Bell Canada and Cisco Systems Canada Team up to Bring Integrated IP Network Services to Canadian Businesses

TORONTO, ONTARIO - January 19, 2004 - Bell Canada and Cisco Systems Canada today announced that they will team up to accelerate the creation, commercialization and delivery of a comprehensive suite of IP services that will enable large and medium-sized business customers to reap the full benefits of an integrated data, voice and video IP-based network. The strategic alliance is a key component of Bell's strategy to become a world-leading Internet Protocol (IP) based communications company.

As a result of this alliance, Bell will build on its network capability and align its investments towards a single IP/MPLS service delivery network with a national footprint. This next-generation IP network will provide the foundation for the delivery of an integrated suite of IP data, voice and video services to business customers via converged network architectures.

Bell and Cisco intend, under this alliance, to work together across a number of initiatives, including:

• Significantly expanding Bell Canada's national footprint on a Cisco-based IP/MPLS core network infrastructure that will become the primary service delivery platform for integrated data, voice and video business applications.
• Jointly creating and commercializing to new and existing business customers an integrated suite of simplified managed network services and value-added solutions, including virtual private networking (VPN), IP telephony, security and wireless LAN.
• Launching a program to help large and medium-sized business customers to consolidate and migrate their existing communications networks (including ATM and Frame Relay) onto Bell's Cisco-based IP/MPLS network.

"This agreement is one of the major steps in our transformation into Canada's leading IP company", said Michael Sabia, Chief Executive Officer of Bell Canada. "As we are moving rapidly to set the standard in the IP world, we will provide our customers with the simplicity, power and efficiency of a more scalable, manageable and secure networking communications environment."

"There is widespread recognition among world-class service providers that IP-based networks are the best - and arguably the only - way to achieve the operating efficiencies and service flexibility needed to compete in today's marketplace," said John Chambers, President and CEO of Cisco Systems. "With this alliance, Bell and Cisco are leading the way in the delivery of value-added IP-based solutions to Canadian businesses."

Based on this strategic business understanding, Bell Canada expects to make a significant investment in Cisco core infrastructure technology equipment and related services over the next three years. Cisco is supporting these investments with significant financial, marketing, and sales support programs to drive and accelerate the successful transformation, migration and commercialization of IP-based and IP-related services at Bell Canada.

IP simplifies business communications

Bell's IP-based network infrastructure will provide businesses with a scalable, secure foundation to run productivity enhancing applications. Bell Canada intends to dramatically expand its national IP core network infrastructure in order to provide the platform for new converged communications services that will allow large and medium-sized business customers to develop new compelling business data, video, voice, wireless and security solutions.

"This strategic relationship is a significant move towards building out the infrastructure for our Enterprise customers, many of whom are national companies that will quickly benefit from the integration of devices and applications, simpler provisioning and management of telecommunications infrastructure, greater self service capabilities and multimedia Internet IP-based communications", said Isabelle Courville, President - Enterprise Group, Bell Canada.

"We are at the stage in the evolution of IP networks in Canada where it is now possible to seamlessly deliver a simplified suite of managed IP services to Canadian businesses", said Terry Walsh, President of Cisco Systems Canada. "By combining our respective strengths, Bell and Cisco can help our customers drive their productivity and competitive advantage through IP communications."

In entering into this alliance, Bell and Cisco will continue to have discussions towards definitive agreements in furtherance of their business relationship. It is intended that the initiatives to be implemented under the alliance mandate will be addressed by the end of 2006.

About Bell Canada

Bell Canada, Canada's national leader in communications, provides connectivity to residential and business customers through wired and wireless voice and data communications, local and long distance phone services, high speed and wireless Internet access, IP-broadband services, e-business solutions and satellite television services. Bell Canada is wholly owned by BCE Inc. (NYSE/TSX: BCE). For more information please visit www.bell.ca.