Montreal, July 6, 2009 – The CRTC announced today that is setting a contribution of 1.5% of gross broadcast-distribution revenues for the Local Programming Improvement Fund to be paid by Videotron and other distribution companies. Videotron strongly opposes the CRTC decision whose effect will be to impose a hidden tax on customers who will see their bills increase by 1.5% or $25 to $50 a year, depending on their cable options.
Our customers are already paying 5% of their cable bill to finance Canadian programming. With this new hidden tax of 1.5%, the contribution will total 6.5%. In the current economic climate it is indecent to increase the burden on consumers. In the name of our customers, we strongly oppose this situation and we intend to fight, said Robert Dépatie, President and CEO of Vidéotron.
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 March 31, 2009, Videotron was serving 1,729,168 cable television customers in Québec, including 963,153 illico Digital TV subscribers. Videotron is the Québec leader in high-speed Internet access, with 1,089,251 subscribers to its cable modem service as of March 31, 2009. As of the same date, Videotron had activated 68,015 lines on its wireless telephone service and was providing cable telephone service to approximately 890,918 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 poll.
