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April 12, 2002 — (WEB HOST INDUSTRY REVIEW) — Manitoba Telecom Services Inc. (MTS), and Bell Canada (bell.ca) announced on Thursday that they are working together to combine the interests of Bell Intrigna and Bell Nexxia in Alberta and British Columbia, creating a new company focused on the two provinces and valued at $1 billion.
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According to Bell, the company created will operate under the Bell brand, and will be owned 60 percent by Bell Canada and 40 percent by MTS. The company will focus on serving businesses in Alberta and British Columbia with a with a suite of advanced fiber-based data and IP Services, as well as local and long distance voice services on a fully managed basis.
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Bell says the company will have approximately 700 employees in Vancouver, Calgary and Edmonton, and is made up of Bell Intrigna, which was two-thirds owned by MTS, and Bell Nexxia, which was 100 percent owned by Bell Canada.
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Former president of Bell Nexxia, Randy Reynolds, has been appointed the new president and CEO of Bell West. Bell Canada president John Sheridan will become chairman of the board, former Bell Intrigna COO Louise Villeneuve will become COO of the new company and Murray Bamforth has been appointed CFO.
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“The adoption by the new company of Bell’s network and technology platforms as well as its product and service development engine will greatly enhance its competitiveness in the marketplace,” says John Sheridan, president of Bell Canada. “This initiative is an integral element of our investments in Western Canada; investments made to ensure we can serve our customers nationally, with a diversified product offering and from a common platform?
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Through Nexxia and Intrigna, says Bell Canada, the company has already established a number of major customers, including the Government of Alberta, Canadian Pacific and the City of Calgary. The company says it is certain its relationship with MTS and the consolidation of the two organizations will propel the new company toward a significant market share and customer base.
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“The consolidation of the two companies will significantly advance our collective operations in Western Canada,” says Bill Fraser, president and CEO, MTS. “The opportunity is extensive. The total business telecom market in Alberta and British Columbia was $3 billion in 2001, and is projected to grow to $4 billion in the next three years. Our new company is ideally positioned to leverage its current market penetration and continue to grow its business.”
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The new company, says Bell Canada, is expected to grow significantly through 2002 and beyond, based on the foundations built by the original companies. The new company?s plan calls for total telecom revenues of $400 million in 2002 and for its market share to double within three to four years.
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Headquartered in Calgary, with offices in Edmonton and Vancouver, Bell West says it will work to ensure that businesses in Alberta and British Columbia enjoy the level of communication service offered by Bell across Canada, and will work closely with the Bell Carrier Service Group to serve the needs of wholesale customers in all four provinces of Western Canada.
