MTS Allstream Announces Strategic Wireless Agreement with Rogers

Agreement Allows Cost Effective Deployment of HSPA Wireless Network; Allstream Gains Access to National Wireless Business Offering

WINNIPEG - Manitoba Telecom Services Inc., including its principal operating subsidiary, MTS Allstream Inc. today announced an innovative agreement with Rogers Wireless Partnership ("Rogers") that will see both companies share the cost to deploy a Universal Mobile Telecommunications Systems/High Speed Packet Access ("HSPA") wireless network across the existing MTS Allstream regional wireless footprint. The agreement also allows MTS Allstream to leverage Rogers' purchasing scope and scale to gain cost effective access to new network technology and HSPA handsets. MTS Allstream's HSPA customers will have access to the best national and international roaming capabilities as a Rogers roaming partner. The agreement also provides MTS Allstream with the opportunity to launch a national wireless business offering under the Allstream brand through a competitive wholesale arrangement.

"This announcement is a win for wireless customers in Manitoba, who will benefit from this innovative approach to investment in next generation wireless services and access to the best available national and international roaming," said Pierre Blouin, Chief Executive Officer, MTS Allstream. "This plan was developed following a careful evaluation of our different options. Our agreement with Rogers will allow us to deploy the HSPA network in Manitoba in a cost effective manner, allowing us to maximize the effectiveness of our capital spending and accelerate plans to launch a new integrated billing platform."

Once complete the HSPA network will provide the widest available coverage in Manitoba and deliver next-generation broadband mobile services to 97% of the population. We expect the majority of the population to be covered by the end of 2010. MTS Allstream HSPA customers will roam on Rogers' national GSM/HSPA network outside of Manitoba, and have access to Rogers' international roaming arrangements. The cost to MTS Allstream for this extensive and unmatched regional HSPA network build will be up to $70 million ending in early 2011, a portion of which will be funded by our existing capital program.

In conjunction with the HSPA rollout, MTS Allstream will implement a new integrated billing platform with capability for multiple services, creating the opportunity for significant future cost savings. Wireless customers will be the first to be served over this new platform, and the cost to bring wireless customers to this platform will be approximately $40 million over the next three years.

"Wireless has been a strong growth engine for MTS Allstream, and this plan will reinforce our strength by providing our customers in Manitoba with access to enhanced wireless services in an environment where we will continue to compete vigorously with all market participants, including Rogers," said Mr. Blouin. "We are excited to be in a position to add a national wireless business service to Allstream's robust product offering in a very disciplined manner. We will be providing more details to stakeholders as we finalize our plans."

MTS Allstream plans to continue to operate its existing CDMA wireless network in Manitoba to support existing CDMA services and roaming traffic. We believe the agreement with Rogers preserves the Company's flexibility to pursue strategic options in the future.