TELUS keeps on the moveThis is likely just the start of many more 'kick BCE asss' contracts which TELUS will win back East. And SHAW will be next soon enough.
Telus wins contract in Bell's bailiwick
Thursday, September 14, 2006
Telus Corp. has won a five-year, $140-million contract from the Ontario government to provide data telecommunications services, outbidding archrival Bell Canada in its own backyard.
The victory over Bell Canada, with its stranglehold on the Ontario and Quebec markets, comes amid the larger battle between the telecommunications heavyweights in the lucrative business market.
"It's a flagship win for Telus because it's on Bell territory," Brian Sharwood, a Toronto-based analyst with telecom consulting firm Seabord Group, said yesterday in a interview. "It gives it legitimacy [among business customers] especially in the Ontario market."
Montreal-based Bell Canada had the lion's share of the previous Ontario government contract, with smaller portions of it going to Vancouver-based Telus and EDS Canada Inc. of Toronto.
With the latest long-term contract, Telus gets the "whole business," said Joe Natale, president of business solutions at Telus. "We feel terrific that we have won in Central Canada, and against the incumbent," he added. "It's the largest contract [for Telus] in Ontario."
Bell Canada spokesman Mohammed Nakooda said the telecommunications giant is not concerned about Telus winning the right to manage and supply a portfolio of network services to the Ontario government. Bell Canada is still clearly the leader in Internet protocol-based information, communications and technology deals with large business customers, he said.
In 2004, Bell Canada scored a marketing coup against Telus by pledging $200-million in cash and contributions to become the official telecommunications sponsor for the 2010 Winter Olympic Games in Vancouver. That offer dwarfed Telus's bid of $135-million.
Mr. Natale said the Ontario government contract is the culmination of a national strategy that began in 2000 when Telus, with its base in British Columbia and Alberta, embarked on a multibillion-dollar investment in infrastructure and acquisitions in Ontario.
"Since 2000, we have made significant strides, and now we are truly a national player across business and consumer wireless lines," Mr. Natale said.