There is no assurance that we will be successful in developing, implementing and marketing new tech- nologies, products, services or enhancements in a rea- sonable time, or that they will have a market. There is also no assurance that efficiencies will increase as expected. New products or services that use new or evolving technologies could make our existing ones unmarketable or cause their prices to fall. Our plan in  2005 is to generate enough cash from our operating activities to pay for capital expenditures and dividends. We expect to pay contractual obliga- tions maturing in 2005 from cash on hand, from cash generated from our operations or by issuing debt. If actual results are different from our business plan or if the assumptions in our business plan change, we may have to raise more funds than expected by issuing debt or equity, borrowing from banks or selling or other- wise disposing of assets. If we cannot raise the capital we need upon accept- able terms, we may have to: In general, we finance our capital needs in four ways: • limit our ongoing capital expenditures • limit our investment in new businesses • try to raise additional capital by selling or otherwise disposing of assets. • from cash generated by our operations or investments • by borrowing from commercial banks • through debt and equity offerings in the capital markets • by selling or otherwise disposing of assets. Any of these possibilities could have a material and negative effect on our cash flow from operations and growth prospects. Financing through equity offerings would dilute the holdings of existing equity investors. An increased level of debt financing could lower our credit ratings, increase our borrowing costs and give us less flexibil- ity to take advantage of business opportunities. Our growth strategy includes making strategic acqui- sitions and entering into joint ventures. There is no assurance that we will find suitable companies to acquire or to partner with, or that we will have the financial resources needed to complete any acquisition or to enter into any joint venture. There could also be difficulties in integrating the operations of acquired companies with our existing operations or in operat- ing joint ventures. Our ability to raise financing depends on our ability to access the capital markets and the syndicated com- mercial loan market. The cost of funding depends largely on market conditions, and the outlook for  our business and credit ratings at the time capital is raised. If our credit ratings are downgraded, our cost of funding could significantly increase. In addition, participants in the capital and syndicated commercial loan markets have internal policies limiting their abil- ity to invest in, or extend credit to, any single borrower or group of borrowers or to a particular industry. BCE Inc. and some of its subsidiaries have entered into renewable credit facilities with various financial institutions. They include facilities serving as backup facilities for issuing commercial paper. There is no assurance that these facilities will be renewed on favourable terms. Pending or future litigation, regulatory initiatives or regulatory proceedings could have a material and  negative effect on our businesses, operating results and financial condition. Changes in laws or regulations  or in how they are interpreted, and the adoption of new laws or regulations (including changes in, or the adoption of, new tax laws that result in higher tax rates or new taxes) could also materially and nega- tively affect us. We need significant amounts of cash to implement our business plan. This includes cash for capital expenditures to provide our services, dividend pay- ments and payment of our contractual obligations, including repayment of our outstanding debt. Please also see Risks that Could Affect Certain BCE Group Companies – Bell Canada Companies – Changes to Wireline Regulation in  this MD&A for a description of certain regulatory  initiatives and proceedings that could affect the Bell Canada companies. • certain regulatory  initiatives and proceedings affecting the Bell Canada companies. • the principal legal  proceedings involving BCE Litigation, Regulatory Matters and Changes in Laws Please see the BCE 2004 AIF for a detailed description of: Our cash requirements may be affected by the risks  associated with our contin- gencies, off-balance sheet arrangements, derivative instruments and assumptions built in our business plan. Our ability to generate cash and to maintain capacity  to meet our financial obli- gations and provide for planned growth depends on our sources of liquidity.  Liquidity Making Acquisitions Litigation, Regulatory Matters and Changes in Laws Bell Canada Enterprises  2004 Annual Report 69 Liquidity