Videotron continues to contribute to Québec's new economy and technological future
Strong momentum in AWS rollout
AWS launch planned for summer 2010
Reiterated commitment to finance AWS rollout from internal and existing committed resources
Montreal, December 23, 2009 – Videotron today announced an update on its highly anticipated Advanced Wireless Services (AWS) rollout, and on its AWS objectives for 2010.
Videotron is proud to announce that it has reached a number of major milestones in the rollout of its 3.75G wireless infrastructure project over the course of 2009. Videotron's new wireless service offering is an integral part of its strategic vision for its combined platform and quadruple play technology offering. In addition to supporting enhanced content distribution and new business partnerships, Videotron further believes that the rollout and launch of its AWS will further increase Videotron's contribution to Québec's new economy and technological future. Videotron continues to optimize the project plans and phases to reflect the latest technologies, the best quality service and coverage, and rapidly changing market conditions, with the objective of additional launch-date services and applications, maximized coverage and accelerated penetration of Videotron's AWS offering.
We intend to launch a service that meets the highest quality standards that all customers have come to expect from Videotron, said Robert Dépatie, President and CEO of Videotron. Videotron is determined to deliver on its promise of an unparalleled customer experience, to reflect our commitment to maintain our technological leadership and to offer what is best in the marketplace.
Update on AWS Build-Out
The build-out of Videotron's AWS project - a greenfield investment - has gained significant momentum since the acquisition of spectrum in the third quarter of 2008. As of December 21, 2009, all services and switching platforms have been installed and are operational, and interconnections have been established with Videotron's existing fibre network, underpinning the delivery of a unique, integrated customer experience. Multi-phase reliability testing of these platforms is currently underway. Videotron has successfully entered into several site access agreements or had tower-sharing requests accepted in respect of nearly 60% of all antenna sites required for the AWS launch. Furthermore, the equipment for most of the contracted sites has been installed or is in the process of being installed.
Despite the continuing lack of clear support from governmental authorities that would expedite increased competition in this field, Videotron is maintaining the pace of its network build-out, added Mr. Dépatie.
AWS Launch Targeted for Summer 2010
Videotron still anticipates launching its AWS offering in the summer of 2010, when its new High Speed Packet Access (HSPA) network is expected to be operational. The optimization of Videotron's AWS build-out and launch project over the past year has evolved, resulting in a corresponding evolution of the project's investment profile as compared to Videotron's initial estimates. Nevertheless, Videotron believes that this will not have a material impact on Videotron's results of operations or financial position, because Videotron anticipates that its optimized AWS project will further benefit its penetration, revenue generation and cash conversion objectives. As previously stated, Videotron still intends to finance future AWS project disbursements from cash on hand, funds generated by operations and, if necessary, available unused lines of credit.
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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 September 30, 2009, Videotron was serving 1,759,700 cable television customers in Québec, including 1,042,400 subscribers to illico Digital TV. Videotron is the Québec leader in high-speed Internet access, with 1,145,400 subscribers to its cable modem service as of September 30, 2009. As of the same date, Videotron had activated 79,800 handsets on its wireless telephone service and was providing cable telephone service to 979,100 Québec households and organizations. For the fourth consecutive year, Videotron has been named Québec's most respected telecommunications company by Commerce magazine, based on a Léger Marketing survey.
Quebecor Inc. (TSX: QBR.A, QBR.B) is a holding company with a 54.7% interest in Quebecor Media Inc, one of Canada's largest media groups. Quebecor Media owns operating companies in numerous media related businesses: Videotron Ltd., an integrated communications company engaged in cable television, interactive multimedia development, Internet access services, cable telephony and wireless telephone service; Sun Media Corporation, the largest publisher of newspapers in Canada; Canoe Inc., operator of a network of English and French language Internet properties in Canada; Quebecor Media Network, provider of flyer printing and distribution services; 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; 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 publishers and distributors Sogides Group Inc. and CEC Publishing 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.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and forward-looking information within the meaning of National Instrument 51-102 Continuous Disclosure Obligations in Canada (collectively, forward-looking statements). All statements other than statements of historical facts included in this press release, including statements regarding our prospects, plans, financial position and business strategy may constitute forward-looking statements. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industries in which we operate as well as beliefs and assumptions made by our management. Such statements include, in particular, statements about our plans, prospects, financial position and business strategies. Words such as may, will, expect, continue, intend, estimate, anticipate, plan, foresee, believe or seek or the negatives of these terms or variations of them or similar terminology are intended to identify such forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements, by their nature, involve risks and uncertainties and are not guarantees of future performance. Such statements are also subject to assumptions concerning, among other things: our anticipated business strategies; anticipated trends in our business; and our ability to continue to control costs. We can give no assurance that these estimates and expectations will prove to have been correct. Actual outcomes and results may, and often do, differ from what is expressed, implied or projected in such forward-looking statements, and such differences may be material. Some important factors that could cause actual results to differ materially from those expressed in these forward-looking statements include, but are not limited to: our ability to successfully build and deploy our new wireless services network on the timeline we are targeting and to implement successfully our strategy of becoming a facilities-based wireless provider; general economic, financial or market conditions; the intensity of competitive activity in the industries in which we operate, including competition from alternative means of programs and content transmission; unanticipated higher capital spending required to address continued development of competitive alternative technologies or the inability to obtain additional capital to continue the development of our business; our ability to implement successfully our business and operating strategies and manage our growth and expansion; disruptions to the network through which we provide our digital television, Internet access and telephony services, and our ability to protect such services from piracy; labour disputes or strikes; changes in our ability to obtain services and equipment critical to our operations; changes in laws and regulations, or in their interpretations, which could result, among other things, in the loss (or reduction in value) of our licenses or markets or in an increase in competition, compliance costs or capital expenditures; our substantial indebtedness, the tightening of credit markets, and the restrictions on our business imposed by the terms of our debt; and interest rate fluctuations that affect a portion of our interest payment requirements on long-term debt. We caution you that the above list of cautionary statements is not exhaustive. These and other factors could cause actual results to differ materially from our expectations expressed in the forward-looking statements included in this press release, and you are encouraged to read the section entitled Risk Factors of Videotron's annual report on Form 20-F for the year ended December 31, 2008 as well as the section entitled Risks and Uncertainties in the Management Discussion and Analysis report for the year ended December 31, 2008 prepared by Quebecor Inc. for further details and descriptions of these and other factors. Each of these forward-looking statements speaks only as of the date of this offering memorandum. We will not update these statements unless applicable securities laws require us to do so.
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