Q4 2021 BCE Inc Earnings Call
Speaker 1: networks are clearly delivering immediate tangible benefits on subscriber growth, market share and internet revenue.
Delivering immediate tangible benefits on subscriber growth market share and internet revenue in.
Speaker 1: In fact, in the past two quarters, we achieved positive total retail residential net customer additions including satellite TV and home phones.
In fact in the past two quarters, we achieved positive total retail residential net customer additions, including satellite TV and home phone its.
Speaker 1: It's the first time we've done so in seven years, driving our best annual residential RGU performance since 2011.
It's the first time, we've done so in seven years, driving our best annual residential <unk> performance since 2011.
Speaker 1: We also continue to win share in our rapidly expanding fiber footprint with 202,000 new net fiber customer additions, up 20% over 2020, which contributed to strong annual internet growth of close to 11.5% in 2020.
We also continued to win share in our rapidly expanding fiber footprint with 202000, new net fiber customer additions up 20% over 2020, which contributed to strong annual internet growth of close to 11%.
Speaker 1: As our team continues to manage near-term COVID financial impacts and ongoing legacy service decline, the organization remains focused on putting the building blocks in place to ensure Bell is strategically well positioned to capture a leading share of the IoT and next-generation solutions revenue enabled by 5G fiber conversion.
As our team continues to manage near term corporate financial impacts and ongoing legacy service declines the organization remains focused on putting the building blocks in place to ensure bell is strategically well positioned to capture a leading share of the Iot and next generation solutions revenue enabled by <unk> fiber convergence.
Speaker 1: With significant high-capacity 3.5 GHz airwaves at our disposal, we have the mid-band spectrum necessary to drive the rollout of true 5G across Canada. But success in 5G and IoT will depend on more than just coverage.
With significant high capacity $3 five gigahertz Airways at our disposal, we have the mid band spectrum necessary to drive the rollout true five G across Canada.
Success in <unk>, and Iot will depend on more than just coverage industry leadership requires delivering the fastest speeds in the lowest latency.
Speaker 1: Industry leadership requires delivering the fastest speeds and the lowest latency.
Speaker 1: Bell's wireless network offers the fastest data speeds and quickest response times as certified by PC Mag, Ookla, Tutela and Global Wireless Solutions in their latest studies of mobile network.
And Bell's wireless network offers the fastest data speeds and quickest response times as certified by PC Mag.
Two tele and global wireless solutions and their latest studies of mobile network performance.
Speaker 1: Leadership also requires leveraging network points of presence such as central offices for MEC that support product development. In that regard, Bell has already entered into strategic partnerships with Amazon Web Services, Google Cloud and other major hyperscalers to expand our IoT, MEC and cloud offices.
Leadership also requires leveraging network points of presence such as central offices for Mac that support product development in that regard bells already entered into strategic partnerships with Amazon Web services, Google cloud and other major hyperscale or to expand our Iot mec and cloud offerings and leadership.
Speaker 1: And leadership of course requires cultivating deep relationships with the biggest Canadian.
Of course requires cultivating deep relationships with the biggest Canadian companies. So no matter, which critical success factors you look at we're very well positioned.
Speaker 1: So no matter which critical success factor you look at, we're very well positioned. And we're continuing to build 5G momentum with innovative new business and consumer applications. Recent 5G enterprise initiatives include our recent announcement that Bell became a founding partner and exclusive telecom provider of the peer at the Halifax...
And we're continuing to build <unk> momentum with innovative new business and consumer applications. Recent <unk> enterprise initiatives include our recent announcement that bell became a founding partner and exclusive telecom provider of the peer at the Halifax Seaport, we're deploying a <unk> ready wireless private network to enable a living lab.
Speaker 1: We're deploying a 5G ready wireless private network to enable a living lab that will shape the future of the transportation, supply chain and logistics industries in Canada. Another initiative I'd like to highlight is the launch of Smart Supply Chain powered by Bell IoT Smart Connect, a software as a service IoT aggregation solution designed for fleet and supply chain operators.
App that will shape, the future of the transportation supply chain and logistics industries in Canada.
Another initiative I'd like to highlight is the launch of smart supply chain powered by Bell Iot Smart connect a software as a service Iot aggregation solution designed for fleet and supply chain operators one of the first applications as cold chain monitoring solution to automatically record temperature levels and provide real.
Speaker 1: One of the first applications is cold chain monitoring, a solution to automatically record temperature levels and provide real-time alerts when they fall outside safe ranges while cargo is in transit.
Time alerts when they fall outside safe ranges, while cargoes in transit.
Speaker 1: On the consumer side of things, earlier this week we launched our new Unlimited Ultimate plans. We believe these plans will truly demonstrate the value prop of 5G and serve as a catalyst for the upcoming upgrade cycle from 4G to 5G handsets. We are also going to drive existing 5G customers up the Unlimited Rate Plan curve by distinguishing
On the consumer side of things earlier. This week, we launched our new unlimited Ultimate plans. We believe these plans will truly demonstrate the value prop of five G and serve as a catalyst for the upcoming upgrade cycle from <unk> to <unk> handsets.
We're also going to drive existing <unk> customers up the unlimited rate plan curve by distinguishing the superior video quality offered by our ultimate plans and leveraging crave mobile.
Speaker 1: superior video quality offered by our Ultimate Plans and leveraging Crave Mobile.
Speaker 1: And as we execute on our strategy, it's definitely worth highlighting that we're hitting the public policy sweet spot of quality, coverage and price.
And as we execute on our strategy, it's definitely worth highlighting that we're hitting the public policy sweet spot of quality coverage and price.
Speaker 1: Our quality speaks for itself. As for coverage, it's accelerated considerably in both urban and underserved rural areas as a result of our capital advancement program. And on price, we achieved the federal government's 25% price reduction target well ahead of the January 2022 deadline and that's for mid-range wireless.
Our quality speaks for itself.
For coverage, it's accelerated considerably in both urban and underserved rural areas as a result of our capital Advancement program.
And on price, we achieved the federal government's 25% price reduction target well ahead of the January 2022 deadline and Thats for mid range wireless plans.
Speaker 1: And according to recent StatsCan data, wireless services declined 15% in 2021, while the price Canadians pay for all goods and services has actually increased 4.8%.
And according to recent stats can data pricing for services for wireless services excuse me declined 15% in 2021, while the price Canadians pay for all goods and services is actually increased four 8%.
Speaker 1: So we're seeing the impacts of elevated price inflation across the Canadian economy, yet our industry is delivering the highest quality services at decreasing prices.
So we're seeing the impacts of elevated price inflation across the Canadian economy, yet our industry is delivering the highest quality services at decreasing prices.
Speaker 1: I'll turn now to media. Our media segment experienced a notable rebound from COVID in 2021 as TV ad revenue returned to pre-pandemic levels in Q3.
I'll turn now to media or media segment experienced a notable rebound from Covid in 2021 as TV AD revenue returned to pre pandemic levels in Q3, while our focus on French language television led nouvel to outpace its main competitors in viewership growth.
Speaker 1: while our focus on French language TV led Nouveau to outpace its main competitors and viewership growth.
Speaker 1: And we're also gaining significant traction from our pivot to a digital first strategy, which I've discussed in the...
And we're also gaining significant traction from our pivot to a digital first strategy, which ive discussed in the past.
Speaker 1: A little bit more on that. Like consumers, advertisers gravitate towards quality. And that's what we're delivering to them with industry-leading content delivered on high quality online and traditional platforms to the largest audiences, a growing proportion of which is addressed.
A little bit more on that like consumers advertisers gravitate towards quality.
And that's what we're delivering to them with industry, leading content delivered on high quality online and traditional platforms the largest audiences.
Growing proportion of which is addressable.
Speaker 1: Advertisers want the most effective way to reach a specific audience for a specific message.
Advertisers want the most effective way to reach a specific audience for a specific message.
Speaker 1: Sometimes that requires a broad reach and sometimes that requires addressing a specific or targeted audience.
Sometimes that requires a broad reach and sometimes that requires addressing a specific targeted audience with <unk> TV and the bell advertising platform, we deliver powerful AD tech to advertisers for all of those needs.
Speaker 1: With SamTV and the Bell Advertising Platform, we deliver powerful ad tech to advertisers for all the...
Speaker 1: and the strategies working. Digital revenues increased an impressive 35% in 2021 and now represent 20% of total Bell Media revenue.
And the strategy is working.
Digital revenues increased an impressive 35% in 2021 and now represent 20% of total Bell media revenue, which is up from 16% last year.
Speaker 1: is up from 16% last year. And underpinning this very strong performance was Crave, which grew direct streaming subscribers by 28% in 2021. We continue to scale our CTV Avod app, which became the top Avod platform in Canada this past year. And of course, I mentioned our SAM TV sales tool, which tripled sales revenue in 2020.
And underpinning this very strong performance was crave.
Which grew direct streaming subscribers by 28% in 2021, we continue to scale, our CTV Avon App, which became the top Avon platform in Canada. This past year.
And of course, I mentioned, our Sam television sales tool sales tool, which tripled the sales revenue in 2021.
Speaker 1: So the strategic initiatives I've highlighted across our operating segments are supported by our customer experience focused culture as well and that's driving improved satisfaction, loyalty and retention with improved NPS scores and lower customer churn. And this past year saw the formalization of our commitment to hold Bell to the highest standards in ESG with the launch of Bell for Better through which we will support a better workplace, better communities and a better world.
So the strategic initiatives I've highlighted across our operating segments are supported by our customer experience focused culture, as well and that's driving improved satisfaction loyalty and retention with improved NPS scores and lower customer churn.
And this past year saw the formalization of our commitment to hold bell to the highest standards of ESG with the launch of Bell for better through which we will support a better workplace better communities and a better world.
