The Honourable Shawn Skinner, Minister of Innovation, Trade and Rural Development today announced that the Provincial Government will begin negotiations with EastLink Communications and Axia NetMedia Corporation to build and manage distinct aspects of Government�s Broadband Initiative (GBI), which is a network that enables government to take ownership of its communications requirements.

Through this communications network, the Provincial Government will connect more than 1,000 of its facilities that include health care institutions, libraries, schools, and other offices in communities spanning all regions of the province. The network will also enhance the ability of communications companies to offer similar services to local residential and business customers.

"Today marks a very important step in the process of delivering a new, advanced communications network for government and its agencies," said Minister Skinner. "Through these negotiations, we will work with both proponents to confirm the details of the contract and overarching initiative. In the coming months we will be working aggressively to conclude negotiations and begin construction by April 2010. Upon completion of GBI, we will have created an environment where communications carriers such as Axia and EastLink can offer new and enhanced services to existing customers and new services to those currently without access in areas where Provincial Government facilities are located. This is a further example of government�s innovation agenda at work � we are creating the platform for industry to capitalize on government infrastructure and improve communications in Newfoundland and Labrador."

Review and evaluation of the proposals received in response to the Request for Proposals has included extensive consultation with officials from other government agencies and departments, along with representatives from the Federal Government. The selected proponents provide the best combination of cost competitiveness and network technology and management.

"The scope of this project is quite expansive and will have a significant impact on all regions over many years," said Minister Skinner. "The province�s geography presents unique challenges that require innovative solutions. With that in mind, significant analysis is required � with our due diligence we are ensuring that we are getting the best deal possible. That�s what this government does � we do the research and get it done right."

As outlined in the 2006 innovation strategy Innovation Newfoundland and Labrador: A Blueprint for Prosperity, broadband access is a key component of the province�s innovation infrastructure. The completion of the province�s second trans-gulf fibre optic connection to mainland Canada enabled increased competition, along with improved services at lower rates.

"The Provincial Government has embarked on an agenda that encourages greater levels of innovation and research and development," said Minister Skinner. "Through our efforts the province�s research institutions have increased capacity to advance their ground-breaking research. We are also taking significant steps to equip our departments and agencies with new and faster means to meet their mandates. This network will have a positive impact on all Newfoundlanders and Labradorians."

As a government, departments and agencies are currently spending approximately $25 million per year on telecommunications services. This project will enable the Provincial Government to divert that spending towards this new system and in doing so offer increased services to the public.

• Video of Minister's News Conference.

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Media contact:

Scott Barfoot
Director of Communications
Department of Innovation, Trade and Rural Development
709-729-4570, 690-6290
scottbarfoot@gov.nl.ca

Axia provides Real Broadband� Internet Protocol ("IP") services and solutions through planning, designing and operating no conflict Open Access Next Generation Networks. Axia has proven that this model will work in the rural/remote sector through the Alberta SuperNet, in medium density regions in France and in high-density metropolitan cities like Singapore.

Axia created its value proposition by strategically combining modern technology with a business approach that creates the best result for end users. Its approach is based on creating a sustainable value chain of industry players that each excel at delivering their core competency. The result is a transformation to markedly improved performance, lower cost and increased choice to end users.

Based in Calgary, Axia trades on the Toronto Stock Exchange under the symbol "AXX". Axia has 154 employees worldwide.

EastLink has the distinction of having been the first cable company in Canada to enter the telephone market, and the first cable company in Canada to combine Cable, Internet and Telephone in a communications and entertainment bundle. At EastLink, creativity, ingenuity and innovation are the driving forces behind our great products and services.

EastLink has been recognized as one of Canada's 50 Best Managed Companies for the past three years, and its parent company, the Bragg Group, was named Canada's Family Enterprise of the Year for 2009. For more information on EastLink, please visit eastlink.ca.