MTS Allstream Comments on Government's Rules for Deregulation

    Stock Symbol: MBT

    OTTAWA, April 5 /CNW/ - MTS Allstream Inc. ("MTS Allstream"), a
wholly-owned subsidiary of Manitoba Telecom Services Inc. (stock symbol: MBT)
and Canada's leading national telecommunications competitor, commented on
Industry Minister Maxime Bernier's announcement of the new guidelines for
deregulation of the local telephone services market.
    Yesterday's announcement signals the government's intention to bring
accelerated deregulation to the Canadian telecom market. "In the competitive
consumer market of Winnipeg where MTS Allstream is the incumbent and intends
to meet the required quality of service requirements, customers will benefit
from a fully competitive market according to the new regulatory framework,"
said MTS Allstream Chief Regulatory Officer Chris Peirce.
    "Notwithstanding the positives the government's announcement brings to
consumers, MTS Allstream remains concerned that the government has decided to
consider the deregulation of local services offered by the largest former
monopolies without regard to their actual continuing market share and based
only on the presence of a competitor," said Peirce.
    The government has continued, however, to recognize that deregulation
must be accompanied by fair access for competitors to the public networks
controlled by those same former monopolies. "By linking deregulation to
competitor quality of service, the government has provided the incentives for
customers to receive full benefits of innovation and to enable the choice that
competition in Canada's telecommunications markets can offer," said Peirce.

    About MTS Allstream
    MTS Allstream Inc. is one of Canada's leading national communication
solutions providers, delivering innovative products and services through its
Consumer Markets and Enterprise Solutions divisions. Our Consumer Markets
division serves small business customers nationally and residential customers
in Manitoba with a full suite of wireline voice, high-speed Internet and data,
next generation wireless, digital television, security and alarm monitoring
services. Our Enterprise Solutions division provides national business
customers with a world-class portfolio of IP-based connectivity, managed
network services, and professional services. 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. The
company markets its consumer products and services in Manitoba under the MTS
brand, and its enterprise products and services nationally under the Allstream
brand. MTS Allstream is a subsidiary of Manitoba Telecom Services Inc. whose
common shares are listed on The Toronto Stock Exchange (trading symbol: MBT).
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    French to follow.

For further information:

For further information: MTS Allstream: Media: Michael Bouliane, Public
Affairs Coordinator, (204) 941-7733,;
Investors: Ian Chadsey, Vice-President Investor Relations, (204) 941-8283,

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