Manitoban incumbent telco MTS Allstream has reported net income of CAD52.9 million (USD48.0 million) for the first quarter of 2007, up 20% from CAD44 million in 1Q2006. Quarterly revenue slipped to CAD466.6 million from CAD480.4 million, with declines in its established business lines – including wholesale network services to Rogers Communications and AT&T Corp – outweighing double-digit growth in its newer initiatives, which include residential television service, wireless and broadband internet services. Revenue from ‘growth’ businesses was up by 9.7% year-on-year in the first quarter, the company said, and its ‘total customer connections’ – including voice, high speed internet, wireless, television and IP services – were up nearly 3%. The company, formally known as Manitoba Telecom Services, operates through a Consumer Markets division, which is focused on the residential and small business segments in Manitoba, and an Enterprise Solutions unit serving mainly medium to large businesses and carriers across the country. Under recent regulatory initiatives introduced to improve competitiveness, MTS has applied to the regulator, the CRTC, for local telephony price deregulation in Winnipeg. Its main competition on its home turf comes from Calgary-based Shaw Communications, which offers VoIP-based phone services through its Winnipeg cable operations, acquired several years ago via the purchase of Moffat Communications.