Manitoba Telecom Services Inc.

MTS Allstream is a leading national communications provider in Canada and the market leader in Manitoba. Our company is organized into two principal business segments: MTS, operating in Manitoba; and Allstream, operating nationally. Our Common Shares are listed on the Toronto Stock Exchange (trading symbol: MBT).

MTS

MTS leads every telecommunications market segment in Manitoba, delivering a full suite of wireless, broadband (high-speed Internet and digital television), converged Internet protocol ("IP"), unified communications, security, home alarm monitoring, local access, as well as long distance and legacy data services. This complete range of products is unmatched by any other provider in the province. MTS serves both residential and business customers in Manitoba.

Allstream

Allstream is a leading competitor in the national business and wholesale markets; offering small, medium and large businesses and government organizations a portfolio of telecommunications solutions tailored to meet their needs. Allstream's main products are IP-based communications, unified communications, voice and data connectivity, and security services. Allstream operates an extensive national broadband fibre optic network that spans almost 30,000 kilometres, and provides international connections through strategic alliances and interconnection agreements with other international service providers.

Core strengths

Our core strengths include:

• a regional telecommunications franchise, which operates in Manitoba as the leading full-service provider, with very high brand recognition among residential customers and businesses;
• an extensive national IP fibre network, spanning almost 30,000 kilometres of fibre across the country;
• an innovative product portfolio of IP-based services and network solutions for large enterprise, mid-market and small business customers;
• a strong regional wireless franchise with significant continuing growth potential and the unmatched ability in Manitoba to bundle up to five services including wireline, wireless, high-speed Internet, television and alarm monitoring services;
• over 55% market share for each of high-speed Internet and wireless services in the Manitoba market;
• a leading-edge regional network with extensive broadband capabilities in Manitoba, which is being upgraded so that we will be able to provide MTS Ultimate TV and higher Internet speeds to an additional 120,000 homes in close to 20 Manitoba communities by 2015;
• a thriving digital television service offering, with a success rate that is unparalleled in North America; gaining a 34% market share in seven years of operation;
• a cost structure that supports profitable competitive success in our markets;
• a dedicated, talented team of people, having the latest in skills and expertise with next generation products across the country, who are motivated to deliver on our strategies; and
• a strong balance sheet which provides significant financial flexibility.

Our products and services

We generate revenues from the following lines of business: