Exhibit 99.2

| MANAGEMENT’S DISCUSSION		AND ANALYSIS |
|--------------------------------------------|

In this management’s discussion and analysis of financial condition and results of operations (MD&A), *we, us, our, BCE *and *the company*mean, as the context may require, either BCE Inc. or, collectively, BCE Inc., its subsidiaries, joint arrangements and associates. *Bell *means our Bell Wireless, Bell Wireline and Bell Media segments on an aggregate basis. *Bell Aliant*means, as the context may require, until December 31, 2014, either Bell Aliant Inc. or, collectively, Bell Aliant Inc. and its subsidiaries and associates, or, after December 31, 2014, either Bell Aliant Regional Communications Inc. or, collectively, Bell Aliant Regional Communications Inc. and its subsidiaries and associates.

All amounts in this MD&A are in millions of Canadian dollars, except where noted. Please refer to section 10.2, *Non-GAAP financial measures and key performance indicators (KPIs)*on pages 106 to 109 for a list of defined non-GAAP financial measures and key performance indicators. Also refer to the glossary on page 155 for a list of defined terms.

Please refer to BCE’s audited consolidated financial statements for the year ended December 31, 2014 when reading this MD&A.

In preparing this MD&A, we have taken into account information available to us up to March 5, 2015, the date of this MD&A, unless otherwise stated.

You will find BCE’s audited consolidated financial statements for the year ended December 31, 2014, BCE’s annual information form for the year ended December 31, 2014, dated March 5, 2015 (BCE 2014 AIF) and recent financial reports on BCE’s website at **BCE.ca**, on SEDAR at **sedar.com**and on EDGAR at **sec.gov**.

This MD&A comments on our business operations, performance, financial position and other matters for the two years ended December 31, 2014 and 2013.

|                                             |
|--------------------------------------------------|
| **CAUTION REGARDING FORWARD-LOOKING STATEMENTS** |

BCE’s 2014 annual report including this MD&A and, in particular, but without limitation, section 1.3, *Key corporate developments*, section 1.4, *Capital markets strategy*, section 2, *Strategic imperatives*, section 3.2, *Business outlook and assumptions*, section 5, *Business segment analysis*and section 6.8, *Liquidity*of this MD&A, contain forward-looking statements. These forward-looking statements include, but are not limited to, BCE’s business outlook, objectives, plans and strategic priorities, BCE’s 2015 annualized common share dividend and common share dividend policy, BCE’s credit policies and the expected return of BCE’s Net Debt leverage ratio within BCE’s Net Debt leverage ratio target range, the sources of liquidity we expect to use to meet our anticipated 2015 cash requirements, our expected 2015 post-employment benefit plan funding, our network deployment plans, the expected timing and completion of BCE’s proposed acquisition of all of the issued and outstanding shares of Glentel Inc. (Glentel) and of BCE’s proposed disposition of a 50% ownership interest in Glentel to Rogers Communications Inc. (Rogers), and certain benefits expected to result from the Bell Aliant Privatization (as defined in section 1.1, *Introduction*) and from the proposed acquisition of Glentel. Forward-looking statements also include any other statements that do not refer to historical facts. A statement we make is forward-looking when it uses what we know and expect today to make a statement about the future. Forward-looking statements are typically identified by the words *assumption*, *goal*, *guidance*, *objective*, *outlook*, *project*, *strategy*, *target*and other similar expressions or future or conditional verbs such as *aim*, *anticipate*, *believe*, *could*, *expect*, *intend*, *may*, *plan*, *seek*, *should*, *strive*and *will*. All such forward-looking statements are made pursuant to the ‘safe harbour’ provisions of applicable Canadian securities laws and of the United States *Private Securities Litigation Reform Act of 1995*. Unless otherwise indicated by us, forward-looking statements in BCE’s 2014 annual report, including in this MD&A, describe our expectations as at March 5, 2015 and, accordingly, are subject to change after this date. Except as may be required by Canadian securities laws, we do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Forward-looking statements, by their very nature, are subject to inherent risks and uncertainties and are based on several assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in, or implied by, such forward-looking statements and that our business outlook, objectives, plans and strategic priorities may not be achieved. As a result, we cannot guarantee that any forward-looking statement will materialize and we caution you against relying on any of these forward-looking statements. Forward-looking statements are presented in BCE’s 2014 annual report, including in this MD&A, for the purpose of assisting investors and others in understanding our objectives, strategic priorities and business outlook as well as our anticipated operating environment. Readers are cautioned, however, that such information may not be appropriate for other purposes.

We have made certain economic, market and operational assumptions in preparing the forward-looking statements contained in BCE’s 2014 annual report and, in particular, but without limitation, the forward-looking statements contained in the above-mentioned sections of this MD&A. These assumptions include, without limitation, the assumptions described in the various sections of this MD&A entitled *Business outlook and assumptions*, which sections are incorporated by reference in this cautionary statement. We believe that these assumptions were reasonable at March 5, 2015. If our assumptions turn out to be inaccurate, our actual results could be materially different from what we expect.

Important risk factors including, without limitation, regulatory, competitive, economic, financial, operational and technological risks that could cause actual results or events to differ materially from those expressed in, or implied by, the above-mentioned forward-looking statements and other forward-looking statements in BCE’s 2014 annual report, in particular in this MD&A, include, but are not limited to, the risks described in section 9, *Business risks*, which section is incorporated by reference in this cautionary statement.

We caution readers that the risks described in the above-mentioned section and in other sections of this MD&A are not the only ones that could affect us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also have a material adverse effect on our financial position, financial performance, cash flows, business or reputation. Except as otherwise indicated by us, forward-looking statements do not reflect the potential impact of any special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after March 5, 2015. The financial impact of these transactions and special items can be complex and depends on the facts particular to each of them. We therefore cannot describe the expected impact in a meaningful way or in the same way we present known risks affecting our business.

 

| 24** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
OVERVIEW

**1**
 
**1**  OVERVIEW
**1.1** Introduction

**At a glance**

**BCE is Canada’s largest communications company**, providing residential, business and wholesale customers with a wide range of solutions for all their communications needs. BCE’s shares are publicly traded on the Toronto Stock Exchange and on the New York Stock Exchange (TSX, NYSE: BCE).

In 2014 and 2013, we reported the results of our operations in four segments: Bell Wireless, Bell Wireline, Bell Media and Bell Aliant.

Bell Wireless provides wireless voice and data communication products and services to Bell’s residential, small and medium-sized business and large enterprise customers across Canada.

Bell Wireline provides data, including Internet access and television (TV), local telephone, long distance, and other communications products and services to Bell’s residential, small and medium-sized business and large enterprise customers, primarily in the urban areas of Ontario and Québec. In addition, this segment includes our wholesale business, which buys and sells data, local telephone, long distance and other services from or to resellers and other carriers.

Bell Media provides conventional, specialty and pay TV, digital media, and radio broadcasting services to customers across Canada and out-of-home (OOH) advertising services. On July 5, 2013, BCE acquired 100% of the issued and outstanding shares of Astral Media Inc. (Astral). The results of Astral are included in our Bell Media segment from the date of acquisition.

Bell Aliant provides Internet, data, TV, local telephone, long distance, wireless, home security and value-added business solutions to residential and business customers in the Atlantic provinces and in rural and regional areas of Ontario and Québec. At December 31, 2013, BCE owned 44.1% of Bell Aliant, with the remaining 55.9% publicly held. BCE consolidated Bell Aliant as control was achieved through its right to appoint a majority of the board of directors of Bell Aliant. On October 31, 2014, BCE completed its acquisition of all of the issued and outstanding common shares of Bell Aliant that it did not already own (Privatization). Beginning January 1, 2015, the results of operations of Bell Aliant are included within our Bell Wireless and Bell Wireline segments, with prior periods restated for comparative purposes. Consequently, beginning in 2015, our reportable segments are Bell Wireless, Bell Wireline and Bell Media.

We also hold investments in a number of other assets, including:
-  a 28% indirect equity interest in Maple Leaf Sports & Entertainment Ltd. (MLSE)
-  a 35.4% indirect equity interest in Q9 Networks Inc. (Q9)
-  an 18.4% indirect equity interest in entities that operate the Montréal Canadiens Hockey Club and the Bell Centre in Montréal
-  a 15% equity interest in The Globe and Mail

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		25
**1**
OVERVIEW

MD&A 
 
 **BCE Customer Connections** **Our goal**
Our goal is to be recognized by customers as Canada’s leading communications company. Our primary business objectives are to maximize subscribers, revenues, operating profit, Free Cash Flow(1) and return on invested capital by further enhancing our position as the foremost provider in Canada of comprehensive communications services to residential and business customers. We seek to take advantage of opportunities to leverage our networks, infrastructure, sales channels, and brand and marketing resources across our various lines of business to create value for both our customers and other stakeholders.

Our strategy is centred on our disciplined focus and execution of six strategic imperatives. The six strategic imperatives that underlie Bell’s business plan are:
*(1)**Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures and do not have any standardized meaning under International Financial Reporting Standards (IFRS). Therefore, they are unlikely to be comparable to similar measures presented by other issuers. See section 10.2,*Non-GAAP financial measures and key performance indicators (KPIs) – Adjusted EBITDA and Adjusted EBITDA margin *and*Free Cash Flow and Free Cash Flow per Share *for more details, including, for Free Cash Flow, a reconciliation to the most comparable IFRS financial measure.*
 

26** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
OVERVIEW

**1**
 
 **1.2** About BCE
In 2014, we reported the results of our operations in four segments: Bell Wireless, Bell Wireline, Bell Media and Bell Aliant. Bell, which encompasses our core operations, is comprised of our Bell Wireless, Bell Wireline and Bell Media segments. We describe our product lines by segment below, to provide further insight into our operations.
 **Our products and services**
*Bell Wireless*

**SEGMENT DESCRIPTION**
-  Provides integrated digital wireless voice and data communications products andservices to residential and business customers across Canada
-  Includes the results of operations of Bell Mobility Inc. (Bell Mobility) and wireless-relatedproduct sales from The Source (Bell) Electronics Inc. (The Source)

**OUR NETWORKS AND REACH**

We hold licensed national wireless spectrum, with holdings across various spectrum bands totalling more than 4,200 million Megahertz per Population (MHz-POP) 

We have deployed and operate a number of leading nationwide wireless broadband networks compatible with global standards that deliver high-quality and reliable voice and high-speed data services to virtually all of the Canadian population 

Fourth-generation (4G) long-term evolution (LTE) network launched in September 2011:
-  Provides mobile Internet data access speeds as fast as   150 megabits per second (Mbps) (typical speeds of 12 to 40 Mbps)
-  Covered 86% of the Canadian population coast-to-coast atDecember 31, 2014
-  Reverts to the High-speed packet access plus (HSPA+) networkoutside LTE urban coverage area, ensuring continuity of service

HSPA+ network launched in November 2009:
-  Provides high-speed mobile access of up to 21 Mbps in mostareas (typical speeds of 3.5 to 8 Mbps), and as high as 42 Mbpsin areas with dual cell capability when using compatible devices(typical speeds of 7 to 14 Mbps)
-  Covered over 98% of the Canadian population coast to coast atDecember 31, 2014
-  Supports international roaming in more than 220 countries

National 3G code division multiple access (CDMA) network, which we began decommissioning in 2014 

Largest wireless fidelity (Wi-Fi) network across Canada:
- Over 4,000 public Wi-Fi hotspots at participating McDonald’s, Tim Hortons and Chapters/Indigo retail outlets across Canada, in addition to thousands of private Wi-Fi networks managed through our Bell Business Markets unit at enterprise customer locations

Approximately 1,600 Bell-branded stores and The Source locations across Canada

**OUR PRODUCTS AND SERVICES**
-  **Voice and data plans:** available on either postpaidor prepaid options
-  **Extensive selection of devices:** including leading 4G LTEsmartphones and tablets
-  **Data:** e-mail, web browsing, social networking, text messaging,picture and video messaging and call features
-  **Mobile TV:** over 35 live and 12 on-demand channels onsmartphones and tablets
-  **Entertainment:** games, text alerts, ringtones, wallpapers,ringback tones
-  **Mobile Internet:** Turbo Stick, Turbo Hub and MiFi
-  **Mobile commerce:** secure debit and credit purchases usingBell Mobility smartphones
-  **Mobile business services:** push-to-talk, workforce management,worker safety, dispatch, mobile device management
-  **Travel:** roaming services with other wireless service providersin more than 220 countries worldwide and Travel Data Passes
-  **Machine-to-machine (M2M) applications:** connected car andusage-based insurance vehicle tracking, asset management,remote monitoring and telematics

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		27
**1**
OVERVIEW

MD&A 
 

*Bell Wireline*

**SEGMENT DESCRIPTION**
-  Provides data (including TV, Internet access and information and communicationstechnology (ICT) solutions), local telephone, long distance and other communicationsservices to residential and business customers primarily in the urban areas ofOntario and Québec. We also offer competitive local exchange carrier (CLEC)services in Alberta and British Columbia
-  Includes the results of our wholesale business, which provides data, local telephone,long distance and other services to resellers and other carriers, and the wirelineoperations of NorthwesTel Inc. (NorthwesTel), which provides telecommunicationsservices in Canada’s Northern Territories
-  Includes wireline-related product sales from our wholly-owned subsidiary, nationalconsumer electronics retailer The Source

**OUR NETWORKS AND REACH**
-  Extensive local access network primarily in the urban areas ofOntario and Québec, as well as in Canada’s Northern Territories
-  Broadband fibre network, consisting of fibre-to-the-node(FTTN), fibre-to-the-home (FTTH) and fibre-to-the-building (FTTB),covering 6.5 million locations in Ontario and Québec
-  Bell Fibe TV service footprint encompassing 5 million householdsacross Ontario and Québec at December 31, 2014
-  Largest Internet protocol (IP) multi-protocol label switchingfootprint of any Canadian provider, enabling us to offer businesscustomers a virtual private network (VPN) service for IP trafficand to optimize bandwidth for real-time voice and TV
-  Access to the largest data centre footprint in Canada with25 locations in 7 provinces, enabling us to offer data centreco-location and hosted services to business customersacross Canada
-  Approximately 1,600 Bell-branded stores and The Sourcelocations across Canada

**OUR PRODUCTS AND SERVICES**

***RESIDENTIAL***
-  **Bell TV:** Fibe TV (our Internet Protocol Television (IPTV) service)and direct-to-home (DTH) Satellite TV, providing extensivecontent options and innovative features such as Restart, wirelessreceiver, Whole Home personal video recorder (PVR), on-demandprogramming, and a remote control application (app)
-  **Bell Internet:** High-speed Internet access through fibreoptic broadband technology or digital subscriber line (DSL)with a wide range of options, including unlimited usage,a comprehensive suite of security solutions, e-mail, Home Huball-in-one modem and Wi-Fi router, and mobile Internet.Our fibre optic Internet service, marketed as Bell Fibe Internet,offers speeds up to 50 Mbps with FTTN or 175 Mbps with FTTH.
-  **Bell Home Phone:** local telephone service with long distance andadvanced calling features
-  **Bell Bundles:** three and four product bundles of services withmonthly discounts

***BUSINESS***
-  **IP-based services:** IP VPN, business Internet and IP Telephony
-  **ICT solutions:** hosting and cloud services, managed solutions,professional services and infrastructure services that supportand complement our data connectivity services
-  **Voice:** local and long distance and unified communicationsservices, including audio and video conferencing, webcastingand web conferencing, and business terminal equipment

 

28** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
OVERVIEW

**1**
 

*Bell Media*

**SEGMENT DESCRIPTION**
-  Canada’s premier multimedia company with leading assets in TV, radio,OOH advertising and digital media
- Revenues are derived primarily from advertising and subscriber fees Conventional TV revenue is derived from advertising
Specialty TV revenue is generated from subscription fees and advertising
Pay TV revenue is received from subscription fees
Radio revenue is generated from advertising aired over our stations
OOH revenues are generated from advertising
 

**OUR ASSETS AND REACH**

***TV***
-  30 conventional TV stations, including CTV, Canada’s leadingTV network based on viewership
-  35 specialty TV channels, including TSN, Canada’s leadingspecialty channel and RDS, Canada’s leading French-languagespecialty channel
-  Four pay TV services, including The Movie Network andSuper Écran

***RADIO***
-  106 licensed radio stations in 54 markets across Canada

***OOH ADVERTISING***
- Network of more than 9,500 advertising faces in Québec, Ontario, Alberta and British Columbia

***DIGITAL MEDIA***
-  More than 200 websites, including TheLoop.ca

***SPORTS BROADCAST RIGHTS***
- Bell Media has secured long-term media rights to many of the key sports properties that are most important to Canadians, including being the official Canadian broadcaster of the Super Bowl, Grey Cup, IIHF World Junior Championship and FIFA Women’s World Cup Canada 2015. Bell Media’s slate of live sports coverage also includes the Toronto Maple Leafs, Montréal Canadiens, Winnipeg Jets and Ottawa Senators games, NFL, NBA, MLS, FIFA World Cup events through to 2022, Season of Champions Curling, UEFA Euro 2016, MLB, Barclays Premier League, UEFA Champions League, golf’s major championships, NASCAR Sprint Cup, Formula 1, Grand Slam Tennis and NCAA March Madness.

***OTHER ASSETS***
-  Equity stake in digital startup Hubub, a new digital platform forexploring and discussing interests
-  Investment in Cirque du Soleil Media, a joint venture with Cirquedu Soleil to develop media content for TV, film, digital, andgaming platforms
-  50% interest in Dome Productions Partnership, one of NorthAmerica’s leading providers of sports and other event productionand broadcast facilities

**OUR PRODUCTS AND SERVICES**
-  Varied and extensive array of TV programming to broadcastdistributors across Canada
-  **Advertising** on our TV, radio, OOH and digital media propertiesto both local and national advertisers across a wide range ofindustry sectors
-  **Mobile TV service** with live and on-demand access to contentfrom our conventional TV networks, CTV and CTV Two, BNN,TSN, RDS, Discovery and other brands in news, sports andentertainment. This mobile content is offered on commercialterms to all Canadian wireless providers
-  **CraveTV subscription on-demand TV streaming service**offering the largest collection of premium content in one place,including HBO’s programming library, on set-top boxes (STBs),mobile devices and online. CraveTV is offered to all CanadianTV providers
-  **TV Everywhere services**, including CTV GO, TMN GO, TSN GOand RDS GO, which provide on-demand content deliveredover mobile and Wi-Fi networks to smartphones, tabletsand computers

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		29
**1**
OVERVIEW

MD&A 
 

*Bell Aliant*

**SEGMENT DESCRIPTION**
-  One of the largest regional telecommunications service providers in North America,that was privatized by BCE on October 31, 2014
-  Provides a complete range of communications, information and entertainmentservices, including Internet, data, TV, voice, wireless, home security, and value-added business solutions to residential and business customers in Canada’s Atlanticprovinces, as well as in rural and regional areas of Ontario and Québec
-  Beginning January 1, 2015, the results of operations of Bell Aliant are included withinour Bell Wireless and Bell Wireline segments. Consequently, beginning in 2015, ourreportable segments are Bell Wireless, Bell Wireline and Bell Media.

**OUR NETWORKS AND REACH**
-  Reaching over 5 million Canadians in six provinces (Nova Scotia,New Brunswick, Newfoundland and Labrador, Prince EdwardIsland, Ontario and Québec)
-  Extensive local access network in Atlantic Canada, as well as incertain areas of Ontario and Québec not serviced by Bell
-  Extensive broadband fibre infrastructure, consisting primarily ofan FTTH network covering more than 1 million locations

**OUR PRODUCTS AND SERVICES**
-  Residential service bundles that have a combination of Internetservice (FibreOP or DSL), TV (FibreOP TV, Bell Aliant TV, or BellSatellite TV), home phone, local features, long distance plansand cellular service (over digital wireless networks in certainterritories in Québec and Ontario or Bell Mobility)
-  In business markets, we provide combined service offerings inthe form of business bundles and customized solutions

*Other BCE investments*

BCE also holds investments in a number of other assets, including:
-  MLSE: 28% indirect equity interest
-  Q9: 35.4% indirect equity interest
-  Montréal Canadiens Hockey Club: 18.4% indirect equity interest
-  The Globe and Mail: 15% equity interest
 **Our people**
**EMPLOYEES**

At the end of 2014, our team included 57,234 employees dedicated to driving shareholder return and improving customer service.

 

30** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
OVERVIEW

**1**
 

The total number of BCE employees at the end of 2014 increased by 1,404 employees compared to the end of 2013, due primarily to the repatriation of activities from certain suppliers to Bell, as well as an increased workforce in our field services operations to support our ongoing IPTV roll-out and service quality initiatives. This increase was offset partly by a decreased workforce across our Bell Wireless and Bell Aliant segments attributable to normal attrition, retirements and productivity improvements.

Approximately 43% of total BCE employees are represented by labour unions.

**BELL CODE OF BUSINESS CONDUCT**

The ethical business conduct of our people is core to the integrity with which we operate our business. The Bell Code of Business Conduct sets out specific expectations and accountabilities, providing employees with practical guidelines to conduct business in an ethical manner. Our commitment to the Code of Business Conduct is renewed by employees each year in an ongoing effort to ensure that all employees are aware of and adhere to Bell’s standards of conduct.
 **1.3** Key corporate developments
**Bell Aliant Privatization and note exchange**

On July 23, 2014, BCE announced its offer to acquire all of the issued and outstanding common shares of Bell Aliant Inc. that it did not already own for a total consideration of approximately $3.95 billion. On the same day, BCE also announced its offer to exchange all of the issued and outstanding preferred shares of Bell Aliant Preferred Equity Inc. (Prefco) for newly issued first preferred shares of BCE, with the same financial terms as the existing Prefco preferred shares (Preferred Share Exchange). The Bell Aliant Privatization was completed on October 31, 2014 and the Preferred Share Exchange was completed on November 1, 2014. The Bell Aliant Privatization is expected to simplify BCE’s corporate structure and increase overall operating and capital investment efficiencies, while supporting BCE’s broadband investment strategy and dividend growth objective with strong annualized Free Cash Flow accretion. As BCE already consolidated the financial results of Bell Aliant Inc., the Bell Aliant Privatization has been accounted for as an equity transaction.

On November 20, 2014, Bell Canada and Bell Aliant Regional Communications, Limited Partnership (Bell Aliant LP) completed a transaction to exchange all Bell Aliant LP medium term and floating rate medium term notes in the aggregate principal amount of $2.3 billion (collectively, the Bell Aliant LP Notes) for Bell Canada debentures guaranteed by BCE and having the same financial terms (including with respect to coupon, maturity and redemption price) as those of the Bell Aliant LP Notes (the Bell Aliant Note Exchange). The note exchange transaction is part of BCE’s strategy to simplify its capital structure and enhance administrative efficiencies by concentrating public debt into a single issuer.

As a result of the above-mentioned transactions, each of Bell Aliant Inc., Prefco, Bell Aliant Regional Communications Inc. and Bell Aliant LP ceased to be reporting issuers as of December 18, 2014. Bell Aliant Inc. was dissolved effective December 31, 2014, and Bell Canada now directly owns all of the issued and outstanding shares of Bell Aliant Regional Communications Inc.
 **Acquisition of mobile phone distributor Glentel**
On November 28, 2014, BCE announced the signing of a definitive agreement to acquire all of the issued and outstanding shares of Glentel for a total consideration of $594 million. The total transaction is valued at approximately $670 million, including net debt and non-controlling interest (NCI). The transaction consideration will consist of a combination of 50% in cash, to be funded from available liquidity, and 50% in BCE common shares. Glentel shareholder approval was obtained at a special meeting of shareholders held on January 12, 2015, and court approval was obtained on January 14, 2015. The transaction is expected to close in the spring of 2015, subject to closing conditions, including regulatory approvals. Glentel is a Canadian-based dual-carrier, multi-brand mobile products distributor. The transaction will enhance our strategy to accelerate wireless and improve customer service.

On December 24, 2014, BCE announced that following the closing of the Glentel acquisition, it will divest 50% of its ownership interest in Glentel to Rogers. Rogers will pay BCE approximately $392 million in cash. In addition, Rogers will pay 50% of any additional equity contribution made by BCE after the closing of the Glentel acquisition to repay Glentel outstanding debt. The transaction with Rogers is expected to close shortly after the acquisition of Glentel by BCE, subject to customary closing conditions, including regulatory approvals.

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		31
**1**
OVERVIEW

MD&A 
 
 **New Chief Financial Officer (CFO) of BCE named**
On October 14, 2014, BCE announced that Siim Vanaselja, CFO of BCE and Bell Canada, will retire in the second quarter of 2015. Glen LeBlanc, former CFO of Bell Aliant, will become CFO of BCE and Bell Canada at that time. BCE’s succession plan for the CFO role leverages the exceptional executive talent at the BCE group of companies to ensure a smooth transition. Mr. Vanaselja will retire after BCE’s 2015 Annual General Meeting of Shareholders, scheduled for April 30, 2015, and before the end of Q2 2015. He will continue to serve on the board of directors of MLSE. Until Mr. Vanaselja’s retirement, Mr. LeBlanc is serving as Senior Vice-President, Finance for BCE and Bell Canada.
 **1.4** Capital markets strategy
We seek to deliver sustainable shareholder returns through consistent dividend growth. That objective is underpinned by continued growth in Free Cash Flow, a healthy level of ongoing capital investment in the business, a strong balance sheet and an investment-grade credit profile.
 **Dividend growth and payout policy**
On February 5, 2015, we announced a 5.3%, or 13 cent, increase in the annualized dividend payable on BCE’s common shares for 2015 to $2.60 per share from $2.47 per share in 2014, starting with the quarterly dividend payable on April 15, 2015. This represents BCE’s 11th increase to its annual common share dividend, representing a 78% increase, since the fourth quarter of 2008.

