Quebec by leader6

VIEWS: 17 PAGES: 19

									TELECOMMUNICATIONS




   Quebec
          A Dynamic and Profitable
          Business Environment




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TELECOMMUNICATIONS                                                                                                                                                  PAGE 2




                                                 Table of contents
     Home .............................................................................................................................................................. 3
     Sector Profile................................................................................................................................................. 4
     Industry-leading Companies ........................................................................................................................ 5
       Equipment Manufacturers ..................................................................................................................................... 7
     Labour............................................................................................................................................................ 9
     Research & Development ........................................................................................................................... 11
     Operating Costs .......................................................................................................................................... 13
       Labour.................................................................................................................................................................. 14
       Space Rental ....................................................................................................................................................... 15
     Financial Solutions and Taxation .............................................................................................................. 16
       Measures to Stimulate R&D ................................................................................................................................ 17
       Corporate Tax Rates ........................................................................................................................................... 18
       Tax Holiday for Foreign Researchers.................................................................................................................. 19




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TELECOMMUNICATIONS                                                                                           PAGE 3




     Home
     You will find in Québec a major North American technology hub where every winning condition for success
     is in place.

     Here are just some of the advantages that await you:

         •   A world-class research infrastructure;
         •   Better operating costs than in the U.S. and G7 countries;
         •   The largest pool of engineers in Canada;
         •   An abundant, highly qualified labour pool.

     You'll also be working alongside leading corporations that are the next-generation specialists in all fields of
     telecommunications. Thanks to them the Montréal area has become a world-class technopolis in the
     industry.

     Here are some of the major players:

      Ericsson Research Canada               Network infrastructure
                       Positron              IP telephony
                       SR Telecom            Fixed wireless access systems
                                             Wireless communications
                 Wavesat Telecom
                                             systems
              Airborne Mobile and
                                             Wireless electronic games
                        Gameloft

                                                                                                   ...and much more!

       "Québec has been able to successfully leverage high technology as a vector of economic growth. It has
       excellent universities and a large pool of qualified, innovative labour." - Odd Svesse, Vice President and
                                     General Manager, Ericsson Canada Inc., 2009.

                       Your company is growth-minded. Expand your horizons in Québec.

                                                                                                     December 2009




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TELECOMMUNICATIONS                                                                                     PAGE 4




     Sector Profile
     A Dynamic, Innovation-minded Industry
     The strong growth in the Québec telecommunications industry is driven by the dynamism and high export
     capability of local businesses, as well as the many leading-edge R&D projects in progress. The
     telecommunications sector alone accounts for almost 50% of exports in the overall information and
     communications industry in Québec.

     Most of the telecommunications companies are located in the Greater Montréal area, benefiting from the
     proximity of the many leading institutions of higher education, associations and research & development
     consortia.

     The Telecommunications Services Sector Represents:
        • 45,000 workers employed by 600 businesses and institutions providing a wide range of innovative
            telecommunications services;
        • Revenues of nearly $11 billion;
        • Accounts for 42% of the GDP of Québec's information and communications technologies sector;
        • $260 million spent on R&D every year by companies.

     These companies can also offer the infrastructure necessary for data processing and storage services as
     well as related services.

     They can be divided into five segments:
        • telephony service suppliers;
        • satellite and cable television distributors;
        • internet service providers;
        • structured cable companies;
        • related telecommunications suppliers.

     The Telecommunications Equipment Manufacturing Sector Represents:
        • almost 100 companies operating in the telephone equipment manufacturing (landline
            communications equipment) and radio and television broadcasting and wireless communications
            equipment manufacturing sectors (2006 figures).

     The Telecommunications Equipment Manufacturing Sub-sectors are:
        • landline;
        • wireless;
        • telecommunications systems and software;
        • other telecommunications equipments.

     High-calibre Public Infrastructures
     Québec's network of telecommunications infrastructures uses modern, advanced technology and offers
     services on the cutting edge of technology. Fibre-optics is used for all long-distance links in the most
     populated areas and even in some less densely populated regions. The vast majority of local exchanges are
     also linked by optical fibre connections. Advanced services are available on the majority of key networks,
     including integrated services digital network service (ISDN), as well as ATM switching on many long-
     distance networks.




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TELECOMMUNICATIONS                                                                                           PAGE 5




     Industry-leading Companies
     Main Service Providers
     Many companies offer services in the telecommunications sector. Here is a sample, picked on the basis of
     one of the supplier's main activities - many offer an array of services.

