MARKHAM – In one of the largest Canadian telecom financing announcements this year, Xplornet Communications (formerly Barrett Xplore), announced this week it has successfully completed a $230 million round of private financing.
The funds will be used to support and aggressively expand Xplornet’s broadband network across Canada to the 2.4 million households beyond the big cities and towns that do not have access to real, affordable broadband. A start-up just six years ago, Xplornet is now one of Canada’s largest telecommunications companies.
"This is an investment in rural Canada that will be nothing less than transformative," said Xplornet’s CEO John Maduri. "This will allow us to complete a job we started six years ago -bringing affordable broadband to every Canadian who wants it, no matter where they live. That is a monumental accomplishment in the telecom industry. Not only is this a ringing endorsement of our business model, it will permit an historic leap forward toward the full digital engagement of rural Canadians."
The company uses a combination of satellite and fixed wireless to serve far-flung Canadian households and businesses.
This funding comes on the heels of Xplornet’s recent announcement that it had successfully started activating its new national 4G network. The company, which by the end of 2012 will have a total of approximately 1,000 towers, is deploying a 4G WiMAX network and two next-generation 4G satellites.
This network will allow Xplornet to reach 100% of Canadians with fast, affordable broadband by the end of 2012. "Wireless is the future of digital telecommunications," said Maduri in the press release, "and only Xplornet has invested this significantly in a hybrid satellite and fixed wireless network for Canada. The fact that we can reach anyone on the second largest country on Earth – despite all the geographic and topographic difficulties – at an affordable price to customers – proves that wireless is the answer to Canada’s rural broadband challenge."
The ability of Xplornet to secure a financing of this size reflects the willingness of investors to bank on a market that is both large and which has significant pent-up demand, believes the company executives. "This funding, which includes a very attractive refinancing of some existing debt, will enable Xplornet’s continued aggressive growth in rural Canada, and position us for continued success as one of Canada’s leading telecommunications companies,” added Gerry O’Reilly, CFO.