The dividend increase for 2015 is consistent with BCE’s common share dividend policy of a target payout between 65% and 75% of Free Cash Flow. We intend to grow BCE’s common share dividend if we achieve Free Cash Flow growth. BCE’s dividend policy and the declaration of dividends are subject to the discretion of BCE’s Board.

We have a strong alignment of interest between shareholders and our management’s equity-based long-term incentive compensation plan. The vesting of performance share units depends on the realization of our dividend growth policy, while stock options reflect our commitment to increase the share price for our shareholders. Simply put, as we grow our Free Cash Flow and common dividend, we create value for our shareholders and management alike.
-  Stringent share ownership requirements
-  Emphasis on pay-at-risk for executive compensation
-  Double trigger change in control policy
-  Anti-hedging policy on share ownership and incentive compensation
-  Clawbacks for the President and chief executive officer (CEO) and allExecutive Vice-Presidents as well as all option holders
-  Caps on all supplemental executive retirement plans (SERP) and annualbonus payouts, in addition to mid-term and long-term incentive grants
-  Vesting criteria fully aligned to shareholders interests

 

32** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
OVERVIEW

**1**
 
 **Use of excess cash**
Our dividend payout policy allows BCE to retain a high level of excess cash. Consistent with our capital markets objective to deliver sustainable shareholder returns through dividend growth while maintaining appropriate levels of capital investment, investment-grade credit ratings and considerable overall financial flexibility, we deploy excess cash in a balanced manner.

Uses of excess cash include, but are not limited to:
- Voluntary contributions to BCE’s defined benefit (DB) pension plans to improve the funded position of the plans and help minimize volatility of future funding requirements
- Financing of strategic acquisitions and investments (includingwireless spectrum purchases) that support the growth ofour business
- Debt reduction
- Share buybacks through normal course issuer bid(NCIB) programs

In 2014, BCE’s excess cash of $851 million was directed towards the purchase of 700 MHz wireless spectrum, to partially finance the Privatization of Bell Aliant and a voluntary contribution to our DB pension plan.
 **Total shareholder return performance**
This graph compares the yearly change in the cumulative annual total shareholder return of BCE common shares to the cumulative annual total return of the S&P/TSX Composite Index, for the five-year period ending December 31, 2014, assuming an initial investment of $100 on December 31, 2009 and quarterly reinvestment of all dividends.
(1)*Based on BCE common share price on the Toronto Stock Exchange and assumes the reinvestment of dividends.*(2)*With approximately 95% coverage of the Canadian equities market, the S&P/TSX Composite Index is the primary gauge against which to measure total shareholder return for Canadian-based, Toronto Stock Exchange-listed companies.*
 
 **Strong capital structure**
BCE’s capital structure and strong liquidity position provide us with a solid financial foundation and a high level of overall financial flexibility. BCE is well-positioned with an attractive long-term debt maturity profile and manageable near-term requirements to repay debt. We continue to monitor the capital markets for opportunities where we can further reduce our cost of debt and our cost of capital. We proactively manage financial risk in terms of currency exposure of our U.S. dollar-denominated purchases, as well as equity risk exposure under BCE’s long-term equity-based incentive plans and interest rate and foreign currency exposure under our various debt instruments. We also seek to maintain investment-grade credit ratings with stable outlooks.
   
**ATTRACTIVE LONG-TERM DEBT MATURITYPROFILE**
-  Average term of Bell Canada’s debtis approximately 9 years (includingexchanged Bell Aliant LP debt)No debenture maturities untilDecember 2015Average after-tax cost of debt of3.4%
 
**STRONG LIQUIDITY POSITION**
-  $2.5 billion credit facility withfive-year remaining term$500 million accounts receivablesecuritization available capacity$566 million cash on handatthe end of 2014
 
**INVESTMENT-GRADE CREDIT PROFILE**
-  Long-term debt credit rating of A(low)			by DBRS Limited (DBRS), Baa1 by Moody’s Investors Services Inc.			(Moody’s) and BBB+ by Standard & Poor’s Rating Services (S&P), all			with stable outlooks
 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		33
**1**
OVERVIEW

MD&A 
 

We successfully accessed the capital markets in September 2014, raising a total of $1.25 billion in gross proceeds from the issuance of Bell Canada medium-term note (MTN) debentures on attractive terms. Approximately $1 billion of the net proceeds from the offering were used to fund payment of the 25% cash consideration associated with the Privatization and the balance for general corporate purposes. On November 20, 2014, we completed a transaction to exchange $2.3 billion of Bell Aliant LP Notes for Bell Canada debentures having the same financial terms as those of Bell Aliant LP Notes. The Bell Aliant Note Exchange was part of Bell’s strategy to simplify its capital structure and enhance administrative efficiencies by concentrating all public debt into a single issuer.

At the end of 2014, BCE’s average annual pre-tax cost of debenture debt declined to 4.7% (3.4% on an after-tax basis) from 4.8% (3.5% on an after-tax basis) in 2013, with an average term to maturity of 8.9 years.

As a result of financing a number of strategicacquisitions made over the past few years, including Astral, CTV, MLSE and BellAliant, voluntary funding contributions to reduce our pension solvency deficit,wireless spectrum purchases, and the incremental Bell Aliant debt that wasassumed pursuant to the Bell Aliant Note Exchange, Bell Canada increased its NetDebt(1) leverage ratio target range,concurrent with the announcement of the Privatization on July 23, 2014, from 1.5to 2.0 times Adjusted EBITDA to 1.75 to 2.25 times Adjusted EBITDA. The newtarget range remains aligned with our investment-grade credit rating policy andis supported by BCE’s improved business risk profile, larger scale and strongFree Cash Flow generation relative to when the previous target range wasestablished in 2009. Neither the change in the Net Debt leverage ratio targetrange nor the Net Debt leverage ratio resulting from the Privatization affectedBCE’s or Bell Canada’s credit ratings or outlooks. That ratio is expected toimprove over time and return within the Net Debt leverage ratio target rangethrough growth in Free Cash Flow and applying a portion of excess cash to thereduction of BCE’s indebtedness.

BCE CREDIT POLICIESINTERNAL TARGET  DECEMBER 31, 2014 
Net Debt to Adjusted EBITDA1.75–2.25  2.59 
Adjusted EBITDA to Net Interest Expense>7.5  8.38 
 

 
 **1.5** Corporate governance and risk management
**Corporate governance philosophy**

BCE’s Board and management believe that strong corporate governance practices contribute to superior results in creating and maintaining shareholder value. That is why we continually seek to strengthen our leadership in corporate governance and ethical business conduct by adopting best practices, and providing full transparency and accountability to our stakeholders.

Key governance strengths and actions in support of our governance philosophy include:
-  Separation of the Board Chair and CEO roles
-  Director independence standards
-  Board committee memberships restricted toindependent directors
-  Annual director effectiveness and performance assessments
-  Ongoing reporting to Board committees regarding ethicsprograms and the oversight of corporate policies across BCE
-  Share ownership guidelines for directors and executives
-  Executive compensation programs tied to BCE’s abilityto grow its common share dividend

In 2013, the BCE Board was recognized by the Canadian Coalition for Good Governance, receiving the organization’s Gavel Award for best corporate governance disclosure, which underscores the importance of effective communication between corporations and their shareholders. The Canadian Society of Corporate Secretaries also named BCE the winner of its first-ever award for best overall corporate governance, recognizing our long history of best practices in building and sustaining shareholder and stakeholder value. In addition, BCE received the Best Overall Corporate Governance Award – International at the Corporate Secretary Corporate Governance Awards in New York. These achievements recognize the expertise and guidance provided by the BCE Board, and the hard work and dedication of the BCE team in ensuring rigorous governance over our company’s operations.

For more information, please refer to BCE’s most recent notice of annual general shareholder meeting and management proxy circular filed with the Canadian provincial securities regulatory authorities, available on SEDAR at **sedar.com**and on BCE’s website at **BCE.ca**.
(1)*Net Debt is a non-GAAP financial measure and does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers. See section 10.2,*Non-GAAP financial measures and key performance indicators (KPIs) – Net Debt *for more details, including a reconciliation to the most comparable IFRS financial measure.*
 

34** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
OVERVIEW

**1**
 
 **Risk governance framework**
**BOARD OVERSIGHT**

BCE’s full Board is entrusted with the responsibility for identifying and overseeing the principal risks to which our business is exposed and seeking to ensure there are processes in place to effectively identify, monitor and manage them. These processes seek to mitigate rather than eliminate risk. A risk is the possibility that an event might happen in the future that could have a negative effect on our financial position, financial performance, cash flows, business or reputation. The Board delegates responsibility for the execution of certain elements of the risk oversight program to Board committees in order to ensure that they are treated with appropriate expertise, attention and diligence, reporting to the Board in the ordinary course of business. The Board retains overall responsibility for, as well as direct oversight of, other risks, such as those relating to our regulatory environment, competitive environment, complexity, service and operational effectiveness, strategic network evolution, information technology (IT), strategy development and business integration.

Risk information is reviewed by the Board or the relevant committee throughout the year and business leaders present regular updates on the execution of business strategies, risks and mitigation activities.

The Audit Committee oversees financial reporting and disclosure as well as overseeing that appropriate risk management processes are in place across the organization. As part of its risk management oversight activities, the Audit Committee reviews the organization’s risk reports and ensures that responsibility for each principal risk is formally assigned to a specific committee or the full Board, as appropriate. The Audit Committee also regularly considers risks relating to financial reporting, legal proceedings, physical security, performance of critical infrastructure, information security, privacy and records management, business continuity and the environment. The Management Resources and Compensation Committee (Compensation Committee) oversees risks relating to compensation, succession planning and health and safety practices. The Pension Committee has oversight responsibility for risks associated with the pension fund. The Corporate Governance Committee assists the Board in developing and implementing BCE’s corporate governance guidelines and determining the composition of the Board and its committees. In addition, the Corporate Governance Committee oversees matters such as the organization’s policies concerning business conduct, ethics and public disclosure of material information.

**RISK MANAGEMENT CULTURE**

Bell has a strong culture of risk ownership which is actively promoted by the Board and the company’s President and CEO at all levels within the organization. It has become a part of how the company operates on a day-to-day basis and is woven into the structure and operating principles, guiding the implementation of the organization’s strategic imperatives.

The President and CEO, selected by the Board, has set his strategic focus through the execution of six strategic imperatives and focuses risk management around the factors that could impact the achievement of those strategic imperatives. While the constant change in the economic environment and the industry creates challenges, the clarity around strategic objectives, performance expectations, risk management and integrity in execution ensures discipline and balance in all aspects of Bell’s business.

**RISK MANAGEMENT FRAMEWORK**

While the Board is responsible for Bell’s risk oversight program, operational business units are central to the proactive identification and management of risk. They are supported by a range of corporate support functions that provide independent expertise to reinforce implementation of risk management approaches in collaboration with the operational business units. The Internal Audit function provides a further element of expertise and assurance, working to provide insight and support to the operational business units and corporate support functions while also providing the Audit Committee with an independent perspective on the state of risk and control within the organization. Collectively, these elements can be thought of as a “Three Lines of Defence” approach to risk management, which is aligned with industry best practices and endorsed by the Institute of Internal Auditors.

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		35
**1**
OVERVIEW

MD&A 
 

***FIRST LINE OF DEFENCE – OPERATIONAL MANAGEMENT***

The first line refers to management within Bell’s operational business segments (Bell Wireless, Bell Wireline and Bell Media) who are expected to understand their operations in great detail and the financial results which underpin them. There are regular reviews of operating performance involving the organization’s executive and senior management. The discipline and precision associated with this process, coupled with the alignment and focus around performance goals, creates a high degree of accountability and transparency, in support of Bell’s risk management practices.

As risks emerge in the business environment, they are discussed in a number of regular forums to share details and explore their relevance across the organization. Executive and senior management is integral to these activities in driving the identification of risks, assessment, mitigation and reporting at all levels. Formal risk reporting occurs through strategic planning sessions, management presentations to the Board and formal enterprise risk reporting which is shared with the Board and the Audit Committee during the year.

Management is also responsible for maintaining effective internal controls and for executing risk and control procedures on a day-to-day basis. Each operational business unit develops its own operating controls and procedures that fit the needs of its unique environment.

***SECOND LINE OF DEFENCE – CORPORATE SUPPORT FUNCTIONS***

Bell is a large enterprise with approximately 51,000 employees, multiple business units and a diverse portfolio of risks which can change as a result of internal and external factors. In a large organization, it is common to manage certain functions centrally for efficiency, scale and consistency. While the first line of defence is often central to identification and management of business risks, in many instances operational management works both collaboratively with, and also relies on, the corporate functions which make up the second line of defence for support in these areas. These corporate functions include Finance, Corporate Security and Corporate Risk Management, as well as others such as Legal and Regulatory, Corporate Responsibility, Real Estate and Procurement.

**Finance function:** Bell’s Finance function plays a pivotal role in seeking to identify, assess and manage risks through a number of different activities which include financial performance management, external reporting, capital management and oversight and execution practices related to the United States *Sarbanes-Oxley Act of 2002*.

**Corporate Security function:** This function is responsible for all aspects of security, which requires a deep understanding of the business, the risk environment and the external stakeholder environment. Based on this understanding, Corporate Security sets the standards of performance required across the organization through security policy definitions and monitors the organization’s performance against these policies. In high and emerging risk areas such as cybersecurity, Corporate Security leverages its experience and competence and, through collaboration with the operational business units, develops strategies intended to mitigate the organization’s risks.

**Corporate Risk Management function:** This function works across the company to gather information and report on the organization’s assessment of its principal risks and the related exposures. Annually, senior management participates in a risk survey which provides an important reference point in the overall risk assessment process.

The second line of defence is critical in building and operating the oversight mechanisms which bring focus to relevant areas of risk and reinforce the bridges between the first and second lines of defence, thereby seeking to ensure that there is a clear understanding of emerging risks, their relevance to the organization and the proposed mitigation plans. To further coordinate efforts between the first and second lines of defence, Bell has established a Security, Environmental and Health & Safety Committee (SEHS). A significant number of Bell’s most senior leaders are members of this committee, whose purpose is to oversee Bell’s strategic security, environmental, health and safety risks and opportunities. This cross-functional committee seeks to ensure that relevant risks are adequately recognized and mitigation activities are well-integrated and aligned across the organization and are supported with sufficient resources.

***THIRD LINE OF DEFENCE – INTERNAL AUDIT FUNCTION***

Internal Audit is a part of the overall management information and control system and has the responsibility to act as an independent appraisal function. Its purpose is to provide the Audit Committee and management with objective evaluations of the company’s risk and control environment, to support management in delivering against Bell’s strategic imperatives and to maintain an audit presence throughout Bell and its subsidiaries.

 

36** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
STRATEGIC IMPERATIVES

**2**
 
**2**  STRATEGIC IMPERATIVES
 
*Our success is built on the Bell team’s dedicated execution of the six Strategic Imperatives that support our goal to be recognized by customers as Canada’s leading communications company.*
**2.1** Accelerate wireless

**Our objective is to grow our Bell Wireless business profitably by focusing on postpaid subscriber acquisition and retention, maximizing average revenue per user (ARPU) by targeting high-value smartphone subscribers in all geographic markets we operate in, leveraging our wireless networks, maintaining device and mobile content leadership to drive greater wireless data penetration and usage, as well as by increasing our share of in-bound global roaming traffic.**

***2014 PROGRESS***
-  Acquired 35% and 46% of total new postpaid gross and netactivations, respectively, among the three major wirelesscarriers, while achieving leading ARPU and Adjusted EBITDAgrowth of 4.9% and 9.6%, respectively, as well as service marginexpansion of 1.3 percentage points over 2013
-  Expanded the number of smartphone users at the end of 2014to 76% of our total postpaid subscribers, up from 73% at the endof 2013
- Expanded our leading smartphone lineup with over 40 newdevices, including the Apple iPhone 6 and iPhone 6 Plus,Samsung Galaxy S5, Samsung Galaxy Note 4, Google Nexus 6,HTC One M8, LG G3, Sony Xperia Z3 and BlackBerry Classic,adding to our extensive selection of 4G LTE-capable devices.In addition, the Apple iPad Air 2 and iPad mini 3 are alsoavailable directly from Bell.
- Announced an agreement to acquire Glentel, a Canadian-baseddual-carrier, multi-brand mobile products distributor, of whichwe expect to retain a 50% ownership interest, to maintain Bell’scompetitive position by securing long-term access to Glentel’seffective wireless retail distribution network
- Launched a secure mobile payment solution, RBC Wallet, withRoyal Bank of Canada (RBC) in January 2014, which allowscustomers to use their compatible Bell Mobility smartphones tomake secure debit and credit purchases at retail locations thataccept contactless payments. During the year, we announcedthree additional partnerships with, TD Canada Trust, CanadianImperial Bank of Commerce (CIBC) and Desjardins Group, tolaunch similar secure mobile payment solutions. With thesepartnerships, Bell provides consumers with access to the mostchoices for mobile payment services in Canada.
- Continued to reduce the cost of mobile roaming in the countriesCanadians travel to the most, with reductions in voice and dataroaming prices for Cuba, Japan and South Korea. This followspreviously announced significant roaming rate decreases forthe United States (U.S.), most European nations, China, Mexico,Turkey, Australia and New Zealand, Bermuda, and most otherCaribbean islands.
- Introduced Easy Purchase Plan, an instalment program for tabletpurchases for existing Bell Mobility customers, allowing them tospread a portion of the cost of a new tablet over two years whenpaired with a tablet plan

***2015 FOCUS***
-  Profitably grow wireless postpaid subscriber base whilemaintaining market share momentum of incumbent postpaidsubscriber activations
-  Further narrow the ARPU gap versus incumbent competitors
-  Manage the financial and churn impacts from unusual marketactivity that could arise from the significantly increased numberof customers with two- or three-year service contracts whowill be eligible to renew their plans or change carriers over thenext two years as a result of the mandatory code of conductfor providers of retail mobile wireless voice and data servicesin Canada (Wireless Code) implemented in 2013, to the extentthat the Canadian Radio-television and TelecommunicationsCommission’s (CRTC) June 3, 2015 Wireless Code applicationdate is found to be valid
-  Offer the latest handsets and devices in a timely mannerto enable customers to benefit from ongoing technologicalimprovements by manufacturers and from faster data speedsto optimize the use of our services
-  Accelerate new revenue streams by driving the commercialization of next generation mobile commerce and M2M servicesand applications

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		37
**2**
STRATEGIC IMPERATIVES

MD&A 
 
 **2.2** Leverage wireline momentum
**We focus on leveraging our fibre-based TV and Internet services to develop attractive residential offers that drive higher multi-product bundle sales and improve customer satisfaction and retention. These new services contribute to the ongoing shift of our operating mix away from legacy wireline voice services.**

**In our business markets, we remain focused on expanding our broadband network and strengthening our delivery of integrated solutions to Canadian businesses, while continuing to manage the transformation of our business from legacy network services to a fully-integrated data hosting, cloud computing and managed services provider.**

***2014 PROGRESS***
-  Increased our total number of Bell Fibe TV subscribers by 46.1%to 700,533
-  Increased the number of three-product households – those thatbuy TV, Internet and Home Phone – by 15% over 2013, fuelled byour Fibe TV service, which drove higher pull-through attach ratesfor Home Phone and Internet services, with 77% of all Bell Fibe TVcustomers taking three products
-  Launched the Home Hub Internet modem and Wi-Fi router,featuring the latest 802.11 AC wireless standard that deliversWi-Fi speeds up to three times faster than most residential Wi-Firouters and offers a range of integrated tools for customersto manage access and usage by multiple users and devices inthe home
-  Made several enhancements to Fibe TV service, including Fullhigh-definition (HD) movies and the ability to add programmingright from a user’s remote. We also added more live andon-demand programming, including more than 5,000 episodesof children’s shows with Kids Suite, more HD games with MajorLeague Baseball Extra Innings and a new premium channelbeIN Sports
-  Launched Business Bundles, which include services such asunlimited Fibe Internet, phone lines with calling features andonline security, with guaranteed pricing for 36 months
-  Launched an exclusive and unique optical network terminal(ONT) for business service, supporting up to four voice linesand 4 gigabit Ethernet interfaces that offer full 1 gigabitper second (Gbps) throughput, making it an ideal solutionfor business customers

***2015 FOCUS***
-  Continue to enhance our Fibe TV service In February 2015, we introduced an innovative Fibe TV feature called Restart, enabling customers to rewind and watch TV shows already in progress from the beginning. In addition, we further enhanced the Fibe TV on-screen menu and channel guide with fast access to the main menu from anywhere in the Fibe TV experience, a larger channel preview window, a Last Peek feature that shows picture-in-picture for the last 5 channels tuned, and an improved universal search.
 
- Expand our total base and market share of TV and Internetsubscribers profitably
- Continue to reduce total wireline residential net losses
- Increase residential household ARPU through greaterthree-product household penetration
- Increase share of wallet of large enterprise customersthrough greater focus on business service solutions andconnectivity growth
- Expand and improve sales distribution and coverage in ourmid-sized business segment
- Increase the number of net new customer relationships inboth large and mid-sized business and reduce small businesscustomer losses
- Complete the integration of Bell Aliant to generate operatingcost and capital investment synergies
 **2.3** Expand media leadership
**We continue to deliver leading sports, news, entertainment and business content across multiple broadband platforms – TV, Internet, smartphones and tablets. Our objectives are to grow audiences, introduce new services and create new revenue streams for our media assets. We also plan to create more of our own content, ensuring that Canadian attitudes, opinions, values and artistic creativity are reflected in our programming and in our coverage of events in Canada and around the world.**

***2014 PROGRESS***
-  Maintained CTV’s #1 ranking as the most-watched networkin Canada for the 13th year in a row, and continued to leadwith a majority of the Top 20 programs nationally in allkey demographics
-  Expanded TSN, Canada’s sports leader and the leading specialtyTV network in the country, from two to five national feeds,fully leveraging Bell Media’s unparalleled portfolio of premiumsports programming
- In December 2014, Bell Media concluded a multi-year broadcastrights agreement with UEFA, making TSN and RDS theprimary Canadian broadcasters of the crown jewels ofclub soccer – the UEFA Champions League and UEFA EuropaLeague – beginning in 2015
- Concluded a comprehensive media rights agreement with theUnited States Golf Association for exclusive Canadian coverageof the U.S. Open on TSN and RDS through to 2022
- Concluded an agreement with CBC/Radio-Canada to be theofficial sports specialty broadcaster for the PyeongChang 2018Winter Olympic Games and the Tokyo 2020 SummerOlympic Games

 

38** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
STRATEGIC IMPERATIVES

**2**
 
-  Launched CraveTV subscription video on-demand (SVOD)TV streaming service, offering the largest collection of premiumcontent in one place with more than 10,000 hours of TVprogramming and approximately 350 unique titles of popularseries and movies within the first year on STBs, mobile devicesand online
-  Acquired the exclusive Canadian multi-platform rights, includingSVOD, to HBO’s off-air catalogue of TV programming, complementing a multi-year, multi-platform agreement that will seeHBO Canada exclusively deliver the entire past-season libraryof every HBO scripted series currently on air
-  Expanded TV Everywhere offerings with the launch of TSN GO,enabling subscribers to access more than 6,000 hours of livesports and on-demand coverage of the most popular anddiverse lineup of sports programming in Canada on theirsmartphones, tablets and computers at no additional charge.We also launched Super Écran GO, providing instant andunlimited access to Super Écran programming. Bell Medianow offers 12 mobile GO products, including TMN GO, CTV GO,RDS GO and Bravo GO
-  Invested in Canadian digital startup Hubub, a new digitalplatform for exploring and discussing interests, and obtainedthe exclusive rights to monetize Hubub in Canada

***2015 FOCUS***
-  Maintain strong audience levels and ratings acrossall TV and radio properties
-  Reinforce industry leadership in conventional TV, pay TV,sports media and radio
-  Grow viewership and scale of new CraveTV on-demandTV streaming service
-  Develop in-house production and content creation fordistribution and use across all platforms and screens
-  Expand live and on-demand content through TV Everywhere services
-  Grow French media properties
-  Leverage cross-platform and integrated sales and sponsorship
-  In support of the above focus areas, in January 2015, Bell Mediaconcluded a long-term content licensing and trademarkagreement to bring the Showtime brand to Canada for the firsttime with hundreds of hours of past, present and future Showtime-owned programming being made available across all platforms inEnglish and French, including CraveTV and TMN
 **2.4** Invest in broadband networks and services
**We invest in wireline and wireless broadband platforms to deliver the most advanced wireless, TV, Internet and other IP-based services available, to support continued subscriber and data growth across all our residential product lines as well as the needs of our business market customers.**

***2014 PROGRESS***
-  Expanded our next-generation 4G LTE wireless network to reach86% of the Canadian population coast to coast
-  Increased mobile 4G LTE network speeds by up to 45% acrossour entire service footprint, giving Bell Mobility and Virgin Mobilecustomers faster mobile access to the Internet and data services
-  Acquired 31 licences for 480 million MHz-POP of nationwide700 MHz spectrum for $566 million following Industry Canada’sfederal wireless spectrum auction, bringing Bell’s total spectrumholdings to more than 4,200 million MHz-POP nationally
-  Launched Canada’s first 700 MHz spectrum LTE network inHamilton, Ontario in early April
- Launched 4G LTE mobile service in 52 communities in AtlanticCanada and in seven communities in the Northwest Territories
- Extended our Fibe TV service coverage to reach more than5 million households across Ontario and Québec, up fromapproximately 4.3 million at the end of 2013. IncludingBell Aliant’s FibreOP service area, BCE’s total IPTV footprintnow covers 6 million homes, up from 5.1 million at the endof 2013, including 2.1 million passed with FTTH.
- Began the deployment of an FTTH network that will bringadvanced Bell Fibe TV and Internet services to Kingston, Ontario.Kingston is the second municipality, after Québec City, in Bell’sincumbent Ontario and Québec wireline footprint, where we aredeploying FTTH city-wide, bringing high-speed fibre technologydirectly into homes and businesses.

