BCE INC — Call Transcript 2026

Morning, ladies and gentlemen. Welcome to the BCE Q1 2026 results conference call. I would now like to turn the meeting over to Chris Summers. Please go ahead, Mr. Summers. Thank you, Matthew. Good morning, everyone, thank you for joining our call. With me here today are Mirko Bibic, BCE's President and CEO, and our CFO, Curtis Millen. You can find all our Q1 disclosure documents on the investor relations page of the bce.ca website, which we posted earlier this morning. Before we begin, I would like to draw your attention to our safe harbor statement on slide two, reminding you that today's slide presentation and remarks made during the call will include forward-looking information and therefore are subject to risks and uncertainties. Results could differ materially. We disclaim any obligation to update forward-looking statements except as required by law. Please refer to our publicly filed documents for more details on assumptions and risks. With that out of the way, I'll turn the call over to Mirko. Good morning, everyone. Thanks, Chris. Our Q1 results demonstrate continued disciplined execution across all four of our strategic priorities in what remains a competitive operating environment. Consolidated revenue is up 4% and adjusted EBITDA grew 2.9%. As we've outlined consistently, our capital allocation is organized around three priorities: to strengthen the balance sheet through disciplined deleveraging, fund our strategic priorities, and of course, return capital to shareholders through a sustainable dividend. We continued to execute against that framework in Q1. Most recently, we announced the divestiture of our Land Mobile Radio business to Motorola Solutions for CAD 675 million, and that's at an attractive valuation of approximately 10x EBITDA. The latest in a series of actions to simplify the business and accelerate our path to our leverage targets. We're making significant progress across each of our four strategic priorities as well. I want to walk you through them, starting with putting the customer first. I'm on slide 3. You see that we continue to advance a number of initiatives to improve the overall value proposition and service experience for our customers, including the expansion of internet contracts in Ontario, which give customers greater price certainty, continued scaling of hardware-free Fibe TV, and the full launch of our voice virtual assistant across Bell, Virgin Plus, and Lucky Mobile. Each of these supports longer-term, more stable customer relationships at a lower cost to serve. Fiber continues to be a key growth driver for us. In Canada, we added close to 43,000 residential FTTH subscribers in the quarter, with demand remaining solid across our footprint. Combined with the contribution from Ziply Fiber, total residential fiber net adds were close to 50,000, and internet revenue across our North American fiber platforms grew 15% year-over-year. In wireless now, Q1 was an unusually competitive quarter. Promotional activity across the industry extended well beyond typical seasonal windows. We were deliberate in how we responded, staying out of the most aggressive pricing early in the quarter and participating selectively where we saw longer-term value. That discipline is reflected in our results. Strong post-paid net adds of close to 17,000, a 21% increase in gross activations, and continued resilience in Bell-branded performance. Early indicators suggest the market is normalizing. Our focus remains on lifetime economics, not quarter-to-quarter volume. Video net subscriber additions swung to positive, improving approximately 26,000 year-over-year on strong uptake of the streaming bundles we launched in the second half of last year. That content pull-through, together with growing adoption of subscriptions across our fiber base, is driving meaningful momentum and product intensity, which is a key metric we're tracking against our Investor Day framework. Turning now to our third strategic priority, which is to lead an enterprise with AI-powered solutions. This is where I want to spend a bit more time today with you because Bell AI Fabric is creating considerable value in a very short period of time, and I want to make sure investors fully understand the story. Let me start with a simple framing. Bell sits at the intersection of secure, high-performance networks, trusted enterprise relationships, access to significant power, and now purpose-built AI infrastructure with a time to compute advantage. No other Canadian company has assembled this combination. It's very difficult to replicate. That's our competitive advantage. Last year, we outlined our ambition to lead in this space, and we introduced three businesses, Ateco, Bell Cyber, and Bell AI Fabric. Each is closely tied to our core strengths in connectivity, distribution, and trust. Since then, progress has only accelerated. I want to begin with Saskatchewan because it's a landmark investment for Bell and for the country's AI future. Less than two months ago, we announced a fully contracted 300 MW purpose-built AI data center in Saskatchewan. It's a transformational project that meaningfully improves our long-term growth profile and is incremental to the financial framework we laid out at Investor. Our construction partners have mobilized on-site and preliminary work is underway. I'll walk you through what that looks like on the ground when we get the slide pod. At full run rate, as we shared before, this facility alone is expected to contribute approximately CAD 500 million of revenue, CAD 400 million of EBITDA, and over CAD 250 million of free cash flow at an IRR of approximately 20% at the data center level, with additional upside from sovereign workloads and related services on top. Beyond Saskatchewan, our broader AI fabric ecosystem continues to scale. In late March, we launched our Merritt, B.C. facility. Consistent with our model, Bell is providing the building, power and cooling. The tenant supplies and funds all compute hardware. The facility uses a closed loop liquid cool design that does not draw from municipal water resources. The capacity at Merritt is part of the approximately 73 MW of AI Fabric capacity we referenced back in October. At this time, we have four fully contracted facilities, Mission Flats and Merritt, BC, which are both live, you know. We have Winnipeg, which will go live early in the second half of this year, and that one is on an operating lease basis. Those three constitute 29 MW of the 73 MW we guided to at Investor Day. Of course, we have Saskatchewan on top of that, which is under construction. We also continue to build out the sovereign AI solutions ecosystem during the quarter. We announced strategic partnerships with Coveo to deliver sovereign AI powered digital services, with Hypertec to deliver end-to-end sovereign AI infrastructure built, hosted and operate in Canada, and with SAP to strengthen Canada digital sovereignty with cloud and AI infrastructure, and post-quarter with Celestica to advance the development of a Canadian sovereign AI infrastructure stack. Each of these partnerships reinforces a critical point. Bell AI Fabric is not just about data centers. It's a full stack, Canadian controlled AI platform with infrastructure, connectivity, security, integration and services, working with best-in-class partners to meet the needs of governments, enterprises and research institutions that require their AI workloads to remain here in Canada. This brings me now to the financial results in enterprise. Bell Business Markets revenue, which we're disclosing for the first time this quarter, was up 9.7% in the quarter, driven by 113% growth in AI-powered solutions. That's a powerful number, and it reflects the compounding momentum across all three of our AI-powered businesses. I'll note that the Merritt facility contributed to the quarter, and Curtis will walk you through the financial details around that. We increased our AI-powered solutions revenue objective from approximately CAD 1.5 billion to approximately CAD 2 billion by 2028 when we made the Saskatchewan announcement, we're confident in that target. Frankly, I see potential beyond it. We have line of sight to monetizing approximately 800 MW of power over time, our pipeline of interest remains deep and active. In short, AI powered solutions is creating significant differentiated value for this company. It's closely tied to our core business. It's disciplined, demand led and return driven, and it's a growth vector that no other Canadian telecom has. Turning now to our fourth strategic priority, which is to build a digital media and content powerhouse. Our digital pivot in media is now well into its sixth year and the momentum is clear. When I became CEO in 2020, digital represented 19% of Bell Media's revenue, and today it's 46%. That's up three points year-over-year, and it's still growing. It's a fundamental transformation of this business and it's translating directly into subscriber growth, advertiser interest and new monetization streams. Q1 was the most watched quarter in Crave history. Our subscriber base grew 25% year-over-year to more than 4.7 million today, powered by a 59% increase in direct to consumer streaming subscribers. That's exceptional growth in any market. With our target of 6 million subscribers by 2028, we have a clear runway ahead. What's driving this is a combination of premium original content, a significantly expanded library, the streaming bundles we launched in the second half of last year, and continued improvements to the product experience, including targeted marketing offers, efforts, pardon me, in the French language market. Another recent addition is SNL, which will simulcast on Crave and CTV beginning this fall, one of the most watched shows on television and a strong signal of the content value we're building across those platforms. We also continue to solidify our long-term sports content leadership. Over the last few months, we extended regional media rights with the Senators, the Montreal Canadiens, the Winnipeg Jets, and became the new Canadian home of the Toronto Tempo and the WNBA. We expect to announce additional major rights renewals in the near future. These are important long duration agreements that reinforce our position as Canada's leading sports broadcaster across TSN in English and RDS in French. Sports content is the single most powerful driver of live viewership, advertising premium and subscriber retention, we intend to maintain our leadership. On that note and looking ahead, we're excited about the FIFA World Cup this summer. We have exclusivity on 104 games across our platforms, which presents a significant audience and monetization opportunity for Bell Media. The third element I want to highlight is our growing ability to monetize original content internationally. Our Crave original series, YAGA and The Office Movers, have been acquired by Sky for the U.K. and Ireland. Just last week, YAGA was acquired by AMC for the U.S. market, with additional territories expected to follow. This builds on the global success of Season Rivalry, which continued to generate cultural impact through Q1, earning a Peabody Award, multiple Canadian Screen Awards, and a second season renewal. The key here is that they aren't one-offs. They reflect a deliberate strategy to invest in premium Canadian storytelling and then extend the value of that content across the full value chain, including through our majority ownership of Sphere Abacus, our global content distribution arm. As a reminder, our focus is for Bell Media to deliver consistent annual revenue and EBITDA growth while contributing meaningfully to free cash flow for BCE. We're on pace to do exactly that in 2026. I want to pause now on slide 5 because I think it tells an important story. This is back to Bell AI Fabric. In the spirit of transparently tracking and communicating our progress on our strategic initiatives, let me provide you some more detail on the construction progress here. On the left, you can see our Mission Flats facility. That's the one in Kamloops, B.C., the very first one we opened last June. This is where Groq's AI inference technology is live and serving workloads today. Our second facility is the one in Merritt, B.C. That went from dirt to a fully operational AI data center in 9 months. Together, these experiences gave us a proven reproducible playbook for everything that's followed. On the right is Saskatchewan. This is what momentum looks like in real time. Our construction partners have mobilized on-site. You can see the earthworks underway, site stripping, pile load testing, heavy equipment on the ground. The development agreement has been approved by the Rural Municipality of Sherwood, and our development permit application is currently under review. We selected our early works contractors and over half a dozen additional trade contractors in the Regina region. Long lead equipment, including generators and cooling systems, have been ordered and on schedule. We expect all major permits in place by July, and we remain on track for the first phase to come online in the first half of next year. Let's take a step back and look at the trajectory. A year ago, Bell AI Fabric was an idea and a single facility in Kamloops. Today, we have the data centers I summarized earlier and line of sight to monetizing approximately 800 MW of power. Turning to slide 6. As you can see, we continue to track and measure ourselves against disciplined execution on the Investor Day targets we laid out last October. You can see a sample of those metrics on the slide and the progress. Before I turn it over to Curtis in a moment, I want to touch on two more things: capital allocation and capital investment. On capital allocation, we've been very consistent. In February 2025, we laid out a clear plan. Simplify the business, strengthen the balance sheet, focus capital on higher return opportunities. We reinforced all of that at Investor Day with significant transparency around everything we were gonna do. We're committed to continue to share our progress transparently and regularly, and that's what we continue to do today. Since then, we've been executing one step at a time. We completed the sale of our interest in MLSE at a 10-time return. We exited Bell Smart Home, most recently, of course, the Land Mobile Radio divestiture. The roadmap hasn't changed. We're gonna optimize the balance sheet, we're gonna fund the strategic priorities, which are high growth, we're gonna return capital to shareholders through our sustainable dividend. We're gonna do that while maintaining the financial discipline and the flexibility to execute against our three-year plan. A reminder, we're only one quarter into that three-year plan. On CapEx, as early as 2023, we saw where the environment was headed. We made deliberate choices back then to reduce spending on legacy segments and reallocate investment to growth segments. That's what we've done. That's what we're gonna continue to do. Our Canadian telecom CapEx has decreased by over CAD 2 billion from CAD 5.1 billion in 2022 to below CAD 3 billion in 2026. That's putting aside the highly accretive AI Fabric investments. Our underlying Canadian CapEx intensity is approximately 12%, with wireless capital intensity at an industry low 7%. Our Canadian telecom CapEx will continue to decline. In the current environment, we've seen others in the industry recalibrate their capital spending. We totally understand that because it's what we've been doing. We laid out this discipline clearly at Investor Day, and we've been executing against it for three-plus years. What makes our story different is where we're investing the capital we do deploy. We have a significant growth sector in AI-powered solutions that's intrinsically tied to our core business and that no one else in Canada has. Our capital allocation is shifting toward higher return growth opportunities like Bell AI Fabric and our U.S. fiber plan as we maintain discipline on the core telecom side. Before I hand it over to Curtis, I want to acknowledge our entire Bell team. The results we're sharing today reflect the dedication and focus of everyone who works for this company across the country and in the U.S., serving our customers, growing the business, and executing on the plan we've laid out. I'm proud of what the team is doing. Curtis, over to you now to take the team through the Q1 financial and operating results in detail. Thank you. Thank you, Mirko, and good morning, everyone. I'll begin on slide 8 with BCE's consolidated financial results. Total revenue grew 4% from the quarter, driven by the contribution from Ziply Fiber and continued strong momentum at Bell Business Markets, where AI-powered solutions revenue more than doubled year-over-year. Adjusted EBITDA was up 2.9%, driven by the contribution from Ziply Fiber and the flow-through of higher product revenue. Margin declined 40 basis points to 42.7%. As we previously indicated, the mix of growth in the business is evolving. Some of our higher growth services naturally carry a different margin profile than our legacy businesses, which tend to be a higher margin. Our focus is on driving absolute EBITDA dollar growth and free cash flow growth. Adjusted EPS was down CAD 0.06 compared to last year, reflecting higher depreciation and amort expense and interest costs, consistent with our 2026 guidance assumptions. On CapEx, total CapEx, total capital expenditures were up 15.4%, reflecting Ziply Fiber build out in the U.S. and capital investments to support the growth of our Bell AI Fabric business as we build our data centers across Canada. Free cash flow increased 0.8% to CAD 804 million. I would note that beginning this quarter, we updated our definition of free cash flow to exclude income taxes paid on significant investors, which improves comparability quarter-over-quarter, year-over-year, and does not affect any previously reported amounts. In Q1, we paid CAD 542 million in income taxes related to the MLSE sale. That amount is excluded from the free cash flow figure I just referenced. It does impact cash flows from operating activities, which analysts should keep in mind when reviewing the cash flow statement. Turning to Bell CTS Canada on slide 9. Wanna highlight a few disclosure enhancements this quarter that we believe will be helpful for investors. First, we've updated our Internet sub-metrics to include wholesale subscribers. It is consistent with how we reported prior to 2019 and reflects the impacts of the CRTC's mandated fiber access decision on how we operate the business. We've also introduced an additional residential fiber level metric. Previously reported 2025 figures have been restated for comparability. Second, we've broadened our IPTV subscriber definition to include bundled streaming service subscribers, customers who subscribe to a package that includes at least one third-party streaming service and one BCE streaming service. This is now reported under a new video subscriber metric, and again, 2025 figures have been restated. With that context, let me walk through the sub-metrics, starting with wireless. Strength of our distribution network and the premium Bell brand helped deliver 16,947 postpaid mobile phone net adds in an unusually competitive quarter, compared to a net loss of close to 10,000 in Q1 of last year. Postpaid churn was 1.34%. After three consecutive quarters of year-over-year improvement through Q4, the trend reversed in Q1, reflecting a higher number of switchers driven by some of the most aggressive competitive offers we've seen in a seasonally low volume quarter. As the competitive environment normalizes, we expect the improving trend to resume. Our customer first initiatives continue to take hold. ARPU was down 0.8%, consistent with the Q4 decline and significantly improved from the 1.8% decline in Q1 of last year. The decrease reflects the flow-through of the more aggressive pricing environment. We've been encouraged to see a return to more rational behavior in April and continue to focus on premium Bell branded subscribers and fiber-led bundling to support the quality of our subscriber mix. Moving to Internet. Residential Fiber-to-the-Home net adds, our new separately disclosed metric totaled 42,750 in the quarter. A strong result. Where we have fiber, demand remains solid and our market share position continues to be strong. Turning to video. Video net adds totaled 10,103 in the quarter, compared to a net loss of close to 16,000 in Q1 last year, an improvement of approximately 25,000-26,000 year-over-year. This was driven by strong uptake of the streaming bundles we launched in the second half of last year. It speaks directly to the product intensity momentum and MRR efforts. Turning to the financial results for Bell CTS Canada. Bell Business Markets was a clear highlight this quarter. BBM revenue grew 9.7% in Q1, driven by 113% growth in AI-powered solutions. That's Ateco, Bell Cyber and Bell AI Fabric combined. All three components contributed to this growth result. Beginning in Q1, we're providing incremental transparency by disclosing BBM operating revenues with a service and product split, consistent with the transparency commitments we made at Investor Day. In late March, we launched our second Bell AI Fabric data center in Merritt, B.C. Revenue and EBITDA were recognized upon delivery under finance lease accounting. Going forward, we expect the majority of our Bell AI Fabric agreements to be structured as operating leases, including our Winnipeg data center and our announced Saskatchewan data center. The accounting treatment has no impact on the free cash flow we expect to capture over the term of the agreement. Wireless service revenue was down 0.6%. The improving trajectory we saw through 2025 was disrupted by the competitive pricing environment in Q1. Wireless product revenue was down 6.3%, reflecting fewer device upgrades and lower contracted sales as the market shifted toward bring your own device activations. Turning to Bell CTS U.S. on slide 10. Ziply Fiber continues to perform in line with our expectations and the plan we shared with investors. Q1 total revenue was $234 million. Adjusted EBITDA was $102 million, representing a 43.6% margin, an improvement from 43.1% in Q4. Margin performance reflects continued operating discipline and efficiencies within the business. On the subscriber front, Ziply added nearly 7,000 net new fiber customers in the quarter. Penetration across new and existing markets tracking consistent with historical cohort performance. Where we have fiber, we continue to win our share. The Ziply's plan to reach approximately 3 million fiber passings by the end of 2028 is on track. As construction ramps through the balance of the year, we expect both operating and subscriber momentum to accelerate. Over to Bell Media on slide 11. Total revenue was up 0.4% in the quarter. Subscriber revenue grew 11.8%, driven by continued strength in Crave and sports D2C streaming, as well as the benefit of a retroactive adjustment related to a contract renewal with a Canadian TV distributor. Advertising revenue was down 12.8%, reflecting continued softness in non-sports traditional advertising demand, lower audio revenue following last year's radio station divestitures, the absence of the prior year benefit from the federal election, and the shift of advertising dollars to the principal broadcaster of the 2026 Olympic Winter Games. That said, our digital strategy continues to have significant momentum. Total digital revenues now represent 46% of Bell Media revenue, up three points from a year ago. Operating costs were up 1.1%, driven by contractual content cost increases for premium sports and entertainment programming, partly offset by lower labor costs and operating efficiencies, resulting in an EBITDA decline of 2.5%. As Mirko noted, we remain on pace to deliver positive revenue and EBITDA growth for the full year. Turning to the balance sheet on slide 12. We ended Q1 with CAD 4.3 billion of total available liquidity, up from CAD 2.5 billion at year-end, supported by a CAD 1.5 billion hybrid note issuance completed in February and a CAD 750 million public debt offering in late March. Our liquidity position is strong and provides significant financial flexibility. Our defined benefit pension plans remain in excellent shape with a solvency surplus of approximately CAD 4.5 billion And a solvency ratio of approximately 123%. We continue to benefit from a full contribution holiday. Net