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Cogeco reports revenue gain in Canadian market, losses in the U.S.

Cogeco Communications reports it only increased its revenue by 1.1 percent in the second quarter of 2023.

The $736.6 million in revenue it pulled came from financial success in its Canadian market. The company offers internet, phone, and video services to 1.6 million customers in Ontario and Quebec. It also offers services to 13 states in the U.S.

Cogeco’s telecom revenue in the Canadian market increased by 1.7 percent year over year, with $368 million in revenue. The company credits this to the addition of high-speed internet services and more profit per customer.

The figures are offset by a 5 percent revenue decline in the American market, partially due to a decline in video and phone customers.

Cogeco also acquired Oxio, a once-independent internet provider, in February. However, the impact of the acquisition isn’t included in the Q2 financial results, as the quarter ended on February 28th.

Image credit: Shutterstock 

Source: Cogeco

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Mobile Syrup

Cogeco acquires ISP Oxio

Oxio is no longer an independent service provider (ISP).

The company will now run under telecom company Cogeco. The company announced the transaction in a press release on February 21st, stating that Oxio will continue to operate independently.

It’s unclear how much Cogeco paid to acquire Oxio.

“With the acquisition of oxio, Cogeco Connexion will now have a second brand to serve the telecommunications needs of Canadians,” Cogeco’s president, Frédéric Perron, said.

Oxio stood out from the rest, promising customer no “teleco bullshit” under its brand. While Cogeco promises that the company will “operate independently and serve its customers using its brand,” only time will tell if that will actually be the case.

Oxio isn’t the only ISP to be acquired by a major player. Telus added Altima and Start.ca to its banner, and Bell added Distributel and EBOX.

Source: Cogeco

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Mobile Syrup

oxio internet is sustainable and affordable without the hassle of large telcos

Canadians typically face challenges regarding internet service options. A household may be in the midst of considering a brand new plan or internet service provider (ISP). However, they may discover that there is a shortage of options available in their area. Naturally, one thing that is often on the mind of customers is pricing. Canadian startup oxio provides lower rates without the restriction of a contract, additional fees, or other typical telecom tricks.

In Canada, three major telecommunication companies dominate the home internet space: Rogers, Bell and Telus. The results of this landscape leave Canadians with limited options for alternatives. Further, the shadow monopoly firmly in place offers Canadians even fewer choices regarding pricing. The Canadian Radio-television and Telecommunications Commission (CRTC) largely determines the pricing models for independent ISPs to access the networks that run off those from the major players.

In Ontario, oxio operates on Rogers and Cogeco’s network. In Quebec, the indie ISP runs off the Vidéotron and Cogeco network and in B.C. it uses Shaw. However, this doesn’t mean customers are simply paying for resold services. oxio operates independently and isn’t a big three-flanker brand.

In Canada, internet pricing continues to increase. Back in 2019, the CRTC attempted to reduce wholesale pricing after they found that telcos were inflating metrics in order to undercut independent ISPs. Rates were lowered based on what it cost the big telcos to operate their networks plus a 30 percent profit margin. While this wholesale pricing was in place for a couple of years, in 2021, it was reversed and the previously inflated rates were reinstated. Canadians currently pay an average of $95 per month for home internet, according to reports. This results in Canada being amongst the top three most expensive countries for internet, with the U.S. and Japan in close proximity.

oxio offers sustainable and affordable internet options to Canadians in select regions across Ontario, Manitoba, Saskatchewan, B.C., Alberta, and Quebec. Those residing in any of these provinces can peruse the company’s website and find an assortment of available plans. oxio offers plans starting at $48/month. oxio provides anywhere from 30Mbps to 300Mbps download speeds and unlimited data. Plus, customers gain access to a number of perks included in the company’s contract-free plan. oxio also promises that it will not inflict unexpected price increases, something many Canadians have come to expect from the larger competitors.

There are a number of independent ISPs in operation in Canada. When compared to the big players, many provide similar unlimited data plans for comparable pricing models. However, what makes oxio internet stand out, in particular, is its brand tone and transparency. The company firmly contests that it provides sustainable services without all the “telco bullshit.” Plus, it’s far too common for the major players to operate as some sort of walled garden by offering expensive internet plans without any explanation as to why pricing is so high. oxio, on the other hand, lays everything on the table. 

