’t see the same aggressiveness of discount levels on a go forward basis. I would say our focus is much more on winning the household than the ARPU won on individual product segment. So take for example our new unlimited Internet add-on that we provide on a triple if somebody takes TV with us they can get that. I know you could make an argument that lowers Internet ARPU, and it doesn’t. But you could come to that conclusion, but for sure it drives household revenue for us and that’s really our core focus. So, we feel pretty good about the ability to generate the right revenue levels at household level on a go forward basis.

I had a follow up on the wireless so got the big bucket smartphone plans that there were the gig of data or three gigs. You got your LTE network, can you give us a sense of how much take there is on the bigger than one gig plans, are you surprised possibly to able to give any sense and how much overture you are seeing now that people have got these (inaudible) in their hands?

It’s funny I have a different perspective on it. Anything that drives data consumption lets us highlight our network superiority, and so we are fans of that. The reason our ARPU grows is because our mix improves, so we get more of the very heavy consumers come to us or heavy users both on business and consumer come to us. In total they spend more, so even if the rate per kilobyte or megabyte is slightly less, we still see a very positive impact on ARPU, and as Steven talked about our cost structure now on the network side allows the leverage gain efficiencies of scale. So it’s a winning formula for us. So we are happy with the way things are going.

The only thing Glen I mentioned, we’ve mentioned in the presentation but it’s not just the external market it’s also we are going through that first year of those first five customers who got the immediate discount with no revenue, and that starts to normalize not always easiest thing to go through in the market but it’s certainly that’s giving us some of the a little better sense of okay revenues always challenged on the wire line side but may a little bit of room there. And secondly as everyone saw the competitive market moved on pricing in the cable industry and there is only a few provider so that is obviously helpful.

We had exceptional wireless results last year, just following on from Glen comments but adding another one. So when are getting so well, new entrance look is very badly position for the auction etcetera, the government perhaps looking embarrassed and people like Rogers preempting changes of Spectrum ownership. Are you still concerned about regulatory back flash maybe not from this here CRTC code of conduct but future regulation of the industry including forcing of MVNOs and the like, and on a similar vein to what Glen was speaking about, so there are all these new price there, there seems to be lower cost going forward for both subsidies, LT efficiencies and the like. To what extent are your EBITDA and margin projections based on cost versus ARPU growth going forward, because the cost side looks better than the ARPU side going into 2013 would you agree?

Why don’t you guys get ready to answer the second question Wade, John and whoever else wants to jump in. And on the first question, first of all obviously we are regulator industry in total and deregulated in wireless, it is an issue on global basis, the profile of the wireless industry every G20 nations is pretty significant. I personally believe if Canada has a very unique situation. We are one of the only countries in the world with three strong competitors. Just look at what happened in the fourth quarter in the US in market share and look what happened in Canada and we have the leading wireless technology in the world. So I think we are sometimes trying to find the problem that doesn't exist. Actually most of the countries would probably give their right arm to have our industry structure with three strong players. In terms of what happens to the new entrance, we will have to see how that plays out for them, our business model is $28, ARPU after 27 years in the industry is never worked it is not going to work for anybody, so they are going to have to sort that out, not us and I think the government has left the market. It’s an open market, we are seeing what happens, the company that came from outside of Canada said they were going to destroy us, let's see what happens, they got access to capital and we will just compete in the market. So I think the government’s view should be there's a wide open competition, let's see who is standing when that's all finished. You know there were 29 price reductions in the fourth quarter; it’s a competitive industry, 29 and then matched times seven carriers, okay. I don't know what is, I honestly don't know, I'm not in your industry, I don't know if there's another industry in the fourth quarter that had 29 price changes. So I don't know what competition issue we are looking for actually.

And so did you want the second half.

Yes the second half of my question, we almost got out of that.

Yes. Yes. We anticipate growing ARPUs and I presume you are asking about wireless. Yes we absolutely see ARPU growth in 2013 for all the reasons I articulated. Handsets keep getting better, our network keeps getting better, that drives more usage, that drives more ARPU, our lead in mobile TV and the growth we are seeing that driving tremendous opportunity there, some of the new things I talked about, our change in mix is continuing. We opened 100 locations in the west last year, that's driving our performance in that market which is a higher ARPU market. So all the fundamental building blocks are in place to continue to drive ARPU and revenue growth and on the cost side we just see a lot of elements that let us be more efficient. It’s funny we talk about 29 rate plan changes and price changes, unless you have a good digital infrastructure, it gets tough to manage all that and I think we really have a significant lead in that space. So the ability to change quickly through to a very significant investment on the part of John and enabling an E environment has been very helpful to us. So we continue to see an opportunity to drive out costs.

