BCE are to create a $70 million fund to accelerate the development of convergence products and services across the company.

We are moving decisively to execute on our strategy of empowering our connectivity with content and commerce, said BCE President Michael Sabia, who

will oversee the funding and development of the new initiatives. Our strategy

is to bring the full benefit of convergence to Canadians by combining the

intellectual assets – the ideas and technology – that we have in abundance in

Bell Canada, Bell Globemedia and BCE Emergis. We want to give our customers

the full benefits of convergence by offering more choices, more control and

more tools to manage their ‘connectedness’ to Canada and to the rest of the

world.

The program will fast-track the development of new and currently proposed

initiatives that leverage the content, connectivity and commerce strengths of

the BCE companies, to the benefit of consumers and business customers. The $70

million will lay the foundation to deliver on BCE’s commitment to bring at

least ten convergence services to light in 2001 and will pave the way for

further developments in the following years.

The $70 million innovation program will draw upon the creative ingenuity

of our various development teams, and enable them to more effectively pool

their ideas and resources, said Mr. Sabia. It will bring Canadians an array

of initiatives that will fulfill the promises of convergence and connectedness.

Earlier this year, BCE announced its first convergence initiative, code-

named ComboBox. This new technology will allow Bell ExpressVu and Sympatico High Speed Internet to provide more efficient and easy access to existing services and open up new opportunities for a wide array of interactive services.

The services will be delivered via an Internet gateway connected through

Bell’s high-speed service and an enhanced television set-top box. By

integrating these capabilities, Bell ExpressVu customers will be able to

access the Internet from their television, send and receive e-mails, chat on-

line, use instant messaging, obtain interactive information on the broadcast

programs they are watching, as well as play games, download content and create

customized programming. Similarly, Bell’s high-speed Internet customers will

be able to add interactive digital televisions and home networking

capabilities to their Internet service.

An important feature of this technology will be an embedded digital

storage capability as part of a personal video recorder. Using this,

customers will not only be able to easily record broadcast programs for later

playback, but will be able to use Internet content to create personalized

news, information and entertainment programs.