For its $50/month 75Mbps plan, oxio claims $37 goes towards the networking cost, $1 is partitioned to logistics, an additional $1 goes towards marketing and $3 for hardware. This then leaves $5 to go towards payroll and the remaining $3 is considered company profit. This level of transparency is refreshing, especially in the Canadian market.

oxio even goes as far as to provide a full, transparent pricing breakdown of why the company’s pricing model is structured this way. This page (which anyone can view on its website) offers a lot of insight. oxio claims to work on the metric of a return on investment of 24 months. In its breakdown, the company explains that the margins in place see oxio paying back the initial activation costs for the client over the first two years. Initial activation costs can fall between $315 and $350. Therefore, it isn’t until Year 3 that the company gains a profit of $70. 

With that in mind, it’s easy to see why oxio would want to stay in the good graces of its customers. This starts with that initial activation on the consumer’s end. As noted, the company does not demand a contract, meaning services can be altered or cancelled. Upon activation, the company ships an eero 6 Wi-Fi router to the customer. It’s easy to connect and if a technician is required, it’s free for the user. Additionally, and surprsing for an internet service provider, oxio provides local customer service that doesn’t come with a three-hour wait time on the phone. 

Currently, oxio’s internet services are rated 4.4 on Google and 4.7 on PlanHub. For a smaller, scrappier ISP, user reviews can mean the world to further adoption. Positive reception can be critical when potential customers are searching for new alternatives. MobileSyrup’s Jonathan Lamont wrote a piece earlier this year discussing his experience using oxio’s service. For a more broad sense of consumer reception, oxio has garnered a small community on its own subreddit

There are likely a lot of Canadians out there that believe they are stuck with the major ISPs and their premium-priced plans. However, oxio’s transparent business model proves that alternatives exist across the country. Since its launch in 2019, it’s become the fastest-growing independent ISP in Canada. This is largely due to its ability to successfully secure $25 million in Series A funding last year. 

If you’re thinking of making the jump to oxio home internet, more information can be found on the company’s website. The company also provides various ways to reach out with any questions you may have.

Image credit: oxio

This story is sponsored by oxio.

MobileSyrup publishes sponsored posts. These partnerships do not influence our editorial content.

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Mobile Syrup

Oxio says internet slowdowns will be deterred for now following a commitment from Rogers

Oxio says it has a commitment from Rogers to fix its internet slowdown stemming from the telecom giant’s July 8th outage.

The independent internet service provider (ISP) sent its Ontario customers an email on July 30th stating they could face potential slowdowns during peak hours (8pm – 10pm). The email detailed how the company requested a capacity increase from Rogers in June to deal with its growing customer base. The increase was to take effect on July 7th, but it never happened, something Oxio said “is pretty normal.” The July 8th outage led Rogers to change the implementation date twice.

But in the company’s most recent email to customers, sent on August 5th, Oxio had good news to report. “We’ve gotten a commitment from Rogers to fix EVERYTHING,” the email reads.

The ISP said Rogers fixed its defective SFP, which provides internet to Oxio’s network, on the 4th. Rogers also increased Oxio’s bandwidth capacity, which should deter any slowdowns customers were experiencing until its June request is approved. Rogers has also committed to more bandwidth capacity as it waits on approval.

While Oxio said the news was good, it wasn’t easy to make it happen, citing the lack of competition in Canada’s internet service market.

“This isn’t the way the internet in Canada should work. We need better relationships between the infrastructure owners…and the few independent internet service providers left. We need laws and regulations from the CRTC that encourage competition. We need more independent internet service providers, not fewer,” Oxio wrote in the email.

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Mobile Syrup

Oxio warns of internet slowdowns for Ontario customers due to July 8 Rogers outage

Independent internet service provider (ISP) Oxio reached out to its Ontario customers via email Saturday to warn of potential slowdowns during peak hours (between 8pm and 10pm). Moreover, it requested customers try to not perform speed tests as it will “clog up the lines” and cause more slowdowns.

You can read a longer explanation below if you’re interested in the details of the internet in Canada, but the short version of what’s going on is Oxio needed a capacity increase from Rogers because of its growing customer base. Oxio requested that increase, but didn’t get it because of the July 8th outage, and is now stuck waiting for Rogers to resume performing network changes to get the increase it needs.

Oxio emailed customers to explain what was going on because it “promised to be up front” about everything. The main takeaways from the email include that Oxio is working on the problem with Rogers and the Competitive Network Operators of Canada (CNOC) since other ISPs might be affected. Another takeaway is that Ontario customers (disclosure, I am one) might experience slowdowns because of this.