debt leverage was approximately 3.8x at the end of Q1, essentially unchanged from year-end. A couple of important items to unpack here. First, we paid CAD 542 million of cash taxes in Q1 related to the CAD 4.7 billion sale of our MLSE stake. That's a one-time cash outflow that is excluded from our free cash flow definition, but did reduce cash on hand in the quarter. Second, our reported leverage still reflects only 8 months of Ziply Fiber EBITDA in the trailing 12-month calculation. On a pro forma basis, adjusted to include a full 12 months of Ziply Fiber EBITDA, our net debt leverage ratio would be approximately 3.7x. Looking ahead, we have clear line of sight to further deleveraging. The announced disposition of our Land Mobile Radio Network services business to Motorola Solutions for CAD 675 million is expected to close in Q4, and upon closing, will improve our net debt leverage ratio by approximately 0.04x. We remain firmly on track to achieve our target net debt leverage ratio of 3.5x by the end of 2027, and to move below that level in 2028 while we continue to fund our strategic growth priorities. Turning to our 2026 financial targets on slide 13. As a reminder, we updated our 2026 guidance on March 16th solely to reflect the expected financial impact of the Saskatchewan AI Data Center. Table on the slide shows both the original February guidance and the revised March guidance side-by-side so you can see the impact of our build in 2026. We expect to begin recognizing revenue and EBITDA from Saskatchewan in 2027. We remain confident in our full year guidance ranges. We're delivering on the commitments we made on deleveraging, on capital discipline, and on free cash flow growth. With that, I'll turn the call back over to Chris and the operator to begin Q&A. Thank you, Curtis. Before we start Q&A, I just want to remind everyone that due to time constraints this morning, because of our AGM taking place after this call, please limit yourselves to just one question and a brief follow-up so that we can get to as many in the queue as possible. With that, Matthew, we're ready to take our first question. Okay. Our first question is from Drew McReynolds from RBC. Please go ahead. Yeah, thanks very much, and good morning. Just Mirko on the regulatory environment. You know, I think it's a little bit confusing on the wireless side. There's some kind of archaic, kind of, price control type things being implemented. On the wireline side, looks like we've got a relatively constructive TPIA and a final access rates on fiber. Out of Ottawa, it looks like they want to build, but sometimes that's not obvious in telecom. Love to just get a 30,000-foot updated view from you. In terms of the CapEx reduction across the space. Just how could that evolve over time if the investment climate, i.e., regulatory environment improves? Thank you. Yeah, thanks for the question, Drew. I think the company BCE's views on kind of the regulatory environment writ large are pretty, you know, pretty well-known. We've been staunch defenders of facilities-based competition, but, you know, facilities-based competition are premised on an environment where companies are encouraged to invest in their networks, and that drives long-term sustainable competition. I'm not gonna kinda re-litigate all of that. Also don't intend to re-litigate the wholesale access decision for fiber. Views are well-known on that. When you put all these things together, whether or not it's the kind of more kind of micro rules that are coming out wireless that you refer to or the, you know, the bigger, kind of more policy-oriented, fundamental rules like fiber access, put all those together, and clearly it's having an impact on investment in the industry. This is something that I personally have been talking about for as long as I've operated in the industry, which is January 2004. A staunch believer that if you create a framework that encourages investment will come. If you create an environment that discourages investment will suffer. You just take a look at Now I would refer back to 2022 because that's when we started to pull back on core Canadian telecom CapEx. If you just look at the capital investments over that short period of time in our industry on an annual basis, I mean, literally multiple billions of dollars of annual CapEx that are no longer being invested. I mean, that's frankly unfortunate. Look what we're doing. You know, we're being very, very disciplined in our core segment, capital allocation, especially being very disciplined on legacy segments within the, you know, the core business. Thankfully, and we saw this a couple of years ago. Thankfully, we've developed some highly differentiated opportunities where we can deploy capital in high growth, high return segments that aren't regulated. That's how we've pivoted. If the environment for the core businesses in the country were to shift, I'm sure capital would flow back in. I'll leave it at that. Okay. I'll leave it there as well, just given time. Thank you. Thank you. Our next question is from Maher Yaghi from Scotiabank. Please go ahead. Great. Thank you for taking my question. I just wanted to double down on the Saskatchewan investment. You guys mentioned you disclosed that you're gonna get CAD 400 million of prepayments and set-up fees. How have you received any of those in Q1, or when should we expect to see those flow into your balance sheet? Will they show up in the cash flow statement, in working capital or, you know, or deferred revenue is going to start showing those numbers? The second question on that is, can you provide some of the contractual protections you have with those customers in Saskatchewan, if there were delays, downsizing or exits from them, you know, in terms of termination fees, minimum payments, credit support, et cetera. Again, finally on that, you know, with the schedule that you have to, you know, to have full capacity run rate by late 2027, what are the key, you know, building milestones that we should be thinking about in order to assess your advancement on that project? Thank you. I'll jump in. Hi, Maher. There's a lot to unpack, so we'll circle back if we miss anything. No, in terms of spend to date, we have spent some CapEx in Saskatchewan, but it's less than CAD 20 million in quarters. Again, some spending we're off and running, but no payments that we've made that would then be refunded. Again, that would reduce our net capital at risk, but that hasn't happened yet. I mean, ultimately, we're looking to spend more CapEx. I'd say Q2 and Q3 are gonna be the heavier CapEx spends, where purchase orders for equipment, as Mirko said, over 90% of our equipment, we have purchase orders in. When that equipment starts coming in, CapEx will go up and we'll make sure to disclose what is gross, what is net, and what refunds have actually been credited along the way. To flip to your next question, you know, we do have standard protections. Won't list them all, but it is a take or pay contract. It's not, it's not a contract where, okay, they only need 60% along the way and then ramps up. It's a, it's a take or pay contract. In terms of milestones along the way, again, we'll be transparent. We'll provide information along the way. I think there are a few different phases. One is, permitting and getting the site ready, which you see is well underway. The earthworks, the piling. The second is putting up the four walls, which eventually you'll see on site. We're actually doing some prefab work offsite right now so that we again remain efficient in our timeline. I would say prep work, prefab, start putting up walls and then. That's cooling, et cetera. We'll keep our rest, but that's how I kind of bucket the different milestones. Thank you, Curtis. Thank you. Our next question is from Stephanie Price from CIBC World Markets. Please go ahead. Hi. Good morning. I'll stick with AI and Mirko, I think you mentioned upside that you see to the CAD 2 billion 2028 AI-powered solutions target. Just curious if you can give us any updates on line of sight to deploying, the additional, I think it's about 400 MW of power, or any additional data points you have on the demand environment here. Well, I think I shouldn't be too specific other than to say very high degree of confidence in our ability to monetize the 800 MW for a reasonable period of time. That very high degree of confidence comes from the nature of the discussions we're having with a number of significant, you know, potential customers. You know, very significant customers. The conversations are in great shape, and that would be both on AI Fabric and certainly there's momentum in the parts of the AI solutions business that is outside the data centers. The ancillary services, a lot of momentum there. Again, if you take a look at AI-powered solutions generally, even if you pull out the Merritt facility, there's been a strong growth there across Ateco and Bell Cyber. Just a reminder, just back to your question, Stephanie. We did say put Saskatchewan aside because that was incremental. If you go back to the fairly conservative 73 MW that we said we would monetize over a three-year period, we're already 40% of that 73 MW fully contracted, and we're only one quarter into basically a three-year guide. Didn't think we'd be 40% of the way there at the end of Q1 when we outlined the plan back in October. That's why I'm expressing the high degree of confidence. Thank you very much. Thank you. Our next question is from Tim Casey from BMO Capital Markets. Please go ahead. Good morning. Mirko, both you and Curtis, in your comments talked about when pricing normalizes coming out of Q1. Can you just walk through, you know, why you think that? I mean, what's gonna change in behavior given we're in a low growth environment and a high penetration environment? What gives you confidence that that pricing environment in both wireless and wireline is gonna improve going forward? Thanks for the question, Tim. I mean, the first data point is that you know, so far in Q2, we're only a month in. Pricing has stabilized, that's a positive sign. Second point is just generally as we operate. When you're in a low growth environment, I subscribe to kind of what analysts like have been saying, which is in that low growth environment, pricing discipline should prevail over everything else. I don't plan to get into who did what in Q1 and when, but I will emphasize what our plan has been, and it's consistent. Focus on the premium Bell brand, where we have the better ability to increase product intensity. By the way, in product intensity, I'm obviously referring to both fiber and the streaming content bundles that we have. We will have to continue to differentiate ourselves on customer experience. Going back, kind of, first lines in Q2, positive in terms of price stability. Secondly, we don't plan to lead on pricing, and we're gonna focus on overall value prop. We're gonna optimize lifetime economics, but ultimately it is a competitive market, so we have to kind of check and adjust along the way every once in a while. So far, so good in Q2. How about on the bundling side? Are you seeing any lessening or moderation of intensity there? Yeah. Hi, Tim. No, on the on the fiber-led bundling, it's actually up a little bit in Q1 versus our embedded base. No, no signs of slowing down. Again, we do have the biggest fiber footprint in Canada. We're certainly leveraging that product advantage. Thank you. Thank you. Our next question is from Sebastiano Petti from JPMorgan. Please go ahead. I've got a quick housekeeping question. If you could provide the, I guess, wholesale contribution to retail Internet adds in the first quarter, because I think if you look at it on an adjusted basis, retail wholesale was a drag or a decline in 1Q of20 25. I wasn't sure if maybe you could provide us with the wholesale contribution in 1Q 2026. We kinda have a like for like as we kinda think about the subsequent quarters. That's the 1st question. Then second question, obviously lots of focus around, you know, satellite broadband and directed device, you know, connectivity on the wireless side as well. I guess, are you seeing any impact from satellite broadband in your maybe more rural non-fiber markets? Obviously, you know, fiber wins in the FTTH footprint. Above and beyond that, are you seeing any maybe incremental nibbling on the margins there? you know, lots of headlines recently with AST SpaceMobile, I guess maybe help us think about how you see that product evolving over time or where your kind of ambitions are there, obviously, and how do you kinda see it Table stakes going forward as you kind of think about your consumer lead or trying to meet your consumers where they are in terms of product demand? Thank you very much. Thanks, Sebastiano. I'll do the second part and then, Curtis, you can handle the first question. On the second part, look, we're really, we're really excited about our partnership with AST and the upcoming service that we'll be able to deliver to Canadian consumers to solidify the network experience they have with us, particularly on the fixed device side where we don't have coverage. That's going to be the principal use case for us. Re-recognize that with AST, we'll be able to provide voice, broadband, streaming, data, all of it. Quite excited about the partnership with AST. We're in the cap table, so we're excited about that too. That's on AST. More broadly on satellite broadband and its impacts in rural. Satellite broadband, generally speaking, like, now I'm gonna give you a macro answer. We're not seeing it have an impact where we have fiber, and you can see that in our strong fiber numbers. You know, nothing replaces fiber, frankly, for broadband. In rural areas, you know, where we have, you know, legacy copper, low speed, DSL, that's not competitive. Whether or not it's a tier one cable or fixed wireless or satellite broadband, you can expect to continue to see losses where we have where we have DSL. You know, that's just the facts and whether or not it's broadband, a satellite broadband or something else that's eating away at our customer base there, kinda really doesn't matter which one it is. That's kinda my answers there. I hope that's helpful, Sebastiano, on satellite broadband and on AST. Thanks, Sebastiano, on the first part of your question. We did restate 2025, it is apples-to-apples. You know, going forward, that is how we're gonna report. We do think it's just how we monetize the network in this current reg environment. We think it's more appropriate to share it on a combined basis. Again, it is apples to apples, period over period. Yeah. If we look at the new reporting versus the old reporting, you can see that there's a decline in, like, oh, it's, you know, 6,000 in 1 Q. Right. On your new reporting relative to your old reporting. I wasn't sure if there's Wholesale is a contributing factor to the 14 or is it? Would report it have been higher or lower without wholesale? Is the question essentially. Yeah. I would assume wholesale impact year-over-year has had a bigger impact, given the reg environment. Again, it is full monetization of our network going forward. You know, everything is driving revenue. The retail performance remains quite strong. I mean, retail, I mean the, our own branded performance remains quite strong. That's helpful. Thank you, guys. Thank you. Our next question is from Jérôme Dubreuil from Desjardins Securities. Please go ahead. Hey, good morning. Thanks for taking my questions. Two on Bell AI Fabric. The 1st one is a follow-up to Stephanie's question on the 427 MW of power that is not contracted yet. You said, you're pretty confident to be able to monetize that. Any chance you can talk about whether this could be made at kind of similar IRRs and what you're talking about on the Saskatchewan side? The second one on Bell AI Fabric is, if you can kind of quantify or talk about your ability to be to secure additional power going forward in Canada. Thank you. Thanks, Jérôme. Yes. The first question is, yes, we're still, you know, we have our eyes set on, or objective set on, you know, strong returns through monetization of the remaining power we have access to. Remember, and I reiterated this in my opening remarks, our approach on all this is going to be return led, demand driven. Get the demand, sign the contracts, invest the capital, build, generate the returns. Return driven demand, you know, return led, demand driven. On, you know, is there the possibility of having more than 800 MW to monetize? Yes, that is possible. We keep looking at opportunities. You know, we have nothing to announce in terms of, you know, access to power beyond 800 MW, but it's something we're looking at. You know, if the opportunities arise, we will definitely seize upon them. Thank you. Thank you. Our next question is from Vince Valentini from TD Securities. Please go ahead. Hey, thanks very much. Clarification first. Curtis, can you give us what the revenue e was from the Merritt, BC facility this quarter? Second, we're talking about these subs and the definition changes. Fine, it makes perfect sense to count wholesale and to count streaming subs. Can I just, like, make sure you're not changing any executive compensation formulas to give yourselves bonuses based on subs, given the change in definition? It's just you're changing it because you think that's a more transparent way to show it to us? No. Sub growth, sub volumes, connections, none of that is baked into any of the metrics for our compensation. Our compensation is based. Certainly, the long-term compensation, Vince, as you know, we've talked about this before, is based on driving free cash flow and hitting our leverage targets. Then, Vince, to your question on Bell AI Fabric. If you look to the product revenue change year-over-year, it's about CAD 100 million. You can, you know, roughly that's the impact of the finance lease facility. One more thing actually on the. Okay, Vince, mind if I just jump in here on the, on the question around the sub metrics and particularly around the content ones? Because I think Curtis has handled already the fiber subs. On the streaming bundles, let me explain that, kind of, the philosophy behind the change. If you go all the way back to 1999 when we launched satellite TV, what the Bell consumer business has been offering to consumers is bundled content. That's what we offer. That was with satellite TV at first, and then we had Fibe TV gen 1, gen 2, gen 3, and, you know, we're into hardware-free TV, and now we're into streaming content bundles. All of those is just about providing bundles of content to consumers. We shouldn't kinda measure ourselves based on the technology we use to deliver that. It's the fact that we're delivering bundled content. That's why we changed the subscriber metrics for TV. No, appreciate that, Mirko. Just Curtis, sorry. On the CAD 100 million revenue, we kind of derived that, I agree, from the product revenue. It's really EBITDA, the margins. I mean, I assume this is positive margin product revenue or, like, 20%-25% margin. Is that somewhere in the ballpark? Yeah, I'd say it's a little higher than that and in line with the numbers we provided for the entirety of the 73 MW portfolio. Thank you. Thanks, Vince. Thank you. Our next question is from Batya Levi from UBS. Please go ahead. Great. Thank you. Can you talk a little bit about the trends that you're seeing in the U.S., maybe in terms of the competitive intensity and pricing you're seeing in the market? A quick reminder of Ziply's contribution for revenue and EBITDA would be helpful. I think you had mentioned that you would expect revenues to grow double digits. Is that still the outlook? Thank you. The first one, I'll take the first one, Mirko, Batya Levi. The underlying fundamentals for Ziply are there. They remain there. The demand for fiber is very strong. Customers prefer fiber. It's no different in the U.S. than it is in Canada, as you know. Particularly where we have fiber, the penetration gains are following the profile that, you know, Ziply's had since its inception and creation in 2020 and in line with what we see at Bell where we have fiber. All the, you know, the long-term economics, all remain very, very supportive on that front. As far as the competitive dynamics are concerned, again, when I'm saying that our penetration gains where we have fiber remain as expected and in line with what we've seen in the past, that includes in the more recent period where some of the cable competitors have been more aggressive on pricing. More recently, we've seen better stability or more stability on broadband pricing where we operate in the U.S. from our major competitors compared to perhaps the end of last year. And then in terms of the contribution- Got it. In Q1, Batya, it's Curtis, right? It's CAD 234 million of revenue and just over CAD 100 million of EBITDA. You know, representing growth, if you just multiply it by 4, versus the 0.9 that we talked about in 2025 for Ziply Fiber. Ultimately, the growth for us is continue to drive our footprint expansion, leverage our partnership with PSP to fund incremental footprint build. I would say Q1 of 2026 was the first time that Network FiberCo actually deployed capital. That will continue to ramp and continue to help Ziply drive penetration and subscriber growth. The real growth metric for us is by the time we get to 2028, right, drive way more subs and significant revenue and EBITDA growth. On a short-term, percent growth will be good, but, you know, we're looking for total CAD of contribution, as we continue to ramp and get through some of the initial ramps. 2027, 2028 financials are what I'm focused on. Got it. Thank you. Thank you. Our next question is from Matthew Griffiths from Bank of America. Please go ahead. Hi, thanks for taking the question. I just wanted to circle back again to the AI-powered revenue. Just some clarifications, maybe just for my benefit. For the AI Fabric, is all of that revenue gonna get grouped into the product revenue as these facilities come online? The growth in AI-powered revenue overall seems to be, and maybe you can give some color on, you know, the other, like Ateco and fiber's contribution to that growth, because just it's partially because of the Merritt facility being delivered. That was near the end of the quarter, and I can't imagine that was at that stage a really big driver of the year-over-year increase. Just, you know, maybe some details on, like, the other part of the three-legged stool that is driving that line would be helpful. Thanks. Sure. Hi, Matt. It's Curtis. The Merritt facility is recognized as a finance lease. Yes, it does get, it benefits the product revenue, and that's the roughly CAD 100 million year-over-year increase that you would see there. The first two facilities, Mission Flats and Merritt, both accounted for as finance leases. Again, the accounting, the revenue and EBITDA accounting follows the contract. There is no difference at all in free cash flow. We capture free cash flow over the term of the contract, we'll continue to reap the free cash flow benefit over time. The Winnipeg facility is operating lease. That's why you don't see much of a benefit in this quarter. Again, free cash flow over time, revenue, service revenue and EBITDA over time as well as CapEx. Again, for Winnipeg operating lease, you saw CapEx in Q1 we actually spent, but you haven't seen the impact or the benefit of revenue and EBITDA. When you look at Saskatchewan, again, that's operating lease. You're seeing the burden of CapEx hit our financials. Revenue will be service revenue over time, and EBITDA will be captured over time as well. We do expect the majority of our Bell AI Fabric contracts signed going forward to have operating lease treatment. Okay, got it. Then the contribution of the, you know, to the growth from fiber or Ateco or are you just saying it was all from Fabric? No. If you strip away AI Fabric from AI power solutions. Ateco and Bell Cyber collectively are both growing and collectively north of 30% year-over-year growth. Okay, thanks. Well, I think that that was our last question, just given timing here. Thank you all again for your participation on the call this morning. Richard and I will be available throughout the day for follow-up questions or clarifications. Thank you to all and have a great day. Thanks, everyone. Thanks. Thank you. The conference has now ended. Please disconnect your lines at this time, and we thank you for your participation.