     Structured Cable Services
     Oricom (network planning, management and maintenance, cabling sub-contracting)
     Oricom offers all internet-related essential services: internet connection, hosting, internet data centre,
     website design and interactive media.

     Telesat Canada (network planning and management)
     Telesat is one of the premier satellite operators in the world, offering telecommunications and broadcasting
     services throughout the Americas with a very modern fleet of satellites.

     Satellite and Cable Television Distribution Services
     Cogeco (cable television and internet, local telephony)
     COGECO is a diversified communications company seeking to satisfy the communication needs of
     consumers and advertisers through broadcasting in Québec and cable television distribution in Canada and
     in Portugal.

     Vidéotron
     Vidéotron is an integrated communications company operating in the fields of cablevision, interactive
     multimedia development, internet access services, cable telephony and wireless telephony.

     Telephony Services
     Bell Canada Enterprises
     World leader in the communications field: landline and wireless telephone networks; IP networks and
     solutions; e-commerce; systems integration; directory assistance; satellite transmission network; high-speed
     Internet access; Web site hosting; direct satellite broadcasting.

     Fido
     A subsidiary of Rogers Wireless Inc. since November 2004, Fido offers personal communications services
     and data transmission services in major urban centres in Canada.

     Positron
     Positron develops and manufactures isolation products to protect telecommunications circuits that are
     susceptible to the effects of Ground Potential Rise (GPR).

     Rogers Communications
     Rogers Wireless is a leading Canadian wireless communications provider, with wireless, GSM/GPRS and
     analog networks, serving over 7 million subscribers and covering 93% of Canada's population (including
     Fido customers).

     Telus
     Telus is a major national leader in the telecommunications industry. TELUS stands apart with its next-
     generation network based entirely on internet protocol (IP).

     Virgin Mobile
     Virgin Mobile Canada is part of Virgin Group, a combination of companies that spans the world.

     Internet Access Services


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TELECOMMUNICATIONS                                                                                          PAGE 6



     Allstream
     Allstream is a major supplier of communications solutions offering a full range of connectivity, infrastructure
     management and IT services.

     B2B2C (internet access, hosting, business, local and long-distance telephony)
     B2B2C is a web hosting and internet service provider (ISP), offering a complete range of web applications,
     for businesses and individuals.

     Île sans fil (satellite internet access in Montréal)
     Île sans fil is a non-profit organization (NPO) whose mission is to provide free wireless internet access in
     Montréal.

     Xit télécom (internet access, local, business and long-distance telephony, network management, hosting)
     Xit télécom facilitates implementation, both at the financial and logistical levels, of broadband private
     telecommunications networks. It enables its clients to enjoy open, accessible networks independent of
     telecommunications service providers.

     Wireless Electronic Games
     Airborne Mobile, 3rd in the 2006 Deloitte Canadian Technology Fast 50 with revenue growth of over 33
     000% over five years, specializes in content for wireless platforms: from screen wallpaper to ringtones as
     well as video clips and games.

     Gameloft, founded in 1999 and located in Montréal since 2000, develops and publishes electronic games
     for wireless platforms. Gameloft creates its own games as well as developing games for others.




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TELECOMMUNICATIONS                                                                                          PAGE 7



     Industry-leading Companies
     Equipment Manufacturers
     Selected Telecommunications Equipment Manufacturers in Québec

     Advantech AMT is a company with an international reputation specializing in the design and manufacturing
     of hyper-frequency communication products for satellite communication ground station applications, (L-Band
     to Ka-Band) as well as for wireless base stations (PCS, MMDS, 3.5GHz and LMDS).

     Bluestreak Technology has created the MachBlue™ platform, a Flash®-based presentation engine for
     embedded devices enhanced with extensions for mobile phones, set-top boxes and consumer electronics
     devices.

     Cellfish Media boasts a catalogue of over 100,000 pieces of mobile content, games and applications that
     are widely recognized in the US and Europe for their originality, quality and relevance.

     Dialogic develops interface cards for unified messaging servers and VoIP gateways.

     Ericsson Communications (Sweden) — R&D centre in Montréal
     • Provider of complete voice, data and multimedia file transmission solutions.
         • Develops software for the next generation of data- and Internet-optimized wireless networks
            (strategic partnership with Microsoft for development of WAP devices and software).
         • Develops new network and systems architectures based on advanced open systems technologies.
         • 1 500 employees and the Montréal R&D centre.

