Management’s Discussion and Analysis In the Other Bell Canada segment, market chal- lenges persisted throughout the year for our Wholesale business. While full year revenues declined, this was in part due to our decision in the fourth quarter of 2003 to exit certain low-margin contracts and promotional offers for international switched minutes. In the last three quarters of the year, the rate of decline stabilized. We will exploit the IP capability to achieve inter- operability between wireless and wireline platforms. For instance, in 2005 we are targeting to bring to market an integrated single-voice mailbox for both cellular and land lines to allow customer access to voicemail messages through a single voicemail system. In the Other BCE segment, Bell Globemedia deliv- ered strong revenue and operating performance com- pared to last year, largely driven by higher television advertising revenue. Higher advertising revenue resulted from CTV’s programming line-up which included the majority of the top 20 programs in each season. The improvement in revenue, combined with cost savings, contributed to significantly higher operating perform- ance compared to 2003. Telesat’s revenues improved in 2004 as an increase in telecommunications revenue more than offset declines in consulting fees. CGI’s rev- enues also increased due to its acquisition of American Management Systems Incorporated (AMS) in May 2004. The results for 2004 demonstrate steady progress on our strategic objectives. We set a solid foundation for future growth, simplification of our customers’ experi- ence and the transformation of our cost structure. Overall, our 2004 revenue growth performance exceeded the rate of growth achieved last year. The decrease in operating income was driven mainly by the restructur- ing and other items mainly related to the employee departure programs announced by Bell Canada and Aliant. Before restructuring and other items, operating income grew compared to last year, despite the nega- tive impact of Aliant’s labour disruption. This growth reflected better operating performance at Bell Canada. In the Consumer segment, we achieved solid rev- enue and operating income growth, while maintain- ing strong levels of customer acquisitions and loyalty. Bundle subscriptions, a key part of our strategy to win the broadband home, significantly exceeded our expec- tations for the year. In the Business segment, we grew our base of IP- based services and VAS within our SMB and Enterprise markets and expanded our presence in Western Canada. Overall, Business revenues grew modestly, despite increased competitive pressures, significant impacts from our exit from the low-margin cabling business, the completion of the Hydro-Québec outsourcing con- tract and lower revenues from Bell West’s contract with the Government of Alberta for the construction of the SuperNet. The improved momentum in our IP- connectivity and VAS business, combined with strong cost containment, led to operating income growth. In the Aliant segment, a new collective labour agree- ment was signed on September 16, 2004. The labour disruption, which started on April 23, 2004 and ended on September 20, 2004, negatively impacted revenues and operating income. Our total cellular and PCS subscriber base grew 11.6% or 513,000 in 2004 to reach 4,925,000 at December 31, 2004. This reflects a similar level of net additions as in 2003. We also improved blended and postpaid churn by 0.1 and 0.2 percentage points, respectively, over 2003. Wireless 40 Bell Canada Enterprises  2004 Annual Report The Year at a Glance The Year at a Glance This section reviews the key measures we use to assess our performance and how our results in 2004 compare to our results in 2003. The total number of customer connections increased 4.2% or 1.1 million to 26.6 million at December 31, 2004, compared to December 31, 2003. Customer Connections 2004 CONNECTIONS AT (in thousands) NET ADDS DECEMBER  31, 2004 NAS (146) 12,905 Digital equivalent access lines 468 4,335 High-speed Internet 350 1,808 Dial-up Internet (126) 743 Cellular and PCS 513 4,925 Paging (97) 427 Video 116 1,503 Total 1,078 26,646