Speaker 1: I'm going to turn now to slide five, give you an overview of some of our key operating metrics specifically
I'm going to turn now to slide five gives you an overview of some of our key operating metrics specifically for Q4.
Speaker 1: Let's start with wireless We added one hundred ten thousand new net post paid mobile phone subscribers 49% higher than last year and 76% higher than q4 of 2019
Lets start with wireless.
We added 110000, new net postpaid mobile phone subscribers, 49% higher than last year, and 76% higher than Q4 of 2019.
Speaker 1: This strong result was realized despite reduced retail store traffic late in the quarter brought about by renewed COVID-19.
This strong result was realized despite reduced retail store traffic late in the quarter brought about by renewed COVID-19 restrictions.
Speaker 1: pent-up customer demand is helping drive higher new growth activations which grew 14% year-over-year. That's a function of multiple things. Stores reopening, immigration growth, 5G momentum, more focus on bundling of mobility with Bell's residential services and effective customer base management as you can see bar a low post-paid churn rate of 1.08 in the...
Pent up customer demand is helping drive higher new gross activations, which grew 14% year over year.
That's a function of multiple things.
Stores reopening.
Immigration growth.
<unk> momentum more.
More focus on bundling of mobility with bells residential services and effective customer base management as you can see bar, a low postpaid churn rate of one dot OE in the quarter.
Speaker 1: For mobile connected devices, although new IoT subscriptions increased over last year to 88,000, total net ads were just 39,000 as we continue to de-emphasize unprofitable, low R2 data device trends.
For mobile connected devices, although new Iot subscriptions increased over last year to 88000 total net adds were just 39000 as we continued to deemphasize unprofitable low <unk> data device transactions.
Speaker 1: And in prepaid, Total Net Ads were slightly positive, but that represented a notable improvement compared to Q4 of 2018.
And in prepaid total net adds were slightly positive, but that represented a notable improvement compared to Q4 of 2020.
Speaker 1: Lastly, a word on ARPU. It was up a strong 3.3%, our third consecutive quarter of year-over-year growth. This industry-leading result is a direct reflection of our continued focus on higher value smartphone subscribers and higher roaming volumes driven by the easing of international travel.
Lastly, a word on <unk>.
It was up a strong $3, 3%, our third consecutive quarter of year over year growth. This.
This industry, leading result is a direct reflection of our continued focus on higher value smartphone subscribers and higher roaming volumes driven by the easing of international travel restrictions.
Speaker 1: Turning now to wire line. We achieve the second consecutive quarter of positive RGU Retail Residential Net Ads. This represents our best Q4 performance since 2015, and caps off our strongest residential result, including satellite TV and home phone net losses in the past 10 years.
Turning now to wireline.
We achieved the second consecutive quarter of positive <unk> retail residential net adds this represents our best Q4 performance since 2015 and caps off our strongest residential result, including satellite TV and home phone net losses in the past 10 years.
Speaker 1: We added 48,000 new net retail internet customers, 7% higher than Q4 of 2020, during a time when we had experienced unseasonably strong demand due to COVID.
We added 48000, new net retail internet customers, 7% higher than Q4 of 2020.
During a time when we had experienced unseasonably strong demand due to COVID-19 .
Speaker 1: It was another standout quarter for Bell TV with our best Q4 IPTV net ad in the past three years. As we leveraged our multiple brands and lower customer churn, particularly in our IPTV fiber footprint to drive 29,000 new subscribers this quarter up 38% versus 20%.
It was another standout quarter for Bell TV with our best Q4, IP TV net adds in the past three years as we leverage our multiple brands and lower customer churn, particularly in our IP TV fiber footprint to drive 29000, new subscribers this quarter up 38% versus 2010.
<unk>.
Speaker 1: Putting all of this together at the end of the year, at the end of 2021, 91% of Bell residential households with TV and internet were on our FTPH.
Putting all of this together at the end of the year at the end of 2021, 91% of Bell residential households, with TV and Internet, where on our FTE Th network. That's a notable data point.
Speaker 1: That's a notable data point as the steadily increasing number of customers on Bell 5 services is driving stronger internet revenue growth, higher household ARPU, lower churn and improved overall EBITDA.
As a steadily increasing number of customers on Bell five services is driving stronger internet revenue growth.
Higher household ARPA lower churn and improved overall EBITDA performance.
Speaker 1: At Bell Media, TV advertiser demand remained strong throughout the quarter supported by the return to more normal Major League sports and Fall TV.
At Bell media TV Advertiser demand remained strong throughout the quarter supported by the return to more normal major league sports and fall TV schedules.
Speaker 1: The ongoing COVID-related challenges in radio also redirected some incremental advertiser dollars towards TV individuals.
Ongoing COVID-19 related challenges in radio also redirected some incremental advertiser dollars towards TV and digital.
Speaker 1: These factors drove a 14% year over year increase in total TV advertising revenue, which was above pre-pandemic levels for a second consecutive quarter. 12% higher than Q4.
These draft. These factors drove a 14% year over year increase in total television advertising revenue, which was above pre pandemic levels for a second consecutive quarter, 12% higher than Q4 of 2019 in fact.
Speaker 1: We also saw great results from our Quebec media strategy in 2021 as Nouveau led in prime time viewership growth versus its largest competitor.
We also saw great results from our Quebec media strategy in 2021, as new vault led in prime time viewership growth versus its largest competitors and just a few weeks ago, we launched the new Nouvel a full digital platform.
Speaker 1: And just a few weeks ago we launched the new Nuvo Anfo digital plot.
Speaker 1: Lastly, Crave subscriptions increased 6% over the last year to more than 2.9 million.
Lastly, creative subscriptions increased 6% over the last year to more than $2 9 million and in fact 2021 was the most watched year ever for crave streaming platforms a great result.
Speaker 1: Back 2021 was the most watched year ever for craze streaming platforms. A great result.
Okay, I will turn to slide six.
Speaker 1: Okay, I'll turn to slide six. 2021 was a reset year as we transitioned towards a return to pre-pandemic levels of financial performance and operating momentum.
2021 was a reset year as we transition towards a return to pre pandemic levels of financial performance and operating momentum.
Speaker 1: And although COVID turbulence is still expected to ebb and flow in the near term because of Omicron, we're optimistic about our business outlook as reflected in our financial guidance targets for 2020.
And although COVID-19 turbulence is still expected to ebb and flow in the near term because of omicron, we're optimistic about our business outlook as reflected in our financial guidance targets for 2022.
Speaker 1: We're entering 2022 with a clear set of priorities and a focus on execution built on the operating progress in 2021, which I outlined.
We're entering 'twenty, two with a clear set of priorities and our focus on execution built on the operating progress in 2021, which I outlined in detail.
Speaker 1: We expect that revenue and adjusted EBITDA will surpass pre-COVID-19 levels, 2019 levels, sorry, pre-COVID-19, 2019 levels, supporting a second year of historic...
We expect that revenue and adjusted EBITDA will surpass pre COVID-19 levels.
2019 levels, sorry, pre COVID-19 2019 levels.
Supporting our second year of historic growth and capital investment.
Speaker 1: And that historic growth in capital investment will be approximately $5 billion in 2020.
And that historic growth in capital investment will be approximately $5 billion in 2022.
Speaker 1: We're forging ahead with our most ambitious annual fiber build-out yet, and the launch of a standalone 5G core that will enable faster data speeds and lower latency than what is available with fiber.
We're forging ahead with our most ambitious annual fiber build out yet and the launch of our Standalone <unk> that will enable faster data speeds and lower latencies than what is available with <unk> today.
Speaker 1: And as we look forward with even more fiber and 5G growth upside on the horizon and a cost structure that reflects these advantages, not only do we realize operational benefits sooner, but we're also supporting future free cash flow growth to support the growth of the new market.
And as we look forward with even more five fiber and <unk> growth upside on the horizon and a cost structure that reflects these advantages not only do we realize operational benefits sooner, but we're also supporting future free cash flow growth to support our dividend growth model.
Speaker 1: Dividend growth continues to be a top capital market priority.
Dividend growth continues to be a top capital market's priority.
Speaker 1: see this commitment with our announcement this morning of a 5.1% increase to BC's common share dividend for 2020.
You see this commitment with our announcement this morning of a five 1% increase to Bce's common share dividend for 2022.
Speaker 1: It's our 14th consecutive year of a 5% or higher dividend increase.
Our 14th consecutive year of a 5% or higher dividend increase.
Speaker 1: and my third as CEO . Normalize for the advanced capital investments we're making once again this year. Our dividend payout ratio in 2022 will be around 80% above our historical free cash flow target range of 65 to 17.
And my third as CEO .
Normalized for the advanced capital investments, we're making once again this year our dividend payout ratio in 2022 will be around 80% above our historical free cash flow target range of 65% to 75%.
Speaker 1: Our healthy free cash flow growth and a strong liquidity position fully support the execution of this second year of our two-year capital advancement program and BCE's higher common...
Our healthy free cash flow growth and a strong liquidity position fully support the execution of this second year of our two year capital Advancement program and Bce's higher common share dividend.
Speaker 1: So now what I want to do is go to slide seven and I'm going to unpack for you the second year of our capital acceleration program. Our 2022 CapEx includes $900 million in accelerated investment on top of the approximately $4 billion in baseline capital that we've typically spent each year over the last year.
Yes.
Now what I want to do is go to slide seven unpack for you the second year of our capital acceleration program.
Our 2022, Capex includes $900 million and accelerated investment on top of the approximately $4 billion in baseline capital that we've typically spend each year over the last decade.
Speaker 1: This compares to TotalCapx of 4.8 billion in 2021, which in 2021 included 800 million of incremental spending under the first year of the two year.
