MONTRÉAL, Nov. 30,
2023 /CNW/ - Following through on their commitment to
offer Canadian consumers more choice by building out one of the
country's most powerful and reliable wireless networks, Quebecor
and Videotron have announced a $299
million investment to acquire 305 blocks of spectrum in the
3800 MHz band. This major addition to Quebecor's spectrum
portfolio, made at the conclusion of Innovation, Science and
Economic Development Canada's latest auction, brings its total
investment in the 3500 and 3800 MHz bands, both essential for 5G
technology, to over $1.1 billion.
"This latest investment is perfectly in line with our business
plan, which is focused on continuing to offer Canadians better
services at better prices," said Pierre Karl Péladeau, President
and CEO of Quebecor. "It is further proof that we have not
only the will but also the ability to achieve our goals, for the
benefit of consumers. Canadians have already seen a
significant drop in the price of wireless services, thanks to the
healthy competition created by Videotron's acquisition of Freedom
Mobile."
Quebecor strengthens its presence
outside Québec
Approximately 61% of the 305 blocks of wireless spectrum
acquired by Quebecor are located outside Québec, mainly in southern
Ontario, Alberta and British
Columbia. The company plans to continue rolling out its 5G
network there and strengthening its presence through its Freedom
Mobile subsidiary, acquired in April
2023, and its Fizz wireless brand, recently introduced in
Western Canada.
Quebecor also bought spectrum in Manitoba, where it now holds a total of 46
blocks in the 600, 3500 and 3800 MHz bands as it prepares to enter
that market. In Québec, the newly acquired spectrum will support
the rollout of Videotron's 5G network and enable it to continue
upgrading its wireless network in all regions, while maintaining
service quality and the customer experience.
Investment in the future
The 3500 and 3800 MHz bands are key to 5G wireless technology.
Through its massive investments in these frequencies and in its
network, now totaling more than $4
billion since 2008, Quebecor continues to increase the
capacity of its current facilities while further enhancing the user
experience across Canada with
increased download speeds and reduced latency.
Cautionary statement regarding
forward-looking statements
The statements in this press release that are not historical
facts are forward-looking statements and are subject to significant
known and unknown risks, uncertainties and assumptions that could
cause the Corporation's actual results for future periods to differ
materially from those set forth in the forward-looking statements.
Forward-looking statements may be identified by the use of the
conditional or by forward-looking terminology such as the terms
"plans," "expects," "may," "anticipates," "intends," "estimates,"
"projects," "seeks," "believes," or similar terms, variations of
such terms or the negative of such terms. Certain factors that may
cause actual results to differ from current expectations include
the possibility that the Corporation may be unable to successfully
implement its business strategies, including without limitation,
the geographic expansion of telecommunications activities and the
reorganization of TVA Group, seasonality (including seasonal
fluctuations in customer orders), operating risk (including
fluctuations in demand for Quebecor's products and the pricing of
competitors' products and services), new competition and Quebecor's
ability to retain its current customers and attract new ones,
Quebecor's ability to penetrate new highly competitive markets and
the accuracy of estimates of the size of potential markets, risks
related to fragmentation of the advertising market, insurance risk,
risks associated with capital investments (including risks related
to technological development and equipment availability and
breakdown), environmental risks, risks associated with
cybersecurity and the protection of personal information, risks
associated with service interruptions resulting from equipment
breakdown, network failure, the threat of natural disaster,
epidemics, pandemics or other public health crises, political
instability in some countries, risks associated with emergency
measures implemented by various governments, risks associated with
labour agreements, credit risk, financial risks, debt risks, risks
related to interest rate fluctuations, foreign exchange risks,
risks associated with government acts and regulations, risks
related to changes in tax legislation, and changes in the general
political and economic environment.
In addition, there are risks associated with the acquisition of
Freedom and the expansion strategy outside Quebec, including Quebecor's ability to
successfully integrate Freedom's operations following the
acquisition and to capture synergies, and potential unknown
liabilities or costs associated with the acquisition of Freedom. As
well, the anticipated benefits and effects of the acquisition of
Freedom may not be realized in a timely manner or at all, and
future operating costs and capital expenditures could be different
than anticipated. In addition, unanticipated litigation or other
regulatory proceedings associated with the acquisition of Freedom
could result in changes to the parameters of the transaction.
Finally, the impacts of the significant and recurring investments
that will be required in the new markets of Freedom and Videotron,
operating as an Mobile Virtual Network Operator ("MVNO") or
otherwise, for development and expansion and to compete effectively
with the incumbent local exchange carriers ("ILECs") and other
current or potential competitors in these markets, including the
fact that the post–acquisition Videotron business will continue to
face the same risks that Videotron currently faces, but will also
face increased risks relating to new geographies and markets.
Investors and others are cautioned that the foregoing list of
factors that may affect future results is not exhaustive and that
undue reliance should not be placed on any forward-looking
statements. For more information on the risks, uncertainties and
assumptions that could cause Quebecor's actual results to differ
from current expectations, please refer to Quebecor's public
filings, available at www.sedarplus.ca and www.quebecor.com,
including, in particular, the "Risks and Uncertainties" section of
the Corporation's Management Discussion and Analysis for the year
ended December 31, 2022.
The forward-looking statements in this press release reflect the
Corporation's expectations as of November
30, 2023 and are subject to change after this date. The
Corporation expressly disclaims any obligation or intention to
update or revise any forward–looking statements, whether as a
result of new information, future events or otherwise, except as
required by applicable securities laws.
About Quebecor inc.
Quebecor, a Canadian leader in telecommunications,
entertainment, news media and culture, is one of the
best‑performing integrated communications companies in the
industry. Driven by their determination to deliver the best
possible customer experience, all of Quebecor's subsidiaries and
brands are differentiated by their high‑quality, multiplatform,
convergent products and services.
Quebecor (TSX: QBR.A) (TSX: QBR.B) is headquartered in Québec
and employs more than 10,000 people in Canada.
A family business founded in 1950, Quebecor is strongly
committed to the community. Every year, it actively supports more
than 400 organizations in the vital fields of culture, health,
education, the environment, and entrepreneurship.
SOURCE Québecor Média inc.