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Videotron cable telephone service: 636,000 households after 3 years

Montréal, Friday, January 25, 2008 – Three years to the day after its launch, Videotron's cable telephone service continues to register exponential growth, logging a record increase in 2007. Meanwhile, all other Videotron products also recorded strong subscriber growth (see p. 2).

At year end, there were more than 636,000 residential and business subscribers to Videotron cable telephone service, a year-over-year increase of 238,500 or 60%. In 2006, there was a net increase of nearly 235,000 in the number of consumers who opted for the advantageous alternative, deciding to say goodbye to long-distance charges on calls between Videotron subscribers. Between October 1 and December 31, 2007, 62,500 Québec households chose Videotron cable telephone service, compared with 53,700 in the same period of 2006.

Real competition
"We are very proud of the resounding success of our cable telephone service over the last three years," said Robert Dépatie, President and Chief Executive Officer of Videotron. "When we introduced this alternative at the beginning of 2005, we became the first company to create real competition in the both the local and long-distance markets. The result was a decrease in prices that significantly benefited consumers."

Videotron's cable telephone service was initially launched on Montréal's South Shore and then gradually rolled out to Videotron's entire service area. In 2006, Videotron Business Solutions introduced its cable telephone service for small businesses with 1 or 2 lines. Last December, it enhanced the product by introducing a 4-line service.

New applications
The year 2007 also saw the roll-out of new applications for the fast-changing digital telephony market. In the fall, Videotron launched its soft phone, which makes it easier for customers to manage their calls and all their communications. Video phone functionality will be added in the near future.

A popular, leading-edge product
"Even after the deregulation of the local telephony market ordered by regulatory authorities, the popularity of Videotron's cable telephone service did not wane — on the contrary," said Mr. Dépatie. "It is an indication that we have a functional product and a highly reliable, robust network that delivers the goods." According to a Léger Marketing survey conducted in September 2007, the customer satisfaction rate with the service is 95%.

"The success of all our services in 2007 shows that Quebecers recognize our commitment to deliver the best possible customer experience, day after day."

Success on all fronts
All of Videotron products — cable telephone service, digital television, Internet access and wireless telephone service — recorded strong growth in 2007.

As of December 31, 2007, Videotron's cable television service had 1,638,000 customers, a year-over-year increase of 65,700 (including an increase of 21,800 in the fourth quarter). The customer base for illico Digital TV grew by 47,900 in the fourth quarter of 2007 alone, bringing the total to 768,000, for an annual increase of 144,500 or 23%. In 2006, the number of illico subscribers increased by 38,400 during the fourth quarter and 149,000 for the entire year.

At the end of 2007, Videotron's cable Internet access services had 933,000 customers, a net increase of 34,000 in the fourth quarter alone, compared with 37,500 in the same quarter of 2006. Over the year 2007, the subscriber base for the fastest and most reliable Internet access service available grew by more than 141,000, for an annual increase of 18%, compared with 154,000 in 2006.

Videotron had activated 45,700 phones on its wireless telephone service as of the end of the fourth quarter, a quarter-over-quarter increase of 7,000 and a year-over-year increase of 33,900.

Videotron Ltd. (www.videotron.com), a wholly owned subsidiary of Quebecor Media Inc., is an integrated communications company engaged in cable television, interactive multimedia development, Internet access services, cable telephony and wireless telephone service. Videotron is a leader in new technologies with its illico interactive television system and its broadband network, which supports high-speed cable Internet access, analog and digital cable television, and other services. As of December 31, 2007, Videotron was serving 1,638,000 cable television customers in Québec, including 768,000 illico subscribers. Videotron is the Québec leader in high-speed Internet access, with 933,000 subscribers to its cable modem service. As of December 31, 2007, Videotron had activated 45,700 phones on its wireless telephone service and was providing cable telephone service to nearly 636,000 Québec households and organizations. 


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