This compares to total capex of $4 8 billion in 2021.
Which in 2021 included $800 million of incremental spending under the first year of the two year program.
Speaker 1: As a result of the early completion of our planned WHOI buildout initiative, we're allocating more of the incremental capital, Airmark for 2022 towards five.
As a result of the early completion of our planned WHI Buildout initiative, we're allocating more of the incremental capital earmarked for 2022 towards fiber.
Speaker 1: The plan this year is to reach up to an additional 900,000 homes and businesses across our footprint.
The plan this year is to reach up to an additional 900000 homes and businesses across our footprint.
With fiber this is our most aggressive annual fiber build ever representing an increase of 300000, new locations compared to 2021.
Speaker 1: This is our most aggressive annual fiber build ever, representing an increase of 300,000 new locations compared to 20...
Speaker 1: At the end of this year, approximately 80% of our plan broadband internet build will be completed. Representing more than 8.1 million total combined fiber and wireless home internet locations. That's up from 77.2 million premises at the end.
At the end of this year approximately 80% of our planned broadband internet build will be completed representing more than $8 1 million total combined fiber and wireless home internet locations.
That's up from $77 2 million premises at the end of 2021.
Speaker 1: So not only were we delivering the best Internet experience in the home today with 1.5 gigabit speeds and unmatched Wi-Fi.
So not only were we delivering the best Internet experience in the home today with one five gigabit speeds and unmatched Wi Fi, but we also have a low cost transition to a multi gig future with teng PON upgrades to our fiber backbone already underway and that will evolve to 'twenty five G PON overtime.
Speaker 1: But we also have a low cost transition to a multi-gig future with 10G pawn upgrades to our fiber backbone already underway. And that will evolve to 25G pawn over time and as well upgrades to Wi-Fi 6.
And as well upgrades to Wi Fi six E service.
Speaker 1: In wireless, our accelerated capital investment will expand the reach of our national 5G network to more than 80% of Canadians.
In wireless our accelerated capital investment will expand the reach of our national <unk> network to more than 80% of Canadians.
Speaker 1: further densify the network with 1,100 new 5G sites to meet growing customer usage requirements, and it will enable the launch of a 5G standalone core, leveraging recently acquired 3.5 spectrum that will drive enhanced speeds, lower latency, and other 5G network slicing.
Further densify the network with 1100, new <unk> sites to meet growing customer usage requirements and it will enable the launch of our <unk> Standalone core leveraging recently acquired $3 five spectrum that will drive enhanced speeds lower latency and other <unk> network slicing features.
Speaker 1: So taken all together and normalized for the 900 million capital advancement, our capital intensity ratio is expected to be in the range of 16 to 17% in 2022 consistent with typical...
So taken altogether and normalize for the $900 million capital Advancement, our capital intensity ratio is expected to be in the range of 16% to 17% in 2022, consistent with typical pre COVID-19 levels.
Speaker 1: I'll close now by highlighting that of course the entire Bell team looks forward to delivering for our customers and our shareholders in 2022. And on that I'll turn them all over the place.
Ill close now by highlighting that of course, the entire bell team looks forward to delivering for our customers and our shareholders in 2022.
And on that I'll turn the call over to Glenn.
Yes.
Thank you Marco and good morning, everyone.
Speaker 1: As Merkel said, Q4 capped off a great year in our COVID recovery with a healthy 3% increase in service revenue driven by continued strong wireless, residential internet and media growth. Total revenue was up a more modest 1.8% due to lower year-over-year product revenue, reflecting COVID-related softness in business data equipment sales, and mobile device transactions.
As Marco said Q4 capped off a great year in our Covid recovery with a healthy 3% increase in service revenue driven by continued strong wireless Reza.
Residential internet and media growth.
Total revenue was up a more modest one 8% due to lower year over year product revenue, reflecting COVID-19 related softness in business data equipment sales and mobile device transactions.
Speaker 2: Consolidated adjusted even a growth slowed to 1.1% in Q4. As I signaled on our Q3 call in November , this result was anticipated given the resetting of Bell Media's TV program and broadcast rights costs to a more normal pre-COVID run rate. That earnings decreased 29.4% as a result
Consolidated adjusted EBITDA growth slowed to one 1% in Q4.
As I signaled on our Q3 call in November . This result was anticipated given the resetting of Bell Media's TV programming and broadcast rights cost to a more normal pre COVID-19 run rate.
Net earnings decreased 29, 4% as a result.
Speaker 2: as our resulting Q4 of 2022 included a one-time gain realized, as you will recall, on the divestiture.
As a result in Q4 of 2022 included a onetime gain realized as you will recall on the divestiture of our data centers.
Speaker 2: Similarly, adjusted EPS was down 6.2% this quarter to 76 cents due to a favorable tax adjustments recognized last year, again, related to the sale of data.
Similarly, adjusted EPS was down six 2% this quarter to 76.
Due to a favorable tax adjustments recognized last year again related to the sale of data centers.
Speaker 2: Coppola expenditures remain elevated in Q4 at 1.46 billion as we advance spending
Capital expenditures remained elevated in Q4 at 146 billion.
As we advance spending consistent with our two year Capex program Marco just detailed.
Speaker 2: With our two-year CAPEX program, Mirko just detailed.
Speaker 2: Despite substantial capital spending this quarter, free cash flow increased year over year, due to timing related decreases in cash taxes and interest payments on Bel Canada MTN debt. Let's turn to Bel Wireless financials on slide 10. Another stand-up performance.
Despite the substantial capital spending this quarter free cash flow increased year over year.
Due to a timing related decreases in cash taxes and interest payments on Bell, Canada MTN debt.
Let's turn to Bell wireless financials on slide 10.
Another standout performance.
Speaker 2: that led national peers once again with service revenue and EBITDA that surpassed pre-pandemic 2019 levels for a second consecutive quarter. Service revenue grew a strong 6.3%, our best quarterly result in four years.
That led national peers, once again with service revenue and EBIT that surpassed pre pandemic 2019 levels for a second consecutive quarter.
Service revenue grew a strong six three.
<unk>, 3%, our best quarterly result in four years.
Speaker 2: This was achieved even as roaming remained below pre-pandemic volumes, reflecting the successful execution of our strategy to grow high-value mobile phones subscribers and effectively managed to decline in data over revenue. As we move post-paid customers...
This was achieved even as roaming remained below pre pandemic volumes, reflecting the successful execution of our strategy to grow high value mobile phone subscribers and effectively manage the decline in data overage revenue as we move postpaid customers to higher tier unlimited.
Speaker 2: to hire tier unlimited plans to take advantage of 5G network speeds and services.
Plans to take advantage of <unk> network speeds and services.
Speaker 2: Mobile device inventory in Q4 continued to be constrained by global supply chain challenges.
Mobile device inventory in Q4 continued to be constrained by global supply chain challenges.
Speaker 2: Similar to Q3, but to a lesser degree, this contributed to fewer customer smartphone upgrades and a higher proportion of new customers activating service with pre-owned devices resulting in a 3.6% year-round your decrease.
Similar to Q3, but to a lesser degree this contributed to fewer customer smartphone upgrades.
And a higher proportion of new customers activating service with pre owned devices, resulting in a three 6% year over year decrease in product revenue.
Speaker 2: product revenue.
The high flow through of strong service revenue growth yielded EBITDA growth of five 3% and a 90 point increase in margin to 38, 4%.
Speaker 2: service revenue growth yielded even the growth of 5.3% and a 90 point increase in margin to 38.4%
Speaker 2: Let's turn to slide 11 of Bell Wireline. The year-over-year revenue client in Q4 was similar to last quarter as we continued to face COVID-related challenges in our business markets.
Let's turn to slide 11, and Bell wireline.
Year over year revenue client in Q4 was similar to last quarter as we continued to face COVID-19 related challenges in our business markets unit and a step up in residential promotional offer intensity compared to Q4 of 2020 when competitor activity.
Speaker 2: and a step up in residential promotional offer intensity compared to Q4 of 2020, when competitor activity was more restrained.
Was more restrained.
Speaker 2: Service revenue was stable year over year, driven by strong residential internet, revenue growth of 7%, while product revenue decreased 10.5%, due to the softer data equipment sales attributed to delayed business customer spending, and again, global supply chain challenges because of COVID.
Service revenue was stable year over year, driven by strong residential internet revenue growth of 7% while product revenue decreased 10, 5% due to the softer data equipment sales attributed to delayed business customer spending and again global supply chain challenges.
Because of Covid.
Speaker 2: On a positive note, despite near-term COVID impacts, Q4 represented the best quarterly service revenue performance of 2021 for Bell Business Markets, where higher customer spending on cloud and security solutions drove a 5% year-over-year increase in business solutions revenue.
On a positive note despite near term Covid impacts Q4 represented the best quarterly service revenue performance of 2021 for Bell business markets, where higher customer spending on cloud and security solutions drove a 5% year over year increase in business solutions revenue.
Speaker 2: The combined impact of the continued residential strength and improving business wireline results delivered healthy Q40 bit of growth of 1.1% and a 70 points expansion in margins to 43.1.
The combined impact of the continued residential strength and improving business wireline results delivered healthy Q4, EBITDA growth of one 1% and a 70 point expansion in margins to $43 one.
Speaker 2: Turning to slide 12 on Bell Media, another good quarter overall with strong advertising, advertiser spending across our TV and out of home platforms. And continued subscriber growth that Merkle detailed earlier. Not collectively droll 7.3% year over year increase in total media revenue.
Turning to slide 12 on Bell media another good quarter overall with strong advertising advertisers spending across our TV and out of home platforms and continued subscriber growth that murko detailed earlier that collectively drove seven 3% year over year increase.
And total media revenue.
