Frost & Sullivan Lauds MTS Allstream for Its Strategies and Growth in the Residential Communications and Entertainment Services Market



    PALO ALTO, CA, Aug. 11 /CNW/ - Based on its recent analysis of the North
American consumer communications and entertainment wallet share growth, Frost
& Sullivan recognizes MTS Allstream Inc. (MTS Allstream) with the 2008 North
American Frost & Sullivan Award for Competitive Strategy Leadership. The
company has gained a strong foothold in the fiercely competitive residential
service market through careful planning and execution, investment in network
upgrades, innovative marketing and promotion, effective bundling, and roll-out
of new services and enhanced features.
    This leading regional telecom service provider offers a full suite of
residential services including landline phone, broadband Internet, wireless
and television services to consumers in Manitoba, Canada. MTS Allstream leads
its peers operationally and financially in different consumer service segments
and has consistently translated strategies into tangible results for
shareholders and customers. Not only has the company succeeded in growth
markets such as broadband, television/video and wireless services, but it has
also effectively managed declining legacy services such as switched landline
voice.
    "Subscriber numbers and revenues from wireless, consumer broadband and
IPTV services are on a growth trajectory," notes Frost & Sullivan Industry
Analyst Piyush Arora. MTS Allstream's consumer Internet service revenues grew
by 21.3 percent, digital television/video service revenues grew by 23.2
percent, and wireless service revenues posted a growth of 11.1 percent in the
first quarter of 2008 over the corresponding period last year.
    MTS Allstream has mitigated the decline in legacy services such as local
and long distance fixed voice services through a combination of a bundling
strategy and the success of its win-back campaign in a more relaxed,
regulatory environment. The company offers up to five discrete services,
making it among the few "quintuple-play" service providers in North America.
    MTS Allstream is continuously adding new services, features and products
to enhance the value proposition that it offers to its customers. The company
is working to introduce next-generation broadband Internet and TV services,
with more HD content offerings, digital video recorder (DVR) functionality,
improved guide features, and other advances. It has also partnered with
Alcatel-Lucent and Microsoft to strengthen its broadband Internet and IPTV
platform.
    Further, MTS Allstream is increasing its wireless access coverage
throughout Manitoba and is offering advanced handset devices and enhanced
services to its wireless subscribers. Other recent service and feature
enhancements include free software for broadband and wireless subscribers that
allows them to connect to best data network available (Ethernet, Wi-Fi or
EVDO); and a flat-rate email/surf solution offering unlimited access to mobile
broadband Internet access over the EVDO network.
    "Besides using conventional marketing and promotional tactics such as
bundled discounts and targeted plans for specific segments, such as students
and family plans, MTS Allstream deploys innovative channels to cut through the
clutter and increase its visibility," notes Arora. "For instance, it recently
re-launched the 'Entourage' website in an attempt to promote itself to the
youth segment by offering an exclusive VIP club for youth, with free tickets
and access to popular concerts and events across the province."
    MTS Allstream is also using its centenary anniversary as an occasion to
tout its role in the telecom market development in Canada. The company
recently announced an exhibit in the MTS Center that captures the history of
telecommunications in Canada as well as the role that MTS Allstream has played
in this market. Earlier this year, MTS Allstream also launched an anniversary
video that is available free to MTS TV customers and to the general public on
its special anniversary website.
    Overall, MTS Allstream has adopted a multi-pronged strategy to grow its
share of the residential service market and is a worthy recipient of the 2008
Frost & Sullivan Competitive Strategy Leadership Award.
    Each year, Frost & Sullivan presents this award to the company whose
competitive strategy has yielded significant gains in market share during the
research period. Often, the recognized company has taken advantage of recent
market changes that facilitate the introduction of never-before seen methods
of capturing and solidifying market presence. Alternatively, the Award
recipient may have executed an innovative strategy within the existing
competitive landscape, empowering the company to overtake the competition. In
either case, the company captures the attention of the competition, which
quickly adjusts in order to protect its own market position. Frost & Sullivan
analysts expect such innovations to produce lasting, precedent-setting trends
in the industry.
    Frost & Sullivan Best Practices Awards recognize companies in a variety
of regional and global markets for demonstrating outstanding achievement and
superior performance in areas such as leadership, technological innovation,
customer service, and strategic product development. Industry analysts compare
market participants and measure performance through in-depth interviews,
analysis, and extensive secondary research in order to identify best practices
in the industry.

    About MTS Allstream

    MTS Allstream Inc. is a wholly owned subsidiary of Manitoba Telecom
Services Inc., and is one of Canada's leading national communication solutions
providers, delivering innovative products and services through the Enterprise
Solutions and Consumer Markets divisions. The Enterprise Solutions division,
which operates under the Allstream brand nationally and under the MTS
Allstream brand in Manitoba, is a leading competitor in the national business
and wholesale markets. This division offers customers a portfolio of solutions
tailored to the needs of medium and large businesses looking for success in a
world of rapidly evolving technology - IP connectivity, unified
communications, IT consulting and security services, and voice and data
connectivity services. The Consumer Markets division leads every
telecommunications market segment in Manitoba, delivering a full suite of next
generation wireless, high-speed Internet and data, digital television and
wireline voice services under the MTS brand, as well as small business
services in select markets across Canada under the Allstream brand, and
security and alarm monitoring services through AAA Alarm Systems Ltd., an
affiliate of MTS Allstream which also operates in other western provinces. MTS
Allstream's extensive national broadband fibre optic network spans more than
24,300 kilometres, and provides international connections through strategic
alliances and interconnection agreements with other international service
providers. Manitoba Telecom Services Inc.'s common shares are listed on The
Toronto Stock Exchange (trading symbol: MBT).

    About Frost & Sullivan

    Frost & Sullivan, the Growth Partnership Company, partners with clients
to accelerate their growth. The company's TEAM Research, Growth Consulting and
Growth Team Membership(TM) empower clients to create a growth-focused culture
that generates, evaluates and implements effective growth strategies. Frost &
Sullivan employs over 45 years of experience in partnering with Global 1000
companies, emerging businesses and the investment community from more than 30
offices on six continents. For more information about Frost & Sullivan's
Growth Partnership Services, visit http://www.awards.frost.com.




For further information:

For further information: Jake Wengroff, (210) 247-3806,
jake.wengroff@frost.com

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