Cogeco to Launch Wireless Services in Ontario and Quebec
Montreal-based telecom company Cogeco is set to expand its services by introducing wireless offerings in Ontario and Quebec. The company aims to build on its success in the United States, where it launched Breezeline Mobile across 13 states in 2024.
During its recent Q1 earnings call, Cogeco announced plans to roll out wireless services in Canada within the “coming quarters,” leveraging the Mobile Virtual Network Operator (MVNO) framework.
Expansion into Canadian Markets
Cogeco already has a solid presence in Ontario and Quebec, offering broadband internet services. The new wireless plans will integrate with its existing internet packages, mirroring the Breezeline Mobile bundle model used in the U.S. Customers will need an internet subscription to access mobile services.
CEO Frédéric Perron emphasized the company’s readiness to enter the market, stating:
“We’ve now rolled out Breezeline Mobile, and our Canadian wireless effort is well on track to go to market over the coming quarters.”
MVNO Framework and Its Role
Cogeco’s entry into the Canadian wireless market will utilize the facilities-based MVNO model, introduced by the Canadian Radio-television and Telecommunications Commission (CRTC) in 2021.
The MVNO framework allows smaller telecom providers to offer mobile services over networks owned by major carriers such as Bell, Rogers, and Telus. However, the model requires regional providers to build their own networks in the areas they serve within seven years.
Cogeco has already signed agreements with a national network operator and Nova Scotia-based Eastlink.
Learning from U.S. Success
Cogeco’s Breezeline Mobile brand has gained traction in the U.S., where it bundles mobile plans with internet services. By offering seamless integration between internet and mobile services, the company aims to improve customer retention.
This strategy is expected to continue in Canada, providing consumers in Ontario and Quebec with:
- Competitive pricing.
- Convenient bundling options.
- Access to mobile services without requiring a major carrier.
Challenges and Opportunities
While the MVNO model enables competition, regional providers face challenges in building their own infrastructure to meet CRTC requirements. This has limited MVNO adoption to providers like Cogeco and Quebecor, which owns Videotron, Freedom Mobile, and Fizz Mobile.
Cogeco’s expansion represents another step toward increased competition in the Canadian wireless market, offering consumers more choices and potentially reducing costs.
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