Agreement Allows Cost Effective Deployment of HSPA Wireless Network;
Allstream Gains Access to National Wireless Business Offering
Highlights of the agreements include:
- MTS Allstream and Rogers to share costs for deployment and operation
of regional HSPA network
- Company gains access to Rogers' purchasing power for HSPA handsets
and network equipment
- Joins the most extensive GSM/HSPA roaming coverage offered in Canada
and extensive roaming relationships internationally
- Ability to add national Allstream-branded wireless service to
business product portfolio
Stock Symbol: MBTWINNIPEG, July 28 /CNW/ - Manitoba Telecom Services Inc., including its
principal operating subsidiary, MTS Allstream Inc. ("MTS Allstream") today
announced an innovative agreement with Rogers Wireless Partnership ("Rogers")
that will see both companies share the cost to deploy a Universal Mobile
Telecommunications Systems/High Speed Packet Access ("HSPA") wireless network
across the existing MTS Allstream regional wireless footprint. The agreement
also allows MTS Allstream to leverage Rogers' purchasing scope and scale to
gain cost effective access to new network technology and HSPA handsets. MTS
Allstream's HSPA customers will have access to the best national and
international roaming capabilities as a Rogers roaming partner. The agreement
also provides MTS Allstream with the opportunity to launch a national wireless
business offering under the Allstream brand through a competitive wholesale
arrangement.
"This announcement is a win for wireless customers in Manitoba, who will
benefit from this innovative approach to investment in next generation
wireless services and access to the best available national and international
roaming," said Pierre Blouin, Chief Executive Officer, MTS Allstream. "This
plan was developed following a careful evaluation of our different options.
Our agreement with Rogers will allow us to deploy the HSPA network in Manitoba
in a cost effective manner, allowing us to maximize the effectiveness of our
capital spending and accelerate plans to launch a new integrated billing
platform."
Once complete the HSPA network will provide the widest available coverage
in Manitoba and deliver next-generation broadband mobile services to 97% of
the population. We expect the majority of the population to be covered by the
end of 2010. MTS Allstream HSPA customers will roam on Rogers' national
GSM/HSPA network outside of Manitoba, and have access to Rogers' international
roaming arrangements. The cost to MTS Allstream for this extensive and
unmatched regional HSPA network build will be up to $70 million ending in
early 2011, a portion of which will be funded by our existing capital program.
In conjunction with the HSPA rollout, MTS Allstream will implement a new
integrated billing platform with capability for multiple services, creating
the opportunity for significant future cost savings. Wireless customers will
be the first to be served over this new platform, and the cost to bring
wireless customers to this platform will be approximately $40 million over the
next three years.
"Wireless has been a strong growth engine for MTS Allstream, and this
plan will reinforce our strength by providing our customers in Manitoba with
access to enhanced wireless services in an environment where we will continue
to compete vigorously with all market participants, including Rogers," said
Mr. Blouin. "We are excited to be in a position to add a national wireless
business service to Allstream's robust product offering in a very disciplined
manner. We will be providing more details to stakeholders as we finalize our
plans."
MTS Allstream plans to continue to operate its existing CDMA wireless
network in Manitoba to support existing CDMA services and roaming traffic.
We believe the agreement with Rogers preserves the Company's flexibility
to pursue strategic options in the future.
The agreement is subject to approval by the appropriate regulatory
authorities. A Material Change Report describing all material details of the
agreement has been filed with the Canadian Securities Administrators. This
report will be available at www.sedar.com today.
Conference Call with Investment Community
MTS Allstream will be holding a conference call with the investment
community to discuss its agreement with Rogers on July 28, 2009 at 10:00 a.m.
Eastern Time. Investors are invited to listen to the conference call. The
dial-in number is 1-800-732-0232. A live audio Webcast of the investor
conference call can be accessed by visiting the Investors section of the MTS
Allstream Web site (www.mtsallstream.com). A replay of the conference call
will be available until midnight (Eastern time) on August 7, 2009 and can be
accessed by dialing 1-877--289-8525 and enter the pass code 21312065 followed
by the number sign.
About MTS Allstream
As one of Canada's leading national communication solutions companies,
MTS Allstream provides innovative communications for the way Canadians want to
live and work today. The Company has more than 100 years of experience, with
6,000 employees across Canada dedicated to a mission of delivering true value
as seen through the eyes of our customers. In 2008, MTS Allstream had nearly
two million total customer connections spanning business customers across
Canada and residential consumers throughout the province of Manitoba. The
Company's extensive national broadband and fibre optic network spans almost
30,000 kilometres. MTS Allstream is a proud sponsor of Cindy Klassen, 2006
World Champion and Canada's greatest Olympian, and a proud contributor to the
Canadian Museum for Human Rights. Manitoba Telecom Services Inc.'s common
shares are listed on The Toronto Stock Exchange (trading symbol: MBT).
Customers, stakeholders and investors who want to learn more about MTS
Allstream services, markets, community commitments and record of creating
shareholder value are encouraged to visit: www.mtsallstream.com.
Forward-looking Statements Disclaimer
This news release includes forward-looking statements and information
(collectively, the "statements") about the transactions announced herein that
are subject to risks, uncertainties and assumptions and importantly regulatory
approvals. As a consequence, actual results in the future may differ
materially from any conclusion, forecast or projection in such forward-looking
statements. Forward-looking statements reflect our expectations as at July 28,
2009. Examples of statements that constitute forward-looking information may
be identified by words such as "believe", "expect", "project", "should",
"anticipate", "could", "target", "forecast", "intend", "plan", "outlook",
"see", "set", "pending", and other similar terms. Many factors could cause
anticipated opportunities and actual results to differ materially from those
expected, and several material factors and assumptions were applied in drawing
conclusions or making a forecast or projection set out in such forward-looking
statements. Except as required by law, we disclaim any intention or obligation
to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
%SEDAR: 00003357E
For further information: Media: Greg Burch, MTS Allstream Corporate
Communications, (204) 941-8576, media.relations@mtsallstream.com; Investors:
Paul Peters, MTS Allstream Investor Relations, (204) 941-6178,
investor.relations@mtsallstream.com