***2015 FOCUS***
-  Continue broadband fibre deployment and IPTV service coverage expansion with increasing focus on growing FTTH footprint
-  Complete 4G LTE wireless network build and manage wirelessnetwork capacity

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		39
**2**
STRATEGIC IMPERATIVES

MD&A 
 
 **2.5** Achieve a competitive cost structure
**Cost containment is a core element of our financial performance. It remains a key factor in our objective to preserve steady margins as we continue to experience revenue declines in our legacy wireline voice and data services and further shift our product mix towards growth services. We aim to accomplish this through operating our business in the most cost-effective way possible to extract maximum operational efficiency and productivity gains.**

***2014 PROGRESS***
-  Maintained relatively stable Bell Wireline and consolidatedAdjusted EBITDA margins(1)compared to 2013
-  Reduced Bell Mobility call centre costs per customer by 30%since 2010 through investment in enhanced call centre systemsand online self-serve options for customers
-  Realized fully the cost synergies from the integration of Astralinto Bell Media
-  Continued to tightly manage travel and discretionary spending
-  Raised $1.25 billion in gross proceeds from public debt offerings thatlowered Bell Canada’s average after-tax rate of borrowing to 3.4%
- Completed the Privatization of Bell Aliant and began itsintegration into Bell’s operations, simplifying BCE’s corporate  structure and increasing overall operating and capital investment efficiencies, including wholesale cost savings, as we move Atlantic branches of major business customers onto the national Bell network

***2015 FOCUS***
-  Realize operating cost and capital expenditure synergiesfrom the integration of Bell Aliant into our Bell Wireline andBell Wireless segments
-  Deliver cost savings from cost of revenue initiatives, reductionsin sales, general and administrative expenses, and labourefficiencies across Bell to support maintenance of a stableconsolidated Adjusted EBITDA margin
 **2.6** Improve customer service
**Our objective is to enhance customers’ overall experience with Bell by delivering call centre efficiency, meeting commitments for the installation and timely repair of services, increasing network quality, and implementing process improvements to simplify customer transactions and interactions with our front-line employees and self-serve tools. All of these will help differentiate us from our competitors and gain long-term customer loyalty. We intend to achieve this by making the investments we need to improve our front-line service capabilities, our networks, our products and our distribution channels to win and keep customers.**

***2014 PROGRESS***
- Launched two new eBill features, the Personalized Bill Explainer and Mobility Bill Interactive Tour, to enhance the customer experience by proactively addressing the most common billing questions:   - Personalized Bill Explainer generates custom messaging onevery eBill to explain various bill components that are uniqueto each customer
  - Mobility Bill Interactive Tour provides an interactive tour tohelp customers better understand their bill the first time theylog into their account 
- Reduced customer calls to our service centres by 34%since 2011 through growing use of self-serve and improvedfirst-call resolution
- Reduced Fibe TV installation time by 10% in 2014 and 27% sincethe beginning of 2012
- Introduced two-hour appointment windows forFibe TV installations
- Introduced flexible evening and weekend repair and installationappointments for small business customers and reduced the timebetween ordering and installation from four days to two days
- Introduced Bell Tech Expert premium tech support, offering BellInternet customers setup, troubleshooting, training and optimization services for any connected device
- Launched Device Hub, a pilot program that integrates thein-store process with other Bell systems for a more seamlessrepair service
- Launched the Bell Business Concierge program, offering smallbusinesses front of the line access to dedicated advisors,customer service representatives and technical support whocan deliver faster, more tailored service
- Launched a Business Self-Serve portal to provide small businesscustomers with a secure, no-cost and easy way to manage theiraccount information, including the ability to view and pay billsanytime from anywhere they have an Internet connection, set uppre-authorized payments, download, save or print bills, accessaccount information and get customer service support from anonline agent

***2015 FOCUS***
- Invest over $100 million in customer service initiatives, simplifying complexity for all customers including billing   - In January 2015, began to introduce personalized videos for new Mobility customers that explain what to expect on the first bill, how to check usage and update phone features, and how to manage accounts through		**MyBell.ca**and the MyBell mobile app 
- Reduce total volume of wireline and wireless customer callsto our residential and wireless services call centres
- Further improve customer satisfaction scores
- Achieve better consistency in customer experience
- Improve customer personalization

 
(1)*Adjusted EBITDA margin is a non-GAAP financial measure and does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers. See section 10.2,*Non-GAAP financial measures and key performance indicators (KPIs) – Adjusted EBITDA and Adjusted EBITDA margin *for more details.*
 

40** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
PERFORMANCE TARGETS, OUTLOOK,ASSUMPTIONS AND RISKS

**3**
 
**3**  PERFORMANCE TARGETS, OUTLOOK, ASSUMPTIONS AND RISKS
**This section provides information pertaining to our performance against 2014 targets, our consolidated business outlook and operating assumptions for 2015 and our principal business risks.**
**3.1** 2014 performance vs. guidance targets
 
 **FINANCIAL 		GUIDANCE****2014 		TARGET****2014 		PERFORMANCE AND RESULTS****ACHIEVED**BELLRevenue growth2%–4%**3.5%**Increase reflected revenue growth of 6.7% at Bell Wireless and 14.9% at Bell Media, driven by the acquisition of Astral, moderated by a 0.6% decrease at Bell Wireline.
Adjusted EBITDA growth3%–5%**3.7%**Driven by the increased contribution of Bell growth services (wireless, TV, Internet/ other wireline broadband and media), which delivered a 5.5% year-over-year increase in revenues, outpacing the decline in traditional wireline voice services. This, together with tight operating cost control, drove a 10 basis point improvement in Adjusted EBITDA margin to 37.7%.
Capital intensity16%–17%**16.8%**Bell invested $3,142 million in new capital in 2014, an increase of 4.7% over 2013, corresponding to a capital intensity ratio of 16.8%. These investments supported the continued deployment of broadband fibre to homes and businesses to expand our Fibe TV service footprint and enable faster Internet speeds; the continuing roll-out of 4G LTE mobile service in markets across Canada; higher spending on network capacity to support increasing Internet bandwidth usage and mobile data consumption; and enhancements to our customer service delivery systems.
BCEAdjusted Net Earnings Per Share (Adjusted EPS)(1)$3.10–$3.20**$3.18**Increase in Adjusted net earnings reflected higher Adjusted EBITDA, driven by strong Bell Wireless and Bell Media Adjusted EBITDA growth of 9.6% and 7.5%, respectively, lower net pension financing cost and mark-to-market gains realized on equity derivatives used as economic hedges of share-based compensation and U.S. dollar purchases. This was partly offset by a 0.7% decrease in Bell Wireline Adjusted EBITDA, which represented a significant improvement in the pace of decline compared to 2013, and a net impairment charge, mainly in conventional TV, resulting from ongoing softness in the overall Canadian TV advertising market and higher content costs.
Free Cash Flow growth3%–7%**6.7%**Higher Free Cash Flow of $2,744 million in 2014 was driven by healthy Adjusted EBITDA growth partly offset by increased capital expenditures. With the Privatization of Bell Aliant on October 31, 2014, BCE’s Free Cash Flow in 2014 included two months of contribution from Bell Aliant, rather than cash dividends received from Bell Aliant.

 

**3.2** Business outlook and assumptions

**Outlook**

BCE’s 2015 outlook builds on the positive wireless and wireline momentum we delivered in 2014 and reflects continued progress in the execution of our six Strategic Imperatives to drive healthy projected revenues, Adjusted EBITDA, earnings and Free Cash Flow growth from operations, which is expected to support substantial capital investment programs in strategic network infrastructure and a higher BCE common share dividend for 2015.

The key 2015 operational priorities for Bell are to:
- Maintain market share momentum of incumbent postpaid subscriber activations, while managing the financial and churn impacts from unusual market activity that could result from the significantly increased number of customers with two- or three-year service contracts who will be eligible to renew their plans and change carriers over the next two years as a result  of the Wireless Code, to the extent that the CRTC’s June 3, 2015 Wireless Code application date is found to be valid
- Drive above industry-average wireless blended ARPU andAdjusted EBITDA growth
- Complete 4G LTE wireless network build and manage wirelessnetwork capacity
- Continue broadband fibre deployment with increasing focus onexpanding FTTH footprint
- Increase total net residential subscriber activations and drivegreater three-product household penetration through targetedbundle offers led by Fibe TV
- Deliver positive full-year wireline revenue and AdjustedEBITDA growth

 
(1)*Adjusted net earnings and Adjusted EPS are non-GAAP financial measures and do not have any standardized meaning under IFRS. Therefore, they are unlikely to be comparable to similar measures presented by other issuers. See section 10.2,*Non-GAAP financial measures and key performance indicators (KPIs) - Adjusted net earnings and Adjusted EPS *in this MD&A for more details, including reconciliation to the most comparable IFRS financial measures.*
 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		41
**3**
PERFORMANCE TARGETS, OUTLOOK,ASSUMPTIONS AND RISKS

MD&A 
 
-  Slow the pace of revenue and Adjusted EBITDA decline in ourBell Business Markets unit
-  Increase the scale of Bell Media’s new CraveTV on-demandTV streaming service
-  Control rising TV and multi-platform media content costs
-  Realize operating cost and capital expenditure synergiesfrom the integration of Bell Aliant into our Bell Wireline andBell Wireless operating segments
- Continue to drive customer service improvement while executing on cost reductions across the Bell organization to support healthy Adjusted EBITDA margins across all our businesses

Our planned financial performance for 2015 enabled the company to increase the annualized BCE common dividend by 13 cents, or 5.3%, to $2.60 per share, maintaining our payout ratio comfortably within our target policy range of 65% to 75% of Free Cash Flow.
 **Assumptions**
**ASSUMPTIONS ABOUT THE CANADIAN ECONOMY**
-  Slower economic growth, given the Bank of Canada’s mostrecent estimate for Canadian gross domestic product growthof approximately 2.1% in 2015, compared to estimatedgrowth of 2.3% in 2014
-  Weaker employment growth compared to 2014, as the overalllevel of business investment is expected to remain soft
-  Interest rates to remain largely unchanged in 2015 or slightlydecrease year-over-year

**MARKET ASSUMPTIONS**
-  A sustained level of wireline and wireless competition in bothconsumer and business markets
-  Higher, but slowing, wireless industry penetration andsmartphone adoption
-  A relatively stable media advertising market and escalatingcosts to secure TV programming
-  Industry pricing discipline maintained on a higher expectednumber of subscriber renewals resulting from the expiryof 2 or 3 year service contracts due to the Wireless Codeimplemented in 2013
 **3.3** Principal business risks
Provided below is a summary description of certain of our principal business risks that could have a material adverse effect on all of our segments. Certain additional business segment-specific risks are reported in section 5, *Business segment analysis*. For a detailed description of the risks relating to our regulatory environment and a description of the other principal risks that could have a material adverse effect on our business, refer to section 8, *Regulatory environment*, and section 9, *Business risks*, respectively.
 **Regulatory environment**
Although most of BCE’s wireline and wireless services are forborne from price regulation under the *Telecommunications Act*, the Government of Canada and its relevant departments and agencies, including the CRTC, Industry Canada, Canadian Heritage and the Competition Bureau, continue to play a significant role in telecommunications and broadcasting policy and regulation, such as spectrum auctions, approval of acquisitions, foreign ownership and broadcasting, and this may adversely affect our competitive position. The federal government may take positions against the telecommunications and media industries in general, or specifically against Bell Canada or certain of its subsidiaries. More precisely, the following are examples of regulatory matters that could have negative financial, operational, competitive and reputational consequences for our business:
-  Increasing regulatory and government intervention
-  Adverse changes in the Canadian regulatory framework, suchas the introduction of new regulatory standards, the increasingregulation of our wireless business, or other regulatory decisionscontrary to our business interests more generally
 **Competitive environment**
We face intense competition across all business segments and key product lines that could adversely affect our market shares, service volumes and pricing strategies and, consequently, our financial results. The rapid development of new technologies, services and products has altered the traditional lines between telecommunications, Internet and broadcasting services and brought new global competitors to our markets, which are redefining customer expectations. Technology substitution and IP networks, in particular, continue to reduce barriers to entry in our industry. This has allowed competitors to launch new products and services and gain market share with far less investment in financial, marketing, personnel and technological and network resources than has historically been required. In particular, some competitors sell their services through the use of our networks, without the need to invest to build their own networks. Such lower necessary investment has enabled some competitors to be very disruptive in their pricing. We expect these trends to continue in the future, which could adversely affect our growth and our financial performance.

The nature and degree of competition in all of our markets are constantly evolving with changing market and economic conditions as well as expansion into new business areas, such as media, that can be more cyclical. Competition can intensify as markets mature, market structure changes through vertical integration, the state of the economy impacts advertising and new competitors bring aggressive promotional offers and adjusted strategic brand positioning. BCE’s

 

42** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
PERFORMANCE TARGETS, OUTLOOK,ASSUMPTIONS AND RISKS

**3**
 

telecommunications and media network assets are challenged by changes such as the proliferation of cheaper IP-based communication, over-the-top (OTT) delivery mechanisms, cloud services and PVR technologies, and the influence of global brands. Such a competitive environment could negatively impact our business including, without limitation, in the following ways:
-  Wireline pricing pressures, product substitutions and spendingrationalization by business customers could result in anacceleration of NAS line erosion beyond our current expectations
- As wireless penetration in Canada reaches higher levels,acquiring new customers could become more difficult
- Competitors’ aggressive market offers could result in pricingpressures, and increased costs of acquisition and retention
- A fundamental separation of content and connectivity isemerging, allowing the expansion and market penetrationof low-cost OTT TV providers and other alternative serviceproviders, which is changing our TV and media ecosystemsand could affect our business negatively
- Programming costs continue to rise for TV providers

For a discussion of our competitive environment and competition risk, as well as a list of our main competitors, on a segmented basis, refer to *Competitive landscape and industry trends*and *Principal business risks*in section 5, *Business segment analysis*.
 **Economic and financial market conditions**
Our businesses are affected by general economic and financial market conditions, consumer confidence and spending, and the demand for and prices of our products and services. Adverse economic conditions, such as economic downturns or recessions, adverse conditions in the financial markets, or a declining level of retail and commercial activity, could have a negative impact on the demand for our wireline, wireless and media products and services.

More specifically, adverse economic and financial market conditions could result in:
-  Customers delaying or reducing purchases of our productsand services or discontinuing using them
-  A decrease in advertising revenues for our media businesses
-  A decline in the creditworthiness of our customers, which couldincrease our bad debt expense
 **Information security (cyber and other threats)**
Our operations, service performance and reputation depend on how well we protect our networks, systems, applications, data centres and electronic and physical records, and the business and personal information stored therein, against cyber attacks, unauthorized access or entry, damage from fire, natural disaster and other events referred to in section 9, *Business risks – Performance of critical infrastructure*. The protection and the effective organization of our systems, applications and information repositories are central to the secure operation of our networks and business as electronic and physical records of proprietary business and personal data, such as confidential customer and employee information, are all sensitive from a market and privacy perspective. In particular, cyber threats, which include cyber attacks such as, but not limited to, hacking, computer viruses, denial of service attacks, industrial espionage, unauthorized access to confidential, proprietary or sensitive information or other breaches of network or IT security, are constantly evolving and IT defences need to be constantly monitored and adapted. Vulnerabilities could harm our brand and reputation as well as our customer relationships and may lead to:
-  Network operating failures and service disruptions, whichcould directly impact our customers’ ability to maintain normalbusiness operations and deliver critical services
-  The theft, loss or leakage of confidential information, includingcustomer or employee information, that could result in financialloss, exposure to claims of damages by customers and employees,and difficulty in accessing materials to defend legal cases
-  The potential for loss of subscribers or impairment of our abilityto attract new ones
 **Complexity and service and operational effectiveness**
Business performance can be difficult in a complex multi-product environment with multiple technology platforms, billing systems, marketing databases and a myriad of rate plans, promotions and product offerings. In addition, our product offerings and related pricing plans may be too complex for customers to fully evaluate, while other service providers may benefit from simpler distribution models. Providing service that is consistently recognized by customers as superior is a differentiator. As the foundation of effective customer service stems from our ability to deliver simple solutions to customers in an expeditious manner, complexity in our operations may limit BCE’s ability to respond quickly to market changes and reduce costs. Complexity in our operations may also lead to customer confusion or billing errors which could adversely affect customer satisfaction, acquisition and retention.

Complexity and service and operational effectiveness challenges that could adversely affect BCE’s business, including our ability to efficiently manage networks, deliver services and control costs, include:
-  The integration of multiple technology platforms to support ourmulti-product strategy
-  The development of new technological platforms andassociated processes to support new business models anddelivery mechanisms
-  The increasing number of smartphone users and our growingBell Fibe TV customer base, which could require more supportfrom our customer contact centres than currently anticipated
-  The ability to leverage our electronic ecosystem to makecustomer interaction simpler and more efficient

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		43
**4**
CONSOLIDATED FINANCIAL ANALYSIS

MD&A 
 
**4** CONSOLIDATED FINANCIAL ANALYSIS
**This section provides detailed information and analysis about BCE’s performance in 2014 compared with 2013. It focuses on BCE’s consolidated operating results and provides financial information for each of our businesses. For further discussion and analysis of our Bell Wireless, Bell Wireline, Bell Media and Bell Aliant business segments, refer to section 5, *Business segment analysis*.**

**4.1** Introduction

**BCE consolidated income statements**

 **2014**** **2013  $ CHANGE  % CHANGE  
Operating revenues**21,042**** **20,400  642  3.1%
*Bell****18,734***** ***18,109*  *625*  *3.5**%*
*Bell Aliant****2,757***** ***2,759*  *(2**)**(0.1**%)*
*Inter-segment eliminations****(449******)****(468**)**19*  *4.1**%*
Operating costs**(12,739****)**(12,311)(428)(3.5%)
Adjusted EBITDA**8,303**** **8,089  214  2.6%
*Bell****7,066***** ***6,817*  *249*  *3.7**%*
*Bell Aliant****1,237***** ***1,272*  *(35**)**(2.8**%)*
Adjusted EBITDA margin**39.5****%**39.7%    (0.2%)
*Bell****37.7******%****37.6**%*    *0.1**%*
*Bell Aliant****44.9******%****46.1**%*    *(1.2**%)*
Severance, acquisition and other costs**(216****)**(406)190  46.8%
Depreciation**(2,880****)**(2,734)(146)(5.3%)
Amortization**(572****)**(646)74  11.5%
Finance costs** **** **            
Interest expense**(929****)**(931)2  0.2%
Interest on post-employment benefit obligations**(101****)**(150)49  32.7%
Other income (expense)**42**** **(6)48  n.m.  
Income taxes**(929****)**(828)(101)(12.2%)
**Net earnings****2,718**** **2,388  330  13.8%
Net earnings attributable to:** **** **            
Common shareholders**2,363**** **1,975  388  19.6%
Preferred shareholders**137**** **131  6  4.6%
Non-controlling interest**218**** **282  (64)(22.7%)
**Net earnings****2,718**** **2,388  330  13.8%
Adjusted net earnings attributable to common shareholders**2,524**** **2,317  207  8.9%
Net earnings per common share (EPS)**2.98**** **2.55  0.43  16.9%
**Adjusted EPS****3.18**** **2.99  0.19  6.4%
*n.m.: not meaningful*

BCE had a successful 2014, delivering revenue and Adjusted EBITDA growth of 3.1% and 2.6%, respectively, with a relatively stable year-over-year Adjusted EBITDA margin of 39.5% in 2014 compared to 39.7% in 2013, higher Adjusted net earnings growth of 8.9%, and a Free Cash Flow increase of 6.7%. This performance was driven by continued strong Bell Wireless results together with an improved Bell Wireline financial profile and a favourable contribution from Bell Media, which benefitted from the acquisition of Astral on July 5, 2013.

Net earnings in 2014 increased 13.8% compared to 2013, reflecting Adjusted EBITDA growth, a decrease in severance, acquisition and other costs and net mark-to-market gains realized on derivatives used as economic hedges of share-based compensation and U.S. dollar purchases, partly offset by higher net depreciation and amortization expense and a net impairment charge, mainly in conventional TV, resulting from ongoing softness in the overall Canadian TV advertising market and higher content costs.

Our earnings and Free Cash Flow supported increased capital investment in our strategic priorities, particularly our broadband wireless and wireline networks and services, which helped to drive higher wireless, TV and Internet subscribers, while supporting the return of value to BCE shareholders through higher dividends.

 

44** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
CONSOLIDATED FINANCIAL ANALYSIS

**4**
 
 **4.2** Customer connections
**TOTAL BCE CONNECTIONS**

 **2014**** **2013  % CHANGE  
Wireless subscribers**8,118,628**** **7,925,032  2.4%
*Postpaid****7,110,047***** ***6,798,093*  *4.6**%*
High-speed Internet subscribers**3,297,026**** **3,136,636  5.1%
TV (satellite and IPTV subscribers)**2,642,608**** **2,489,248  6.2%
*IPTV****933,547***** ***657,513*  *42.0**%*
**Total growth services****14,058,262**** **13,550,916  3.7%
Wireline NAS lines**7,130,852**** **7,595,569  (6.1%)
**Total services****21,189,114**** **21,146,485  0.2%
 
**BCE NET ACTIVATIONS**** **** **        
 **2014**** **2013  % CHANGE  
Wireless subscribers**193,596**** **220,608  (12.2%)
*Postpaid****311,954***** ***381,740*  *(18.3**%)*
High-speed Internet subscribers**160,390**** **91,401  75.5%
TV (Satellite and IPTV subscribers)**153,360**** **177,183  (13.4%)
*IPTV****276,034***** ***286,195*  *(3.6**%)*
**Total growth services****507,346**** **489,192  3.7%
Wireline NAS lines**(464,717****)**(540,740)14.1%
**Total services****42,629**** **(51,548)n.m.  
*n.m.: not meaningful*

BCE added 507,346 net new customer connections to its growth services in 2014, up 3.7% year over year. This was comprised of:
-  311,954 postpaid wireless customers, partly offset by the net lossof 118,358 prepaid wireless customers
-  160,390 high-speed Internet customers
-  153,360 TV customers, including 276,034 net new IPTV customers

NAS net losses of 464,717 in 2014 improved 14.1% compared to last year.

