Bell to launch Internet TV, improve broadband

Bell to launch Internet TV, improve broadband


Monday, 08 February 2010 11:29



Inc., Canada’s biggest communications company, said it’s stepping up
investment to support its high-speed networks and will launch a new
Internet television service as it seeks to boost profit and revenue in
2010.
The company, owner of Bell Canada and Virgin
Mobile, on Thursday posted a profit in the fourth quarter of $350
million, compared with a net loss of $48 million the year earlier.


Bell’s revenue in the quarter gained 4.8% to $3.9
billion, helped by the acquisition of retail chain The Source and the
50% of Virgin Mobile it didn’t already own as well as growth in
television and wireless revenues, BCE said.
Operating profit rose 10% to $572 million in the fourth quarter.
Bell,
together with Telus, launched a new high-speed HPSA wireless network in
November to better compete with rival Rogers and help it meet the
challenge from new entrants to the market expected this year. The
network rollout helped boost activations in the fourth quarter to
523,000 for Bell wireless, its best ever.
BCE said Bell added 41,000 net new television subscribers, the highest number in four years.
"Our
strategic commitment to invest in broadband networks and services
continues, with both our new HSPA network introduction on the wireless
side and the significant investments in new fibre rollouts announced
today that we are undertaking to support high-speed Bell Internet and
Bell TV," George Cope, BCE and Bell president and chief executive, said
in a statement.
Bell plans to launch Internet
Protocol television in Toronto and Montreal later in 2010. The service,
Bell IPTV, will be powered by the Microsoft multimedia software
platform and is undergoing consumer trials.
IPTV will offer a wide range of advanced television and entertainment services, the company said without giving further details.
The
company also said it’s taking steps to improve its broadband services,
with the deployment of fibre-to-the-home in Quebec City and new housing
developments in Ontario and Quebec.
The Bell Fibe
Internet service, which is available in Toronto and Montreal, will
provide customers access to increased uploads speeds as high as 7
Megabits per second. The company gave no investment figures for the
rollout of the network upgrades or Internet television.
BCE
is counting on the launch of its HSPA network and other initiatives in
2009 to help boost growth at its wireless division this year.
“The
2010 financial guidance announced today reflects a well-balanced
financial plan that will generate substantial free cash flow in excess
of $2 billion and earnings growth of 6% to 10% to support the execution
of our business plan and capital markets strategy dedicated to
delivering ongoing returns to BCE shareholders," Cope said.
Bell
is targeting revenue growth of 1% to 2% in 2010, with earnings before
interest, tax, depreciation and amortization of between 2% to 4%.
BCE is targeting adjusted earnings per share of $2.65 to $2.75.