CHARLOTTETOWN, Nov. 12 /CNW/ - Premier Robert Ghiz today announced in the
Legislative Assembly that the Government of Prince Edward Island has entered
into a development agreement with Aliant that will see Aliant investing $8.2
million to extend broadband services to every community in Prince Edward
Island; the establishment of a $1.0 million Joint Innovation Fund; and the
renewal of the government's telecommunications contract.
The details of the agreement were outlined today in a news conference by
Fisheries, Aquaculture and Rural Development Minister Allan Campbell.
"The agreement which we are announcing today fulfills one of the
government's major commitments made during the last election campaign," said
Mr. Campbell. "This new service will be of major benefit to individuals and
businesses throughout rural Prince Edward Island, and will enable them to
become more competitive through the use of new technologies.
The agreement also allows for the renewal of the government's
telecommunications contract with Aliant, which includes local and long
distance services, for a further five years, with a total cost-saving of $2.5
million over current rates.
The minister said that Aliant is the largest information and
communications company in Prince Edward Island and will play a key role in the
continued development of the information technology sector. Over the next five
years, Aliant and the provincial government will invest $500,000 each towards
a new information technology innovation fund to promote and develop internet
based applications and uses for Island businesses.
"We are very pleased to partner with the government of PEI on these
important initiatives. Today underscores the tremendous power of partnership
and our shared commitment to keep this region at the forefront of innovation."
said Bruce Howatt, Vice President Prince Edward Island, Aliant. "Together,
through this significant investment in our broadband network and the
Innovation Fund, we will continue to foster greater opportunities to learn, to
access information, and to deliver new services."
Mr. Campbell said the new agreement is part of the provincial
government's commitment to rural development. "It is estimated that more than
25 percent of Islanders and rural businesses do not have access to high speed
internet," he said. "This new service will help stimulate rural businesses and
improve the quality of life for people living in rural communities. At the
core of this strategy is that rural Islanders, like their urban counterparts,
have the opportunity to receive the same level of services at a fair price,"
he said.
About Bell Aliant
Bell Aliant (TSX: BA.UN) is one of North America's largest regional
communications providers. Through its operating entities it serves customers
in six Canadian provinces with innovative information, communication and
technology services including voice, data, Internet, video and value-added
business solutions. Through its xwave offices, Bell Aliant also provides IT
professional services in Canada and the US. Bell Aliant's 10,000 employees are
committed to deliver the highest quality of customer service, choice and
convenience. In Atlantic Canada, communications products and services are
delivered to customers through the Aliant brand.
BACKGROUNDER - RURAL BROADBAND INITIATIVE
During the last election campaign, the provincial government made a
commitment to provide rural broadband services throughout Prince Edward
Island. In addressing its commitment to rural development in the 2008 Speech
from the Throne, it said that, "A first initiative will be the provision of
high speed internet services to all areas of rural Prince Edward Island." This
commitment was later reinforced in the 2008 budget and in the new economic
blueprint, Island Prosperity, A Focus for Change.
The provincial government further announced its commitment on the signing
of the Canada-Prince Edward Island framework agreement on infrastructure.
Under that agreement, an estimated $5.0 million was expected to be allocated
to the project. It was anticipated that a request for proposals would be
issued.
The Aliant proposal was unsolicited. The Government of Prince Edward
Island and Aliant have entered into a development agreement under which Aliant
has committed to the following:- an investment of $8.2 million, with no government funding;
- broadband access for any Islander who wants it;
- a uniform rate structure across the province;
- majority of expansion to be completed by 2009
- provide $500,000 towards a new IT innovation fund, to be matched by the
provincial government;
- explore mutually beneficial IT development opportunities between Aliant
and the provincial government;
- make available access to its network by other ISP companies.As part of the agreement, the provincial government renewed its telephone
services contract with Aliant for a further five years. Aliant will provide a
discount which will result in a total savings to government of $2.5 million
over the five years. (Extending telephone contract services without a request
for proposals has been a common practice of previous administrations.)
Aliant is the largest information and communications technology company
in Prince Edward Island. It employs 350 people, and has the skills and
capacity to help continue to develop the information technology sector in the
province. Information technology has been identified by the provincial
government as a priority for development.
This agreement is consistent with the internal trade agreement as it
relates to sole source procurement. The agreement provides for sole source
procurement when there are regional development benefits.
The adoption of the Aliant proposal provides for significant cost-savings
for government, while providing strong technical expertise for the benefit of
rural Prince Edward Island.
For further information: Wayne MacKinnon, (902) 368-4888; Isabelle
Robinson, Aliant, (866) 694-6762