Total BCE customer connections across all services grew 0.2% in 2014, reflecting an increase of 3.7% in growth services connections along with a moderating decline in legacy wireline NAS lines of 6.1% compared to last year. At the end of 2014, BCE customer connections totalled 21,189,114 and were comprised of the following:
-  8,118,628 wireless subscribers, up 2.4%, which included7,110,047 postpaid wireless subscribers, an increase of 4.6% sincethe end of last year
-  3,297,026 high-speed Internet subscribers, 5.1% higheryear over year
-  2,642,608 total TV subscribers, up 6.2%, which included933,547 IPTV customers, up 42.0% year over year
-  7,130,852 total NAS lines, a decline of 6.1% compared to last year
 **4.3** Operating revenues
 

 

 

 **2014**** **2013  $ CHANGE  % CHANGE  
Bell Wireless**6,241**** **5,849  392  6.7%
Bell Wireline**10,040**** **10,097  (57)(0.6%)
Bell Media**2,937**** **2,557  380  14.9%
Inter-segment eliminations**(484****)**(394)(90)(22.8%)
Bell**18,734**** **18,109  625  3.5%
Bell Aliant**2,757**** **2,759  (2)(0.1%)
Inter-segment eliminations**(449****)**(468)19  4.1%
**Total BCE operating revenues****21,042**** **20,400  642  3.1%
 

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		45
**4**
CONSOLIDATED FINANCIAL ANALYSIS

MD&A 
 

**BCE**

Total operating revenues for BCE were up 3.1% in 2014 due to higher revenues at Bell. Bell Aliant revenues were essentially unchanged compared to 2013

**BELL**
-  Bell operating revenues increased 3.5% in 2014, due to higherrevenues at both Bell Wireless and Bell Media, which included thefavourable impact from the acquisition of Astral. This was partlyoffset by lower revenues at Bell Wireline.
-  Operating revenues for Bell in 2014 were comprised of servicerevenues of $17,133 million, which were 3.8% higher than in 2013,and product revenues of $1,601 million, which were essentiallyunchanged compared to last year

***BELL WIRELESS***

Revenue growth of 6.7% in 2014 was driven by:
-  A larger postpaid customer base and growth in blended ARPUattributable to higher average monthly rates and greater datausage consistent with an increased smartphone customer mix aswell as increased usage of data applications
-  Wireless service and product revenues increased 6.4% and 11.8%respectively, compared to 2013

***BELL WIRELINE***

Revenues decreased 0.6% in 2014, which reflected:
- Continued declines in legacy voice and data revenues, competitive pricing in the business and wholesale markets, and decreased product sales to business customers and at The Source

This was partly offset by:
- Higher Internet and TV service revenues in 2014, as well as growth in IP connectivity and business service solutions revenues

*BELL MEDIA*

Revenue growth of 14.9% in 2014 reflected:
-  The acquisition of Astral on July 5, 2013
-  Higher subscriber fee revenues driven by increasedmarket-based rates for Bell Media’s specialty services

This was partly offset by:
- Lower advertising revenues, due to general softness in the advertising market and a shift in advertising dollars to the broadcaster of the Sochi 2014 Winter Olympic Games and 2014 FIFA World Cup Soccer

**BELL ALIANT**

Revenues were essentially unchanged compared to 2013, decreasing 0.1%, as continued declines in local and access, and long distance revenues, as well as reduced equipment and other revenues, were mostly offset by growth in Internet, TV, and other IP broadband connectivity service revenues

 
 **4.4** Operating costs
 

 

 **2014**** **2013  $ CHANGE  % CHANGE  
Bell Wireless**(3,677****)**(3,509)(168)(4.8%)
Bell Wireline**(6,272****)**(6,303)31  0.5%
Bell Media**(2,203****)**(1,874)(329)(17.6%)
Inter-segment eliminations**484**** **394  90  22.8%
Bell**(11,668****)**(11,292)(376)(3.3%)
Bell Aliant**(1,520****)**(1,487)(33)(2.2%)
Inter-segment eliminations**449**** **468  (19)(4.1%)
**Total BCE operating costs****(12,739****)**(12,311)(428)(3.5%)
 
(1)*Cost of revenues includes costs of wireless devices and other equipment sold, network and content costs, and payments to other carriers.*(2)*Labour costs (net of capitalized costs) include wages, salaries, and related taxes and benefits, post-employment benefit plans service cost, and other labour costs, including contractor and outsourcing costs.*(3)*Other operating costs include marketing, advertising and sales commission costs, bad debt expense, taxes other than income taxes, IT costs, professional service fees and rent.*
 

46** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
CONSOLIDATED FINANCIAL ANALYSIS

**4**
 

**BCE**

Total operating costs increased 3.5% in 2014, driven by higher operating costs at Bell compared to 2013, due mainly to the acquisition of Astral, as well as an increase in operating costs at Bell Aliant

**BELL**

Total Bell operating costs increased 3.3% in 2014, reflecting higher operating costs in our Bell Wireless and Bell Media segments, partly offset by lower operating costs at Bell Wireline

***BELL WIRELESS***

The 4.8% increase in operating costs over the previous year was driven by:
-  Higher investment in customer retention spending driven by anincreased number of smartphone upgrades
-  Higher payments to other carriers from greater datausage volumes
-  Increased network operating costs attributable to LTE networkexpansion and usage

This was moderated by:
- Decreased labour costs due to reduced customer call volumes, lower bad debt expense, and a decline in wireless content costs

***BELL WIRELINE***

Operating costs decreased $31 million or 0.5% in 2014, reflecting:
-  Lower cost of goods sold, driven by reduced data product andequipment sales
-  Reduced bad debt expense
-  Lower post-employment benefit plans service cost resultingfrom a higher discount rate used in 2014 compared to 2013 tovalue post-employment benefit obligations
-  Reduced labour costs driven mainly by lower call volumes

Additionally, the year-over-year decrease reflected a charge recorded in Q1 2013 relating to a CRTC decision with respect to our wholesale high-speed access services business that did not recur this year.

The year-over-year decrease in operating costs was partly offset by higher programming costs for Bell TV driven by a higher number of subscribers, increased costs to support a larger Fibe TV and Internet subscriber base, and greater payments to other carriers, as well as increased marketing and sales costs.

***BELL MEDIA***

Operating costs increased 17.6% in 2014, as a result of:
-  The acquisition of Astral
-  Increased costs for sports broadcast rights

This was partly offset by:
- Cost synergies realized from the integration of Astral into Bell Media in 2014

**BELL ALIANT**

Operating costs increased 2.2% in 2014 due to:
-  Higher IPTV content costs
-  Increased customer service costs related to growing andsupporting customers on Bell Aliant’s FibreOP services

This was offset in part by:
-  Negotiated reductions in payments to other carriers
-  Ongoing workforce restructuring
-  Lower post-employment benefit plans service costs from ahigher discount rate used in 2014 compared to 2013 to valuepost-employment benefit obligations

 
 **4.5** Adjusted EBITDA
 

 

 **2014**** **2013  $ CHANGE  % CHANGE  
Bell Wireless**2,564**** **2,340  224  9.6%
Bell Wireline**3,768**** **3,794  (26)(0.7%)
Bell Media**734**** **683  51  7.5%
Bell**7,066**** **6,817  249  3.7%
Bell Aliant**1,237**** **1,272  (35)(2.8%)
Total BCE Adjusted EBITDA**8,303**** **8,089  214  2.6%
 

**BCE**

Adjusted EBITDA increased 2.6% in 2014, with an Adjusted EBITDA margin of 39.5% compared to 39.7% in 2013. The year-over-year increase in Adjusted EBITDA reflected growth at Bell, partly offset by decreased Adjusted EBITDA at Bell Aliant.

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		47
**4**
CONSOLIDATED FINANCIAL ANALYSIS

MD&A 
 

**BELL**

Bell’s Adjusted EBITDA increased 3.7% in 2014, driven by:
-  Strong Bell Wireless Adjusted EBITDA growth that was partly offset by slightly lowerBell Wireline Adjusted EBITDA compared to 2013
-  Our acquisition of Astral on July 5, 2013, which contributed to higher Bell MediaAdjusted EBITDA

Bell’s Adjusted EBITDA margin in 2014 remained relatively stable at 37.7%, compared to 37.6% in 2013. This reflected:
-  The flow-through impact of higher year-over-year wireless ARPU
-  Lower wireline voice erosion and stabilizing year-over-year businessmarkets performance
-  Increasing Fibe TV scale and growth in three-product households
-  Lower wireline operating costs

This was partly offset by:
-  Increased wireless customer retention spending
-  Higher costs to support a larger Fibe TV and Internet subscriber base
-  A greater percentage of lower margin media revenues in Bell’s revenue mixdue to the Astral acquisition

***BELL WIRELESS***

Bell Wireless Adjusted EBITDA grew 9.6% in 2014, as a result of:
-  Higher operating revenues, driven by a larger postpaid customerbase and higher ARPU
-  Disciplined subscriber acquisition and retention spending

***BELL WIRELINE***

Bell Wireline’s Adjusted EBITDA decline of 0.7% in 2014 was driven mainly by:
-  The ongoing loss of high-margin voice and legacy data revenues
-  Competitive pricing pressure in our business andwholesale markets

This was mitigated in part by: 
- Growth in Internet and TV revenues
- Reduced post-employment benefit plans service cost

***BELL MEDIA***

Bell Media Adjusted EBITDA growth of 7.5% in 2014 reflected:
- The incremental financial contribution from the acquisition of Astral on July 5, 2013

This was offset in part by:
- Higher TV content costs primarily for our specialty TV sports properties

**BELL ALIANT**

Bell Aliant’s Adjusted EBITDA declined 2.8% in 2014 as a result of:
-  Increased operating costs, reflecting higher expenses related togrowing its FibreOP services
-  Higher TV content costs due to IPTV customer growth
 **4.6** Severance, acquisition and other costs
*This category includes various income and expenses that are not related directly to the operating revenues generated during the year.*

**2014**

Severance, acquisition and other costs included:
-  Severance costs related to voluntary and involuntary workforce reduction initiativesof $82 million
-  Acquisition and other costs of $134 million, including severance and integration costsrelating to the Privatization of Bell Aliant as well as transaction costs, such as legal andfinancial advisory fees, related to completed or potential acquisitions

**2013**

Severance, acquisition and other costs included:
-  Severance costs related to voluntary and involuntary workforce reduction initiativesof $116 million
-  Acquisition and other costs of $290 million, primarily related to the acquisition of Astral,including $230 million relating to the CRTC tangible benefit obligation that we wereordered to pay over seven years to benefit the Canadian broadcasting system

 

48** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
CONSOLIDATED FINANCIAL ANALYSIS

**4**
 
 **4.7** Depreciation and amortization
*The amount of our depreciation and amortization in any year is affected by:*
-  *How much we invested in new property,**plant and equipment and intangible**assets in previous years*
-  *How many assets we retired during**the year*
-  Estimates of the useful lives of assets

**DEPRECIATION**

Depreciation in 2014 increased $146 million compared to 2013 due to a higher depreciable asset base as we continued to invest in our broadband and wireless networks, as well as our IPTV service. Depreciation was further increased by accelerated depreciation as a result of a reduction in useful lives of certain network assets, as described in section 10.1, *Our accounting policies – Critical accounting estimates and key judgements,*and our acquisition of Astral on July 5, 2013.

**AMORTIZATION**

Amortization in 2014 decreased $74 million compared to 2013, due mainly to an increase in useful lives of certain IT software assets from five to seven years, as described in section 10.1, *Our accounting policies – Critical accounting estimates and key judgements*, partly offset by a higher net asset base and increased amortization from our acquisition of Astral on July 5, 2013.
 **4.8** Finance costs
**INTEREST EXPENSE**

Interest expense in 2014 decreased $2 million compared to 2013 as a result of higher capitalized interest and lower average interest rates, partly offset by higher average debt levels primarily related to our acquisition of Astral and the Privatization of Bell Aliant.

**INTEREST ON POST-EMPLOYMENT BENEFIT OBLIGATIONS**

*Interest on our post-employment benefit obligations is based on market conditions that existed at the beginning of the year.*

In 2014, interest expense decreased $49 million compared to last year due to a lower post-employment benefit obligation as a result of the higher discount rate, which increased from 4.4% on January 1, 2013 to 4.9% on January 1, 2014.

The impacts of changes in market conditions during the year are recognized in other comprehensive income (OCI).

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		49
**4**
CONSOLIDATED FINANCIAL ANALYSIS

MD&A 
 
 **4.9** Other income (expense)
*Other income (expense) includes income and expense, such as:*
-  *Net mark-to-market gains or losses on derivatives used as**economic hedges*
- *Net gains or losses on investments, including gains or losses**when we dispose of, write down or reduce our ownership**in investments*
- Impairment of assets
- *Losses on disposal and retirement of software, plant**and equipment*
- Interest income on cash and cash equivalents
- *Equity income (loss) from investments in associates and**joint ventures*
- Early debt redemption costs

**2014**

Other income included net mark-to-market gains of $134 million on derivatives used as economic hedges of share-based compensation and U.S. dollar purchases, dividend income of $42 million from earnings generated in trust prior to the divestiture of Bell Media assets held for sale and foreign exchange gains in 2014. These were partly offset by a net impairment charge of $105 million, mainly relating to Bell Media’s conventional TV properties resulting from a softness in the overall Canadian TV advertising market and higher TV content costs, losses on disposal of software, plant and equipment of $51 million, and early debt redemption costs of $29 million.

**2013**

Other expense included early debt redemption costs of $55 million, losses on disposal and retirement of capital assets of $44 million and an equity loss of $32 million, which included our $25 million share of a goodwill impairment charge and a write-down of customer relationship intangibles recognized by an equity investee. These expenses were partly offset by net mark-to-market gains of $94 million on derivatives used as economic hedges of share-based compensation and U.S. dollar purchases and a distribution of a $36 million pension surplus.
 **4.10** Income taxes
Income taxes in 2014 increased $101 million compared to 2013 due to higher taxable income in 2014 and the lower value of uncertain tax positions favourably resolved in 2014 compared to 2013.

Our effective tax rate remained relatively stable at 25.5% in 2014 compared to 25.7% in 2013.

 

50** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
CONSOLIDATED FINANCIAL ANALYSIS

**4**
 
 **4.11** Net earnings and EPS
Net earnings attributable to common shareholders in 2014 increased $388 million, or $0.43 per common share, due to higher Adjusted EBITDA, lower severance, acquisition and other costs, lower NCI due to the Privatization of Bell Aliant and higher other income, partly offset by higher income taxes and higher net depreciation and amortization expense.

Excluding the impact of severance, acquisition and other costs, net gains (losses) on investments, and early debt redemption costs, Adjusted net earnings in 2014 were $2,524 million, or $3.18 per common share, compared to $2,317 million, or $2.99 per common share in 2013.
 **4.12** Capital expenditures
BCE capital expenditures were up $146 million, or 4.1%, in 2014, reflecting higher spending at Bell, and a modest increase at Bell Aliant. As a percentage of revenue, capital expenditures for BCE were 17.7% compared to 17.5% in 2013. These investments supported further expansion of our Fibe TV service footprint in Québec and Ontario and Bell Aliant’s FibreOP footprint in Atlantic Canada, the deployment of broadband fibre to directly connect more homes and businesses, the roll-out of 4G LTE mobile service in additional markets across Canada, as well as continued spending to increase network capacity to support greater data consumption and higher LTE speeds.
 **4.13** Cash flows
In 2014, BCE’s cash flows from operating activities decreased $235 million compared to 2013, as a result of a $350 million voluntary DB pension plan contribution made in 2014 and higher income taxes paid, partly offset by higher Adjusted EBITDA and an improvement in working capital.

Free Cash Flow available to BCE’s common shareholders increased $173 million in 2014, driven mainly by higher Adjusted EBITDA and an improvement in working capital, partly offset by higher income taxes paid and increased capital expenditures.

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		51
**5**
BUSINESS SEGMENT ANALYSISBELL WIRELESS

MD&A 
 
**5 **BUSINESS SEGMENT ANALYSIS
**5.1** Bell Wireless
*In 2014, we achieved industry-leading profitability through disciplined postpaid customer acquisition and retention, increasing ARPU by driving higher smartphone adoption and mobile data usage, and reducing customer churn.*
**Key elements of relevant strategic imperatives**

**ACCELERATE WIRELESS**

***2014 PROGRESS***
-  Acquired 35% and 46% of total new postpaid gross and netactivations, respectively, among the three major wirelesscarriers, while achieving leading ARPU and Adjusted EBITDAgrowth of 4.9% and 9.6%, respectively, as well as service marginexpansion of 1.3 percentage points over 2013
-  Expanded the number of smartphone users at the end of 2014to 76% of our total postpaid subscribers, up from 73% at the endof 2013
-  Expanded our leading smartphone lineup with over 40 new devices,adding to our extensive selection of 4G LTE-capable devices
-  Announced an agreement to acquire Glentel, a Canadian-baseddual-carrier, multi-brand mobile products distributor, of whichwe expect to retain a 50% ownership interest, to maintain Bell’scompetitive position by securing long-term access to Glentel’seffective wireless retail distribution network
-  Launched a secure mobile payment solution, RBC Wallet, withRBC in January 2014, and announced three additional partnerships during the year with, TD Canada Trust, CIBC and DesjardinsGroup, to launch similar secure mobile payment solutions
-  Continued to reduce the cost of mobile roaming in the countriesCanadians travel to the most
-  Introduced Easy Purchase Plan, an instalment program for tabletpurchases for existing Bell Mobility customers, allowing them tospread a portion of the cost of a new tablet over two years whenpaired with a tablet plan

***2015 FOCUS***
-  Profitably grow our wireless postpaid subscriber base whilemaintaining market share momentum of incumbent postpaidsubscriber activations
-  Narrow our ARPU gap versus incumbent competitors
- Manage the financial and churn impacts from unusual marketactivity that could arise from the significantly increased numberof customers with two- or three-year service contracts whowill be eligible to renew their plans or change carriers over thenext two years as a result of the Wireless Code implementedin 2013, to the extent that the CRTC’s June 3, 2015 Wireless Codeapplication date is found to be valid
- Offer the latest handsets and devices in a timely mannerto enable customers to benefit from ongoing technologicalimprovements by manufacturers and from faster data speedsto optimize the use of our services
- Accelerate new revenuestreams by driving the commercialization of next-generation mobile commerce and M2M servicesand applications

**INVEST IN BROADBAND NETWORKS AND SERVICES**

***2014 PROGRESS***
-  Expanded our next-generation 4G LTE wireless network to reach86% of the Canadian population coast to coast
-  Increased mobile 4G LTE network speeds by up to 45% across ourentire service footprint
-  Acquired 31 licences for 480 million MHz-POP of nationwide700 MHz spectrum for $566 million following Industry Canada’sfederal wireless spectrum auction
-  Launched Canada’s first 700 MHz spectrum LTE network inHamilton, Ontario in early April
-  Launched 4G LTE mobile service in 52 communities in AtlanticCanada and in seven communities in the Northwest Territories

***2015 FOCUS***
- Complete 4G LTE wireless network build and manage wireless network capacity

**ACHIEVE A COMPETITIVE COST STRUCTURE**

***2014 PROGRESS***
- Reduced Bell Mobility call centre costs per customer by 30% since 2010 through investment in enhanced call centre systems and online self-serve options for customers

***2015 FOCUS***
-  Realize operating cost and capital expenditure synergiesfrom the integration of Bell Aliant into our Bell Wireline andBell Wireless segments
-  Deliver cost savings from cost of revenue initiatives, reductionsin sales, general and administrative expenses, and labourefficiencies across Bell to support maintenance of a stableconsolidated Adjusted EBITDA margin

 

52** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
BUSINESS SEGMENTANALYSISBELL WIRELESS
**5**
 

**IMPROVE CUSTOMER SERVICE**

***2014 PROGRESS***
-  Launched two new eBill features, the Personalized Bill Explainerand Mobility Bill Interactive Tour, to enhance the customerexperience by proactively addressing the most commonbilling questions
-  Reduced customer calls to our service centres by 34%since 2011 through growing use of self-serve and improvedfirst call resolution

***2015 FOCUS***
- Invest in customer service initiatives, simplifying complexity for all customers including billing   - In January 2015, began to introduce personalized videos for new Mobility customers that explain what to expect on the first bill, how to check usage and update phone features, and how to manage accounts through		**MyBell.ca**and the MyBell mobile app 
- Reduce total volume of wireless customer calls to our wireless services call centres
 **Financial performance analysis**
**2014 PERFORMANCE HIGHLIGHTS**

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		53
**5**
BUSINESS SEGMENTANALYSISBELL WIRELESS
MD&A 
 

**BELL WIRELESS RESULTS**

***REVENUES***

 **2014**** **2013  $ CHANGE  % CHANGE  
Service**5,705**** **5,362  343  6.4%
Product**483**** **432  51  11.8%
Total external revenues**6,188**** **5,794  394  6.8%
Inter-segment revenues**53**** **55  (2)(3.6%)
**Total Bell Wireless revenues****6,241**** **5,849  392  6.7%
**Bell Wireless operating revenues** increased 6.7% in 2014 as a result of both higher service and product revenues compared to 2013.
-  **Service revenues** were up 6.4% in 2014, driven by a greaternumber of postpaid subscribers in our customer base andblended ARPU growth attributable to higher average monthlyrates and increased data usage, reflecting higher smartphonepenetration and usage of data applications, as well as broader4G LTE network coverage and increased network speeds. Theyear-over-year growth in service revenues was moderated by

lower wireless voice revenues, due mainly to the prevalence of unlimited nationwide talk plans and substitution for data applications.
-  Bell Wireless data revenues in 2014 were 22.2% higher comparedto 2013, whereas wireless voice revenues declined 4.5%
-  **Product revenues** increased 11.8% in 2014, reflecting a greaternumber of higher-end smartphone devices in our sales mix andan increased number of handset upgrades compared to 2013

***OPERATING COSTS AND ADJUSTED EBITDA***

 **2014**** **2013  $ CHANGE  % CHANGE  
Operating costs**(3,677****)**(3,509)(168)(4.8%)
**Adjusted EBITDA****2,564**** **2,340  224  9.6%
**Total Adjusted EBITDA margin****41.1****%**40.0%    1.1%
**Service Adjusted EBITDA margin****44.9****%**43.6%    1.3%
 

**Bell Wireless operating costs** increased 4.8% in 2014 as a result of:
-  Higher investment in customer retention spending due to agreater number of subsidized smartphone upgrades
-  Higher payments to other carriers due to greater datausage volume
-  Increased network operating costs attributable to LTE networkexpansion and usage

These factors were partly offset by:
- Decreased labour costs reflecting reduced customer call volumes, lower bad debt expense, and lower content expenses in 2014

Subscriber acquisition costs in 2014 were largely stable compared to last year, reflecting fewer year-over-year gross activations and pricing discipline.

**Bell Wireless Adjusted EBITDA** grew 9.6% in 2014, driven by higher operating revenues, as described above, and well-controlled operating costs. As a result of the higher flow-through of revenues to Adjusted EBITDA, Bell Wireless Adjusted EBITDA margin, based on wireless service revenues, expanded to 44.9% in 2014 from 43.6% in 2013.

***BELL WIRELESS OPERATING METRICS***

 **2014**** **2013  CHANGE  % CHANGE  
Blended ARPU ($/month)**60.07**** **57.25  2.82  4.9%
Gross activations**1,614,364**** **1,694,055  (79,691)(4.7%)
*Postpaid****1,271,599***** ***1,332,423*  *(60,824**)**(4.6**%)*
*Prepaid****342,765***** ***361,632*  *(18,867**)**(5.2**%)*
Net activations**192,368**** **217,768  (25,400)(11.7%)
*Postpaid****308,504***** ***378,121*  *(69,617**)**(18.4**%)*
*Prepaid****(116,136******)****(160,353**)**44,217*  *27.6**%*
Blended churn % (average per month)**1.52****%**1.60%    0.08%
*Postpaid****1.22******%****1.25**%*    *0.03**%*
*Prepaid****3.43******%****3.55**%*    *0.12**%*
Subscribers(1)**7,970,702**** **7,778,334  192,368  2.5%
*Postpaid****6,986,196***** ***6,677,692*  *308,504*  *4.6**%*
*Prepaid****984,506***** ***1,100,642*  *(116,136**)**(10.6**%)*
Cost of acquisition (COA) ($/subscriber)**443**** **421  (22)(5.2%)
 
(1)*In 2013, our postpaid subscriber base was reduced by 99,098 customers to exclude all M2M subscribers following a review of our wireless subscriber metrics. Additionally, our postpaid subscriber base was reduced by 18,354 subscribers to adjust for customer deactivations and by 8,022 subscribers subsequent to a review of customer accounts. Our prepaid subscriber base was increased by 5,008 customers subsequent to a review of subscriber metrics.*
 

54** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
BUSINESS SEGMENTANALYSISBELL WIRELESS
**5**
 

**Blended ARPU** of $60.07 reflects an increase of 4.9% in 2014. This was due to higher postpaid ARPU driven by growth in data usage attributable to a higher proportion of customers using smartphones combined with increased traffic on our 4G LTE network, higher rates from the new two-year rate plan pricing that came into effect in the third quarter of 2013 following the implementation of the Wireless Code, and a higher percentage of postpaid customers in our subscriber base. This was partly offset by lower year-over-year voice ARPU as customers continue to substitute voice with data services.
-  **Data ARPU** increased 20.5% in 2014, due mainly to rate planincreases and disciplined pricing, together with an increasedadoption of smartphones and other data devices such astablets, which are driving greater use of e-mail, web browsing,social networking, text messaging, mobile TV, and picture andvideo messaging, as well as entertainment services such asvideo streaming, music downloads and gaming. In addition, theroll-out of increased 4G LTE network speeds in August 2014 alsocontributed to the growth in data ARPU. The year-over-yeargrowth in data ARPU was moderated by the impact of richerrate plans with higher data usage thresholds and lower roamingrates, as well as increased use of Wi-Fi hotspots by customers.
-  **Voice ARPU** declined 5.9% in 2014, reflecting more customerson all-inclusive plans offering unlimited local and long distancecalling, competitive pricing pressures, and lower overall voiceusage as customers increasingly substitute voice services fordata features and services

**Total gross wireless activations** decreased 4.7% in 2014, due to lower postpaid and prepaid gross activations.
- **Postpaid gross activations** declined 4.6% in 2014, reflecting theimpact of increased rate plan pricing in the first half of the yeardriven by the move from three-year to two-year contractsresulting from the implementation of the Wireless Code, coupledwith a maturing wireless market. The year-over-year decreasein postpaid gross activations was moderated by the favourableimpact of the Apple iPhone 6 launch in September 2014 as wellas strong activations over the holiday period compared to theprevious year, and higher tablet activations reflecting the launchof Bell Mobility’s Easy Purchase Plan, an instalment program fortablet purchases, in the third quarter of 2014.
- **Prepaid gross activations** decreased 5.2% in 2014, due to ourcontinued focus on postpaid customer acquisitions
- **Smartphone users** as a percentage of postpaid subscribersincreased to 76% at December 31, 2014 compared to 73% at theend of 2013

**Blended wireless churn** improved 0.08 percentage points in 2014 to 1.52%, reflecting improvements in both postpaid and prepaid churn. This was attributed to a greater percentage of postpaid subscribers in our total subscriber base compared to last year as postpaid customers typically have a lower churn rate than prepaid customers.
-  **Postpaid churn** improved 0.03 percentage points in 2014 to1.22%, despite aggressive promotions from other incumbentsand newer entrants and increased activity from the AppleiPhone 6 launch, reflecting the positive impact of our customerretention strategy
-  **Prepaid churn** improved 0.12 percentage points in 2014 to3.43% as a result of marketing initiatives that resulted in fewercustomer deactivations compared to 2013

**Postpaid net activations** decreased 18.4% in 2014, due to the combined impact of lower gross activations and a higher number of customer deactivations.

**Prepaid net customer losses** improved 27.6% in 2014 as a result of fewer customer deactivations, partly offset by lower gross activations.

**Wireless subscribers** at December 31, 2014 totalled 7,970,702 representing an increase of 2.5% since the end of 2013. The proportion of Bell Wireless customers subscribing to postpaid service increased to 88% in 2014 from 86% last year.

