**Exhibit 99.3****RECONCILIATION OF CANADIAN GAAP TO UNITED STATES GAAP**The following tables are a reconciliation of significant differences relating to the statement ofoperations and total shareholders’ equity reported according to Canadian GAAP and United StatesGAAP.RECONCILIATION OF NET EARNINGS               **2006**  2005  2004 **Canadian GAAP — Earnings from continuing operations**  **1,891**   1,834   1,395 Adjustments:            Deferred costs (a)  **3**   (1)  7 Net benefit plans (b)  **(11****)**  (65)  (75)Equity income (c)  **1**   46   52 Gain on sale of CGI (c)  **59**   —   — (Losses) gains on investments and derivative instruments (d) (f)   **1**   (1)  13 Gain on the distribution of Bell Aliant Income Fund units (j)  **1,540**   —   — Capitalized interest (l)  **43**   —   — Other  **—**   5   —           **United States GAAP — Earnings from continuing operations**  **3,527**   1,818   1,392 Discontinued operations — United States GAAP (c)(e)  **55**   82   159           **United States GAAP — Net earnings before extraordinary gain**  **3,582**   1,900   1,551 Extraordinary gain  **—**   —   69           **United States GAAP — Net earnings**  **3,582**   1,900   1,620 Dividends on preferred shares (d)  **(85****)**  (85)  (85)          **United States GAAP — Net earnings applicable to common shares**  **3,497**   1,815   1,535           **Other comprehensive earnings items**            Change in currency translation adjustment  **71**   (17)  (10)Change in unrealized (loss) gain on investments and derivative instruments (d) (f)   **(20****)**  21   (12)Additional minimum liability for pension obligations (b)  **1,106**   (1,093)  (66)Discontinued operations — Additional minimum liability for pension obligations (b)  **26**   (19)  (6)          Comprehensive earnings  **4,680**   707   1,441           **Net earnings per common share — basic**            Continuing operations  **4.00**   1.87   1.42 Discontinued operations  **0.06**   0.09   0.17 Extraordinary gain  **—**   —   0.07           Net earnings  **4.06**   1.96   1.66 **Net earnings per common share — diluted**            Continuing operations  **4.00**   1.87   1.42 Discontinued operations  **0.06**   0.09   0.17 Extraordinary gain  **—**   —   0.07           Net earnings  **4.06**   1.96   1.66 **Dividends per common share**  **1.32**   1.32   1.20 Average number of common shares outstanding (millions)  **861.4**   926.8   924.6           
 

 
**Statements of Accumulated Other Comprehensive Loss**           **2006**  2005 Currency translation adjustment  **(2****)**  (73)Unrealized gain on investments and derivative instruments (d) (f)   **5**   25 Net benefit plans (b)Additional minimum liability  **—**   (1,279)Net actuarial losses  **(1,355****)**  — Net past service costs  **(62****)**  — Net transitional obligations  **(95****)**  — Discontinued Operations — Additional minimum liability for pension obligations (b)  **—**   (26)       **Accumulated other comprehensive loss**  **(1,509****)**  (1,353)       **Reconciliation of Total Shareholders’ Equity**           **2006**  2005 Canadian GAAP  **13,367**   14,721 AdjustmentsDeferred costs (a)  **(31****)**  (35)Netbenefit plans(b)Additional minimum liability  **—**   (1,279)Valuation allowance  **75**   68 Net actuarial losses  **(1,594****)**  (223)Net past service costs  **(62****)**  — Net transitional obligations  **(95****)**  — Goodwill (g)  **68**   63 Discontinued operations (e)  **—**   (28)Unrealized gain on investments and derivative instruments (d) (f)   **32**   51 Capitalized Interest (l)  **371**   — Other  **3**   21        **United States GAAP**  **12,134**   13,359        DESCRIPTION OF UNITED STATES GAAP ADJUSTMENTS(a)   Deferred CostsUnder Canadian GAAP, certain expenses, such as development and pre-operating expenses, can bedeferred and amortized if they meet certain criteria. Under United States GAAP, these costs areexpensed as incurred.(b)   Net Benefit PlansOur accounting for future benefits for employees under Canadian GAAP and United States GAAP isessentially the same, except for the recognition of certain unrealized gains and losses.Canadian GAAP requires companies to recognize a pension valuation allowance for any excess of theaccrued benefit asset over the expected future benefit. Changes in the pension valuation allowanceare recognized in the consolidated statement of operations. United States GAAP does notspecifically address pension valuation allowances. United States regulators have interpreted thisto be a difference between Canadian and United States GAAP.Under United States GAAP, an additional minimum liability is recorded for the excess of theunfunded accumulated benefit obligation over the recorded pension benefit liability. An offsettingintangible asset equal to the unrecognized prior service costs is recorded. Any difference isrecorded as a reduction in accumulated other comprehensive income.
