Good morning, ladies and gentlemen. Welcome to the BCE Third Quarter 2018 Results Conference Call. I would now like to turn the meeting over to Mr. Thane Fotopoulos. Please go ahead, Mr. Fotopoulos.

Thank you, Valerie. Good morning to everyone. With me here this morning are George Cope, BCE’s President and CEO as well as Glen LeBlanc, our CFO. As a reminder, our third quarter results package and other disclosure documents, including today’s slide presentation, are available on BCE’s Investor Relations webpage. An audio replay and transcript of this call will also be made available on our website. However, before we get started, I want to draw your attention to our Safe Harbor statement on slide 2 of the presentation deck. Information in that deck and remarks made by the speakers today will contain statements about expected future events and financial results that are forward-looking and therefore subject to risks and uncertainties. These forward-looking statements represent our expectations as of today and accordingly are subject to change. Results may differ materially. We disclaim any obligation to update forward-looking statements except as required by law. Factors that may affect future results are contained in BCE’s filings with both the Canadian Securities Commissions and the SEC and are also available on our corporate website. So on that, I will hand it over to George.

Great. Thanks, Thane. Good morning, everyone. Thank you for joining us. I’m on the slide that starts with Q3 overview. The company actually enjoyed an excellent subscriber growth quarter across TV, Internet and wireless, up 78,000 subscribers or 41.5% year over year. It was our best ever Q3 wireless performance with total net adds, pre and postpaid, up 66% year over year. We grew our wireline broadband market share in the third quarter with 88,000 Internet and IPTV net additions and strategically important added 77,000 new FTTH customers to our Internet base. Had a very positive quarter for wireline with all of our operating trends heading in the right direction with an acceleration of revenue growth, and also 1.2% EBITDA growth that continued with our industry leading wireline margins. Worth calling out that it was our best quarter for our business unit in over 10 years. Our buildout continues on the fiber side as well we have begun in the rural markets, a fixed wireless rollout that we began and have completed in 19 communities. Turning to wireless, as I indicated, we had a very strong operating quarter. Net adds from a postpaid perspective, up 15% year over year, our strongest postpaid quarter since 2012. Also strategically, very positive for us was that our prepaid business is now growing again, first quarter of positive net adds since the fourth quarter of 2009, so the lucky brand is clearly working in the marketplace and important for us, we would expect for the first time in many years that our revenue growth from prepaid would be positive now as we go forward into 2019. On ARPU, where we used to know as ARPU, we were down 0.7% year over year, although impacted specifically by the federal contractors I talked about last quarter.…

Thanks, George and good morning, everyone. Let me begin with a high level review of our consolidated Q3 results on slide 10. Our financial performance was strong across the board with total revenue growth accelerating to 3.2% on a year-over-year, increase at all three Bell operating segments. This drove 2.2% higher adjusted EBITDA, in line with our full year guidance target, as we balanced industry leading ARPU growth with subscriber profitability in a seasonally competitive quarter across both our wireless and residential wireline businesses. Consistent with this growth in EBITDA, net earnings were up 2%, which drove a 5.5% year-over-year increase in adjusted EPS to $0.96. EPS also benefited from favorable tax adjustments in the quarter and lower other expense, which I will detail a bit later in my presentation. And lastly, free cash flow, although adjusted EBITDA growth and lower CapEx provided a healthy incremental cash contribution in the quarter, this was effectively offset by higher income taxes paid and a decrease in the cash from working capital, resulting in a year-over-year step down in free cash flow in the quarter. Let me turn to slide 11 and wireless. In our wireless business, total revenue was up 5.9%, driven by continued strong subscriber additions in a growing Canadian wireless market and increased sales of higher valued smartphones, reflecting a greater volume of customer transactions compared to last year. Wireless EBITDA increased a solid 4.5% on the flow through of strong revenue growth. However, EBITDA margin declined 60 basis points to 43.6% due to a higher proportion of low margin product revenue in our overall wireless revenue mix compared to last year and rich handset discounts to match competitors’ aggressive back to school promotional offers. On the capital front, as George mentioned, we continue and invest heavily in mobile small…

Thanks, Glen. So before we start the Q&A period, to just keep the call as efficient as possible, I ask that you limit yourself to one question and a brief follow up, so we can get to as many of you. If we have additional time, we’ll cycle back. That being said, Valerie, please open the lines for questions.