Speaker 2: Total advertising revenue increased 12% driven by stronger year-over-year conventional and specialty TV performance reflecting the return to a more normal regular Major League sports and Fall TV programming schedule.
Total advertising revenue increased 12% driven by strong stronger year over year conventional and special specialty TV performance, reflecting the return to a more normal regular major league sports and fall TV programming schedules.
Speaker 2: higher out of home revenue and increased leisure and travel activity with
Higher out of home revenue and increased leisure and travel activity with the easing of Covid restrictions and robust digital media growth as Michael mentioned.
Speaker 2: COVID restrictions and robust digital media growth, as Marko mentioned. However, radio has been slow to recover and disproportionately impacted by the pandemic due to ongoing COVID-related restrictions on local business.
However, radio has been slow to recover and disproportionately impacted by the pandemic due to ongoing going COVID-19 related restrictions on local businesses.
Speaker 2: and work from home protocols. Despite a strong revenue performance this quarter, even though it was down 19%, this result was expected given significantly higher year-over-year programming and broadcast rights costs with the return to regular major league sports schedules and a higher volume of original TV productions compared to 2020 when cancellations and delays had a favourable impact on operating costs.
And work from home protocols.
<unk> a strong revenue performance this quarter EBITDA was down 19%. This result was expected given significantly higher year over year programming and broadcast rights costs with the return to regular major league sports schedules and a higher volume of original television productions compared to 2020, when cancellations and delays.
<unk>.
Had a favorable impact.
On operating costs.
Yeah.
Speaker 2: I'll now turn to our financial outlook for 2022, starting with revenue and EBITDA on slide 14. Growth rates are similar to 2021 with a slightly higher, a wider range...
I'll now turn to our financial outlook for 2022, starting with revenue and EBITDA on slide 14.
Growth rates are similar to 2021 with a slightly higher or a wider range excuse me where revenue of 1% to 5%. This together with targeted adjusted EBIT growth of 2% to 5%.
Speaker 2: for revenue of 1 to 5%. This together with targeted adjusted EBITDA growth of 2 to 5% should yield a relatively stable year over year consolidated margin and help enable us to surpass full year 2019 financial performance level.
Should yield a relatively stable year over year consolidated margin and help enable us to surpass full year 2019 financial performers performance levels.
Speaker 2: Broadening our Revenue Guidance Range for 2022 is prune.
Our revenue guidance range for 2022 is prudent given ongoing economic uncertainty with the latest omicron wave that is slowing the pace of recovery and roaming.
Speaker 2: Given ongoing economic uncertainty with the latest
Speaker 2: pomacron wave that is slowing the pace of recovery in roaming product sales
<unk> sales.
Speaker 2: Business consumer spending, the business customer spending, and non-TV media advertising. But underpinning this outlook is positive top line and EBITDA growth for all Bell Civic office.
Business consumer spending business customer spending and non television media advertising.
But underpinning this outlook is positive top line and EBITDA growth for all Bell segments.
Speaker 2: We expect an even stronger financial contribution from Bell Wireless in 2022 driven by our ongoing focus on higher value mobile phone subscribers.
We expect an even stronger financial contribution from Bell wireless in 2022, driven by our ongoing focus on higher value mobile phone subscribers.
Speaker 2: A more robust roaming recovery, rational device discounting, and a greater volume of customers transacting as COVID-related supply constraints alleviate.
A more robust roaming recovery.
Rational device discounting.
And a greater volume of customers transacting as COVID-19 related supply.
Constraints that alleviate.
Speaker 2: The decline in data overage revenue is expected to be relatively stable year over year, again due to our base management strategy.
The decline in data overage revenue is expected to be relatively stable year over year again due to our base management strategy.
Speaker 2: We also anticipate further ARPU improvement through a greater mix of customers on higher value rate plans
We also anticipate further <unk> improvements through a greater mix of customers on higher value rate plans, including unlimited data plans as the <unk> upgrade cycle accelerates and higher year over year roaming.
Speaker 2: on limited data plans as the 5G upgrade cycle accelerates and higher year-over-year roaming. Despite the improvement in roaming volumes projected, total roaming revenues is expected to remain below pre-COVID levels.
Despite the improvement in rolling volumes projected total roaming revenues is expected to remain below pre COVID-19 levels.
Speaker 2: At Bell Wireline, we expect to generate positive revenue in EBITDA growth on a full year basis.
At Bell wireline, we expect to generate positive revenue and EBITDA growth on a full year basis. This.
Speaker 2: This is predicated on continued strong residential performance on the back of rapidly growing, growing fiber footprints and product leadership that positions us extremely well to continue growing Internet market share and revenue faster than our competitors. We also expect improving rates of year-over-year business revenue in EBITDA decline as COVID-related Albed lawsTake H shock emerged on a global level Monday after COVID-19 continued share and Churri settled us in jibis? truths
This is predicated on continued strong residential performance on the back of a rapidly growing growing fiber footprint and product leadership that positions us extremely well to continue growing internet market share and revenue faster than our competitors.
We also expect improving rate rates of year over year business revenue and EBITDA decline as COVID-19 related turbulence dissipates again that backdrop.
Speaker 2: Again, that backdrop, against that backdrop, we will be maintaining a sharp focus on cost to offset the financial impact of ongoing legacy erosion, which continues to slow. As for Belmedia, total advertising expected to climb back to pre-COVID levels as strong TV advertiser demand continues.
Against that backdrop, we will be maintaining a sharp focus on cost to offset the financial impact of ongoing legacy erosion.
<unk> continues to slow.
As for Bell media total advertising expected decline back to pre COVID-19 levels, a strong TV advertiser demand continues.
Speaker 2: and the rebound in radio and auto-home takes hold more fully.
And the rebound in radio and out of Hall takes hold more fully.
Speaker 2: We also expect the benefit from contract renewals with TV distributors and continued.
We also expect the benefit from contract renewals with TV distributors and continued crave growth to drive higher year over year subscription revenue, while continuing to grow our share of digital ad spend.
Speaker 2: crave growth to drive higher year-over-year subscription revenue while continuing to grow our share of digital ad spend.
Speaker 2: Lastly, despite a resetting of the cost structure in Q4 that brought TV programming costs closer to pre-COVID, run rate levels, we will be absorbing even higher spend in 2022 as we return to normal broadcast schedules for the full year, grow French language contest and further increase.
Lastly, despite a resetting of the cost structure in Q4 that brought TV programming costs closer to pre COVID-19 .
Run rate levels, we will be absorbing even higher spend in 2022, as we returned to normal broadcast schedules for the full year.
<unk> French language content and further increase crave programming inventory.
Speaker 2: Crave programming inventory. I'm now going to turn to slide 15 and discuss...
I'm now going to turn to slide 15 and.
And discuss pensions.
Speaker 2: Our solvency ratio across our major defined benefit pension plans was above 105% at the end of 2021 with the Bell Canada DV plan by far the largest of all BC pension plans at 111%. This strong valuation position was achieved even without a material increase in interest rates in 2021 and a solid 5.5% return on plan.
Our solvency ratio across our major defined benefit pension plans was above 105% at the end of 2021.
With the Bell, Canada DB plan.
As far the largest of all BCE pension plans at 111%.
This strong valuation position was achieved even without a material increase in interest rates in 2021, and a solid five 5% return on plant assets.
Speaker 2: Having reached surplus positions of over 105% contribution holidays can now be taken on the annual cash funding, which totals approximately $200 million in aggregate across all BCE plans. However, we can only take advantage of a partial reduction in 2022 since we file our final actuarial evaluation.
Having reached surplus position of over 105% contribution holidays can now be taken on an annual cash on the annual cash funding, which totals approximately $200 million in aggregate across all BCE plants.
However, we can only take advantage of a partial reduction in 'twenty two since we file our final actuarial evaluations at the end of June .
Speaker 2: at the end of June . As a result, BCE's pension cash funding for 2022 is projected to be about 75 million lower than last year at around 275 million in total.
As a result, bce's pension cash funding for 2022 is projected to be about $75 million lower than last year at around $275 million in total.
Speaker 2: Although the in-year cash funding reduction is actually closer to 90 million, this includes a pre-existing contribution holiday in the range of 15 on one of our smaller plans we've previously taken.
Although the in year cash funding reduction actually closer to $90 million. This includes a preexisting contribution holiday in the range of 15 on one of our smaller plans we've previously taken.
Speaker 2: All things being equal, I believe that in 2023 we will be able to take advantage of full cash funding closer to the amount of $200 million, which should also continue for the foreseeable planning horizon.
All things being equal I believe that in 2023, we will be able to take advantage of full cash funding.
Closer to closer to the amount of $200 million, which should also continue for the foreseeable planning horizon as we project the solvency ratio for each DB plan to remain above the required 105% threshold.
Speaker 2: as we project the solvency ratio for each DB plan to remain above the required 105% threshold. So we're talking about a very real $1 billion free cash flow opportunity over the next five years that we didn't have in our long-range plan just a few years ago that could be used to fund continued fibre acceleration and of course support our dividend growth model.
So we're talking about a very real $1 billion free cash flow opportunity over the next five years that we didn't have in our long range plan. Just a few years ago that could be used to fund continued fiber acceleration and of course <unk>.
<unk> our dividend growth model.
Speaker 2: Moving to our tax outlook on slide 16, statutory tax rate for 22 remains unchanged at 27...
Moving to our tax outlook on slide 16 statutory tax rate for 'twenty two remains unchanged at $27, 27%, our effective tax rate for accounting purposes is also projected to be relatively stable again at 27%, reflecting a very reflecting a similar year over year level of <unk>.
Speaker 2: 27%, our effective tax rate for accounting purposes is also projected to be relatively stable again at 27%, reflecting a similar year over year level of tax adjustments of approximately 5 cents per share.
