Videotron Seeks to Register as a Competitive Local Exchange Carrier

Business Wire, Dec 15, 1998

MONTREAL--(BUSINESS WIRE)--Dec. 14, 1998--(TSE:VDO.) (ME:VDO.) Videotron Communications inc. informed the Canadian Radio-Television and Telecommunications Commission (CRTC) today of company plans to create a second competitive local exchange carrier (CLEC). Starting in 1999, Videotron ltee plans to provide local telephone service to consumers in several Quebec regions where competition has been authorized.

The status of CLEC will allow Videotron to begin negotiations for interconnections of its network with those of Bell Canada and other local exchange carriers. This will enable Videotron local telephone service customers to communicate with all other users, regardless of location or telecommunications carrier used.

Videotron will launch local telephone services based on a new technological platform that uses the Internet protocol (IP). Videotron will offer customers the option of keeping their telephone numbers when changing local service carrier.

Videotron's registration as a new CLEC is in line with Decision 97-8 (May 1, 1997) where the CRTC outlined the competitive environment it would like to see established for local telephony. The goals are to:

- maintain universal access to affordable telecommunications services in high-cost areas,

- encourage fair competition in all regions through equitable access to subsidies for CLECs, and

- encourage the establishment of effective interconnection agreements to evolve toward a network of interfunctional networks.

Videotron Communications has obtained the cooperation of recognized suppliers to develop this new sector of activity. Last October, Videotron selected Cisco Systems and Bellcore to install a new communications infrastructure based on a packet switching network. This infrastructure will let consumers get all their communications services from a single supplier. The new services based on the Internet protocol will allow Videotron customers to use simultaneously telephone services, high-speed Internet access and cable television services through a single coaxial cable, without compromising the quality of any of the services.

Videotron Communications inc. is a subsidiary of Le Groupe Videotron ltee involved in cable television and telecommunications in Canada. It includes: Videotron ltee, which serves the residential market; Videotron Telecom ltee, which targets business and institutional customers; Videotron.net, which develops services based on the Internet protocol (IP) for residential and business customers; Protectron inc., which offers security systems and remote surveillance services for residential and business customers; and Le SuperClub Videotron ltee which is a distribution and marketing network for Videotron services.

Le Groupe Videotron ltee (Montreal, Toronto, VDO) is an international communications company. Subsidiaries in Canada offer services in cable television, telecommunications, broadcasting, remote surveillance and interactive multimedia development. In the United States, Groupe Videotron owns a private cable television and telephone company, as well as a broadband wireless high speed Internet connectivity service provider. Groupe Videotron is a leader in information highway development as a result of its experience in multimedia development and in integrated cable television and telephony in the United States and the United Kingdom. Groupe Videotron employs over 5,000 people.