Type Subsidiary Headquarters Toronto, Canada Founded 1967 | Website www.allstream.com Number of employees 2,500 Parent organization Zayo Group | |
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Key people Michael Strople (President) (as of Jan 17th 2014.) | ||
Allstream is a business communications provider based in Toronto, Ontario that provides IP connectivity, managed IP services, unified communications and voice services through its 30,000 km national fiber network. The company's headquarters are currently located at 200 Wellington Street West.
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History
When the telegraph and telex businesses went into decline, CN Telegraphs and CP Telegraphs, aligned with their respective railways, formed a joint venture in 1967, CNCP Telecommunications, to operate the telegraph and telex business more profitably. CNCP applied in 1983 to operate a long distance network in competition with the incumbent local telephone companies' long distance services. The application was rejected by the Canadian Radio-television and Telecommunications Commission.
CNCP later changed its name to Unitel Communications Inc., and in 1990 it made a second bid to compete in the long distance markets of Bell Canada, BC Tel and the four Atlantic telephone companies under that name. At the time, only these four companies and Northwestel, another telecommunications company, were under federal regulation. The bid was successful, and the Canadian Radio-television and Telecommunications Commission (CRTC) opened the Canadian telephone market to long distance competition. At the time of the decision, Alberta's AGT (later known as Telus) also had come under federal regulation, and all other Canadian carriers followed before the end of the 1990s. Each was opened to competition at different time.
Unitel, unable to compete successfully in the environment it had created, was then sold to Rogers Communications, where the company attempted to enter the competition for long-distance communication. Later, the company was sold to a consortium of Canadian banks, with AT&T Communications owning 33% share, but more than any one of the banks, giving them operational control.
For a time during the 1990s, there were Canadian TV spots for Unitel starring Steven Weber of Wings.
AT&T Canada
Unitel underwent turnaround management by CEO Bill Catucci, allowing it to be renamed AT&T Canada Long Distance Services. AT&T Canada was a Canadian long-distance telephone service provider, the Canadian subsidiary of AT&T Communications. In 1999, the company also merged with Metronet Communications of Calgary, Alberta. In 2003, the company was renamed Allstream as a result of AT&T's declining participation in the company. AT&T sold its remaining interests in the Canadian company in 2004.
MTS Allstream & Accelero Capital
The company was subsequently acquired by MTS in 2004, and was renamed MTS Allstream Inc. until 2012, when it was divided into two separate companies, MTS Inc. and Allstream Inc.
Allstream was to be sold to Accelero Capital in May 2013, with the deal expected to close by the end of the year. However, on October 7, 2013, the Canadian Government blocked the sale over "concerns of national security", noting that "MTS Allstream operates a national fibre optic network that provides critical telecommunications services to businesses and governments, including the Government of Canada."
Acquisition by Zayo
Allstream was sold to US fibre optic provider Zayo Group on January 15, 2016.