Montréal, July 21, 2008 – Quebecor Media Inc. is pleased to announce that it is the successful bidder on 17 operating licenses for third generation Advanced Wireless Services (AWS). The Company held the high bids on 40 MHz of spectrum across Québec, except the Eastern Ontario and Outaouais regions where it won 20 MHz. In some regions of the province of Québec, it picked up an additional 10 MHz and in Toronto, 10 MHz. The spectrum will allow Videotron, Quebecor Media's subsidiary, to offer, through its own network, wireless telephony service comparable to what is available in other world-leading countries in this field, including high-speed Internet, mobile television and several other advanced functions that can be accessed through the mobile devices sometimes referred to as smartphones.
"This is a key milestone in Quebecor Media's efforts to secure future growth opportunities in an industry that can be expected to experience exponential expansion in the years ahead," said Pierre Karl Péladeau, President and CEO of Quebecor Inc. "Following the introduction of our wireless telephone service two years ago and our subsequent efforts to convince regulatory authorities to set terms and conditions for the spectrum auction that would enable new players to enter the market, against strong resistance from the incumbents, we are now ready to implement our investment strategy, details of which will be announced as soon as Industry Canada has completed the licensing process. We are very satisfied that consumers across Canada will have the benefit of genuine competition and real choice, which means they will be able to enjoy the best services at the best price, as they do now with Videotron for cable television, Internet access and cable telephone service."
At the close of the auction, Quebecor Media's standing high bids totalled $554,549,000. Since the Licensing Framework for the Auction for Spectrum Licences for Advanced Wireless Services limits bidders' ability to freely discuss their intentions regarding the post-auction market structure during the 30 days following the end of the auction, Quebecor Media will reveal no additional information about its intentions respecting Advanced Wireless Services until later this summer.
"The outcome of the auction is good news for consumers," said Robert Dépatie, President and CEO of Videotron. "The prospect of increased competition in the near future will exert downward pressure on prices. We have much to do, particularly in terms of building out our advanced, state-of-the-art third generation network, but we already know that we will be able to raise the level of competition in Canada's wireless marketplace a notch, for the benefit of our businesses and consumers."
The award of operating licenses is subject to certain formalities, including payment by the successful bidders and the filing of ownership and control documentation.
In the meantime, the Company will not comment further on this matter.
Quebecor and Quebecor Media - Quebecor Inc. (TSX: QBR.A, QBR.B) is a holding company with a 54.7% interest in Quebecor Media, one of Canada's largest media groups. 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; Quebecor MediaPages, a publisher of print and online directories; 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 Englishand 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, and Le SuperClub Vidéotron ltée, a DVD and console game rental and retail chain.