Thank you, Mr. Fotopoulos. [Operator Instructions] Our first question is from David Barden with Bank of America.

I guess one of the standouts in this quarter was the strong prepaid performance in the Wireless market. Could you guys talk a little about, is the strategy here to kind of make a stronger move in this market and then kind of groom these subscribers up into the postpaid market or is something else going on, it would just be great to kind of hear the strategy there?

Sure. Yeah. Actually, it is, in one sense, what you just mentioned, David. I mean, we really were not in this space for a number of years competitively as a number of investors will know. I think, we’re excellent in postpaid execution. We saw market opportunity on prepaid, one of our peers I think has done very well in that space. Clear there is a market there. So we've entered it with Lucky. Now, that it's national, you can start to see that we're clearly taking some market share and from our perspective, that ultimately gives us an opportunity to migrate that base, some of that base to postpaid, which we think is going to be strategically important going forward. And we think as I mentioned, one of our peers has done a good job with that the last number of years and so we entered that a year ago and what I'm really pleased with now is, what's been a negative revenue growth line for us for 8 years will turn positive and of course that's just a net contributor to the overall wireless story.

And if I can just do a quick follow up, I mean, another -- as you pointed out, standout in the quarter was the business strength, is it purely economic growth, is there some sort of product cycle that's evolving in that segment. Is there reduced competition? Is there -- if you could kind of -- is this something we can expect to continue or is this just an anomaly?

First of all, as we all know, one quarter doesn't make for a trend, but we have on the last number of calls mentioned that that underlying business was feeling stronger across small, medium and enterprise and we have been pleased with the results this year. We think also competitively, we believe we have taken some market share with just strong execution in the market, but the underlying piece I think of Tom Little, who runs that, were on the line, he was sure the underlying part of that too is some strong growth in the Canadian economy, adding to that and we've said over time that we needed that type of growth to help that unit and so we're seeing that, but clearly anything that’s positive in that sector from our perspective is bonus for the wireline business and helps contribute to what was I think one of our better top line quarters for the company, relative to expectations in a number of years for us on an overall -- from an overall standpoint.

Our next question is from Jeff Fan with Scotia Bank.

I just want to ask about the ABPU trend and excluding the government contract, the ABPU still slowed from last quarter, so I'm just wondering if you can talk a little bit about, excluding the government contract, what's going on in the underlying trends, is this some of the data promotions that we've seen and talked about, is there anything else noteworthy that's worth pointing out?

Yeah. I think two things, great question. What I mentioned is well, obviously, our denominator numerator math is slightly changing on pre versus postpaid because of Lucky. And so, that’s obviously going to have some impact, but overall, obviously, it's a weighted average overall better revenue growth over time. So that's one of the other elements and then I think the other one is clearly the buckets are larger, so the out of bucket revenue growth, this impact, I mentioned that last quarter is one of the reasons we talked about excluding a couple of these strategic items, looking for CPI type of growth and I think that's basically what we're seeing, the migration of customers to LTE has happened and now the buckets have got larger and as a result, you see the type of ARPU we've got, which frankly underlying those two things is still positive growth from an ARPU perspective, but that's really -- that's exactly what you raised is exactly the issue.

And just a quick follow-up on the CapEx, I mean, it's amazing to see capital intensity in wireless at 8% or it looks like it's going below that. A lot of investors I think have been asking, talking about 5G. How sustainable do you think this level of capital intensity in wireless, as you look out the next few years?

