Cogeco won’t be rolling out mobile services anytime soon, the company’s CEO Philippe Jetté indicated on Thursday.
Negotiations to access the networks of incumbent operators as a Mobile Virtual Network Operator (MVNO) are ongoing. The practice allows companies without the proper infrastructure to sell mobile services through the networks of established players.
Securing “satisfactory” rates is “critical to the success of our mobile business,” Jetté said. “We don’t anticipate a material rollout of our Canadian MVNO operations in the short-term as some preparation work remains.”
Cogeco secured 99 licenses under the 3800 MHz spectrum auction, a band that is recognized for 5G networks, for $190.3 million.
The company’s revenue dropped by 1.9 percent year-over-year due to a “lower customer base” in its telecom business in the U.S. This was offset by growth in Canada, where revenue increased by 1.2 percent, “mainly driven” by the acquisition of Oxio in March 2023.
Cogeco added more than 10,000 net customers in its first quarter of the year. Part of this came from new customers under Oxio and fibre-to-the-home network expansions. Over the last quarter, the company passed fibre through 7,769 homes.
This figure was offset by the loss of more than 8,000 video service customers. The company blames the figure on the changes in video consumption trends and a growing proportion of customers only subscribing to the company’s internet service.
Touching on the recent price hikes by competitors during a call with financial analysts, chief financial officer Patrice Ouimet said the company last implemented a price hike in October. He did not specify when Cogeco would implement its next price hike. “We typically have some increases every year. The timing of it can change. The products that are affected can change as well.”
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