BCE Inc., Canada’s biggest communications company, said it’s stepping up investment to support its high-speed networks and will launch a new Internet television service as it seeks to boost profit and revenue in 2010.

The company, owner of Bell Canada and Virgin Mobile, on Thursday posted a profit in the fourth quarter of $350 million, compared with a net loss of $48 million the year earlier.

Bell’s revenue in the quarter gained 4.8% to $3.9 billion, helped by the acquisition of retail chain The Source and the 50% of Virgin Mobile it didn’t already own as well as growth in television and wireless revenues, BCE said.

Operating profit rose 10% to $572 million in the fourth quarter.

Bell, together with Telus, launched a new high-speed HPSA wireless network in November to better compete with rival Rogers and help it meet the challenge from new entrants to the market expected this year. The network rollout helped boost activations in the fourth quarter to 523,000 for Bell wireless, its best ever.

BCE said Bell added 41,000 net new television subscribers, the highest number in four years.

"Our strategic commitment to invest in broadband networks and services continues, with both our new HSPA network introduction on the wireless side and the significant investments in new fibre rollouts announced today that we are undertaking to support high-speed Bell Internet and Bell TV," George Cope, BCE and Bell president and chief executive, said in a statement.

Bell plans to launch Internet Protocol television in Toronto and Montreal later in 2010. The service, Bell IPTV, will be powered by the Microsoft multimedia software platform and is undergoing consumer trials.

IPTV will offer a wide range of advanced television and entertainment services, the company said without giving further details.

The company also said it’s taking steps to improve its broadband services, with the deployment of fibre-to-the-home in Quebec City and new housing developments in Ontario and Quebec.

The Bell Fibe Internet service, which is available in Toronto and Montreal, will provide customers access to increased uploads speeds as high as 7 Megabits per second. The company gave no investment figures for the rollout of the network upgrades or Internet television.

BCE is counting on the launch of its HSPA network and other initiatives in 2009 to help boost growth at its wireless division this year.

“The 2010 financial guidance announced today reflects a well-balanced financial plan that will generate substantial free cash flow in excess of $2 billion and earnings growth of 6% to 10% to support the execution of our business plan and capital markets strategy dedicated to delivering ongoing returns to BCE shareholders," Cope said.

Bell is targeting revenue growth of 1% to 2% in 2010, with earnings before interest, tax, depreciation and amortization of between 2% to 4%.

BCE is targeting adjusted earnings per share of $2.65 to $2.75.