Bell's move into the television business will take a major step forward next year when it start trials of an Internet-based service aimed at single-family households. During an investment conference today in Toronto, the company came across as ultra-confident as it gets ready to go mano-a-mano against the cablecos. At the heart of Bell's TV strategy is a $1.2-billion investment over the next four years to upgrade it high-speed Internet network in Ontario and Quebec. This will boost the network's speed to 26Mbps. When asked if this is a big enough pipe, BCE executive Eugene Roman said 26Mbps will let Bell deliver one high-definition channel, two standard television channels, high-speed Internet and telephony. He said a high-definition channel can be delivered using 8Mbps of capacity, and it will only shrink as compression technology improves.
Another interesting discussion is Bell's decision to pursue the less expensive fiber to the node (FTTN) strategy rather than following Verizon, et al down the fiber to the home (FTTH). BCE CEO Michael Sabia FTTH makes no economic sense and his company can do everything they need strategically with FTTN. Still, Bell is going to spend nearly $700-million to execute its TV strategy.

Bell Mobility is jumping at the 3G bandwagon with a $150 million plans to upgrade its 1X wireless network to EVDO. Canada's second-largest wireless carrier has 21 EVDO sites up and running now, and hopes to roll out EVDO across the country by 2006. Bell claims it will be offer regular speeds of 600 to 800kps, which is five to seven times faster than 1X. Bell has little choice but to spend aggressively if it wants to generate more revenue from data wireless services, which carry higher margins than voice. Laugh if you want at ring tones, screen savers, games, etc. but that's where the real money in wireless will be found. Bell also plans to launch a push-to-talk product in the first quarter, which it says will "end the push to talk monopoly" enjoyed by Telus Corp.'s MIKE service. Bell Mobility CEO Michael Neumann says Bell's push-to-talk service will lure MIKE users away from Telus with enhanced features, although he wouldn't spills the beans on what they might be. He also mentioned Bell has no plans in the short to medium term to expand its wholesale strategy, which will see Virgin come into the market early next year (maybe?) through a joint venture with Bell. Speaking of the youth market, look for Bell to re-introduce its SOLO brand to go after the teen set. This begs the question why do a deal with Virgin if you have your own youth strategy?