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Cheryl Barker – President Manitoba DivisionScotia Capital Markets – November 21, 2005

AgendaAgenda

Who we are

Winning the broadband home

Why we entered the TV market

The MTS TV service

The future

Who we are

Winning the broadband home

Why we entered the TV market

The MTS TV service

The future

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MTS Allstream OverviewMTS Allstream Overview

National communications providerLeading-edge national networkExtensive service portfolio with IP capabilitiesStrong platform to grow nationallyMarket leader in ManitobaExcellent balance sheet strength

National communications providerLeading-edge national networkExtensive service portfolio with IP capabilitiesStrong platform to grow nationallyMarket leader in ManitobaExcellent balance sheet strength

Leadership Position - ManitobaLeadership Position - Manitoba

Full Service Provider

Customer Ownership/Relationship

Brand Recognition

Pervasive Infrastructure

Defendable Market

Well positioned for local competition

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Winning thebroadband home

Winning thebroadband home

NexGen InitiativeNexGen Initiative

$300 M investment over 5 years (2001 – 2005)

Secured Province of Manitoba data network as anchor tenant

HSI footprint: 85%+ of Manitoba households

Extensive bandwidth enhancements to business customers

Lastly, push fibre out in Winnipeg to offer MTS TV

$300 M investment over 5 years (2001 – 2005)

Secured Province of Manitoba data network as anchor tenant

HSI footprint: 85%+ of Manitoba households

Extensive bandwidth enhancements to business customers

Lastly, push fibre out in Winnipeg to offer MTS TV

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High-Speed InternetHigh-Speed Internet

CUSTOMER BASECUSTOMER BASE

65,19382,678

103,613120,546

35,940

2001 2002 2003 2004 Q3/05

Why we entered theTV market

Why we entered theTV market

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Why get into TV?Why get into TV?

Natural extension of broadband to the home strategyHigh growth entertainment sector, leveraging back-office capabilitiesCustomer stickiness strengthenedRobust alternative for analog cable customers moving to digitalPositive business case –18%/RR/8 year paybackTechnology timing was right

Natural extension of broadband to the home strategyHigh growth entertainment sector, leveraging back-office capabilitiesCustomer stickiness strengthenedRobust alternative for analog cable customers moving to digitalPositive business case –18%/RR/8 year paybackTechnology timing was right

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More choice in channels and packages than any other providerOver 250 channels in 30 packages to choose fromPriced between cable analog and digital, with more of what you want

The only TV service in Winnipeg that delivers all features, all channels, all digital to all TVs via a single set-top box

Set-top included at no chargeBasic TV $24.95

Bundled savings$10 to $15 off per month

More choice in channels and packages than any other providerOver 250 channels in 30 packages to choose fromPriced between cable analog and digital, with more of what you want

The only TV service in Winnipeg that delivers all features, all channels, all digital to all TVs via a single set-top box

Set-top included at no chargeBasic TV $24.95

Bundled savings$10 to $15 off per month

Value PropositionValue Proposition

Great Additional FeaturesGreat Additional Features

Advanced Interactive Program GuideProgram listingsSearch capabilitiesFavourites listParental controlsRearrange channel order

One Touch RecordTape TV shows directly from your Guide, without ever touching your VCR

Advanced Interactive Program GuideProgram listingsSearch capabilitiesFavourites listParental controlsRearrange channel order

One Touch RecordTape TV shows directly from your Guide, without ever touching your VCR

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Great Additional FeaturesGreat Additional Features

TV Call DisplayShows name and number of callers on TV screenWorks with Call Display on telephoneIncludes full screen Call Log

TV Call DisplayShows name and number of callers on TV screenWorks with Call Display on telephoneIncludes full screen Call Log

795-8444

Plus More Cool StuffPlus More Cool Stuff

Web info applied in new ways for convenienceInternet-like experience on the TV for easy access from the family room

Instant weather informationLocal information on demandMTS CentreGames for TV

Web info applied in new ways for convenienceInternet-like experience on the TV for easy access from the family room

Instant weather informationLocal information on demandMTS CentreGames for TV

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Our Interactive Home Page …Our Interactive Home Page …

Video On Demand – Main PageVideo On Demand – Main Page

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MTS Centre On DemandMTS Centre On Demand

22% penetration in under 3 years22% penetration in under 3 years

MTS TV – SuccessMTS TV – Success

CUSTOMER BASECUSTOMER BASE

8,693

32,578

200

50,000 +

Jan. 2003 Dec. 2003 Dec. 2004 Nov. 15/05

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MTS TV – SuccessMTS TV – Success

REVENUESREVENUES

YTD ’05 – $16.0 MYTD YTD ’’05 05 –– $16.0 M$16.0 M

$2.3$3.1

$4.0

$5.9

$1.4

Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q3 2005

BundlingBundling

Advancing our competitive position

Enhanced value propositionBenefits:

Over 66% of TV customers buy MTS HSI

Upselling Call DisplayIncreased loyalty

Share of wallet

Opportunity for cost efficiencies

Advancing our competitive position

Enhanced value propositionBenefits:

Over 66% of TV customers buy MTS HSI

Upselling Call DisplayIncreased loyalty

Share of wallet

Opportunity for cost efficiencies

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CustomerUnprecedented high satisfaction resultsRave about picture qualityAppreciate channel selection choice Like on screen calling featuresLike having all things on all TVs through one set top boxValue program guide advanced capabilitiesLike bundles

CustomerUnprecedented high satisfaction resultsRave about picture qualityAppreciate channel selection choice Like on screen calling featuresLike having all things on all TVs through one set top boxValue program guide advanced capabilitiesLike bundles

Customer ResponseCustomer Response

The FutureThe Future

Advanced capabilities on roadmap – HD and PVRMore on-demand services, both video and Internet-like capabilitiesIncreasing bandwidth to 26 MbpsIncreasing cross line of business applicationsPartnering with programmers and content ownersMore locally relevant services

Advanced capabilities on roadmap – HD and PVRMore on-demand services, both video and Internet-like capabilitiesIncreasing bandwidth to 26 MbpsIncreasing cross line of business applicationsPartnering with programmers and content ownersMore locally relevant services

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