customers in Ontario and Québec, as well as business customers in Western Canada. 

In 2004, Bell Canada acquired several small special- ized service companies, allowing us to quickly enhance our value-added services (VAS) product suite for both SMB and Enterprise customers. 

In the third quarter, we enhanced our competitive position in Western Canada by acquiring 100% own- ership of Bell West Inc. (Bell West), our competitive local exchange carrier (CLEC) in Alberta and British Columbia, by completing the purchase of Manitoba Telecom Services Inc.’s (MTS) interest in Bell West. 

In the fourth quarter of 2004, we further enhanced our competitive position in Western Canada by com- pleting the acquisition of the Canadian operations of 360networks Corporation (360networks) as well as certain U.S. network assets. This acquisition increases our customer base and gives us an extensive fibre network across major cities in Western Canada. 

## Aliant Segment 

The Aliant segment provides local telephone, long distance, wireless, data (including Internet access) and other services to residential and business customers in Atlantic Canada, and represents the operations of our subsidiary, Aliant Inc. (Aliant). 

At December 31, 2004, Bell Canada owned 53% of Aliant. The remaining 47% was publicly held. 

## Other Bell Canada Segment 

The Other Bell Canada segment includes Bell Canada’s Wholesale business and the financial results of Télébec Limited Partnership (Télébec), NorthernTel Limited Partnership (NorthernTel) and Northwestel Inc. (Northwestel). Our Wholesale business provides local telephone, long distance, wireless, data and other serv- ices to competitors who resell these services. Télébec, NorthernTel and Northwestel provide telecommu- nications services to less populated areas of Québec, Ontario and Canada’s northern territories. 

Following the purchase of 360networks, Bell Canada sold 360networks’ retail customer operations in Central and Eastern Canada to Call-Net Enterprises Inc. (Call- Net). As part of the sale, Bell Canada will provide to Call-Net, for a share of the revenues, network facilities and other operations and support services. 

At December 31, 2004, Bell Canada owned 100% of Northwestel and 63% of Télébec and NorthernTel. The Bell Nordiq Income Fund owned the remaining 37%. 

## Other BCE Segment 

The Other BCE segment includes the financial results of our media, satellite and information technology (IT) businesses as well as the costs incurred by our corpo- rate office. This segment includes Bell Globemedia Inc. (Bell Globemedia), Telesat Canada (Telesat) and CGI Group Inc. (CGI). 

Bell Globemedia provides information and enter- tainment services to Canadian customers and access to distinctive Canadian content. It includes CTV Inc. (CTV), Canada’s leading private broadcaster, and The Globe and Mail , Canada’s leading national newspaper. BCE Inc. owns 68.5% of Bell Globemedia. The Woodbridge Company Limited and affiliates own the remaining 31.5%. 

Telesat is a pioneer in satellite communications and systems management and is an experienced consultant in establishing, operating and upgrading satellite sys- tems worldwide. BCE Inc. owns 100% of Telesat. 

CGI is one of Canada’s largest IT services compa- nies. It provides a full range of IT services and business solutions including outsourcing, systems development and integration and consulting. CGI is publicly traded. BCE Inc. owns 29% of CGI. 

## Bell Canada Products and Services 

Bell Canada is our primary focus and the largest compo- nent of our business. It has six major lines of business: 

• local and access services 

• long distance services 

• wireless services 

• data services 

• video services 

• terminal sales and other. 

## Local and Access Services 

Bell Canada operates an extensive local access network that provides local telephone services to business and residential customers. The 12.9 million local telephone lines, or network access services (NAS), we provide for our customers are key in establishing customer relation- ships and are the foundation for the other products and services we offer. 