<unk> adjustments of approximately <unk> <unk> per share.
Speaker 2: We are also expecting cash taxes to decrease to within the $800 to $900 million range as higher planned capital spending in 2022 will generate incremental tax savings under the federal government's accelerated CCA program more than offsetting the impact of increased income taxes from higher year-over-year taxable income as our operations recover more fully from the effects of this pandemic.
We're also expecting cash taxes to decrease two within the $800 million to $900 million range as higher planned capital spending in 2022 will generate incremental tax savings under their federal government accelerated CCA program more than offsetting the impact of increased income taxes from <unk>.
Year over year taxable income as our operations recover more fully from the effects of this pandemic.
Speaker 2: Slide 17 summarizes our adjusted EPS outlook for 2022, which we project to be $325 to $340 a share or 2 to 7% higher year-over-year. This is similar to last year's growth range and reflects a strong underlying contribution from Operation
Slide 17 summarizes our adjusted EPS outlook for 2022, which we project to be $3 25 to $3 40, a share or two 2% to 7% higher year over year.
This is similar to last year's growth range reflects a strong underlying contribution from operations.
Speaker 2: driven by the positive EVA to growth across all three bell segments and the lower pension financing costs I referenced earlier. These factors will be partially offset by approximately $100 to $150 million increase in depreciation and amortization as more capital assets will be put into service sooner as a result of our two-year accelerated capital investment.
Driven by the positive EBITDA growth across all three bell segments, and the lower pension financing costs I referenced earlier.
These factors will be partially offset by approximately $100 million to $150 million increase in depreciation and amortization as more capital assets will be put into service sooner as a result of our two year accelerated capital investment plan.
Speaker 2: Step up in interest expense due to higher outstanding debt and higher year over year income tax expense. Let's turn to slide 18. Free cashflow is projected to grow in the range of two to 10% in 2022, reflecting strong flow through of higher EBITDA, as well as a reduction in cash taxes and pension funding that will largely offset the year over year increase in capital expenses.
<unk> off in interest expense due to higher outstanding debt and higher year over year income tax expense.
Let's turn to slide 18 free cash flow is projected to grow in the range of 2% to 10% in 2022, reflecting strong flow through of higher EBITDA as well as a reduction in cash taxes and pension funding that will largely offset the year over year increase in capital expenditures.
Speaker 2: BC's consolidated capital intensity ratio for 2022 should be similar to that of 21, around 21 percent of total revenue. As Mirko mentioned, this includes the $900 million of capital advancement that we are targeting in 2022 as part of our upsized two-year capital acceleration program.
<unk> consolidated capital intensity ratio for 2022 should be similar to that of 'twenty, one around 21% of total revenue as.
As Marco mentioned this includes the $900 million of capital Advancement that we are targeting in 2022 as part of our Upsized two year capital acceleration program.
Speaker 2: And again, as mentioned earlier, normalizing for this incremental capital investment, our absolute dollar capex in 2022 decreases closer to a $4 billion range, which is in line with pre-COVID historical specs.
And again as mentioned earlier normalizing for this incremental capital investment our absolute dollar Capex in 2022.
Decrease is closer to a $4 billion range, which is in line with pre Covid historical spending.
Speaker 2: A quick update on our balance sheet and liquidity position on slide 19. As we begin the year, we have access to $3.4 billion of liquidity and a balance sheet with a pension solvency surplus.
A quick update on our balance sheet and liquidity position on slide 19, as we begin the year, we have access to $3 4 billion of liquidity and a balance sheet with a pension solvency surplus.
Speaker 2: of totalling $2.3 billion that provides good overall financial flexibility, supporting the execution of our strategic priorities and higher B.C.E. dividends for 2022. Our capital structure is aligned with our investment-grade credit ratings, which all have stable outlooks, and our net debt leverage ratio, which remains lowest among national peers.
Of totaling $2 3 billion that provides good overall financial flexibility supporting the execution of our strategic priorities and higher BCE dividend for 2022.
Our capital structure is aligned with our investment grade credit ratings, which all have stable outlooks and our net debt leverage ratio, which remains lowest among national peers.
Speaker 2: is projected to remain relatively stable in 2022 at around 3.2 times adjusted EBITDA, reflecting the impact of our recent 5G spectrum purchases and the capital advance.
Is projected to remain relatively stable in 2022 at around three two times adjusted EBITDA, reflecting the impact of our recent <unk> spectrum purchases.
And the capital Advancement program also highlighted on the slide as Bell's favorable long term debt.
Speaker 2: Also highlighted on the slide is Bel's favourable long-term debt majority schedule.
Maturity schedule that has an average term of 13 years and a low after tax cost of debt of just two 8%.
Speaker 2: that has an average term of less than 13 years and a low after tax cost of debt of just 2.8%.
Speaker 2: No material debt refinancer requirements until March of 2023 as 1.7 billion of the 2022 MTN maturities were pre-financed.
And no material debt refinancing requirements until March of 2023, as $1 7 billion of the 2020 to MTN maturities were pre finance and.
Speaker 2: and early redeemed in 21. However, as we have always done, we intend to act to death markets on an opportunistic basis.
In early redeemed in 'twenty one.
However, as we have always done we intend to access debt markets on an opportunistic basis throughout 'twenty two if market conditions are favorable to.
Speaker 2: through road 22 market conditions are favorable to strengthen.
To strengthen our liquidity position extend durations ahead of the maturities and various spectrum auctions, taking place over the next few years to.
Speaker 2: stand durations ahead of the maturities and various spectrum auctions taking place over the next few
Speaker 2: We conclude on slide 20. We are announcing today, what we are announcing today is a strong set of financial guidance targets for 20.
To conclude on slide 20, we are announcing today, what we are announcing today is a strong set of financial guidance targets for 2002.
Speaker 2: Essentially all guidance ranges are similar to 2021 with the exception of free cash rub which is returning to growth despite historic tap expending as we laughed COVID significant impacts last year.
Essentially all guidance ranges are similar to 2021 with the exception of free cash flow, which is returning to growth. Despite historic capex spending as we lapped COVID-19 significant impacts last year, our outlook is underpinned by positive financial profile for all three bell operating segments.
Speaker 2: Our outlook is underpinned by positive financial profile for all three bell operating segments that reflect sound, industry fundamentals, and our consistent execution in a competitive marketplace. As we build on favorable financial performance, significant broad...
That reflects sound industry fundamentals and our consistent execution in a competitive marketplace as we build on favorable financial performance significant broadband investments and operating momentum we delivered in 'twenty, one and with that Richard I'll turn it back over to you and the operator to begin Q&A. Thanks Glenn.
Speaker 2: and operating momentum we delivered in 21. And with that, Richard, I'll turn it back over to you and the operator to begin Q&A. Thanks, Glenn.
Speaker 3: Given the volume of information we presented this morning, I'm sensitive to the time we have left. So before we start the Q&A period, I would ask you to please limit yourselves to one question and a brief follow-up if you must so that we can get to as many in the QAs possible.
Given the volume of information we presented this morning I'm sensitive to the time, we have left so before we start the Q&A period I would ask you to please limit yourselves to one question and a brief follow up if you must so that we can get to as many in the queue as possible. Thanks for your cooperation with that mode. We are ready to take our first question.
Speaker 3: Thanks for your cooperation. With that mode, we are ready to take our first question.
Speaker 4: Thank you. We will not take questions from the telephone lines. If you have a question and you are using a speaker phone, please lift your handset before making your selection. If you have a question, please press star one on your device's keypad. You may cancel your question at any time by pressing star two. Please press star one at this time. If you have a question, that will be refiles while participants register for questions. We thank you for your question.
<unk>.
Thank you we will now take questions from the telephone lines. If you have a question and you are using a speaker phone. Please lift your handset before making your selection. If you have a question. Please press star one on your devices Keypad you begin your question at any time by pressing star two.
Please press star one at this time, if you have a question that will be a brief boswell participants logistical questions. We thank you for your patience.
Speaker 4: Our first question is from Jeff van from Scotia Bank. Please go ahead.
Our first question is from Jeff fan from Scotiabank. Please go ahead.
Speaker 5: Thank you. Good morning everybody and thanks for all the color.
Thank you good morning, everybody and thanks for all the color.
Speaker 5: I think the question for me is on the network investments and you gave so much color for 22, it's probably not a question related to 22, so I want to look beyond 22 if I may and I know you don't have any guidance for that.
Okay.
The question for me is on the network investments.
And you gave so let's call. It 22, despite another questions relate to 'twenty two so I want to look beyond 'twenty, two if I may and I know you don't have any guidance for that.
If I look at your network.
Speaker 5: Around 7 million is fibre to the home, so that's roughly 70% of your targeted footprint by the end of this year. Mirko, where does that go if you look beyond 22? Is there any need to...
Around $7 million is fiber to the home.
Roughly 70% of your.
Targeted footprint by the end of this year.
Local weather.
So if you look beyond 'twenty two is there any need to.
Speaker 5: go at the same pace, how do you think about that? And then also the 1 million wireless home internet footprint. Is that
Well at the same pace.
How do you think about that and then also the 1 million.
Wireless home Internet footprints.
Is that.
Speaker 5: Is that where you like to end or is there overbilled? Can you just talk a little bit around that? And I guess the related question is, what that means for CAPEX? Glenn made some comments about using perhaps pension holiday or funding holiday to help fund this investment. Perhaps we can wrap it around what that means for CAPEX beyond 22. Thank you. Thank you. Thank you.
Is that where you like to end or is there over build can you just talk a little bit around that and I guess the related question is what that means for capex.
Glen made some comments about.
Using perhaps pension holiday a funding holiday to help fund this investment, perhaps we can wrap it around with that.
That means the capex beyond 'twenty two thank you.
