Videotron Unveils 50-Mbps Cable Broadband Service in Quebec

Press Release - February 8, 2008

Quebec-based cable giant, Videotron Ltee, has gained the distinction of Canada’s fastest ISP, launching a new broadband service dubbed Ultimate Speed Internet, which lets customers surf the web at blistering speeds of up to 50-Mbps.

Videotron says that the new package makes it possible to download a CD with 10 songs in just 10 seconds, or a 2-Gigabyte movie in just five minutes.

Some analysts, however, are questioning whether there will be much demand for such a high-bandwidth service in the short term, stating that most users don’t use the web enough to justify the cost.

“At this time, you have to ask, do you really need 50 megabits per second, unless you’re in the top 5 per cent of Internet users that are watching TV on a continual basis off the Internet, which I don’t think most people are at this point,” commented MacDougall MacDougall & MacTier Inc. analyst, Troy Crandall.

But Videotron is trying to pitch its Ultimate package as a mainstream service, staging a product demonstration on Wednesday, to show the benefits for multi-user households.’

“This product is aimed at a very large customer base that is increasingly using the Internet every day, especially family members who want to use it simultaneously,” explained Manon Brouillette, Videotron’s senior VP of marketing, content and product development.

The Ultimate Speed service is initially being launched in Laval, a northern suburb of Montreal, with a gradual extension in other regions over the next few months. It will be offered at a cost of $79.95 per month, in an attempt to undercut telecom rival, Bell Canada, which charges $94.95 per month for a considerably slower 16-Mbps DSL service.