Speaker 9: Morning, ladies and gentlemen. Welcome to the BCE Q1 2026 results conference call. I would now like to turn the meeting over to Chris Summers. Please go ahead, Mr. Summers. Morning, ladies and gentlemen. morning ladies and gentlemen Welcome to the BCE Q1 2026 results conference call. welcome to the bce q1 2026 results conference call I would now like to turn the meeting over to Chris Summers. i would now like to turn the meeting over to chris summers Please go ahead, Mr. Summers. please go ahead mr summers

Speaker 2: Thank you, Matthew. Good morning, everyone, thank you for joining our call. With me here today are Mirko Bibic, BCE's President and CEO, and our CFO, Curtis Millen. You can find all our Q1 disclosure documents on the investor relations page of the bce.ca website, which we posted earlier this morning. Before we begin, I would like to draw your attention to our safe harbor statement on slide two, reminding you that today's slide presentation and remarks made during the call will include forward-looking information and therefore are subject to risks and uncertainties. Results could differ materially. We disclaim any obligation to update forward-looking statements except as required by law. Please refer to our publicly filed documents for more details on assumptions and risks. With that out of the way, I'll turn the call over to Mirko. Thank you, Matthew. thank you matthew Good morning, everyone, thank you for joining our call. good morning everyone thank you for joining our call With me here today are Mirko Bibic, BCE's President and CEO, and our CFO, Curtis Millen. with me here today are mirko bibic bce's president and ceo and our cfo curtis millen You can find all our Q1 disclosure documents on the investor relations page of the bce.ca website, which we posted earlier this morning. you can find all our q1 disclosure documents on the investor relations page of the bce.ca website which we posted earlier this morning Before we begin, I would like to draw your attention to our safe harbor statement on slide two, reminding you that today's slide presentation and remarks made during the call will include forward-looking information and therefore are subject to risks and uncertainties. before we begin i would like to draw your attention to our safe harbor statement on slide two reminding you that today's slide presentation and remarks made during the call will include forward-looking information and therefore are subject to risks and uncertainties Results could differ materially. results could differ materially We disclaim any obligation to update forward-looking statements except as required by law. we disclaim any obligation to update forward-looking statements except as required by law Please refer to our publicly filed documents for more details on assumptions and risks. please refer to our publicly filed documents for more details on assumptions and risks With that out of the way, I'll turn the call over to Mirko. with that out of the way i'll turn the call over to mirko