But only I would add one of the reasons Mary Ann and John took such time to go through is to try to say, the fact that core volume in wireless went down with that growth last year is where we are picking up and I think John can comment, but I think you said you had slide John I think around that right.

No question, I go down 2.2 million to (inaudible), you know the CAGER moving into this year’s 13% on a really good trend line. When folks tend to call you tend to be resolving issues, so the credits you would hand out are dilutive on the ARPU side and that's declined dramatically. Wade had a lot of them. There are folks even moving from smartphone to smartphone. The rich browser smartphone they now have is much more enabled for video and you think of the usage that's occurring then you ask how many gigs are being used, the one gig plan remember that we have a million folks using TV on top of that 1 gig. So we are really priming the pump for extra ARPU and revenue usage with video. In fact we are doubling down in terms of the investment for folks to do that and lastly as Steven’s productivity on the cost per gig delivered is terrific on LTE based on all the good things he’s created and invested in that space. So we are very optimistic in terms of driving the margins in both revenue right now and last one will be our smartphone penetration, that's the greatest upside. So I think that really points upwards.

My question would be for Wade. You highlighted the 30 points of device penetration gap between Canada and the US, can you talk to your expectations of narrowing that gap and perhaps within that discuss where you are now on multiple device penetration and where that is going; also vis-à-vis the US on that.

So, the penetration difference between us and the United States, if you plot penetration since Europe inception, Canada and the US, you see a much narrower GAAP. So a lot if it seems to be ready to time sense market was launched and then there are some structural differences between the US and Canada that lead to some small difference, but ultimately we see an outcome that is not that dissimilar to other markets. Certainly in Europe for example, where you have the very high roaming cost back and forth and so people acquire multiple Sims to deal with the expense side drives penetration. We don’t have quite the same environment here. So that would be something I would say, not quite at that level, but the US market and the Canadian market are not dissimilar and we have every expectation that we continue to see penetration grow as we go forward. I think for us, the most important driver that is, the advantage we have over the US market and over the European market in driving functionality. So our network quality and George has made the point several times and I will again too, it's unbelievable. We have spectacular network strength and functionality in this country and it drives more than other things. This upgrade move to smartphones and then just the increased penetration as people find out, hey I can really watch TV while I am at my kids’ soccer practice or I can pay my bills through a mobile commerce initiatives or whatever it might be. I can get a lower insurance rate if I deploy solutions. So, we see lots of structural reasons driving increase penetration as we go forward, not worried at all that we are anywhere close to our peak.

And we think we go well over a 100 (inaudible).

Yeah thanks very much just a couple of extras on wireless. Wade can you just speak to the machine-to-machine opportunity. We obviously hear Rogers talk a lot about it, curious your thoughts on that opportunity. Then on postpaid churn the whole industry is seeing improvement there attributed to a bunch of factors like smartphones and shared plans will contribute going forward. How low do you think this could go for Bell? And then lastly just a big picture one may be whoever up there wants to take a crack at it. If churn is certainly a delta in the cost equation, just wondering when you look at consumer loyalty where are the telcos and specifically BC which stand on joining or starting loyalty program?

I will take the first one machine-to-machine and then I will let John touch on churn and then loyalty program I will try and cover off. On machine-to-machine I know Rogers has made a lot of public comments about the potential for that market, and I think everybody in the room would recognize that it’s a large volume in terms of units and very low ARPU per unit industry. I believe that Bell is a leader in this space at the moment, and we have ambition to keep in the leadership role in that space. It is a very integrated solution set typically where you delivered to end users who are interested in that. So our wire line assets and our wire line business relationships help us a lot in driving performance in machine-to-machine. I gave the example of the insurance company that we just did a deal with, so that’s an example of machine-to-machine. But we are a strong player in machine-to-machine I am not going get into specific numbers because that’s competitive, but we are happy with our performance in machine-to-machine and we do agree with Rogers that with very meaningful upsides still in this days particularly so in wireless. So we are pertain on the space, and John I will let you touch churn and then I will get back on loyalty.

I won't give you detail guidance on where churn may or may not go on wireless. So I would say the following: understanding what a dissatisfier is for you today, knowing that proactively and then deciding what we can do about that either on a passive or proactive bases is very, very powerful. In the past it was always done more on mass, more into big segments, big lumpiness but for now you can do at the level of one, so I think the potential for improvement is absolutely there and I think those improvements can be driven at the level of one and that can be driven at the P&L at the level of one is very, very different and so on. So enabling that and I think this is across the industry, it’s the one that folks are focused on, and I see further opportunities going forward. But once said we don't drive churn down and spend at a level that creates negative consequences for the business, it will be one that maximize profitability of the business to drive forward.

