Management’s Discussion and Analysis subscriptions in the fourth quarter of 2004 increased 118% over the previous quarter. Business Wireline Local and access revenues declined slightly in 2004, compared to 2003, mainly due to lower NAS and related SmartTouch feature revenues, partly offset by higher revenues from wireline insurance and mainte- nance plans. Long distance revenues declined in 2004, compared to 2003, mainly as a result of volume declines in domes- tic, overseas and US minutes, reflecting competition from non-traditional long distance providers, partially offset by strong sales of prepaid cards. The reduction in higher priced overseas minutes and the impact of the $5 Long Distance Bundle also led to a lower aver- age wireline revenue per minute in 2004. Consumer operating income increased 5.0% or $100 mil- lion to $2,119 million in 2004, compared to 2003. The improvement related mainly to the increase in revenues, lower COA in wireless, and productivity savings. These were partly offset by increased operating expenses related to salaries, cost of goods sold and higher net benefit plans cost. In addition, higher costs were driven by an increase in the number of contact centre agents to support the increased customer handling time associated with  the Bell bundle and increased call volumes resulting from the implementation of the new billing platform at Bell Mobility. For 2005, we expect the Consumer segment to  continue to grow its revenue, driven by the strength of our wireless, Internet access and video businesses. However, erosion is expected to continue in our local and access and in long distance services, driven by increasing competition as cable companies enter the market with VoIP telephony services. Business segment revenues grew slightly by $24 mil- lion to $5,851 million in 2004, compared to 2003. The increase was the result of revenue growth in the SMB business, which was largely offset by revenue declines in our Enterprise and Bell West businesses. On November 19, 2004, we completed the acquisition of the Canadian operations of 360networks. The Business segment includes the financial results of the retail  portion of this acquisition from that date. From a product line perspective, increases in wire- less and terminal sales and other revenues were partly offset by declines in local and access, long distance and data revenues. Business segment operating income grew 14.7% or $115 million to $896 million in 2004, compared to 2003. This demonstrates that our strategy of driving the shift to IP along with improved profitability achieved through ongoing productivity has traction and is delivering. In 2005, we expect Business segment revenues will grow, driven by organic growth in IP-based connec- tivity service and VAS revenues, as well as the full-year impact of the business acquisitions made in 2004. However, declines from our legacy services and from the completion of the SuperNet contract with the Government of Alberta in 2004 will partly offset this expected growth in revenues. 03 04 0 2,119 2,019 28.0% 28.2% Operating income Operating income margin CONSUMER OPERATING INCOME 03 04 896 781 0 13.4% 15.3% Operating income Operating income margin BUSINESS OPERATING INCOME 52 Bell Canada Enterprises  2004 Annual Report 03 04 0 5,851 5,827 BUSINESS REVENUES