December 17, 1999
(Works, Services and Transportation)

Government announces telecommunications contracts

Rick Woodford, Minister of Works, Services and Transportation, today announced that government has reached agreements with two local telecommunications companies which will save the province $5 million over the next five years.

The local and long distance phone agreements with Cable Atlantic and Newtel Communications, respectively, are valued at a total of $5.18 million. These services cost $6.3 million last year. A five-year, $12.5 million contract with Cable Atlantic will start May 1, 2000, and include the provision of local centrex phone services. Cable Atlantic will invest approximately $10 million in equipment as a result of the contract.

A three-year, $8.1 million agreement with Newtel Communications starts January 1, 2000, and covers long distance services and those areas of the province not covered by the centrex system. Newtel Enterprises also has existing contracts with government for information technology services valued at approximately $18 million per year.

"Entering into these contracts means that, this year alone, government will save $1.18 million," said Mr. Woodford. "When you add that up over five years, that's considerable savings to government. This deal is definitely good for the province."

Mr. Woodford also noted that by choosing two service providers, government has the opportunity to spread its business among local companies and encourage competition.

"Newtel and Cable Atlantic are local companies that have a very strong presence in our province and we're glad we can do business with both of them," said Mr. Woodford. "We know that they will give us high quality service and yet allow us to keep costs down."

Media contact: Lynn Evans, Communications, (709) 729-3015.

1999 12 16 4:45 p.m.