 

 
Effective December 31, 2006, we adopted the recognition requirements of Statement of FinancialAccounting Standards (SFAS) No. 158, *Employers’ Accounting for Defined Benefit Pension and OtherPostretirement Plans*, on a prospective basis. This new standard requires us to: **•** recognize the funded status of each benefit plan in the balance sheet by aggregatingthe status of all overfunded plans and recognizing that amount as an asset and aggregatingthe status of all underfunded plans and recognizing that amount as a liability. **•** recognize as a component of other comprehensive income, net of tax, the actuarial gainsor losses and past service costs or credits that arise during the period and are notrecognized as components of net benefit plans cost. **•** recognize corresponding adjustments in other comprehensive earnings when the actuarialgains or losses, prior service costs or credits, and transitional assets or obligationsremaining are subsequently recognized as components of net benefit plans cost.At December 31, 2006, the balance sheet, including additional minimum liability, was adjusted suchthat actuarial gains or losses, prior service costs or credits, and transitional assets orobligations that have not yet been included in net benefit plans cost at December 31, 2006 wererecognized as components of accumulated other comprehensive loss, net of tax. The adjustment atDecember 31, 2006 resulted in an increase of $1,339 million in accumulated other comprehensiveloss.At December 31, 2006, the total adjustment to the balance sheet relating to employee future benefits resulted in: **•** a decrease of $1,086 million in accrued benefit asset **•** an increase of $551 million in future income tax asset **•** an increase of $1,868 million in accrued benefit liability **•** a decrease of $339 million in future income tax liability **•** a decrease of $388 million in non-controlling interest **•** an increase of $1,512 million in accumulated other comprehensive loss **•** a decrease of $164 million in retained earnings.(c)  Equity IncomeUnder Canadian GAAP, we account for our joint venture investments using the proportionateconsolidation method. Under United States GAAP, we account for our joint venture investments usingthe equity method. There is no impact on net earnings.In 2005, we reclassified the results of our interest in CGI as a discontinued operation underCanadian GAAP. Under United States GAAP, we must continue to account for our investment in CGIusing the equity method until its disposal. An adjustment is made to reclassify the results of CGIfrom discontinued operations to continuing operations as equity income.On January 12, 2006, CGI bought 100 million of its Class A shares from us and we realized total netproceeds of $849 million. The gain on disposition was $79 million.On April 6, 2006, we exercised our CGI warrants to acquire Class A shares at a cost of $21 million.In addition, we recorded a loss of $17 million in the second quarter of 2006, which represented awrite-down of our remaining investment in CGI, which was available for sale, to fair market valuebased on its stock price at June 30, 2006.In addition, in 2006, we recorded a further loss of $1 million, which represented a write-down ofour investment in CGI, as a result of the Bell Canada pension fund’s acquisition of 31.4 million ofour CGI shares.(d)   Accounting for Derivative Instruments and Hedging ActivitiesUnder United States GAAP, all derivatives must be recorded on the balance sheet at fair value. Theeffective portion of the change in the unrealized gain (loss) on derivative instruments thatqualify for cash flow hedge accounting is reported in comprehensive earnings. In addition, anyineffectiveness measured on derivative instruments that qualify
 

 
