SaskTel sells ‘failed’ VoIP division

21 Oct 2009

Saskatchewan telecoms group SaskTel has agreed to sell its British Columbia-based Expansion Division, formerly known as Navigata, for a cut-price CAD1.5 million (USD1.45 million) to Toronto investor Peter Legault, after the company racked up CAD90.8 million losses since the telco acquired it in 2001, according to a report by the Regina Leader-Post. SaskTel’s plans to expand Navigata’s voice-over-internet protocol (VoIP) telephony business were scaled back and eventually cancelled as the service failed to attract anywhere near enough subscribers. SaskTel shut down its WebCall VoIP service in March, with just 130 customers at the time. The Expansion Division currently provides a range of services including voice, data and internet mainly to customers in British Columbia, including the provincial government. It has 121 employees (113 outside of Saskatchewan, and mostly in British Columbia). According to the report the new company will operate independently using the Navigata brand name.

Canada, SaskTel