CALGARY, Aug. 29, 2013 /CNW/ - Axia announces that, as part of its overall strategy for Alberta, continuity of services has been assured for its public and private sector customers. Axia's agreement with the Government of Alberta (GOA) has been extended from July 1, 2015 to June 30, 2018 (the Extension Period), on substantially the same terms as those governing the initial 10-year contract period.
Art Price, Chairman and CEO of Axia, commented "Together with other initiatives, we are confident that this extension will lead to long-term growth for Axia in Alberta. We are pleased that the GOA has chosen to continue to work with Axia in maintaining and enhancing Alberta's province wide open access next generation network and look forward to continuing our long term relationship with the GOA for the benefit of all Albertans. This network provides a compelling alternative to traditional broadband service providers fostering competition across the province. "
Concurrently, Axia and Bell Canada (Bell) have executed an amendment to their existing agreements, effective July 1, 2015, to reflect standard commercial terms based on market rates. During the Extension Period, Axia will pay to Bell approximately $6M per year for current services which fee is adjustable for an increase in services purchased.
Axia owns, operates and sells services over fibre optic communications infrastructure. Axia trades on the Toronto Stock Exchange under the symbol "AXX".
This News Release contains forward-looking statements, including, without limitation, statements containing the words "should", "believe", "anticipate", "may", "plan", "will", "continue", "intend", "expect", "estimate" and other similar expressions which constitute "forward-looking information" within the meaning of applicable Canadian securities laws. These statements are based on our current expectations, estimates, forecasts and assumptions about the operating environment, economies and markets in which we operate and are subject to important assumptions, risks and uncertainties that are difficult to predict. Examples of these statements would include those where Axia forecasts its success and timing in winning new NGN business, the timing of completion and estimated total costs of our networks, the revenues and operating costs associated with these networks over time, and Axia's ability to generate future cash flows and avail itself of other financing alternatives given current market conditions. The assumptions, risks and uncertainties that could cause actual results to differ materially from the forward-looking information, include, but are not limited to, changes in customer markets, changes in demand for our services, our inability to deliver services in a timely and cost efficient manner, technological change, general economic conditions and other risks detailed from time to time in our ongoing filings with the Canadian securities regulatory authorities, including those in our Annual Information Form, which filings can be found at www.sedar.com. Given these assumptions, risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by applicable securities laws, we undertake no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise.
SOURCE: Axia NetMedia Corporation
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Chief Financial Officer
Axia NetMedia Corporation