Thank you Jeff.
Speaker 1: question for sure. I'm going to start off with the first part of my answer will be something you fully expect but very important.
Thanks for the question for sure.
Government I'm going to start off with.
First part of my answer will be something you fully expect but very important to say our focus right. Now is on the two year program that we are in the second Europe .
Speaker 1: our focus right now is on the two-year program that we are in the second year of.
Okay.
So I guided last year or two to two years of Capex and right now the focus is on delivering on up to 900000 additional fiber homes and will get us to those percentage that you mentioned, but.
Speaker 1: CapEx and right now the focus is on delivering up to 900,000 additional fiber homes and they'll get us to those percentages that you mentioned but you know I...
But.
I do need to highlight that Thats the focus right now, but <unk> fair question. So as we're focused on 2022 and as the year progresses. We will continue we continually look at the situation and we're going to base our future build out plans.
Speaker 1: But you ask a fair question. So, you know, as we're focused on 2022 and at the year, progress.
Speaker 1: We will continually look at the situation and we're gonna base our future buildup.
Speaker 1: on factors that include our broadband success, and it's going really well so far.
Factors that include our broadband success, that's going really well so far our overall financial situation, which continues to improve from the kind of it.
Speaker 1: Q2 2020 and also the availability of government subsidy. So those will be the things we look at as we get ready for 2023 CAPEX and beyond. And Glenn mentioned and you highlighted it, Jeff, we have a very real billion dollars in free cash flow opportunity over the next five years due to the reduced pensions.
Q2, 2020, and also the availability of government subsidy. So those will be the things we look at as we get ready for 2023, Capex and beyond and Glenn mentioned, a new highlighted it Jeff we have a very real $1 billion in free cash flow opportunity over the next five years due to the <unk>.
Speaker 1: And that was not in my calculus when we announced the two year program.
Pension funding and that was not in my calculus, when we announced the two year program. At this time last year and that will provide us with flexibility to seize on some strategic opportunities. So ultimately we're going to have flexibility on our capital allocation strategy. So, yes, we will be 80% done on that.
Speaker 1: and that will provide us with flexibility to seize on some strategic opportunities. So ultimately, we're going to have flexibility on our capital allocation strategy. So yeah, we will be 80 percent done on...
On the $10 million.
Speaker 1: Targeted broadband footprint, but that's not
Targeted broadband footprint, but thats not.
Speaker 1: So those are the factors we'll look at. We have more flexibility on the allocation strategy than I expected a year ago at this time, so that's all great news. And on wireless home internet, I think one million footprint, I mean I'm really happy that we did that a year earlier than planned. It's great for the communities we're serving. I think that's the right foot.
Hundred percent done so those are the factors, we'll look at we have more flexibility on the allocation strategy than I expected.
A year ago at this time, so that's all great news and on wireless home Internet I think 1 million footprint I mean, I'm really happy that we did that a year earlier than planned that's great for the communities. We're serving I think thats the right that's the right footprint.
Yeah.
Speaker 5: That's quite a thank you for the answer and close to the pension team.
Thank you for the answer and kudos to the pension scheme.
Yeah.
Okay.
Okay.
Speaker 4: Ready for our next question? Thank you. Our next question is from Drew McRennell, from RBC Capital Markets. Please go ahead.
Ready for our next question.
Our next question is from drew Mcreynolds from RBC capital markets. Please go ahead.
Speaker 6: Yeah, thanks very much and good morning. Yeah, Jeff stole my question. So I'll move on here. Merco.
Yes, thanks, very much and good morning, Jeff stole my question, so ill move on here Marco.
Speaker 6: just maybe a bigger picture one on the internet market and you kind of alluded it to in your last comment on fixed wireless. Just I think obviously investors see what's going on.
Just maybe a bigger picture one on the Internet market and you kind of alluded to in your last comment on fixed wireless.
I think obviously investors see what's going on with the competitive environment in the U S and trying to draw conclusions here in Canada with respect to the competitive intensity in the Internet market.
Speaker 6: competitive environment in the u.s. and and strong to draw the conclusion here in canada with respect to the competitive intensity of the internet market uh... the fiber that's being deployed to six wireless that's being deployed to satellite
The fiber that's being deployed the fixed wireless that is being deployed the satellite broadband that's coming into play just can you give us kind of your sense of how this plays out in the next two to three years in terms of.
Speaker 6: broadband that's coming into play. Just can you give us kind of your sense of you know how this plays out in the next two to three years in terms of
Speaker 6: just managing the risk of higher competitive intensity.
Managing the risk of higher competitive intensity.
Speaker 6: And then just second, just a clarification for you, Glenn, on the pension holiday. Often to see, does this kind of expire after five years, or are you just kind of saying, look, illustratively, over the next five years, we get the 200 million.
And then just second just a clarification for you Glenn on the pension holiday.
Awesome to see.
Does this kind of expire after five years or or are you just kind of saying look illustrative Lee over the next five years, we get the 200 million benefit each year and that equates to $1 billion.
Speaker 6: benefit to each year and that equates to a billion but not necessarily kind of concluding anything beyond kind of your thought. Thanks Drew, I'll start.
But not necessarily kind of concluding anything beyond kind of your thoughts. Thank you.
Thanks drew I'll start so.
I'll give you a more detailed answer, but the short answer is fiber can't be beat.
I'll give you a more detailed answer but the short answer is.
Fiber can't be beat.
And I think investors and bell.
To be.
Optimistic about that. Yeah, so, you know, because fiber can't be beat and because consumers and businesses continue to choose fiber over other technologies and may result in periods of time of some competitive...
We are optimistic about that yes.
Yes, so because fiber can't be beat and because consumers and businesses continue to choose fiber over other technologies that may result in periods of time of some competitive.
particularly as COVID subsides. But we'll be ready because we're focused on delivering a healthy balance of volume.
Intensity, particularly as Covid subsides, but we'll be we'll be ready because we're focused on.
Delivering a healthy balance of <unk>.
Volume.
Tier mix price is kind of again that sweet spot between market share and financial performance and we've got a lot. We've got lots of runway ahead of us.
price is kind of again that sweet spot between market share and financial performance. And we've got a lot, we've got lots of runway ahead of us. So first, you know, we, fiber's better than the other technologies. We have runway ahead of us in terms of more fiber build. And so we'll keep hidden in what our
So firsthand.
Fiber is better than the other technologies, we have runway ahead of us in terms of more fiber build.
In fact, we.
Sit here today against some of our larger competitors, we have 50% fiber overlap with their with their network footprint. So to me. That's a that's a big positive in terms of looking ahead at what's next and then I look ahead even.
Some of our larger competitors, we have 50% fiber overlap with their network footprint. So to me that's a big positive in terms of looking ahead at what's next. And then I look ahead.
not even that far out. And I referenced it in my opening remarks as we enter into a multi-gig world. And it's coming, and it's coming soon. I like the advantages we have. Our network is multi-gig ready. And when I say multi-gig, I mean, multi-gig symmetrical up and down, I don't think anyone should underestimate the importance of upload speeds, both for consumers and for business.
Not even that far out and I referenced it in my opening remarks, as we enter into a multi gig world.
And it's coming and it's coming soon.
The advantages we have our network is multi gig ready and when I say multi gig I mean, multi gig symmetrical up and down I don't think anyone should underestimate the importance of upload speeds both for consumers and for businesses.
We're future proofed on the capacity in our network. We've got no powered field components to maintain the capacity.
We've got we're future proofed on the capacity in our network. We've got no powered field components to maintain we don't have to recapture spectrum, we don't have to swap out modems in the homes served by a node in order to deliver higher speeds.
don't have to recapture spectrum. Don't have to swap out modems in the home served by a node in order to deliver higher.
So there might be an uptick in promotional intensity.
There might be an uptick in promotional intensity.
periods of time Drew but when you think about the franchise we've got we're well set up to win the household and to win the household you want. Fiber, 5G, best in home Wi-Fi and compelling content so we've got the right asset mix and we'll just...
Particular periods of time drew but when you think about the franchise. We've got we're well set up to win the household and to win the household you want fiber <unk> best in home Wi Fi and compelling content. So we've got the right asset mix and we'll just continue to execute.
Thanks, Mercote. Morning Drew, it's Glenn, I'll jump in and give some color, additional color on page.
Thanks Mark.
Good morning, drew it's Glen I'll jump in and give some color additional color on pension.
You know, you and I have been talking about this for a decade, but to think the burden that the pension has placed on our cash flow over the years and the requirement to do special funding...
You and I have been talking about this for a decade, but to think the burden that the pension has placed on our cash flow over the years and the requirement to do special funding.
As Jeff said, kudos to our pension team. We didn't get here by accident. This has been a 10-year journey and a remarkable job managing the pension.
As Jeff said kudos to our pension team we didn't get here by accident. This has been a 10 year journey and a remarkable job managing the pension.
When we followed an asset mix glide path that had us move from significantly higher equities to a point now where we're at
We followed an asset mix glide path that Hasnt had us move from significantly higher equities to a point now where we're at more than 70% in fixed income and 30% in equities and even amongst those equity that's a much smaller portion of those in public. So we find ourselves from 2023.
more than 70% in fixed income and 30% in equities, and even amongst those equities, a much smaller portion of those in public. So we find ourselves from 20...
Excuse me, 2013 to today moving from an interest rate coverage of 40% to us.
Excuse me 2013 to today moving from an interest rate coverage of 40% to two.
to 84%, which has given us a tremendous opportunity. And all of that occurs while interest rates really haven't moved. So I would say we'd all on this call, expect that there'll be some increases.
284%, which has given us.
The tremendous opportunity in all of that occurs while interest rates really haven't moved so.
