We offer a full range of data services to business customers, including Internet access, Internet protocol (IP) based services, VAS and equipment sales. While we still offer legacy data services such as frame relay and asynchronous transfer mode (ATM), we began the process of discontinuing legacy data services by announ- cing in 2004 that we would not sell several of these services to customers who do not use them currently. We are Canada’s largest digital television provider, broadcasting nationally more than 400 video and CD- quality audio channels, including up to 25 high defini- tion channels and unique interactive television services. At the end of 2004, we provided video services to more than 1.5 million customers. We currently distribute our video services to customers in one of two ways: • direct-to-home (DTH) satellite: we have been offer- ing DTH video services nationally since 1997. We use three satellites, Nimiq 1, Nimiq 2, and Nimiq 3. We added Nimiq 3 in 2004 to improve signal strength and reliability while increasing capacity. • very high bit rate DSL (VDSL): in 2003, we began expanding our reach to the Toronto multiple-dwelling unit (MDU) market through the use of VDSL. The MDU market represents approximately 40% of all households in Toronto. In 2004, we increased our penetration of the Toronto MDU market and also began deploying VDSL in the MDU markets in Montréal and Ottawa. In the future, we plan to provide an IPTV service (video over Internet protocol) terrestrially to urban households in the Québec City to Windsor corridor. In 2004, we received CRTC approval of our broadcast licence application to deliver video services terrestri- ally to single family units (SFUs). We plan to conduct trials of our IPTV service in 2005. Signal piracy is a major issue facing the Canadian broadcasting industry. In order to combat DTH signal piracy, in 2004 we began the deployment of a new conditional access system. All new customers are now supplied with the new system, and the replacement  of old smart cards is expected to be completed in the  second half of 2005. During the transition to the new system, we are continuing our electronic counter- measure program, which transmits electronic signals that disable set top boxes that use illegal cards to  steal programming. In 2004, we embarked on our strategy to deliver unrivalled integrated communications to customers across Canada with the overall objective of taking a leadership position in setting the standard in IP for the industry and for our customers. Leveraging the The telecommunications industry continues to evolve rapidly as the industry moves from multiple service- specific networks to IP-based integrated communica- tions networks where text, video, sound and voice all travel on a single network. While IP-based communi- cations is creating a new competitive landscape with reduced barriers to entry, it also unleashes new growth opportunities and the ability to achieve significant cost savings.  In treating business dispositions as discontinued operations, we restated the financial results of all pre- vious years to exclude the results of these businesses. They are presented separately in the consolidated financial statements and are discussed separately in this MD&A. All of these business dispositions were treated as  discontinued operations. In the past two years, we have disposed of or approved formal plans for disposing of a number of our busi- nesses. These include: • Aliant’s emerging business segment. Its assets were sold in 2003. • Aliant’s remote communications segment, which consisted mainly of Aliant’s investment in Stratos Global Corporation (Stratos). Stratos was sold in December 2003. • Emergis Inc.’s (Emergis) US Health operations, which were sold in March 2004 • Emergis, which was sold in May 2004. This category includes revenues from a number of other sources, including: • renting, selling and maintaining business terminal equipment • wireless handset and video set top box sales • network installation for third parties • IT services provided by Aliant. Our Strategic Priorities Video Services Discontinued Operations Terminal Sales and Other Bell Canada Enterprises  2004 Annual Report 37