Videotron Reports Growth in Q1

[cablewithaview]

Videotron reported strong numbers for the first quarter of 2008, growing its customer base for all four products: cable television, Internet access, cable telephone and wireless telephone service.

"We were very pleased by the record results for 2007, and we are delighted to see the trend holding in 2008," said Robert Depatie, President and Chief Executive Officer of Videotron. "I am confident that if we continue to focus all our targets and all our strategies on fully satisfying every customer, we will be very strongly positioned to maintain this exceptional growth, because our 1.6 million existing customers and potential customers alike will see that they are our priority."

As of March 31, 2008, Videotron had a total customer base for cable television of 1,652,200 across its service area, a quarter-over-quarter increase of 34,600, compared with a 29,200 increase in the same quarter of 2007. In the first three months of 2008, Videotron posted a net increase of 34,600 subscribers to its illico Digital TV service, bringing the total to 802,800. Videotron offers subscribers to illico Digital TV the largest selection of French-language high-definition channels in its service area.

Videotron grew the subscriber base for its cable Internet service by 32,300 in the first quarter of 2008, bringing the total to 965,300, a 3.0% quarter-over-quarter increase. The customer satisfaction rate with the service is 96% according to a Leger Marketing survey conducted in December 2007.

Videotron launched two new Internet access services during the quarter, pushing back the limits of the Internet once again and delivering some of the fastest file transfer speeds in North America. Ultimate Speed Internet 30 and Ultimate Speed Internet 50 support speeds of 30 megabits per second and 50 megabits per second respectively in order to meet the needs of today's connected family, in which several family members typically share a single Internet connection.

The two new very high-speed services make Videotron the first cable operator in North America to offer service of this speed on a cable network. Roll-out is starting in the Laval area, reaching a potential market of 112,000 households, and will gradually be extended to the rest of Quebec.

Since gradual region-by-region roll-out began in 2005, Videotron cable telephone service has registered steady growth. In the first quarter ended March 31, 2008, the customer base for the service increased by 55,300, bringing the total to 691,600.

"Videotron's reliable alternative to conventional telephone service continues to expand its position in the telephone market," said Robert Depatie. "The competition generated by this product creates clear advantages for consumers, providing significantly lower prices and the opportunity to choose one's telephone provider. We are pleased to note that the customer satisfaction rate with Videotron cable telephone service is 95%, according to the same Leger Marketing survey carried out in December 2007."

Videotron's wireless telephone service, launched in mid-2006, continued to grow with a 5,500 quarterly increase in the number of activated phones, bringing the total to 50,600 as of March 31, 2008.

With the addition of wireless telephone service to Videotron's product packages, Videotron can now provide each customer with four telecom products: Internet access, cable television (with illico), cable telephone and wireless telephone service. Videotron's multi-product bundles have continued to prove attractive in 2008, with over 50% of Videotron customers now subscribed to two or more services.

In March 2008, Quebecor Media Inc. filed an application to bid as a new market entrant in the Advanced Wireless Services spectrum auction. On March 31, 2008, Industry Canada confirmed that the application had been accepted. The spectrum auction could enable Videotron to build its own wireless network to serve the Quebec market. Videotron would then be equipped to increase competition in a market where Canada lags behind other countries in technology, penetration rate and consumer pricing.


mediacastermagazine.com - Mediacaster - 4/4/2008