Yes. So, I want to be a little careful there because of guidance comments. I think for sure, we have directed the street where we see where CapEx intensity will drop next year, but part of that is because we're so advanced on our LTE four bank quad speeds that are people are seeing 750 speeds off of our product today and the fact that our fiber backhaul is really being built on the back of our wireline capital intensity. So we think that's contributing to the CPI that we have. Going out after that, as you start to overlay some 5G, the real test on whether or not that intensity level will go up will be a function of how much revenue growth you've had in wireless over say that 24 month window from now. And so, you do get some headroom on that intensity on the back of the higher revenue growth, whether or not, it goes up from where it is, or we're talking about next year for some of the 5G that may be the case, but I don't think we're today ready to give that type of direction to the investment community.

Our next question is from Simon Flannery with Morgan Stanley.

Just staying on the wireless service revenue growth, it's -- I think it was 2.5% year-over-year in the quarter. Obviously, you’ve got some good volume growth, but some headwinds from, as you were just discussing. Given your CPI comments, do we sort of trough here and sort of stabilize in this 2% plus level or could we have another quarter or two of deceleration before it picks up again? And related to that, I guess is how far through this out of bucket absorption, is there still a lot of out of bucket revenues that could get kind of put into the main build over the next few quarters? Thanks.

Well, I want to be careful on a month by month or quarter by quarter ARPU forecast. I would say this and we’ve tried to give some direction on ‘19 overall on where we see the cash and the business. And then from an ARPU perspective, I mean on a blended ARPU perspective, using the old term, clearly as prepaid is a bigger mix, because we didn't have prepaid growth that will have some impact. The -- and the federal government still got to work its way through and then that will normalize itself out as we get into next year, probably the latter half of next year that's finally through in terms of that entire base moving over to us. Those are kind of the two key components of that. But underlying all that, we still really feel quite strong about the execution of our postpaid business. Hopefully, that's helpful.

Great. And on the outer edge?

Well, overs is what I said. I mean, that's a question of the competitive marketplace quite frankly, the larger buckets clearly as where we've seen right across the entire country, not the acceleration in ARPU is, part of that is the buckets are larger than they were before. Now, the next acceleration of speed, when that happens, may we see another acceleration, a larger bucket used for right now, what we've said is really what we're seeing.

Our next question is from Phillip Huang with Barclays.

George, just wanted to – a question on the prepaid opportunity. I know, it's still early days for Lucky Mobile, but just given the strong acceleration, I was wondering if you might be able to provide some color around the profile of the, I guess, average prepaid subscriber, obviously, I was wondering if you could give us a sense of the prepaid ARPU you’ve been able to load subscribers at and also given the greater reliance on self-service, was wondering if you could give us a sense of a total margin that is achievable for the segment, just relative to the postpaid segment?

Yeah. It’s a very different segment and it’s the same that we cleared, as I said, we're competing it. I think a lot of it is in the -- some of the city markets, so that's an opportunity for us to grow market share, because it's a no credit check product for us, it also opens up some markets we weren't pursuing. That's another piece for us in terms of that. In terms of ARPU, we’re not really giving it. We don't mix the ARPU out. It's not really any different than what traditional prepaid was or that we think it will be higher as we execute it. What I love about it, it's not any more than a 2-month payback from a cash perspective, every subscriber. And so, that's a really nice way to grow some EBITDA huge dollars, better than a drain the other way and the key strategic point obviously is to capture a share that we're really one of our players is taking literally all the share in that space and migrating those customers from our Lucky brand to our other postpaid brands over time versus not getting that opportunity. And so, we do think ’19, as I mentioned for the first time probably since ’09, will actually see some positive revenue growth in that category and of course that's helpful overall for wireless.

That’s helpful, George. If I could do a quick follow-up on the fixed line side, obviously very healthy acceleration in both your Internet and IPTV subscriber growth and 2018 being a year of expanding fiber in Toronto, I was wondering if you could comment on your wireline subscriber performance across the various regions you’re in in Quebec versus Ontario.

