Cogeco, a Montreal-based company, announced that it will launch its wireless services in Canada within the coming months. After expanding its mobile coverage in the United States under its Breezeline Mobile brand, the company states that all the necessary conditions are now in place to offer wireless coverage across Ontario and Quebec, provinces where it is already well-established with its internet services.
Frédéric Perron, CEO of Cogeco, confirmed during the first-quarter earnings call that the rollout of Breezeline Mobile in the U.S. has been successful. Now, plans for Canada are on track, with the goal of offering a mobile service alongside its wireline products, hoping to attract and retain even more customers. Additionally, the company has noticed a strong momentum on both sides of the border, evidenced by a continued growth in internet subscribers in Canada.
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Cogeco plans to expand its mobile network, but not in the traditional way. How? By adopting the mobile virtual network operator (MVNO) model. This approach will allow the company to offer mobile services while primarily using the infrastructure of other operators. This is a strategic decision from the company in terms of cost. Additionally, the company won’t need to deploy its own networks. The MVNO framework, established by the CRTC, aims to stimulate competition in regions where Cogeco does not yet have mobile coverage. However, the company has seven years to develop its own infrastructure.
Although its profits and revenues decreased in the first quarter, Cogeco remains confident. Its cable and internet operations continue to grow. The introduction of its mobile services could help strengthen its position in the Canadian telecommunications market. In short, the company appears determined to play a major role in the Canadian telecom industry.
Source: The Canadian Press via Yahoo