I would say we at all on this call expect that there'll be some increase in interest rates, which will only add to this opportunity. So today, we wanted to announce that we're in a very confident position that we see.
interest rates which will only add to this opportunity. So today we wanted to announce that we're in a very confident position that we see some of the most significant changes in the economy. We're going to be looking at some of the most significant changes in the economy. We're going to be looking at some of the most significant changes in the economy.
<unk>.
pension contribution holidays to the tune of 200 a year for the foreseeable future. And I define foreseeable future as five years. There's no magic to that, Drew. Could that be longer? I certainly hope so. You know how the math works is that you have to stay above 105 percent.
Pension contribution holidays to the tune of 200, a year for the foreseeable future and I define foreseeable future is five years. There is no magic to that drew could that be longer is certainly hope. So you know how the math works as that you have to stay above 105% and I think our pension team's track record speaks for itself.
And I think our pension teams track record speaks for itself. I hope I'm here in five years telling you that it's going for longer. Thank you, Drew.
Ralph I hope I'm here in five years, telling you that its going for longer. Thank you drew.
Thank you Bob.
Next question. Please. Thank you. Our next question is from Arvind <unk> from Canaccord Genuity. Please go ahead.
Thank you. Our next question is from Aravinda, Galapati Ghe, from Kanakord, Genuity. Please go ahead.
Good morning, thanks for taking my question. My main question is for you, Mirko, on the enterprise side. I mean, when I hear some of the comments you make about the new initiatives on the IoT front.
Good morning, Thanks for taking.
My question.
My main question is you Marco on the on the enterprise side I mean, when I hear some of the comments you make about the new initiatives on the Iot front.
as well as even some of the sort of the SaaS initiatives that you talked about.
As well as even some of the site.
SaaS initiatives that you talked about can you just give us a sense of that growth segment within enterprise.
Can you just give us a sense of that growth segment within enterprise? I mean, wherever we in terms of that piece, sort of assuming a level of materiality, that it can kind of really move the needle to be aggregated number. I mean, historically, we thought of enterprise kind of a drag on Bell, and maybe it's gonna be the case for a little bit longer as well. But as we try to look beyond 22 and some of the five chief of an offering, bit of more material,
Where are we in terms of that piece.
Similar level of materiality that it can kind of really move the needle to be aggregated number I mean, historically, we've thought of enterprise is kind of a drag on bell and maybe it's going to be the case for a little bit longer as well, but as we tried to look beyond 'twenty, two and somewhat cheaper than offerings become more material can you set us.
the picture as to what and how that can look like and are we getting closer to that timeline where that materiality develops?
Picture as to what and how that can what that can look like and.
Are we getting closer to that timeline, where that materiality develops and then.
And then a quick follow up for Glenn. Under guidance, the 2% to 5% EBITDA, maybe slightly wider than I would have anticipated. So given in particular the strong sub-transit in wireline and obviously the really good service revenues in wireless, I was wondering why, I was wondering if you could give a little bit of color as to the size of that range, particularly in terms of EBITDA. Thanks.
A quick follow up for Glenn on the guidance.
The 2% to 5% maybe.
Maybe slightly wider than I would've anticipated.
Given in particular.
Strong sub sub trends in wireline, obviously really good service revenues in wireless.
I was wondering why.
I was wondering if you can give a little bit color as to sort of that that.
The size of that range in particular in terms of that.
Good morning, Aravinda. I'll just remind you that the guidance range we provided in calendar 21 was 2 to 5 percent in revenue.
Thanks.
Good morning, Linda.
Just to remind you that the guidance range, we provided in calendar 'twenty, one was 2% to 5% on revenue.
and the same on EBITDA. We expanded revenue only because of the comments I made earlier in the volatility of product revenues, and we remained consistent on EBITDA 2-5. And an organization that generates in excess of $10 billion a year on EBITDA, and I actually do not see that as an overly broad range.
And the same on EBITDA.
We expanded revenue only because of the comments I made earlier in the volatility of product revenues and we remained consistent on EBITDA, 2% to 5%.
And an organization that generates in excess of $10 billion a year on EBITDA NOI actually do not see that as an overly broad range I think if you look back historically for the last decade, we traditionally had a range of approximately 2%, but this organization has grown materially in <unk>.
i think if you look back historically the last decade we we traditionally would have a range of approximately two percent
organization has grown materially in size from where we were a decade ago with the acquisitions we made and the growth we've enjoyed. So I think two to five is a very reasonable range consistent to that of 2021 and our objective will be to deliver solidly within that range and I'm confident we will.
<unk> from where we were a decade ago with the acquisitions, we've made and the growth. We've enjoyed so I think two to five is a very reasonable range consistent to that of 2021.
Our objective will be to deliver solidly within that range and I am confident we will.
So thanks for the question, I've been on my, on your first question around the enterprise side and those new
Thanks, Glenn so thanks for the question Arvind on my on the on your first question around the enterprise side and those new revenues.
So look, I, you know, the enterprise side and to some degree, well, not to some degree, the enterprise, the business, whether it's smaller enterprise, there's been a COVID impact for sure. So in last year and this year, the focus really is on managing those impacts while never losing sight of the importance of being ready.
Look I.
The enterprise side and to some degree at Walmart to some degree in the enterprise the business, whether it's smaller enterprise there has been a COVID-19 impact for sure so and last year and this year. The focus really is on managing those impacts while never losing sight of the importance of being ready to <unk>.
capture the growth in the segments you identified, whether or not it's 5G, MEC, IoT, that kind of...
Capture the growth in the segments, you identified whether or not it's <unk> Iot that kind of solution spending so what I like about what we're doing is those building blocks every quarter keep getting more powerful and I did refer this morning to bell Iot smart connect.
So what I like about what we're doing is those building blocks every quarter keep getting more powerful. I did refer this morning to Bell IoT Smart Connect and I hinted at a cool chain monitor. It rang just as an example. One of our clients who was using the platform as a long haul frozen.
I hinted at cold chain monitoring just as an example.
One of our clients, who is using the platform as a long haul frozen seafood trans border and they are using the platform to increase visibility into their operations make sure they're compliant with food food safety regulations reduce spoilage. So.
and they're using the platform to increase visibility into their operation.
sure they're complying with food safety regulations, reduce spoilage. And what I think is particularly powerful about our platform is that the software as a service platform is not a simple point solution that basic providers can offer and it will operate across multiple verticals.
What I think is particularly powerful about our platform is it's a software as a service platform, it's not a simple point solution that.
Yes that basic providers can offer and it will operate across multiple verticals. So I mean.
So, I mean, are we there yet? Where, where there's, you know.
Are we there yet where where there is.
Significant increases in those markets no do we have line of sight into them absolutely. Yes, do we have clients. Yes. So so I expect that to grow when it becomes material I think 2022 will still be a learning in the initial stages of growth, but we're going to continue to put put the plat.
increases in those markets? No. Do we have line of sight into them? Absolutely yes. Do we have clients? Yes. So I expect that to grow. When it becomes material, I think 2022 will still be a learning in the initial stages of growth, but we're going to continue to put the platforms in place.
Forms in place to be ready, our Iot business I think I mentioned that last quarter is already a nine figure revenue business, so pretty sizable in its own right already.
RIO Key Business, and I mentioned that the last quarter is already a nine-figure revenue.
insurmountable and its own right already so that's where the focus is. We're well positioned. And last word, just if you look in the here and now actually in kind of Q4 2021, it was our enterprise segment's best quarterly service revenue performance of 2021. And we're seeing some customer spending come back on cloud and IoT service solutions and we saw 5% growth in that revenue in Q4 2021 compared.
It's where the focuses we're well positioned and last we're just if you look in the here and now actually in Q4 of 2021. It was our enterprise segments Best quarterly service revenue performance of 2021, and we're seeing some customer spending come back on cloud and Iot service solutions, we saw 5% growth.
And that revenue in Q4 2021 compared to Q4 2020 so.
I'm optimistic, but in terms of the fundamental point of your question, it's still to come.
I am optimistic but in terms of the.
The fundamental point of your question it is still to come.
Thank you.
Thanks.
Thank you. Our next question is from Benz Lanantini from TV Security. Please go ahead.
Thank you. Our next question is from Vince Valentini from TD Securities. Please go ahead.
Thanks very much. We're going to try to unpack the 91% figure that you noted is quite impressive and I would agree in terms of the percentage of your subs on fiber. But just to make sure you didn't say fixed wireless in that as well, you're just saying fiber. So if you indulge me and let me walk through these numbers, make sure you and Glenn agree. We're at 7.2 million.
Thanks very much.
I wanted to try to unpack the 91% figure that you'd noted is quite impressive and I would agree.
In terms of the percentage of your subs on fiber.
To make sure you Didnt say fixed wireless and that is why you are just sharing fiber. So if you indulge me, let me walk through these numbers make sure you and Glen agree.
At $7 2 million total fiber plus wireless home Internet homes passed so I would mean $6 2 million fiber to the home <unk> at this point out of your total footprint in urban footprint.
total fiber plus wireless home internet homes passed so it would mean 6.2 million fiber to the home passings at this point.
out of your total urban footprint of 10 million or just over 10 million.
$10 million or just over $10 million. So that would mean, 61% of your homes are passed by fiber, but yet 91% of the subs.
of your homes are passed by fiber, but yet 91% of the subs that take internet and IPTV or on that footprint do I have all that math rate?
Take internet and IP TV.
That footprint do I have all that math right.
Yes, so it's, you've got it right, so it's 61 today, 61% of the near term, so let's back up, so our near term plan broadband footprint, by near term I mean between now and say 2025, okay well near to medium term.
Yes, so it's you've.
<unk> got it right so at 61 today.
61% of the near term.
Let's back up so our near term plan broadband footprint by near term I mean between now and say 2025, okay, well a near to medium term issue.
