Axia has purchased existing fiber from Telus Communications Inc., on behalf of the Alberta government for use in th...
April 14, 2003
Axia has purchased existing fiber from Telus Communications Inc., on behalf of the Alberta government for use in the rural portion of the Alberta SuperNet. The contract, approved by the CRTC, is worth approximately $34.9 million.
The purchase, completed by Axia SuperNet Ltd., a wholly owned subsidiary of Axia NetMedia Corp., generated net profit of almost $1.94 million to Axia.
The agreement concludes Axia’s responsibility to complete major transactions for the purchase of third-party network assets on behalf of the provincial government, as outlined in a March 19 news release concerning Axia’s renegotiated contract with the provincial government and Bell West.
“Acquiring existing fibre reinforces the government’s underlying SuperNet philosophy of using established telecommunications infrastructure where it is available,” said Drew McNaughton, president of Axia SuperNet.
Alberta SuperNet is a government initiative linking 4,700 libraries, schools, hospitals and provincial government offices in 422 communities province-wide by 2004.
In addition, commercial service providers in areas, which currently do not have high-speed connectivity options, will be able to access Alberta SuperNet at current market rates, bringing competitive broadband services to most Alberta businesses and residences, whether they are
in rural or urban areas.
Axia SuperNet Ltd. has a 10-year contract to operate and manage the entire network.