BCE Inc., Canada’s largest telecommunications and media company, is sharpening its long-term growth strategy by unveiling an ambitious cost-cutting and expansion plan. The company announced it will save C$1.5 billion ($1.07 billion) by 2028, while targeting steady revenue growth through advanced fiber deployment, AI integration, and a wider geographic footprint across North America. The move reflects a broader industry shift where telecom operators seek resilience through efficiency, innovation, and next-generation infrastructure.

Transforming Operations for a Leaner, Smarter Future

At its first investor day in over a decade, BCE revealed a three-year plan focused on streamlining operations and improving profitability. By 2028, it aims to achieve 15% compounded annual growth in free cash flow after lease liabilities, underscoring its financial discipline and operational efficiency goals.

A major driver of the savings will come from BCE’s decision to phase out legacy copper-based networks in favor of fiber technology, which offers higher reliability and lower maintenance costs. “The shift to fiber is more than a technological upgrade—it’s a structural evolution in cost management,” analysts noted, as such infrastructure reduces long-term capital expenditure pressures.

The company expects these measures to yield continued savings beyond 2029, setting the stage for sustainable cash flow improvement and enhanced shareholder returns.

Strategic Expansion and Competitive Positioning

BCE’s growth agenda goes beyond cost efficiency—it’s also about scale and reach. The company is preparing to launch high-speed internet services in British Columbia and Alberta, entering territories dominated by Rogers Communications and Telus Corp. This westward expansion marks a significant competitive step in Canada’s telecom landscape, traditionally segmented by regional strongholds.

To fuel this push, BCE recently completed a C$5 billion acquisition of Ziply Fiber, a U.S.-based internet service provider. This deal strengthens its cross-border presence and enhances its network reach, aligning with BCE’s goal to compete more aggressively in the North American fiber market.

Since 2020, BCE has invested nearly C$24 billion to upgrade its fiber and wireless networks—a scale of capital expenditure that signals confidence in long-term digital infrastructure growth. These upgrades are projected to drive 2% to 4% annual revenue growth from 2025 to 2028, as demand for high-speed connectivity and data-intensive services continues to rise.

Betting on Artificial Intelligence and Digital Transformation

BCE is also positioning itself at the forefront of digital transformation by embedding artificial intelligence across its operations. The company is developing a national AI compute project and applying AI tools to enhance customer service, predictive maintenance, and network optimization.

This strategic pivot aligns BCE with global telecom peers that are leveraging AI to unlock operational efficiencies and improve customer experience. In an increasingly competitive and data-driven industry, BCE’s approach reflects an understanding that AI is not merely a technological trend—it is a catalyst for redefining business models and scaling efficiently.

Outlook: Innovation, Efficiency, and Competitive Advantage

As BCE reshapes its operational framework and expands its market reach, the next few years will test the company’s ability to balance aggressive investment with disciplined cost control. If successful, BCE could emerge as a leaner, more technology-driven telecom leader capable of setting new standards for efficiency and innovation in the sector.

For investors, the company’s dual focus on fiber expansion and AI adoption offers a compelling growth narrative amid a maturing telecom market. Yet, execution risks remain—particularly around integration, competitive response, and regulatory hurdles. Still, BCE’s strategy underscores a broader trend across global telecoms: those that can efficiently harness technology and power infrastructure at scale will dominate the next phase of digital connectivity.