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Press Release dated May 29, 2003

Call-Net calls on the CRTC to jumpstart competition in the residential
telephone market

Canadas only national local service provider says residential competition is
in jeopardy in the absence of reforms en Français (TORONTO, ON), May 29, 2003  Call-Net Enterprises Inc., (TSX: FON,
FON.B), a national provider of residential and business telecommunications
services through its subsidiary Sprint Canada Inc., today filed an application
with the CRTC to promote greater competition in the local residential
telecommunications market. The proposals outlined in the application will
enable competitive telecommunication providers to achieve the size and scale
necessary to compete effectively to the benefit of all Canadian consumers.

Consumers want choice. Healthy competition is essential to offering consumers
what they want and deserve, including value for money and innovative bundles,
said Bill Linton, president and chief executive officer, Call-Net Enterprises.
While the CRTC has taken many steps to improve the regulatory framework since
the price cap decision a year ago, unless the Commission intervenes in a more
substantive way to jumpstart local competition, they will not be able to
implement the governments policy of healthy competition in all markets of the
telecommunications sector.

In Canada, competition is almost non-existent in the local residential market
and is declining in the long distance market. Almost six years after the
Commissions landmark decision permitting local competition, less than one per
cent of residential telephone subscribers obtain their local service from
competitive suppliers like Sprint Canada, far below the level necessary for the
consumer to reap the benefits of competition.

The telecommunications industry is characterized by economies of scale,
particularly the local residential market. The former monopolies enjoy the
benefit of economies of scale that derive from starting with 100% of the
market, added Linton. Competition in the residential local marketplace will
be sustainable once competitors gain sufficient scale to compete on a more
equal footing.

Call-Nets filing identifies several proposals necessary to remove the
remaining barriers to entry to the local service market that will allow
competitors to achieve the scale necessary to compete.

Improve customer education and access to information:



| |  |  | Initiate a public education program to explain to residential
customers how local competition works and to address the publics
concerns about such issues as local number portability, directory
listings and 9-1-1 services.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Allow consumer friendly transfer of customers to the competitive
telecommunication companies:



| |  |  | Order the former monopolies to stop discriminating against the new
entrants and their residential customers by providing them with
inferior service on cutover and restoration of local loops.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  |  | Reform the cutover processes for local residential customers by
streamlining the procedure and making it consumer-friendly.                                                                   

Extend the no contact period for the former monopolies customer winback
activity:



| |  |  | Extend the no-contact period with respect to customers who have
switched to a new entrants local exchange service, from a period of
three months to a period of one year after they have left the former
monopoly telephone company.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Reduce cost for unbundled local loops for a period of two years:



| |  |  | Order the former monopolies to bill new entrants for 50 per cent
of the incumbent local exchange carriers (ILEC) approved rate for
unbundled local loops used to provide local exchange service to
residential subscribers and direct the ILECs to recover the other 50
per cent of these charges from their deferral accounts.
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Call-Nets application was developed, in part, in response to Industry Minister
Allan Rocks comment in March 2003 that local competition is virtually
non-existent in all but Canadas largest cities. He called upon the CRTC to
consider additional measures to promote competition beyond major urban centres
so that all Canadians can enjoy the benefits of healthy competition.

Similarly in November 2002, Charles Dalfen, chairman of the CRTC in an address
to the International Institute of Communications (Canadian Chapter) commented
that the existing state of competition in Canada is far below the level
necessary for the public to reap the benefits of competition and too low to
alleviate a growing concern about the re-emergence of monopolization.

The former monopolies stranglehold on market share will not improve under the
existing regulatory framework, added Linton. Additional reform is necessary
or it will take competitors another 60 years to gain even a 10 per cent market
share. Evolutionary changes are simply not enough.

Call-Net entered the local service market in 1999. It remains the only national
provider of local residential service, offering local service to residential
consumers in nine of Canadas most populous metropolitan markets, in addition
to its long distance and Internet access service.





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To date, the Company has invested over $500 million in establishing a
competitive local service offer in Canada.
A copy of Call-Nets application to the CRTC is available on the Companys web
site at www.callnet.ca.

About Call-Net Enterprises Inc.

Call-Net Enterprises Inc. is a leading Canadian integrated communications
solutions provider of local and long distance voice services as well as data,
networking solutions and online services. The Company provides services to
residential consumers and businesses primarily through its wholly owned
subsidiary, Sprint Canada Inc. Call-Net Enterprises is headquartered in
Toronto, owns and operates an extensive national fibre network and has over 134
co-locations in nine Canadian metropolitan markets. For more information, visit
the Companys web sites at www.callnet.ca and www.sprint.ca.

Note for Investors:

This news release may include statements about expected future events and/or
financial results that are forward-looking in nature and subject to risks and
uncertainties. For those statements, we claim the protection of the safe
harbour for forward-looking statements provisions contained in the Private
Securities Litigation Reform Act of 1995. The company cautions that actual
performance will be affected by a number of factors, many of which are beyond
its control. Future events and results may vary substantially from what the
company currently foresees. Discussion of the various factors that may affect
future results is contained in the companys recent filings with the Securities
and Exchange Commission, the Ontario Securities Commission and SEDAR.

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|For further information                                                                         |  |                                                                                                          
|Media contact:
Karen OLeary 
Corporate Communications
(416) 718-6445
koleary.sprint-canada.com |  | Investor Relations contact:
Farzana Giga
Investor Relations
(416) 718-6251
farzana.giga@sprint-canada.com