Robert Dépatie, President and CEO of Videotron Ltd, discussed the company's progress over the past year, challenges and opportunities in a changing environment, and the role of government in Quebec. Key points included Videotron achieving strong financial results and customer gains in 2007, introducing Canada's fastest consumer internet services, and achieving their best customer satisfaction levels. Dépatie noted that economic models need to shift to reflect changes in customer demand and technologies.

1. REMARKS BY
Robert Dépatie
President and Chief Executive Officer
Videotron Ltd
TORONTO
JUNE 2008
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Videotron:
Our Progress Over the Past Year
Embracing Change:
Challenges & Opportunities
Enabling Change:
A Role for Government

2. 1st in Quebec
1st in Quebec
1st in Canada
We’ve Got Plans™
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2007 was a landmark year
strong financial results
significant customer gains
introduction of Canada’s fastest consumer
internet services
our best customer satisfaction levels, ever

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Steady increase in
digital penetration
Digital subscribers
will surpass analogue
this year
reduced network load higher ARPS
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24M
A pre-cursor to IPTV;
amazing results
300K 700K
subscribers subscribers

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1M HS Internet customers
this year
Announced (Feb 08)
the fastest consumer
internet services in
Canada
50 Mbps & 30 Mbps
Quebec has Canada’s highest adoption
of VoIP services - Statistics Canada
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The direction is good;
MVNO model showed some
promise, but …
Watch this space!
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Last fall, Industry Minister Jim Prentice unveiled some
significant changes to Canada’s wireless
marketplace – changes similar in most respects to
the suggestions we raised in this very forum last June.
Great job Mr.Prentice

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Most of our customers have
choose to bundle their
services
Innovative service
interaction enhancements
softphone
caller ID on tv
Cable telephony
-a key driver

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the Customer Experience
How will ‘what we do’ effect our customers?
How can we bring the Best Experience Possible
to our customers?
What can we do to improve our product, our service
to better serve our customers?
Videotron’s success is driven by customer satisfaction
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95% 95% 96% 97%
Our customer
satisfaction results
show that our focus
is working
1Q07 2Q07 3Q07 4Q07
Respondents replying: Satisfied and Very Satisfied Source: Léger Marketing

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48
68
55
54
49
48
Source:
The IPSOS Canadian 47
Inter@ctive Reid Report 42
2008 37
(%)

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Internet behavior is changing
Downloads up – more often, bigger files
Uploads up - more often, bigger files
Ratio is shifting too; more uploads
Internet is not just about the computer
Viewing habits are changing
Video on Demand use is soaring
The ‘centre’ (television) is shifting
Television is not just about the TV

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Technology is giving us the tools to do more
More Connections
Faster Speeds - More Bandwidth
Services Integration
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Economic models should shift
Change in customer demand
Change in technologies
little change in industry structure
little change in economic models

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A. Producers/Copyright Holders
B. Television Broadcasters
C. BDUs [Cable/Satellite Distributors]
D. Consumers
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The television “channel” — a core concept
the first 30 years
up to 13 channels
the multi-channel world
100’s of channels

13. Videotron’s new iteration of the classic Maxwell tape experience
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Come to our store,
our (digital) shelves
are full ...

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15. Interactive
Mobile Applications
Games HS Internet
PDA Alarm
Mobile Devices Monitoring
HD-PVR
HD-IPTV
Digital Cable
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Access speeds
evolving
Traffic throughputs
expanding
the impact of HD will be
profound
“if ... all of You Tube’s users were to upload their videos in high definition,
it would nearly double U.S. Internet traffic - MIT Technology Review, May/June 2008

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… More and more in Canadian broadcasting, the consumer is in
charge. BDUs and programmers must be able to respond to the
evolving expectations, tastes, and demographics of Canadian
viewers. In order to meet the challenges in the years ahead,
above all licensees will need to have the flexibility to react
quickly and creatively to the opportunities and challenges they
encounter, and not be burdened by detailed or unnecessary
regulations.”
from CRTC Notice of Public Hearing 2007-10, paragraph 11

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Assessing, developping, researching
new ways
Recognition that the current models
must change
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Content Connectivity
IP Connectivity
Customer Connectivity

19. REMARKS BY
Robert Dépatie
President and Chief Executive Officer
Videotron Ltd
TORONTO
JUNE 2008
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