- Bell Canada expects to double enterprise AI revenue by 2028
- The company's sovereign AI push aligns with Canada's broader economic independence goals
- Bell is among 43% of global telcos pursuing full AI value chain participation
As relations grow strained between the U.S. and its neighbor to the north, Bell Canada is moving forward on its multi-year grand plan to develop sovereign AI infrastructure to serve the nation.
AI is the primary growth engine for Bell Canada's enterprise business, and the company expects to double its revenue in enterprise AI-powered solutions by 2028, said John Watson, Bell group president, business markets, AI and Ateko.
Watson was one of more than a dozen in-depth interviews Fierce Network Research completed for a comprehensive report, "Risk, Reward and Revenue: Defining telcos' role in the AI economy." Fundamental to the report is a survey of 500 leaders at telcos in 40 nations worldwide. The report digs in to the various strategies, strengths and challenges these leading telcos are facing as they define their roles in the AI economy.
Telcos divide into two camps, according to our research. A little more than half, 57% of respondents to our survey, are focusing on providing infrastructure, including networks and data centers, while some 43%, have bigger ambitions by either orchestrating AI ecosystems or becoming full-service participants in the AI value chain.
Bell Canada is an example of the more ambitious group.
Bell's tightly integrated AI pillars
As a pillar of its commitment to AI strategy, Bell spun out a startup in March 2025, Ateko, with a plan to become the leading Canadian service integrator for AI automation platforms, specializing in ServiceNow, Salesforce, AWS, Azure and Google Cloud. Ateko has revenue of about $700 million, growing at more than 40% annually, compared with 10% annual industry growth, Watson said.
Ateko is one of four "tightly integrated pillars" for Bell's business, all infused with AI. Other pillars include reinventing core services and service delivery, becoming the top cybersecurity provider in Canada and building Bell AI Fabric, a sovereign Canadian network and data center infrastructure.
“Bell’s AI Fabric is Canada’s sovereign digital spine. We’re building a coast-to-coast mesh of clean-powered capacity, best-in-class connectivity, and a curated marketplace,” Watson said. “We have the complete and unique full-stack AI offering that is second to none.”
Bell made a couple of big AI moves since we spoke with Watson for our report late last year, including acquiring SDK Tek Services, a Canadian data engineering and analytics integrator. Bell also partnered with Queen's University to build an AI supercomputing facility to enable research and technical advances.
AI as a strategic investment
Bell Canada's sovereign AI initiatives come as tensions escalate between Canada and the U.S., part of a more assertive U.S. foreign and international trade policy under President Donald Trump. Canada has been a particular focus for Trump; a year ago, he threatened to use "economic force" to annex Canada and make it the U.S.'s 51st state. In response to U.S. bluster and tariffs, Canada has been strengthening trade with other partners, including China. Canadian Prime Minister Mark Carney delivered a speech at the World Economic Forum in Davos last week, calling on the "middle powers" of the world to come together against economic coercion by powerful nations.
"We are in the midst of a rupture, not a transition," Carney said. "Middle powers must act together because if we're not at the table, we're on the menu."
In his wide-ranging Davos speech, Carney briefly noted that AI is one of multiple strategic investments for Canada. The nation is "cooperating with like-minded democracies to ensure that we won't ultimately be forced to choose between hegemons and hyperscalers," he said.
Bell Canada's AI sovereignty initiative predates recent headlines, Watson told Fierce today.
Bell Canada's "core strategic focus is to deliver growth by expanding into adjacent high-growth categories linked to our core business and customer relationships," he said. AI is integral to that strategy, Watson said. Three years ago, Watson integrated Bell's $6 billion enterprise P&L into the operations and AI portfolio that he oversees. "This was well in advance of the U.S. election, Canadian sovereignty agenda and AI developments, he said.
This groundwork over the past three years is preparing Bell to enable government and business customers to achieve sovereignty.
"I recently made a presentation to our senior leaders and put this on a slide to explain the sovereignty opportunity: Fortuna fortis paratus," Watson said. "Luck favors those who are prepared."
To find out more about Bell's AI strategy, and about how 500 telco leaders are navigating AI strategy, download our free report: "Risk, Reward and Revenue: Defining telcos' role in the AI economy."