**COA** per gross activation in 2014 increased $22 over last year to $443, due to a higher mix of postpaid customer activations and the sale of more premium smartphones.

**Retention costs** as a percentage of service revenue increased to 11.0% in 2014 compared to 10.3% in 2013, as a result of a greater number of subsidized customer upgrades coupled with an increased mix of more expensive smartphone models.
 **Competitive landscape and industry trends**
**COMPETITIVE LANDSCAPE**

The wireless market is the largest sector of the Canadian telecommunications industry, representing 47% of total revenues, and is currently growing at a mid-single digit rate annually.

There are nearly 29 million wireless subscribers in Canada. The three large national incumbents, Bell, TELUS Corporation (TELUS) and Rogers, account for over 90% of industry subscribers and revenues. Rogers holds the largest share by virtue of its legacy global system for mobile (GSM) network. However, Bell has recaptured significant subscriber market share, as well as the largest proportion of industry revenue and Adjusted EBITDA growth since 2009, helped by the launch of our HSPA+ and 4G LTE networks, expanded retail distribution, the purchase of Virgin Mobile, a refreshed brand, improved customer service and a new management team with extensive experience in the Canadian wireless industry.

Canada’s wireless penetration was approximately 81% at the end of 2014, compared to over 100% for the U.S. and up to 182% in Europe. Canada’s wireless sector is expected to continue growing at a steady pace for the foreseeable future, driven by the increased adoption and usage of data services, and the expansion of 4G LTE service in the more rural and remote regions of Canada enabled through the deployment of 700 MHz spectrum.

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		55
**5**
BUSINESS SEGMENTANALYSISBELL WIRELESS
MD&A 
 

***Competitors***

Large facilities-based national wireless service providers Rogers and TELUS.

Smaller regional facilities-based wireless service providers Saskatchewan Telecommunications Holding Corporation (SaskTel) and Manitoba Telecom Services Inc. (MTS Mobility).

Newer entrants in their respective service areas:
-  Vidéotron Ltée (Vidéotron), which provides service in Montréaland other parts of Québec
-  WIND Mobile, which provides service in Toronto, Calgary,Vancouver, Edmonton, Ottawa, as well as in several communitiesin southwestern Ontario
-  Mobilicity(1), which provides wireless service in Toronto, Ottawa,Vancouver, Calgary and Edmonton
-  EastLink, which launched service in Nova Scotia andPrince Edward Island in February 2013

Mobile virtual network operators (MVNOs), who resell competitors’ wireless networks such as PC Mobile and Primus Telecommunications Canada Inc. (Primus).

 
(1)*Data & Audio Visual Enterprises Wireless Inc. (DAVE), carrying on business under the Mobilicity brand, has been operating under Companies’ Creditors Arrangement Act protection since September 2013.*(2)*Percentages may not add to 100 due to rounding.*(3)*TELUS metrics shown exclude Public Mobile Inc. (acquired on November 29, 2013)*
 

56** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
BUSINESS SEGMENTANALYSISBELL WIRELESS
**5**
**INDUSTRY TRENDS**

***ACCELERATING DATA CONSUMPTION***

Wireless industry revenue growth continues to be driven by the increased adoption and usage of data services. In 2014, wireless data ARPU in Canada represented approximately 50% of industry blended ARPU, compared to 44% in 2013. Data growth continued to be driven by the ongoing adoption of smartphones and tablets, and associated data plans. The demand for wireless data services is expected to continue to grow, due to ongoing investment in faster network technologies such as 4G LTE that provide a richer user experience, the growing appetite for mobile connectivity and social networking, greater affordability and selection of smartphones and tablets and increasing adoption of multiple devices by families. Greater customer adoption of services, including mobile TV, mobile commerce, mobile banking, and other M2M applications in the areas of retail and transportation (connected car, asset tracking, remote monitoring) should also contribute to growth. In the consumer market, M2M is projected to be a future growth area for the industry as wireless connectivity on everyday devices from home automation to cameras becomes ubiquitous.

***NEED FOR MORE WIRELESS SPECTRUM AND CARRIER AGGREGATION***

Fast growth in mobile data traffic is increasingly putting a strain on wireless carriers’ networks and their ability to manage and service this traffic. Industry Canada’s 700 MHz spectrum auction that concluded in February 2014 provided wireless carriers with prime spectrum to roll out faster next-generation wireless networks and build greater capacity, especially in rural areas. In addition, Industry Canada held, on March 3, 2015, the AWS-3 spectrum auction and, in April 2015 will hold the 2500 MHz spectrum auction, providing other opportunities for Bell and other wireless carriers to acquire additional spectrum to enhance their LTE networks and meet the demand of both urban and rural markets. Furthermore, carrier aggregation (specifically, 4G LTE Advanced CA) is a technology currently being employed by Canadian wireless carriers (and which is expected to be used more extensively in the future) that allows for multiple spectrum channels to be used together, thereby significantly increasing capacity and data transfer rates.

***GREATER SPENDING ON CUSTOMER RETENTION***

As wireless penetration in Canada increases at a continued high level of competitive intensity, even greater focus will be required on improving customer service, enhancing existing service offerings and spending more to retain existing customers through discounted handset upgrades. In particular, as a result of the Wireless Code implemented in 2013, which has limited wireless terms to two years from three years, there is the potential for unusually high market activity from the significantly greater number of customers who will be eligible to renew their plans or change carriers over the next two years.
 **Business outlook and assumptions**
**2015 OUTLOOK**

We expect continued revenue growth driven by a greater number of postpaid subscribers, accelerating data usage from smartphone customers and higher rate plans for two-year contracts. We will seek to achieve higher revenues from data growth, delivered through our HSPA+ and 4G LTE networks, higher demand for services such as web browsing, music and video streaming and community portals such as Facebook and YouTube, as well as new services including mobile commerce and other M2M applications. Our intention is to introduce these new products and services to the market in a way that balances innovation with profitability.

Three-year contracts established before the Wireless Code came into effect and a new wave of two-year contracts will expire in 2015, to the extent that the CRTC’s June 3, 2015 Wireless Code application date is found to be valid, leading to a higher level of activity across the Canadian wireless industry. This highlights the critical importance of our continual focus on improving customer satisfaction and increasing investment in customer retention. We plan to generate Bell Wireless Adjusted EBITDA growth in 2015 from increasing revenues, which is expected to be moderated by higher activation and retention spend driven by market activity.

**ASSUMPTIONS**
-  Higher, but slowing, Canadian wireless industry penetrationand smartphone adoption
-  Sustained level of competition in both consumer andbusiness markets
- Maintained Bell’s market share momentum of incumbent wirelesspostpaid subscriber activations
- Continued adoption of smartphone devices, tablets and dataapplications, as well as the introduction of more 4G LTE devicesand new data services
- Our ability to monetize increasing data usage and customersubscription to new data services
- Convergence of three-year and two-year plan expiries leadingto an increase in the number of subscribers who are eligiblefor upgrades
- Higher subscriber acquisition and retention spending, drivenby a greater number of year-over-year gross additions andcustomer device upgrades
- Higher than industry-average blended ARPU and AdjustedEBITDA growth, driven by a greater mix of postpaid smartphonecustomers and accelerating data consumption on the 4G LTEnetwork, and higher access rates on new two-year contracts
- Completion of the LTE network expected to cover 98% of theCanadian population
- Ongoing technological improvements by handset manufacturersand from faster data network speeds that allow customers tooptimize the use of our services
- Industry pricing discipline maintained on a higher expectednumber of subscriber renewals resulting from the expiry of 2 or3 year service contracts due to the Wireless Code of Conductimplemented in 2013
- No material financial, operational or competitive consequencesof changes in regulations affecting our wireless business

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		57
**5**
BUSINESS SEGMENTANALYSISBELL WIRELESS
MD&A 
 
 **Key growth drivers**-  Increasing Canadian wireless industry penetration
-  Continued adoption of two-year rate plans
-  Increasing adoption of smartphones, tablets and other 4G LTE devices to increase mobile data usage
-  Expansion of 4G LTE network service in non-urban markets
-  Customer adoption of new data applications and services such as M-commerce and M-banking
 **Principal business risks**
This section discusses certain principal business risks which specifically affect the Bell Wireless segment. For a detailed description of the principal risks that could have a material adverse effect on our business, refer to section 9, *Business risks*.

**AGGRESSIVE COMPETITION**

***RISK***
-  The intensity of competitive activity from incumbent wireless operators, newer wireless entrants, non-traditional players and resellers 

***IMPACT***
-  Pressure on our Adjusted EBITDA, ARPU and COA and retention, as well as increased churn, would likely result if competitors aggressively increase discounts for handsets and data or offer other incentives (such as new data plans or multi-product bundles) to attract new customers 

 
**REGULATORY ENVIRONMENT**

***RISK***
-  Greater regulation of wholesale mobile wireless services and limitations placed on spectrum bidding 

***IMPACT***
-  Greater regulation of wholesale mobile wireless services on matters such as roaming rates, mandated tower and site sharing, and the resale of other wholesale services, combined with limitations placed on bidding for new spectrum, could limit our flexibility, influence the market structure, improve the business positions of our competitors, and negatively impact the financial performance of our mobile wireless business 

 
**WIRELESS CODE**

***RISK***
-  Operating through the Wireless Code transition period may bring increased uncertainty in the consumer wireless market 

***IMPACT***
-  During 2015, to the extent that the CRTC’s June 3, 2015 Wireless Code application date is found to be valid, customers on three-year contracts that were established before the Wireless Code came into effect and customers on new two-year plans could potentially create unusual market activity as their contracts expire, driving higher expiries and higher transaction volumes. This could result in Adjusted EBITDA pressure and higher industry churn 

 
 

58** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
BUSINESS SEGMENTANALYSISBELL WIRELINE
**5**
 
 **5.2** Bell Wireline
 
*In 2014, Bell Wireline achieved improved year-over-year financial performance, with positive revenue and Adjusted EBITDA growth in Q4, driven by an increased mix of growth services and improving business markets results.*
**Key elements of relevant strategic imperatives**

**LEVERAGE WIRELINE MOMENTUM**

***2014 PROGRESS***
-  Increased our total number of Bell Fibe TV subscribers by 46.1%to 700,533
-  Increased the number of three-product households – those thatbuy TV, Internet and Home Phone – by 15% over 2013, fuelled byour Fibe TV service, which drove higher pull-through attach ratesfor Home Phone and Internet services, with 77% of all Bell Fibe TVcustomers taking three products
-  Launched the Home Hub Internet modem and Wi-Fi router,featuring the latest 802.11 AC wireless standard
-  Launched Business Bundles, which include services such asunlimited Fibe Internet, phone lines with calling features andonline security, with guaranteed pricing for 36 months

***2015 FOCUS***
-  Continue to enhance our Fibe TV service In February 2015, we introduced an innovative Fibe TV feature called Restart, enabling customers to rewind and watch TV shows already in progress from the beginning. In addition, we further enhanced the Fibe TV on-screen menu and channel guide with fast access to the main menu from anywhere in the Fibe TV experience, a larger channel preview window, a Last Peek feature that shows picture-in-picture for the last 5 channels tuned, and an improved universal search.
 
- Expand our total base and market share of TV and Internetsubscribers profitably
- Continue to reduce total wireline residential net losses
- Increase residential household ARPU through greaterthree-product household penetration
- Increase share of wallet of large enterprise customersthrough greater focus on business service solutions andconnectivity growth
- Expand and improve sales distribution and coverage in ourmid-sized business segment
- Increase the number of net new customer relationships inboth large and mid-sized business and reduce small businesscustomer losses
- Complete the integration of Bell Aliant to generate operatingcost and capital investment synergies

**INVEST IN BROADBAND NETWORKS AND SERVICES**

***2014 PROGRESS***
-  Extended our Fibe TV service coverage to reach more than5 million households across Ontario and Québec, up fromapproximately 4.3 million at the end of 2013. IncludingBell Aliant’s FibreOP service area, BCE’s total IPTV footprint nowcovers 6 million homes, up from 5.1 million at the end of 2013,including 2.1 million passed with FTTH.
-  Began the deployment of an FTTH network that will bringadvanced Bell Fibe TV and Internet services to Kingston, Ontario

***2015 FOCUS***
- Continue broadband fibre deployment and IPTV service coverage expansion with increasing focus on growing FTTH footprint

**ACHIEVE A COMPETITIVE COST STRUCTURE**

***2014 PROGRESS***
-  Maintained relatively stable Bell Wireline Adjusted EBITDAmargin compared to 2013
-  Completed the Privatization of Bell Aliant and began itsintegration into Bell’s operations, simplifying BCE’s corporatestructure and increasing overall operating and capital investment efficiencies, including wholesale cost savings, as we moveAtlantic branches of major business customers onto the nationalBell network

***2015 FOCUS***
-  Realize operating cost and capital expenditure synergiesfrom the integration of Bell Aliant into our Bell Wireline andBell Wireless segments
-  Deliver cost savings from cost of revenue initiatives, reductionsin sales, general and administrative expenses, and labourefficiencies across Bell to support maintenance of a stableconsolidated Adjusted EBITDA margin

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		59
**5**
BUSINESS SEGMENTANALYSISBELL WIRELINE
MD&A 
 

**IMPROVE CUSTOMER SERVICE**

***2014 PROGRESS***
-  Reduced customer calls to our service centres by 34%since 2011 through growing use of self-serve and improvedfirst-call resolution
-  Reduced Fibe TV installation time by 10% in 2014and 27% since the beginning of 2012
-  Introduced two-hour appointment windowsfor Fibe TV installations
- Introduced flexible evening and weekend repair and installationappointments for small business customers and reduced the timebetween ordering and installation from four days to two days
- Launched Device Hub, a pilot program that integrates thein-store process with other Bell systems for a more seamlessrepair service
- Launched the Bell Business Concierge program, offering smallbusinesses front-of-the-line access to dedicated advisors,customer service representatives and technical support who candeliver faster, more tailored service

***2015 FOCUS***
-  Invest in customer service initiatives, simplifying complexity forall customers including billing
-  Reduce total volume of wireline customer calls to our residentialservices call centres
-  Further improve customer satisfaction scores
-  Achieve better consistency in customer experience
-  Improve customer personalization
 **Financial performance analysis**
**2014 PERFORMANCE HIGHLIGHTS**

 

60** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
BUSINESS SEGMENTANALYSISBELL WIRELINE
**5**
 

**BELL WIRELINE RESULTS**

***REVENUES***

 **2014**** **2013  $ CHANGE  % CHANGE  
Data**5,991**** **5,828  163  2.8%
Local and access**2,364**** **2,497  (133)(5.3%)
Long distance**668**** **722  (54)(7.5%)
Equipment and other**664**** **707  (43)(6.1%)
Total external revenues**9,687**** **9,754  (67)(0.7%)
Inter-segment revenues**353**** **343  10  2.9%
**Total Bell Wireline revenues****10,040**** **10,097  (57)(0.6%)
 

**Bell Wireline operating revenues** decreased 0.6% in 2014 as a result of lower local and access, long distance, and equipment and other revenues, partly offset by higher data revenues. This represents a slower pace of decline compared to the 1.2% year-over-year decrease in 2013, reflecting further Fibe TV and Fibe Internet subscriber base growth, slowing voice revenue erosion, price increases across all residential services, and improved year-over-year Bell Business Markets performance.
- **Data revenues** increased 2.8% in 2014, reflecting increasedInternet and TV service revenues driven by Fibe customergrowth, greater customer demand for higher bandwidth Internetservice, and price increases across all of our residential services.Additionally, higher IP broadband connectivity revenuesgenerated by our business and wholesale customers, as well asincreased business service solutions sales, contributed to thegrowth in data revenues. This was partly offset by a continueddecline in basic legacy data revenues from ongoing customermigration to IP-based systems, pricing pressures in our businessand wholesale markets, and reduced levels of business dataproduct sales compared to last year.
- **Local and access revenues** declined 5.3% in 2014, which represented an improvement over the 7.1% year-over-year decline in2013. The decline in 2014 was driven by the ongoing loss of residential and business NAS lines due to technological substitutionto wireless and Internet-based services, large business customerconversions to IP-based data services and networks from legacyvoice services, as well as competitive pricing pressures in 2014in our business and wholesale markets. However, the rate oflocal and access revenue erosion was tempered by increasesin monthly local rates combined with fewer residential NAS linelosses compared to 2013.
- **Long distance revenues** decreased 7.5% in 2014, representingimproved performance over the previous year’s decline of9.9%. The decrease in 2014 reflected fewer minutes of use byresidential customers as a result of NAS line losses, technologysubstitution to wireless and OTT Internet-based services, andongoing rate pressures in our business and wholesale markets.Residential price increases and higher sales of internationallong distance minutes in our wholesale market moderated theyear-over-year decline.
- **Equipment and other revenues** decreased 6.1% in 2014, due tolower consumer electronics equipment sales at The Source anddecreased business voice equipment sales

***OPERATING COSTS AND ADJUSTED EBITDA***

 **2014**** **2013  $ CHANGE  % CHANGE  
Operating costs**(6,272****)**(6,303)31  0.5%
**Adjusted EBITDA****3,768**** **3,794  (26)(0.7%)
**Adjusted EBITDA margin****37.5****%**37.6%    (0.1%)
 

**Bell Wireline operating costs** were $31 million lower in 2014 compared to last year as a result of:
-  Lower cost of goods sold consistent with decreasedequipment sales
-  Lower labour costs resulting from a reduction in call volumes
-  Decreased bad debt expense
-  Reduced post-employment benefit plans service cost resultingfrom a higher discount rate used in 2014 compared to 2013 tovalue post-employment benefit obligations
-  A charge recorded in Q1 2013 related to a CRTC decision inrespect of our wholesale high-speed access services businessthat did not recur this year

These factors were partly offset by:
- Higher payments to other carriers in our business and wholesale markets driven by increased volumes
- Higher programming costs for Bell TV due to a higher numberof subscribers
- Increased costs to support a larger Fibe TV and Internetsubscriber base
- Higher marketing and sales expense

**Bell Wireline Adjusted EBITDA** was 0.7% lower in 2014, while Adjusted EBITDA margin of 37.5% remained stable in 2014 compared to 37.6% in 2013. The year-over-year decrease in Bell Wireline Adjusted EBITDA was due to:
-  The ongoing loss of higher-margin legacy voice and dataservice revenues
-  Ongoing competitive pricing pressures in our business andwholesale markets
-  Lower consumer electronic sales at The Source, dueto a competitive marketplace which resulted in lower traffic

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		61
**5**
BUSINESS SEGMENTANALYSISBELL WIRELINE
MD&A 
 

This was largely offset by:
-  Growth in our Internet and IPTV businesses
-  Reduced post-employment benefit plans service cost

This result for 2014 represents an improvement over the 3.2% Adjusted EBITDA decline reported for Bell Wireline in 2013 due to:
-  Stronger data revenue growth driven by increased scale in ourTV and Internet businesses
-  A slowing voice revenue decline
-  Improved business market performance
-  Lower year-over-year operating costs

***BELL WIRELINE OPERATING METRICS***

**Data**

**High-speed Internet**

 **2014**** **2013  CHANGE  % CHANGE  
High-speed Internet net activations**102,946**** **57,722  45,224  78.3%
High-speed Internet subscribers**2,287,489**** **2,184,543  102,946  4.7%
 

**High-speed Internet subscriber net activations** in 2014 increased 78.3%, or 45,224, to 102,946. This represents our highest number of annual net activations since 2007. The growth in high-speed Internet net activations in 2014 was driven by the pull-through of Bell Fibe TV customer activations, higher wholesale customer gains, and lower residential customer churn. Lower residential churn can be attributed to a higher percentage of subscribers on higher-speed fibre-based Internet service due to an expanding IPTV footprint, which typically has a lower customer churn rate compared to subscribers on DSL service.

**High-speed Internet subscribers** at December 31, 2014 totalled 2,287,489, up 4.7% from the end of 2013.

**TV**

 **2014**** **2013  CHANGE  % CHANGE  
Net subscriber activations**98,452**** **122,450  (23,998)(19.6%)
Fibe TV**221,103**** **231,132  (10,029)(4.3%)
Total subscribers**2,376,885**** **2,278,433  98,452  4.3%
Fibe TV**700,533**** **479,430  221,103  46.1%
 

**Fibe TV subscriber net activations** decreased by 4.3% or 10,029 to 221,103 compared to 2013, due to aggressive offers for service bundles from the cable competitors, which impacted both deactivations and gross activations. The year-over-year decrease in Fibe TV net activations also reflected less IPTV footprint expansion compared to the previous year, as well as the benefit in the previous year from the launch of wireless receivers.

**Satellite TV net customer losses** of 122,651 were 12.9% higher in 2014, mainly as a result of a lower number of retail activations driven by aggressive offers from cable TV competitors in our service areas where Fibe TV is not available, coupled with lower wholesale activations due to the roll-out of IPTV service by competing wholesale providers in Western and Atlantic Canada.

**Total TV net subscriber activations** (Fibe TV and Satellite TV combined) decreased 19.6%, or 23,998, to 98,452 as a result of lower Fibe TV and Satellite TV net activations compared to 2013.

**Fibe TV subscribers** at December 31, 2014 totalled 700,533, up 46.1% from 479,430 subscribers reported at the end of 2013.

**Satellite TV subscribers** at December 31, 2014 totalled 1,676,352, down 6.8% from 1,799,003 subscribers at the end of 2013.

**Total TV subscribers** (Fibe TV and Satellite TV combined) at December 31, 2014 equalled 2,376,885, representing a 4.3% increase since the end of 2013.

**Local and access**

 **2014**** **2013  CHANGE  % CHANGE  
**NAS LINES**** **** **            
Residential**2,435,471**** **2,652,429  (216,958)(8.2%)
Business**2,457,765**** **2,589,820  (132,055)(5.1%)
**Total****4,893,236**** **5,242,249  (349,013)(6.7%)
**NAS NET LOSSES**** **** **            
Residential**(216,958****)**(287,885)70,927  24.6%
Business**(132,055****)**(114,805)(17,250)(15.0%)
**Total****(349,013****)**(402,690)53,677  13.3%
 

 

62** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
BUSINESS SEGMENTANALYSISBELL WIRELINE
**5**
 

**NAS net losses** improved 13.3%, or by 53,677 lines, in 2014, reflecting fewer residential NAS losses, offset in part by higher business access line losses.

**Residential NAS net losses** were 24.6%, or 70,927 lines, fewer in 2014 than in 2013. The year-over-year improvement reflected the pull-through impact of our Fibe TV service bundle offers, as well as reduced rate of residential NAS turnover in our Fibe TV service areas that reflect the operational benefit of continued IPTV footprint expansion in helping to drive greater NAS customer retention through the acquisition of three-product households. The improvements in residential NAS net losses were moderated by ongoing wireless and Internet-based technology substitution for local services.

**Business NAS net losses** increased 15.0% or by 17,250 lines in 2014 compared to 2013. The year-over-year increase was the result of higher deactivations among large business market customers due to ongoing customer conversion of voice lines to IP-based and wireless services, the deactivation of excess dial-up ports given the customer shift to high-speed fibre Internet access from older technologies, and the removal of a greater number of public payphones. Additionally, the relatively low level of new business formation and employment growth in the economy has resulted in continued soft demand for new access line installations.

**The annualized rate of NAS erosion** in our customer base decreased to 6.7% in 2014 from 7.1% in 2013, reflecting improvements in the rate of erosion for residential NAS as a result of fewer line losses. At December 31, 2014, we had 4,893,236 NAS lines, compared to 5,242,249 at the end of 2013.
 **Competitive landscape and industry trends**
**COMPETITIVE LANDSCAPE**

The financial performance of the overall Canadian wireline telecommunications market in recent years has been impacted by continued declines in legacy voice service revenues resulting from technological substitution to wireless and OTT services, as well as by ongoing conversion to IP-based data services and networks by large business customers. Aggressive competition from cable companies also continues to erode traditional telephone providers’ market share of residential local telephony. Canada’s four largest cable companies had nearly 4.3 million telephony subscribers at the end of 2014, representing a national residential market share of 43%, up two percentage points from 2013.

Competition for residential local and long distance services comes primarily from substitution to wireless services, including our own Bell Mobility and Virgin Mobile offerings. Approximately 25% of households in Ontario and Québec are estimated to be wireless only.

In 2014, cable companies continued to increase the speeds of their Internet offerings while promoting aggressive customer acquisition offers. At the end of the year, the four largest cable companies had 6.1 million Internet subscribers, representing 55% of the total Internet market, while incumbent local exchange carriers (ILECs) held the remaining 45% or 5.0 million subscribers. Although the residential Internet market is maturing, with approximately 81% penetration across Canada, subscriber growth is expected to continue over the next several years.

ILECs offering IPTV service grew their subscriber base by 24% in 2014 to 2.0 million customers driven by expanded network coverage, enhanced service offerings, and marketing and promotions focused on IPTV. This growth came at the expense of Canada’s four largest cable companies, which saw their TV market share in 2014 decline two percentage points to 59%.

*Competitors*

Cable TV providers offering cable TV, Internet and cable telephony services, including:
-  Rogers in Ontario
-  Vidéotron in Québec
-  Cogeco Cable Inc. (a subsidiary ofCogeco Inc.) (Cogeco) in Ontarioand Québec
-  Shaw Communications Inc. (Shaw) inBritish Columbia, Alberta, Saskatchewan,Manitoba and Ontario
-  Shaw Direct, providing DTH satellite TVservice nationwide
-  EastLink in every province exceptSaskatchewan, where it does not providecable TV and Internet service

ILECs TELUS and MTS provide local, long distance and IPTV services in various regions, as well as wholesale products and services across Canada.

