MONTREAL Cogeco Inc. has announced that its plans to introduce mobile services in Canada are progressing as scheduled, with the company beginning to enroll customers who are already subscribed to its existing services. This statement was made by President and CEO Frédéric Perron during the company’s earnings call for the second quarter held on Thursday.
Perron highlighted that the preparations for the wireless service launch are “progressing well,” and he noted that the demand for the service has exceeded expectations since the company opened pre-registrations for current Canadian wireline customers. This indicates a strong interest from their existing customer base in adopting Cogeco’s new mobile offerings.
The Montreal-based telecommunications provider has indicated plans to roll out wireless coverage across its broadband service areas in Ontario and Quebec in the upcoming quarters, although a specific timeline for this launch has yet to be disclosed. The expansion into mobile services represents a significant move for Cogeco as it aims to diversify its offerings beyond broadband internet.
In addition to its operations in Canada, Cogeco has been successful in the United States, where it began providing wireless service under the Breezeline Mobile brand last year. This service was launched for customers across 13 U.S. states where the company already provides broadband internet services. The expansion into wireless in the U.S. has reportedly yielded positive results, with Perron noting that subscriber growth has been increasing, thereby helping to reduce churn within its wireline business.
In terms of financial performance, Cogeco reported a profit attributable to shareholders amounting to $18.2 million in the second quarter. This figure reflects a decline from the earnings of $24 million reported during the same period in the previous year. The decrease in profit highlights some challenges the company may be facing, even as it works to expand its services.
This announcement follows a trend in the telecommunications industry where companies are increasingly looking to offer bundled services to enhance customer loyalty and maximize revenue potential. By entering the mobile service sector, Cogeco aims to leverage its existing customer base and infrastructure to drive growth in a competitive market.
The company’s plans indicate that it is strategically positioning itself to meet the evolving needs of consumers, who are increasingly demanding integrated service solutions. Overall, the outlook for Cogeco’s wireless launch appears optimistic, as early customer interest suggests a favorable market environment for its forthcoming services.
