Rogers
Communications and Le Groupe Vidéotron Monday agreed to merge through a
share exchange, a move which has significant implications for the ADSL and cable market.
With estimated revenue and operating income for fiscal 2000 of $4.4 billion
and $1.2 billion respectively, the new entity will enjoy considerable
financial flexibility.
The transaction will also result in the creation of Canada’s largest broadband
communications company with North America’s largest contiguous cluster of
homes serviced by one integrated network.
With over 5.1 million homes passed, 3.7 million cable customers, and 260,000
high-speed Internet access customers, the merged company is expected to be by far
Canada’s largest cable company and among the top three suppliers in North
America in terms of high-speed Internet access.
The transaction is a major step towards establishing a fully integrated
provider positioned to offer a complete bundle of communications services
and scaled to compete effectively in the combined Quebec, Ontario, and
British Columbia markets as well as leveraging Canada’s largest wireless
network operated by Rogers AT&T Wireless.
Active in the fields of cable television, Internet access, wireless
communications, business telecommunications, Internet portals, publishing,
radio, security and, soon, residential telephony, the merged company is
equipped to act as a one-stop shop of communications services for close to
half of Canadian homes.
Rogers Communications (RG) is engaged in cellular, Digital PCS, paging, and data
communications through Rogers AT&T Wireless; in cable television, high-speed
Internet access and video retailing through Rogers Cable, and in radio and
television broadcasting, tele-shopping, publishing and new media businesses
through Rogers Media.
Le Groupe Vidéotron is an integrated communications company with
subsidiaries in telecommunications, cable television, Internet services,
television production, broadcasting, electronic commerce, and remote
surveillance. The Company also owns the largest chain of video stores in
Quebec.
