Quebecor Media Inc.

Quebecor Media Inc.

December 11, 2006 18:24 ET

Quebecor Approves Deregulation: The Canadian Government Must Be True to its Own Logic

MONTREAL, QUEBEC--(CCNMatthews - Dec. 11, 2006) - Quebecor Media which controls the third largest cable distribution network in Canada and the largest in Quebec, Videotron Ltd, approves of the decision by the Government of Canada to deregulate as soon as possible the telecommunications sector. Quebecor Media is also of the opinion that the Government must act with equal speed in deregulating other sectors of the telecommunications industry.

"We were of the opinion that the Government should have accepted a transition period to immediate deregulation, because indeed under the present rules Canadians have benefited from lower telephone rates with the introduction of cable telephone service," said Pierre Karl Peladeau, President and CEO, Quebecor Inc. "We take note of the Government's decision and we encourage the Government to follow its own logic by proceeding with the deregulation of the entire cable and broadcasting sectors as quickly as possible because, in our opinion, this could permit consumers to benefit from reduced cable bills," added Mr. Peladeau.

Quebecor Media is also asking the Government to act to put in place the necessary conditions in the mobile telephone sector that will force the leading companies in this sector to use the wide profit margin it generates to offer Canadians the latest technology available and to lower the prices they pay instead of using it to win back residential telephone subscribers.

"Mobile telephonie is rapidly becoming a complete-service cultural vehicle delivering products as varied as music, television, and movies. It is vital for Canadian culture to have access to the most advanced technology which is not currently the case," said Mr. Peladeau. "Presently Canadians pay 60% more than Americans for mobile telephone service and do not have access to the same advanced technology available everywhere else in the world. This is unacceptable and can only be explained by the existence of a Canadian oligopoly that controls this business sector," concluded Mr. Peladeau.

The Company

Quebecor Media, a subsidiary of Quebecor Inc. (TSX:QBR.A) (TSX:QBR.B), owns operating companies in numerous media-related businesses: Videotron Ltd., the largest cable operator in Quebec and a major Internet Service Provider and provider of telephone and business telecommunications services; Sun Media Corporation, Canada's largest national chain of tabloids and community newspapers; TVA Group Inc., operator of the largest French-language general-interest television network in Quebec, a number of specialty channels, and the English-language general-interest station Sun TV; Canoe Inc., operator of a network of English- and French-language Internet properties in Canada; Nurun Inc., an important interactive technologies and communications agency in Canada, the United States, Europe and Asia; companies engaged in book publishing and magazine publishing; and companies engaged in the production, distribution and retailing of cultural products, namely Archambault Group Inc., the largest chain of music stores in eastern Canada, TVA Films, and Le SuperClub Videotron ltee, a chain of video and video game rental and retail stores.

Contact Information

  • Quebecor inc.
    Luc Lavoie
    Executive Vice President, Corporate Affairs
    Office: 514-380-1974 or Portable: 514-947-6672