Various others (such as Vonage Canada (a division of Vonage Holdings Corp.) (Vonage) and Primus) that offer resale or Voice over Internet Protocol (VoIP)-based local, long distance and Internet services.

OTT voice and video services such as Skype, Netflix and iTunes.

Digital media streaming devices such as Apple TV and Roku.

Business voice and data services:
- Other Canadian ILECs and cable TV operators

Substitution to wireless services, including those offered by Bell

ICT solutions:
-  Systems integratorssuch as CGI Group Inc.,EDS (a division of HP Enterprise Services)and IBM
-  Outsourcers and professionalservice firms

Wholesale competitors include cable operators, domestic CLECs, U.S. or other international carriers for certain services, and electrical utility-based telecommunications providers.

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		63
**5**
BUSINESS SEGMENTANALYSISBELL WIRELINE
MD&A 
 

**INDUSTRY TRENDS**

***INVESTMENT IN BROADBAND FIBRE DEPLOYMENT***

In recent years, ILECs have made substantial investments in deploying FTTN and FTTH within their territories. These investments have enabled the delivery of IPTV service in order to better compete with cable TV offerings in urban areas. IPTV is considered a superior video product to traditional cable TV, given innovative features such as a next-generation user interface, wireless receivers and Restart, which enables customers to rewind and watch TV shows already in progress from the beginning. FTTN enables speeds of up to 25 Mbps, which can be doubled to 50 Mbps with pair bonding, while FTTH delivers broadband speeds of up to 175 Mbps, higher than any other technology. Going forward, ILECs are expected to maintain high levels of capital spending, primarily for the ongoing expansion of their broadband fibre networks, with an increasing emphasis on FTTH deployment.

***WIRELESS SUBSTITUTION***

Wireless substitution is the most significant driver of residential NAS losses and voice revenue declines for telecommunication companies. Wireless-only households were estimated to represent approximately 25% of households in Canada at the end of 2014, compared to approximately 44% in the U.S. Wireless substitution has been increasing at a faster rate in the U.S. than in Canada, due to structural differences as well as economic disparities. To mitigate the impact of wireless substitution, wireline service providers have been packaging voice services with Internet and TV and offering discounted triple-play bundles. Wireless substitution is expected to continue to steadily increase in 2015.

***ALTERNATIVE TV SERVICES***

The growing popularity of watching TV anywhere is expected to continue as customers adopt services that enable them to view content on multiple screens, including computers, smartphones and tablets, as well as on their TVs. OTT content providers are competing for share of viewership. To date, these OTT services have largely complemented existing TV services. However, to mitigate the threat of video substitution, TV and Internet service providers have launched customer-authenticated on-demand TV streaming services that provide programming content over mobile and Wi-Fi networks to smartphones, tablets and computers. Additionally, sports and live event programming are important differentiators for traditional TV providers as they face increasing competition from OTT content providers. As OTT offers become more compelling and consumers demand greater flexibility in choosing the content most relevant to them, the disconnection of and reduction in spending for traditional TV continues to rise. While this trend is increasing, it is anticipated that growth in Internet subscriptions and Internet-only households will help to offset the decline in TV as OTT video increases the value proposition of broadband.

***BUSINESS CUSTOMER ADOPTION OF IP-BASED SERVICES***

The convergence of IT and telecommunications, facilitated by the ubiquity of IP, continues to shape competitive investments for business customers. Telecommunications companies are providing professional and managed services, as well as other IT services and support, while IT service providers are bundling network connectivity with their software as service offerings. In addition, manufacturers continue to bring all-IP and converged (IP plus legacy) equipment to market, enabling ongoing migration to IP-based solutions. The development of IP-based platforms, which provide combined IP voice, data and video solutions, creates potential cost efficiencies that compensate, in part, for reduced margins resulting from the continuing shift from legacy to IP-based services. The evolution of IT has created significant opportunities for Bell Business Markets, such as cloud services and data hosting, that can have greater business impact than traditional telecommunications services.

 
 

 

64** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
BUSINESS SEGMENTANALYSISBELL WIRELINE
**5**
 
 **Business outlook and assumptions**
**2015 OUTLOOK**

We expect positive full-year revenue and Adjusted EBITDA growth for our Bell Wireline segment in 2015. This is predicated on continued year-over-year improvement in residential wireline net activations, as we leverage our growing IPTV footprint to drive greater three-product household penetration, higher broadband and TV market share, as well as fewer residential NAS customer losses attributable to targeted retention and service bundle offers as well as a continued high pull-through rate from Bell’s Fibe TV and Bell Aliant’s FibreOP TV services.

Increased TV net subscriber acquisition is expected through higher projected customer adoption of Fibe TV as we further extend our IPTV broadband fibre footprint, primarily in areas of Ontario and Québec. We also intend to seek greater penetration within the multiple-dwelling units (MDU) market and capitalize on our extensive retail distribution network and to leverage our market leadership position in high-definition (HD) programming and on-demand streaming services to drive incremental subscriber growth and higher revenue per customer.

Internet subscriber acquisition is expected to improve in 2015 through increased fibre coverage as we leverage the speed and reliability of our broadband Internet network to drive greater IPTV expansion and Internet attach rates. This is expected to have an associated positive impact on ARPU growth and customer churn.

Residential wireline revenues in 2015 are also anticipated to benefit from price increases implemented in the previous year, which followed similar pricing actions by our cable competitors, a higher volume of customer promotion expiries, as well as the positive impact of product enhancements to our Fibe TV service.

In our Bell Business Markets unit, leveraging our expanded fibre footprint to grow broadband connectivity and related business data services should moderate economy-related and competitive market challenges, as well as continued customer migration to IP-based systems and lead to a slower rate of decline in this unit’s revenue and Adjusted EBITDA results compared to 2014. We will seek to minimize the overall decline in revenues from legacy voice and data services through ongoing service innovation and product value enhancements. We intend to target marketing initiatives to slow NAS erosion while investing in new solutions in key portfolios such as Internet and private networks, data centre and cloud services, unified communications, and security services. We will continue to deliver network-centric managed and professional services solutions to large business and public sector clients that increase the value of connectivity services. We expect to experience continued competitive intensity in our small and mid-sized business segments as cable operators and other telecom competitors continue to intensify their focus on the business segment. We also intend to introduce service offerings that help drive innovative solutions and value for our small and mid-sized customers by leveraging Bell’s network assets, broadband fibre expansion and service capabilities to expand our relationships with them. We will maintain a focus on overall profitability by seeking to increase revenue per customer and customer retention, as well as through improving our processes to achieve further operating efficiencies and productivity gains.

Operating cost reduction will continue to be a key focus, helping to offset costs related to growth in IPTV and Internet subscribers, the ongoing erosion of high-margin wireline voice revenues and other legacy revenues, as well as competitive repricing pressures in our business and wholesale markets. This, combined with further service-level improvements and operating synergies from the integration of Bell Aliant within the Bell Wireline segment, is expected to support our objective of maintaining our consolidated Adjusted EBITDA margin stable year over year.

We also aim to continue investing significantly in broadband infrastructure and fibre expansion and upgrades to support our IPTV and residential Internet services, as well as new business solutions in key portfolios such as Internet and private networks, data centre and cloud services, unified communications and security services. We intend to pursue pricing methods that allow us to cover the capital costs of upgrading the network, providing new services and expanding capacity to meet growing data consumption.

**ASSUMPTIONS**
-  Positive full-year revenue and Adjusted EBITDA growth
-  IPTV contributing to TV and broadband Internet market sharegrowth, as well as fewer residential NAS losses, resulting in feweryear-over-year total wireline residential net customer lossesand higher penetration of three-product households
-  Increasing wireless and Internet-based technological substitution
-  Residential services ARPU growth from increased penetrationof three-product households, promotion expiries andprice increases
-  Aggressive residential service bundle offers from cable TVcompetitors in our local wireline areas
-  Improving year-over-year rate of decline in Bell BusinessMarkets revenue and Adjusted EBITDA
-  Continued large business customer migration toIP-based systems
-  Ongoing competitive reprice pressures in our business andwholesale markets
-  Continued competitive intensity in our small and mid-sizedbusiness segments as cable operators and other telecom competitors continue to intensify their focus on the business segment
-  New broadband fibre deployment expected to be largelyFTTH/fibre-to-the-premise (FTTP)
-  Growing consumption of OTT TV services and on-demandstreaming video, projected growth in TV Everywhere as wellas the proliferation of devices, such as tablets, that consumevast quantities of bandwidth, will require considerable ongoingcapital investment
-  No material financial, operational or competitive consequencesof changes in regulations affecting our wireline business

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		65
**5**
BUSINESS SEGMENTANALYSISBELL WIRELINE
MD&A 
 
 **Key growth drivers**-  Increasing Fibe TV penetration of IPTV households reached
-  Higher market share of industry TV and Internet subscribers
-  Greater penetration of three-product households
- Faster pace of economic expansion and employment growthdriving increased business customer spending, new businessformation and higher demand for connectivity and otherprofessional and managed services
- Expansion of our customer relationships to drive higher revenueper customer
- Ongoing service innovation and product value enhancements
- Improved customer retention
 **Principal business risks**
This section discusses certain principal business risks which specifically affect the Bell Wireline segment. For a detailed description of the principal risks that could have a material adverse effect on our business, refer to section 9, *Business risks*.

**AGGRESSIVE COMPETITION**

***RISK***
-  The intensity of competitive activity from incumbent operators, cable companies, non-traditional players and wholesalers 

***IMPACT***
-  Aggressive offers could lead to higher churn, increased retention expenses and use of promotional competitive offers to keep customers, all of which would put pressure on Bell Wireline’s Adjusted EBITDA 

 
**REGULATORY ENVIRONMENT**

***RISK***
-  Regulatory review of wholesale services framework 

***IMPACT***
-  The potential for mandating new high-speed services such as FTTP could improve the business position of our competitors and negatively impact the financial performance of our wireline business and our incentives to invest 

 
**TV SUBSCRIBERS PENETRATION**

***RISK***
-  The traditional TV viewing model (i.e., subscription for bundled channels) is challenged by an increasing number of viewing options available in the market offered by traditional, non-traditional and global players, as well as by the potential regulatory requirement to sell unbundled channels 

***IMPACT***
-  TV subscribers and penetration coulddecline as a result of broadcasting distribution undertakings’ (BDUs) offeringsand an increasing number of domesticand global unregulated OTT providersBDUs may offer smaller and/or lessexpensive packaging options toattract subscribersThe proliferation of IP-based products,including OTT content offerings, mayaccelerate the disconnection of TVservices or the reduction of TV spending
 
 

66** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
BUSINESS SEGMENTANALYSISBELL MEDIA
**5**
 
 **5.3** Bell Media
 
*Bell Media delivered consistently strong ratings across its TV and radio properties in 2014, while generating higher revenues, Adjusted EBITDA and cash flow that reflected the financial contribution from the acquisition of Astral.*
**Key elements of relevant strategic imperatives**

**EXPAND MEDIA LEADERSHIP**

***2014 PROGRESS***
-  Maintained CTV’s #1 ranking as the most-watched networkin Canada for the 13th year in a row, and continued to leadwith a majority of the Top 20 programs nationally in allkey demographics
-  Expanded TSN, Canada’s sports leader and the leading specialtyTV network in the country, from two to five national feeds,fully leveraging Bell Media’s unparalleled portfolio of premiumsports programming
-  In December 2014, Bell Media concluded a multi-year broadcastrights agreement with UEFA, making TSN and RDS the primaryCanadian broadcasters of the crown jewels of club soccer – theUEFA Champions League and UEFA Europa League – beginningin 2015
-  Concluded a multi-year agreement with the Formula One group,providing TSN and RDS with exclusive multi-platform mediarights to all Grand Prix races through to 2019
-  Concluded a comprehensive media rights agreement with theUnited States Golf Association for exclusive Canadian coverageof the U.S. Open on TSN and RDS through to 2022
-  Launched CraveTV SVOD TV streaming service, offering thelargest collection of premium content in one place on STBs,mobile devices and online
-  Acquired the exclusive Canadian multi-platform rights, includingSVOD, to HBO’s off-air catalogue of TV programming, complementing a multi-year, multi-platform agreement that will seeHBO Canada exclusively deliver the entire past-season library ofevery HBO-scripted series currently on air
-  Expanded TV Everywhere offerings with the launch of TSN GOand Super Écran GO

***2015 FOCUS***
-  Maintain strong audience levels and ratings across all TV andradio properties
-  Reinforce industry leadership in conventional TV, pay TV,sports media and radio
-  Grow viewership and scale of new CraveTV on-demandTV streaming service
-  Develop in-house production and content creation fordistribution and use across all platforms and screens
-  Expand live and on-demand content through TV Everywhere services
-  Grow French media properties
-  Leverage cross-platform and integrated sales and sponsorship
-  In support of the above focus areas, in January 2015, Bell Mediaconcluded a long-term content licensing and trademark agreement to bring the Showtime brand to Canada for the first time

**ACHIEVE A COMPETITIVE COST STRUCTURE**

***2014 PROGRESS***
- Realized fully the cost synergies from the integration of Astral into Bell Media

***2015 FOCUS***
- Continue to drive cost efficiencies to help partially offset revenue and content cost pressures

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		67
**5**
BUSINESS SEGMENTANALYSISBELL MEDIA
MD&A 
 
 **Financial performance analysis**
**2014 PERFORMANCE HIGHLIGHTS**

**BELL MEDIA RESULTS**

***REVENUES***

 **2014**** **2013  $ CHANGE  % CHANGE  
Total external revenues**2,642**** **2,342  300  12.8%
Inter-segment revenues**295**** **215  80  37.2%
**Total Bell Media revenues****2,937**** **2,557  380  14.9%
 

**Bell Media revenues** grew 14.9% in 2014, due primarily to the acquisition of Astral on July 5, 2013, which contributed to growth in overall advertising and subscriber fee revenues in the first half of the year.

**Advertising revenues** in 2014, excluding Astral, decreased year-over-year, despite growth in full-day audience levels reflecting:
-  General market softness
-  A shift in advertising dollars to the main broadcaster ofthe Sochi 2014 Winter Olympic Games and 2014 FIFA WorldCup Soccer
-  Increased spending for online services
-  Lower digital advertising revenues due to continued shift ofadvertising dollars to global players like Google and Facebook

Despite the above pressures, revenues increased year-over-year in our specialty sports services, TSN and RDS, due to the strength of our programming as well as our OOH business from both strategic acquisitions and organic growth.

**Subscriber fee revenues** in 2014, excluding Astral, increased compared to last year, due to the flow-through of market-based rate increases for Bell Media’s specialty services, and higher revenues generated from our new TV Everywhere GO products. This was offset partly by the recognition of retroactive subscriber fee revenues in 2013 with certain BDUs that did not recur this year and the loss of revenue from services that ceased operations in 2014 (regional hockey feeds and Viewers Choice).

Additionally, Bell Media year-over-year revenues were unfavourably impacted by the recognition in Q4 2013 of retroactive revenues relating to retransmission royalties.

 

68** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
BUSINESS SEGMENTANALYSISBELL MEDIA
**5**
 

***OPERATING COSTS AND ADJUSTED EBITDA***

 **2014**** **2013  $ CHANGE  % CHANGE  
Operating costs**(2,203****)**(1,874)(329)(17.6%)
**Adjusted EBITDA****734**** **683  51  7.5%
**Adjusted EBITDA margin****25.0****%**26.7%    (1.7%)
 

**Bell Media operating costs** were up 17.6% in 2014 compared to last year mainly as a result of the acquisition of Astral combined with increased costs for sports broadcast rights and higher costs associated with our new TV Everywhere GO products. Partly offsetting the increase were cost synergies realized in 2014 from the integration of Astral into Bell Media and lower costs associated with the discontinuance of the Viewer’s Choice channel.

**Bell Media Adjusted EBITDA** increased 7.5% in 2014, mainly due to the contribution from the Astral acquisition, offset in part by higher year-over-year TV content expenses, particularly for sports broadcast rights.

***BELL MEDIA OPERATING METRICS***
- Achieved industry-leading revenue market share driven by Bell Media’s leadership in Canadian and international news, sports and entertainment programming
- Broadcasted all 4 of the top 4 programs among viewers aged25 to 54 for the first 12 weeks of the 2014 Fall season
- Maintained leading position in Québec as Bell Media’sproperties reached an average of 83% of the French-languagepopulation weekly
- Remained Canada’s top radio broadcaster, reaching 17.4 millionlisteners who spend 84 million hours tuned in each week
- Ranked first in digital media among all Canadian broadcast andvideo network competitors, and 7th among all online propertiesin the country, with monthly averages of 16.4 million visitors,3.3 million viewers, 340 million page views, 125 million visits and85 million videos
- Astral Out-of-Home is one of Canada’s leading OOH advertisingcompanies with over 9,500 advertising faces strategicallylocated in the markets of Québec, Ontario, Alberta andBritish Columbia
 **Competitive landscape and industry trends**
**COMPETITIVE LANDSCAPE**

The Canadian media industry is highly competitive, with competitors having significant scale and financial resources. In recent years, there has been increased consolidation of traditional media assets across the Canadian media landscape. The majority of players have become more vertically integrated to better enable the acquisition and monetization of premium content.

Bell Media competes in the TV, radio and OOH advertising markets:
- **TV:** The TV market has become increasingly fragmented and thistrend is expected to continue as new services and technologiesincrease the diversity of information and entertainment outletsavailable to consumers
- **Radio:** Competition within the radio broadcasting industryoccurs primarily in discrete local market areas amongindividual stations
- **OOH:** The Canadian OOH advertising industry is fragmented,consisting of a few large companies as well as numerous smallerand local companies operating in a few local markets

Consumers have also been shifting their media consumption towards digital media, mobile devices and on-demand content. This has caused new business models to emerge and advertisers to shift portions of their spending to digital platforms.

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		69
**5**
BUSINESS SEGMENTANALYSISBELL MEDIA
MD&A 
 

*Competitors*

**TV**
-  Conventional Canadian TV stations (local and distant signals) and specialty and paychannels, such as those owned by Shaw, Corus Entertainment Inc. (Corus), Rogers,Québecor Media Inc. (Québecor), Canadian Broadcasting Corporation (CBC)/SociétéRadio-Canada (SRC) and Groupe V
-  U.S. conventional TV stations and specialty channels
-  OTT providers such as Netflix and Apple

**Radio**
-  Large radio operators, such as Rogers, Corus, Cogeco and Newcap Inc. (Newcap) thatalso own and operate radio station clusters in various local markets
-  Radio stations in specific local markets
-  Satellite radio provider SiriusXM
-  Newer technologies such as online music streaming services, music downloading,portable devices that store and play digital music and online music streaming service
-  Other media such as newspapers, local weeklies, local TV, magazines, TV, outdooradvertising and the Internet

**OOH Advertising**
-  Large outdoor advertisers, such as Jim Pattison Broadcast Group (Pattison), OutfrontMedia, Cieslok Media (Cieslok), Québecor and Dynamic
-  Numerous smaller and local companies operating a limited number of display faces in afew local markets
-  Other media such as TV, radio, print media and the Internet

**INDUSTRY TRENDS**

***TECHNOLOGY AND CONSUMER HABITS TRANSFORMING THE WAY TV IS DELIVERED***

Technology used in the media industry continues to evolve rapidly, which has led to alternative methods for the distribution, storage and consumption of content. These technological developments have driven and reinforced changes in consumer behaviour as consumers seek more control over when, where and how they consume content. For example, consumer electronics innovations have enabled consumers to view content on TVs, computers, tablets, smartphones and other mobile electronic devices. The number of Canadian users who are connected to the Internet through their TVs is growing as connection becomes easier and more affordable. Changes in technology and consumer behaviour have resulted in a number of challenges for content aggregators and distributors. The technological developments may disrupt traditional distribution platforms by enabling content owners to provide content directly to distributors and consumers, thus bypassing traditional content aggregators.

***GROWTH OF ALTERNATIVES TO TRADITIONAL LINEAR TV***

Consumers now have improved access to online entertainment and information alternatives that did not exist a few years ago. While traditional linear TV was the only way to access consumer primetime programming in the past, many people today watch TV in non-traditional ways for at least a portion of their viewing. In particular, today’s viewers are consuming more content online, watching less scheduled programming live, time-shifting original broadcasts through PVRs, viewing more TV on mobile devices, and catching up on past programming on demand. In addition, many consumers are spending considerable time with online alternatives to traditional TV. This is evident in the growing popularity of OTT video services like Netflix. To date, these OTT services have largely complemented existing TV services. Media companies are evolving their content and launching their own solutions to better compete with these non-traditional offerings through services such as Bell Media’s CraveTV on-demand TV streaming service and authenticated TV Everywhere services such as CTV GO, TSN GO and TMN GO.

***ESCALATING CONTENT COSTS AND SHIFTS IN ADVERTISING***

Viewership and usage trends suggest that online and mobile Internet video consumption is increasing rapidly. Changing content consumption patterns and growth of alternative content providers could exert downward pressure on rates and advertising revenues for traditional media broadcasters. However, live sports and special events should continue to draw audiences and advertisers, which is expected to result in pricing pressure on future broadcasting rights. Additionally, while access to premium content has become increasingly important to media companies in attracting viewers and advertisers, there is now increased competition for these rights. This has resulted in higher TV program rights costs, which is a trend that is expected to continue into the future.
(1)*Broadcast		year-end at August 31, 2014, 2+ age category, Fall 2014 for radio*
 

70** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
BUSINESS SEGMENTANALYSISBELL MEDIA
**5**
 
 **Business outlook and assumptions**
**2015 OUTLOOK**

Bell Media’s financial results in 2015 are expected to be impacted by increases in programming costs (including higher costs related to sports broadcast rights), investments in new initiatives such as CraveTV and higher regulatory Canadian content spending. CraveTV is designed to complement existing TV offerings as an additive service featuring exclusive premium programming and, therefore, distribution of the product will be through licensed BDUs. Management will focus on increasing the distribution of the CraveTV product in 2015. The impact on cash flow from escalating costs to secure TV programming and investment in new media service initiatives should be partly mitigated by lower year-over-year capital expenditures. We will also continue to carefully manage costs by leveraging assets, achieving productivity gains and pursuing operational efficiencies across all of our properties, while continuing to invest in premium content for all four screens.

While overall advertising markets are expected to remain relatively stable in 2015, we anticipate some advertiser demand to return to Bell Media following a shift in 2014 to the main broadcaster of the Sochi 2014 Winter Olympic Games and 2014 FIFA World Cup Soccer. Subscriber fee revenues are projected to increase, driven by growth in TV Everywhere and scaling of CraveTV, which should help offset expected declines in specialty and pay TV.

In conventional TV, we intend to leverage the strength of our market position to continue offering advertisers, both nationally and locally, premium opportunities to reach their target audiences. Success in this area requires that we focus on a number of factors, including:
-  Successfully acquiring highly-rated programmingand differentiated content
-  Building and maintaining strategic supply arrangementsfor content on four screens
-  Producing and commissioning high-quality Canadian content,including market-leading news, enhancements throughinvestments in HD broadcasting and improvements to ournews programming

In sports specialty TV, as evidenced by TSN’s expansion to five national feeds (the TSN multiplex channels), we will aim to continue delivering premium content and exceptional viewing experiences to our viewers. Investment in the integration of our digital platforms will be an integral part of our strategy to further engage viewers. We have secured key hockey and other sports content that is important to Canadians. 2015 represents the first full year under a number of programming agreements entered into in 2014, as well as the first full year with the impact of the TSN multiplex channels, both of which will drive year-over-year cost increases and rate increases due to escalations in existing BDU contracts. We also intend to continue creating innovative high-quality productions in the areas of sports news and editorial coverage.

In non-sports specialty and pay TV, audiences and advertising revenues are expected to be driven by investment in quality programming and production. The agreement entered into with Home Box Office (HBO) in 2014, which secures the exclusive Canadian multi-platform rights to HBO’s off-air catalogue, is one example of our continuing investment in premium content. Additionally, we will continue to develop key brand partnership initiatives on our existing services and we intend to continue strengthening our pay TV offerings.

Our English-language specialty services will attempt to capitalize on Space, Bravo and Discovery’s leading position in the market, and we will focus on rebuilding audiences and revitalizing the brands and content of our TV services that appeal to younger viewers.

In our French-language pay and specialty services, we will optimize the CRTC tangible benefits in order to maximize quality content on screen and deploy such content on authenticated multi platforms. We will leverage our newly-launched Canal D Investigation channel that features reality documentaries and crime dramas as well as Super Écran’s new original fiction series.

In radio, we intend to leverage the strength of our market position to continue offering advertisers, both nationally and locally, premium opportunities to reach their target audiences. Additionally, in conjunction with local TV assets, we will pursue opportunities that can leverage our promotional capabilities, provide an expanded platform for content sharing, and offer synergistic colocation and efficiencies where practical.

In our OOH operations, we plan to leverage the strength of our products to provide advertisers with premium opportunities in Toronto and Montréal, as well as in certain Western markets. We will also continue to seek new opportunities in digital markets, including leveraging acquisitions made in 2014.

