News | January 12, 1999

New Fiber Facilities Included in AT&T Canada's Retooling

AT&T Canada is rolling out an $528 million plan to create what it calls a "national, full-service, wired telecommunications company" that will provide customers with one-stop shopping for global services ranging from local and Internet to long distance and electronic commerce.

The company will complete fiber optic links across the Prairies to strengthen its national network and enhance existing electronic commerce and Internet protocol services. It also will invest in the local service business in major cities across Canada throughout 1999 and into 2000. AT&T Canada's national network includes a coast-to-coast fiber optic network with nationwide SONET rings, multiple ATM/Frame Relay switches, and Cisco routers.

AT&T Canada is combining the operations of AT&T Canada Long Distance Services Co. (LDS), ACC TelEnterprises Ltd. (ACC Canada), and some of the functions of AT&T Canada Enterprises Co. under the new name "AT&T Canada Corp." The role of the long distance entity will expand into a full-service telecommunications provider. AT&T Canada Corp. will have revenues of approximately $860 million, 3,300 employees and offices in more than 200 facilities in Canada.

The $800 million initiative includes:

  • the first phase of capital investment to expand services, including local service
  • working capital investment in AT&T Canada Corp.
  • the creation of a trust to purchase the ownership stake of Scotiabank, TD Bank, and Royal Bank of Canada in LDS while AT&T Canada negotiates with new partners to pick up the ownership stake.
  • the purchase of the 50% interest owned by Fortis Properties in AT&T Canada Newfoundland, the LDS joint venture in Newfoundland
  • the value of ACC Canada.

Increasing demand for new services and the rapidly changing telecommunications industry is prompting AT&T to commit substantial new capital and explore partnerships that will contribute to the growth of AT&T Canada.

President and CEO of AT&T Canada LDS Bill Catucci, who previously worked at AT&T 33 years and came out of retirement to head AT&T Canada LDS in January 1996, has once again retired. James J. Meenan, who was President and CEO of AT&T Canada Enterprises, has been appointed President and CEO of AT&T Canada Corp.

In charge of the integration of the long distance and Internet businesses of ACC Canada and AT&T Canada LDS, President and CEO of ACC TelEnterprises Ltd. Don Morrison has been appointed executive vice-president of AT&T Canada Corp.