As part of its four-year plan to pour $1 billion into its broadband network, Cogeco is making a $10 million investment in Ontario to bring internet services to more than 8,000 homes and businesses.
Cogeco Connexion, a subsidiary of Cogeco, is working in tandem with the Canadian government to bring downstream speeds of up to 1-Gig to the homes and businesses in Arnprior and Deep River, Ontario. As part of the Canadian government's Connect to Innovate (CTI) program, Canada will kick-in $2 million.
Cogeco Connexion is the second largest cable operator in Ontario and Québec in terms of the number of basic cable service customers served.
In early September, Altice USA and Rogers made a $7.8 billion cash offer to buy Cogeco (CGO) and Cogeco Communications. Rogers Communications owns a 41% share in Cogeco and a 33% stake in Cogeco Communications while the Audet family owns 69% of the voting rights in Cogeco. Under the terms of the proposed bid, Rogers would gain control of Cogeo's Canadian assets while Altice USA would own U.S.-based Atlantic Broadband.
The Audet family has refused the offer, and said it wasn't willing to negotiate further. Cogeco lead director James Cherry said Rogers and Altice USA engaged in "bad faith tactics, some of which created confusion in the market," in their offer after Rogers and Cogeco exchanged letters around mid-September.
Late last month, Rogers Communications put pressure on Cogeco by saying it would invest $3 billion (Canadian) in Quebec's telecom networks if its takeover attempt of Cogeco was successful.
Rogers said it was better equipped to expand rural connectivity and accelerate the rollout of 5G in Quebec. Rogers said it would have 5G enabled across 95% of Quebec over the next five years if the Audet family agreed to sell.
As part of that effort, Rogers said it would commit to spend $1.5 billion upgrade Quebec's networks over the five years, including boosting internet services to 100,000 rural households, among other incentives.
"Rogers may continue making all the investments it wishes in Quebec, but it doesn't need Cogeco to do so," Cogeco said in a statement last month after Rogers outlined its plans for Quebec.