**ASSUMPTIONS**
-  Lower year-over-year Adjusted EBITDA and margin, due toescalating costs to secure TV programming, including risingsports-rights costs and market rates for specialty content,CraveTV investment, higher regulatory Canadian contentspending, the expiry of certain CRTC benefits as well as thecompletion of the Local Programming Improvement Fund
-  Ability to successfully acquire highly rated programming anddifferentiated content
-  Building and maintaining strategic supply arrangements forcontent on all four screens
-  Successful scaling of CraveTV
-  TV unbundling and growth in OTT viewing expected to resultin moderately lower subscriber levels for many Bell MediaTV properties
-  No material financial, operational or competitive consequencesof changes in regulations affecting our media business

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		71
**5**
BUSINESS SEGMENTANALYSISBELL MEDIA
MD&A 
 
 **Key growth drivers**-  Stronger economic growth that drives increased advertiser demand and spending, particularly in the key automotive, entertainmentequipment, telecommunications and consumer goods sectors
-  Higher audience levels from strong ratings maintained across all TV and radio properties, as well as from securing multi-platform rights
-  Investing in the best content, including more in-house productions
 **Principal business risks**
This section discusses certain principal business risks which specifically affect the Bell Media segment. For a detailed description of the principal risks that could have a material adverse effect on our business, refer to section 9, *Business risks*.

**AGGRESSIVE COMPETITION**

***RISK***
-  The intensity of competitive activity from traditional TV services, as well as from new technologies and alternative distribution platforms such as unregulated OTT content offerings, video on demand, personal video platforms and video services over mobile devices and the Internet, all challenge Bell Media’s traditional revenue streams 

***IMPACT***
-  The level of competitive activity could have an adverse impact on the level of audience acceptance for Bell Media’s TV services 

**ADVERTISING REVENUE UNCERTAINTY**

***RISK***
-  Advertising is heavily dependent on economic conditions and viewership 

***IMPACT***
-  Economic uncertainty reducesadvertisers’ spendingIncreased fragmentation of theadvertising market, given the increasing adoption of new technologiesand alternative distribution platforms,increases Bell Media’s risk of losingadvertising revenue
**RISING CONTENT COSTS AND ABILITY TO SECURE KEY CONTENT**

***RISK***
-  Rising content costs and the ability to secure key content to drive revenues and subscriber growth going forward 

***IMPACT***
-  Rising programming costs, as anincreasing number of domestic andglobal competitors compete for thesame content, could require us to incurunplanned expenses which could resultin negative pressure on Adjusted EBITDAOur inability to acquire popularprogramming content could adverselyaffect Bell Media’s viewership andsubscription levels and, consequently,advertising and subscription revenues
 

72** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
BUSINESS SEGMENTANALYSISBELL ALIANT
**5**
 
 **5.4** Bell Aliant
 
*Bell Aliant’s expanded FTTH network drove strong Internet and IPTV subscriber growth in 2014, helping to offset continued customer declines in its traditional voice business. The Privatization of Bell Aliant simplifies BCE’s corporate structure, while providing increased broadband scale with over 1.4 million combined Internet, TV and wireless customers and strong annualized Free Cash Flow accretion.*
**Key strategic imperative achievements in 2014**
-  Expanded FTTH network footprint to an additional 211,000 homesand businesses, bringing total coverage to 1,016,582 customerpremises in communities across Atlantic Canada, Ontarioand Québec
- Enhanced TV offerings through various initiatives: Added 29 new HD channels, bringing the total numberof HD channels to 160
Launched the CTV GO, TMN GO and TSN GO apps, enablingTV customers to stream content on their tablets, computersand smartphones
Launched the FibreOP Remote app, which allows customers to usetheir smartphone or tablet as a remote to browse and surf theguide, search for programs and set up recordings while on the go
Launched CraveTV subscription on-demand TV streamingservice, offering a large collection of premium TV content
 
- Enhanced Internet offerings with the introduction of a wirelessextender to FibreOP customers, ensuring they have the bestwireless coverage throughout their home
- Increased FibreOP Internet download speeds by at least 50%
- Began construction of a new data centre in Saint John,New Brunswick, which will provide the capacity to meet thedemands of Bell Aliant’s expanding ICT sector customers andsecuring Bell Aliant’s position as the leading provider of dataservices in Atlantic Canada
- Acquired O.N.TEL Inc. (Ontera), a full-service telecom companyoperating in Northeastern Ontario. Ontera’s network runsadjacent to Bell Aliant’s and includes 2,200 kilometres of fibre,which is expected to provide the opportunity for synergies

 
 **Financial performance analysis**
**2014 PERFORMANCE HIGHLIGHTS**

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		73
**5**
BUSINESS SEGMENTANALYSISBELL ALIANT
MD&A 
 

**BELL ALIANT RESULTS**

***REVENUES***

 **2014**** **2013  $ CHANGE  % CHANGE  
Data**994**** **887  107  12.1%
Local and access**1,056**** **1,109  (53)(4.8%)
Long distance**254**** **286  (32)(11.2%)
Wireless**99**** **97  2  2.1%
Equipment and other**122**** **131  (9)(6.9%)
Total external revenues**2,525**** **2,510  15  0.6%
Inter-segment revenues**232**** **249  (17)(6.8%)
**Total Bell Aliant revenues****2,757**** **2,759  (2)(0.1%)
 

**Bell Aliant operating revenues** remained essentially stable in 2014 despite competitive pricing pressures, as growth in data revenues was offset by lower local and access, long distance, and equipment and other revenues.
- **Data revenues** increased 12.1% in 2014, due to growth in Internetand IPTV services, along with higher IP data services revenuedriven by the expansion of Bell Aliant’s next-generation networktechnology and increased data product sales. The increase inInternet revenues was driven by FibreOP Internet customergrowth combined with higher residential high-speed InternetARPU attributable to increased customer adoption of higherbandwidth plans and price increases. Higher IPTV servicerevenues reflected growth in Bell Aliant’s FibreOP TV customerbase and the expiry of pricing offers.
- **Local and access revenues** decreased 4.8% in 2014 as a result ofthe continued erosion in Bell Aliant’s NAS customer base due tothe effect of aggressive discounting of bundled services by cablecompetitors, and continued migration of customers to wirelessand IP-based solutions
- **Long distance revenues** were down 11.2% in 2014, due to a lowerNAS base, substitution of traditional wireline service with e-mail,wireless calling and VoIP services, as well as customer migrationfrom per-minute plans to fixed rate plans
- **Wireless revenues** were up 2.1% in 2014 as a result of a higherwireless postpaid customer base
- **Equipment and other revenues** declined 6.9% in 2014, driven bythe loss of revenue generated by a contact centre subsidiarywhich ceased operations in late 2013, as well as lower volume ofcustom work

***OPERATING COSTS AND ADJUSTED EBITDA***

 **2014**** **2013  $ CHANGE  % CHANGE  
Operating costs**(1,520****)**(1,487)(33)(2.2%)
**Adjusted EBITDA****1,237**** **1,272  (35)(2.8%)
**Adjusted EBITDA margin****44.9****%**46.1%    (1.2%)
 

**Bell Aliant operating costs** increased 2.2% in 2014, reflecting higher IPTV content costs, increased customer service-related costs to support a growing FibreOP subscriber base, and greater advertising expenses. This was offset in part by negotiated reductions in payments to other carriers, lower labour costs from ongoing workforce restructuring, and lower post-employment benefit plans service cost.

**Bell Aliant Adjusted EBITDA** decreased 2.8% in 2014, mainly as a result of higher operating costs. Adjusted EBITDA margin declined to 44.9% in 2014 from 46.1% last year, as the impact from continued declines in higher-margin voice revenues was not fully offset by growth in lower-margin data service revenues.

 

74** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
BUSINESS SEGMENTANALYSISBELL ALIANT
**5**
 

***BELL ALIANT OPERATING METRICS***

 **2014**** **2013  CHANGE  % CHANGE  
**HIGH-SPEED INTERNET**** **** **            
High-speed Internet net activations**57,444**** **33,679  23,765  70.6%
High-speed Internet subscribers**1,009,537**** **952,093  57,444  6.0%
FibreOP Internet customers included in High-speed Internet customers**257,552**** **183,971  73,581  40.0%
**IPTV**** **** **            
Net subscriber activations**54,931**** **55,063  (132)(0.2%)
Total subscribers**233,014**** **178,083  54,931  30.8%
FibreOP TV**218,537**** **158,044  60,493  38.3%
**NAS LINES**** **** **            
Residential**1,372,402**** **1,462,462  (90,060)(6.2%)
Business**865,214**** **890,858  (25,644)(2.9%)
Total**2,237,616**** **2,353,320  (115,704)(4.9%)
**NAS NET LOSSES**** **** **            
Residential**(90,060****)**(108,737)18,677  17.2%
Business**(25,644****)**(29,313)3,669  12.5%
Total**(115,704****)**(138,050)22,346  16.2%
**WIRELESS**** **** **            
Subscribers**147,926**** **146,698  1,228  0.8%
 

**High-speed Internet subscriber net activations** increased 70.6%, or by 23,765 subscribers, in 2014 to 57,444, reflecting fewer residential customer deactivations due to competitive pricing actions and continued steady demand for FibreOP service bundles, as well as higher wholesale customer activations. At December 31, 2014, Bell Aliant had 1,009,537 high-speed Internet subscribers, up 6.0% from 952,093 subscribers at the end of 2013.

**IPTV net activations** of 54,931 subscribers decreased 0.2% in 2014 as a result of slower growth in the Atlantic region due to a more mature footprint, partly offset by new footprint expansion in Québec and Ontario. At December 31, 2014, Bell Aliant had 233,014 IPTV customers, which included 218,537 FibreOP TV customers, compared to 178,083 IPTV customers at the end of 2013, which included 158,044 FibreOP TV customers.

**NAS net losses** improved 16.2%, or by 22,346 customers, in 2014 as a result of fewer customer deactivations in residential FibreOP markets due to competitive pricing actions, and higher residential activations from winbacks related to the launch of FibreOP in new markets. These results were achieved despite customer losses as a result of sustained competitive intensity from cable providers and continued customer substitution to wireless and IP-based solutions. At December 31, 2014, Bell Aliant had 2,237,616 NAS lines, representing a 4.9% decline compared to 2,353,320 NAS lines at the end of 2013.

**Wireless customers** totalled 147,926 at December 31, 2014, representing a 0.8% increase since the end of 2013.

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		75
**5**
BUSINESS SEGMENTANALYSISBELL ALIANT
MD&A 
 
 **Competitive landscape and industry trends**
**COMPETITIVE LANDSCAPE**

Cable companies are the most significant competitive threat to Bell Aliant. At the end of 2014, Bell Aliant’s competitive footprint overlap with cable companies was approximately 76.5% of residential households in its markets, representing a 0.7 percentage point increase from 2013. In addition, the rapid development of new technologies, services and products has facilitated the entry of other competitors into Bell Aliant’s markets, enabling these competitors to offer their customers an alternative to traditional voice services through wireless and IP-based technologies. Bell Aliant actively employs marketing strategies to remain competitive in all of its operating markets and continues to innovate and develop new and enhanced services to meet the communication needs of its customers.

Competition for residential local and long distance services also comes from substitution of wireless services, including Bell Mobility and Virgin Mobile wireless offerings.

*Competitors*

Cable TV providers offer cable TV, Internet and cable telephony services, including:
-  EastLink in Atlantic Canada and rural Ontario
-  Rogers in Newfoundland and Labrador, New Brunswickand Ontario
-  Vidéotron in rural Québec
-  Cogeco in rural Québec
-  Shaw in rural Ontario
-  Shaw Direct, providing DTH satellite TV service nationwide
-  Some smaller private cable companies in rural communities

Various other companies, such as Vonage and Primus, that offer resale or VoIP-based local, long distance and Internet services.

OTT voice and video services such as Skype, Netflix and iTunes.

Digital media streaming devices such as Apple TV and Roku.

*Market Facts*
-  There are 2.5 million households in Bell Aliant’s territory, whichincludes Atlantic Canada and rural Ontario and Québec
-  Approximately 77% of the households in its territory have a cabletelephony alternative
-  Over 85% of the households in its territory have access toBell Aliant’s high-speed Internet services; Internet penetrationis estimated to be between 70% to 75% across its territories

Beginning January 1, 2015, the results of operations of Bell Aliant are included within our Bell Wireless and Bell Wireline segments, with prior periods restated for comparative purposes. As a result, no discussion relating to *Industry trends, Business outlook and assumptions, Key growth drivers or Principal business risks*is being provided for Bell Aliant. For a discussion concerning these items, refer to sections 5.1, *Bell Wireless*and 5.2, *Bell Wireline*in this MD&A.

 

76** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
FINANCIAL ANDCAPITAL MANAGEMENT
**6**
 
**6**  FINANCIAL AND CAPITAL MANAGEMENT
**This section tells you how we manage our cash and capital resources to carry out our strategy and deliver financial results. It provides an analysis of our financial condition, cash flows and liquidity on a consolidated basis.**
 **6.1** Net Debt(1)
 

 

 **DECEMBER 31, 2014**** **DECEMBER 31, 2013  $ CHANGE  % CHANGE  
Debt due within one year(2)**3,743**** **2,571  1,172  45.6%
Long-term debt**16,355**** **16,341  14  0.1%
Preferred shares(3)**2,002**** **1,698  304  17.9%
Cash and cash equivalents**(566****)**(335)(231)(69.0%)
Net Debt**21,534**** **20,275  1,259  6.2%
 
(1)*Net Debt is a non-GAAP financial measure and does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers. See section 10.2,*Non-GAAP financial measures and key performance indicators (KPIs) – Net Debt *in this MD&A for more details.*(2)*Includes bank advances, notes payable and loans secured by trade receivables.*(3)*50% of outstanding preferred shares of $4,004 million and $3,395 million in 2014 and 2013, respectively, are classified as debt as it is consistent with the treatment by some credit rating agencies.*
The increase of $1,186 million in debt due within one year and long-term debt was due to:
-  The issuance of MTN debentures at Bell Canada with a totalprincipal amount of $1.25 billion and of MTNs at Bell Aliant witha total principal amount of $150 million
-  An increase in our notes payable and bank advances (net ofrepayments) of $469 million

Partly offset by:
-  $350 million early debt redemption of MTNs at Bell Aliant
-  $300 million repayment of CTV Specialty Television Inc.(CTV Specialty) notes on February 18, 2014
-  $33 million net repayments of finance leases and other debt

The increase in preferred shares was due to the issuance of BCE Cumulative Redeemable First Preferred Shares, Series AM, Series AO and Series AQ, for a total value of $609 million, as a result of the Preferred Share Exchange. See section 1.3, *Key corporate developments – Bell Aliant Privatization and note exchange.*

The increase in cash and cash equivalents of $231 million was due to:
-  $2,744 million of Free Cash Flow
-  $784 million net issuance of debt instruments
-  $720 million total proceeds from BCE’s divestitures of TV servicesand radio stations

Partly offset by:
-  $1,893 million dividends paid on common shares
-  $989 million cash consideration paid in connection with thePrivatization of Bell Aliant
-  $566 million payment for the acquisition of 700 MHz wirelessspectrum assets
-  $350 million voluntary DB pension plan contribution
-  $131 million of acquisition costs paid due mainly to CRTC tangiblebenefit payment requirements and Privatization costs

 
 **6.2** Outstanding share data
 

 

COMMON SHARES OUTSTANDING**NUMBER OF SHARES**** **
Outstanding, January 1, 2014**775,892,556**** **
Shares issued for the Privatization of Bell Aliant**60,879,365**** **
Shares issued under employee stock option plan**1,372,006**** **
Shares issued under employee savings plan (ESP)**2,186,426**** **
Outstanding, December 31, 2014**840,330,353**** **
 

 ** **** ****WEIGHTED AVERAGE**** **
STOCK OPTIONS OUTSTANDING**NUMBER OF OPTIONS**** ****EXERCISE PRICE ($)**** **
Outstanding, January 1, 2014**7,870,231**** ****40**** **
Granted**2,915,361**** ****48**** **
Exercised(1)**(1,372,006****)****36**** **
Forfeited**(135,396****)****44**** **
Outstanding, December 31, 2014**9,278,190**** ****43**** **
Exercisable, December 31, 2014**865,600**** ****36**** **
 
(1)*The weighted average share price for options exercised in 2014 was $49.*
At March 5, 2015, 841,610,645 common shares and11,153,196 stock options were outstanding.

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		77
**6**
FINANCIAL ANDCAPITAL MANAGEMENT
MD&A 
 
 **6.3** Cash flows
 

 

 **2014**** **2013  $ CHANGE  % CHANGE  
Cash flows from operating activities**6,241**** **6,476  (235)(3.6%)
Bell Aliant dividends paid to BCE**95**** **191  (96)(50.3%)
Capital expenditures**(3,717****)**(3,571)(146)(4.1%)
Cash dividends paid on preferred shares**(134****)**(127)(7)(5.5%)
Cash dividends paid by subsidiaries to non-controlling interest**(145****)**(283)138  48.8%
Acquisition costs paid**131**** **80  51  63.8%
Voluntary defined benefit pension plan contribution**350**** **–  350  n.m.  
Bell Aliant free cash flow**(77****)**(195)118  60.5%
Free cash flow**2,744**** **2,571  173  6.7%
Bell Aliant free cash flow, excluding dividends paid**(18****)**4  (22)n.m.  
Acquisition costs paid**(131****)**(80)(51)(63.8%)
Voluntary defined benefit pension plan contribution**(350****)**–  (350)n.m.  
Business acquisitions**(18****)**(2,850)2,832  99.4%
Business dispositions**720**** **1  719  n.m.  
Acquisition of spectrum licences**(566****)**–  (566)n.m.  
Other investing activities**11**** **19  (8)(42.1%)
Net issuance of debt instruments**784**** **2,215  (1,431)(64.6%)
Reduction in securitized trade receivables**–**** **(14)14  n.m.  
Early debt redemption costs**(4****)**(55)51  92.7%
Privatization of Bell Aliant**(989****)**–  (989)n.m.  
Issue of common shares**49**** **13  36  n.m.  
Issue of equity securities by subsidiaries to non-controlling interest**–**** **230  (230)n.m.  
Cash dividends paid on common shares**(1,893****)**(1,795)(98)(5.5%)
Other financing activities**(108****)**(53)(55)n.m.  
**Net increase in cash and cash equivalents****231**** **206  25  12.1%
Free cash flow per share(1)**$3.46**** **$3.31  $0.15  4.5%
 
(1)*Free Cash Flow per share is a non-GAAP financial measure and does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers. See section 10.2,*Non-GAAP financial measures and key performance indicators (KPIs) – Free Cash Flow and Free Cash Flow per share *in this MD&A for more details.**n.m.: not meaningful*
 
 **Cash flows from operating activities and Free Cash Flow**
In 2014, BCE’s cash flows from operating activities decreased $235 million compared to 2013 as a result of a $350 million voluntary DB pension plan contribution made in 2014 and higher income taxes paid, partly offset by higher Adjusted EBITDA and an improvement in working capital.

Free Cash Flow in 2014 increased $173 million, driven mainly by higher Adjusted EBITDA and an improvement in working capital, partly offset by higher income taxes paid and increased capital expenditures.

Free Cash Flow per share in 2014 was $3.46 per common share, compared to $3.31 per common share in 2013.

 

78** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
FINANCIAL ANDCAPITAL MANAGEMENT
**6**
 
 **Capital expenditures**
 

 

 **2014**** **2013   $ CHANGE % CHANGE 
Bell    **3,142** 3,001 (141)(4.7%)
Capital intensity ratio**16.8****%**16.6%  (0.2%)
Bell Aliant **575** 570   (5)(0.9%)
Capital intensity ratio**20.9****%**20.7%  (0.2%)
BCE  **3,717** 3,571  (146)(4.1%)
Capital intensity ratio**17.7****%**17.5%  (0.2%)
  

**BCE capital expenditures** increased $146 million, or 4.1%, in 2014, reflecting higher spending at both Bell and Bell Aliant. Capital expenditures as a percentage of revenue (capital intensity ratio) for BCE was 17.7% in 2014 compared to 17.5% last year.

**Bell capital expenditures** were $141 million, or 4.7%, higher in 2014, corresponding to a capital intensity ratio of 16.8%, up 0.2 percentage points over 2013. The year-over-year increase reflected:
- Higher wireline capital expenditures to further expand our Fibe TV service footprint, in order to connect more homes and businesses directly with broadband fibre and to support the execution of business customer contracts
- Increased wireless	capital spending for the continued deployment of our 4G LTE network, which reached approximately 86%of the Canadian population at December 31, 2014, as well asongoing investments to increase network capacity to accommodate increasing data usage and enable higher LTE speeds
- Higher media capital expenditures as a result of the Astralacquisition, and from increasing broadcasting capacity andTV production equipment related to the expansion of TSN fromtwo to five national feeds

**Bell Aliant capital expenditures** increased a modest $5 million, or 0.9%, corresponding to a capital intensity ratio of 20.9% compared to 20.7% in 2013. The increase in spending was attributable to continued expansion of the broadband fibre network, offset in part by lower capital expenditures for legacy services.
 **Voluntary DB pension plan contribution**
In 2014, we made a voluntary contribution of $350 million to fund our post-employment benefit obligation and aligned the funded status of Bell Aliant’s DB pension plan with the strong solvency position of the Bell Canada plans. The voluntary contribution was funded from cash on hand at the end of 2014 and will reduce the amount of BCE’s future pension obligations.
 **Business acquisitions**
Business acquisitions in 2013 reflect our acquisition of Astral of $2,844 million, net of $32 million of cash acquired.
 **Business dispositions**
In 2014, we completed the sale of certain TV services and radio stations for total cash proceeds of $720 million.
 **Acquisition of spectrum licences**
On April 2, 2014, Bell acquired 700 MHz spectrum licences in every province and territorial market, comprised of 31 licences for $566 million.

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		79
**6**
FINANCIAL ANDCAPITAL MANAGEMENT
MD&A 
 
 **Debt instruments**
*We use a combination of short-term and long-term debt to finance our operations. Our short-term debt consists mostly of bank facilities, notes payable under commercial paper programs and loans securitized by trade receivables. We usually pay fixed rates of interest on our long-term debt and floating rates on our short-term debt. As at December 31, 2014, all of our debt was denominated in Canadian dollars with the exception of one of our credit facilities and a portion of our commercial paper, which are denominated in U.S. dollars, all of which have been hedged for foreign currency fluctuations through forward currency contracts.*

**2014**

We issued $784 million of debt, net of repayments. This included the issuance of Series M-30 and Series M-31 MTN debentures at Bell Canada with a principal amount of $1.25 billion and MTNs at Bell Aliant with a principal amount of $150 million, as well as $469 million of notes payable and bank advances, partly offset by repayments of financial leases and other debt of $435 million, $350 million of early debt redemption of MTNs at Bell Aliant and $300 million of CTV Specialty notes on February 18, 2014.

**2013**

We issued $2,215 million of debt, net of repayments. This included the issuance of Series M-26, Series M-27, Series M-28 and Series M-29 MTN debentures at Bell Canada with a total principal amount of $3 billion, $1 billion drawn under Bell Canada’s unsecured committed-term acquisition credit facility to fund a portion of the purchase price of Astral, the issuance of MTNs at Bell Aliant with a total principal amount of $400 million, and an increase in our notes payable and bank advances, net of repayments, of $272 million. This was partly offset by the early debt redemption of Series M-20 MTN debentures at Bell Canada amounting to $1 billion, $440 million of payments under finance leases, $400 million of early debt redemption of Series 3 MTNs at Bell Aliant, $397 million of repayment of debt assumed on the acquisition of Astral, $150 million of early debt redemption of Series EA debentures at Bell Canada and $70 million repayment of Series AA debentures at Bell Aliant.
 **Privatization of Bell Aliant**
In 2014, we paid $989 million in connection with the Privatization of Bell Aliant, representing 25% of the consideration for the acquisition of the outstanding publicly held common shares of Bell Aliant that we did not already own. Refer to section 1.3, *Key corporate developments – Bell Aliant Privatization and note exchange,*for details on the Privatization.
 **Issue of equity securities by subsidiaries to NCI**
In 2013, Bell Aliant Preferred Equity Inc., an indirect subsidiary of Bell Aliant, issued preferred shares for gross proceeds of $230 million.
 **Cash dividends paid on common shares**
The BCE Board approved increases in the common share dividend in 2014 and 2013. Accordingly, in 2014, the cash dividend paid on a BCE common share increased to $2.47 per common share, compared to a cash dividend of $2.315 per common share in 2013.
 **6.4**		Post-employment benefit plans
For the year ended December 31, 2014, we recorded an increase in our post-employment benefit obligations and a loss, before taxes and NCI, in OCI of $938 million. This was due to a lower actual discount rate of 4.0% at December 31, 2014, compared to 4.9% at December 31, 2013, partly offset by a higher-than-expected return on plan assets.

For the year ended December 31, 2013, we recorded a decrease in our post-employment benefit obligations and a gain, before taxes and NCI, in OCI of $1,416 million. This was due to an increase in the discount rate to 4.9% at December 31, 2013, compared to 4.4% at December 31, 2012, partly offset by a lower-than-expected return on plan assets.
 **6.5** Privatization of Bell Aliant
The Privatization was accounted for as an equity transaction which increased BCE’s deficit by $2,143 million, BCE’s common shares by $2,928 million and preferred shares by $609 million, and reduced NCI by $877 million and contributed surplus by $1,499 million. Refer to section 1.3, *Key corporate developments – Bell Aliant Privatization and note exchange,*for details on the Privatization.

 

80** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
FINANCIAL ANDCAPITAL MANAGEMENT
**6**
 
 **6.6** Financial risk management
Management’s objectives are to protect BCE and its subsidiaries on a consolidated basis against material economic exposures and variability of results from various financial risks that include credit risk, liquidity risk, foreign currency risk, interest rate risk and equity price risk. These risks are further described in Note 2, *Significant accounting policies*, Note 9, *Other income (expense)*and Note 24, *Financial and capital management*.

