BCE Capital Spending Jumps 49% as Free Cash Falls

BCE Inc. reported a nearly 50 per cent rise in capital expenditures and a 15 per cent drop in free cash flow in its third quarter.

Updated on Nov. 5, 2026 in Telecommunications

Isometric editorial illustration of stacked fibre-optic cable spools beside plain matte server cabinets and conduit in muted oxblood, teal, and mustard. — BCE Inc. raised capital spending 49.3 per cent in the third quarter as free cash flow fell nearly 15 per cent, driven by its Saskatchewan data centre and Ziply Fiber. AI Illustration. Upload story photo >

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BCE Inc. posted operating revenue growth of 2.2 per cent in the third quarter, while capital expenditures rose 49.3 per cent, driven by costs tied to its Saskatchewan data centre and its Ziply Fiber business. Free cash flow declined nearly 15 per cent compared with last year.

Why it matters

The spending increase reflects BCE's push into data centres and U.S. fibre as Canadian telecom companies face flat immigration and heavier competition. The pressure on cash flow shows the cost of those bets in the near term.

Capital expenditures rose 49.3 per cent, driven by the Saskatchewan data centre and Ziply Fiber, which serves four northwestern U.S. states. Lower Canadian fibre spending partly offset the increase, and the filing does not say when these investments will pay back.

The players

BCE Inc.

BCE Inc. is Canada's largest telecommunications company, operating Bell wireless, internet, media and business services across the country.

CDPQ

CDPQ is the Caisse de dépôt et placement du Québec, a Quebec-based institutional investment fund that manages pension and insurance assets.

The details

BCE added about 53,700 net prepaid and postpaid mobile customers in the quarter, down from about 69,100 last year. Media revenue rose nearly 10 per cent, Crave subscribers grew 20 per cent, and Bell Business Markets revenue increased 9 per cent, while net earnings fell 86 per cent after last year's sale of its Maple Leaf Sports and Entertainment stake.

Last year: BCE sold its stake in Maple Leaf Sports and Entertainment.
Earlier in 2026: The FIFA World Cup boosted BCE's media advertising results.
Q3 2026: BCE reported the capital spending increase, free cash flow decline and revenue growth.
September 2026: BCE said it plans to quadruple its AI data-centre business through investments that could top $5 billion.
Late October 2026: BCE said it will sell a minority cellphone tower stake to CDPQ for $2.45 billion.

Industry Shift

Canadian telecom companies have seen subscriber growth slow as federal immigration levels flattened and competition intensified. BCE's shift toward data centres and U.S. fibre reflects an attempt to find growth outside the mature domestic mobile market.

Canadians on BCE's networks may see the effects of the company's investment priorities in service quality and pricing over time. The spending shift toward data centres and U.S. operations means domestic mobile growth is no longer the company's main focus.

The takeaway

BCE's results show that large telecom investments can weigh heavily on cash flow before returns arrive. Readers tracking their own providers should watch for changes in service and pricing as companies reallocate capital.

What happens next

BCE has said it will sell a minority cellphone tower stake to CDPQ for $2.45 billion in late October 2026, a transaction whose completion will be a dated milestone to watch.