Yeah. Careful competitively, but I would say we were very pleased with the results across the board. Frankly, we’d still like to see even more traction in our Toronto fiber footprint and we think that's just execution in the marketplace. In the other areas frankly, we had just a tremendous result. So now, it’s just head down, strong execution in Toronto, pushing the Alt TV in that marketplace, because it's very, very conducive to the condominium market. It's a two stream product, no set-top box and a pull through of Internet, which is perfect with fiber and of course with the 1.5 product now in the market. We think that’s working. Having said all that, we did 77,000 customers moved or added to our fiber footprint and that's by far our largest quarter. We’ve been running at about 45,000 up until now.

Thank you. Our next question is from Aravinda Galappatthige with Canaccord Genuity.

George, just wanted to focus on the fixed wireless opportunity that you touched on in your prepared remarks and perhaps a little bit more color on the size of the opportunity. I think in the past, you’ve indicated the size of around 800,000 households. Just wanted to get a sense of the magnitude of the opportunity. I mean, are these substantial areas where you have sub-10% market share and you're kind of looking to get to it, perhaps 30, 35 and that gives the sense, but I just wanted to get some color around the size of the opportunity? Thank you.

Yeah. So for those that don't know, it is what you said. We’ll do 700,000 to 800,000 households over the next, won’t give the exact timeframe for our competitors, but it will be executed on. It's in communities now where, you're right, in most cases, we have sub-10% market share. These are customers that may be sitting on a satellite service offering or frankly on even some of them, even on dial-up Internet, where frankly there's been no solution. What we're doing, because we're putting fiber to every cell site in anticipation of 5G, then the cell sites now have fiber capability and then there are products available now, leveraging our 3.5 spectrum that we can use that allows someone to have a fixed product in the home and speeds of 25 to 50 that they will get off of that and a competitive product and then we obviously have the ability to bundle that with our satellite and even in some cases, obviously our local access. So our strategy around that is, I guess, now laid out for the street to see. It is those communities and it brings the communities in Canada that up until now have not had the broadband speeds that other markets in the country have had. So it’s a growth opportunity for us, at least for Canadians and a great leverage of our 5G technology set up, because of the fiber backhaul investment we’re making. So we’re excited about it, as you can tell listening to me.

Our next question is from Maher Yaghi with Desjardins.

I wanted to just, I mean the mass on impact on -- off the government contract on your wireless ARPU makes sense. I just wanted to understand if, I guess, from my calculation, it looks like, it's speaking right now the negative impact probably another difficult Q4, but then we cycle through Q1, Q2, should start to relieve itself. When you look at, after we go through this transition, are you expecting George to get back to 1% to 2% postpaid ARPU growth or we're more into the 0 to 1%? And I have a follow-up question on wireline.

Well, first of all, we answered this one way. Let me just try another way. And I’m obviously not going to give ARPU guidance for 1, 2 years out in the percentage, but some of your comments about the federal contract moving through, you are correct. So some of those will mitigate, but the offset of that of course, which will come back obviously in the first quarter as we always do and share with the street how we see the market. The offset of course is the mix issue. Analysts are going to want to start to do, I think, is do okay, a postpaid assumption, a prepaid assumption, prepaid is no longer declining in your base, the blended ARPU is kind of for us now gets to be at a funny number to compare on and so we're going to have to decide even internally here how we direct the analyst community to understand the difference between the two items. So we'll just -- we'll see how that unfolds. But if you step back, this type of overall subscriber growth for wireless is what's going to drive the top line revenue growth for the company and that's what I'm so thrilled about with the quarter, because we've got all cylinders hitting on postpaid and prepaid in terms of market share growth.

Yeah. We've been trying to split postpaid and prepaid, maybe you can help us by giving us the numbers essentially that would be even more helpful.

