Manitoba Telecom Services Inc. today announced that it has signed a settlement agreement that allows for the transi...
July 2, 2004
Manitoba Telecom Services Inc. today announced that it has signed a settlement agreement that allows for the transition of commercial and business relationships, and the disposition of Bell Canada’s equity interest in the company.
As part of the agreement, both will terminate the existing commercial arrangements in a manner that maintains customer service, protects confidential information and enables MTS and Bell to satisfy existing obligations to third parties.
MTS will pay Bell a one time amount of $75 million in the third quarter of 2004. While MTS and Bell will continue to be preferred suppliers of wholesale services to each other, the two will compete freely with each other in Canada.
“We are pleased to have reached a practical resolution with Bell Canada," said Bill Fraser, Chief Executive Officer of MTS. "We can now continue with our efforts to combine MTS and Allstream."
Bell has also terminated all legal proceedings against MTS.