President and CEO Frédéric Perron said Wednesday that Cogeco plans to cover 12 Canadian markets in Ontario and parts of Quebec in the coming weeks and ahead of a full commercial launch this fall. The company said mobile coverage will be available in its broadband footprint. “We’re ready,” he called the analyst on an analyst’s call to discuss the company’s third-quarter earnings results.
Pricing details TBD as Cogeco, bundles existing subscribers
But Perron declined to share pricing details for its wireless service, saying the company wanted to announce the offers to customers first. He noted that the mobile service will remain a mobile service that subscribes to its wired service. By offering a mobile and internet planning bundle, Cogeco previously described its strategy as aimed at increasing customer retention.
Perron said Cogeco will also provide “time-limited release bonuses” to the first wave of customers who sign up for mobile services. When asked how the “proactive” Kogko plan is determined by pricing, he reiterated that in the long run, the discounts will not be retained. “It’s not a strategy for a country or something like that,” he said. “We’re a rational player. Of course, when you launch a new service, there’s always a time-limited launch offer, but that’s what it is, and it’s a limited-time launch.”
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Cogeco utilizes Canadian Wireless launch MVNO rules
Last year, Cogeco began providing wireless services to customers in 13 states that already offer broadband internet services under its Breezeline mobile brand. In Canada, Cogeco’s mobile coverage is delivered under the framework of mobile virtual network operators, which enables telecommunications to provide mobile services through competitors’ carrier networks.
The MVNO framework was established by CRTC. The rules set by regulators are designed to provide regional operators with a presence in areas they previously did not serve, requiring their own network to be established within seven years.
“Wireless access to our bottom line in a positive way will take some time to become material,” Perron said.
Wireless launch eclipses revenue downgrades and U.S. struggles
Wireless issued the announcement because the company reported that its owners attributed $20 million in profits in the quarter ended May 31, up from $19 million in the same period last year. Cogeco said profit for the quarter was $2.13 per share, up from $1.97 per share in the same quarter last year.
But analysts have negative views on the company’s performance, with Cogeco also revising its 2025 guidance. Cogeco said its revenue forecast for the current fiscal year has dropped to a “unit reduction” compared to last October’s “stable” income for the year.
