Bell Canada Enterprises (BCE) agreed to settle its lawsuits for a permanent injunction and damages against Manitoba Telecom Services Inc. (MTS) and for damages against Allstream Inc. The terms of the settlement include a p payment of C$75 million by MTS to Bell Canada in consideration of the early termination of commercial agreements existing between the two companies; a premium payment by MTS to Bell in the event a change of control of MTS occurs prior t January 2006; and the naming of Bell as the preferred supplier of wholesale services to MTS/Allstream.
Also, MTS/Allstream has extended wholesale services to Bell on a preferred supplier basis. Bell and MTS will compete freely with each other in Canada. Existing cellular agreements between Bell and MTS will remain in effect until the end of 2006. http://www.bce.ca
- In June 2004, Manitoba Telecom Services completed its acquisition of Allstream (formerly AT&T Canada). Allstream operates a nationwide network spanning 18,000 km and is focused on the business market.
- In March 2004, Manitoba Telecom Services (MTS) first announced plans to acquire Allstream (formerly AT&T Canada) in a transaction valued at $1.7 billion. BCE (the parent company of Bell Canada) had commenced a legal proceeding against Allstream Inc. claiming damages of $150 million from Allstream for conspiracy and inducing MTS to breach certain obligations to Bell Canada.