CONSOLIDATION beginning to take place in the industry
AT&T CANADA CORP.
AT&T CANADA ANNOUNCES MERGER OF ITS INTERNET
BUSINESSES
Internet Divisions of AT&T Canada, Netcom Canada, MetroNet and ACC
TelEnterprises to be integrated into a next-generation, business-focused
Internet and E-Business company, leveraging AT&T Canada's Brand, Distribution
Channels and State-of-the-Art Local and Long-Haul Fiber Optic Networks
AT&T Canada Internet and E-Business Unit to be Led by Canadian Internet
Pioneer Ron Close
TORONTO, Nov. 22 /CNW/ - AT&T Canada Inc. (TSE/ME: TEL.B and NASDAQ:
ATTC), Canada's largest and only national facilities-based competitive
provider of local and long distance voice, data and Internet communications
services, today announced that it has reached an agreement to purchase the 49%
minority stake of Netcom Canada it does not own and that it will merge and
integrate its four Canadian Internet businesses, as well as the
recently-acquired Microsoft Network Services (MSN) customers in Canada, under
the leadership of Ron Close who was previously President, CEO and co-founder
of Netcom Canada Inc.
The new business unit, to be called AT&T Canada Internet and E-Business
Services, will be structured to provide the levels of focus and autonomy
needed to win in the fast-paced Internet environment. The Internet group will
leverage AT&T Canada's state-of-the-art local and intercity fiber optic
networks and its powerful business-focused distribution channels.
''This is an extremely significant announcement for AT&T Canada and for
our Internet customers who rely on us to consistently deliver quality,
simplicity and value,'' said Ron Close, President of the new business unit.
''This business combination will provide us with cost and quality advantages
only enjoyed by facilities-based providers. We now offer one of the most
robust suites of Internet and E-Business services across the country, sold
through one of the largest and most effective sales forces. Furthermore, our
focused structure and organization allows us to execute well and to move
rapidly in this fast-paced market.''
The separate business unit has already been established and the
acquisition of the remainder of Netcom is expected to close in the first
quarter of 2000.
About AT&T Canada: AT&T Canada is Canada's largest facilities-based
competitive voice, data and Internet telecommunications provider. Created
during 1999 from the merger of AT&T Canada Long Distance Services, MetroNet
Communications, Netcom Canada and ACC TelEnterprises, AT&T Canada brings
together the country's largest competitive local exchange carrier (CLEC),
three of Canada's leading competitive Internet Service Providers (ISP), and
Canada's pioneer in competitive long distance. Deploying the most advanced
fibre-optic networking and digital switching platforms, AT&T Canada offers
customers across the country a full suite of local and long distance voice,
data and Internet services - with excellent customer service, competitive
pricing, and sales and service locations from coast-to-coast. AT&T Canada Inc.
is a public company with its common stock traded on the Toronto and Montreal
stock exchanges under the symbol TEL.B and on the NASDAQ National Market
System under the symbol ATTC. Visit AT&T Canada's web site, www.attcanada.com,
for more information about the company.
Note for Investors: This news release includes statements about expected
future events and/or financial results that are forward-looking in nature and
subject to risks and uncertainties. For those statements, we claim the
protection of the safe harbor for forward-looking statements provisions
contained in the Private Securities Litigation Reform Act of 1995. The company
cautions that actual performance will be affected by a number of factors, many
of which are beyond the company's control, and that future events and results
may vary substantially from what the company currently foresees. Discussion of
the various factors that may affect future results is contained in the
company's recent filings with the Securities and Exchange Commission, the
Ontario Securities Commission, and SEDAR.
-30-
For further information: Media: Drew Van Parys, (416) 345-3623,
drew.vanparys@attcanada.com, Investors and Analysts: Bruce M. Mann, (416)
345-3577, bmann@attcanada.com
|
