TELUS has announced that it has been selected to provide the Government of Ontario with managed data services, including network security. The initial 5-year, $150M contract includes opportunities for 5 additional years under extensions.
While TELUS has its own extensive network in Ontario, the contract calls for 2000 circuits in 1500 locations; off-net locations will mainly be handled by Hydro One Telecom. As a result, over the next 9-12 months of implementation, Bell Canada will experience a meaningful erosion in retail revenues, without significant wholesale off-sets.
Just as Bell West gained credibility in its selection as the builders of the Alberta SuperNet, this strategic win helps to further the interests of meaningful competition in Eastern Canada.
There are those who think that the competitive landscape is a cozy duopoly between the cable companies and the phone companies. Make no mistake. This contract not only is evidence of a vigorous rivalry between multiple service providers, it helps advance the state of competition for all subscribers by improving TELUS’ credibility in Bell’s backyard.
Technorati Tags:
TELUS, Ontario, Hydro One, Bell Canada, Mark Goldberg