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 Quebec'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 Depatie, 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. Depatie.
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.
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 Quebec,
including 1,042,400 subscribers to illico Digital TV. Videotron is
the Quebec 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 Quebec households and organizations. For the
fourth consecutive year, Videotron has been named Quebec's most
respected telecommunications company by Commerce magazine, based on
a Leger Marketing survey.
Quebecor Inc. (TSX: QBR.A)(TSX: 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 Quebec, 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 Videotron ltee, 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.
Videotron reminds its customers of the importance of legally
acquiring the music and films they download with the added speed of
Ultimate Speed Internet 30 and 50. "Ultimate Speed Internet 30" and
"Ultimate Speed Internet 50" are registered trademarks of Videotron
Ltd.
Contacts: Media contact: Videotron Ltd. Jean Francois Pruneau
Vice President, Finance (514) 380-4144 Videotron Ltd. Isabelle
Dessureault Vice President, Public Affairs (514) 380-7501
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