It would also be very helpful to my competitors. So we'll balance that off against the free cash flow generation of the company and you guys know us.

Yeah. No. I understand. And on Internet, I noticed a nice acceleration of Internet loading and the quality of the Internet loading seems to be better, more retail oriented than wholesale, but can I -- I wanted to ask you, when I look at last year versus this year, it seems like you're less competitive on the wholesale side, more competitive on the retail side. Can you talk about maybe just what's going on? Is Rogers more competitive on wholesale and when you look at the quality, the ARPU generation from an Internet load, how do you see it going forward?

So I would say, first of all, your observation about our focus is correct. Our focus is on retail, one of the reasons we launched the Virgin Internet brand is it's competing at different price market that was there in the wholesale market. We might as well compete for that and also compete at the retail price, not at the wholesale price. And then of course with the migration we're talking about on the fiber side, that's obviously high quality retail customer base as well. And then I think you see it in our overall revenue growth, wireline, and we happen, because our competitors disclose their Internet revenue growth, we can see that, we captured more than 50% of the Internet growth in the quarter. And so maybe it gets a little bit away from just subscriber growth now and now more mix of subscribers are wholesale versus retail that will drive it. And our focus is 100% on retail, the wholesale is a regulatory obligation, not a business strategy for us.

So less focused on wholesale, but still decent revenue coming from that segment of the market. What's -- why has it changed in your view going from, let's say, telco, ISPs, telco delivered ISPs to cable?

Well, I don't know why -- you have to ask the cable companies on strategic focus and our focus is to launch of the Virgin Internet brand to compete with wholesale, but we access the retail revenue stream. Canadians get the benefit of competition and we get the benefit of a revenue stream that would be double what we get through the wholesale market and that's really our strategy there. That's basically -- it's retail pricing for us and retail top line growth against wholesale growth and as everyone knows, it's a regulatory requirement for wholesale, not a strategy of Bell.

Definitely it makes more sense. One last question on the pension, maybe for Glen, trying to just figure out, if there is a difference in between the 1 billion to 1.5 billion of lower anticipated cash funding and 200 million of potential savings and current service costs, are these mutually exclusive or inclusive?

Good morning, Maher. Yeah. If you look back over the past five years, our current service cost pension contributions coupled with the current – the voluntary contributions we had to make and/or the contributions we made into the plan, you'd get a number that's north of $3 billion. I think it's around 3.3 billion. If I look out forward, over the next five years, I think the material special contributions are behind us and I know we've discussed that before. Current service runs at about 400 a year. So, the number we quote doesn't take into account contribution holidays and as I think where you're going, I think we have 1 billion or more opportunity, reduction in cash strain because of not having to make these special contributions to the plant. Now, accelerate that one step further and we all see that we’re headed for a rising interest rate environment over the next 12 and 24 months, 50 to 75 basis point increase in interest rates is going to take us well beyond that fully funded position we've been chasing for 10 years and get us into a position of being north of 105% and that allows you to take contribution holidays of up to 200 years. That number could even be bigger.

So I should add them together, if you ever get to above 105?

Yes. That would be a great day.

Our next question is from Batya Levi with UBS.

Can you talk about the churn differences you're seeing for your standalone broadband product and when you bundle it with video and how you think about the competitive environment for the bundle and how you balance subscriber growth versus profitability going forward?

Yes. So and our churn rates on broadband, wholesale is by far our highest churn rate and it's our lowest ARPU. So clearly not strategic focus for us. Our lower churn comes when we do have bundled our TV product and our Internet product combined, a dual I guess is what we would call. We obviously have some that take local access as well. We clearly have 3 million of local access customers still. So if you have a triple to even more powerful for us, but right across the board, our churn levels are lower. When we have the multiple product in the household and one of the things for us with our Alt TV strategy is historically the condominium market was stronger for our peer than us. The build-out of fiber combined with a TV product that doesn't require a set-top box, that's priced reflecting the no requirement for a set-top box. So anywhere from $10 to $20 cheaper than traditional TV because we don't have the set-top box with a truck rule for that type of set-top box installed saves us money. We're passing that benefit through to the consumer and you combine that with our Internet, we think that's a good package for us going forward, opens up a market that may be part of the core cutting market or the core number market for us. And I think you see that in our results today, where we actually have -- saw TV subscriber growth across our footprint and specifically clearly in the city markets, because our decline of any was in the satellite, even though that was better year-over-year. That's where the decline still is.

