TORONTO – Allstream announced today that it is taking Rogers Communications to court over the latter’s decision to transfer long distance traffic from the Allstream network to Rogers’ recently acquired Call-Net system.
Allstream, the national division of Manitoba Telecom Services wants “a declaration that Rogers is not entitled to transfer certain long distance traffic from Allstream to Call-Net Enterprises Inc.,” says today’s press release.
Rogers and Allstream entered into a long distance services agreement in November, 2004, the initial term of which runs until December, 2006. Allstream maintains that under the agreement, Rogers is obliged to purchase all of its requirements for certain long distance services from Allstream.
But, in July, 2005, Rogers bought Call-Net, and it’s easier and cheaper to use one’s own network to route LD traffic than someone else’s.
But by contract, Rogers isn’t allowed to do that yet, says Allstream. “In its application, Allstream alleges that Rogers has commenced and intends to transfer to Call-Net a significant portion of Rogers’ requirements for the long distance services that it currently acquires from Allstream,” says the release.
“Rogers and Allstream have been unable to agree on the interpretation of certain provisions in the agreement. In its application, Allstream states that most of the long distance services which Call-Net would provide to Rogers under the purported transfer are required to be purchased from Allstream.”
Allstream expects the application to be heard early in 2006.