     Exfo is a leading provider of test and service assurance solutions for network operators and equipment
     manufacturers in the global telecommunications industry. The Telecom Division offers a wide range of
     innovative solutions extending across the full technology lifecycle-from design to deployment and service
     assurance-and covering all network infrastructure layers in order to enable triple-play services and next-
     generation, converged IP networking.

     Humanware develops innovative products to enable people with visual disabilities to participate effectively
     in today's mobile society. Its product line includes talking GPSs and personal digital assistant (PDA) devices.

     Mediatrix has developed VoIP access equipment enabling enterprise networks to migrate progressively to
     IP technologies.

     Miranda Technologies is a world leader in designing high-definition audio/video communication systems
     for the broadcasting industry.

     Oz Communications (Nokia) develops cellular telephony software and solutions.

     SolaCom Technologies built the first digital voice switch for air traffic control to be used in North America.

     SR Telecom is a leader in developing WIMAX products. Its broadband wireless access solutions have been
     deployed in over 130 countries.

     TelcoBridges has developed the highest-density and most energy-efficient media gateway on the market
     and signed agreements with telecom operators around the world.




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TELECOMMUNICATIONS                                                                                       PAGE 8



     TeraXion, a leading designer of products for high-speed fibre-optic transmission networks, will provide the
     photonic local oscillator systems used to synchronize the 64 antennas of the world's most powerful radio
     telescope, located in Chile.

     Ultra-TCS is a leading global developer and manufacturer of advanced radio products that serve as the
     backbone of modern, high-capacity tactical communication networks.

     Vantrix specializes in developing 2.5G and 3G wireless telecommunications multimedia products and
     applications as well as audio coding products.

     VoiceAge has developed an audio codec.

     Wavesat, a global leader in advanced semiconductor solutions for worldwide mobile device manufacturers,
     developed the core architecture for its fourth-generation (4G) technology for broadband applications
     including mobile WIMAX, LTE, etc.




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TELECOMMUNICATIONS                                                                                       PAGE 9




     Labour
     A Network of Institutions of Higher Learning
     Québec boasts an education system that is able to supply and replenish a skilled and multidisciplinary
     labour force. Its seven universities (four French-language and three English-language) encompass 18
     institutions with numerous programs in applied sciences, eight of which offer a complete range of
     engineering programs.

     Montréal alone is home to two French-language and two English-language universities:
        • Université de Montréal
        • Université du Québec à Montréal
        • McGill University
        • Concordia University

     Québec-based companies also have access to a variety of work-study programs in engineering and
     computer science offered by Québec universities.

     In 2008, Québec universities awarded almost 5,500 diplomas in computer sciences, computer engineering,
     electrical engineering and other related programs, almost 74% of them in the Montréal area.




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TELECOMMUNICATIONS                                                                                                           PAGE 10



                  Enrolment and Degrees Awarded, Québec Colleges and Universities, 2008
                                 Computer Science and Related Programs
                                   University studies    University studies
     Programs                                                                        Total
                                     Undergraduate            Gratuate
                                  Students Graduates Students Graduates Students Graduates
                                           Computer Sciences
     Computer Science              2,806        673      1,254        402     4,060        1,075
     Computer Engineering           296         65         70         24       366           89
     Electric Engineering           956         195       182         54      1,138         249
     Sous-total                    4,526       1,067     1,949        599     6,475        1,666
                                            Related Programs
     Applied Mathematics             31         21         51         14        82           35
     Aerospace Engineering           35          7        112         33       147           40
     Civil Engineering             3,524        526       845         237     4,369         763
     Mechanical Engineering        4,398        892       849         251     5,247        1,143
     Industrial Engineering        1,350        342       474         166     1,824         508
     Physic Engineering             296         65         70         24       366           89
     Subtotal                      9,634       1,853     2,401        725    12,035        2,578
     Total                         17,678      3,847     5,219       1,583   22,897        5,430

     Source: Ministère de l'Éducation, Loisirs et Sports. Gestion des données sur les effectifs universitaires, June 2009.