Rogers halted network changes, pushing back Oxio’s capacity increase

A segment of the Oxio email explaining what’s going on with Rogers.

Oxio says that its growing customer base requires an increase in capacity in Ontario, and since Oxio runs on Rogers in the province, it needs to purchase capacity from Rogers. However, issues related to the July 8th Rogers outage — called ‘Red Friday’ by some — resulted in Oxio not getting the capacity increase that it needed.

In the email, Oxio explained that it submitted a request to Rogers to increase capacity on June 22nd, and the change was supposed to go into effect on July 7th. Oxio said Rogers didn’t increase capacity when it was supposed to (apparently, “this is pretty normal” with Rogers). However, unlike previous capacity increases, Oxio says Rogers implemented a “company-wide change embargo” after Red Friday.

Again, Oxio says this is pretty normal after an outage since network changes are responsible for most problems. Rogers has already detailed how its maintenance update caused a cascading problem through its core network that ultimately took out wireline, wireless, and several other services nationwide.

The embargo was set to end on July 18th. However, Rogers extended it several times, leaving Oxio with no scheduled date for the capacity increase:

“Since then, Rogers has extended their change embargo twice. The first time until July 25, 2022 and, recently, again for an indeterminate period, which means there’s no scheduled date to complete our request for additional capacity.”

Oxio says it’s not “too worried” about the embargo since it hasn’t hit maximum capacity yet. However, the company says its “rapid growth, means [it is] quickly running out of bandwidth,” which could lead to slowdowns at peak times.

Thankfully, it’s not all bad news. Oxio also told customers it hopes “to have all of this sorted before you notice anything.” The company says it’s talking with “the right people at Rogers” and has reached out to the CNOC because it likely isn’t the only other independent ISP impacted by the Rogers embargo.

Ultimately, if you’re with Oxio or another ISP that runs on Rogers’ network, you may want to keep an eye out for potential slowdowns and avoid doing speed tests until this all gets sorted out.

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Mobile Syrup

Comparison tool HelloSafe partners with Oxio to show internet plans

Insurance and financial product comparison platform HelloSafe announced it’s partnering with internet service provider (ISP) Oxio and will include the ISP in its “dedicated comparators.”

According to a press release from the two companies, Oxio’s internet, TV, and home phone packages will be listed in the comparison experience for Canadians shopping for telecommunications services. Moreover, these items will show up in Quebec, Ontario, and B.C., the provinces in which Oxio currently offers service.

“The world of telecommunications is very, very opaque in Canada” said Caroline Duperré, Oxio’s head of marketing, in the press release.

“There’s no real competition. The HelloSafe comparison platform wants to help us change that by giving all providers an equal opportunity, regardless of the service or product, and offering Canadians a real choice. We’re very excited to partner with HelloSafe and we’d like to use this opportunity to invite other independent telecom providers to do the same.”

Oxio internet on HelloSafe’s website.

HelloSafe, for those unfamiliar with the platform, offers comparisons between insurance and financial products that Canadians can access online. That includes things like life, dental, and travel insurance comparisons, cryptocurrency comparisons, money transfer comparisons, and more.

Oxio, on the other hand, is an independent ISP that resells wholesale internet from incumbents — for example, Oxio internet runs on Rogers and Cogeco in Ontario, Vidéotron and Cogeco in Quebec, and Shaw in Alberta and B.C. However, Oxio also pitches itself as having excellent customer service and fair prices — it even has a breakdown of what each dollar you pay goes toward for each of its monthly plans.

For those curious, I wrote about my experience switching to Oxio recently — you can check that out here.

Source: Oxio and HelloSafe

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Mobile Syrup

Three months in, I’m still satisfied with Oxio internet

Back in April, I wrote about my experience switching to Oxio, an internet company promising no “telco bullshit.” Shortly after writing it, I vanished from MobileSyrup to go on parental leave after my wife had a baby.

I had wanted to write a follow-up to the original piece, and now that I’m back, this seemed like a great time to do it. What follows is some additional information now that I’ve been using Oxio’s service for about three months, and also answers to some questions I received from readers while I was away.

First, my experience so far has been fantastic. I haven’t run into any slow-downs or other issues with my service. I did go a few days without internet following the May 21st storm that slammed southern Ontario, but it wasn’t Oxio’s fault — the company’s service runs on Rogers’ infrastructure in Ontario.

