By Ahmad Hathout
Cogeco is still working toward securing a deal with the national carriers to launch its mobile virtual network operator business on their networks, the telecom’s senior vice president and chief financial officer said Friday.
“Where we are right now is we’re still in negotiations…at the same time building what is required to launch as well,” Patrice Ouimet said during the company’s fiscal second-quarter conference call with analysts. “I would say the situation is not that different from what I said last quarter. That being said, we are making progress.”
Ouimet said he couldn’t go any deeper because these are commercial negotiations.
The CRTC said it expected the MVNO-eligible regional carriers – those that have spectrum and networks – to have hammered out a deal with the big three mobile network operators by August, but that was apparently a pipe dream for some competitors.
Quebecor has been among the most outspoken on its difficultly trying to close a deal on wireless network access. It has already gone – and is still going – to arbitration on an access rate.
Meanwhile, Cogeco is gearing up for a spring rollout of its Breezeline mobile brand in the United States, which will operate as a pure MVNO. The offering will rollout gradually in its footprint, which will give it the opportunity to bundle it with Breezeline’s broadband internet offering to improve customer retention.
The company reported that more people are moving up internet speed tiers, which is helping float revenue numbers.
Revenue for the Canadian telecom division was up by 1.4 per cent to $373.5 million, while the American division saw revenues of $357 million, a decrease of 2.8 per cent over the year in constant currency.
On net in Canada, Cogeco added 8,933 internet customers in the quarter, more than the 7,799 it added last year, for a total base of 874,401. The boost was attributed to new customers from its fibre-to-the-home network expansions and the additional customers from the acquisition of the Oxio internet brand.
The company, however, lost 8,194 video customers compared to the 4,335 it lost last year for a total base of 618,478 customers. Cogeco attributed that to consumption trends, including more customers only subscribing to internet services.
It also lost 3,459 landline customers, compared to the 2,095 it lost last year, for a total base of 377,645.
In the United States and on net, Breezeline lost 3,059 internet subscribers, less than the 4,951 it lost last year, for a total base of 660,227. The company lost 5,206 video customers, less than the 8,943 it lost last year, for a total base of 274,939. It also lost 2,701 landline customers compared to the 4,453 it lost last year, for a total of 131,681.
For the three months that ended on February 29, the company reported a slight 0.7 per cent decline in constant currency revenue to $731.5 million compared to the equivalent period last year.
Profit for the period was $98.6 million, a decline of 7.4 per cent over the year.
Photo of Cogeco president and CEO Frédéric Perron
