Minister announces awarding of contracts for government�s local and long distance telephone services

Tom Rideout, Minister of Transportation and Works, today announced the awarding of contracts for both local and long distance telephone services. Minister Rideout said, �I am pleased to announce that government has secured contracts to provide these services in a cost-effective manner.�

A contract for local telephone service has been awarded to Newfoundland and Labrador Rogers Telecom Inc. This is a contract valued at approximately $8.2 million. This contract will result in a 14.5 per cent reduction in operating costs for all government departments for local telephone service, over the three-year life of the agreement.

A contract valued at approximately $700,000 has been awarded to Aliant. This will result in a 25.7 per cent reduction in operating costs for all government departments for long distance telephone services, over the three-year life of the agreement.

The contracts were awarded through a Request for Proposals (RFP) process. As part of the process proposals were evaluated, by a committee, based on specified evaluation criteria.

A further savings of approximately $600,000 will be realized by government in exercising an option to purchase telephone sets within the St. John�s area that are currently being rented by government. This option was put forward as part of the Rogers Telecom Inc. proposal.

Minister Rideout said, �Telecommunications services are an increasingly important component of any government operation and I am pleased that my department was able to secure such excellent arrangements for our government. We were faced with a difficult financial situation. However, we have availed of opportunities like this to obtain more value for taxpayers� dollars. We will continue to do so.

�Our government looks forward to working with both Rogers Telecom Inc. and Aliant in the delivery of government services to the people of Newfoundland and Labrador, over the next number of years.�

Media contact: Lori Lee Oates, ABC, Communications, (709) 729-3015, 690-8403

2005 09 27                             3:00 p.m.