WINNIPEG – Pierre Blouin will step down from atop MTS Allstream later this year, and the search for his replacement is already underway, the company said Tuesday in a surprise announcement.
Blouin, pictured, was named CEO in December 2005. Under his watch, MTS expanded its fibre-to-the-home network in 14 communities in Manitoba, grew Allstream's national network of connected buildings to over 3,000, acquired EPIC Information Solutions, and invested over $50 million to build a state-of-the-art commercial data centre in Winnipeg, enabling a new and lucrative portfolio of IT services for MTS Allstream for years to come, according to the company’s news release.
"Pierre Blouin has done an exemplary job as CEO of MTS Allstream during a decade marked by significant change and intense competition across both the MTS and Allstream businesses," said board chair David Leith, in the release. "Under Pierre's leadership, the company transformed Allstream from a pure legacy telecom provider into a focused and successful national IP provider with a significantly reduced cost structure and industry-leading customer satisfaction levels.
“At MTS, Pierre and the management team have consistently delivered some of the best operating metrics in North America, including the highest market share and profit margins for an incumbent telecom provider despite operating in Canada's most competitive telecom market. He has also successfully addressed the company's legacy pension funding issues, maintained a strong balance sheet and put in place a highly capable management team to lead the company forward. We appreciate Pierre's contributions and his many years of service. He has positioned the company for continued success, and we wish him all the best in his future pursuits."
Blouin has agreed to remain with the company until his replacement has been appointed and to assist in the transition process. MTS Allstream said that the search will consider both internal and external candidates.
"I am very proud of what we have accomplished over the past decade, and felt that this was the right time to transition to new leadership”, said Blouin. “I am grateful for the support and dedication of our Board, management team and MTS Allstream's outstanding employees, and I leave with full confidence in the company's future success. I remain fully engaged in the business and will work to ensure a seamless leadership transition."
Canaccord Genuity managing director/ head of research Dvai Ghose speculated that the move means “that a near term sale of Allstream or the incumbent division is unlikely”, and that Blouin’s departure “may have a negative impact on investor sentiment”.
Noting that MTS’ incumbent division has, under Blouin, faced “aggressive pricing from all three national wireless incumbents in Manitoba who knew that MTS could not retaliate in their core wireless markets”, Ghose praised Blouin’s track record.
“MTS has maintained sector leading wireless and wireline market share in Manitoba, is enjoying the best broadband subscriber growth of any major Canadian telco or cableco and is reporting the most modest telco residential access line loss”, he wrote in a note to investors. “We will be sad to see Blouin leave.”