So we do have the loyalty program and actually let John talk about that as well. But I would say that our orientation is slightly different. Our entire focus always is how do we leverage the assets that Bell has the benefits of our clients. So one other program we just launch or something called the Bell business advantage program and what that does, its not a loyalty program, but what that does, and it was launched in our business group obviously. But it gives small and meaning size businesses access to Bell’s purchasing power. So the discounts we negotiate with suppliers we make available to our small and medium business clients; that then generates loyalty to us because they in fact can save more money on other elements and other products they might for their business than they actually spend with us, so they make money coming to Bell photon activity services as they take full advantage of it. So those are the kinds of programs we use to drive increased retention within our subscriber base and that’s an example of one in the business area and its taking an asset behalf, our purchasing power and deploying it to the benefit of our consumers. And then John just launched a kind of a super elite program, if you want to call it, and I’ll let John touch on that.

I have never been a fan of loyalty programs that aren’t core to our products and service offering and we found that when you deliver a great service that is the core length towards loyalty. We have recently launched a program last fall that addresses the needs of our most valuable customers and we have seen just unbelievable ourselves with that and its an example of what you can do; we didn’t bring a bunch at Bell’s and whistles, they aren’t a bunch of points you can earn, its just damn good service. Every day, 7x24 with 100% fall open satisfaction. So if you ask what the loyalty program is, that’s it and we measure that and we know and loyalty is measured by folks recommending our products and services and the MPS scores correlate to that as well. So we’re very much focused on it, but its not a lair or program or an adjunct to what we do, it is core to what we do and its focused on our core service and products.

I think just to add to that, traditional loyalty programs can create some longer term exposure as the above points out there that need to be redeemed and that’s an obligation and a liability for the organization and I hope people are picking up our loyalty efforts, do you want to do things or either make us better or they are funded by a third party and not us. And so in both cases they in general as I said sticking us within our end user community that you can see the results kind of there flip.

And the last I would say is the more loyal you are to us, the less you pay; that’s pretty well.

Thanks. And Wade, on the hand set subsidy issue, do you think there is an opportunity for the industry to take this down; we are seeing a lot of high performance Androids coming out at pretty low price points we are seeing BlackBerry with some new products out there, we’re seeing Windows 8 as well. So how do you think there is the opportunity to grab what’s been a tough challenge for the industry as a move to the smartphone era; is that something where we could see progress and get multiple access and maybe beyond those HTML5 things like that?

Again a great question and again structural reason that favors us and Bell and the carrier community. The improvement in say the new BlackBerry devices and the intense competitive dynamics in the Android space and then Microsoft trying to get in and Apple trying to keep a fleet, all of that leads to much greater competition on the handsets side and you know that where there is greater competition there is some benefit to the buyer of the goods and services being sold and in our case we see pricing that could end up being more favorable for us as we go forward as a result of that competition. I think more importantly we see the rate at which people want to upgrade their handsets is increasing because, wow, that’s a really new feature, I want to get one of those and yet I am finished my existing term yet and so though and I believe other have introduced lower cost, that’s lower cost to us, greater flexibility, that’s greater flexibility to the end user upgrade programs, so you can take a new device by buying out your older ones and that allows us to recover some COA that we would have invested previously as people upgrade their handsets. So those two factors, I think make us comfortable that we don’t have a runaway COA or COM exposure in front of us. That's why we feel comfortable. We're going to stick at that 10% to 11% range on COM and you know we see COA; it is a fiercely competitive market out there. So it's not entirely our call but certainly there are some good structural reasons why we feel comfortable with as I said our financial forecast for the coming year.

That's clearly on the subsidy side, first of all, as a Canadian, we want to see Blackberry successfully and then selflessly from a business perspective, a successful Blackberry is very important to us and early signs are quite positive because leveling that supplier playing field creates the right tension amongst the suppliers and if you are buyer from a supplier, you want them to have tension not us. And so that’s exactly what we think, an early signs on the Blackberry are encouraging and we're really looking forward. That may turn out to be a Canadian phenomenon in terms of the amount of loyalty to that brand. Let’s hope it’s global but that will only help Canadian wireless carriers for sure and hopefully help Blackberry.

