Videotron Residential Telephony

1
VideotronResidential Telephony

• Presentation
• December 16, 2004

2
Agenda

• Videotron The Company, The Network
• Videotrons telephony solution
• Summary

3
Corporate Structure
54.7
45.3
Inc.
Other
1 Cable operator in Quebec 3 in Canada 1
video store chain in Quebec
Largest newspaper publisher in Quebec second
largest in Canada
Book RetailingNew MediaBusiness Telecom
Largest French language broadcaster and magazine
publisher in Quebec and in North America
Note Segmented revenues include inter-company
revenues.
4
Leading Cable and Internet Operator
Cable TV 1 450 000 basic subs 308,000 digital
subs

• Internet
• Fastest growing cable internet provider in
  Canada during LTM
• 501 000 subs

30/09/04
5
Videotron HFC Network

• HFC Network
• 97 2-way enabled
• 74 at 750MHz
• 2,5 million home passed
• Enables a variety of advanced services
• Digital TV
• VOD
• HSI
• HDTV
• On Demand Services

Primary head end
Secondary head end
SONET link
6
VTL Backbone Telecom Network and Interconnections

• 56 POI across Ontario and Quebec by year end 2004
• Worldwide interconnection agreements with
  Tier1-Class partners
• ATT, Sprint, Wiltel, Telus
• 11,000 km of fibre optic cable in Quebec and
  Ontario
• OC-3/12/48 backbone

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Videotron Telephony

• Builds on previous IP telephony project and CLEC
  experience
• Residential phone service
• First line replacement
• Available first semester 2005
• Interconnection to existing home inside wire
• Customer will keep and continue to use existing
  phones and devices
• Dial pulse compatible (old alarm systems)
• Ethernet and USB connection
• Commercial offering to be announced on completion
  of current trial

8
Videotron Telephony

• Investments
• 80 CDN million fixed capital investments
  expected over the next four years
• 250 CDN acquisition costs per customer on
  average over four year period

9
Hybrid Infrastructure

• Selection of a hybrid technology that enables us
  to
• Reduce technology risks
• Leverage VTL and VL existing assets
• Reduce start up costs
• Accelerates delivery of a mature and reliable
  product to customers

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Hybrid Infrastructure

• Circuit-switched and OSS
• DOCSIS 1.1-compliant broadband IP network
• GR-303 IP/PSTN gateway
• Two-line Multimedia adaptor

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Hybrid Infrastructure

• Switching and OSS
• Circuit switched network
• Lucent 5ESS digital switches
• Montreal, Quebec City
• 99.999 reliability
• Features rich Lucent 5ESS
• Complete OSS suite
• LNP (Local Number Portability) system
• 56 POI across Ontario and Quebec by year end 2004

12
Technology

• Existing Broadband IP Network
• High Speed IP Network
• DOCSIS 1.1 compliant
• BPI Encryption
• Fully redundant IP backbone network
• Sufficient bandwidth to handle peak demand
  periods
• QoS management
• Voice traffic priorisation
• HFC architecture (1,000 homes per node)

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Technology

• Existing Broadband IP Network
• High Speed IP Network
• Battery backup power covering 60 of home passed,
  full coverage by 2006
• Internet network reliability 99.9, or 7.9
  hrs/year, service interruption
• Confident of 99.95 IP reliability by year-end
  2005 and more than 99.99 IP reliability by 2007

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Technology

• Gateway
• GR-303 gateway
• PacketCable-compliant gateway enabling telephony
  services on IP network connected to our existing
  CLASS 5 (5ESS Lucent) switch
• Fully redundant gateway offering 99.999
  reliability
• Each gateway can serve 2,000 up to 100,000
  clients

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Technology

• Multimedia Terminal Adaptor (MTA)
• Cable modem with two voice ports
• Handles up to 2 phone lines
• Links IP network and phone house wiring
• One or two Lithium batteries providing more than
  eight hours of power backup each
• One USB port
• One Ethernet (10/100) port

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LCS/GR-303 VoIP Interconnection

• Builds on previous IP telephony project and CLEC
  experience
• Uses well proven carrier class technology
• Solution based on a PacketCable 1.0 network
  architecture extension
• Provides a transitional and economical entry into
  the IP telephony marketplace

Managed IP network
GR 303 Gateway
HFC network access (DOCSIS 1.1)
CMTS
VTL's 5ESS Switch (Toronto, Montreal, Quebec
City)
MTA
Voice
Data
PSTN
PSTN subscriber
MSO subscriber
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Softswitch

• We are tracking the softswitch evolution and
  opportunities
• We will implement it as required by the market

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Differentiators
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Triple Play

• Analog
• Digital
• PVR
• HDTV
• HDPVR
• VOD
• SVOD
• Interactive services

Multi-product, multi-service approach Unified
sales and marketing team Single point of
contact Single truck roll Same day service One
monthly invoice
Business

• Dial-up
• High-Speed
• Extreme HS
• Speed OD
• Home network
• Wi-Fi
• Webcam

Consumers

• Reliable digital telephony
• Full-featured services
• Migration to softswitch architecture
• Unique features
• and options

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Wrap-Up

• We have a large base of loyal customers
• Possess a solid, reliable and scalable network
• Carrier class QoS
• 40 years of experience operating Cable plant
• Close to 10 years of experience as a Telco

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