We got kind of 10 million that's in that plant footprint over that time horizon.
Prefer we've got kind of $10 million thats in that planned footprint over that time horizon, where 61% done today with fiber.
done today with fiber. 71-72% done at the end of this year with fiber. For those customers who are on in the fiber footprint, the
70, 172% done at the end of this year with fiber.
For those customers who are on in our fiber footprint.
and who take internet and TV, 91% of those are on fiber.
And who take Internet and TV, 91% of those are on fiber.
Right, which means the number of combined internet and TV customers you have.
Right, which means the number of combined Internet and TV customers you have in your non fiber footprint is quite low isn't it that's what we tried to emphasize that the.
in your non-fiber footprint is quite low. That's what you try to emphasize, that the incremental risk of losing those subs until you've upgraded is pretty small.
The incremental risk of losing those subs.
Tony you've upgraded its pretty small.
So I'm not stuck really where I'm trying to emphasize, but let's go there. So
So im not really what I'm trying to emphasize but let's go there so.
You know, clearly where we have fiber we're outperforming and if you kind of take our footprint from Manitoba all the way to Atlanta, Canada and your CR impressive internet med ads, you know, we are-
Clearly, where we have fiber, we're outperforming and if you kind of take our footprint from Manitoba, all the way to Atlantic, Canada, and Youll see our impressive Internet net adds.
We are gaining.
significant share in fiber and depending on the state of our non-fiber footprint, whether non-ATM or FTTN, etc. You know, there are puts and takes there in terms of the performance, but that's a function.
Significant share in fiber and depending on the state of our non fiber footprint, whether or not its ATM or <unk> et cetera.
Puts and takes there in terms of the performance, but that's a function of the of the network technology, what I'm, saying, what im So thats, one point, which I think is what youre getting at what I'm trying to emphasize with the 91% is we are well positioned to really beginning to really begin leaning in on copper decommissioning, particularly.
of the network technology. What I'm saying, so that's one point, which I think is what you're getting at. What I'm trying to emphasize with the 91% is, we are well positioned.
really beginning to really begin leaning in on copper decommissioning, particularly in the residential segment. So I think 2022 is the year where you see us pick up the pace on decommissioning and positioning to position ourselves for a clear multi-year road.
Really in the residential.
Segment, So I think 2020 twos, the year, where you see us pick up the pace on decommissioning and positioning to position ourselves for a clear multi year roadmap on that front.
Ah, very glad I clarified that. Thanks for emphasizing. And if I can, well, just on fixed wireless, just one follow-up question. You obviously have a great ad started in Kudos to getting to a million homes past already. And I think you're doing pretty well on sub ads in those regions. Good for society, but also good for your business. But other players seem to be now wanting to get into that space. Can you talk a little bit about how?
Very glad to clarify that thanks for advertising and if I can just on fixed wireless just one.
Follow up question.
You, obviously have a great add started and kudos to getting to 1 million homes passed already and I think youre doing pretty well on sub ads in those regions.
Good for society, but also get you get for your business, but.
But other players seem to be now wanting to get into that space can you talk a little bit about how how do you protect that customer base, how sticky they already under contract.
how you protect that customer base, how sticky they are. Do other contracts used for these customers or do they have significant upfront equipment or install costs that might act as a barrier to them switching.
Contracts used for these customers or do they have significant upfront equipment or install cost.
After the barrier to them switching.
I'll put up our wireless home internet product against anyone so I think ultimately it's going to be a function of the network quality, the speed that you offer and the customer service that you offer along with it. So in the fact that we're there, in those areas where we were there first because there's no one else, I think the first mover advantage is critical.
Okay.
Put up our wireless home internet product against anyone so I think ultimately it's going to be a function of the network quality. The speeds that you offer and the customer service that you offer along with it so and the fact that we're there in areas where in those areas, where we were there first because there is no one else I think the first mover advantage.
<unk> is is critical.
And there are some areas in that million household footprint events where we actually weren't first. There might have been another competitor there, smaller cable competitor for it.
And there are some areas in that million.
Household footprint events, where we actually Werent first there might have been.
Another competitor there.
Our cable competitor for example, so being third or fourth in the market is going to be really difficult. So in those areas. We're taking share, but we were second to market, we may be offering faster speeds being third fourth.
So being third or fourth in the market is going to be really difficult. So in those areas we're taking share, but we were second to market, we may be offering faster speeds. Being third, fourth.
It's going to be tough. So I think really it's first mover advantage. It's the kind of credibility you buy with the community by having connected that community.
It's going to be tough so I think I think really its first mover advantage.
The kind of credibility you buy with the community by having connected that community and it's the customer service and the quality of the networks that packages whats going to allow us to continue to win.
the customer service and the quality of the networks. That package is what's going to allow us to continue to win.
Fair enough. Thank you.
We have time for one last question.
Last question is from Simon Flannery. For more, again, Stanley, please go ahead. Right, thank you very much. Good morning. Another strong quarter on the wireless sides continue to have a really good momentum year over year.
Perfect and then last question is from Simon Flannery from Morgan Stanley . Please go ahead.
Alright. Thank you very much good morning, another strong quarter on the wireless side continue to have really good momentum year over year.
I'd love to unpack the outlook for 2022. How are you thinking about the overall wireless opportunity and the snapback from COVID population growth household formation market share in that, in the guidance assumption? Do you think we continue at similar levels to 2022, or is there some certainly concern in the US about a kind of a deceleration after some very good quarters, any color there about what's driving the industry growth and your growth and how sustainable that is?
Would love to unpack the outlook for 2022, how are you thinking about the overall wireless opportunity.
And the snap back from Covid population growth household formation market share in that in the guidance assumption do you think we continue at similar levels to.
<unk> 2022 or is there some certain concern in the U S about a kind of a deceleration after some very good quarters any color there about what's driving the industry growth and your growth and how sustainable that is okay. Great question I'll take it take it kind of into two stages. So first just industry wide I think it's I mean, it's look.
Great question. I'll take it kind of in two stages. So first just industry wide.
looking like a strong balance 2-4 across the industry, so based on the results that have been released so far. And I see some good growth and strong upside for the industry because of immigration, reopening to more customary levels in Canada, the roaming upside that we're seeing that since.
Like a strong balanced Q4 across the industry. So.
Based on the results that have been released so far.
And I see some good growth and strong upside.
For the for the industry because of immigration.
Reopening to more customary levels in Canada, the roaming upside that we're seeing that since November .
kind of holding. I think supply chain issues should begin to ease in the second half of the year. I think the store constraints.
Kind of holding I think.
Supply chain issues should begin to ease in the second half of the year I think the store constraints.
It's not white as constrained as it was a year ago, and I think it was kind of the restrictions where it now will begin to ease. So I think industry...
Not quite as constrained as it was a year ago and I think what's kind of the restrictions were in now we will begin to ease so I think industry wide that's looking better.
fairly good. Now, I think it's worth mentioning where we sit.
Charlie Good now.
I think it's worth mentioning where we sit competitively within that.
and you see it in our strong service revenue growth and our output growth.
You see it in our strong service revenue growth in our <unk> growth.
We know why in our case.
phone strategy focusing on high quality smartphone loadings but
The mobile phone strategy, focusing on high quality smartphone loading, but it's more than that right. Because we have within the mobile phone strategy. We're focused on premium brands premium network within the mobile phone strategy and I think that's driving our results and in Q4, we had heavy year over year growth on the.
more than that, right? Because we have within the mobile phone strategy, we're focused on premium brand.
and I think that's driving our results. And in Q4, we have a heavy year over year growth on the belt.
Bell brand.
And I think that's important. If you look at our 6.3% service revenue growth, the majority of that...
And I think that's that's important if you look at our six 3% service revenue growth. The majority of that came from organic performance not roaming which is also quite positive.
is also quite positive. And I mean, I'll leave you with this thought, everyone. The launch of the new plans this week, the Unlim-
And I'll leave you with this thought everyone.
The launch of the new plans this week.
Unlimited ultimate plans.
We really want to highlight those because this is how we're going to differentiate 4G from 5G and...
We got I really want to highlight those because this is how we're going to differentiate <unk> from five <unk> and highlight our network superiority. So you're kind of differentiate prepaid from postpaid do you want to differentiate flanker from your premium brands and then you wanted to.
So you kind of differentiate prepaid from postpaid. You want a differentiate flanker from your premium bread. And then you want to...
wrench, eight, your 4G from your 5G services. So now with unlimited ultimate we have the bigger data, the buckets, the higher video quality.
Differentiate your <unk> from your <unk> services, So now with unlimited ultimate we have the bigger data buckets to higher video quality, we're including content and on the content. That's create mobile so we're paying ourselves essentially so now you start to showcase the incremental capabilities of <unk> and you would encourage people to up tier to move up that rate.
including content, and on the content, it's crepe mobile, so we're paying ourselves.
So now you start to showcase the incremental capabilities of five.
And you can encourage people to up here to move up that Ray Plan curve as I said in my open remarks. And I think that's good tailwind for 5G momentum in the wireless segment.
<unk> curve as I said in my opening remarks, and I think that's that's good tailwind.
For <unk> momentum in the wireless.
Segment, particularly for Bell mobility.
Great. Thank you.
Thanks again for your participation on the call this morning. We'll be available throughout the day for any follow-up questions or clarifications. Have a good rest of the day. Thank you. Thank you, everyone. Thank you. The conference has now ended. Please disconnect your lines of this time, and we thank you for your participation.
Thanks again for your participation on the call. This morning, we'll be available throughout the day for any follow up questions or clarifications have a good rest of the day.
Thank you. Thank you everyone.
Thank you.
Conference has now ended please disconnect your lines at this time and we thank you for your participation.
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