News Release
Kitimat, BC December 23, 2009

CityWest announces completion of Fibre-build connecting Kitimat with Terrace.
CityWest announced today the completion of a 65 KM fibre-optic link between Kitimat and Terrace. The fibre-link is the final phase of CityWest’s “Kitimat upgrade project” the company announced in January 2009. Local cable infrastructure has already been upgraded as part of the first phase of the project.
The company is now in the process of setting up central office systems in Kitimat to deliver new services over the fibre-link. Examples of new services planned are: Digital Cable TV, Home Phone, and improved high-speed internet services to Kitimat residents and businesses. The Kitimat Digital TV line-up will be identical to the line-up offered in Terrace and Prince Rupert – featuring hundreds of Standard Definition channels, 30+ High-definition channels, Pay-Per-View services, an interactive tv-guide and more. Digital Cable customers also get local channels and information that you can only get on cable.
CityWest is now setting up a new technical office in the community to house the new central office systems and to serve as a technical operations office. Chad Cunningham, Sales and Marketing Manager for CityWest said “we are excited to be on the home stretch for this project, and I know our customers in Kitimat are anxiously awaiting these new services. There is still some work to be done at the new central office location in Kitimat before we can start offering services. We don't want to throw out any dates just yet as the weather may be factor in how soon it's all completed."
“Kitimat is an important market for us,” said CityWest CEO Rob Brown. “This announcement, and the Kitimat project as a whole reaffirms the commitment CityWest has to serving Kitimat. CityWest is investing an estimated $2.5 million in Kitimat this year alone, making the Kitimat project the largest capital project CityWest is undertaking this year. Our goal at CityWest is to provide premiere communications and entertainment services to the region. I know that the people of Kitimat have waited a long time for this, and we will all be happy when the first installations start-up,” said Brown.

Q:
Why are you investing in Kitimat?
A:
Kitimat is the third largest community we service today. We estimate that the telecommunications business in Kitimat is worth over $6 million annually. CityWest currently holds a 25% share of this market and through these upgrades we expect to grow our marketshare. Growth will come from entering the telephone market, offering a state-of-the-art television service, and an improved Internet service that will be superior to what the competition is offering in Kitimat. For all of these reasons we are optimistic about investing in Kitimat.

Q:
What about Smithers/Houston/Hazelton? When will you get there?
A:
We are considering future upgrades in other communities but have nothing concrete to communicate at this time.

Q:
What’s the purpose of the work you’re doing in Kitimat?

A:
We’re building a state-of-the-art cable and fibre-optic network in Kitimat. The purpose of this new network is to provide new services like Digital Cable TV, Home Phone Service, and new and improved internet services.

Q:
When is Digital Cable and/or CW Home Phone coming to Kitimat?

A:
We have finished the construction work that is required, and now need to install central office systems in our new technical building in Kitimat. From this location, we will deliver next generation telecom and entertainment services to Kitimat. The set-up of the central systems and testing period is expected to be 90-days assuming there are no delays.

Q:
You told me it was coming a year ago and now it’s still a ways off what’s with the delay?

A:
Originally we planned to buy a second Digital TV system in Kitimat – so we would have a system in Kitimat and one in Terrace. And if we had gone that route we would have launched as planned. What happened was we decided instead to run a fibre-optic line from Terrace to Kitimat and use the Terrace Digital system to service Kitimat the same way it services Prince Rupert today.

What this means is that in future when we add new channels – or services like Video On Demand that we will need to add these services to only one system – rather than two. Having one system serving the whole region will decrease our costs to add new services in future, which means we will be able to add more services more quickly. The fibre-link also offers the ability to expand internet services we offer in Kitimat and provide home phone services.

So the drawback is that by selecting the fibre-optic option we have increased the construction time for the project. But the benefit is that in the long run the services we offer in Kitimat will be better with the fibre-link than if we had proceeded with installing a second system.