MTS Allstream Applauds VOIP Ruling

WINNIPEG, Manitoba -- Earlier today, the Canadian Radio-television and Telecommunications Commission (the "CRTC") released Telecom Decision CRTC 2005-28, Regulatory framework for voice communication services using Internet Protocol, (the "Decision"). This Decision makes it clear once and for all that there is a need to regulate the pricing of local voice services provided by dominant telephone companies like Bell Canada and TELUS, regardless of the technology used to deliver these services. This Decision is good for Canadian consumers, recognizing that sustained innovation and choice are only possible when there is a strong competitive market place.

"The CRTC is to be commended for recognizing that dominant providers like Bell Canada have an incentive to pre-empt competition with targeted, unregulated pricing designed to stamp out their smaller rivals," said Chris Peirce, Executive Vice-President, Government and Regulatory Affairs, MTS Allstream Inc. ("MTS"). "By maintaining appropriate regulation, the CRTC is facilitating innovation and choice in this fast-moving industry. With this Decision the CRTC removes an important barrier to competitive entry in the near-monopoly local market: the possibility of anti-competitive incumbent behaviour. This brings us one step closer to offering Canadians and Canadian businesses of all sizes the benefit of real choice in services and providers."

In his speech to shareholders at MTS's Annual General Meeting in Winnipeg last week, MTS Allstream Chief Executive Officer Bill Fraser addressed this issue. "With the next wave of modernization and economic expansion in countries like China and India, and in developing countries all around the world, we need to make sure that communications remains what it should be for Canada. Not a monopoly for the entrenched interests, but a national asset that makes us more competitive, stronger and flexible - not just today but down the road," he said.

"With today's Decision, the CRTC has shown that it hasn't been swayed by misinformation about what VoIP really is," said Mr. Peirce. "Voice service is voice service - and dominant providers need to be regulated at this point in time. This framework is the only way to facilitate sustained competition which in turn will promote rapid innovation benefitting both Canadian consumers and the economy."

Manitoba Telecom Services Inc.