MONTREAL -- Bell Canada today announced the purchase of the residential assets of Cable VDN, a Montreal-based cable company selling analog and digital television (under the brand MAXTV) and high-speed Internet services for $26 million. The acquisition enhances Bell's capability to deliver a "quadruple play" (television, high-speed Internet, wireless and long distance) more quickly in the Montreal market.

"Our ability to efficiently deliver a competitive quadruple play is a key differentiator," said Pierre Blouin, President Consumer Group, Bell Canada. "This acquisition provides Bell with substantial and immediate potential in Montreal, Canada's second largest urban market."

The acquisition allows Bell to quickly establish a foothold in the Montreal multi-dwelling unit (MDU) market using Cable VDN's terrestrial network facilities. It also provides a more cost effective way for Bell to address Montreal's smaller and harder to reach MDUs. Cable VDN's local expertise will enhance Bell's ability to further penetrate the Montreal MDU market and will allow Bell's VDSL team to be more focused on the Toronto market which has a higher number of large MDUs.

Cable VDN currently has approximately 13,000 television and 3,000 high-speed Internet subscribers representing a 40% penetration rate within its footprint. Its core network covers most of the island of Montreal. Only last mile connections are needed to connect new buildings. At an estimated 400,000 units, Montreal's MDU market presents a significant opportunity for Bell.

"The purchase is consistent with Bell's plan to maximize the distribution and efficient delivery of video services to Canadian consumers," concluded Mr. Blouin.

BCE Inc.