Management’s Discussion and Analysis Local telephone service is the main source of local and access revenues. Other sources of local and access revenues include: Rates for local telephone and value-added services in our incumbent territories are regulated by the Canadian Radio-television and Telecommunications Commis- sion (CRTC). The local telephone services market became more competitive in 2004 when several companies launched voice over Internet protocol (VoIP) services. In 2004, we launched our own VoIP service for Enterprise cus- tomers and are currently conducting trials of a version for residential customers. Several major cable compa- nies recently entered, or announced their intention to enter, the local telephone services market in 2005 with VoIP offerings of their own. choose to pay for their cellular and PCS services through a monthly rate plan (postpaid) or in advance (prepaid). At the end of 2004, we had more than 5.3 million  cellular, PCS and paging customers. The wireless division of each of our incumbent  telephone companies provides wireless communications in its home territory, except for Bell Mobility Inc. (Bell Mobility), which provides these services in its home territory, as well as Alberta and British Columbia. Our wireless network provides voice services and data services at typical transmission speeds of approxi- mately 120 Kbps. At the end of 2004, our wireless network covered: In December 2004, we announced we were in trials for Canada’s first Evolution, Data Optimized (EVDO) net- work, which will provide wireless broadband speeds up to six times faster than data speeds available today. We expect to deploy EVDO in major urban centres across Canada in 2005 and 2006. We also announced a joint venture with the Virgin Group to offer wireless services to the key youth market under the dynamic Virgin brand. We supply long distance voice services to business  and residential customers. We also receive settlement payments from other carriers for completing their  customers’ long distance calls in our territory. Prices for long distance services have been declining since this market was opened to competition. In 2004, the long distance services market became more com- petitive with the emergence of non-traditional suppliers (i.e., prepaid card, dial-around and VoIP providers). High-speed Internet access service provided through digital subscriber line (DSL) technology for residential and SMB customers is a growth area for Bell Canada. At the end of 2004, we had over 1.8 million high- speed Internet customers. We expanded our DSL footprint in Ontario and Québec to 83% of homes and business lines passed at the end of 2004, compared to 80% at the end of 2003. This was partly due to the deployment of new high- speed remotes that began in April 2004. In Atlantic Canada, DSL was available to 72% of homes and 79% of businesses at the end of 2004, compared to 65% and 75%, respectively, at the end of 2003. During 2004, we upgraded our Sympatico DSL services by increasing our High Speed Edition to up to 3 Mbps from 1.5 Mbps and our Ultra service from  3 Mbps to up to 4 Mbps. We offer a full range of wireless communications serv- ices to business and residential customers, including  cellular, personal communications services (PCS) and paging. PCS customers can get wireless access to the Internet through our Mobile Browser service or send text messages. We also provide value-added services, such as call display and voicemail, and roaming services with other wireless service providers. Customers can Data Services Long Distance Services Wireless Services 36 Bell Canada Enterprises  2004 Annual Report • value-added services, such as call display, call wait- ing and voicemail • services provided to competitors accessing our local network • connections to and from our local telephone service customers for competing long distance companies • subsidies from the National Contribution Fund to support local service in high-cost areas. • 95% of the population in Ontario and Québec, which is equivalent to our analogue coverage in this region • 88% of the population in Atlantic Canada • Calgary, Edmonton and Vancouver in Western Canada.