Speaker 8: Good morning, everyone. Thanks, Chris. Our Q1 results demonstrate continued disciplined execution across all four of our strategic priorities in what remains a competitive operating environment. Consolidated revenue is up 4% and adjusted EBITDA grew 2.9%. As we've outlined consistently, our capital allocation is organized around three priorities: to strengthen the balance sheet through disciplined deleveraging, fund our strategic priorities, and of course, return capital to shareholders through a sustainable dividend. We continued to execute against that framework in Q1. Most recently, we announced the divestiture of our Land Mobile Radio business to Motorola Solutions for CAD 675 million, and that's at an attractive valuation of approximately 10x EBITDA. The latest in a series of actions to simplify the business and accelerate our path to our leverage targets. Good morning, everyone. good morning everyone Thanks, Chris. thanks chris Our Q1 results demonstrate continued disciplined execution across all four of our strategic priorities in what remains a competitive operating environment. our q1 results demonstrate continued disciplined execution across all four of our strategic priorities in what remains a competitive operating environment Consolidated revenue is up 4% and adjusted EBITDA grew 2.9%. consolidated revenue is up 4% and adjusted ebitda grew 2.9% As we've outlined consistently, our capital allocation is organized around three priorities: to strengthen the balance sheet through disciplined deleveraging, fund our strategic priorities, and of course, return capital to shareholders through a sustainable dividend. as we've outlined consistently our capital allocation is organized around three priorities to strengthen the balance sheet through disciplined deleveraging fund our strategic priorities and of course return capital to shareholders through a sustainable dividend We continued to execute against that framework in Q1. we continued to execute against that framework in q1 Most recently, we announced the divestiture of our Land Mobile Radio business to Motorola Solutions for CAD 675 million, and that's at an attractive valuation of approximately 10x EBITDA. most recently we announced the divestiture of our land mobile radio business to motorola solutions for cad 675 million and that's at an attractive valuation of approximately 10x ebitda The latest in a series of actions to simplify the business and accelerate our path to our leverage targets. the latest in a series of actions to simplify the business and accelerate our path to our leverage targets We're making significant progress across each of our four strategic priorities as well. I want to walk you through them, starting with putting the customer first. I'm on slide 3. You see that we continue to advance a number of initiatives to improve the overall value proposition and service experience for our customers, including the expansion of internet contracts in Ontario, which give customers greater price certainty, continued scaling of hardware-free Fibe TV, and the full launch of our voice virtual assistant across Bell, Virgin Plus, and Lucky Mobile. Each of these supports longer-term, more stable customer relationships at a lower cost to serve. Fiber continues to be a key growth driver for us. In Canada, we added close to 43,000 residential FTTH subscribers in the quarter, with demand remaining solid across our footprint. We're making significant progress across each of our four strategic priorities as well. we're making significant progress across each of our four strategic priorities as well I want to walk you through them, starting with putting the customer first. i want to walk you through them starting with putting the customer first I'm on slide 3. i'm on slide 3 You see that we continue to advance a number of initiatives to improve the overall value proposition and service experience for our customers, including the expansion of internet contracts in Ontario, which give customers greater price certainty, continued scaling of hardware-free Fibe TV, and the full launch of our voice virtual assistant across Bell, Virgin Plus, and Lucky Mobile. you see that we continue to advance a number of initiatives to improve the overall value proposition and service experience for our customers including the expansion of internet contracts in ontario which give customers greater price certainty continued scaling of hardware-free fibe tv and the full launch of our voice virtual assistant across bell virgin plus and lucky mobile Each of these supports longer-term, more stable customer relationships at a lower cost to serve. each of these supports longer-term more stable customer relationships at a lower cost to serve Fiber continues to be a key growth driver for us. fiber continues to be a key growth driver for us In Canada, we added close to 43,000 residential FTTH subscribers in the quarter, with demand remaining solid across our footprint. in canada we added close to 43,000 residential ftth subscribers in the quarter with demand remaining solid across our footprint Combined with the contribution from Ziply Fiber, total residential fiber net adds were close to 50,000, and internet revenue across our North American fiber platforms grew 15% year-over-year. In wireless now, Q1 was an unusually competitive quarter. Promotional activity across the industry extended well beyond typical seasonal windows. We were deliberate in how we responded, staying out of the most aggressive pricing early in the quarter and participating selectively where we saw longer-term value. That discipline is reflected in our results. Strong post-paid net adds of close to 17,000, a 21% increase in gross activations, and continued resilience in Bell-branded performance. Early indicators suggest the market is normalizing. Our focus remains on lifetime economics, not quarter-to-quarter volume. Combined with the contribution from Ziply Fiber, total residential fiber net adds were close to 50,000, and internet revenue across our North American fiber platforms grew 15% year-over-year. combined with the contribution from ziply fiber total residential fiber net adds were close to 50,000 and internet revenue across our north american fiber platforms grew 15% year-over-year In wireless now, Q1 was an unusually competitive quarter. in wireless now q1 was an unusually competitive quarter Promotional activity across the industry extended well beyond typical seasonal windows. promotional activity across the industry extended well beyond typical seasonal windows We were deliberate in how we responded, staying out of the most aggressive pricing early in the quarter and participating selectively where we saw longer-term value. we were deliberate in how we responded staying out of the most aggressive pricing early in the quarter and participating selectively where we saw longer-term value That discipline is reflected in our results. that discipline is reflected in our results Strong post-paid net adds of close to 17,000, a 21% increase in gross activations, and continued resilience in Bell-branded performance. strong post-paid net adds of close to 17,000 a 21% increase in gross activations and continued resilience in bell-branded performance Early indicators suggest the market is normalizing. early indicators suggest the market is normalizing Our focus remains on lifetime economics, not quarter-to-quarter volume. our focus remains on lifetime economics not quarter-to-quarter volume Video net subscriber additions swung to positive, improving approximately 26,000 year-over-year on strong uptake of the streaming bundles we launched in the second half of last year. That content pull-through, together with growing adoption of subscriptions across our fiber base, is driving meaningful momentum and product intensity, which is a key metric we're tracking against our Investor Day framework. Turning now to our third strategic priority, which is to lead an enterprise with AI-powered solutions. This is where I want to spend a bit more time today with you because Bell AI Fabric is creating considerable value in a very short period of time, and I want to make sure investors fully understand the story. Let me start with a simple framing. Video net subscriber additions swung to positive, improving approximately 26,000 year-over-year on strong uptake of the streaming bundles we launched in the second half of last year. video net subscriber additions swung to positive improving approximately 26,000 year-over-year on strong uptake of the streaming bundles we launched in the second half of last year That content pull-through, together with growing adoption of subscriptions across our fiber base, is driving meaningful momentum and product intensity, which is a key metric we're tracking against our Investor Day framework. that content pull-through together with growing adoption of subscriptions across our fiber base is driving meaningful momentum and product intensity which is a key metric we're tracking against our investor day framework Turning now to our third strategic priority, which is to lead an enterprise with AI-powered solutions. turning now to our third strategic priority which is to lead an enterprise with ai-powered solutions This is where I want to spend a bit more time today with you because Bell AI Fabric is creating considerable value in a very short period of time, and I want to make sure investors fully understand the story. this is where i want to spend a bit more time today with you because bell ai fabric is creating considerable value in a very short period of time and i want to make sure investors fully understand the story Let me start with a simple framing. let me start with a simple framing Bell sits at the intersection of secure, high-performance networks, trusted enterprise relationships, access to significant power, and now purpose-built AI infrastructure with a time to compute advantage. No other Canadian company has assembled this combination. It's very difficult to replicate. That's our competitive advantage. Last year, we outlined our ambition to lead in this space, and we introduced three businesses, Ateco, Bell Cyber, and Bell AI Fabric. Each is closely tied to our core strengths in connectivity, distribution, and trust. Since then, progress has only accelerated. I want to begin with Saskatchewan because it's a landmark investment for Bell and for the country's AI future. Less than two months ago, we announced a fully contracted 300 MW purpose-built AI data center in Saskatchewan. It's a transformational project that meaningfully improves our long-term growth profile and is incremental to the financial framework we laid out at Investor. Bell sits at the intersection of secure, high-performance networks, trusted enterprise relationships, access to significant power, and now purpose-built AI infrastructure with a time to compute advantage. bell sits at the intersection of secure high-performance networks trusted enterprise relationships access to significant power and now purpose-built ai infrastructure with a time to compute advantage No other Canadian company has assembled this combination. no other canadian company has assembled this combination It's very difficult to replicate. it's very difficult to replicate That's our competitive advantage. that's our competitive advantage Last year, we outlined our ambition to lead in this space, and we introduced three businesses, Ateco, Bell Cyber, and Bell AI Fabric. last year we outlined our ambition to lead in this space and we introduced three businesses ateco bell cyber and bell ai fabric Each is closely tied to our core strengths in connectivity, distribution, and trust. each is closely tied to our core strengths in connectivity distribution and trust Since then, progress has only accelerated. since then progress has only accelerated I want to begin with Saskatchewan because it's a landmark investment for Bell and for the country's AI future. i want to begin with saskatchewan because it's a landmark investment for bell and for the country's ai future Less than two months ago, we announced a fully contracted 300 MW purpose-built AI data center in Saskatchewan. less than two months ago we announced a fully contracted 300 mw purpose-built ai data center in saskatchewan It's a transformational project that meaningfully improves our long-term growth profile and is incremental to the financial framework we laid out at Investor . it's a transformational project that meaningfully improves our long-term growth profile and is incremental to the financial framework we laid out at investor Our construction partners have mobilized on-site and preliminary work is underway. I'll walk you through what that looks like on the ground when we get the slide pod. At full run rate, as we shared before, this facility alone is expected to contribute approximately CAD 500 million of revenue, CAD 400 million of EBITDA, and over CAD 250 million of free cash flow at an IRR of approximately 20% at the data center level, with additional upside from sovereign workloads and related services on top. Beyond Saskatchewan, our broader AI fabric ecosystem continues to scale. In late March, we launched our Merritt, B.C. facility. Consistent with our model, Bell is providing the building, power and cooling. The tenant supplies and funds all compute hardware. The facility uses a closed loop liquid cool design that does not draw from municipal water resources. Our construction partners have mobilized on-site and preliminary work is underway. our construction partners have mobilized on-site and preliminary work is underway I'll walk you through what that looks like on the ground when we get the slide pod. i'll walk you through what that looks like on the ground when we get the slide pod At full run rate, as we shared before, this facility alone is expected to contribute approximately CAD 500 million of revenue, CAD 400 million of EBITDA, and over CAD 250 million of free cash flow at an IRR of approximately 20% at the data center level, with additional upside from sovereign workloads and related services on top. at full run rate as we shared before this facility alone is expected to contribute approximately cad 500 million of revenue cad 400 million of ebitda and over cad 250 million of free cash flow at an irr of approximately 20% at the data center level with additional upside from sovereign workloads and related services on top Beyond Saskatchewan, our broader AI fabric ecosystem continues to scale. In late March, we launched our Merritt, B.C. facility. beyond saskatchewan our broader ai fabric ecosystem continues to scale. in late march we launched our merritt b.c facility Consistent with our model, Bell is providing the building, power and cooling. consistent with our model bell is providing the building power and cooling The tenant supplies and funds all compute hardware. the tenant supplies and funds all compute hardware The facility uses a closed loop liquid cool design that does not draw from municipal water resources. the facility uses a closed loop liquid cool design that does not draw from municipal water resources The capacity at Merritt is part of the approximately 73 MW of AI Fabric capacity we referenced back in October. At this time, we have four fully contracted facilities, Mission Flats and Merritt, BC, which are both live, you know. We have Winnipeg, which will go live early in the second half of this year, and that one is on an operating lease basis. Those three constitute 29 MW of the 73 MW we guided to at Investor Day. Of course, we have Saskatchewan on top of that, which is under construction. We also continue to build out the sovereign AI solutions ecosystem during the quarter. The capacity at Merritt is part of the approximately 73 MW of AI Fabric capacity we referenced back in October. the capacity at merritt is part of the approximately 73 mw of ai fabric capacity we referenced back in october At this time, we have four fully contracted facilities, Mission Flats and Merritt, BC, which are both live, you know. at this time we have four fully contracted facilities mission flats and merritt bc which are both live you know We have Winnipeg, which will go live early in the second half of this year, and that one is on an operating lease basis. we have winnipeg which will go live early in the second half of this year and that one is on an operating lease basis Those three constitute 29 MW of the 73 MW we guided to at Investor Day. those three constitute 29 mw of the 73 mw we guided to at investor day Of course, we have Saskatchewan on top of that, which is under construction. of course we have saskatchewan on top of that which is under construction We also continue to build out the sovereign AI solutions ecosystem during the quarter. we also continue to build out the sovereign ai solutions ecosystem during the quarter We announced strategic partnerships with Coveo to deliver sovereign AI powered digital services, with Hypertec to deliver end-to-end sovereign AI infrastructure built, hosted and operate in Canada, and with SAP to strengthen Canada digital sovereignty with cloud and AI infrastructure, and post-quarter with Celestica to advance the development of a Canadian sovereign AI infrastructure stack. Each of these partnerships reinforces a critical point. Bell AI Fabric is not just about data centers. It's a full stack, Canadian controlled AI platform with infrastructure, connectivity, security, integration and services, working with best-in-class partners to meet the needs of governments, enterprises and research institutions that require their AI workloads to remain here in Canada. This brings me now to the financial results in enterprise. We announced strategic partnerships with Coveo to deliver sovereign AI powered digital services, with Hypertec to deliver end-to-end sovereign AI infrastructure built, hosted and operate in Canada, and with SAP to strengthen Canada digital sovereignty with cloud and AI infrastructure, and post-quarter with Celestica to advance the development of a Canadian sovereign AI infrastructure stack. we announced strategic partnerships with coveo to deliver sovereign ai powered digital services with hypertec to deliver end-to-end sovereign ai infrastructure built hosted and operate in canada and with sap to strengthen canada digital sovereignty with cloud and ai infrastructure and post-quarter with celestica to advance the development of a canadian sovereign ai infrastructure stack Each of these partnerships reinforces a critical point. each of these partnerships reinforces a critical point Bell AI Fabric is not just about data centers. bell ai fabric is not just about data centers It's a full stack, Canadian controlled AI platform with infrastructure, connectivity, security, integration and services, working with best-in-class partners to meet the needs of governments, enterprises and research institutions that require their AI workloads to remain here in Canada. it's a full stack canadian controlled ai platform with infrastructure connectivity security integration and services working with best-in-class partners to meet the needs of governments enterprises and research institutions that require their ai workloads to remain here in canada This brings me now to the financial results in enterprise. this brings me now to the financial results in enterprise Bell Business Markets revenue, which we're disclosing for the first time this quarter, was up 9.7% in the quarter, driven by 113% growth in AI-powered solutions. That's a powerful number, and it reflects the compounding momentum across all three of our AI-powered businesses. I'll note that the Merritt facility contributed to the quarter, and Curtis will walk you through the financial details around that. We increased our AI-powered solutions revenue objective from approximately CAD 1.5 billion to approximately CAD 2 billion by 2028 when we made the Saskatchewan announcement, we're confident in that target. Frankly, I see potential beyond it. We have line of sight to monetizing approximately 800 MW of power over time, our pipeline of interest remains deep and active. Bell Business Markets revenue, which we're disclosing for the first time this quarter, was up 9.7% in the quarter, driven by 113% growth in AI-powered solutions. bell business markets revenue which we're disclosing for the first time this quarter was up 9.7% in the quarter driven by 113% growth in ai-powered solutions That's a powerful number, and it reflects the compounding momentum across all three of our AI-powered businesses. that's a powerful number and it reflects the compounding momentum across all three of our ai-powered businesses I'll note that the Merritt facility contributed to the quarter, and Curtis will walk you through the financial details around that. i'll note that the merritt facility contributed to the quarter and curtis will walk you through the financial details around that We increased our AI-powered solutions revenue objective from approximately CAD 1.5 billion to approximately CAD 2 billion by 2028 when we made the Saskatchewan announcement, we're confident in that target. we increased our ai-powered solutions revenue objective from approximately cad 1.5 billion to approximately cad 2 billion by 2028 when we made the saskatchewan announcement we're confident in that target Frankly, I see potential beyond it. frankly i see potential beyond it We have line of sight to monetizing approximately 800 MW of power over time, our pipeline of interest remains deep and active. we have line of sight to monetizing approximately 800 mw of power over time our pipeline of interest remains deep and active In short, AI powered solutions is creating significant differentiated value for this company. It's closely tied to our core business. It's disciplined, demand led and return driven, and it's a growth vector that no other Canadian telecom has. Turning now to our fourth strategic priority, which is to build a digital media and content powerhouse. Our digital pivot in media is now well into its sixth year and the momentum is clear. When I became CEO in 2020, digital represented 19% of Bell Media's revenue, and today it's 46%. That's up three points year-over-year, and it's still growing. It's a fundamental transformation of this business and it's translating directly into subscriber growth, advertiser interest and new monetization streams. Q1 was the most watched quarter in Crave history. In short, AI powered solutions is creating significant differentiated value for this company. in short ai powered solutions is creating significant differentiated value for this company It's closely tied to our core business. it's closely tied to our core business It's disciplined, demand led and return driven, and it's a growth vector that no other Canadian telecom has. it's disciplined demand led and return driven and it's a growth vector that no other canadian telecom has Turning now to our fourth strategic priority, which is to build a digital media and content powerhouse. turning now to our fourth strategic priority which is to build a digital media and content powerhouse Our digital pivot in media is now well into its sixth year and the momentum is clear. our digital pivot in media is now well into its sixth year and the momentum is clear When I became CEO in 2020, digital represented 19% of Bell Media's revenue, and today it's 46%. when i became ceo in 2020 digital represented 19% of bell media's revenue and today it's 46% That's up three points year-over-year, and it's still growing. that's up three points year-over-year and it's still growing It's a fundamental transformation of this business and it's translating directly into subscriber growth, advertiser interest and new monetization streams. it's a fundamental transformation of this business and it's translating directly into subscriber growth advertiser interest and new monetization streams Q1 was the most watched quarter in Crave history. q1 was the most watched quarter in crave history Our subscriber base grew 25% year-over-year to more than 4.7 million today, powered by a 59% increase in direct to consumer streaming subscribers. That's exceptional growth in any market. With our target of 6 million subscribers by 2028, we have a clear runway ahead. What's driving this is a combination of premium original content, a significantly expanded library, the streaming bundles we launched in the second half of last year, and continued improvements to the product experience, including targeted marketing offers, efforts, pardon me, in the French language market. Another recent addition is SNL, which will simulcast on Crave and CTV beginning this fall, one of the most watched shows on television and a strong signal of the content value we're building across those platforms. We also continue to solidify our long-term sports content leadership. Our subscriber base grew 25% year-over-year to more than 4.7 million today, powered by a 59% increase in direct to consumer streaming subscribers. our subscriber base grew 25% year-over-year to more than 4.7 million today powered by a 59% increase in direct to consumer streaming subscribers That's exceptional growth in any market. that's exceptional growth in any market With our target of 6 million subscribers by 2028, we have a clear runway ahead. with our target of 6 million subscribers by 2028 we have a clear runway ahead What's driving this is a combination of premium original content, a significantly expanded library, the streaming bundles we launched in the second half of last year, and continued improvements to the product experience, including targeted marketing offers, efforts, pardon me, in the French language market. what's driving this is a combination of premium original content a significantly expanded library the streaming bundles we launched in the second half of last year and continued improvements to the product experience including targeted marketing offers efforts pardon me in the french language market Another recent addition is SNL, which will simulcast on Crave and CTV beginning this fall, one of the most watched shows on television and a strong signal of the content value we're building across those platforms. another recent addition is snl which will simulcast on crave and ctv beginning this fall one of the most watched shows on television and a strong signal of the content value we're building across those platforms We also continue to solidify our long-term sports content leadership. we also continue to solidify our long-term sports content leadership Over the last few months, we extended regional media rights with the Senators, the Montreal Canadiens, the Winnipeg Jets, and became the new Canadian home of the Toronto Tempo and the WNBA. We expect to announce additional major rights renewals in the near future. These are important long duration agreements that reinforce our position as Canada's leading sports broadcaster across TSN in English and RDS in French. Sports content is the single most powerful driver of live viewership, advertising premium and subscriber retention, we intend to maintain our leadership. On that note and looking ahead, we're excited about the FIFA World Cup this summer. We have exclusivity on 104 games across our platforms, which presents a significant audience and monetization opportunity for Bell Media. The third element I want to highlight is our growing ability to monetize original content internationally. Over the last few months, we extended regional media rights with the Senators, the Montreal Canadiens, the Winnipeg Jets, and became the new Canadian home of the Toronto Tempo and the WNBA. over the last few months we extended regional media rights with the senators the montreal canadiens the winnipeg jets and became the new canadian home of the toronto tempo and the wnba We expect to announce additional major rights renewals in the near future. we expect to announce additional major rights renewals in the near future These are important long duration agreements that reinforce our position as Canada's leading sports broadcaster across TSN in English and RDS in French. these are important long duration agreements that reinforce our position as canada's leading sports broadcaster across tsn in english and rds in french Sports content is the single most powerful driver of live viewership, advertising premium and subscriber retention, we intend to maintain our leadership. sports content is the single most powerful driver of live viewership advertising premium and subscriber retention we intend to maintain our leadership On that note and looking ahead, we're excited about the FIFA World Cup this summer. on that note and looking ahead we're excited about the fifa world cup this summer We have exclusivity on 104 games across our platforms, which presents a significant audience and monetization opportunity for Bell Media. we have exclusivity on 104 games across our platforms which presents a significant audience and monetization opportunity for bell media The third element I want to highlight is our growing ability to monetize original content internationally. the third element i want to highlight is our growing ability to monetize original content internationally Our Crave original series, YAGA and The Office Movers, have been acquired by Sky for the U.K. and Ireland. Just last week, YAGA was acquired by AMC for the U.S. market, with additional territories expected to follow. This builds on the global success of Season Rivalry, which continued to generate cultural impact through Q1, earning a Peabody Award, multiple Canadian Screen Awards, and a second season renewal. The key here is that they aren't one-offs. They reflect a deliberate strategy to invest in premium Canadian storytelling and then extend the value of that content across the full value chain, including through our majority ownership of Sphere Abacus, our global content distribution arm. As a reminder, our focus is for Bell Media to deliver consistent annual revenue and EBITDA growth while contributing meaningfully to free cash flow for BCE. We're on pace to do exactly that in 2026. Our Crave original series, YAGA and The Office Movers, have been acquired by Sky for the U.K. and Ireland. our crave original series yaga and the office movers have been acquired by sky for the u.k and ireland Just last week, YAGA was acquired by AMC for the U.S. market, with additional territories expected to follow. just last week yaga was acquired by amc for the u.s market with additional territories expected to follow This builds on the global success of Season Rivalry, which continued to generate cultural impact through Q1, earning a Peabody Award, multiple Canadian Screen Awards, and a second season renewal. this builds on the global success of season rivalry which continued to generate cultural impact through q1 earning a peabody award multiple canadian screen awards and a second season renewal The key here is that they aren't one-offs. They reflect a deliberate strategy to invest in premium Canadian storytelling and then extend the value of that content across the full value chain, including through our majority ownership of Sphere Abacus , our global content distribution arm. the key here is that they aren't one-offs. they reflect a deliberate strategy to invest in premium canadian storytelling and then extend the value of that content across the full value chain including through our majority ownership of sphere abacus our global content distribution arm As a reminder, our focus is for Bell Media to deliver consistent annual revenue and EBITDA growth while contributing meaningfully to free cash flow for BCE. as a reminder our focus is for bell media to deliver consistent annual revenue and ebitda growth while contributing meaningfully to free cash flow for bce We're on pace to do exactly that in 2026. we're on pace to do exactly that in 2026 I want to pause now on slide 5 because I think it tells an important story. This is back to Bell AI Fabric. In the spirit of transparently tracking and communicating our progress on our strategic initiatives, let me provide you some more detail on the construction progress here. On the left, you can see our Mission Flats facility. That's the one in Kamloops, B.C., the very first one we opened last June. This is where Groq's AI inference technology is live and serving workloads today. Our second facility is the one in Merritt, B.C. That went from dirt to a fully operational AI data center in 9 months. Together, these experiences gave us a proven reproducible playbook for everything that's followed. On the right is Saskatchewan. This is what momentum looks like in real time. Our construction partners have mobilized on-site. I want to pause now on slide 5 because I think it tells an important story. i want to pause now on slide 5 because i think it tells an important story This is back to Bell AI Fabric. this is back to bell ai fabric In the spirit of transparently tracking and communicating our progress on our strategic initiatives, let me provide you some more detail on the construction progress here. in the spirit of transparently tracking and communicating our progress on our strategic initiatives let me provide you some more detail on the construction progress here On the left, you can see our Mission Flats facility. on the left you can see our mission flats facility That's the one in Kamloops, B.C., the very first one we opened last June. that's the one in kamloops b.c the very first one we opened last june This is where Groq's AI inference technology is live and serving workloads today. this is where groq's ai inference technology is live and serving workloads today Our second facility is the one in Merritt, B.C. our second facility is the one in merritt b.c That went from dirt to a fully operational AI data center in 9 months. that went from dirt to a fully operational ai data center in 9 months Together, these experiences gave us a proven reproducible playbook for everything that's followed. together these experiences gave us a proven reproducible playbook for everything that's followed On the right is Saskatchewan. on the right is saskatchewan This is what momentum looks like in real time. this is what momentum looks like in real time Our construction partners have mobilized on-site. our construction partners have mobilized on-site You can see the earthworks underway, site stripping, pile load testing, heavy equipment on the ground. The development agreement has been approved by the Rural Municipality of Sherwood, and our development permit application is currently under review. We selected our early works contractors and over half a dozen additional trade contractors in the Regina region. Long lead equipment, including generators and cooling systems, have been ordered and on schedule. We expect all major permits in place by July, and we remain on track for the first phase to come online in the first half of next year. Let's take a step back and look at the trajectory. A year ago, Bell AI Fabric was an idea and a single facility in Kamloops. Today, we have the data centers I summarized earlier and line of sight to monetizing approximately 800 MW of power. Turning to slide 6. You can see the earthworks underway, site stripping, pile load testing, heavy equipment on the ground. you can see the earthworks underway site stripping pile load testing heavy equipment on the ground The development agreement has been approved by the Rural Municipality of Sherwood, and our development permit application is currently under review. the development agreement has been approved by the rural municipality of sherwood and our development permit application is currently under review We selected our early works contractors and over half a dozen additional trade contractors in the Regina region. we selected our early works contractors and over half a dozen additional trade contractors in the regina region Long lead equipment, including generators and cooling systems, have been ordered and on schedule. long lead equipment including generators and cooling systems have been ordered and on schedule We expect all major permits in place by July, and we remain on track for the first phase to come online in the first half of next year. we expect all major permits in place by july and we remain on track for the first phase to come online in the first half of next year Let's take a step back and look at the trajectory. let's take a step back and look at the trajectory A year ago, Bell AI Fabric was an idea and a single facility in Kamloops. a year ago bell ai fabric was an idea and a single facility in kamloops Today, we have the data centers I summarized earlier and line of sight to monetizing approximately 800 MW of power. today we have the data centers i summarized earlier and line of sight to monetizing approximately 800 mw of power Turning to slide 6. turning to slide 6 As you can see, we continue to track and measure ourselves against disciplined execution on the Investor Day targets we laid out last October. You can see a sample of those metrics on the slide and the progress. Before I turn it over to Curtis in a moment, I want to touch on two more things: capital allocation and capital investment. On capital allocation, we've been very consistent. In February 2025, we laid out a clear plan. Simplify the business, strengthen the balance sheet, focus capital on higher return opportunities. We reinforced all of that at Investor Day with significant transparency around everything we were gonna do. We're committed to continue to share our progress transparently and regularly, and that's what we continue to do today. Since then, we've been executing one step at a time. As you can see, we continue to track and measure ourselves against disciplined execution on the Investor Day targets we laid out last October. as you can see we continue to track and measure ourselves against disciplined execution on the investor day targets we laid out last october You can see a sample of those metrics on the slide and the progress. you can see a sample of those metrics on the slide and the progress Before I turn it over to Curtis in a moment, I want to touch on two more things: capital allocation and capital investment. before i turn it over to curtis in a moment i want to touch on two more things capital allocation and capital investment On capital allocation, we've been very consistent. on capital allocation we've been very consistent In February 2025, we laid out a clear plan. in february 2025 we laid out a clear plan Simplify the business, strengthen the balance sheet, focus capital on higher return opportunities. simplify the business strengthen the balance sheet focus capital on higher return opportunities We reinforced all of that at Investor Day with significant transparency around everything we were gonna do. we reinforced all of that at investor day with significant transparency around everything we were gonna do We're committed to continue to share our progress transparently and regularly, and that's what we continue to do today. we're committed to continue to share our progress transparently and regularly and that's what we continue to do today Since then, we've been executing one step at a time. since then we've been executing one step at a time We completed the sale of our interest in MLSE at a 10-time return. We exited Bell Smart Home, most recently, of course, the Land Mobile Radio divestiture. The roadmap hasn't changed. We're gonna optimize the balance sheet, we're gonna fund the strategic priorities, which are high growth, we're gonna return capital to shareholders through our sustainable dividend. We're gonna do that while maintaining the financial discipline and the flexibility to execute against our three-year plan. A reminder, we're only one quarter into that three-year plan. On CapEx, as early as 2023, we saw where the environment was headed. We made deliberate choices back then to reduce spending on legacy segments and reallocate investment to growth segments. That's what we've done. That's what we're gonna continue to do. We completed the sale of our interest in MLSE at a 10-time return. we completed the sale of our interest in mlse at a 10-time return We exited Bell Smart Home, most recently, of course, the Land Mobile Radio divestiture. we exited bell smart home most recently of course the land mobile radio divestiture The roadmap hasn't changed. the roadmap hasn't changed We're gonna optimize the balance sheet, we're gonna fund the strategic priorities, which are high growth, we're gonna return capital to shareholders through our sustainable dividend. we're gonna optimize the balance sheet we're gonna fund the strategic priorities which are high growth we're gonna return capital to shareholders through our sustainable dividend We're gonna do that while maintaining the financial discipline and the flexibility to execute against our three-year plan. we're gonna do that while maintaining the financial discipline and the flexibility to execute against our three-year plan A reminder, we're only one quarter into that three-year plan. a reminder we're only one quarter into that three-year plan On CapEx, as early as 2023, we saw where the environment was headed. on capex as early as 2023 we saw where the environment was headed We made deliberate choices back then to reduce spending on legacy segments and reallocate investment to growth segments. we made deliberate choices back then to reduce spending on legacy segments and reallocate investment to growth segments That's what we've done. that's what we've done That's what we're gonna continue to do. that's what we're gonna continue to do Our Canadian telecom CapEx has decreased by over CAD 2 billion from CAD 5.1 billion in 2022 to below CAD 3 billion in 2026. That's putting aside the highly accretive AI Fabric investments. Our underlying Canadian CapEx intensity is approximately 12%, with wireless capital intensity at an industry low 7%. Our Canadian telecom CapEx will continue to decline. In the current environment, we've seen others in the industry recalibrate their capital spending. We totally understand that because it's what we've been doing. We laid out this discipline clearly at Investor Day, and we've been executing against it for three-plus years. What makes our story different is where we're investing the capital we do deploy. We have a significant growth sector in AI-powered solutions that's intrinsically tied to our core business and that no one else in Canada has. Our Canadian telecom CapEx has decreased by over CAD 2 billion from CAD 5.1 billion in 2022 to below CAD 3 billion in 2026. our canadian telecom capex has decreased by over cad 2 billion from cad 5.1 billion in 2022 to below cad 3 billion in 2026 That's putting aside the highly accretive AI Fabric investments. that's putting aside the highly accretive ai fabric investments Our underlying Canadian CapEx intensity is approximately 12%, with wireless capital intensity at an industry low 7%. our underlying canadian capex intensity is approximately 12% with wireless capital intensity at an industry low 7% Our Canadian telecom CapEx will continue to decline. our canadian telecom capex will continue to decline In the current environment, we've seen others in the industry recalibrate their capital spending. in the current environment we've seen others in the industry recalibrate their capital spending We totally understand that because it's what we've been doing. we totally understand that because it's what we've been doing We laid out this discipline clearly at Investor Day, and we've been executing against it for three-plus years. we laid out this discipline clearly at investor day and we've been executing against it for three-plus years What makes our story different is where we're investing the capital we do deploy. what makes our story different is where we're investing the capital we do deploy We have a significant growth sector in AI-powered solutions that's intrinsically tied to our core business and that no one else in Canada has. we have a significant growth sector in ai-powered solutions that's intrinsically tied to our core business and that no one else in canada has Our capital allocation is shifting toward higher return growth opportunities like Bell AI Fabric and our U.S. fiber plan as we maintain discipline on the core telecom side. Before I hand it over to Curtis, I want to acknowledge our entire Bell team. The results we're sharing today reflect the dedication and focus of everyone who works for this company across the country and in the U.S., serving our customers, growing the business, and executing on the plan we've laid out. I'm proud of what the team is doing. Curtis, over to you now to take the team through the Q1 financial and operating results in detail. Thank you. Our capital allocation is shifting toward higher return growth opportunities like Bell AI Fabric and our U.S. fiber plan as we maintain discipline on the core telecom side. our capital allocation is shifting toward higher return growth opportunities like bell ai fabric and our u.s fiber plan as we maintain discipline on the core telecom side Before I hand it over to Curtis, I want to acknowledge our entire Bell team. before i hand it over to curtis i want to acknowledge our entire bell team The results we're sharing today reflect the dedication and focus of everyone who works for this company across the country and in the U.S., serving our customers, growing the business, and executing on the plan we've laid out. the results we're sharing today reflect the dedication and focus of everyone who works for this company across the country and in the u.s serving our customers growing the business and executing on the plan we've laid out I'm proud of what the team is doing. i'm proud of what the team is doing Curtis, over to you now to take the team through the Q1 financial and operating results in detail. curtis over to you now to take the team through the q1 financial and operating results in detail Thank you. thank you

