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UNITEL PROVIDING NET HOOK-UP

Unitel Communications of Toronto has teamed up with istar Internet of Ottawa to launch an Internet access service at the end of July. Unitel will finalize its advertising plans for the new operation in the next two to four weeks. It will also decide in that time which of its two Toronto agencies will work on the ads, MacLaren McCann or Young & Rubicam. IStar, Canada's largest Internet access provider, will bring the Net know-how to the service. Unitel will provide the technical expertise in handling phone and data lines. The Net service will be bundled with Unitel's discount long-distance telephone service. The two companies are also negotiating an arrangment with AT&T in the U.S. that would allow Unitel's Internet customers to use AT&T's Worldnet service outside of Canada. Intel subscribers would be able to get onto the Internet from anywhere in the U.S. or Mexico, via Worldnet, by dialing a local number. This service is expected to be available in about three months. Unitel is jointly owned by AT&T, the Bank of Nova Scotia, Toronto Dominion Bank and the Royal Bank of Canada. The new Internet operation will put Unitel into direct competition with Bell Canada's Sympatico service.

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