Allstream continues solid sales of IP contracts in first quarter 2012

Stock Symbol:  MBT

TORONTO, May 7, 2012 /CNW/ - MTS Allstream today announced that it made solid progress on its converged IP sales, and at the same time reaffirmed its focus on expanding its IP fibre network into targeted markets across Canada.

Allstream showed solid year-over-year converged IP revenue growth of 4.1% with improved gross margins in the first quarter of 2012.  Allstream had strong IP sales wins, including 48 new IP sales that were part of the initiative to extend its fibre network to incremental buildings.  At the same time, there continued to be a partial offset caused by the decision of a Government of Ontario department to change its policy on the procurement of telecommunication services for individual doctors' offices and clinics, as previously-mentioned in the Company's 2011 annual MD&A.  Adjusting for the impact of this contract, this quarter's converged IP revenues would have grown 8.7% year over year.

"The demand for IP services in the market remains solid. The recent improvements in our IP provisioning processes enabled record installations in the month of March, which will help support our future sales performance," said Allstream President Dean Prevost.  "Allstream remains committed to its strategy of improving profitability through its focus on IP sales, and increasing the proportion of business served on-net, while tightly managing our costs."

Some of the customers that signed contracts in the first quarter of 2012 to connect to Allstream's 30,000 kilometre national IP fibre network include Air Inuit, Informatica, Keyence Canada, Les Sélections Francois Fréchette, LS telcom, Omnitrans, Progenics Cord Blood Cryobank, Rudd Clinic, TeraMach Technologies, and Zumwalt Investment Partnership.

In support of this on-net IP services strategy, Allstream also continued the expansion of its IP fibre network into more buildings across Canada.  In the first three months of 2012, Allstream connected 99 additional buildings bringing the total number of office buildings connected to its fibre network to 2,487 across Canada, an increase of 14.9%, year over year.

Manitoba Telecom Services Inc. (MTS Allstream)

MTS Allstream is one of Canada's leading national communication solutions companies, providing innovative communications for the way Canadians live and work today. The company has more than 100 years of experience, with 5,500 employees across Canada. MTS Allstream's business is dynamic and consists of two operating divisions.  In Manitoba, MTS is the leading full-service telecommunications provider for residential and business customers. MTS's suite of services include the latest in wireless technology, broadband services, IPTV, voice services, home security, and an extensive range of business solutions. Across Canada, Allstream is a leader in IP communications and is the only national provider that focuses exclusively on the business telecommunications market. MTS Allstream has nearly two million customer connections spanning business customers across Canada and residential consumers throughout the province of Manitoba. The company's extensive national fibre optic network spans more than 30,000 kilometres. MTS Allstream has spent 11 consecutive years on the Jantzi Social Index for leadership in social responsibility and is the recipient of the 2011 Governance Gavel Award from the Canadian Coalition for Good Governance, recognizing clear and effective public disclosure and leading governance practices. MTS Allstream's common shares are listed on the TSX (trading symbol: MBT).  Customers, stakeholders and investors who want to learn more about MTS Allstream are encouraged to visit: www.mtsallstream.com.  For more information about MTS's products and services, please visit: www.mts.ca. For more information about Allstream's products and services, please visit: www.allstream.com.

Forward-looking Statements Disclaimer

This news release includes forward-looking statements and information (collectively, the "statements") about the Company's corporate direction, business opportunities, operations, financial objectives and future financial results and performance that are subject to risks, uncertainties and assumptions. As a consequence, actual results in the future may differ materially from any conclusion, forecast or projection in such forward-looking statements. Therefore, forward-looking statements should be considered carefully and undue reliance should not be placed on them. Examples of statements that constitute forward-looking information may be identified by words such as "believe", "expect", "project", "should", "anticipate", "could", "target", "forecast", "intend", "plan", "outlook", "see", "set", "pending", and other similar terms.

Factors that could cause anticipated opportunities and actual results to differ materially include, but are not limited to, matters identified in the "Material assumptions" section below, the "Risks and uncertainties" section, elsewhere in the Company's 2011 Annual MD&A and 2011 Annual Information Form, all of which are available on SEDAR at www.sedar.com.

Please note that forward-looking statements reflect Management's expectations as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Media:         
Jessica Poitras
Corporate Communications
[phone]
[email protected]