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TELECOMMUNICATIONS                                                                                      PAGE 11




     Research & Development
     The telecommunications sector is considered the most dynamic in all of Québec when it comes to R&D. This
     sector alone is responsible for 30% of all R&D conducted here. Moreover, it includes Québec's most
     extensive collaborative network for R&D.

     Telecommunications research is conducted in universities, private laboratories and several public
     institutions, including the National Optics Institute (INO) and the Computer Research Centre of Montréal
     (CRIM).

     Research & Development Sector

     Centre de recherche informatique de Montréal (CRIM) is an information-technologies applied research
     centre that develops cutting-edge technologies and transfers them to companies to foster their commercial
     success and help create high-tech jobs. Most of the centre's R&D projects involve transferring technologies,
     expertise and knowledge, training graduates and networking.

     Institut national de la recherche scientifique-INRS-Énergie, matérieux et télécommunications (EMT) at
     Université du Québec conducts research into voice and image transmission, wireless communications, data
     processing techniques for telecom systems, as well as network architecture and administration.

     Institut national d'optique (INO) specializes in designing and developing optical and photonic solutions for
     SMEs and large corporations. INO excels in a wide range of fields within optics and photonics: biophotonics,
     bolometers and IR modules, 3D sensors, fibre sensors, optical design, beam shaping, specialty optical
     fibres, lasers, fibre lasers, vision systems, MEMS/MOEMS, laser micromachining, lidar and remote sensing,
     technologies for space and astronomy, and applied spectroscopy. Fully 80% of INO's 225 employees have
     advanced scientific or technical training.

     National Research Council (NRC), Canada's premier science and technology research organization, is a
     leader in scientific and technical research, distribution of technology and dissemination of scientific and
     technical information. Working in partnership with innovative companies, universities and research
     organizations worldwide, it focuses on several sectors, including information technology (IT) and
     telecommunications.

     PROMPT-Québec is a non-profit organization whose mission is to enhance industry's competitive edge
     through partnerships with Québec's university research community.

     PROMPT-Québec partnerships render all participating companies eligible for the tax benefits related to R&D
     investments. These partnerships are enabled by the human resources and infrastructures of Québec's
     universities and therefore increase the leverage of public investments in this realm.

     Its objectives:
          • Boost the sector's economic return;
          • Strengthen links between universities and industries;
          • Create the scientific and technological environment needed to attract new companies;
          • Increase support for industries through pre-competitive research on the basis of university-industry
             partnership and activities focusing on product development;
          • Encourage concerted action among researchers for the development of large-scale projects;
          • Increase the pool of highly qualified personnel;
          • Foster the growth of spin-off companies.




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TELECOMMUNICATIONS                                                                                          PAGE 12



     CANARIE, Canada's leader in advanced Internet applications, is a non-profit organization dedicated to
     accelerating development of the Internet in Canada and the creative applications that exploit the power of
     that infrastructure to benefit Canadians. This public- and private-sector partnership established CA*net 4 as
     the world's first, fastest and longest all-optical research and education network.

     In addition, various telecom operators have set up innovation laboratories and begun to invest heavily in
     R&D, particularly in areas such as IP networks, mobility, e-commerce, and multimedia. As just one example,
     Bell sponsors 17 industrial chairs under its Bell University Labs (BUL) program, which helps train a highly
     qualified workforce.

     The public and private sectors have a long-standing tradition of creating partnerships and joint initiatives to
     implement infrastructure-building projects like the Réseau national intégré de radiocommunication
     (integrated national radiocommunications network, or RENIR), the upgrading of the Québec government's
     Réseau de télécommunication multimédia (multimedia telecommunications network, RETEM), and the
     Réseau de télécommunication sociosanitaire (social and health services telecommunications network,
     RTSS).




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TELECOMMUNICATIONS                                                                                   PAGE 13




     Operating Costs
     According to the 2008 International KPMG comparative study on business location, the annual operating
     costs of telecom equipment manufacturing facility in Quebec are, on average, 7.3% lower than the average
     costs in American cities.



     Comparison of Annual Operating Costs
     Telecommunications Equipment (United States = 100)




     Source: KPMG's Guide to International Business Location—2008 Edition (Update).


     Comparison of Annual Operating Costs
     Telecommunications Equipment (United States = 100)




     Source: KPMG's Guide to International Business Location—2008 Edition (Update).




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TELECOMMUNICATIONS                                                                                        PAGE 14



     Operating Costs
     Labour
     Competitive Labour Costs
     According to a KPMG study (2008), labour costs are more competitive in Québec than in other industrialized
     countries.

