BCE Inc.’s BCE wholly owned subsidiary, Bell Canada, and Ericsson ERIC joined forces to execute the world’s first field test of AI-native link adaptation technology. This pioneering initiative not only showcases the power of artificial intelligence (AI) in telecom but also positions Canada at the forefront of 5G Advanced and future 6G innovation. The partnership marks a significant advancement in using AI to boost the efficiency and performance of radio access networks (RAN).

This next-generation technology uses real-time AI to dynamically monitor and optimize signal quality, spectral efficiency and throughput. The in-field testing conducted by Bell Canada yielded some notable results. With up to 20% higher downlink throughput, it directly translates to faster download speeds, smoother streaming and a significantly enhanced user experience. A 10% gain in spectral efficiency allows networks to support more users and devices with greater reliability and fewer dropped connections.

The partnership combined the unique strengths of both companies. Ericsson brought advanced AI technology and research capabilities, while Bell offered its network infrastructure and hands-on experience for real-world testing and validation. Bell’s position as the first global operator to test this AI-native innovation reflects not only its expertise in network modernization but also its commitment to delivering superior user experiences.

BCE’s Robust Strategies Fuel its Growth Prospects

BCE has laid out a clear strategy to drive growth, control costs and make the best use of its capital. Its four main goals for 2025 are enhancing customer experience, expanding fiber and 5G coverage, boosting business tech services and growing its digital media presence. The company plans to use AI and automation to update operations, improve customer service and create a smoother digital journey.

Bell launched Canada’s largest 5G network, delivering ultra-fast mobile data in cities like Montreal, Toronto, Calgary, Edmonton and Vancouver. Continued investments in fiber and 5G networks help Bell stay strong in a competitive market. In collaboration with Nokia, BCE also completed a trial of a 50-gigabit passive optical network, showing that even faster Internet is possible using its current fiber setup.

Moreover, Bell’s strategy and investments have positioned it for ongoing growth in telecom and media. Partnerships have helped expand its products, reach more customers and create long-term opportunities. In November 2024, Bell Canada signed a definitive agreement to acquire Ziply Fiber, a premium fiber Internet provider in the Pacific Northwest United States, to boost its North American fiber footprint and unlock new opportunities in the U.S. broadband market.

However, management remains wary of pricing headwinds, slower subscriber growth, lower wireless sales and increasing media expenses to weigh on its revenues and adjusted EBITDA. For 2025, it expects revenues to witness a change between (3%) and 1%, with adjusted EBITDA projected to shift in the (2%) to 2% range.

BCE’s Zacks Rank & Stock Price Performance

BCE currently carries a Zacks Rank #3 (Hold). Shares of the company have lost 34.2% in the past year compared with the Zacks Diversified Communication Services industry's decline of 14.6%.

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Stocks to Consider

Some better-ranked stocks from the broader technology space are InterDigital, Inc. IDCC and CommScope Holding COMM. IDCC & COMM presently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 15%.

Headquartered in Hickory, NC, CommScope is a premier provider of infrastructure solutions, including wireless and fiber optic solutions, for the core, access and edge layers of communication networks. The company currently operates in three segments — Connectivity and Cable Solutions, Networking, Intelligent Cellular and Security Solutions and Access Network Solutions. It has a long-term growth expectation of 19.37%.

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