LONG DISTANCE COMPETITION ANNOUNCED FOR SASKATCHEWAN

Released on September 9, 1996

Intergovernmental Affairs Minister Ned Shillington today announced that
the provincial government has reached tentative agreements with several
long distance service carriers to begin providing long distance service
in Saskatchewan in mid-November.

"As a result of these negotiated agreements between SaskTel and other
long distance carriers, Saskatchewan residents will see a number of new
long distance companies beginning to advertise a wide range of services
very soon," Shillington said.

Beginning in November a new class of long distance companies, called
facilities-based carriers, such as Sprint, Unitel, ACC and fONOROLA
will have the opportunity to provide long distance service in
Saskatchewan. Previously rebillers were allowed access to the
Saskatchewan market in February, 1996.

"These agreements were fair to all parties and I am pleased to report
that the resulting agreements followed the principles established by
the Saskatchewan government for the introduction of competition."

The principles the government set down as the basis for negotiation
were:

equivalent choice and quality of service for urban and rural
customers;
continued subsidization of basic local service;
full cost compensation by competitors; and,
elimination of needless duplication of infrastructure.

"We believe Saskatchewan people should have as wide a range of choices
available to them as the market can provide. However, we also believe
these choices must be offered in an environment that allows for
universal and affordable telephone services to all Saskatchewan
residents," Shillington said.

Shillington said the provincial government first announced the
introduction of competition into the long distance telephone market in
December, 1995. That announcement provided for rebillers to be allowed
access to the Saskatchewan long distance market in February, while
facilities-based carriers would be allowed access in the fall of 1996.
With the negotiation of these agreements, this process is now complete
in a manner that is consistent with the timelines set out in the
original announcement.

-30-

For more information, contact:

Robert Hersche
Intergovernmental Affairs
Regina
Phone: (306) 787-8880