One follow-up, comment about next year with lowering capital intensity, cash savings from the restructuring kind of lower taxes, can you talk about how you think about capital allocation going forward?

Yes. Sure. I think we've had this question many times and I think our past performance is the best indicator of the future and that is one a balance, we've been respectful of ensuring that we maintain our investment grade credit rating and ensuring no action, we take that -- puts that in jeopardy. We’ve followed a dividend growth model year-after-year, ensuring adequate return of capital to our shareholders and we're proud of that and think that cash flow generation of the company allows us to continue that and finally, we invest heavily in the networks we need to support the future. And when you listen to what George has said on our fiber backhaul build and how far we are in 5G readiness, the fact that we're now approaching 50% of our homes with fiber to the home, I would say, this is an organization that takes seriously the investments required to be an industry leader in the networks we've built. So it's one of balance and nothing's changed as we look out.

Our next question is from Drew McReynolds with RBC.

Just to follow-up on the business market side of things. George, you talked about obviously a nice kind of tailwind there with potential kind of market share gains, wondering if you can just strip it down a little bit, you've talked for many years about the structural employment kind of issue, not just in Canada, but across the board. So, is this kind of simply a very strong cyclical tailwind that's coming, is it bodies, is it new business formation? And then just a follow-up to that. On to 5G and things like smart city and incremental revenues there, you obviously are the biggest business market enterprise player in Canada. Does that give you some kind of a leg up here in terms of being able to leverage that into what we all probably see down the road as a nicely going revenue pool around things like smart city?

Yeah. So on the first part of the question, it is -- our underlying -- we like to think we're executing better obviously and we think we are some of the structural things we did a couple of years ago, having small business move under where we do some of our direct consumer business I think has helped us that are enterprise and mid-market focus on that customer base a little different. We've done a lot of fiber too which sometimes get lost in this market, already we’re bringing up a lot of fiber for businesses going out as well in the marketplace. Some of the indirect fiber in very rural markets, but for customers that have branches or retail that we're doing as well, which we think is a competitive advantage in the marketplace for us, but I think it's probably fair you step back on that and say stronger economy, reasonable job growth is clearly giving us some of that strength as well. I don't think it's something more structural than that. The IoT, we actually are very excited about our enterprise positioning there with our wireless business going forward. There's a number of things we're working on, a number of initiatives, the street will hear about them as they hit the marketplace, but internally for us, we would think -- we have -- you see our total wireless base today, we think we will add at least that many of our entire base to our IoT base over the next 5 years, albeit at a much smaller revenue in that the number of units with lots of those applications and we're now in the midst of actually working on and starting to roll out with our BBM folks and our wireless sales folks. So we are quite excited about that space in fact, and there'll be a lot more to come to investors on that over the next year or two from us.

And if I can just slip in a follow-up here, just on the prepaid, obviously, great traction there. Has the profitability, George, of that business evolved? I know, we've talked about the cash return, the revenue growth, but on the profitability side, however, you want to measure it, just with technology and how you run that business, is it different than it was 5 and 10 years ago?

For sure. There's no doubt it's different. First of all, the top up capabilities are still different. It's not as manual in terms of what we were doing there. The distribution can be so much more, leveraging online service as opposed to as much through, what would have been a lot more administrative processes. So it is a much easier business for us to be in. The other one for us is our distribution strength that we've had for years, we could argue the reason we’ve been able to pick that pace up on our product in 12 months, that type of market share is just putting it across our channels and we now have even, we have additional channels, we have been carrying Lucky and we make the decision to put the product there, that should move us closer and closer to our peer, which is really what we're just trying to get to. As with all of our business lines, we want to capture for us the market share based on our scale and size. We're not quite there yet on the prepaid, but we're going to work on that over the next year.

