MONTRÉAL, October 22, 2008 – Following up on the commitment they made in the spring of 2007, Quebecor Media and Videotron confirmed today that they will invest between $800 million and $1 billion over four years to roll out their own advanced wireless network. Videotron plans to bring consumers and small businesses an offering of advanced wireless telecommunications services that is unprecedented in Québec, based on effective, reliable technology, diverse and convergent content and unambiguous business policies.
The new High Speed Packet Access (HSPA) network should be up and running in 12 to 18 months. The projected expenditure includes the cost of acquiring spectrum and operating licences, building out the network and initial operating costs. The project will create approximately 1,000 jobs at Videotron over the next two years.
A milestone for Quebecor Media and Videotron
"This project is of more than technical interest; it is a watershed event in the history of Quebecor Media and Videotron," said Pierre Karl Péladeau, President and Chief Executive Officer of Quebecor inc. "Today, mobile telecommunications have become an instrument of economic, cultural and social development. So what we are announcing is not just the building of a new telecommunications network; with this network, we are laying the foundations of a new business model for Quebecor Media and all its subsidiaries. The creativity of the members of the Quebecor Media family will be our chief asset in facing the challenges of the future."
An unprecedented offering in Québec
"True to its track record of bringing its customers the best in technology and entertainment, Videotron intends to launch an unprecedented offering of advanced wireless telecommunications services on the Québec market," said Robert Dépatie, President and Chief Executive Officer of Videotron. "It will be economical, simple and transparent, which is to say there will be no hidden fees. I can say without hesitation that at this time no other Canadian company is in a position to go as far as Videotron when it comes to integrating technology and content, for the benefit of local consumers and small businesses." "There is a considerable advantage to being a new market entrant in this industry: our network will be designed using the latest technology and it will be readily upgradeable, meaning a fast transition to 4G," said Mr. Dépatie. "We will therefore be equipped to offer consumers an unparalleled customer experience, with wireless Internet services at speeds of up to 3 mbps across Videotron's service area."
Major impact on job creation
Construction of the network will have a significant impact on job creation in Québec. An estimated 1,000 jobs will be created at Videotron and hundreds of others at suppliers.
A hundred experts will be added to the Videotron engineering department's current staff of 800 professionals for the purpose of designing, supervising and controlling this network.
A step forward for Québec and Canada
Pierre Karl Péladeau expressed satisfaction about the upcoming construction of a new telecommunications network: "Our goal will be to make sure that Quebecers and Canadians soon have access to services that are standard fare in other countries and are drivers of economic growth and social vitality. We therefore plan to make a massive investment to support the development of Québec voices and mobile content on all the new digital platforms, content which will be a valuable economic and cultural asset for Québec."
Experienced supplier chosen
Videotron has chosen Nokia Siemens Networks (NSN) as its supplier for the next five years. NSN is providing us with an advanced "Generation 3.75" solution that uses base stations that are smaller and faster than conventional facilities, more flexible to install and consume less energy. This solution also supports remote network management capabilities which will let Videotron add or move bandwidth without sending personnel to the site.
Quebecor Media Inc. is a subsidiary of Quebecor Inc. (TSX: QBR.A, QBR.B), a communications company with operations in North America, Europe and Asia. Quebecor Media owns operating companies in numerous media-related businesses: Videotron Ltd., the largest cable operator in Québec and a major Internet Service Provider and provider of telephone and business telecommunications services; Sun Media Corporation, the largest publisher of newspapers in Canada; TVA Group Inc., operator of the largest French-language over-the-air television network in Québec, a number of specialty channels, and the English-language over-the-air station Sun TV; Canoe Inc., operator of a network of English- and French-language Internet properties in Canada; Nurun Inc., a major interactive technologies and communications agency with offices in Canada, the United States, Europe and Asia; magazine publisher TVA Publishing Inc.; book publisher and distributor Quebecor Media Book Group Inc.; Archambault Group Inc. and TVA Films, companies engaged in the production, distribution and retailing of cultural products; Le SuperClub Vidéotron ltée, a DVD and console game rental and retail chain; and Quebecor MediaPages, publisher of print and online directories.
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 June 30, 2008, Videotron was serving 1,660,000 cable television customers in Québec, including 830,500 illico Digital TV subscribers. As of the same date, Videotron had activated 54,600 lines on its wireless telephone service and was providing cable telephone service to approximately 742,900 Québec households and organizations. Videotron is the Québec leader in high-speed Internet access, with 1,000,000 subscribers to its cable modem service as of July 18, 2008.
Media are invited to visit Videotron's dedicated web page for the 3G project for images, video and the podcast of the press conference, as well as for the press kit distributed at the press conference: www.videotron.com/wirelessnetwork