Speaker 3: Thank you, Mirko, and good morning, everyone. I'll begin on slide 8 with BCE's consolidated financial results. Total revenue grew 4% from the quarter, driven by the contribution from Ziply Fiber and continued strong momentum at Bell Business Markets, where AI-powered solutions revenue more than doubled year-over-year. Adjusted EBITDA was up 2.9%, driven by the contribution from Ziply Fiber and the flow-through of higher product revenue. Margin declined 40 basis points to 42.7%. As we previously indicated, the mix of growth in the business is evolving. Some of our higher growth services naturally carry a different margin profile than our legacy businesses, which tend to be a higher margin. Our focus is on driving absolute EBITDA dollar growth and free cash flow growth. Thank you, Mirko, and good morning, everyone. thank you mirko and good morning everyone I'll begin on slide 8 with BCE's consolidated financial results. i'll begin on slide 8 with bce's consolidated financial results Total revenue grew 4% from the quarter, driven by the contribution from Ziply Fiber and continued strong momentum at Bell Business Markets, where AI-powered solutions revenue more than doubled year-over-year. total revenue grew 4% from the quarter driven by the contribution from ziply fiber and continued strong momentum at bell business markets where ai-powered solutions revenue more than doubled year-over-year Adjusted EBITDA was up 2.9%, driven by the contribution from Ziply Fiber and the flow-through of higher product revenue. adjusted ebitda was up 2.9% driven by the contribution from ziply fiber and the flow-through of higher product revenue Margin declined 40 basis points to 42.7%. margin declined 40 basis points to 42.7% As we previously indicated, the mix of growth in the business is evolving. as we previously indicated the mix of growth in the business is evolving Some of our higher growth services naturally carry a different margin profile than our legacy businesses, which tend to be a higher margin. some of our higher growth services naturally carry a different margin profile than our legacy businesses which tend to be a higher margin Our focus is on driving absolute EBITDA dollar growth and free cash flow growth. our focus is on driving absolute ebitda dollar growth and free cash flow growth Adjusted EPS was down CAD 0.06 compared to last year, reflecting higher depreciation and amort expense and interest costs, consistent with our 2026 guidance assumptions. On CapEx, total CapEx, total capital expenditures were up 15.4%, reflecting Ziply Fiber build out in the U.S. and capital investments to support the growth of our Bell AI Fabric business as we build our data centers across Canada. Free cash flow increased 0.8% to CAD 804 million. I would note that beginning this quarter, we updated our definition of free cash flow to exclude income taxes paid on significant investors, which improves comparability quarter-over-quarter, year-over-year, and does not affect any previously reported amounts. In Q1, we paid CAD 542 million in income taxes related to the MLSE sale. Adjusted EPS was down CAD 0.06 compared to last year, reflecting higher depreciation and amort expense and interest costs, consistent with our 2026 guidance assumptions. adjusted eps was down cad 0.06 compared to last year reflecting higher depreciation and amort expense and interest costs consistent with our 2026 guidance assumptions On CapEx, total CapEx, total capital expenditures were up 15.4%, reflecting Ziply Fiber build out in the U.S. and capital investments to support the growth of our Bell AI Fabric business as we build our data centers across Canada. on capex total capex total capital expenditures were up 15.4% reflecting ziply fiber build out in the u.s and capital investments to support the growth of our bell ai fabric business as we build our data centers across canada Free cash flow increased 0.8% to CAD 804 million. free cash flow increased 0.8% to cad 804 million I would note that beginning this quarter, we updated our definition of free cash flow to exclude income taxes paid on significant investors, which improves comparability quarter-over-quarter, year-over-year, and does not affect any previously reported amounts. i would note that beginning this quarter we updated our definition of free cash flow to exclude income taxes paid on significant investors which improves comparability quarter-over-quarter year-over-year and does not affect any previously reported amounts In Q1, we paid CAD 542 million in income taxes related to the MLSE sale. in q1 we paid cad 542 million in income taxes related to the mlse sale That amount is excluded from the free cash flow figure I just referenced. It does impact cash flows from operating activities, which analysts should keep in mind when reviewing the cash flow statement. Turning to Bell CTS Canada on slide 9. Wanna highlight a few disclosure enhancements this quarter that we believe will be helpful for investors. First, we've updated our Internet sub-metrics to include wholesale subscribers. It is consistent with how we reported prior to 2019 and reflects the impacts of the CRTC's mandated fiber access decision on how we operate the business. We've also introduced an additional residential fiber level metric. Previously reported 2025 figures have been restated for comparability. Second, we've broadened our IPTV subscriber definition to include bundled streaming service subscribers, customers who subscribe to a package that includes at least one third-party streaming service and one BCE streaming service. That amount is excluded from the free cash flow figure I just referenced. that amount is excluded from the free cash flow figure i just referenced It does impact cash flows from operating activities, which analysts should keep in mind when reviewing the cash flow statement. it does impact cash flows from operating activities which analysts should keep in mind when reviewing the cash flow statement Turning to Bell CTS Canada on slide 9. turning to bell cts canada on slide 9 Wanna highlight a few disclosure enhancements this quarter that we believe will be helpful for investors. wanna highlight a few disclosure enhancements this quarter that we believe will be helpful for investors First, we've updated our Internet sub-metrics to include wholesale subscribers. first we've updated our internet sub-metrics to include wholesale subscribers It is consistent with how we reported prior to 2019 and reflects the impacts of the CRTC's mandated fiber access decision on how we operate the business. it is consistent with how we reported prior to 2019 and reflects the impacts of the crtc's mandated fiber access decision on how we operate the business We've also introduced an additional residential fiber level metric. we've also introduced an additional residential fiber level metric Previously reported 2025 figures have been restated for comparability. previously reported 2025 figures have been restated for comparability Second, we've broadened our IPTV subscriber definition to include bundled streaming service subscribers, customers who subscribe to a package that includes at least one third-party streaming service and one BCE streaming service. second we've broadened our iptv subscriber definition to include bundled streaming service subscribers customers who subscribe to a package that includes at least one third-party streaming service and one bce streaming service This is now reported under a new video subscriber metric, and again, 2025 figures have been restated. With that context, let me walk through the sub-metrics, starting with wireless. Strength of our distribution network and the premium Bell brand helped deliver 16,947 postpaid mobile phone net adds in an unusually competitive quarter, compared to a net loss of close to 10,000 in Q1 of last year. Postpaid churn was 1.34%. After three consecutive quarters of year-over-year improvement through Q4, the trend reversed in Q1, reflecting a higher number of switchers driven by some of the most aggressive competitive offers we've seen in a seasonally low volume quarter. As the competitive environment normalizes, we expect the improving trend to resume. Our customer first initiatives continue to take hold. This is now reported under a new video subscriber metric, and again, 2025 figures have been restated. this is now reported under a new video subscriber metric and again 2025 figures have been restated With that context, let me walk through the sub-metrics, starting with wireless. with that context let me walk through the sub-metrics starting with wireless Strength of our distribution network and the premium Bell brand helped deliver 16,947 postpaid mobile phone net adds in an unusually competitive quarter, compared to a net loss of close to 10,000 in Q1 of last year. strength of our distribution network and the premium bell brand helped deliver 16,947 postpaid mobile phone net adds in an unusually competitive quarter compared to a net loss of close to 10,000 in q1 of last year Postpaid churn was 1.34%. postpaid churn was 1.34% After three consecutive quarters of year-over-year improvement through Q4, the trend reversed in Q1, reflecting a higher number of switchers driven by some of the most aggressive competitive offers we've seen in a seasonally low volume quarter. after three consecutive quarters of year-over-year improvement through q4 the trend reversed in q1 reflecting a higher number of switchers driven by some of the most aggressive competitive offers we've seen in a seasonally low volume quarter As the competitive environment normalizes, we expect the improving trend to resume. as the competitive environment normalizes we expect the improving trend to resume Our customer first initiatives continue to take hold. our customer first initiatives continue to take hold ARPU was down 0.8%, consistent with the Q4 decline and significantly improved from the 1.8% decline in Q1 of last year. The decrease reflects the flow-through of the more aggressive pricing environment. We've been encouraged to see a return to more rational behavior in April and continue to focus on premium Bell branded subscribers and fiber-led bundling to support the quality of our subscriber mix. Moving to Internet. Residential Fiber-to-the-Home net adds, our new separately disclosed metric totaled 42,750 in the quarter. A strong result. Where we have fiber, demand remains solid and our market share position continues to be strong. Turning to video. Video net adds totaled 10,103 in the quarter, compared to a net loss of close to 16,000 in Q1 last year, an improvement of approximately 25,000-26,000 year-over-year. ARPU was down 0.8%, consistent with the Q4 decline and significantly improved from the 1.8% decline in Q1 of last year. arpu was down 0.8% consistent with the q4 decline and significantly improved from the 1.8% decline in q1 of last year The decrease reflects the flow-through of the more aggressive pricing environment. the decrease reflects the flow-through of the more aggressive pricing environment We've been encouraged to see a return to more rational behavior in April and continue to focus on premium Bell branded subscribers and fiber-led bundling to support the quality of our subscriber mix. we've been encouraged to see a return to more rational behavior in april and continue to focus on premium bell branded subscribers and fiber-led bundling to support the quality of our subscriber mix Moving to Internet. moving to internet Residential Fiber-to-the-Home net adds, our new separately disclosed metric totaled 42,750 in the quarter. residential fiber-to-the-home net adds our new separately disclosed metric totaled 42,750 in the quarter A strong result. a strong result Where we have fiber, demand remains solid and our market share position continues to be strong. where we have fiber demand remains solid and our market share position continues to be strong Turning to video. turning to video Video net adds totaled 10,103 in the quarter, compared to a net loss of close to 16,000 in Q1 last year, an improvement of approximately 25,000-26,000 year-over-year. video net adds totaled 10,103 in the quarter compared to a net loss of close to 16,000 in q1 last year an improvement of approximately 25,000-26,000 year-over-year This was driven by strong uptake of the streaming bundles we launched in the second half of last year. It speaks directly to the product intensity momentum and MRR efforts. Turning to the financial results for Bell CTS Canada. Bell Business Markets was a clear highlight this quarter. BBM revenue grew 9.7% in Q1, driven by 113% growth in AI-powered solutions. That's Ateco, Bell Cyber and Bell AI Fabric combined. All three components contributed to this growth result. Beginning in Q1, we're providing incremental transparency by disclosing BBM operating revenues with a service and product split, consistent with the transparency commitments we made at Investor Day. In late March, we launched our second Bell AI Fabric data center in Merritt, B.C. Revenue and EBITDA were recognized upon delivery under finance lease accounting. This was driven by strong uptake of the streaming bundles we launched in the second half of last year. this was driven by strong uptake of the streaming bundles we launched in the second half of last year It speaks directly to the product intensity momentum and MRR efforts. it speaks directly to the product intensity momentum and mrr efforts Turning to the financial results for Bell CTS Canada. turning to the financial results for bell cts canada Bell Business Markets was a clear highlight this quarter. bell business markets was a clear highlight this quarter BBM revenue grew 9.7% in Q1, driven by 113% growth in AI-powered solutions. bbm revenue grew 9.7% in q1 driven by 113% growth in ai-powered solutions That's Ateco, Bell Cyber and Bell AI Fabric combined. that's ateco bell cyber and bell ai fabric combined All three components contributed to this growth result. all three components contributed to this growth result Beginning in Q1, we're providing incremental transparency by disclosing BBM operating revenues with a service and product split, consistent with the transparency commitments we made at Investor Day. beginning in q1 we're providing incremental transparency by disclosing bbm operating revenues with a service and product split consistent with the transparency commitments we made at investor day In late March, we launched our second Bell AI Fabric data center in Merritt, B.C. in late march we launched our second bell ai fabric data center in merritt b.c Revenue and EBITDA were recognized upon delivery under finance lease accounting. revenue and ebitda were recognized upon delivery under finance lease accounting Going forward, we expect the majority of our Bell AI Fabric agreements to be structured as operating leases, including our Winnipeg data center and our announced Saskatchewan data center. The accounting treatment has no impact on the free cash flow we expect to capture over the term of the agreement. Wireless service revenue was down 0.6%. The improving trajectory we saw through 2025 was disrupted by the competitive pricing environment in Q1. Wireless product revenue was down 6.3%, reflecting fewer device upgrades and lower contracted sales as the market shifted toward bring your own device activations. Turning to Bell CTS U.S. on slide 10. Ziply Fiber continues to perform in line with our expectations and the plan we shared with investors. Q1 total revenue was $234 million. Going forward, we expect the majority of our Bell AI Fabric agreements to be structured as operating leases, including our Winnipeg data center and our announced Saskatchewan data center. going forward we expect the majority of our bell ai fabric agreements to be structured as operating leases including our winnipeg data center and our announced saskatchewan data center The accounting treatment has no impact on the free cash flow we expect to capture over the term of the agreement. the accounting treatment has no impact on the free cash flow we expect to capture over the term of the agreement Wireless service revenue was down 0.6%. wireless service revenue was down 0.6% The improving trajectory we saw through 2025 was disrupted by the competitive pricing environment in Q1. the improving trajectory we saw through 2025 was disrupted by the competitive pricing environment in q1 Wireless product revenue was down 6.3%, reflecting fewer device upgrades and lower contracted sales as the market shifted toward bring your own device activations. wireless product revenue was down 6.3% reflecting fewer device upgrades and lower contracted sales as the market shifted toward bring your own device activations Turning to Bell CTS U.S. on slide 10. turning to bell cts u.s on slide 10 Ziply Fiber continues to perform in line with our expectations and the plan we shared with investors. Q1 total revenue was $234 million. ziply fiber continues to perform in line with our expectations and the plan we shared with investors. q1 total revenue was $234 million Adjusted EBITDA was $102 million, representing a 43.6% margin, an improvement from 43.1% in Q4. Margin performance reflects continued operating discipline and efficiencies within the business. On the subscriber front, Ziply added nearly 7,000 net new fiber customers in the quarter. Penetration across new and existing markets tracking consistent with historical cohort performance. Where we have fiber, we continue to win our share. The Ziply's plan to reach approximately 3 million fiber passings by the end of 2028 is on track. As construction ramps through the balance of the year, we expect both operating and subscriber momentum to accelerate. Over to Bell Media on slide 11. Total revenue was up 0.4% in the quarter. Adjusted EBITDA was $102 million, representing a 43.6% margin, an improvement from 43.1% in Q4. adjusted ebitda was $102 million representing a 43.6% margin an improvement from 43.1% in q4 Margin performance reflects continued operating discipline and efficiencies within the business. margin performance reflects continued operating discipline and efficiencies within the business On the subscriber front, Ziply added nearly 7,000 net new fiber customers in the quarter. on the subscriber front ziply added nearly 7,000 net new fiber customers in the quarter Penetration across new and existing markets tracking consistent with historical cohort performance. penetration across new and existing markets tracking consistent with historical cohort performance Where we have fiber, we continue to win our share. where we have fiber we continue to win our share The Ziply's plan to reach approximately 3 million fiber passings by the end of 2028 is on track. the ziply's plan to reach approximately 3 million fiber passings by the end of 2028 is on track As construction ramps through the balance of the year, we expect both operating and subscriber momentum to accelerate. as construction ramps through the balance of the year we expect both operating and subscriber momentum to accelerate Over to Bell Media on slide 11. over to bell media on slide 11 Total revenue was up 0.4% in the quarter. total revenue was up 0.4% in the quarter Subscriber revenue grew 11.8%, driven by continued strength in Crave and sports D2C streaming, as well as the benefit of a retroactive adjustment related to a contract renewal with a Canadian TV distributor. Advertising revenue was down 12.8%, reflecting continued softness in non-sports traditional advertising demand, lower audio revenue following last year's radio station divestitures, the absence of the prior year benefit from the federal election, and the shift of advertising dollars to the principal broadcaster of the 2026 Olympic Winter Games. That said, our digital strategy continues to have significant momentum. Total digital revenues now represent 46% of Bell Media revenue, up three points from a year ago. Subscriber revenue grew 11.8%, driven by continued strength in Crave and sports D2C streaming, as well as the benefit of a retroactive adjustment related to a contract renewal with a Canadian TV distributor. subscriber revenue grew 11.8% driven by continued strength in crave and sports d2c streaming as well as the benefit of a retroactive adjustment related to a contract renewal with a canadian tv distributor Advertising revenue was down 12.8%, reflecting continued softness in non-sports traditional advertising demand, lower audio revenue following last year's radio station divestitures, the absence of the prior year benefit from the federal election, and the shift of advertising dollars to the principal broadcaster of the 2026 Olympic Winter Games. advertising revenue was down 12.8% reflecting continued softness in non-sports traditional advertising demand lower audio revenue following last year's radio station divestitures the absence of the prior year benefit from the federal election and the shift of advertising dollars to the principal broadcaster of the 2026 olympic winter games That said, our digital strategy continues to have significant momentum. that said our digital strategy continues to have significant momentum Total digital revenues now represent 46% of Bell Media revenue, up three points from a year ago. total digital revenues now represent 46% of bell media revenue up three points from a year ago Operating costs were up 1.1%, driven by contractual content cost increases for premium sports and entertainment programming, partly offset by lower labor costs and operating efficiencies, resulting in an EBITDA decline of 2.5%. As Mirko noted, we remain on pace to deliver positive revenue and EBITDA growth for the full year. Turning to the balance sheet on slide 12. We ended Q1 with CAD 4.3 billion of total available liquidity, up from CAD 2.5 billion at year-end, supported by a CAD 1.5 billion hybrid note issuance completed in February and a CAD 750 million public debt offering in late March. Our liquidity position is strong and provides significant financial flexibility. Operating costs were up 1.1%, driven by contractual content cost increases for premium sports and entertainment programming, partly offset by lower labor costs and operating efficiencies, resulting in an EBITDA decline of 2.5%. operating costs were up 1.1% driven by contractual content cost increases for premium sports and entertainment programming partly offset by lower labor costs and operating efficiencies resulting in an ebitda decline of 2.5% As Mirko noted, we remain on pace to deliver positive revenue and EBITDA growth for the full year. as mirko noted we remain on pace to deliver positive revenue and ebitda growth for the full year Turning to the balance sheet on slide 12. turning to the balance sheet on slide 12 We ended Q1 with CAD 4.3 billion of total available liquidity, up from CAD 2.5 billion at year-end, supported by a CAD 1.5 billion hybrid note issuance completed in February and a CAD 750 million public debt offering in late March. we ended q1 with cad 4.3 billion of total available liquidity up from cad 2.5 billion at year-end supported by a cad 1.5 billion hybrid note issuance completed in february and a cad 750 million public debt offering in late march Our liquidity position is strong and provides significant financial flexibility. our liquidity position is strong and provides significant financial flexibility Our defined benefit pension plans remain in excellent shape with a solvency surplus of approximately CAD 4.5 billion And a solvency ratio of approximately 123%. We continue to benefit from a full contribution holiday. Net debt leverage was approximately 3.8x at the end of Q1, essentially unchanged from year-end. A couple of important items to unpack here. First, we paid CAD 542 million of cash taxes in Q1 related to the CAD 4.7 billion sale of our MLSE stake. That's a one-time cash outflow that is excluded from our free cash flow definition, but did reduce cash on hand in the quarter. Second, our reported leverage still reflects only 8 months of Ziply Fiber EBITDA in the trailing 12-month calculation. Our defined benefit pension plans remain in excellent shape with a solvency surplus of approximately CAD 4.5 billion And a solvency ratio of approximately 123%. our defined benefit pension plans remain in excellent shape with a solvency surplus of approximately cad 4.5 billion and a solvency ratio of approximately 123% We continue to benefit from a full contribution holiday. we continue to benefit from a full contribution holiday Net debt leverage was approximately 3.8x at the end of Q1, essentially unchanged from year-end. net debt leverage was approximately 3.8x at the end of q1 essentially unchanged from year-end A couple of important items to unpack here. a couple of important items to unpack here First, we paid CAD 542 million of cash taxes in Q1 related to the CAD 4.7 billion sale of our MLSE stake. first we paid cad 542 million of cash taxes in q1 related to the cad 4.7 billion sale of our mlse stake That's a one-time cash outflow that is excluded from our free cash flow definition, but did reduce cash on hand in the quarter. that's a one-time cash outflow that is excluded from our free cash flow definition but did reduce cash on hand in the quarter Second, our reported leverage still reflects only 8 months of Ziply Fiber EBITDA in the trailing 12-month calculation. second our reported leverage still reflects only 8 months of ziply fiber ebitda in the trailing 12-month calculation On a pro forma basis, adjusted to include a full 12 months of Ziply Fiber EBITDA, our net debt leverage ratio would be approximately 3.7x. Looking ahead, we have clear line of sight to further deleveraging. The announced disposition of our Land Mobile Radio Network services business to Motorola Solutions for CAD 675 million is expected to close in Q4, and upon closing, will improve our net debt leverage ratio by approximately 0.04x. We remain firmly on track to achieve our target net debt leverage ratio of 3.5x by the end of 2027, and to move below that level in 2028 while we continue to fund our strategic growth priorities. Turning to our 2026 financial targets on slide 13. On a pro forma basis, adjusted to include a full 12 months of Ziply Fiber EBITDA, our net debt leverage ratio would be approximately 3.7x . on a pro forma basis adjusted to include a full 12 months of ziply fiber ebitda our net debt leverage ratio would be approximately 3.7x Looking ahead, we have clear line of sight to further deleveraging. looking ahead we have clear line of sight to further deleveraging The announced disposition of our Land Mobile Radio Network services business to Motorola Solutions for CAD 675 million is expected to close in Q4, and upon closing, will improve our net debt leverage ratio by approximately 0.04x . the announced disposition of our land mobile radio network services business to motorola solutions for cad 675 million is expected to close in q4 and upon closing will improve our net debt leverage ratio by approximately 0.04x We remain firmly on track to achieve our target net debt leverage ratio of 3.5x by the end of 2027, and to move below that level in 2028 while we continue to fund our strategic growth priorities. we remain firmly on track to achieve our target net debt leverage ratio of 3.5x by the end of 2027 and to move below that level in 2028 while we continue to fund our strategic growth priorities Turning to our 2026 financial targets on slide 13. turning to our 2026 financial targets on slide 13 As a reminder, we updated our 2026 guidance on March 16th solely to reflect the expected financial impact of the Saskatchewan AI Data Center. Table on the slide shows both the original February guidance and the revised March guidance side-by-side so you can see the impact of our build in 2026. We expect to begin recognizing revenue and EBITDA from Saskatchewan in 2027. We remain confident in our full year guidance ranges. We're delivering on the commitments we made on deleveraging, on capital discipline, and on free cash flow growth. With that, I'll turn the call back over to Chris and the operator to begin Q&A. As a reminder, we updated our 2026 guidance on March 16th solely to reflect the expected financial impact of the Saskatchewan AI Data Center. as a reminder we updated our 2026 guidance on march 16th solely to reflect the expected financial impact of the saskatchewan ai data center Table on the slide shows both the original February guidance and the revised March guidance side- by- side so you can see the impact of our build in 2026. table on the slide shows both the original february guidance and the revised march guidance side- by- side so you can see the impact of our build in 2026 We expect to begin recognizing revenue and EBITDA from Saskatchewan in 2027. we expect to begin recognizing revenue and ebitda from saskatchewan in 2027 We remain confident in our full year guidance ranges. we remain confident in our full year guidance ranges We're delivering on the commitments we made on deleveraging, on capital discipline, and on free cash flow growth. we're delivering on the commitments we made on deleveraging on capital discipline and on free cash flow growth With that, I'll turn the call back over to Chris and the operator to begin Q&A. with that i'll turn the call back over to chris and the operator to begin q&a