Our next question is from Richard Choe with J.P. Morgan.

Hi. Was CapEx intensity going down? How should we think about the current trends, because video and broadband seem to be doing well on the fiber side? Do you expect any changes there? And then maybe this might be a little bit of an issue, but as you move from the urban to more rural build, do you expect any changes there?

So the first question, it's almost no, but it's probably too short an answer. So I would say, the fiber build continues next year. So I’ll make sure everybody understands that. In addition to that fiber build, we're doing the rural build that we talked about using the wireless solution. And on the -- some of our builds for fiber are less expensive next year, for instance, Montreal as we continue to build out is much more aerial, but that's clearly offset by an area like 905, which for those on the line who don't know, that would be outside the core Toronto. That is a lot of buried and so that's very expensive fiber. So on balance, there is not really a big pick up there, but the pace just continues. I think because we pass the 50%, we'll pass the 50% threshold market, we just know -- we're seeing the results. There's no reason to accelerate it, just continue the pace we're on and then take maybe some of that additional capital and put it into this wireless opportunity, where as we talked about half an hour ago, we really have literally no market share in those markets.

And then in terms of the NAS losses on residential, they continue to be pretty high. Is that because of MTS or is there something else going on there?

There's really not -- I have to admit, it does bounce up and down. I think probably investors have notice that as well. It's clearly just with unlimited voice products now, it's so many different categories of wireless. Substitution just continues and I think it's going to continue as we know across the board. And so it is -- we do – I have to admit, some quarters, it improves year-over-year, some quarters, it declines, but the rate actually accelerates year-over-year. We can't really put a finger on some distinct difference, but frankly, our focus clearly is on the other product portfolios now to get enough revenue growth to offset that what we all know is a continuing trend.

Our next question is from Vince Valentini with TD Securities.

Just a clarification for Glen and then a bigger picture question for George. Glen, with the $0.08 tax benefits in Q3, did that push you towards the higher end of your EPS guidance range for the year or you do maybe get some reversal of those tax benefits in Q4? And George, bigger picture for you, I mean, we can't live in Toronto and not know of friends or family who aren’t seeing incredibly rich promotions from either Bell or Rogers on activation or retention, as you guys rollout fiber to the home and find it out. Is this normal in your mind compared to Quebec City and some of the Atlantic markets where you've launched fiber to the home earlier, this kind of initial promotional battle and does it ease over time or do you think there's something a little bit undisciplined going on in the Toronto market right now?

I'll jump in first for the easier question for me, Vince. We provide a pretty tight range on EPS, $3.45 to $3.55. So I'm not going to try to narrow that range on guidance. I reconfirmed all of our guidance ranges today. And then over to George on the other question.

Sure. So, I guess what I would say, if you step back for all of our investors, our fiber strategy has been and still remains that ultimately we would like to see our market share change from where we were under 50%. I think, we're roughly 40 of the Internet market and over time with this type of fiber and the leading technology, with prudent execution, we should be able to obviously get ourselves into a market share, we're getting one out of two of the net adds or now, it was an interesting metric I said on the call, at least 50% of the incremental revenue, which is ultimately the real test that you want to see. In our market, we’ve had fiber in for a while. We see those metrics coming. People who have been analysts or in Toronto are seeing Toronto as a competitive market. Absolutely, it is. And from our perspective, we're just so pleased with our service revenue growth this quarter over previous quarters and we see that relative to some of our peers. We know what we're doing is working in the marketplace and so it's a long game. It's not a quarter game for us in terms of that market share. We know it's, as people move from home to home, if you're selecting Internet provider, there's no better Internet at 1.5 available quite frankly in the world. So we just have to execute that strategy in a disciplined way. And bundling the products of TV Internet are very important to us. The strategy around Alt, which is no set-top box TV and also our set-top box IPTV is a core strategy to what we're doing, because that brings us obviously an average ARPU on balance, it's more than $100. And as people know, with Bell Media, we pay a lot of our content to our own company, so that's really the strategy around -- that we're executing on. Remember though, for investors, Alt TV is two streams maximum and that's the difference between the set-top box and non-set-top box market.

