Videotron launches wireless telephone service in Montréal

October 16, 2006 - Press Release

Montréal, October 17, 2006 - Videotron is continuing the roll-out of its wireless telephone service that started earlier in the province. And now, it's up to the people of the greater Montréal area to take advantage of it all. Videotron has also decided to offer consumers the product more directly and effectively through its shopping mall kiosks and a number of SuperClub Vidéotron locations. The addition of a fifth region, after Québec City, Gatineau, Sherbrooke and Chicoutimi, to the wireless service area completes the roll-out, brings one-stop shopping for telecom services to the Montréal area, and strengthens Videotron's customer experience leadership.

"The addition of wireless telephone service means consumers throughout the greater Montréal area can now enjoy the full benefits of being a Videotron customer," said Robert Dépatie, President and Chief Executive Officer of Videotron. "New points of sale have been added in many areas of Québec and consumers can also sign up for Videotron wireless service on videotron.com or by calling our Customer Service department. Most people now have the opportunity to enjoy the best possible customer experience and enjoy the advantages of Videotron's bundled service packages."

Strong customer satisfaction rate for the only real one-stop shop for telecom services

The move strengthens Videotron's comprehensive one-stop shopping offering. One-stop shopping is part of the concrete vision that underlies both Videotron's strategic plan and the benefits it offer consumers, who respond positively to the opportunity to obtain an increasingly complete line of services from a single telecom provider. Videotron is the only industry player to offer true one-stop shopping, with a single contact point for customer service and technical service, one visit from a technician to install everything, and one monthly bill for all services, regardless of whether the customer subscribes to one service or all four. According to a recent Léger Marketing survey, the rate of customer satisfaction with Videotron's products and services is 94%. Videotron is building on its track record and entering the wireless market with a commitment to continue delivering this outstanding service.

More points of sale to reach more consumers
In recent years, Videotron has leveraged its retail locations to reach consumers where they shop. In 2006, Videotron expanded its network of points of sale to maximize its presence in the telecom market across its service area, for both wireless telephone service and other Videotron products. It is now possible to obtain all locally available Videotron products at Videotron kiosks in major shopping malls and at some SuperClub Vidéotron locations. A list is available at videotron.com/services/detaillant.do.

4-product package offers consumers and business people unparalleled value
The distinctive features of Videotron's wireless service include simplicity, user-friendly packages and the advantages of bundling. The 4-product package priced at $89.95 (all fees included*), which comprises wireless service with 300 any-time minutes (day, evening and weekend), Basic Internet service, residential cable telephone service and illico Digital TV, makes the full Videotron experience readily available to all.

Business customers will also find it highly advantageous to take Videotron's wireless service and get all their telecom services from a single provider. For $68.95 per month, business people can get 300 any-time minutes plus Basic Internet service. For $83.95 per month, business customers will get three products: wireless service with 300 minutes of airtime, Basic Internet service and business cable telephone service.

Making life simpler
Individual and time-sharing plans are available to both consumers and businesses. Individual packages include 50, 300, 500 or 700 minutes of airtime. The time-sharing plan lets customers split 900 minutes among up to five people of their choice (e.g. relatives, friends, employees).

"Customers will no longer have to adjust their lifestyles to fit their wireless plan," said Mr. Dépatie. "They will be able to use their cell phones at any time of day or night, without having to worry about the time of day. That is what simplicity and user-friendliness are all about at Videotron. And, by combining wireless telephone service with Videotron's other offerings; consumers can enjoy quality products and advantageous discounts on their bills. And they can simplify their lives through one-stop shopping at Videotron: we are the only industry player that offers customers one customer service point, one visit from the technician, one bill for all their services."

Are 300 minutes enough?
With growing cell phone use, 300 minutes may seem insufficient to some. However, a recent Léger Marketing study, commissioned by Videotron, found that Québec subscribers to mobile services use their wireless phones an average of 207 minutes per month. Videotron's standard package therefore includes enough minutes to cover more than the average rate of use. Customers can use the 300 minutes at any time of day or night, without time restrictions. Moreover, Videotron is applying the same flexible, customizable approach to wireless packages as it does to its other products. Customers can add blocks of time in order to build a package tailored to their needs.

Three new phones by Christmas
Videotron will celebrate the coming holidays by adding three new wireless phones to the six currently available.

Videotron Wireless Zone
Details on Videotron's wireless service options and promotions are available on the new Wireless Zone section of videotron.com where customers can download ringtones, images, wallpapers and games. The Wireless Zone was designed to make browsing, testing and downloading user-friendly and easy. Once again, Videotron is leading the way by offering innovative, unique, exclusive content for download, directly on the Wireless Zone.

Canada lags behind in wireless
According to a recent study, Canada lags well behind the U.S. in wireless telephony. The gap has widened from about a year and a half in 2003 to two and a half years today.** Limited competition due to the small number of players in the market, higher prices and technological lag all help explain why Canada's wireless industry is trailing major world markets.

A new challenger in the telecom market
The move into wireless telephone service is a turning point in Videotron's history. Already a leader in Internet access and cable television service, Videotron now offers a truly comprehensive line of services. With the roll-out of cable telephone service in 2005 and wireless service this year, Videotron is consolidating its position as a key player in the telecommunications industry.

"Québec is behind the U.S. market and even the Canadian market," said Mr. Dépatie. "This means there is strong growth potential for a company with a sound, attractive value proposition. By offering affordable new services such as cable telephone and wireless, Videotron has become a driver of change in the marketplace and is creating consumer-friendly trends across the country."

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 and residential 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, 2006, Videotron was serving 1,521,000 cable television customers in Québec; including 545,000 illico subscribers. Videotron is also the Québec leader in high-speed Internet access, with 726,000 subscribers to its cable modem and dial-up services. In addition, Videotron provides residential and business telephone services to more than 283,000 customers in Québec and has been offering wireless telephone service since August 2006.

* Plus tax
** Merrill Lynch, "Global Wireless Matrix," June 2006

The other documents in the press kit (technical specifications, rates, product descriptions and photos) can be downloaded from ftp://ftp.vsi.videotron.com User name: ftp_comm Password: comm1234

Press inquiries

Véronique Mercier

Vice-president, Communications QMI

medias@videotron.com