MTS releases rosy forecast for Allstream

Published: December 19th, 2008

Manitoba Telecom Services said this week it expects to see “solid growth” next year in its enterprise solutions division, which operates under the Allstream brand.

In a financial outlook released to the public, the company said it anticipates revenues will grow two per cent next year, provided the economy as a whole grows by 1.5 per cent and the gross domestic product of Manitoba grows by 2.4 per cent.

Allstream, formerly known as AT&T Canada, was acquired by MTS in 2004. It operates a fibre optic network spanning about 24,300 km.

This week the company said it predicts “solid growth” in Allstream’s services, which include unified communications, MPLS, switched Ethernet, IP trunking and IP virtual private networks (VPNs).

In its 2007 fiscal year the company made a profit of $169.7 million on revenues of $1.9 billion. Revenue from data services was $667 million.

When it released its results for the first nine months of this year in November, MTS said enterprises service revenue grew 14.6 per cent from last year, and it was awarded $247 million in new contracts. Revenue for the first nine months was $1.445 billion. Data services revenue was $523.8 million, and the company said this would have been higher if Rogers and AT&T were not migrating traffic to their own networks.

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