Thanks. You gave some great presentations on your best-in-class capabilities in field ops and customer service and first of all, kudos for that for the turnaround over the past few years. But I noticed in the past three years, most of your acquisition dollars have gone into media and content. Is there any way to maybe leverage those best-in-class skills? You don’t have been making acquisitions where they could be big synergies, taking your skills in buying other (inaudible) and related to that, with Bell Aliant, do share all of that capability you have or if Bell ever own a 100% of that would be some incremental synergy that could float BCE shareholders?

Yeah, it’s couple of questions. First of all, on the acquisition front, every acquisition we have made has been to drive the imperatives and how we see the industry evolving overtime, alright? So clearly, you mentioned the media acquisition we think Q9 is absolutely right in the sweet spot of our traditional business. We think Virgin was right in the sweet part of our business. The source the (inaudible) of Bell went down when we bought into the (inaudible) the source and Q9. We lower our cost to capital in those acquisitions for the overall entity if you step back and think about how we derisk the organization. Turns to Bell Aliant, Karen is just an excellent operator she has done a fantastic job with that asset, I know that's what the street view is and we obviously, I am Chair of the board, John sits on the board, so absolutely best practices are shared between both companies where we are significant shareholder, we want that Bell Aliant organization to do well. So there is no secrets in terms of trying to help them out and likewise on the other way. And there aren’t many (inaudible) but I know in Canada that we would add to that portfolio. So we are pretty focused on executing what we have got.

Thank you. I just wanted to ask a technological question on the Wireline side, you mentioned on the slide that the usage on from customers is still well below your bandwidth of 35 or 75 coming through with the [pair] bonding but I assume customers needs are higher you won’t catch them in average, there will be outliers and they will go to somebody else, can you may be talk a little bit about how far the pair bonding is going to take you out in terms of years before we see Ultra High Definition TVs coming on to the market and expanding the needs of customers and the wireless is, we have seen transactions in the US where we have seen AT&T, Verizon separate things somehow in terms of bandwidth use with the transactions they have done between themselves. Do you expect in Canada to see some kind of separation going forward in terms of the bandwidth 700 megahertz and AWSN which companies using different technologies on their bandwidth?

Sure, and I will take that one. So a couple of things one Ultra HD so we do follow all the [CASE] announcements and everything at that period closely of course and there is couple of hard things happening in the HD space. One as we currently encode our network with MPEG-4 is the latest and greatest by the time Ultra HD comes out which we believe is really more in that kind of 2015ish timeframe and maybe beyond, because that's really only for 54 inch TVs and above, they will take advantage plus you need the content and everything else. But there is a newer codec called the HEVC codec and not to get to complicated but we believe they will reduce by both two-thirds demand and so we will be able to ride those codec roughly at the same time as HDTV, 4K-TVs are coming on to the market plus I will leave it your call you know, there is hike around 3D TV last year and years before and that really hasn't taken off, so we will see what happens with 4Ks I think there is a lot of room left particularly with pair bonding and as we do more and more fibre each and every year of course that is sort of the future proof technology like I mentioned before. On the spectrum side on wireless, we also follow global ecosystems and we are very active in understanding the 700 ecosystem what Verizon is doing versus what AT&T is doing, and so we are very tight in understating that and just rest assured that we’ll follow the most global ecosystem we possibly can as it relates to the 700 megahertz option.

The only thing I would add is where we have built out FTTN; we are 100% comfortable we are exceeding any demand of any customers for speed. We have no issue in the marketplace with any customers that yesterday issue for our company and all we do is pick that up with bonding because what bonding does is extend our footprint and the real issue we have is you see how fast can we get that FTTN or FTTH footprint out beyond the five million and just keep pushing that and pushing out the IPTV. So even with the use of IPTV on our bandwidth, we are not seeing any issue at all and we have some marketing analysis which we are not going to make here in the coming few weeks from Wade shop to take that up even another step, particularly in the condo market where its probably one of the great areas as you are in a condo you know, traditionally you had to be only with the cable guys and we've now broken through that log jam and now we are putting fibre into the condos. I mean that's a great market share opportunity for us for internet and TV and we are going to be all over that as all these buildings finally fill up outside this room. We hope.

Thanks. Couple of questions first on the wireless side, just a bigger picture on smartphone penetration. You guys talked about Canada being a leader there, wondering where do you think smartphone penetration could go in Canada specifically where that ceiling could be and also gives some context as to where do you think whether that ceiling you think has actually gone up over the last couple of years as you see more device come to the markets. The second question is more on the wireline side. IPTV numbers has been phenomenal but on the (inaudible) side, we are still seeing some losses I am wondering if you guys are going to be doing something there to try to change the trend there to try to see some improvement or (inaudible) the losses on family. Thanks.