     Here is an example of cost differential and distribution in total pay for a worker in Québec and in the United
     States.

                                              Comparison of Average Salary
                                            in Québec and in the United States
                                           (US$, Telecommunications Industry)
                                                                 Sub-total:
                         Average                                   Social
                                         Statutory    Optional
                          salary                                  benefits     Total pay
                                         benefits     benefits
                         (KPMG)                                 (Statutory &
                                                                  optional)
     Montréal, QC         43,442          4,467        9,208       13,675       57,117
     Boston, MA           55,392          4,658       14,758       19,416       74,808
     New York, NY         56,708          5,500       17,392       22,892       79,600
     San Jose, CA         59,050          5,048       13,958       19,016       78,066

     Source: KPMG's Guide to International Business Location—2008 Edition (Update).




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TELECOMMUNICATIONS                                                                                          PAGE 15



     Operating Costs
     Space Rental
     Cost-effective Space Rental


                                                      Rental Cost, Office Space*

                                                 US$/ft2         US$/m2
     Montréal, QC                                 25.22          271.37
     Dallas, TX                                   25.80          277.61
     New York, NY - Downtown                      49.70          534.77
     San Jose, CA                                 40.30          433.63
     Washington, DC                               50.20          540.15
     Frankfurt, DE                                50.46          542.95
     London, GB (City)                            82.85          891.47
     Paris, FR                                    80.56          866.63

     Source: Colliers International, Global Office Real Estate Review 2009.
     *Data of 4th quarter of 2008. The average rent quoted per square foot per annum for a class A office
     building within the CBD.
     * 1m2 = 10.76 pi2




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TELECOMMUNICATIONS                                                                                        PAGE 16




     Financial Solutions and Taxation
     Financial Solutions
     Investissement Québec can assist you with your expansion plans, providing consulting services as well as
     financing assistance. In addition to being an economic development agency, we are also a financial
     institution. We have several financial solutions for you.


     SMB Financial
     We can provide a loan guarantee, i.e. a repayment guarantee on a loan, a line of credit or a letter of credit
     granted by a financial institution. We also offer loans. Two components of our SMB Financial program are
     likely to interest you:

         •   Interim financing of tax credits
         •   Technological and design innovation


     Renfort
     We can offer you a loan guarantee or a loan ranging from $250,000 to $15 million to improve your working
     capital or finance the purchase of equipment.

     Strategic Support for Investment Program
     If your company is planning an investment or seeking to develop a new product, we can provide various
     types of loans, a loan guarantee or a non-repayable contribution.

     The Strategic Support for Investment Program (PASI) favours investments that target diversification or
     consolidation of a particular sector, and product development that is distinctive because of its innovative
     nature and commercial potential.


     Another government program can assist companies in the telecommunications sector:

     Investment Tax Credit
     A business that acquires new manufacturing and processing equipment before January 1, 2016 can receive
     this tax credit, which can vary between 5% and 40% depending on the region.




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TELECOMMUNICATIONS                                                                                                              PAGE 17



     Financial Solutions and Taxation
     Measures to Stimulate R&D
     Certain Québec tax measures enable companies to realize considerable savings on R&D costs. The real
     cost of a CDN$100 R&D expenditure may be as low as CDN$35.


                              Net cost of CDN$100,000 R&D expenditures incurred in Québec
                               by a large corporation or by a foreign-controlled corporation
                                             in the non-manufacturing sector

     Example 1: A corporation incurs expenditures of $100,000 on R&D; i.e., $65,000 for the salary of a
     researcher.
     Example 2: A corporation incurs expenditures of $100,000 on R&D; i.e., $80,000 for the salary of a
     researcher and $20,000 for subcontractors.

