Videotron Assembles Dream Team to Execute Telecommunications Strategy
December 17, 1998
MONTREAL--(BUSINESS WIRE)
Videotron (ME:VDO) (TSE:VDO)
-- "All of the key strategic
elements are in place to
dominate the integrated
communications services
market, including telephony,
and to accomplish that,
Videotron has assembled its
own "dream team," said Andre
Chagnon, Chairman of the
Board and Chief Executive
Officer of Le Groupe Videotron
Ltee, during the annual meeting
of shareholders of the
Company, held today.
"Our transformation from a
basic cable operator to an
integrated provider of
communications services will
become a reality in 1999. A
new era of growth is on the
horizon for Groupe Videotron,"
he added.
Mr. Chagnon added that the
opening of the
telecommunications market
provides Groupe Videotron with
an extraordinary opportunity to
accelerate growth.
"Within five years, the majority
of our revenue could easily
come from operations other
than cable, such as local and
long distance telephony,
content production and
distribution, and the production
and marketing of new
applications based on the
Internet Protocol," said Mr.
Chagnon.
Mr. Chagnon assured
shareholders that all the critical
elements for success are met:
the clustering of its cable
franchises, a state- of-the-art
network infrastructure,
telecommunications know-how
and expertise, as well as
financial flexibility.
Mr. Chagnon also pointed out
that Videotron has developed a
high level of confidence from its
experience with telephony in
the United Kingdom and the
United States, and that
partnerships with large industry
players such as Cisco, Bellcore,
Keenan and SAP will allow
Videotron to complete the
installation of the first broad
band IP network in the world,
and one-stop shopping for the
Company's services.
One wire, one service provider,
one bill
"Starting next year, we will be
the only company capable of
offering 150 digital channels,
local and long distance
telephone service, high speed
Internet access, and the
monitoring services of
Protectron, all on the same
network infrastructure. In
addition, we will be the first to
offer a one-stop
communications shop for the
residential and business
sectors, said Mr. Claude
Chagnon, President and Chief
Executive Officer of Videotron
Communications inc., the
subsidiary responsible for
Canadian activities other than
broadcasting.
Claude Chagnon indicated that
telephone services would be
available to business customers
as soon as local number
portability will permit.
Telephone service should also
be available to residential
clients before the end of 1999.
Claude Chagnon believes that
telephony provides the
Company with its biggest
growth opportunity since the
business was founded.
"Our modernized network, with
broad band access directly to
the home, brings us a
significant competitive
advantage that we can count
on to quickly become a leader
in the integrated
telecommunications services
sector."
In this context, the SuperClub
video store chain will serve as a
storefront for the growing
range of Videotron products
and services. They will also be
the favoured service interface
for customers.
Group TVA and OpTel also
growing
Growth is also at the heart of
the strategy of Group TVA Inc.,
Videotron's subsidiary
responsible for the production
and broadcasting of content.
"Our broadcasting success in
Quebec demonstrates our
ability to develop, produce and
broadcast quality content. This
unique position enables us to
multiply our alliances in several
areas of development, in
Quebec and increasingly in
other markets throughout the
world," said Daniel Lamarre,
President and Chief Executive
Officer of Group TVA.
Mr. Louis Brunel, President and
Chief Executive Officer of
OpTel, Inc, indicated that
network expansion, new service
agreements and the launching
of new services will helped keep
the U.S. subsidiary growing.
"With the help of recent
acquisitions and internal
developmental efforts, OpTel
has climbed to number one in
the field of integrated
communications services for
multiple dwelling units. We
intend to continue this
success, " he said.
Financial flexibility
Mr. Alain Michel, Senior Vice
President and Chief Financial
Officer of Groupe Videotron,
underlined that the financial
strategy of the Company is to
maintain financial flexibility
based on a combination of a
solid balance sheet and
prudent, disciplined financial
management.
"We have the financial
structure and wherewithal to
accomplish our strategies for
growth in our various sectors of
activity. In Canada, credit
rating agencies have
recognized the value of our
approach by attributing the
Company with "investment
grade" status. In the United
States, we managed to finance
the growth of OpTel without
any possibility of recourse
against the parent company,"
explained Mr. Michel. |
