2nd Long-Distance Carrier in Canada Closer to Launch

The battle over Canada’s lucrative long-distance telephone market will heat up today when Unitel Communications Inc. is expected to unveil its new service, which will challenge former monopoly carrier Bell Canada.

Unitel, a partnership between Canadian Pacific and Rogers Communications Inc., announced that it intended to jump into the business after Canada’s telephone regulator--the Radio-television and Telecommunications Commission--ended Bell’s 100-year monopoly.

At stake is a $6.15-billion business. Girding for the battle, Bell and its family of regional phone companies on Thursday announced a linkup with U.S. carrier MCI Communications Corp. to develop technology.

Stentor, the Canadian industry group led by Bell, said it will join MCI to develop technology platforms and data-based network services. Each will contribute between $150 million and $200 million to fund initial development, and the companies will share costs.

The alliance will offer Stentor access to new technology, vital to a carrier some people have criticized for its backward attitude toward new services, analysts said.

“I think it’s a superb alliance. It’s a great thing for Stentor to have done,” said John Drolet, telecommunications analyst for Levesque Beaubien Geoffrion.

Competitor Unitel is expected today to announce the rates and long-distance services it will launch.

“We’re launching much earlier that we planned because we were given the go-ahead,” Unitel Vice President Jan Innes said.