Speaker 2: Thank you, Curtis. Before we start Q&A, I just want to remind everyone that due to time constraints this morning, because of our AGM taking place after this call, please limit yourselves to just one question and a brief follow-up so that we can get to as many in the queue as possible. With that, Matthew, we're ready to take our first question. Thank you, Curtis. thank you curtis Before we start Q&A, I just want to remind everyone that due to time constraints this morning, because of our AGM taking place after this call, please limit yourselves to just one question and a brief follow-up so that we can get to as many in the queue as possible. before we start q&a i just want to remind everyone that due to time constraints this morning because of our agm taking place after this call please limit yourselves to just one question and a brief follow-up so that we can get to as many in the queue as possible With that, Matthew, we're ready to take our first question. with that matthew we're ready to take our first question

Speaker 9: Okay. Our first question is from Drew McReynolds from RBC. Please go ahead. Okay. okay Our first question is from Drew McReynolds from RBC. our first question is from drew mcreynolds from rbc Please go ahead. please go ahead

Speaker 4: Yeah, thanks very much, and good morning. Just Mirko on the regulatory environment. You know, I think it's a little bit confusing on the wireless side. There's some kind of archaic, kind of, price control type things being implemented. On the wireline side, looks like we've got a relatively constructive TPIA and a final access rates on fiber. Out of Ottawa, it looks like they want to build, but sometimes that's not obvious in telecom. Love to just get a 30,000-foot updated view from you. In terms of the CapEx reduction across the space. Just how could that evolve over time if the investment climate, i.e., regulatory environment improves? Thank you. Yeah, thanks very much, and good morning. yeah thanks very much and good morning Just Mirko on the regulatory environment. just mirko on the regulatory environment You know, I think it's a little bit confusing on the wireless side. you know i think it's a little bit confusing on the wireless side There's some kind of archaic, kind of, price control type things being implemented. there's some kind of archaic kind of price control type things being implemented On the wireline side, looks like we've got a relatively constructive TPIA and a final access rates on fiber. on the wireline side looks like we've got a relatively constructive tpia and a final access rates on fiber Out of Ottawa, it looks like they want to build, but sometimes that's not obvious in telecom. out of ottawa it looks like they want to build but sometimes that's not obvious in telecom Love to just get a 30,000-foot updated view from you. love to just get a 30,000-foot updated view from you In terms of the CapEx reduction across the space. in terms of the capex reduction across the space Just how could that evolve over time if the investment climate, i.e., regulatory environment improves? just how could that evolve over time if the investment climate i.e regulatory environment improves Thank you. thank you

Speaker 8: Yeah, thanks for the question, Drew. I think the company BCE's views on kind of the regulatory environment writ large are pretty, you know, pretty well-known. We've been staunch defenders of facilities-based competition, but, you know, facilities-based competition are premised on an environment where companies are encouraged to invest in their networks, and that drives long-term sustainable competition. I'm not gonna kinda re-litigate all of that. Also don't intend to re-litigate the wholesale access decision for fiber. Views are well-known on that. Yeah, thanks for the question, Drew. yeah thanks for the question drew I think the company BCE's views on kind of the regulatory environment writ large are pretty, you know, pretty well-known. i think the company bce's views on kind of the regulatory environment writ large are pretty you know pretty well-known We've been staunch defenders of facilities-based competition, but, you know, facilities-based competition are premised on an environment where companies are encouraged to invest in their networks, and that drives long-term sustainable competition. we've been staunch defenders of facilities-based competition but you know facilities-based competition are premised on an environment where companies are encouraged to invest in their networks and that drives long-term sustainable competition I'm not gonna kinda re-litigate all of that. i'm not gonna kinda re-litigate all of that Also don't intend to re-litigate the wholesale access decision for fiber. also don't intend to re-litigate the wholesale access decision for fiber Views are well-known on that. views are well-known on that When you put all these things together, whether or not it's the kind of more kind of micro rules that are coming out wireless that you refer to or the, you know, the bigger, kind of more policy-oriented, fundamental rules like fiber access, put all those together, and clearly it's having an impact on investment in the industry. This is something that I personally have been talking about for as long as I've operated in the industry, which is January 2004. A staunch believer that if you create a framework that encourages investment will come. If you create an environment that discourages investment will suffer. You just take a look at Now I would refer back to 2022 because that's when we started to pull back on core Canadian telecom CapEx. When you put all these things together, whether or not it's the kind of more kind of micro rules that are coming out wireless that you refer to or the, you know, the bigger, kind of more policy-oriented, fundamental rules like fiber access, put all those together, and clearly it's having an impact on investment in the industry. when you put all these things together whether or not it's the kind of more kind of micro rules that are coming out wireless that you refer to or the you know the bigger kind of more policy-oriented fundamental rules like fiber access put all those together and clearly it's having an impact on investment in the industry This is something that I personally have been talking about for as long as I've operated in the industry, which is January 2004. this is something that i personally have been talking about for as long as i've operated in the industry which is january 2004 A staunch believer that if you create a framework that encourages investment will come. a staunch believer that if you create a framework that encourages investment will come If you create an environment that discourages investment will suffer. if you create an environment that discourages investment will suffer You just take a look at Now I would refer back to 2022 because that's when we started to pull back on core Canadian telecom CapEx. you just take a look at now i would refer back to 2022 because that's when we started to pull back on core canadian telecom capex If you just look at the capital investments over that short period of time in our industry on an annual basis, I mean, literally multiple billions of dollars of annual CapEx that are no longer being invested. I mean, that's frankly unfortunate. Look what we're doing. You know, we're being very, very disciplined in our core segment, capital allocation, especially being very disciplined on legacy segments within the, you know, the core business. Thankfully, and we saw this a couple of years ago. Thankfully, we've developed some highly differentiated opportunities where we can deploy capital in high growth, high return segments that aren't regulated. That's how we've pivoted. If the environment for the core businesses in the country were to shift, I'm sure capital would flow back in. I'll leave it at that. If you just look at the capital investments over that short period of time in our industry on an annual basis, I mean, literally multiple billions of dollars of annual CapEx that are no longer being invested. if you just look at the capital investments over that short period of time in our industry on an annual basis i mean literally multiple billions of dollars of annual capex that are no longer being invested I mean, that's frankly unfortunate. i mean that's frankly unfortunate Look what we're doing. look what we're doing You know, we're being very, very disciplined in our core segment, capital allocation, especially being very disciplined on legacy segments within the, you know, the core business. you know we're being very very disciplined in our core segment capital allocation especially being very disciplined on legacy segments within the you know the core business Thankfully, and we saw this a couple of years ago. thankfully and we saw this a couple of years ago Thankfully, we've developed some highly differentiated opportunities where we can deploy capital in high growth, high return segments that aren't regulated. thankfully we've developed some highly differentiated opportunities where we can deploy capital in high growth high return segments that aren't regulated That's how we've pivoted. that's how we've pivoted If the environment for the core businesses in the country were to shift, I'm sure capital would flow back in. if the environment for the core businesses in the country were to shift i'm sure capital would flow back in I'll leave it at that. i'll leave it at that

Speaker 4: Okay. I'll leave it there as well, just given time. Thank you. Okay. okay I'll leave it there as well, just given time. i'll leave it there as well just given time Thank you. thank you

Speaker 9: Thank you. Our next question is from Maher Yaghi from Scotiabank. Please go ahead. Thank you. thank you Our next question is from Maher Yaghi from Scotiabank. our next question is from maher yaghi from scotiabank Please go ahead. please go ahead

Speaker 6: Great. Thank you for taking my question. I just wanted to double down on the Saskatchewan investment. You guys mentioned you disclosed that you're gonna get CAD 400 million of prepayments and set-up fees. How have you received any of those in Q1, or when should we expect to see those flow into your balance sheet? Will they show up in the cash flow statement, in working capital or, you know, or deferred revenue is going to start showing those numbers? The second question on that is, can you provide some of the contractual protections you have with those customers in Saskatchewan, if there were delays, downsizing or exits from them, you know, in terms of termination fees, minimum payments, credit support, et cetera. Great. great Thank you for taking my question. thank you for taking my question I just wanted to double down on the Saskatchewan investment. i just wanted to double down on the saskatchewan investment You guys mentioned you disclosed that you're gonna get CAD 400 million of prepayments and set-up fees. you guys mentioned you disclosed that you're gonna get cad 400 million of prepayments and set-up fees How have you received any of those in Q1, or when should we expect to see those flow into your balance sheet? how have you received any of those in q1 or when should we expect to see those flow into your balance sheet Will they show up in the cash flow statement, in working capital or, you know, or deferred revenue is going to start showing those numbers? will they show up in the cash flow statement in working capital or you know or deferred revenue is going to start showing those numbers The second question on that is, can you provide some of the contractual protections you have with those customers in Saskatchewan, if there were delays, downsizing or exits from them, you know, in terms of termination fees, minimum payments, credit support, et cetera. the second question on that is can you provide some of the contractual protections you have with those customers in saskatchewan if there were delays downsizing or exits from them you know in terms of termination fees minimum payments credit support et cetera Again, finally on that, you know, with the schedule that you have to, you know, to have full capacity run rate by late 2027, what are the key, you know, building milestones that we should be thinking about in order to assess your advancement on that project? Thank you. Again, finally on that, you know, with the schedule that you have to, you know, to have full capacity run rate by late 2027, what are the key, you know, building milestones that we should be thinking about in order to assess your advancement on that project? again finally on that you know with the schedule that you have to you know to have full capacity run rate by late 2027 what are the key you know building milestones that we should be thinking about in order to assess your advancement on that project Thank you. thank you

Speaker 3: I'll jump in. Hi, Maher. There's a lot to unpack, so we'll circle back if we miss anything. No, in terms of spend to date, we have spent some CapEx in Saskatchewan, but it's less than CAD 20 million in quarters. Again, some spending we're off and running, but no payments that we've made that would then be refunded. Again, that would reduce our net capital at risk, but that hasn't happened yet. I mean, ultimately, we're looking to spend more CapEx. I'd say Q2 and Q3 are gonna be the heavier CapEx spends, where purchase orders for equipment, as Mirko said, over 90% of our equipment, we have purchase orders in. I'll jump in. i'll jump in Hi, Maher. hi maher There's a lot to unpack, so we'll circle back if we miss anything. there's a lot to unpack so we'll circle back if we miss anything No, in terms of spend to date, we have spent some CapEx in Saskatchewan, but it's less than CAD 20 million in quarters. no in terms of spend to date we have spent some capex in saskatchewan but it's less than cad 20 million in quarters Again, some spending we're off and running, but no payments that we've made that would then be refunded. again some spending we're off and running but no payments that we've made that would then be refunded Again, that would reduce our net capital at risk, but that hasn't happened yet. again that would reduce our net capital at risk but that hasn't happened yet I mean, ultimately, we're looking to spend more CapEx. i mean ultimately we're looking to spend more capex I'd say Q2 and Q3 are gonna be the heavier CapEx spends, where purchase orders for equipment, as Mirko said, over 90% of our equipment, we have purchase orders in. i'd say q2 and q3 are gonna be the heavier capex spends where purchase orders for equipment as mirko said over 90% of our equipment we have purchase orders in When that equipment starts coming in, CapEx will go up and we'll make sure to disclose what is gross, what is net, and what refunds have actually been credited along the way. To flip to your next question, you know, we do have standard protections. Won't list them all, but it is a take or pay contract. It's not, it's not a contract where, okay, they only need 60% along the way and then ramps up. It's a, it's a take or pay contract. In terms of milestones along the way, again, we'll be transparent. We'll provide information along the way. I think there are a few different phases. One is, permitting and getting the site ready, which you see is well underway. The earthworks, the piling. When that equipment starts coming in, CapEx will go up and we'll make sure to disclose what is gross, what is net, and what refunds have actually been credited along the way. when that equipment starts coming in capex will go up and we'll make sure to disclose what is gross what is net and what refunds have actually been credited along the way To flip to your next question, you know, we do have standard protections. to flip to your next question you know we do have standard protections Won't list them all, but it is a take or pay contract. won't list them all but it is a take or pay contract It's not, it's not a contract where, okay, they only need 60% along the way and then ramps up. it's not it's not a contract where okay they only need 60% along the way and then ramps up It's a, it's a take or pay contract. it's a it's a take or pay contract In terms of milestones along the way, again, we'll be transparent. in terms of milestones along the way again we'll be transparent We'll provide information along the way. we'll provide information along the way I think there are a few different phases. i think there are a few different phases One is, permitting and getting the site ready, which you see is well underway. one is permitting and getting the site ready which you see is well underway The earthworks, the piling. the earthworks the piling The second is putting up the four walls, which eventually you'll see on site. We're actually doing some prefab work offsite right now so that we again remain efficient in our timeline. I would say prep work, prefab, start putting up walls and then. The second is putting up the four walls, which eventually you'll see on site. the second is putting up the four walls which eventually you'll see on site We're actually doing some prefab work offsite right now so that we again remain efficient in our timeline. we're actually doing some prefab work offsite right now so that we again remain efficient in our timeline I would say prep work, prefab, start putting up walls and then. i would say prep work prefab start putting up walls and then That's cooling, et cetera. We'll keep our rest, but that's how I kind of bucket the different milestones. That's cooling, et cetera. that's cooling et cetera We'll keep our rest, but that's how I kind of bucket the different milestones. we'll keep our rest but that's how i kind of bucket the different milestones

Speaker 8: Thank you, Curtis. Thank you, Curtis. thank you curtis

Speaker 9: Thank you. Our next question is from Stephanie Price from CIBC World Markets. Please go ahead. Thank you. thank you Our next question is from Stephanie Price from CIBC World Markets. our next question is from stephanie price from cibc world markets Please go ahead. please go ahead

Speaker 11: Hi. Good morning. I'll stick with AI and Mirko, I think you mentioned upside that you see to the CAD 2 billion 2028 AI-powered solutions target. Just curious if you can give us any updates on line of sight to deploying, the additional, I think it's about 400 MW of power, or any additional data points you have on the demand environment here. Hi. hi Good morning. good morning I'll stick with AI and Mirko, I think you mentioned upside that you see to the CAD 2 billion 2028 AI-powered solutions target. i'll stick with ai and mirko i think you mentioned upside that you see to the cad 2 billion 2028 ai-powered solutions target Just curious if you can give us any updates on line of sight to deploying, the additional, I think it's about 400 MW of power, or any additional data points you have on the demand environment here. just curious if you can give us any updates on line of sight to deploying the additional i think it's about 400 mw of power or any additional data points you have on the demand environment here

