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FIELD(S) AND STREAM |
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Expanding the MTS-Allstream Reach
and Depth |
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May 2004 - IGB Grant +1 514 849 3508
& Brian Sharwood +1
416 413 9381
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KEY HIGHLIGHTS: |
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- The MTS-Allstream marriage is a good thing.
It is a good thing for Allstream stakeholders, it is a good thing for
MTS stakeholders, and it is a good thing for the industry.
- The industry (customers, competitors, and
market overseers) will benefit from broader, more vigorous competition – the
Allstream business model buoyed by the resources of Manitoba Telephone
will have a better chance of commercial success than the Allstream model
alone. The MTS business model will finally cast off the shackles of geographic
isolation and business atrophy that characterized its pre-nuptial state.
- Allstream stakeholders, who have held on as
the company wrestles-yet-again with its business and execution models,
will see a brighter future. Allstream has most of the ingredients for
success onboard. It now needs to focus its efforts and its attention
on the external market – it needs to shore up its existing account
relationships, it needs to push forward its new technology roll-outs,
and it needs to exploit its beachheads in the wireless local loop. MTS
can help Allstream accomplish all this and more.
- MTS will gain a new spring in its step, drawing
vigour from another chance to expand its domain. It has stepped out of
the Keystone province several times before – on its first retreat
it returned from Saudi Arabia to lick its wounds and forget– and
on its second retreat it consoled itself with a Bell dowry of $675M.
The Allstream marriage gives the company another chance to grow its business
with an Allstream leadership team that knows where the shoals lie, an
Allstream leadership that has run a national telecoms provider before.
- Our view isn’t entirely sanguine – we
contend that the Allstream-MTS marriage, a union we dub ManStream till
a more compelling sobriquet is found, may not be robust enough to sustain
the competitive challenge to Bell and Telus. We explore some possible
polygamous family extensions.
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