The following table outlines our financial risks,how we manage these risks and their financial statement classification.
**FINANCIAL RISK****DESCRIPTION OF RISK****MANAGEMENT OF RISK AND FINANCIAL STATEMENT CLASSIFICATION**Credit riskWe are exposed to credit risk from operating activities and certain financing activities, the maximum exposure of which is represented by the carrying amounts reported on the statements of financial position. We are exposed to credit risk if counterparties to our trade receivables and derivative instruments are unable to meet their obligations.
Our trade receivables and allowance for doubtful accounts balances at December 31, 2014 were $3,068 million and $69 million, respectively.
-  Large and diverse customer base
-  Deal with institutions with investment-grade credit ratings
-  Regularly monitor our credit risk and exposure
Liquidity riskWe are exposed to liquidity risk for financial liabilities.
Refer to section 6.8, *Liquidity – Contractual obligations*, for a maturity analysis of our recognized financial liabilities.
- Sufficient cash from operating activities and committed bank facilities to fund our operations and fulfill our obligations as they become due
Currency riskWe are exposed to currency risk related to anticipated transactions and certain foreign currency debt.
Refer to the following *Fair value*section for details on our derivative financial instruments.
- Foreign currency forward contracts and options on our purchase commitments and commercial paper maturing in 2015 to 2017 of $2 billion U.S. ($2.2 billion Canadian) at December 31, 2014, to manage foreign currency risk related to anticipated transactions and foreign currency debt   - For cash flow hedges, changes in the fair value are recognizedin OCI, except for any ineffective portion, which is recognizedimmediately in earnings in *Other income (expense)*. Realized gainsand losses in Accumulated OCI are reclassified to				*Operating costs*in the income statements in the same periods as the correspondinghedged items are recognized in earnings
  - For economic hedges, changes in the fair value are recognized in				*Other income (expense)* 
- Cross currency basis swaps on one of our credit facilities maturing in 2015 of $877 million U.S. ($1 billion Canadian) at December 31, 2014, to hedge foreign currency risk on a portion of our long-term debt due within one year
- Changes in the fair value and the related credit facility are recognized in			*Other income (expense)*in the income statements and offset, unless a portion of the hedging relationship is ineffective
Interest rate riskWe are exposed to risk on the interest rates of our debt and our post-employment benefit plans.
 - Interest rate swaps maturing in 2017 with a notional amount of $700 million at December 31, 2014, to hedge interest rate risk on a portion of our long-term debt   - Changes in the fair value and the related long-term debt are recognized in				*Other income (expense)*in the income statements and offset, unless a portion of the hedging relationship is ineffective 
- Interest rate locks maturing in 2015 with a notional amount of $500 million at December 31, 2014, to hedge the interest rates on future debt issuance   - Changes in the fair value are recognized in OCI, except for any ineffective portion, which is recognized immediately in earnings in				*Other income (expense)*. Realized gains and losses in Accumulated OCI are reclassified to				*Interest expense*in the income statements in the same periods as the interest expense on the debt is recognized in earnings 
- For our post-employment benefit plans, the interest rate risk is managed using a liability matching approach which reduces the exposure of the DB plan to a mismatch between investment growth and obligation growth
Equity price riskWe are exposed to risk on our cash flow related to share-based payment plans.
Refer to the following *Fair value*section for details on our derivative financial instruments
- Equity forward contracts with a fair value of $157 million at December 31, 2014, on BCE’s common shares to economically hedge the cash flow exposure related to share-based payment plans   - Changes in fair value are recorded in			*Other income (expense)*in the income statements 

 

 

.
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		81
**6**
FINANCIAL ANDCAPITAL MANAGEMENT
MD&A 
 
 **Fair value**
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Certain fair value estimates are affected by assumptions we make about the amount and timing of future cash flows and discount rates, all of which reflect varying degrees of risk. Income taxes and other expenses that would be incurred on disposition of financial instruments are not reflected in the fair values. As a result, the fair values are not the net amounts that would be realized if these instruments were settled.

The carrying values of our cash and cash equivalents, trade and other receivables, assets held for sale, trade payables and accruals, compensation payable, severance and other costs payable, interest payable, notes payable, bank advances and loans secured by trade receivables approximate fair value as they are short term.

The following table provides the fair value details of financial instruments measured at amortized cost in the statements of financial position.
      **DECEMBER 31, 2014**DECEMBER 31, 2013      **CARRYING**** ****FAIR**** **CARRYING  FAIR   CLASSIFICATIONFAIR VALUE METHODOLOGY**VALUE**** ****VALUE**** **VALUE  VALUE 
CRTC tangible benefits obligation
Other current and non-current liabilities
Present value of estimated future cash flows discounted using observable market interest rates**285** **289** 350 350 
CRTC deferral account obligation
Other current and non-current liabilities
Present value of estimated future cash flows discounted using observable market interest rates**174** **191** 264 283 
Debentures, finance leases and other debt
Debt due within one year and long-term debt
Quoted market price of debt or present value of future cash flows discounted using observable market interest rates**17,723** **20,059** 17,019 18,714 
 

The following table provides the fair value details of financial instruments measured at fair value in the statements of financial position.

  
  
FAIR VALUE AT DECEMBER 31
  
      QUOTED PRICES IN          
  
  CARRYING VALUE OF  ACTIVE MARKETS FOR  OBSERVABLE  NON-OBSERVABLE  
  
  ASSET (LIABILITY) AT  IDENTICAL ASSETS  MARKET DATA  MARKET INPUTS  
  
CLASSIFICATIONDECEMBER 31  (LEVEL 1)  (LEVEL 2)
(1)  (LEVEL 3)(2)  
**2014**
  ** **** **** **** **** **** **** **** **
AFS publicly-traded and privately-held investments(3)
Other non-current assets**107** **17** **–** **90** 
Derivative financial instruments
Other current assets, Trade payables and other liabilities, Other non-current assets and liabilities**276** **–** **276** **–** 
MLSE financial liability(4)
Other non-current liabilities**(135****)****–**** ****–**** ****(135****)**
Other
Other non-current assets and liabilities**12** **–** **22** **(10****)**
**2013**
                  
AFS publicly-traded and privately-held investments
Other non-current assets91 14 – 77 
Derivative financial instruments
Other current assets, Trade payables and other liabilities, Other non-current assets and liabilities209 – 209 – 
MLSE financial liability
Other non-current liabilities(135)–  –  (135)
 
(1)*Observable market data such as equity prices, interest rates, swap rate curves and foreign currency exchange rates.*(2)*Non-observable market inputs such as discounted cash flows. A reasonable change in our assumptions would not result in a significant increase (decrease) to our level 3 financial instruments.*(3)*Unrealized gains and losses on AFS financial assets are recorded in OCI and are reclassified to*Other income (expense) *in the income statements when realized or when an impairment is determined.*(4)*Represents BCE’s obligation to repurchase the BCE Master Trust Fund’s (Master Trust) 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust exercise its put option.*
 

82** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
FINANCIAL ANDCAPITAL MANAGEMENT
**6**
 
 **6.7** Credit ratings
*Credit ratings generally address the ability of a company to repay principal and pay interest on debt or dividends on issued and outstanding preferred shares.*

*Our ability to raise financing depends on our ability to access the public equity and debt capital markets as well as the bank credit market. Our ability to access such markets and the cost and amount of funding available partly depends on the quality of our credit ratings at the time capital is raised. Investment-grade credit ratings usually mean that when we borrow money, we qualify for lower interest rates than companies that have ratings lower than investment-grade. A ratings downgrade could result in adverse consequences for our funding capacity or ability to access the capital markets.*

The following table provides BCE’s and Bell Canada’s credit ratings as at March 5, 2015 from S&P, DBRS and Moody’s.
 **Key credit ratings**
 

 

 
BELL CANADA(1)
AT MARCH 5, 2015DBRS  MOODY'S  S&P 
Commercial paperR-1 (low)  P-2  A-1 (Low) (Canadian scale) 
         A-2 (Global scale) 
Long-term debtA (low)  Baa1  BBB+ 
Subordinated long-term debtBBB  Baa2  BBB        
 
BCE(1)
 DBRS  MOODY'S  S&P 
Preferred sharesPfd-3 (high)  –  P-2 (Low) (Canadian scale) 
         BBB – (Global scale) 
 
(1)*Outlooks on all ratings are stable. These credit ratings are not recommendations to buy, sell or hold any of the securities referred to above, and they may be revised or withdrawn at any time by the assigning rating organization. Each credit rating should be evaluated independently of any other credit rating.*
 
 **6.8** Liquidity
**Sources of liquidity**

Our cash and cash equivalents balance at the end of 2014 was $566 million. We expect that this balance, our 2015 estimated cash flows from operations, and possible capital markets financing, including commercial paper, will permit us to meet our cash requirements in 2015 for capital expenditures, post-employment benefit plans funding, dividend payments, the payment of contractual obligations, maturing debt, ongoing operations, the purchase of spectrum, and other cash requirements.

Should our 2015 cash requirements exceed our cash and cash equivalents balance, cash generated from our operations, and capital markets financings, we would cover such a shortfall by drawing under committed revolving credit facilities that are currently in place or through new facilities, to the extent available.

Our cash flows from operations, cash and cash equivalents balance, capital markets financings and credit facilities should give us flexibility in carrying out our plans for future growth, including business acquisitions and contingencies.

 ** **** **** **** **** **** ****COMMERCIAL**** **** **** **
 **TOTAL**** **** **** ****LETTERS OF**** ****PAPER**** ****NET**** **
AT DECEMBER 31, 2014**AVAILABLE**** ****DRAWN**** ****CREDIT**** ****OUTSTANDING**** ****AVAILABLE**** **
**Committed credit facilities**** **** **** **** **** **** **** **** **** **** **
Unsecured revolving facility(1)(2)**2,500**** ****–**** ****–**** ****1,453**** ****1,047**** **
Unsecured committed term credit facility (Astral)(3)**1,018**** ****1,018**** ****–**** ****–**** ****–**** **
Other**100**** ****–**** ****98**** ****–**** ****2**** **
**Total committed credit facilities****3,618**** ****1,018**** ****98**** ****1,453**** ****1,049**** **
**Total non-committed credit facilities****1,101**** ****–**** ****626**** ****–**** ****475**** **
**Total committed and non-committed credit facilities****4,719**** ****1,018**** ****724**** ****1,453**** ****1,524**** **
 
(1)*Bell Canada’s $2,500 million revolving facility expires in November 2019. Bell Aliant’s $750 million revolving facility was cancelled in 2014.*(2)*As of December 31, 2014, Bell Canada’s outstanding commercial paper included $431 million U.S. ($501 million Canadian) which has been hedged for foreign currency fluctuations through forward currency contracts.*(3)*Bell Canada may borrow up to 1 billion Canadian dollars in either Canadian or equivalent U.S. dollars under this credit facility. Bell Canada’s outstanding balance at December 31, 2014 was $1,018 million Canadian ($877 million U.S.), which has been hedged using cross currency basis swaps.*
 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		83
**6**
FINANCIAL ANDCAPITAL MANAGEMENT
MD&A 
 

Bell Canada may issue notes in an aggregate amount of up to 2 billion dollars in either Canadian or U.S. dollars under its commercial paper program, supported by a committed revolving bank credit facility. The total amount of this credit facility may be drawn at any time. Some of our credit agreements require us to meet specific financial ratios and to offer to repay and cancel the credit agreement upon a change of control of BCE or Bell Canada. We are in compliance with all conditions and restrictions.
 **Cash requirements**
**CAPITAL EXPENDITURES**

In 2015, our capital spending is planned to focus on our strategic imperatives, reflecting an appropriate level of investment in our networks and services.

**POST-EMPLOYMENT BENEFIT PLANS FUNDING**

Our post-employment benefit plans include DB pension and defined contribution (DC) pension plans, as well as other post-employment benefits (OPEBs). The funding requirements of our post-employment benefit plans, resulting from valuations of our plan assets and liabilities, depend on a number of factors, including actual returns on post-employment benefit plan assets, long-term interest rates, plan demographics, and applicable regulations and actuarial standards. Our expected funding for 2015 is detailed in the following table and is subject to actuarial valuations that will be completed in mid-2015. An actuarial valuation was last performed for our significant post-employment benefit plans as at December 31, 2013.

2015 EXPECTED FUNDINGTOTAL 
DB pension plans – service cost212 
DB pension plans – deficit13 
DB pension plans225 
OPEBs80 
DC pension plans95 
Total net post-employment benefit plans400 
 

BCE closed the membership of its DB pension plans to new employees in January 2005 to reduce the impact of pension volatility on earnings over time. Generally, new employees now enrol in the DC pension plans. In 2006, we announced the phase-out, over a ten-year period, of OPEBs for most employees, which will result in OPEBs funding being phased out gradually after 2016.

In the first quarter of 2015, the Bell Canada Pension Plan (the Plan) entered into an investment arrangement to hedge part of the Plan’s exposure to potential increases in longevity which covers approximately $5 billion of post-employment benefit obligations. This arrangement requires no additional cash contributions from BCE.

**DIVIDEND PAYMENTS**

In 2015, the cash dividends to be paid on BCE’s common shares are expected to be higher than in 2014 as BCE’s annual common share dividend increased by 5.3% to $2.60 per common share from $2.47 per common share at the end of 2014. This increase is consistent with BCE’s common share dividend policy of a target payout between 65% and 75% of Free Cash Flow. BCE’s dividend policy and the declaration of dividends are subject to the discretion of the BCE Board.

 

84** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
FINANCIAL ANDCAPITAL MANAGEMENT
**6**
 

**CONTRACTUAL OBLIGATIONS**

The following table is a summary of our contractual obligations at December 31, 2014 that are due in each of the next five years and thereafter.

                     THERE-      
 2015  2016  2017  2018  2019  AFTER  TOTAL  
**Recognized financial liabilities**                            
Long-term debt1,031  2,389  1,130  1,729  1,309  7,924  15,512  
Notes payable and bank advances1,454  –  –  –  –  –  1,454  
Minimum future lease payments under finance leases491  444  313  260  237  1,405  3,150  
Loans secured by trade receivables921  –  –  –  –  –  921  
Interest payable on long-term debt, notes payable, bank advances and loan secured by trade receivables652  554  510  470  415  4,548  7,149  
MLSE financial liability–  –  135  –  –  –  135  
Net interest receipts on derivatives(23)(22)(11)–  –  –  (56)
**Commitments (off-balance sheet)**                            
Operating leases295  249  211  161  134  748  1,798  
Commitments for property, plant and equipment and intangible assets851  573  441  450  321  1,617  4,253  
Purchase obligations1,443  448  360  188  178  1,005  3,622  
Glentel acquisition670  –  –  –  –  –  670  
**Total****7,785**** ****4,635**** ****3,089**** ****3,258**** ****2,594**** ****17,247**** ****38,608**** **
BCE’s significant finance leases are for satellites and office premises. The leases for satellites, used to provide programming to our Bell TV customers, have a term of 15 years. The satellite leases are non-cancellable. The office leases have a typical lease term of 25 years. Minimum future lease payments under finance leases include future finance costs of $929 million.

BCE’s significant operating leases are for office premises, cellular tower sites and retail outlets with lease terms ranging from 1 to 33 years. These leases are non-cancellable and are renewable at the end of the lease period. Rental expense relating to operating leases was $335 million in 2014 and $300 million in 2013.

Purchase obligations consist of contractual obligations under service and product contracts, for operating expenditures. Our commitments for property, plant and equipment and intangible assets include program and feature film rights, investments to expand and update our networks to meet customer demand.

**INDEMNIFICATIONS AND GUARANTEES**

As a regular part of our business, we enter into agreements that provide for indemnifications and guarantees to counterparties in transactions involving business dispositions, sales of assets, sales of services, purchases and development of assets, securitization agreements and operating leases.

We cannot reasonably estimate the maximum potential amount we could be required to pay counterparties because of the nature of almost all of these indemnifications and guarantees. As a result, we cannot determine how they could affect our future liquidity, capital resources or credit risk profile. We have not made any significant payments under indemnifications or guarantees in the past.
 **Litigation**
We become involved in various legal proceedings as a part of our business. While we cannot predict the final outcome or timing of the legal proceedings that were pending at March 5, 2015, based on information currently available and management’s assessment of the merits of such legal proceedings, management believes that the resolution of these legal proceedings will not have a material and negative effect on our financial statements. We believe that we have strong defences and we intend to vigorously defend our positions.

You will find a description of the principal legal proceedings pending at March 5, 2015 in the BCE 2014 AIF.

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		85
**7**
SELECTED ANNUAL ANDQUARTERLY INFORMATION
MD&A 
 
**7**  SELECTED ANNUAL AND QUARTERLY INFORMATION
**7.1** Annual financial information

The following table shows selected consolidated financial data of BCE for 2014, 2013 and 2012, prepared in accordance with IFRS as issued by the International Accounting Standards Board (IASB). We discuss the factors that caused our results to vary over the past two years throughout this MD&A.

 **2014****(1) **2013(2)** **2012(3)** **
**CONSOLIDATED INCOME STATEMENTS**** **** **        
Operating revenues**21,042**** **20,400  19,978  
Operating costs**(12,739****)**(12,311)(12,090)
Adjusted EBITDA**8,303**** **8,089  7,888  
Severance, acquisition and other costs**(216****)**(406)(133)
Depreciation**(2,880****)**(2,734)(2,678)
Amortization**(572****)**(646)(714)
Finance costs** **** **        
Interest expense**(929****)**(931)(865)
Interest on post-employment benefit obligations**(101****)**(150)(131)
Other income (expense)**42**** **(6)269  
Income taxes**(929****)**(828)(760)
Net earnings**2,718**** **2,388  2,876  
Net earnings attributable to:** **** **        
Common shareholders**2,363**** **1,975  2,456  
Preferred shareholders**137**** **131  139  
Non-controlling interest**218**** **282  281  
Net earnings**2,718**** **2,388  2,876  
Net earnings per common share** **** **        
Basic**2.98**** **2.55  3.17  
Diluted**2.97**** **2.54  3.17  
Included in net earnings:** **** **        
Severance, acquisition and other costs**(148****)**(299)(94)
Net gains (losses) on investments**8**** **(7)256  
Early debt redemption costs**(21****)**(36)–  
Adjusted net earnings**2,524**** **2,317  2,294  
Adjusted EPS**3.18**** **2.99  2.96  
**RATIOS**** **** **        
Adjusted EBITDA margin (%)**39.5****%**39.7%39.5%
Return on equity (%)**21.0****%**17.9%23.2%
 
(1)*On October 31, 2014, BCE completed its acquisition of all the issued and outstanding common shares of Bell Aliant that it did not already own. Refer to section 1.3,*Key corporate developments – Bell Aliant Privatization and note exchange *for further details of the transaction.*(2)*On July 5, 2013, BCE acquired 100% of the issued and outstanding shares of Astral. As part of its approval of the Astral acquisition, the CRTC ordered BCE to spend $246.9 million in new benefits for French- and English-language TV, radio and film content development, support for emerging Canadian musical talent, training and professional development for Canadian media, and new consumer participation initiatives. The present value of this tangible benefits obligation, amounting to $230 million, was recorded as an acquisition cost in*Severance, acquisition and other costs *in 2013. Total acquisition costs relating to Astral, including the tangible benefits obligation, amounted to $266 million in 2013.*(3)*In December 2012, a joint operation owned 50% by BCE sold certain spectrum licences and network equipment to its owners, with BCE and the non-related venturer each purchasing 50% of the assets with a fair value of $1,181 million and a carrying value of $250 million. As a result, BCE recorded a gain on investments of $233 million in*Other income (expense) *in 2012, representing 50% of the gain relating to the assets sold to the non-related venturer.*
 

86** BCE Inc.**  2014 ANNUAL REPORT		    
MD&A
SELECTED ANNUAL ANDQUARTERLY INFORMATION
**7**
 

 **2014**** **2013  2012  
**CONSOLIDATED STATEMENTS OF FINANCIAL POSITION**** **** **        
Total assets**46,297**** **45,384  40,969  
Cash and cash equivalents**566**** **335  129  
Debt due within one year (including bank advances, notes payable and loan secured by trade receivables)**3,743**** **2,571  2,136  
Long-term debt**16,355**** **16,341  13,886  
Total non-current liabilities**21,969**** **21,244  19,498  
Equity attributable to BCE shareholders**14,946**** **15,011  13,875  
Total equity**15,239**** **16,250  14,725  
**RATIOS**** **** **        
Total debt to total assets (times)**0.43**** **0.42  0.39  
Total debt to total equity (times)**1.16**** **1.05  0.98  
**CONSOLIDATED STATEMENTS OF CASH FLOWS**** **** **        
Cash flows from operating activities**6,241**** **6,476  5,560  
Cash flows used in investing activities**(3,570****)**(6,401)(4,101)
Capital expenditures**(3,717****)**(3,571)(3,515)
Business acquisitions**(18****)**(2,850)(13)
Business dispositions**720**** **1  –  
Acquisition of spectrum licences**(566****)**–  –  
Increase in investments**(38****)**(3)(593)
Cash flows (used in) from financing activities**(2,440****)**131  (1,507)
Repurchase of common shares**–**** **–  (107)
Issue of common shares**49**** **13  39  
Issue of preferred shares**–**** **–  280  
Net issuance of debt instruments**784**** **2,215  486  
Cash dividends paid on common shares**(1,893****)**(1,795)(1,683)
Privatization of Bell Aliant**(989****)**–  –  
Cash dividends paid on preferred shares**(134****)**(127)(133)
Cash dividends paid by subsidiaries to non-controlling interest**(145****)**(283)(340)
Free cash flow**2,744**** **2,571  2,428  
**SHARE INFORMATION**** **** **        
Average number of common shares (millions)**793.7**** **775.8  774.3  
Common shares outstanding at end of year (millions)**840.3**** **775.9  775.4  
Market capitalization**44,771**** **35,691  33,055  
Dividends declared per common share (dollars)**2.47**** **2.33  2.22  
Book value per share (dollars)**13.02**** **14.97  13.52  
Dividends declared on common shares**(1,960****)**(1,807)(1,720)
Dividends declared on preferred shares**(137****)**(131)(138)
Market price per common share (dollars)** **** **        
High (end of day)**54.21**** **48.43  45.06  
Low (end of day)**45.27**** **41.57  39.37  
Close**53.28**** **46.00  42.63  
Total shareholder return**21.7****%**13.6%5.9%
**RATIOS**** **** **        
Capital intensity (%)**17.7****%**17.5%17.6%
Price to earnings ratio (times)**17.88**** **18.04  13.45  
Price to book ratio (times)**4.09**** **3.07  3.15  
Price to cash flow ratio (times)**16.75**** **12.30  16.15  
**OTHER DATA**** **** **        
Number of employees (thousands)**57**** **56  56  
 

 
   
 **BCE Inc.**  2014 ANNUAL		REPORT 		87
**7**
SELECTED ANNUAL ANDQUARTERLY INFORMATION
MD&A 
 
 **7.2** Quarterly financial information
The following table shows selected BCE consolidated financial data by quarter for 2014 and 2013. This quarterly information is unaudited but has been prepared on the same basis as the annual consolidated financial statements. We discuss the factors that caused our results to vary over the past eight quarters throughout this MD&A.

 20142013
 **Q4**** **Q3  Q2  Q1  Q4  Q3  Q2  Q1  
Operating revenues**5,528**** **5,195  5,220  5,099  5,382  5,099  5,000  4,919  
Adjusted EBITDA**2,022**** **2,115  2,144  2,022  1,998  2,063  2,066  1,962  
Severance, acquisition and other costs**(58****)**(66)(54)(38)(48)(297)(28)(33)
Depreciation**(734****)**(739)(708)(699)(695)(683)(681)(675)
Amortization**(118****)**(116)(171)(167)(160)(162)(161)(163)
Net earnings**594**** **703  707  714  593  452  671  672  
Net earnings attributable to common shareholders**542**** **600  606  615  495  343  571  566  
Net earnings per common share** **** **                            
Basic**0.64**** **0.77  0.78  0.79  0.64  0.44  0.74  0.73  
Diluted**0.63**** **0.77  0.78  0.79  0.63  0.44  0.74  0.73  
Included in net earnings:** **** **                            
Severance, acquisition and other costs**(42****)**(45)(38)(23)(33)(222)(21)(23)
Net (losses) gains on investments**(8****)**–  4  12  (12)2  1  2  
Early debt redemption costs**(18****)**(3)–  –  –  (21)(3)(12)
Adjusted net earnings**610**** **648  640  626  540  584  594  599  
Adjusted EPS**0.72**** **0.83  0.82  0.81  0.70  0.75  0.77  0.77  
Average number of common shares outstanding – basic (millions)**837.7**** **782.1  777.7  776.5  775.9  775.9  775.9  775.7  
 

 
 **Fourth quarter highlights**
 

OPERATING REVENUES**Q4 2014**** **Q4 2013  $ CHANGE  % CHANGE  
Bell Wireless**1,649**** **1,505  144  9.6%
Bell Wireline**2,628**** **2,601  27  1.0%
Bell Media**789**** **821  (32)(3.9%)
Inter-segment eliminations**(126****)**(114)(12)(10.5%)
Bell**4,940**** **4,813  127  2.6%
Bell Aliant**700**** **688  12  1.7%
Inter-segment eliminations**(112****)**(119)7  5.9%
Total BCE operating revenues**5,528**** **5,382  146  2.7%
 
ADJUSTED EBITDA**Q4 2014**** **Q4 2013  $ CHANGE  % CHANGE  
Bell Wireless********529  56  10.6% |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|