Renegotiating collective agreements could result in higher labour costs and work disruptions, including work stoppages or work slowdowns. Difficulties in rene- gotiations or other labour unrest could significantly hurt our businesses, operating results and financial condition. Bell Canada has established a program to implement a number of measures to help minimize disruptions and seek to ensure that customers continue to receive normal service during labour disruptions. There can be no assurance that a strike, if one occurs, would not disrupt service to Bell Canada’s customers. In addition, work disruptions at our service providers, including work slowdowns and work stoppages due to strikes, could significantly hurt our business, including our customer relationships and results of operations. adverse consequences including billing errors and delays in customer service. Any of these events could significantly hurt our customer relationships and busi- nesses and have a material and adverse effect on our results of operations. BCE Inc.’s cash flow and its ability to service its debt and to pay dividends on its shares all depend on divi- dends or other distributions it receives from its sub- sidiaries, joint ventures and significantly influenced companies and, in particular, from Bell Canada. BCE Inc.’s subsidiaries, joint ventures and significantly influenced companies are separate legal entities. They are not required to pay dividends or make any other distributions to BCE Inc. Network failures could materially hurt our business, including our customer relationships and operating results. Our operations depend on how well we protect our networks, equipment, applications and the infor- mation stored in our data centres against damage from fire, natural disaster, power loss, hacking, computer viruses, disabling devices, acts of war or terrorism and other events. Our operations also depend on the timely replacement and maintenance of our networks and equipment. Any of these events could cause our opera- tions to be shut down indefinitely. Our networks are connected with the networks of other telecommunications carriers, and we rely on them to deliver some of our services. Any of the events mentioned in the previous paragraph, as well as strikes or other work disruptions, bankruptcies, technical difficulties or other events affecting the networks of these other carriers, could also hurt our business, includ- ing our customer relationships and operating results. Many aspects of the BCE group companies’ businesses including, but not limited to, the provision of tele- communication services and customer billing, depend to a large extent on various IT systems and software, which must be improved and upgraded on a regular basis and replaced from time to time. The implemen- tation of system and software upgrades and conver- sions is a very complex process, which may have several In 2001, we entered into a contract with the Govern- ment of Alberta to build a next-generation network to bring high-speed Internet and broadband capabilities to rural communities in Alberta. Mechanical con- struction of the network was completed in December 2004. We identified cost overruns on the construc- tion contract and recorded an additional provision of  $128 million in 2004. Acceptance of the network  by the Government of Alberta was initially due by January 24, 2005. Based on discussions with the Differences between BCE Inc.’s actual or anticipated financial results and the published expectations of financial analysts may also contribute to volatility in BCE Inc.’s common shares. A major decline in the cap- ital markets in general, or an adjustment in the market price or trading volumes of BCE Inc.’s common shares or other securities, may materially and negatively affect our ability to raise capital, issue debt, retain employees, make strategic acquisitions or enter into joint ventures. Events Affecting Our Networks Software and System Upgrades Risks that Could Affect Certain BCE Group Companies Bell Canada Companies Stock Market Volatility Risks that Could Affect BCE Inc. Holding Company Structure Holding Company Structure Stock Market Volatility BCE Inc. is a holding com- pany. That means it does  not carry on any significant operations and has no major sources of income or assets  of its own, other than  the interests it has in its  subsidiaries, joint ventures and significantly influenced companies.  The stock markets have experienced significant volatility over the past few years, which has affected the market price and trading volumes of the shares of many telecommunications companies, in particular.  Contract with the Government of Alberta Bell Canada Enterprises  2004 Annual Report 71