Local Competition: New Bell Company to Focus on Growth Potential - Company Operations

EDGE, On & About AT&T, Jan 18, 1999

Bell Canada Tuesday clarified a number of issues related to the new Canadian company that will provide operator services in Canada and turn a declining operation into a business with strong growth potential: o Bell is an owner in this new company and will remain an important minority shareholder.

o All 2,400 Bell Operator Services employees will be offered jobs in this new company and the jobs will be based in Quebec and Ontario offering services to the Canadian public in both English and French. o The decision to form this new joint venture is separate from the pay equity issue. If the ruling results in retroactive compensation, all affected Operator Services employees would receive that compensation. Guy Marier, President of Bell Quebec, pointed out that Bell now operates in a highly competitive industry and must equal or surpass the standards of the global companies with which it competes. "Decisions such as this are not easy to make. But I can assure you that Bell will continue to treat its employees with fairness and respect and will negotiate with the unions to ensure employees the best possible arrangements for a flexible transition," he said. "The demand for traditional Operator Services has been declining by 10 percent a year over the past five years with increased competition and the introduction of new technologies," he added. "If we did not take immediate action, large numbers of jobs would inevitably disappear. We studied a number of options but this one was the best. Bell, with its partner Excell, can develop operator services into a truly competitive business, serving a variety of clients outside the Bell network and creating new areas of value- added services for customers." "We are creating this joint venture to keep jobs in Canada, to make us all more competitive and to provide growth opportunities in the future. Bell has recognized operator services expertise and Excell Global Services is a company that has the technology and marketing capability to eventually increase the total number of employees in the business," he added. This initiative is one of many that Bell is taking to increase its competitiveness and to make strategic investments in growth opportunities. Investments over the past year have been in satellite technology, broadband services, information technology and systems integration as well as electronic commerce and high- speed Internet access. These initiatives will allow Bell to create and deliver new products and services which will benefit its customer, improve value for shareholders and create new opportunities for employees. Bell Canada, the largest Canadian telecommunications operating company, markets a full range of state-of-the-art products and services to more than seven million business and residential customers in Ontario and Quebec. Bell Canada's Internet web site is located at http://www.bell.ca.