Bell Canada has signed on as the first major corporate sponsor of the 2010 Winter Olympics, beating out arch-rival Telus for the rights.

The deal is worth $200 million and breaks down as follows:

• $90 milllion in cash;
• $60 million in equipment for the games;
• $50 million for games-related marketing

Vancouver Organizing Committee CEO John Furlong said the Bell bid was substantially stronger than the one put forward by Telus.

BCE's Bell Canada wins team sponsorship rights for next 4 Olympics

"And a great [deal] of it will have a very high impact on our budget, both on the cost and revenue side," he said. "So the financial commitment was considerable."

Furlong called the deal extraordinary, noting the organizing committee originally expected to receive between $30 and $40 million from its major communications sponsor.

Bell Canada Enterprises CEO Michael Sabia said the added visibility created by the Olympic sponsorship was a good investment, saying it could mean big money for BCE and its shareholders.

"Just a one per cent increase in market share...generates about $300-million worth of improved shareholder value," he said. "These are powerful numbers."

Bell's sponsorship win covers more than just the Vancouver Games. It has secured Olympic partnerships through 2012, meaning that it will have the right to sponsor the Canadian Olympic Team at the Torino Winter Olympics in 2006, Beijing in 2008, as well as the 2012 Games.