Fair Wholesale Access Vital for Competition in Canada’s Telecom Business Market, says MTS Allstream CEO

Toronto, ON – June 13, 2006 – In a keynote address today at the 2006 Canadian Telecom Summit, MTS Allstream CEO Pierre Blouin said that in order for Canada to get the full benefit of competition -- particularly in the national business market -- competitors like MTS Allstream must be given fair and reasonable wholesale access to the public network infrastructure controlled by the incumbent providers.In his address Blouin said, “For competition and innovation to thrive in the national business market, Canada needs a regulatory environment that creates a level playing field.�

Last year, MTS Allstream paid approximately $250 million to the former monopolies for access to the local network connections that link MTS Allstream’s advanced national network to its customers.

These local access roads – the public network infrastructure – were built by the former monopolies over the course of decades with essentially no risk in a heavily regulated, guaranteed, rate-of-return environment. Nonetheless, where regulation is absent, they charge competitors access rates that range from 50 per cent to as high as 300 per cent over and above their true costs plus a reasonable rate of return.

“The potential for competition to drive the rapid innovation offered by IP and other emerging technologies will only be realized if the requirements necessary for sustainable competition are present,� said Blouin. “The first is cost-based access for competitors to the public network infrastructure. And the second is meaningful consequences for incumbents that fail to meet mandated quality of service levels for competitors accessing the public network infrastructure. If these requirements are satisfied, competition and innovation in the business market will thrive. If not, competition and innovation will be in jeopardy.�

Blouin noted that MTS Allstream supports many of the goals outlined in the telecom policy report, including deregulation, but he emphasized, “If innovation, productivity and competition are Canada’s policy goals, then we cannot have a regulatory framework that allows the largest players to be the gatekeepers to competition in the business market. Without fair and sustainable competition, the pace of innovation in Canadian telecommunications will slow.�

About MTS Allstream

MTS Allstream 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 residential and business customers in Manitoba with a full suite of wireline voice, high-speed Internet and data, next generation wireless, directory, 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 partnerships and interconnection agreements with other international service providers. Our Common Shares are listed on The Toronto Stock Exchange (trading symbol: MBT). For more information, please visit: www.mtsallstream.com.

Source: MTS Allstream