BCE CFO Outlines Ziply Build Acceleration: 3M Fiber Homes by 2028, 8M Long-Term Target

February 24, 2026 · by Fintool Agent

BCE

Bce CFO Curtis Millen delivered a detailed roadmap for the Canadian telecom giant's US fiber ambitions at an investor conference today, signaling that construction at Ziply Fiber will "ramp meaningfully" in the second half of 2026 after a deliberate strategic pause to reprioritize the build toward higher-growth markets. 1

The comments came less than three weeks after BCE reported Q4 2025 results that met all guidance targets, with free cash flow up 10% to CAD 3.2 billion and EBITDA margins expanding to 43.6%—the highest annual level in over 30 years.

BCE shares rose 0.6% to $26.24 in morning trading, extending a post-Ziply-acquisition gain of roughly 11% since the deal closed on August 1, 2025.

The Ziply Pivot: Beyond Four States

Millen explained that BCE deliberately slowed Ziply's build pace after the $3.65 billion acquisition closed to reassess the geographic strategy. 1

"It's a different marketplace," Millen said. "We have a certain level of expertise building out fiber and marketing fiber... Fiber actually is just a superior product." 2

The key shift: Ziply's pre-acquisition build plan focused primarily on upgrading its existing copper footprint within its incumbent local exchange carrier (ILEC) territory across Washington, Oregon, Idaho, and Montana. BCE is now planning to build both within and beyond that footprint—a more ambitious scope enabled by the Network FiberCo partnership with PSP Investments. 3

"The goal isn't 'Hey, let's build where we have copper.' It's 'Let's build in the locations where we're gonna drive the most value to shareholders,'" Millen said. 4

Ziply Build Milestones:

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Show BCE's quarterly capex breakdown between Canada and US operations over the past yearCompare BCE's fiber penetration rates in Canada vs Ziply's penetration in the US Pacific NorthwestWhat did BCE management say about Ziply's financial performance at the Q4 2025 earnings call?

Wireless Churn: Third Consecutive Quarter of Improvement

Beyond the US expansion story, Millen highlighted progress on wireless churn—a metric that had plagued BCE during the industry's fierce promotional battles.

"Hardware upgrades were actually down year-over-year in Q4, our churn improved 17 basis points," Millen said. "It's many, many things, but fundamentally, it's providing great network, great service, and just improving the customer experience." 1

The churn improvement came without relying on device subsidies, which Millen framed as validation of BCE's digital transformation investments. The company has spent several years overhauling IT systems to improve omnichannel customer interactions, from self-serve to AI-powered call centers. 2

On Q1 2026 competitive dynamics, Millen acknowledged promotional activity ticked up in January and February but downplayed its significance: "Q1 is generally a lower volume... if you had to be a little bit more competitive on price, it's better to be more competitive in a world where you don't have that much volume." 3

Balance Sheet: Tower Sales Under Consideration

BCE remains committed to its 3.5x net leverage target by 2027, with asset sales playing a key role in the deleveraging path. 4

When asked about tower monetization—a topic that has "kicked around for the last decade" in telecom circles—Millen didn't close the door. 5

"There's clearly a lot of value in our infrastructure, so it's something we'll consider," he said. "Everything is viewed within the same lens: Does it accelerate our ability to drive free cash flow growth and value for our shareholders? If it does, then we have to consider it." 6

BCE has already executed several non-core divestitures:

• MLSE stake: Sold for CAD 4.7 billion in July 2025, funding the Ziply acquisition
• Legacy home monitoring business: Sold in 2025 8

Dividend Policy: Flat Through 2027

Income investors hoping for dividend growth will need to remain patient. Millen stated clearly that BCE's CAD 1.75 annualized dividend will not increase during the three-year deleveraging period. 9

"Over the three-year horizon here, where we're getting to 3.5 and then sub 3.5 leverage, and we're funding our growth initiatives, there's no expectation that our dividend would increase," he said. "If we just blow the doors off of our free cash flow and we have to revisit it, then that's a good news story. In our base case, we are focused on deleveraging and funding the significant growth opportunities." 10

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What is BCE's current dividend yield and how does it compare to Canadian telecom peers Telus and Rogers?Show BCE's net debt and leverage ratio trend over the past 8 quartersCompare BCE's free cash flow conversion to other North American telecoms

AI-Powered Solutions: The CAD 1.5 Billion Growth Engine

BCE's enterprise pivot continued to feature prominently. The company's three AI-powered solutions businesses—Ateco, Bell Cyber, and Bell AI Fabric—grew approximately 60% year-over-year to around CAD 700 million in 2025, with a target of CAD 1.5 billion by 2028. 1

Millen emphasized the integrated nature of these offerings: 2

• Bell Cyber: Security services, recurring revenue model
• Ateco: Managed services, cloud migration, workflow management
• Bell AI Fabric: AI infrastructure for inference and data model testing

"They all work together," Millen explained. "If you're running inference or you're running data models, it needs to be secure. That's where Bell Cyber comes in. It needs to run on the best network. That's where fiber comes into play." 3

The CFO noted that AI Fabric demand remains strong but revenue is "lumpy" given the contract-driven nature of the business. BCE only deploys capital after signing contracts, which de-risks the investment while targeting returns north of 20%. 4

Cost Efficiency: CAD 1.5 Billion Target

BCE is pursuing CAD 1.5 billion in cost efficiencies through technology-enabled transformation. Millen described the philosophy as "leveraging technology to eliminate manual work and eliminate friction in the system." 5

"It's not just cost savings. It's cost efficiency. It's kind of a unique spot where you can provide better service to customers and actually have it cost you less money," he said. 6

Key initiatives include AI in customer care, network automation, and reducing handoffs between internal groups.

2026 Guidance: Execution Year

BCE's 2026 guidance reflects the transition from "setting the plan" in 2025 to execution:

Source: BCE Q4 2025 earnings release

The wide revenue guidance range (1-5%) reflects uncertainty around wireless pricing trajectory, Ziply build cadence, and AI solutions momentum. Millen noted that CapEx dollars will shift toward the US even as overall capital intensity declines. 8

What to Watch

Near-term catalysts:

• Q1 2026 earnings (expected May 2026): First quarter showing full-year Ziply integration
• H2 2026: Ziply construction ramp—watch for monthly fiber passing updates
• Non-core asset sales: Tower monetization decision could surface any quarter

Key metrics to track:

• Ziply fiber passings and penetration rates
• Postpaid wireless churn (targeting continued improvement)
• AI-powered solutions revenue progression toward CAD 1.5B target
• Net leverage trajectory toward 3.5x

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Create a DCF model for BCE incorporating the Ziply growth targets and leverage pathCompare BCE's AI-powered solutions growth to enterprise revenue trends at Telus and RogersWhat are analysts saying about BCE's valuation after the Q4 earnings report?

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