On smartphones I think there's a balance between consumer demand and honestly a 100% of people want a smartphone. So what is the cap? A 100%, because everybody wants one. And what's counter to that is how much of an investment are we willing to make in COA for a particular subscriber who might be less credit worthy than you would hope for. So I think at the end of the day, given the cost benefits we will see as competition in smartphones heats up and that insatiable appetite for a device that lets you do anything and everything. The only thing that's the counter push against that is the credit worthiness frankly of the subscriber and not much of an investment are we willing to make. And there is increasing sophistication in our credit supporting systems as well, so we are able to go deeper and deeper. Next year we are targeting (inaudible) about 75% I think if I recall, and we don't see kind of a limit to where that might go on the smartphone side. On the satellite side if you want me to take that George mentioned that we have about 15% of our IPTV subs come from our satellite subscriber base, but of course we are faced with IPTV or Fibe TV competition and most markets now TELUS is doing in the [west], Manitoba you know in that territory, (inaudible) territories. So satellite is getting that pressure from Fibe TV technology on a national basis. Having said that we think we can make some improvements in our performance in satellite and we are certainly working hard at doing that.

But we will see cannibalization there.

For sure.

Right in that and then executing as Wade said where not as aggressive from Karen or from the TELUS folks is we can probably be a little stronger on the satellite side and the service on that has been top rate. (inaudible) but it's not going to grow close to the Fibe TV per share.

Could you talk a little bit about the trends you expect to see in your ability to low the network with five subscribers, and obviously any targets you have, if you wanted to share those with us. You mentioned you’d see some promos falling off and you are not renewing them. So how do you see the trends in loading and are you suggesting that a lot of the incremental loading will come out of the condo gain as oppose to the single family home. And second question would be on NLSC. I know you just got control of it, but what's the ultimate end game there. It just seems unsustainable that you and Rogers would stamp at the ownership levels you have given, as you’ve articulated, sports is the most important content and everything suggest it's going to be continue to be a very valuable content. So, any comments on how that relationship would develop?

Yeah, I am glad that you asked the question on Fibe TV because we're confused. So I apologize if we have. What we said is those customers who came on promotions last year for the first time are coming off because it's only our first full-year in the business. We will be just as aggressive in attracting new customers this year. In fact we have to see accelerated growth on Fibe TV subs this year to justify the extended footprint that we put in place. The end goal, one out two TV subs. How fast we get there, that’s over to the marketing folks. But its one out of two that’s the way it is. There is two ways in to the home and we want 50% of the TVs. It's just the pace and how we get there and that’s where we are going to play out. On the [Maple Leafs] sports and entertainment and the same as we have invested in the Montreal, Canadian, I mean that is clearly really Kevin’s space and I think Kev if you are going to make a couple of comments feel free and I will talk on the partnership issue myself.

We talked about the importance of sports the positions that we have taken have definitely helped us in negotiating what is still market value rates, but these are complex and tense negotiations, so that ability and that open door has helped us very much to secure like I said from MLSE we will wind up with a much better leased package than what we have today whenever the current one expires and to George for the future.

Yeah I think it’s important for investors the 20 year arrangement on content has been arranged for us going forward in the acquisition of MLSE. So the TSN franchise knows it has access to half of all these games, rapture games and soccer games for the next 20 years, on all four screens that’s the core to that and we are paying ourselves in that ownership model. So that’s the model and if you read there are some reports, there is no one with that integrated solution globally to lower your cost to capital in your media business which is really what I think we have done if you really follow through and there is no better content on the planet then those two assets that involvement of the Montreal Canadians and the Toronto sport franchises. Turning to the Rogers relationship in that particular area, it could not be better. We have proven strategically on a [nutshell], we can kill each other in the market and work strategically when we need to with our competitor in the west on a network sharing agreement where quite frankly it’s a never ending war as everybody knows, but we do think that is intelligent for our shareholders. So I have absolutely I think we will go on I think it will be years and years that partnership with them in that particular asset and I think if they would then want to speak to them I think they strategic benefits for them we see strategic benefits for us. I guess if someone moved out of the media business or did something completely different you’ll look at different partners. But I think people should relax that that’s going to be, I know it will be a very good sustainable model and winning franchises will drive revenue for Kevin, that’s the name we gain there. Let me just finish with just quickly hopefully it was helpful for the community to get some insights to know what we are trying to do. The focus is clear, it’s on cash flow. In the end I will leave you with one comment. I used to say for years and years when I competed with Bell that what would you do if Bell ever woke up. Well we woke up, thanks very much.