CNCP Telecommunications

CNCP Telecommunications

Company type	Joint venture
Industry	Telecommunications
Founded	1967
Founder	Canadian National Railway, Canadian Pacific Railway
Defunct	1990
Fate	Rebranded as Unitel Communications after acquisition by Rogers Communications
Headquarters	Etobicoke , Canada
Area served	Canada
Key people	J. G. Sutherland (president and CEO from 1981)
Products	Telegraph, Telex, Fax and electronic data services, Long-distance voice and data transmission
Parent	Canadian National Railway, Canadian Pacific Railway (until 1988), Rogers Communications (from 1984)

CNCP Telecommunications (Canadian National-Canadian Pacific Telecommunications) functioned as a telecommunications provider from 1967 until 1990, originating from an electrical telegraph service.

Established as a collaborative enterprise between Canadian National Railway and Canadian Pacific Railway in response to the decreasing demand for telegraph services, CNCP unified their respective networks to enhance operational efficiency. The company broadened its reach by implementing a Montreal-to-Vancouver microwave relay system supporting both voice and data transmissions, which was subsequently upgraded to incorporate fibre optic technology.

In 1984, Rogers Communications acquired a controlling interest, achieving full ownership by 1988. By 1990, Rogers integrated the network entirely and rebranded it as Unitel Communications, aiming to compete in the commercial long-distance telecommunications sector. This business unit changed hands several times between 2002 and 2012 before ultimately becoming Allstream.

Origins

Beginning in 1967, the once separate telegraph systems of two railway companies (CN Telegraph and CPR Telegraphs)—which had collaborated since the 1930s—were merged under one corporate structure. In 1968, CNCP partnered with TCTS (later known as Telecom Canada) to propose a jointly funded Canadian telecommunications satellite project involving federal government support.

In 1973, TelePost was launched as a joint initiative between CNCP and Canada Post, allowing users to compose electronic messages that were delivered by mail the following day. By 1971, telegraph operators located west of Thunder Bay had retired, signaling the diminishing era of traditional telegraphy.

That same year, CNCP introduced the Infodat service, which utilized time-division multiplexing and digital transmission techniques to cut teletype and computer data transfer expenses by as much as 90%. In 1974, the Canadian Transport Commission authorized an 11% increase in wholesale telegram rates but declined an additional proposed rise of 9%.

Early Telecommunications Developments

In 1978, CNCP alerted the Canadian Radio-television and Telecommunications Commission (CRTC) that it might be forced to shut down without interconnection agreements with Bell Canada and other telephone companies. Bell argued that such interconnections would result in increased rates and require government subsidies.

The CRTC’s Telecom Decision 1979-11 permitted CNCP to connect with Bell’s network, marking CNCP’s transition into an early-stage telecommunications operator. Although Bell Canada appealed this ruling, the government ultimately upheld the decision.

Facing reduced telegram traffic and evolving technology, CNCP closed seven telegraph offices nationwide in early 1980. That year also saw the debut of Infotex—a service employing specialized word processors linked through the Bell-CNCP network to accelerate document transmission. Additionally, Telenews was piloted with 500 clients, delivering hourly news updates from The Canadian Press via Telex at a fixed rate.

Addressing emerging pay television opportunities, CNCP leased satellite bandwidth to Canadian Satellite Network Inc. (CSN), a coalition of cable providers led by Kevin Shea. CSN broadcast programming blocks from TVOntario, including Galaxie (children’s programming) and Vista (music and science content), and had earlier transmitted Canadian House of Commons sessions since 1979. By 1992, these parliamentary broadcasts returned to cable operators and evolved into today’s CPAC.

Mergers

Prior to 1981, CNCP functioned financially as two distinct entities, CN and CP. In January of that year, their telecommunications divisions were consolidated. After receiving approval from the CRTC, J. G. Sutherland was named president and CEO.

