How Bell Canada remade itself from the top down
BCE details how it transformed its culture, operations and cost structure amid last year’s failed takeover
BCE still has a lot of work to do in its transformation efforts. This year it plans to cut its wireline spending (capex and opex) from $2.7 billion to $2.3 billion. But it also hopes to invest using the capital savings yielded by its corporate transformation.
The company plans to roll out an HSPA wireless network over its existing CDMA EV-DO network to prepare for a Long-Term Evolution (LTE) launch in 2012. And it wants to grow the number of distribution points for its mobile business, with plans to add 60 kiosks for its Solo mobile business this year. While the company cut about 3500 people from its wireline operations in the back half of last year, it added 140 to its wireless ranks.
It’s also accelerating its fiber-to-the-node (FTTN) rollout, with the goal of more than doubling its footprint in the next four years, from 2.4 million homes passed at the end of 2008 to 5 million by the end of 2012.
Like Qwest Communications, BCE uses a satellite partner for its video offering rather than a home-grown IPTV offering. That strategy, Cope said, allows BCE to roll out FTTN faster than it could if it was simultaneously deploying IPTV services. And when the cost of providing IPTV comes down enough to make it attractive to BCE, the company will have a larger fiber footprint upon which to launch it.
“There’s still work to do,” Cope said.
Read more about how other major carriers have transformed themselves here in Telephony’s latest cover feature, “Transformation Revisited.”
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