MTS Allstream announced yesterday that it has been selected to implement an MPLS solution for WestJet airlines.
It is a significant win for Allstream. Not only does the MPLS network (replacing existing frame relay services) represent an endorsement from an existing customer, it is an upgrade in the scope of services. WestJet has engaged MTS Allstream to implement Intellitactics Security Manager for its enterprise wide network.
We have spoken of confidence building events over the past few weeks with various TELUS announcements. This win for Allstream was long overdue.
MTS Allstream releases its Q2 results today. There is a conference call scheduled at 4:30. Will Westjet be enough to instill confidence in employees and the investment markets?
Update:
Results are in. Pierre Blouin has delivered on expectations and the market’s reaction so far is reasonably steady. While cost reduction efforts are moving along, it seems to me that MTS Allstream needs to focus on new revenue opportunities.
The CRTC monitoring report indicates that overall industry revenues are up – thanks in large part to wireless and high speed internet services. We’ll watch to see if MTS Allstream can continue to drive new revenues, such as its success in selling enterprise security to WestJet, in order to stop the erosion from the top line.