Quebecor Media Inc. seeks participation in wireless spectrum auction

March 13, 2008

Quebecor Media Inc. has filed an application as a new entrant to bid at the spectrum auction for Advanced Wireless Services.  Quebecor Media submitted a deposit of $317 million, in the form of letters of credit, to Industry Canada.

Last November, Industry Minister Jim Prentice announced that a significant portion (40 megahertz) of spectrum to be auctioned would be reserved for new entrants in the wireless market.  The purpose of the decision was to increase competition in the Canadian market, which has lagged behind other countries in terms of technology, penetration levels and consumer pricing.

If the Quebecor Media application is accepted - a decision will be known on March 31 - the company will bid for spectrum across Canada.

"We have always stated clearly that our Vidéotron subsidiary planned to build its own wireless network to serve the Quebec market.  However, exceptionally favourable conditions for new entrants, which may never occur again, persuaded us it is in the interest of our shareholders that we try to extend our deployment across Canada.  We will see at the conclusion of the auction if such a deployment is possible," said the president and CEO of Quebecor Inc., Pierre Karl Péladeau.