IslandTel traces its history to The Telephone Company of Prince Edward Island which was founded in 1885.
In 1910 Halifax, Nova Scotia-based Maritime Telephone and Telegraph Company (MT&T) laid a submarine telephone cable from Wood Islands, Prince Edward Island, to Pictou, Nova Scotia; it entered service on January 1, 1911.
The Telephone Company of Prince Edward Island suffered severe financial hardship as a result of a fire on September 5, 1911, that destroyed a newly installed switchboard and caused heavy damage to its central office and headquarters in Charlottetown.
By December 1, 1911, a controlling interest in the company was bought by MT&T, thus establishing a partnership of shared telephone communication with Nova Scotia that endures to this day (see Area codes 902 and 782).
In 1998, the company was renamed Island Telecom Inc. to reflect the growing diversity of its business areas.