Speaker 8: Well, I think I shouldn't be too specific other than to say very high degree of confidence in our ability to monetize the 800 MW for a reasonable period of time. That very high degree of confidence comes from the nature of the discussions we're having with a number of significant, you know, potential customers. You know, very significant customers. The conversations are in great shape, and that would be both on AI Fabric and certainly there's momentum in the parts of the AI solutions business that is outside the data centers. The ancillary services, a lot of momentum there. Well, I think I shouldn't be too specific other than to say very high degree of confidence in our ability to monetize the 800 MW for a reasonable period of time. well i think i shouldn't be too specific other than to say very high degree of confidence in our ability to monetize the 800 mw for a reasonable period of time That very high degree of confidence comes from the nature of the discussions we're having with a number of significant, you know, potential customers. that very high degree of confidence comes from the nature of the discussions we're having with a number of significant you know potential customers You know, very significant customers. you know very significant customers The conversations are in great shape, and that would be both on AI Fabric and certainly there's momentum in the parts of the AI solutions business that is outside the data centers. the conversations are in great shape and that would be both on ai fabric and certainly there's momentum in the parts of the ai solutions business that is outside the data centers The ancillary services, a lot of momentum there. the ancillary services a lot of momentum there Again, if you take a look at AI-powered solutions generally, even if you pull out the Merritt facility, there's been a strong growth there across Ateco and Bell Cyber. Just a reminder, just back to your question, Stephanie. We did say put Saskatchewan aside because that was incremental. If you go back to the fairly conservative 73 MW that we said we would monetize over a three-year period, we're already 40% of that 73 MW fully contracted, and we're only one quarter into basically a three-year guide. Didn't think we'd be 40% of the way there at the end of Q1 when we outlined the plan back in October. That's why I'm expressing the high degree of confidence. Again, if you take a look at AI-powered solutions generally, even if you pull out the Merritt facility, there's been a strong growth there across Ateco and Bell Cyber. again if you take a look at ai-powered solutions generally even if you pull out the merritt facility there's been a strong growth there across ateco and bell cyber Just a reminder, just back to your question, Stephanie. just a reminder just back to your question stephanie We did say put Saskatchewan aside because that was incremental. we did say put saskatchewan aside because that was incremental If you go back to the fairly conservative 73 MW that we said we would monetize over a three-year period, we're already 40% of that 73 MW fully contracted, and we're only one quarter into basically a three-year guide. if you go back to the fairly conservative 73 mw that we said we would monetize over a three-year period we're already 40% of that 73 mw fully contracted and we're only one quarter into basically a three-year guide Didn't think we'd be 40% of the way there at the end of Q1 when we outlined the plan back in October. didn't think we'd be 40% of the way there at the end of q1 when we outlined the plan back in october That's why I'm expressing the high degree of confidence. that's why i'm expressing the high degree of confidence

Speaker 11: Thank you very much. Thank you very much. thank you very much

Speaker 9: Thank you. Our next question is from Tim Casey from BMO Capital Markets. Please go ahead. Thank you. thank you Our next question is from Tim Casey from BMO Capital Markets. our next question is from tim casey from bmo capital markets Please go ahead. please go ahead

Speaker 12: Good morning. Mirko, both you and Curtis, in your comments talked about when pricing normalizes coming out of Q1. Can you just walk through, you know, why you think that? I mean, what's gonna change in behavior given we're in a low growth environment and a high penetration environment? What gives you confidence that that pricing environment in both wireless and wireline is gonna improve going forward? Good morning. good morning Mirko , both you and Curtis , in your comments talked about when pricing normalizes coming out of Q1. mirko both you and curtis in your comments talked about when pricing normalizes coming out of q1 Can you just walk through, you know, why you think that? can you just walk through you know why you think that I mean, what's gonna change in behavior given we're in a low growth environment and a high penetration environment? i mean what's gonna change in behavior given we're in a low growth environment and a high penetration environment What gives you confidence that that pricing environment in both wireless and wireline is gonna improve going forward? what gives you confidence that that pricing environment in both wireless and wireline is gonna improve going forward

Speaker 8: Thanks for the question, Tim. I mean, the first data point is that you know, so far in Q2, we're only a month in. Pricing has stabilized, that's a positive sign. Second point is just generally as we operate. When you're in a low growth environment, I subscribe to kind of what analysts like have been saying, which is in that low growth environment, pricing discipline should prevail over everything else. I don't plan to get into who did what in Q1 and when, but I will emphasize what our plan has been, and it's consistent. Focus on the premium Bell brand, where we have the better ability to increase product intensity. Thanks for the question, Tim. thanks for the question tim I mean, the first data point is that you know, so far in Q2, we're only a month in. i mean the first data point is that you know so far in q2 we're only a month in Pricing has stabilized, that's a positive sign. pricing has stabilized that's a positive sign Second point is just generally as we operate. second point is just generally as we operate When you're in a low growth environment, I subscribe to kind of what analysts like have been saying, which is in that low growth environment, pricing discipline should prevail over everything else. when you're in a low growth environment i subscribe to kind of what analysts like have been saying which is in that low growth environment pricing discipline should prevail over everything else I don't plan to get into who did what in Q1 and when, but I will emphasize what our plan has been, and it's consistent. i don't plan to get into who did what in q1 and when but i will emphasize what our plan has been and it's consistent Focus on the premium Bell brand, where we have the better ability to increase product intensity. focus on the premium bell brand where we have the better ability to increase product intensity By the way, in product intensity, I'm obviously referring to both fiber and the streaming content bundles that we have. We will have to continue to differentiate ourselves on customer experience. Going back, kind of, first lines in Q2, positive in terms of price stability. Secondly, we don't plan to lead on pricing, and we're gonna focus on overall value prop. We're gonna optimize lifetime economics, but ultimately it is a competitive market, so we have to kind of check and adjust along the way every once in a while. So far, so good in Q2. By the way, in product intensity, I'm obviously referring to both fiber and the streaming content bundles that we have. by the way in product intensity i'm obviously referring to both fiber and the streaming content bundles that we have We will have to continue to differentiate ourselves on customer experience. we will have to continue to differentiate ourselves on customer experience Going back, kind of, first lines in Q2, positive in terms of price stability. going back kind of first lines in q2 positive in terms of price stability Secondly, we don't plan to lead on pricing, and we're gonna focus on overall value prop. secondly we don't plan to lead on pricing and we're gonna focus on overall value prop We're gonna optimize lifetime economics, but ultimately it is a competitive market, so we have to kind of check and adjust along the way every once in a while. we're gonna optimize lifetime economics but ultimately it is a competitive market so we have to kind of check and adjust along the way every once in a while So far, so good in Q2. so far so good in q2

Speaker 12: How about on the bundling side? Are you seeing any lessening or moderation of intensity there? How about on the bundling side? how about on the bundling side Are you seeing any lessening or moderation of intensity there? are you seeing any lessening or moderation of intensity there

Speaker 3: Yeah. Hi, Tim. No, on the on the fiber-led bundling, it's actually up a little bit in Q1 versus our embedded base. No, no signs of slowing down. Again, we do have the biggest fiber footprint in Canada. We're certainly leveraging that product advantage. Yeah. yeah Hi, Tim. hi tim No, on the on the fiber-led bundling, it's actually up a little bit in Q1 versus our embedded base. no on the on the fiber-led bundling it's actually up a little bit in q1 versus our embedded base No, no signs of slowing down. no no signs of slowing down Again, we do have the biggest fiber footprint in Canada. again we do have the biggest fiber footprint in canada We're certainly leveraging that product advantage. we're certainly leveraging that product advantage

Speaker 12: Thank you. Thank you. thank you

Speaker 9: Thank you. Our next question is from Sebastiano Petti from JPMorgan. Please go ahead. Thank you. thank you Our next question is from Sebastiano Petti from JPMorgan. our next question is from sebastiano petti from jpmorgan Please go ahead. please go ahead

Speaker 10: I've got a quick housekeeping question. If you could provide the, I guess, wholesale contribution to retail Internet adds in the first quarter, because I think if you look at it on an adjusted basis, retail wholesale was a drag or a decline in 1Q of20 25. I wasn't sure if maybe you could provide us with the wholesale contribution in 1Q 2026. We kinda have a like for like as we kinda think about the subsequent quarters. That's the 1st question. Then second question, obviously lots of focus around, you know, satellite broadband and directed device, you know, connectivity on the wireless side as well. I guess, are you seeing any impact from satellite broadband in your maybe more rural non-fiber markets? Obviously, you know, fiber wins in the FTTH footprint. I've got a quick housekeeping question. i've got a quick housekeeping question If you could provide the, I guess, wholesale contribution to retail Internet adds in the first quarter, because I think if you look at it on an adjusted basis, retail wholesale was a drag or a decline in 1Q of20 25. if you could provide the i guess wholesale contribution to retail internet adds in the first quarter because i think if you look at it on an adjusted basis retail wholesale was a drag or a decline in 1q of20 25 I wasn't sure if maybe you could provide us with the wholesale contribution in 1Q 2026. i wasn't sure if maybe you could provide us with the wholesale contribution in 1q 2026 We kinda have a like for like as we kinda think about the subsequent quarters. we kinda have a like for like as we kinda think about the subsequent quarters That's the 1st question. that's the 1st question Then second question, obviously lots of focus around, you know, satellite broadband and directed device, you know, connectivity on the wireless side as well. then second question obviously lots of focus around you know satellite broadband and directed device you know connectivity on the wireless side as well I guess, are you seeing any impact from satellite broadband in your maybe more rural non-fiber markets? i guess are you seeing any impact from satellite broadband in your maybe more rural non-fiber markets Obviously, you know, fiber wins in the FTTH footprint. obviously you know fiber wins in the ftth footprint Above and beyond that, are you seeing any maybe incremental nibbling on the margins there? you know, lots of headlines recently with AST SpaceMobile, I guess maybe help us think about how you see that product evolving over time or where your kind of ambitions are there, obviously, and how do you kinda see it Table stakes going forward as you kind of think about your consumer lead or trying to meet your consumers where they are in terms of product demand? Thank you very much. Above and beyond that, are you seeing any maybe incremental nibbling on the margins there? you know, lots of headlines recently with AST SpaceMobile, I guess maybe help us think about how you see that product evolving over time or where your kind of ambitions are there, obviously, and how do you kinda see it Table stakes going forward as you kind of think about your consumer lead or trying to meet your consumers where they are in terms of product demand? above and beyond that are you seeing any maybe incremental nibbling on the margins there you know lots of headlines recently with ast spacemobile i guess maybe help us think about how you see that product evolving over time or where your kind of ambitions are there obviously and how do you kinda see it table stakes going forward as you kind of think about your consumer lead or trying to meet your consumers where they are in terms of product demand Thank you very much. thank you very much

Speaker 8: Thanks, Sebastiano. I'll do the second part and then, Curtis, you can handle the first question. On the second part, look, we're really, we're really excited about our partnership with AST and the upcoming service that we'll be able to deliver to Canadian consumers to solidify the network experience they have with us, particularly on the fixed device side where we don't have coverage. That's going to be the principal use case for us. Re-recognize that with AST, we'll be able to provide voice, broadband, streaming, data, all of it. Quite excited about the partnership with AST. We're in the cap table, so we're excited about that too. That's on AST. More broadly on satellite broadband and its impacts in rural. Thanks, Sebastiano. thanks sebastiano I'll do the second part and then, Curtis, you can handle the first question. i'll do the second part and then curtis you can handle the first question On the second part, look, we're really, we're really excited about our partnership with AST and the upcoming service that we'll be able to deliver to Canadian consumers to solidify the network experience they have with us, particularly on the fixed device side where we don't have coverage. on the second part look we're really we're really excited about our partnership with ast and the upcoming service that we'll be able to deliver to canadian consumers to solidify the network experience they have with us particularly on the fixed device side where we don't have coverage That's going to be the principal use case for us. that's going to be the principal use case for us Re-recognize that with AST, we'll be able to provide voice, broadband, streaming, data, all of it. re-recognize that with ast we'll be able to provide voice broadband streaming data all of it Quite excited about the partnership with AST. quite excited about the partnership with ast We're in the cap table, so we're excited about that too. we're in the cap table so we're excited about that too That's on AST. that's on ast More broadly on satellite broadband and its impacts in rural. more broadly on satellite broadband and its impacts in rural Satellite broadband, generally speaking, like, now I'm gonna give you a macro answer. We're not seeing it have an impact where we have fiber, and you can see that in our strong fiber numbers. You know, nothing replaces fiber, frankly, for broadband. In rural areas, you know, where we have, you know, legacy copper, low speed, DSL, that's not competitive. Whether or not it's a tier one cable or fixed wireless or satellite broadband, you can expect to continue to see losses where we have where we have DSL. You know, that's just the facts and whether or not it's broadband, a satellite broadband or something else that's eating away at our customer base there, kinda really doesn't matter which one it is. Satellite broadband, generally speaking, like, now I'm gonna give you a macro answer. satellite broadband generally speaking like now i'm gonna give you a macro answer We're not seeing it have an impact where we have fiber, and you can see that in our strong fiber numbers. we're not seeing it have an impact where we have fiber and you can see that in our strong fiber numbers You know, nothing replaces fiber, frankly, for broadband. you know nothing replaces fiber frankly for broadband In rural areas, you know, where we have, you know, legacy copper, low speed, DSL, that's not competitive. in rural areas you know where we have you know legacy copper low speed dsl that's not competitive Whether or not it's a tier one cable or fixed wireless or satellite broadband, you can expect to continue to see losses where we have where we have DSL. whether or not it's a tier one cable or fixed wireless or satellite broadband you can expect to continue to see losses where we have where we have dsl You know, that's just the facts and whether or not it's broadband, a satellite broadband or something else that's eating away at our customer base there, kinda really doesn't matter which one it is. you know that's just the facts and whether or not it's broadband a satellite broadband or something else that's eating away at our customer base there kinda really doesn't matter which one it is That's kinda my answers there. I hope that's helpful, Sebastiano, on satellite broadband and on AST. That's kinda my answers there. that's kinda my answers there I hope that's helpful, Sebastiano, on satellite broadband and on AST. i hope that's helpful sebastiano on satellite broadband and on ast

Speaker 3: Thanks, Sebastiano, on the first part of your question. We did restate 2025, it is apples-to-apples. You know, going forward, that is how we're gonna report. We do think it's just how we monetize the network in this current reg environment. We think it's more appropriate to share it on a combined basis. Again, it is apples to apples, period over period. Thanks, Sebastiano, on the first part of your question. thanks sebastiano on the first part of your question We did restate 2025, it is apples- to- apples. we did restate 2025 it is apples- to- apples You know, going forward, that is how we're gonna report. you know going forward that is how we're gonna report We do think it's just how we monetize the network in this current reg environment. we do think it's just how we monetize the network in this current reg environment We think it's more appropriate to share it on a combined basis. we think it's more appropriate to share it on a combined basis Again, it is apples to apples, period over period. again it is apples to apples period over period

Speaker 10: Yeah. If we look at the new reporting versus the old reporting, you can see that there's a decline in, like, oh, it's, you know, 6,000 in 1 Q. Right. On your new reporting relative to your old reporting. I wasn't sure if there's Wholesale is a contributing factor to the 14 or is it? Would report it have been higher or lower without wholesale? Is the question essentially. Yeah. yeah If we look at the new reporting versus the old reporting, you can see that there's a decline in, like, oh, it's, you know, 6,000 in 1 Q. if we look at the new reporting versus the old reporting you can see that there's a decline in like oh it's you know 6,000 in 1 q Right. right On your new reporting relative to your old reporting. on your new reporting relative to your old reporting I wasn't sure if there's Wholesale is a contributing factor to the 14 or is it? i wasn't sure if there's wholesale is a contributing factor to the 14 or is it Would report it have been higher or lower without wholesale? would report it have been higher or lower without wholesale Is the question essentially. is the question essentially

Speaker 3: Yeah. I would assume wholesale impact year-over-year has had a bigger impact, given the reg environment. Again, it is full monetization of our network going forward. You know, everything is driving revenue. Yeah. yeah I would assume wholesale impact year-over-year has had a bigger impact, given the reg environment. i would assume wholesale impact year-over-year has had a bigger impact given the reg environment Again, it is full monetization of our network going forward. again it is full monetization of our network going forward You know, everything is driving revenue. you know everything is driving revenue

Speaker 8: The retail performance remains quite strong. I mean, retail, I mean the, our own branded performance remains quite strong. The retail performance remains quite strong. the retail performance remains quite strong I mean, retail, I mean the, our own branded performance remains quite strong. i mean retail i mean the our own branded performance remains quite strong

Speaker 10: That's helpful. Thank you, guys. That's helpful. that's helpful Thank you, guys. thank you guys

Speaker 9: Thank you. Our next question is from Jérôme Dubreuil from Desjardins Securities. Please go ahead. Thank you. thank you Our next question is from Jérôme Dubreuil from Desjardins Securities. our next question is from jérôme dubreuil from desjardins securities Please go ahead. please go ahead

Speaker 5: Hey, good morning. Thanks for taking my questions. Two on Bell AI Fabric. The 1st one is a follow-up to Stephanie's question on the 427 MW of power that is not contracted yet. You said, you're pretty confident to be able to monetize that. Any chance you can talk about whether this could be made at kind of similar IRRs and what you're talking about on the Saskatchewan side? The second one on Bell AI Fabric is, if you can kind of quantify or talk about your ability to be to secure additional power going forward in Canada. Thank you. Hey, good morning. hey good morning Thanks for taking my questions. thanks for taking my questions Two on Bell AI Fabric. two on bell ai fabric The 1st one is a follow-up to Stephanie's question on the 427 MW of power that is not contracted yet. the 1st one is a follow-up to stephanie's question on the 427 mw of power that is not contracted yet You said, you're pretty confident to be able to monetize that. you said you're pretty confident to be able to monetize that Any chance you can talk about whether this could be made at kind of similar IRRs and what you're talking about on the Saskatchewan side? any chance you can talk about whether this could be made at kind of similar irrs and what you're talking about on the saskatchewan side The second one on Bell AI Fabric is, if you can kind of quantify or talk about your ability to be to secure additional power going forward in Canada. the second one on bell ai fabric is if you can kind of quantify or talk about your ability to be to secure additional power going forward in canada Thank you. thank you

Speaker 8: Thanks, Jérôme. Yes. The first question is, yes, we're still, you know, we have our eyes set on, or objective set on, you know, strong returns through monetization of the remaining power we have access to. Remember, and I reiterated this in my opening remarks, our approach on all this is going to be return led, demand driven. Get the demand, sign the contracts, invest the capital, build, generate the returns. Return driven demand, you know, return led, demand driven. On, you know, is there the possibility of having more than 800 MW to monetize? Yes, that is possible. We keep looking at opportunities. You know, we have nothing to announce in terms of, you know, access to power beyond 800 MW, but it's something we're looking at. Thanks, Jérôme. thanks jérôme Yes. yes The first question is, yes, we're still, you know, we have our eyes set on, or objective set on, you know, strong returns through monetization of the remaining power we have access to. the first question is yes we're still you know we have our eyes set on or objective set on you know strong returns through monetization of the remaining power we have access to Remember, and I reiterated this in my opening remarks, our approach on all this is going to be return led, demand driven. remember and i reiterated this in my opening remarks our approach on all this is going to be return led demand driven Get the demand, sign the contracts, invest the capital, build, generate the returns. get the demand sign the contracts invest the capital build generate the returns Return driven demand, you know, return led, demand driven. return driven demand you know return led demand driven On, you know, is there the possibility of having more than 800 MW to monetize? on you know is there the possibility of having more than 800 mw to monetize Yes, that is possible. yes that is possible We keep looking at opportunities. we keep looking at opportunities You know, we have nothing to announce in terms of, you know, access to power beyond 800 MW, but it's something we're looking at. you know we have nothing to announce in terms of you know access to power beyond 800 mw but it's something we're looking at You know, if the opportunities arise, we will definitely seize upon them. You know, if the opportunities arise, we will definitely seize upon them. you know if the opportunities arise we will definitely seize upon them

