After EBOX, Distributel and VMedia, another independent internet provider, oxio, was acquired by a bigger company.
Cogeco announced on Tuesday that it had acquired the activities of Montreal internet provider oxio, launched in 2019 and which had made a rapid breakthrough in the Quebec and Ontario markets by focusing on cloud computing and transparency in its rates. Oxio, the statement said, “will continue to operate independently and serve customers under its own brand.”
In May 2021, according to what reported The Press, oxio had 20,000 customers in Quebec and 1,000 in Ontario. 90% of its clientele is between 20 and 35 years old. The young company notably stood out with a detailed explanation of its prices, available on its website. Its 30 Mb/s unlimited internet package, for example, was offered at $50 per month, of which $36 went to the network, $5 to salaries and $4 to oxio profits.
An “attractive brand”
As an independent supplier, oxio mainly uses the Videotron network in Quebec and the Rogers network in Ontario.
“As we make the strategic decision to focus exclusively on growing our software-related business, Cogeco has positioned itself as the best company to serve our internet service customers,” Marc-André said in the release. Campagna, CEO and co-founder of oxio.
“Oxio is an attractive brand that enjoys a high level of customer satisfaction and has an excellent team,” added Frédéric Perron, President of Cogeco Connexion, in the press release. Its residential internet service, based on an all-digital experience, is a nice addition to our wide range of high-quality telecommunications services. »
It has not been possible to speak to Mr. Campagna at the time of this writing. On the Cogeco side, we declined the interview request of The Press. “At this time we are not granting interviews and will not comment on this morning’s announcement as we are focusing our efforts on our employees,” spokeswoman Anastasia Unterner said by email.
PHOTO MARCO CAMPANOZZI, PRESS ARCHIVES
Marc-André Campagna, CEO and co-founder of oxio
Cogeco, the statement said, is also becoming the licensee for the IT platform called gaiia, which will now be at the heart of oxio’s activities.
“Telecoms use hundreds of software, they are poorly integrated and we are making a platform out of it, explained in an interview to The Press Mr. Campagna in 2021. We have developed software for our customer service agents that automates processes that were done by manual tasks. Customers can order in less than 5 minutes. »
CRTC review
Oxio is the most recent independent supplier to be acquired by a larger company, after EBOX and Distributel acquired by Bell and VMedia passed into the fold of Videotron. Telus also made two smaller acquisitions, Altima Telecom of Montreal and Start.ca of London. Asked about this wave of acquisitions of independent suppliers, the new president of the Canadian Radio-television and Telecommunications Commission (CRTC), Vicky Eatrides, had this answer to The Press last January: “For the Internet, it is clear that our policy does not have the effect we were looking for on prices. We are examining the policy, we will come back to this soon. »
Many observers had predicted the disappearance of independent providers after a controversial decision by the CRTC in May 2019, which reversed substantial cuts in the price of wholesale internet. These are the rates that independent providers pay to access the networks of larger providers such as Bell, Videotron, Telus and Rogers.
The co-founder of oxio, Marc-André Campagna, himself warned in an interview with The Press in May 2022 that “a lot of independent gamers are at risk of dying in the next few years”.
“We were in post-traumatic shock from the last decisions [du CRTC] “, he had then declared. However, he had assured that oxio was in good shape. “We are an innovative player in the industry, we are probably the only independent that is growing in the market at the moment […] We have a flexibility that others do not have. »