As someone who relies on the internet for both my job (I almost exclusively work from home) and for entertainment (I love to play video games and stream movies and shows since I don’t have cable), consistent, quality service is important. I feel like Oxio has so far delivered. And it seems I’m not the only one — several readers left comments on my previous story detailing their own positive experiences with Oxio.

Finally, I wanted to reiterate that depending on where you live, Oxio service could differ! While my experience with the service has been excellent, Oxio’s internet operates with different providers in some provinces. Again, in Ontario, Oxio uses Rogers. In Quebec, it uses Vidéotron, while in B.C. and Alberta, it runs on Shaw. In other words, there could be differences between the consistency and speed I got and what you’d get in another province.

That about sums it up for me. I’ll be keeping a closer eye on this post, so feel free to ask any questions below and I’ll try me best to answer them. Alternatively, there is a small, fan-run Oxio subreddit and a staff-run Discord channel where you might be able to get answers to questions as well.

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Mobile Syrup

Oxio promises internet without ‘telco bullshit,’ but does it deliver?

I heard about Oxio for the first time earlier this year while listening to a podcast.

The pitch didn’t quite grab my attention at first — I like to listen to podcasts while gaming, and I likely tuned out for the first few times the ad played. Eventually, I clued in that Oxio was an internet company. Specifically, an internet company in Canada and, after looking it up online, one that offered services in my area.

The first thing you see when landing on Oxio’s website is a bold claim: it’s supposedly “the first internet provider you will actually like.” The company also promises no “telco bullshit,” including contracts, unreadable fine print, and “shifty pricing.”

Interestingly, the website also says those looking for the cheapest internet won’t find it with Oxio. However, the plans on offer in my area were still more affordable than comparable plans from other providers.

Needless to say, I was intrigued. Plus, if I used a referral code from the podcast, I could get my first month free. So, I gave it a try.

Easy switch, smooth sailing

Switching to Oxio was a surprisingly smooth process, although that’s likely because of where I was coming from. I’ve used TekSavvy at my apartment for years, and kudos to them for being excellent and reliable the whole time. Still, getting twice the speed for a few dollars less per month from Oxio was hard to turn down.

I live in Whitby, Ontario, and where my apartment is, both TekSavvy and Oxio run off of the Rogers network, so I already had a line into my home. As an aside, I find this incredibly funny since every time I’ve tried to check Rogers’ website for internet prices at my address, the site tells me Rogers doesn’t serve my building.

It’s worth noting that Oxio serves other provinces too. According to the company’s status page, it runs on the Vidéotron network in Quebec and on Shaw in B.C. Oxio offers services beyond internet too, but only in Quebec.

Anyway, a Rogers tech came to check the line before I could set up my Oxio modem and Wi-Fi router. My one gripe here was that I wish Oxio had mentioned to expect a Rogers tech. In hindsight, it makes sense, but at the time I almost ignored the tech’s call because the caller ID showed Rogers and I wasn’t interested in talking to some salesperson at the time. Regardless, the tech was super nice and was in and out in about 15 minutes.

Plug and play

Once the tech was gone, I dug into the package Oxio had sent me with my modem and router. It also had the lovely wrapping paper, some cool stickers, plus a card detailing how Amélie from Quebec-based non-profit Groupe TAQ packed my order. Groupe TAQ helps encourage the socio-professional integration of over 350 people who live with functional limitations.

Oxio includes a free modem and Eero 6 router, and the set-up process was fairly simple. First, I plugged in the modem. Then I plugged the router into the modem. Then, I had faster Wi-Fi.

I ended up sticking with the Asus router I was using before since reviews indicate it has better performance than the Eero 6. While I skipped the router set-up steps, Oxio includes fairly detailed instructions on setting up the Eero 6 and getting started, along with several ways to contact Oxio support if you need help. Ultimately, I think most people will be fine doing the self-install.

It’s been about two weeks since I got my Oxio internet up and running, and I haven’t experienced any issues so far. Granted, I didn’t expect to given that the service runs on the same Rogers line I’ve used without issue for years.

Regardless, going from 150Mbps to 300Mbps was a welcome speed bump, and getting it without paying a higher monthly cost was even better. Naturally, I’ll be paying close attention to the speed and quality of the service going forward, but I have no complaints now.

Finally, I thought it was worth highlighting Oxio’s transparency. The company displays a detailed breakdown of pricing on its website, and its blog offers deeper dives on things like employee salaries. It’s an interesting peek behind the curtain and, in my opinion, worth the read if you care about internet service provider transparency.