for hedge accounting is reported in net earnings.We elected to settle the dividend rate swaps used to hedge $510 million of BCE Inc. Series AApreferred shares and $510 million of BCE Inc. Series AC preferred shares in the third quarter of2003. These dividend rate swaps in effect converted the fixed-rate dividends on these preferredshares to floating-rate dividends. They were to mature in 2007. As a result of the earlysettlement, we received total proceeds of $83 million in cash. Under Canadian GAAP, the proceedsare being deferred and amortized against the dividends on these preferred shares over theremaining original terms of the swaps. Under United States GAAP, these dividend rate swaps did notqualify for hedge accounting and were recorded on the balance sheet at fair value. As a result,the amortization of the deferred gain under Canadian GAAP is reversed for purposes of UnitedStates GAAP.(e)   Discontinued OperationsDifferences between Canadian GAAP and United States GAAP will cause the carrying values of the netassets of discontinued operations to be different.(f)   InvestmentsOur portfolio investments are recorded at cost under Canadian GAAP. Investments acquiredprincipally for the purpose of sale or repurchase in the near term would be classified under UnitedStates GAAP as held for trading and would be carried at fair value, with any gains or lossesincluded in earnings. Investments not classified as held for trading or held to maturity would beclassified as available-for-sale under United States GAAP and would be carried at fair value, withany unrealized gains or losses included in other comprehensive earnings, net of tax.(g)   GoodwillUnder Canadian GAAP, certain business combinations recorded in prior years have been accounted forat the carrying value of the underlying assets and liabilities exchanged, whereas under UnitedStates GAAP such transactions were recorded on a fair value basis.(h)   Accounting for Stock-Based CompensationWe adopted the fair value-based method of accounting for stock-based compensation on a prospectivebasis, effective January 1, 2002. Under Statement of Financial Accounting Standards (SFAS) No. 123,we are required to make pro forma disclosures of net earnings, and basic and diluted earnings pershare, assuming that the fair value-based method of accounting had been applied from the date thatSFAS No. 123 was adopted. We also adopted Statement of Financial Accounting Standards — Revised(SFAS) No. 123(R) which had no impact.The following table shows compensation expense for stock options and pro forma net earningsusing the Black-Scholes option pricing model.               **2006**  2005  2004 Net earnings as reported  **3,574**   1,900   1,620 Compensation cost included in net earnings  **8**   17   22 Total compensation cost  **(8****)**  (23)  (38)          Pro forma net earnings  **3,574**   1,894   1,604 Pro forma net earnings per common share (basic)  4.05   1.95   1.64 Pro forma net earnings per common share (diluted)  4.05   1.95   1.64           (i)   Presentation and Disclosure of GuaranteesUnder Canadian GAAP, guarantees do not include indemnifications against intellectual property rightinfringement, whereas under United States GAAP they are included. At December 31, 2006, suchindemnifications amounted to $1.2 billion, of which $100 million expires in 2007, $26 million in2008, $26 million in 2009, $8 million in 2010, $165 million in 2011 and after and $913 million withan indefinite term. We also have guarantees where no maximum potential amount is specified.
 

 
(j)   Bell AliantOn March 7, 2006, BCE Inc. and Aliant Inc. (Aliant) announced their intention to form a newregional telecommunications service provider in the form of an income trust. On July 7, 2006 thePlan of Arrangement forming Bell Aliant was completed. Bell Aliant combines Bell Canada’s formerregional wireline operations in rural Ontario and Quebec with Aliant’s former wireline operationsand includes Bell Canada’s former 63.4% interest in NorthernTel Limited Partnership (NorthernTel)and Télébec Limited Partnership (Télébec), the operating partnerships of the Bell Nordiq IncomeFund, held through Bell Nordiq Group Inc. (Bell Nordiq), an indirect wholly-owned subsidiary ofBell Canada.