                                                                                                  Example 1                    Example 2
     Expenses                                                                                          $                         $
     A - Salaries                                                                                     100,000                         80,000
     B - Subcontractors                                                                                    —                          20,000
     C - Total R&D expenditures                                                                       100,000                        100,000
     Québec tax credit
     E - (Salaries (A x 17.5%) + subcontractors (B x 50% x
                                                                                                       17,500                         15,750
     17,5%)
     Federal tax credit
     Total expenditures (C)                                                                           100,000                        100,000
                             1
     Overhead (A x 65% )                                                                               65,000                         52,000
     Less Québec credit                                                                              (17,500)                     (15,750)
     F - Expenditures eligible for credit                                                             147,500                        136,250
     H - (F x 20%)                                                                                     29,500                         27,250
     I - Total tax credits                                                                             47,000                         43,000
     Net cost for the corporation (C-I)                                                                53,000                         57,000
     Tax savings (when profits are earned)
     Federal ((C - I) x 19%)                                                                           10,070                         10,830
     Québec ((C - H) x 11.9%)                                                                            8,390                         8,657
     J - Total tax savings                                                                             18,460                         19,487
     Net cost for the corporation (C-I-J)                                                              34,540                         37,513

     [1] Proxy method used to calculate overhead. Under this method, overhead actually incurred is replaced by 65% of R&D salaries.

     Source: Investissement Québec and Raymond Chabot Grant Thornton, April 2009.




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TELECOMMUNICATIONS                                                                                                                  PAGE 18



     Financial Solutions and Taxation
     Corporate Tax Rates
     Among the Lowest Tax Rates in North America
     In Québec, the corporate tax rate of 29.90% is one of the lowest in North America. Québec's tax system is
     also very competitive regarding job creation and capital investment.

     <D
                                              Comparison of Income Tax Rates, 2009
                                              Québec, Ontario and American States
                                                 Non-manufacturing Companies
                                                               Effective Tax Rate (%)
                                            1    Province/           City/                                             Outside of
                                    Federal                                         Total
                                                   State       certains States2                                    the reference city
     Québec                          18.00         11.90               --           30.90                                  --
                                                         3
     Ontario                         18.00        14.00                --           32.00                                  --
     California                      31.91         8.84                --           40.75                                  --
     North Carolina                  32.59         6.90                --           39.49                                  --
     Florida                         33.08         5.50                --           38.58                                  --
     Georgia                         32.90         6.00                --           38.90                                  --
                                                        4
     Massachusetts                   31.68         9.50                --           41.18                                  --
     New York *                      29.00         7.105            10.056          46.15                                39.62
     Texas                           34.65         1.007               --           35.65                                  --
     Washington                      35.00           --                --           35.00                                  --


     [1] In Canada, the federal tax rate is 11% for Canadian-controlled private corporations with taxable income of less than CDN$500 000.
     Reduced rates also apply in some provinces for small businesses. The rate of 18% in 2010 will decline to 16.5% in 2011 and 15% as of
     2012. In the United States, the general rate of 35% depends on the company's taxable income. State and city taxes are generally deductible
     from American federal tax. The effective American federal tax rate reflects this deduction.

     [2] Most of the rates used for cities are for 2008, since some rates for 2009 were not available when this document was published.

     [3] Rate reduced to 12%, 11.5%, 11% and 10% respectively as of July 1, 2010, 2011, 2012 and 2013.

     [4] Effective January 1, 2009, the surtax of 14% is repealed. However, the tax rate is restated. Moreover, a tax on corporate capital,
     calculated at the rate of 0.26% must be added to the 9.5% tax. The tax rate on net income will be reduced to 8.75%, 8.25% and 8% for the
     tax years beginning on or after January 1, 2010, 2011 and 2012 respectively.

     [5] Companies are subject to a tax based on the highest of the four amounts. The income tax rate is 7.1%.

     [6] New York City. A 17% surtax, applied on the 7.1% state tax for the metropolitan New York zone, has been added to the city rate of
     8.85%. The three rates may not apply to all companies.

     [7] The State has levied a 1% franchise margin tax. The tax applies to the lowest of the following three margins: 1) gross profit margin; 2)
     total income less remuneration; 3) 70% of total income. Since January 1st, 2009, companies with a income of less than $434,782 have been
     exempted from the state tax.

     Source: Raymond Chabot Grant Thornton and Investissement Québec, 2009.




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TELECOMMUNICATIONS                                                                                        PAGE 19



     Financial Solutions and Taxation
     Tax Holiday for Foreign Researchers
     Foreign researchers employed by a company in Canada that does R&D in Québec benefit from a provincial
     tax holiday on their salary for five consecutive years. It is a declining tax holiday computed as follows: 100%
     of employment income the first two years, 75% the third year, 50% the fourth year and 25% the fifth year.
     This measure also applies to other foreign experts; e.g., managers working in innovative fields.




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