Speaker 5: Thank you. Thank you. thank you

Speaker 9: Thank you. Our next question is from Vince Valentini from TD Securities. Please go ahead. Thank you. thank you Our next question is from Vince Valentini from TD Securities. our next question is from vince valentini from td securities Please go ahead. please go ahead

Speaker 13: Hey, thanks very much. Clarification first. Curtis, can you give us what the revenue e was from the Merritt, BC facility this quarter? Second, we're talking about these subs and the definition changes. Fine, it makes perfect sense to count wholesale and to count streaming subs. Can I just, like, make sure you're not changing any executive compensation formulas to give yourselves bonuses based on subs, given the change in definition? It's just you're changing it because you think that's a more transparent way to show it to us? Hey, thanks very much. hey thanks very much Clarification first. clarification first Curtis, can you give us what the revenue e was from the Merritt, BC facility this quarter? curtis can you give us what the revenue e was from the merritt bc facility this quarter Second, we're talking about these subs and the definition changes. second we're talking about these subs and the definition changes Fine, it makes perfect sense to count wholesale and to count streaming subs. fine it makes perfect sense to count wholesale and to count streaming subs Can I just, like, make sure you're not changing any executive compensation formulas to give yourselves bonuses based on subs, given the change in definition? can i just like make sure you're not changing any executive compensation formulas to give yourselves bonuses based on subs given the change in definition It's just you're changing it because you think that's a more transparent way to show it to us? it's just you're changing it because you think that's a more transparent way to show it to us

Speaker 8: No. Sub growth, sub volumes, connections, none of that is baked into any of the metrics for our compensation. Our compensation is based. Certainly, the long-term compensation, Vince, as you know, we've talked about this before, is based on driving free cash flow and hitting our leverage targets. No. no Sub growth, sub volumes, connections, none of that is baked into any of the metrics for our compensation. sub growth sub volumes connections none of that is baked into any of the metrics for our compensation Our compensation is based. our compensation is based Certainly, the long-term compensation, Vince, as you know, we've talked about this before, is based on driving free cash flow and hitting our leverage targets. certainly the long-term compensation vince as you know we've talked about this before is based on driving free cash flow and hitting our leverage targets

Speaker 3: Then, Vince, to your question on Bell AI Fabric. If you look to the product revenue change year-over-year, it's about CAD 100 million. You can, you know, roughly that's the impact of the finance lease facility. One more thing actually on the. Then, Vince, to your question on Bell AI Fabric. then vince to your question on bell ai fabric If you look to the product revenue change year-over-year, it's about CAD 100 million. if you look to the product revenue change year-over-year it's about cad 100 million You can, you know, roughly that's the impact of the finance lease facility. you can you know roughly that's the impact of the finance lease facility One more thing actually on the. one more thing actually on the

Speaker 8: Okay, Vince, mind if I just jump in here on the, on the question around the sub metrics and particularly around the content ones? Because I think Curtis has handled already the fiber subs. On the streaming bundles, let me explain that, kind of, the philosophy behind the change. If you go all the way back to 1999 when we launched satellite TV, what the Bell consumer business has been offering to consumers is bundled content. That's what we offer. That was with satellite TV at first, and then we had Fibe TV gen 1, gen 2, gen 3, and, you know, we're into hardware-free TV, and now we're into streaming content bundles. Okay, Vince, mind if I just jump in here on the, on the question around the sub metrics and particularly around the content ones? okay vince mind if i just jump in here on the on the question around the sub metrics and particularly around the content ones Because I think Curtis has handled already the fiber subs. because i think curtis has handled already the fiber subs On the streaming bundles, let me explain that, kind of, the philosophy behind the change. on the streaming bundles let me explain that kind of the philosophy behind the change If you go all the way back to 1999 when we launched satellite TV, what the Bell consumer business has been offering to consumers is bundled content. if you go all the way back to 1999 when we launched satellite tv what the bell consumer business has been offering to consumers is bundled content That's what we offer. that's what we offer That was with satellite TV at first, and then we had Fibe TV gen 1, gen 2, gen 3, and, you know, we're into hardware-free TV, and now we're into streaming content bundles. that was with satellite tv at first and then we had fibe tv gen 1 gen 2 gen 3 and you know we're into hardware-free tv and now we're into streaming content bundles All of those is just about providing bundles of content to consumers. We shouldn't kinda measure ourselves based on the technology we use to deliver that. It's the fact that we're delivering bundled content. That's why we changed the subscriber metrics for TV. All of those is just about providing bundles of content to consumers. all of those is just about providing bundles of content to consumers We shouldn't kinda measure ourselves based on the technology we use to deliver that. we shouldn't kinda measure ourselves based on the technology we use to deliver that It's the fact that we're delivering bundled content. it's the fact that we're delivering bundled content That's why we changed the subscriber metrics for TV. that's why we changed the subscriber metrics for tv

Speaker 13: No, appreciate that, Mirko. Just Curtis, sorry. On the CAD 100 million revenue, we kind of derived that, I agree, from the product revenue. It's really EBITDA, the margins. I mean, I assume this is positive margin product revenue or, like, 20%-25% margin. Is that somewhere in the ballpark? No, appreciate that, Mirko. no appreciate that mirko Just Curtis, sorry. just curtis sorry On the CAD 100 million revenue, we kind of derived that, I agree, from the product revenue. on the cad 100 million revenue we kind of derived that i agree from the product revenue It's really EBITDA, the margins. it's really ebitda the margins I mean, I assume this is positive margin product revenue or, like, 20%-25% margin. i mean i assume this is positive margin product revenue or like 20%-25% margin Is that somewhere in the ballpark? is that somewhere in the ballpark

Speaker 3: Yeah, I'd say it's a little higher than that and in line with the numbers we provided for the entirety of the 73 MW portfolio. Yeah, I'd say it's a little higher than that and in line with the numbers we provided for the entirety of the 73 MW portfolio. yeah i'd say it's a little higher than that and in line with the numbers we provided for the entirety of the 73 mw portfolio

Speaker 13: Thank you. Thank you. thank you

Speaker 3: Thanks, Vince. Thanks, Vince. thanks vince

Speaker 9: Thank you. Our next question is from Batya Levi from UBS. Please go ahead. Thank you. thank you Our next question is from Batya Levi from UBS. our next question is from batya levi from ubs Please go ahead. please go ahead

Speaker 1: Great. Thank you. Can you talk a little bit about the trends that you're seeing in the U.S., maybe in terms of the competitive intensity and pricing you're seeing in the market? A quick reminder of Ziply's contribution for revenue and EBITDA would be helpful. I think you had mentioned that you would expect revenues to grow double digits. Is that still the outlook? Thank you. Great. great Thank you. thank you Can you talk a little bit about the trends that you're seeing in the U.S., maybe in terms of the competitive intensity and pricing you're seeing in the market? can you talk a little bit about the trends that you're seeing in the u.s maybe in terms of the competitive intensity and pricing you're seeing in the market A quick reminder of Ziply's contribution for revenue and EBITDA would be helpful. a quick reminder of ziply's contribution for revenue and ebitda would be helpful I think you had mentioned that you would expect revenues to grow double digits. i think you had mentioned that you would expect revenues to grow double digits Is that still the outlook? is that still the outlook Thank you. thank you

Speaker 8: The first one, I'll take the first one, Mirko, Batya Levi. The underlying fundamentals for Ziply are there. They remain there. The demand for fiber is very strong. Customers prefer fiber. It's no different in the U.S. than it is in Canada, as you know. Particularly where we have fiber, the penetration gains are following the profile that, you know, Ziply's had since its inception and creation in 2020 and in line with what we see at Bell where we have fiber. All the, you know, the long-term economics, all remain very, very supportive on that front. The first one, I'll take the first one, Mirko, Batya Levi. the first one i'll take the first one mirko batya levi The underlying fundamentals for Ziply are there. the underlying fundamentals for ziply are there They remain there. they remain there The demand for fiber is very strong. the demand for fiber is very strong Customers prefer fiber. customers prefer fiber It's no different in the U.S. than it is in Canada, as you know. it's no different in the u.s than it is in canada as you know Particularly where we have fiber, the penetration gains are following the profile that, you know, Ziply's had since its inception and creation in 2020 and in line with what we see at Bell where we have fiber. particularly where we have fiber the penetration gains are following the profile that you know ziply's had since its inception and creation in 2020 and in line with what we see at bell where we have fiber All the, you know, the long-term economics, all remain very, very supportive on that front. all the you know the long-term economics all remain very very supportive on that front As far as the competitive dynamics are concerned, again, when I'm saying that our penetration gains where we have fiber remain as expected and in line with what we've seen in the past, that includes in the more recent period where some of the cable competitors have been more aggressive on pricing. More recently, we've seen better stability or more stability on broadband pricing where we operate in the U.S. from our major competitors compared to perhaps the end of last year. As far as the competitive dynamics are concerned, again, when I'm saying that our penetration gains where we have fiber remain as expected and in line with what we've seen in the past, that includes in the more recent period where some of the cable competitors have been more aggressive on pricing. as far as the competitive dynamics are concerned again when i'm saying that our penetration gains where we have fiber remain as expected and in line with what we've seen in the past that includes in the more recent period where some of the cable competitors have been more aggressive on pricing More recently, we've seen better stability or more stability on broadband pricing where we operate in the U.S. from our major competitors compared to perhaps the end of last year. more recently we've seen better stability or more stability on broadband pricing where we operate in the u.s from our major competitors compared to perhaps the end of last year

Speaker 3: And then in terms of the contribution- And then in terms of the contribution- and then in terms of the contribution-

Speaker 1: Got it. Got it. got it

Speaker 3: In Q1, Batya, it's Curtis, right? It's CAD 234 million of revenue and just over CAD 100 million of EBITDA. You know, representing growth, if you just multiply it by 4, versus the 0.9 that we talked about in 2025 for Ziply Fiber. Ultimately, the growth for us is continue to drive our footprint expansion, leverage our partnership with PSP to fund incremental footprint build. I would say Q1 of 2026 was the first time that Network FiberCo actually deployed capital. That will continue to ramp and continue to help Ziply drive penetration and subscriber growth. The real growth metric for us is by the time we get to 2028, right, drive way more subs and significant revenue and EBITDA growth. In Q1, Batya, it's Curtis, right? in q1 batya it's curtis right It's CAD 234 million of revenue and just over CAD 100 million of EBITDA. it's cad 234 million of revenue and just over cad 100 million of ebitda You know, representing growth, if you just multiply it by 4, versus the 0.9 that we talked about in 2025 for Ziply Fiber. you know representing growth if you just multiply it by 4 versus the 0.9 that we talked about in 2025 for ziply fiber Ultimately, the growth for us is continue to drive our footprint expansion, leverage our partnership with PSP to fund incremental footprint build. ultimately the growth for us is continue to drive our footprint expansion leverage our partnership with psp to fund incremental footprint build I would say Q1 of 2026 was the first time that Network FiberCo actually deployed capital. i would say q1 of 2026 was the first time that network fiberco actually deployed capital That will continue to ramp and continue to help Ziply drive penetration and subscriber growth. that will continue to ramp and continue to help ziply drive penetration and subscriber growth The real growth metric for us is by the time we get to 2028, right, drive way more subs and significant revenue and EBITDA growth. the real growth metric for us is by the time we get to 2028 right drive way more subs and significant revenue and ebitda growth On a short-term, percent growth will be good, but, you know, we're looking for total CAD of contribution, as we continue to ramp and get through some of the initial ramps. 2027, 2028 financials are what I'm focused on. On a short- term, percent growth will be good, but, you know, we're looking for total CAD of contribution, as we continue to ramp and get through some of the initial ramps. 2027, 2028 financials are what I'm focused on. on a short- term percent growth will be good but you know we're looking for total cad of contribution as we continue to ramp and get through some of the initial ramps 2027 2028 financials are what i'm focused on

Speaker 1: Got it. Thank you. Got it. got it Thank you. thank you

Speaker 9: Thank you. Our next question is from Matthew Griffiths from Bank of America. Please go ahead. Thank you. thank you Our next question is from Matthew Griffiths from Bank of America. our next question is from matthew griffiths from bank of america Please go ahead. please go ahead

Speaker 7: Hi, thanks for taking the question. I just wanted to circle back again to the AI-powered revenue. Just some clarifications, maybe just for my benefit. For the AI Fabric, is all of that revenue gonna get grouped into the product revenue as these facilities come online? The growth in AI-powered revenue overall seems to be, and maybe you can give some color on, you know, the other, like Ateco and fiber's contribution to that growth, because just it's partially because of the Merritt facility being delivered. That was near the end of the quarter, and I can't imagine that was at that stage a really big driver of the year-over-year increase. Hi, thanks for taking the question. hi thanks for taking the question I just wanted to circle back again to the AI-powered revenue. i just wanted to circle back again to the ai-powered revenue Just some clarifications, maybe just for my benefit. just some clarifications maybe just for my benefit For the AI Fabric, is all of that revenue gonna get grouped into the product revenue as these facilities come online? for the ai fabric is all of that revenue gonna get grouped into the product revenue as these facilities come online The growth in AI-powered revenue overall seems to be, and maybe you can give some color on, you know, the other, like Ateco and fiber's contribution to that growth, because just it's partially because of the Merritt facility being delivered. the growth in ai-powered revenue overall seems to be and maybe you can give some color on you know the other like ateco and fiber's contribution to that growth because just it's partially because of the merritt facility being delivered That was near the end of the quarter, and I can't imagine that was at that stage a really big driver of the year-over-year increase. that was near the end of the quarter and i can't imagine that was at that stage a really big driver of the year-over-year increase Just, you know, maybe some details on, like, the other part of the three-legged stool that is driving that line would be helpful. Thanks. Just, you know, maybe some details on, like, the other part of the three-legged stool that is driving that line would be helpful. just you know maybe some details on like the other part of the three-legged stool that is driving that line would be helpful Thanks. thanks

Speaker 3: Sure. Hi, Matt. It's Curtis. The Merritt facility is recognized as a finance lease. Yes, it does get, it benefits the product revenue, and that's the roughly CAD 100 million year-over-year increase that you would see there. The first two facilities, Mission Flats and Merritt, both accounted for as finance leases. Again, the accounting, the revenue and EBITDA accounting follows the contract. There is no difference at all in free cash flow. We capture free cash flow over the term of the contract, we'll continue to reap the free cash flow benefit over time. The Winnipeg facility is operating lease. That's why you don't see much of a benefit in this quarter. Again, free cash flow over time, revenue, service revenue and EBITDA over time as well as CapEx. Sure. sure Hi, Matt. hi matt It's Curtis. it's curtis The Merritt facility is recognized as a finance lease. the merritt facility is recognized as a finance lease Yes, it does get, it benefits the product revenue, and that's the roughly CAD 100 million year-over-year increase that you would see there. yes it does get it benefits the product revenue and that's the roughly cad 100 million year-over-year increase that you would see there The first two facilities, Mission Flats and Merritt, both accounted for as finance leases. the first two facilities mission flats and merritt both accounted for as finance leases Again, the accounting, the revenue and EBITDA accounting follows the contract. again the accounting the revenue and ebitda accounting follows the contract There is no difference at all in free cash flow. there is no difference at all in free cash flow We capture free cash flow over the term of the contract, we'll continue to reap the free cash flow benefit over time. we capture free cash flow over the term of the contract we'll continue to reap the free cash flow benefit over time The Winnipeg facility is operating lease. the winnipeg facility is operating lease That's why you don't see much of a benefit in this quarter. that's why you don't see much of a benefit in this quarter Again, free cash flow over time, revenue, service revenue and EBITDA over time as well as CapEx. again free cash flow over time revenue service revenue and ebitda over time as well as capex Again, for Winnipeg operating lease, you saw CapEx in Q1 we actually spent, but you haven't seen the impact or the benefit of revenue and EBITDA. When you look at Saskatchewan, again, that's operating lease. You're seeing the burden of CapEx hit our financials. Revenue will be service revenue over time, and EBITDA will be captured over time as well. We do expect the majority of our Bell AI Fabric contracts signed going forward to have operating lease treatment. Again, for Winnipeg operating lease, you saw CapEx in Q1 we actually spent, but you haven't seen the impact or the benefit of revenue and EBITDA. again for winnipeg operating lease you saw capex in q1 we actually spent but you haven't seen the impact or the benefit of revenue and ebitda When you look at Saskatchewan, again, that's operating lease. when you look at saskatchewan again that's operating lease You're seeing the burden of CapEx hit our financials. you're seeing the burden of capex hit our financials Revenue will be service revenue over time, and EBITDA will be captured over time as well. revenue will be service revenue over time and ebitda will be captured over time as well We do expect the majority of our Bell AI Fabric contracts signed going forward to have operating lease treatment. we do expect the majority of our bell ai fabric contracts signed going forward to have operating lease treatment

Speaker 7: Okay, got it. Then the contribution of the, you know, to the growth from fiber or Ateco or are you just saying it was all from Fabric? Okay, got it. okay got it Then the contribution of the, you know, to the growth from fiber or Ateco or are you just saying it was all from Fabric? then the contribution of the you know to the growth from fiber or ateco or are you just saying it was all from fabric

Speaker 3: No. If you strip away AI Fabric from AI power solutions. Ateco and Bell Cyber collectively are both growing and collectively north of 30% year-over-year growth. No. no If you strip away AI Fabric from AI power solutions. if you strip away ai fabric from ai power solutions Ateco and Bell Cyber collectively are both growing and collectively north of 30% year-over-year growth. ateco and bell cyber collectively are both growing and collectively north of 30% year-over-year growth

Speaker 7: Okay, thanks. Okay, thanks. okay thanks

Speaker 2: Well, I think that that was our last question, just given timing here. Thank you all again for your participation on the call this morning. Richard and I will be available throughout the day for follow-up questions or clarifications. Thank you to all and have a great day. Well, I think that that was our last question, just given timing here. well i think that that was our last question just given timing here Thank you all again for your participation on the call this morning. thank you all again for your participation on the call this morning Richard and I will be available throughout the day for follow-up questions or clarifications. richard and i will be available throughout the day for follow-up questions or clarifications Thank you to all and have a great day. thank you to all and have a great day

Speaker 8: Thanks, everyone. Thanks, everyone. thanks everyone Thanks. Thanks. thanks

Speaker 9: Thank you. The conference has now ended. Please disconnect your lines at this time, and we thank you for your participation. Thank you. thank you The conference has now ended. the conference has now ended Please disconnect your lines at this time, and we thank you for your participation. please disconnect your lines at this time and we thank you for your participation