In early 1981, CNCP partnered with Canada Post to introduce Intelpost, a fax service operating both nationally and internationally. This system allowed documents with graphics to be sent from key postal offices in major urban centers. Domestic transmissions utilized a microwave network, while international communications depended on satellites.

The 1981 Canada Post strike led to a surge in long-distance voice, data, and fax usage among telecommunications providers, partially compensating for postal service interruptions. CNCP reported a 25% increase in telegram sales and a 67% rise in Telex equipment sales during July—a period usually characterized by low activity.

By 1984, Rogers Communications acquired a 40% interest in CNCP, with CP purchasing CN’s share. That April, the company refreshed its logo by removing the term Telecommunications.

Although the CRTC limited competition in voice services, CNCP sought tariff adjustments to introduce electronic mail and office communication offerings. Nevertheless, mass-market communications service approval was denied by the CRTC in August 1985.

In April 1986, CNCP installed a fibre optic cable connecting Toronto and Montreal using 12 strands, anticipating a 30–40% decrease in long-distance telephone expenses. The Hudson's Bay Company became the initial major client utilizing this network for transmitting large volumes of data.

By mid-1987, CNCP petitioned the CRTC to require Bell Canada to provide interconnections for calls destined for the United States under Telecom Decision 1979-11. A Toronto-based customer requested ten foreign exchange lines to Sprint’s Buffalo switch. CNCP also sought regulatory relief for its services at this time. Additionally, CNCP completed Dialcom—a digital microwave link spanning from Toronto to Calgary and Edmonton—that facilitated email exchanges across different hardware platforms.

Divestment and Unitel rebranding

In December 1988, CN sold its stake in the network for $235 million as its partnership with CP concluded. Subsequently, Rogers rebranded the company as Unitel Communications Incorporated in May 1990.

That same month, Unitel applied for tariffs covering DS-1 telecom services (ranging from 256 kbit/s to 768 kbit/s) and DS-2 services at 6.312 Mbit/s over T2 lines, marketing these under the name Mach III. A T1 line supports up to 24 DS1 voice or data channels at 1.544 Mbit/s, whereas a T2 line accommodates up to 96 DS2 channels at 6.312 Mbit/s.

Eventually, Unitel was acquired by AT&T Canada, which later became Allstream, now part of Zayo Group.

Services

CNCP provided a wide range of electronic data offerings throughout Canada, including:

• National and international connectivity with 34,000 teleprinters (Telex)
• Processing financial transactions related to money orders
• Fax and electronic data services supporting Transport Canada, the RCMP, and the Canadian Armed Forces
• Relay of RTTY messages to northern regions of Canada
• Wire photo transmissions sourced from The Canadian Press and Southam News Services
• Voice news reports supplied by Broadcast News
• Nationwide and global telegram transmission via TelePost

CNCP Facsroute

Around 1988, CNCP FacsRoute emerged as a Canadian fax telecommunications system. Its initial offering was a store-and-forward fax service utilizing an X.25 data network, which brought in $2 million in revenue and served approximately 2,000 subscribers.

After receiving regulatory clearance to launch a real-time FacsRoute service, the company experienced rapid growth, achieving $40 million in revenue and expanding its subscriber base to 50,000 within nine months. This growth allowed it to secure a substantial portion of Canada's 300,000 fax machines. The real-time FacsRoute operated through a 64 kbit/s bypass of the GSTN using "voice busters," a technology that terminated dialed connections after accumulating 70 seconds of voice per call. Although this approach was innovative yet somewhat limiting, it resulted in a twentyfold increase in business compared to the previous service.

Further reading

• Babe, Robert E. (1993). Telecommunications in Canada: Technology, Industry, and Government. University of Toronto. ISBN 0-8020-6738-7
• Rideout, Vanda (2003). Continentalizing Canadian Telecommunications: The Politics of Regulatory Reform. McGill-Queens. ISBN 9780773524255

See also

• MCI
• Western Union
• AT&T
• Bell Canada