MTS Allstream to Work With Microsoft and Alcatel-Lucent to Introduce Enhanced Broadband Internet and TV Services

WINNIPEG, Manitoba — Jan. 17, 2008
Continuing to lead the Canadian telecommunications sector when it comes to delivering TV service, MTS Allstream Inc. (MTS Allstream) announced today that it will move forward with steps to introduce next-generation high-speed Internet and TV services to Manitoba customers, with more high-definition TV (HDTV) offerings, personal and digital video recorder (PVR and DVR) functionality, improved guide features and other advances. The new services will be powered by a combination of network connectivity provided by Alcatel-Lucent Canada Inc. (Alcatel Lucent Canada) and the award-winning Microsoft Mediaroom Internet Protocol Television (IPTV) and multimedia platform.

MTS Allstream is entering into agreements with both Microsoft and Alcatel-Lucent that will enable the company to introduce an initial set of services on a limited basis in 2008. A trial location outside of Winnipeg is being considered.

“This is an evolution of our existing Internet and MTS TV services, and positions MTS Allstream to continue its success as Manitoba’s telecommunications provider of choice, be it local service, high-speed Internet, television or wireless,” said Kelvin Shepherd, president, Consumer Markets Division, MTS Allstream. “Leveraging the broadband network and MTS TV investments we have made over the past several years, we will be adding the established and successful Microsoft Mediaroom solution to extend our current proven digital TV platform. Together with connectivity from Alcatel-Lucent, this will provide the basis for not only advanced TV services, but improvements to our high-speed Internet service, and the opportunity for new services and features that cross the different platforms we offer, including wireless. This will reinforce the success of our bundling strategy, and the competitive strength of our business without impacting our capital spending in 2008.”

“As the television becomes connected to the broadband network and powerful software is added, new connected TV experiences become possible, so people can connect with their favorite content, services, devices and people,” said Christine Heckart, general manager of marketing for Microsoft TV at Microsoft Corp. “Together with Alcatel-Lucent and Microsoft, MTS Allstream is very well positioned to offer a way for its customers to experience the next generation of television, featuring entirely new connected TV services.”

“As the world leader in both IPTV and Mobile TV deployment, we are bringing our real-world experience and knowledge to help MTS Allstream move to the next generation of information, communications and entertainment experiences for their customers,” said Alex Giosa, president of Alcatel-Lucent Canada. “We also support MTS Allstream’s time-to-market objectives by implementing a secure and reliable infrastructure capable of delivering high-end multimedia services.”

Further details on the introduction of these new services will be provided over the next several months.

About MTS Allstream

MTS Allstream Inc. is a wholly owned subsidiary of Manitoba Telecom Services Inc., and is one of Canada’s leading national communication solutions providers, delivering innovative products and services through the Enterprise Solutions and Consumer Markets divisions. The Enterprise Solutions division, which operates under the Allstream brand nationally and under the MTS brand in Manitoba, is a leading competitor in the national business and wholesale markets. This division offers customers a portfolio of solutions tailored to the needs of medium and large businesses looking for success in a world of rapidly evolving technology – Internet protocol-based communications, unified communications, voice and data connectivity services. The Consumer Markets division leads every telecommunications market segment in Manitoba, delivering a full suite of next generation wireless, high-speed Internet and data, digital television and wireline voice services under the MTS brand, as well as small business services across Canada under the Allstream brand, and security and alarm monitoring services through AAA Alarm Systems Ltd., an affiliate of MTS Allstream which also operates in other western provinces. MTS Allstream’s extensive national broadband fibre optic network spans more than 24,300 kilometres, and provides international connections through strategic alliances and interconnection agreements with other international service providers. Manitoba Telecom Services Inc.’s common shares are listed on The Toronto Stock Exchange (trading symbol: MBT). For more information, please visit:

About Microsoft Mediaroom

The award-winning Microsoft Mediaroom Internet Protocol Television (IPTV) and multimedia software platform is driving the future of television by enabling broadband service providers to deliver new connected TV and entertainment experiences to consumers worldwide. Microsoft Mediaroom provides new ways for consumers to experience TV as part of their connected, digital lifestyle while also creating new business opportunities for broadband service providers, hardware manufacturers, content creators, advertisers and application developers. Over 20 of the world’s leading service providers across four continents have selected the Microsoft Mediaroom platform to drive their digital TV services. More information on Microsoft Mediaroom and the opportunity to deliver the best in TV plus all your media in one place is available at and

About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU) provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end-users. As a leader in fixed, mobile and converged broadband networking, IP technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable compelling communications services for people at home, at work and on the move. With operations in more than 130 countries, Alcatel-Lucent is a local partner with global reach. The company has the most experienced global services team in the industry, and one of the largest research, technology and innovation organizations in the telecommunications industry. Alcatel-Lucent achieved adjusted proforma revenues of Euro 18.3 billion in 2006 and is incorporated in France, with executive offices located in Paris. [All figures exclude impact of activities transferred to Thales]. For more information, visit Alcatel-Lucent on the Internet:

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at on Microsoft’s corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at

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