Across this network will flow voice, video, music, business  data, interactive gaming, the Internet and anything else that  can be put into digital form. This is an area where we must  lead. And we will. 3 . Next Generation Services  A cultural transformation  To reach these ambitious goals, we will draw fully on the  great talents of all of our people. My meeting in February  These services, and many others like them, are the long- term growth story for the company. We are moving  aggressively to bring new technologies and new services  to market—in ways that our customers can use and will  value. Technology is not an end in itself. It is a means to  build a high-value relationship with each and every customer. A case in point: our IPTV partnership with Microsoft  announced last year. Building on our Sympatico-MSN  relationship, we are now working with Microsoft to begin  trials of television over existing copper-wire telephone  connections—in 2005. Our growth will come from new products delivered over  our new  IP network. In 2004, fully 40 per cent of our revenue  was generated by such “growth services.” In just two years,  we expect this to increase to 55 per cent. An example: in 2004, we introduced virtually unlimited  long distance for $5 to promote our consumer product bundle.  It was a signal that we are prepared to lever our existing  legacy business to attract new customers and drive new  value-added growth. The same new technology that represents such a promising  future for Bell also hastens the decline of our legacy telephone  business. Rather than resist this decline, we are embracing it. Providing our customers with the information, entertainment, connec- tion and productivity that are the true purpose of our network. with employees was just one of many. In thousands of  conversations I have had with people at Bell, one thing is  clear: all of us want and expect to deliver what our customers  need and want—great experiences, reliable bandwidth,  next generation services.  We know that, too often, the very processes, procedures,  and systems we have put in place in the past to run our  business stand in the way. So now our challenge—perhaps  the toughest and most important one we face—is to get  out of the way of our people so they can do what they know  they need to do. What they want to do. That means changing our culture—not just  what  we do,  but  how  we do it. How we work, how we do business.  Today, we are still too hierarchical. We tie up good ideas  with red tape. But every day we are working to get in step with the future.  We are doing what it takes to instill a culture of confi dence:  an environment that promotes accountability, personal  initiative and merit. A place that cultivates the creativity  and the leadership of our people. We have a clear long-term strategy. Our business results  tell us it’s the right direction. But perhaps what matters most is what I heard from the  employees I met with that February morning. In their words,  in their stories, and in their dedication, I see the clearest  path to building a company that inspires our people and that  offers our shareholders a future of increasing returns. 7 Michael J. Sabia President and Chief Executive Officer Where we are headed  Some observers think this approach is too aggressive.  Some would like us to play defence. We disagree. We think  being bold is the best defence.