Stentor Communications to Invest $8-10 Billion to Upgrade Canadian Telephone Networks

Strategic Insights -

Stentor Communications, an alliance of Canada's nine major telephone companies, is launching a 10-year project to upgrade local telephone networks across the country. The ambitious plan involves an investment of between $8 billion and $10 billion Canadian to provide broadband capability and multimedia services. As part of this initiative, Stentor plans to spend approximately $4 billion on fiber optics equipment, making it the largest fiber deployment in the company's history.

Key Takeaways:

  • The 10-year project aims to provide broadband capability and multimedia services across Canada, with an investment of $8-10 billion Canadian.
  • Stentor plans to spend $4 billion on fiber optics equipment, making it the largest fiber deployment in the company's history.
  • The company has already strung fiber to about 3% of its customers and plans to reach 80% within 10 years.
  • The "Beacon Initiative" includes a $500 million enhancement program for national connectivity, creation of a new company for multimedia services, and a potential $50 million venture capital fund.
  • The initial focus of the plan will be on business, healthcare, and residential applications.
  • Stentor is in discussions with potential suppliers, including Northern Telecom, Reliance Comm/Tec, and Raynet Corp.

Statistics:

  • $8-10 billion Canadian investment for the 10-year project.
  • $4 billion investment for fiber optics equipment.
  • 3% of customers currently with fiber connections.
  • 80% of customers expected to have fiber connections within 10 years.
  • $500 million enhancement program for national connectivity.
  • Potential $50 million venture capital fund.

Sources:

  • FON, Nov. 22, 1993, pp. 1-4
  • FON, Feb. 7, 1994, pp. 1-2
  • Stentor Communications

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