MTS Allstream Endorses CRTC Decision

Decision will promote greater choice, investment, and innovation for Canadians and Canadian businesses

Stock Symbol: MBT

OTTAWA, Aug. 30 /CNW/ - In a decision today, the Canadian Radio-television and Telecommunications Commission ("CRTC") rightly opted to promote competition, investment and innovation in Canadian telecommunications. The decision acknowledges the clear concerns expressed by tens of thousands of Canadian consumers and businesses.

"By issuing a decision that reflects the competitive realities for consumers and businesses, the CRTC is recognizing the importance competition plays in driving greater investment, innovation, and choice in telecommunications markets. Increased competition, particularly in the business market, will bring benefits to all Canadians," said Chris Peirce, Chief Corporate Officer, MTS Allstream. "It will also act as a catalyst to drive greater innovation and productivity growth. We are pleased with this first step and look forward to working with the CRTC and the industry to ensure that essential broadband access is available to competitors."

The CRTC's decision, issued as a follow-up to the Federal Cabinet's request that it re-visit the need for parity or speed matching between retail and wholesale services, will assist in promoting Canadian leadership in the digital economy.

"MTS Allstream will continue to be a leader in providing competition and choice to business customers, while continuing to advocate for a pro-competitive regulatory and policy framework, just as we have done since competition was introduced into the Canadian telecommunications marketplace," added Peirce.

About MTS Allstream

MTS Allstream Inc. is a wholly-owned subsidiary of Manitoba Telecom Services Inc. As one of Canada's leading national communication solutions companies, MTS Allstream provides innovative communications for the way Canadians want to live and work today. The Company has more than 100 years of experience, with 6,000 employees across Canada dedicated to a mission of delivering true value as seen through the eyes of our customers. MTS Allstream has nearly two million total customer connections spanning business customers across Canada and residential consumers throughout the province of Manitoba. The Company's extensive national broadband and fibre optic network spans almost 30,000 kilometres. MTS Allstream is a proud sponsor of Cindy Klassen, 2006 World Champion and Canada's greatest Olympian, and a proud contributor to the Canadian Museum for Human Rights. Manitoba Telecom Services Inc.'s common shares are listed on Toronto Stock Exchange (trading symbol: MBT). Customers, stakeholders and investors who want to learn more about MTS Allstream services are encouraged to visit: www.mtsallstream.com.

Forward-looking Statements Disclaimer

This news release includes forward-looking statements and information (collectively, the "statements") about our corporate direction, business opportunities, operations, financial objectives, planned activities, 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, anticipation or projection in such forward-looking statements. 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 "Risks and Uncertainties" section and elsewhere in our most recent annual MD&A and any subsequent quarterly MD&As, as well as our most recent Annual Information Form, all of which are available on SEDAR at www.sedar.com.

Please note that forward-looking statements reflect our expectations as at the date hereof. We disclaim 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.

For further information: Media: Gillian Giesbrecht, MTS Allstream Corporate Communications, [phone], [email protected]; Investors: Paul Peters, MTS Allstream Investor Relations, [phone], [email protected]