Just one final piece, Vince, maybe I wasn't clear in my opening remarks, so I'll apologize. The $0.08 that I alluded to, that was always in our 2018 financial guidance range that we provided at the timing of occurrence.

Our next question is from Tim Casey with BMO.

Just, could you comment on execution going forward, in light of the regulatory review of sales practices? There was some discussion of the potential for a code of conduct. Did you think anything's going to come out of that that will retard your ability to execute on the bundle and those type of things in Toronto and otherwise?

So, I don't think there will be any impact on our execution from a distribution perspective. We have so many channels of distribution and sell hundreds and hundreds of thousands of products in the marketplace. And so we've been very clear, even in the CRTC, on the sales side, something wasn't executed the way it should be and that's not acceptable and has to be addressed and we do that every day in the organization as what we do in the marketplace. We’ll see how the CRTC responds. There are some suggestions we made that may be helpful for everyone. Some of our peers did as well and I'm sure they’ll have some suggestions and whatever way they come at us, we'll obviously execute within those. And at the same time, I don't think it'll have an impact on demand in the Canadian marketplace. This is a highly competitive market as it’s been brought up by a few analysts and Canadians are seeing the benefit of the best broadband, as we all know the best broadband technology available in the world and some of the most creative products. So that's what we've got to make sure Canadians view us and that's how we keep executing.

Valerie, in the interest of time, this will be our last question.

Thank you. Our last question is from Sanford Lee with Macquarie.

Hey, I just wanted to follow-up on the fixed wireless opportunity. I know, it's early days, but what are your thoughts with respect to additional fixed wireless broadband ops outside of your incumbent wireline footprint?

No. Our strategy is to leverage our wireline infrastructure. It's a wireline product for us, because we have the backhaul in all that footprint. That model doesn't work for us, if we're not the ones who are providing the backhaul and the fiber to the cell sites and that's where our build is. What's very unique for us is our entire 5G build requirements in our wireless footprint and our fixed footprint, in our fixed build that we're planning is all within our wireline footprint and that's the synergies out of our fiber and that's why you're seeing this in wireless where it is. So, it's going to be in our footprint.

And I guess that changes if you, [indiscernible]. Sorry last one then is impediments to 5G rollouts, it looks like obviously you guys are well covered when it comes to 5G CapEx, but where are we when it comes to things like small cell site location.

Well, you know what, I think first of all, one of the things for us, which is very different than some other countries around the world because of the carrier aggregation we've done and the fiber backhaul we’re already done, I think most people on the call know our speed is 700 theoretically, some getting up to 1 gig in theory on wireless. So we're well in front of a lot of some of the early 5G benefits that will come. 5G to mobile, we said is still a while away and that will be a migration for us and customers ultimately see some technology. The cell sites, we are in the midst of building thousands of small cell sites right now and I talked about that last year on the guidance call. I’ll clarify that again for next year for everyone to see it. I think we'll have thousands of small cell sites done at the end of this year and happy to share that as same, we’ll be happy to share it offline. I don't have it at my fingertips right now, but I’ll certainly bring it back in February and share with everyone on the call.

Good. So on that, thanks again for your participation on the call this morning. I will be available throughout the day for any follow-ups and clarifications. So, have a good rest of the day. Thank you.

Thank you, gentlemen. The conference has now ended. Please disconnect your lines at this time and we thank you for your participation.