Scooping up of N.S.-based internet provider City Wide a sign of the times
The purchase of part of an Atlantic Canada internet provider by a subsidiary of Vancouver-headquartered Telus is part of a larger trend that's seen smaller independent companies snapped up by big telecoms, according to an industry group.
Altima Telecom bought the residential internet customers of Nova Scotia-based City Wide Communications last summer, according to a Telus spokesperson, although the sale was not announced at the time and news of it only began trickling out in recent weeks.
"A couple years ago, we started to see kind of a mass consolidation where there was acquisitions by many of the major incumbents like Bell, Telus, Rogers, Eastlink and Cogeco," said Paul Andersen, president of the Canadian Network Operators of Canada, a group that represents independent internet and telecommunications providers.
"They all started to acquire smaller players throughout the country."
At the peak, about 10 per cent of Canadians were getting their internet from an independent, he said, a share that's declined significantly in recent years as many decided to sell and became "flanker brands" of major telecoms.
Andersen views that as a loss for customers, and argues smaller providers have brought consumers more choice on price and service. For instance, they were the first to offer flat rates as streaming became popular, he said, pushing the big companies to follow suit.
Locally owned
City Wide has touted itself as "locally owned and operated," offering affordable prices in Atlantic Canada and "the same great internet as the giants, minus the giant markups."
Peter Menzies, a former vice-chairman of federal telecommunications regulator CRTC, said it will be up to City Wide's buyer to earn the trust of customers through price and service. Telus, he said, is a "very competent provider."
"People will feel sentimental about losing the hometown guy," he said. "But I don't think they should rush to a conclusion that that means they're going to be less well served."
Martin Nguyen, a Telus spokesperson, did not say how much Altima paid for the City Wide's residential customers. He said those customers will soon be brought into the Altima fold, while City Wide will continue to serve business customers.
"As a new entrant in the region, Altima is offering customers the added benefits of greater access to a wide range of products, including mobility, home automation, security, health, and entertainment," Nguyen said in an email.
David Pothier, the president of City Wide, did not respond to an interview request.
Independent providers connect their customers with their networks by paying for access to lines operated by large incumbents, according to Andersen.
City Wide is not the only Nova Scotia internet provider scooped up in recent years. In 2021, Rogers Communications bought Cape Breton-based Seaside Communications.
Bradley Farquhar, the CEO of Purple Cow, another Nova Scotia-based independent internet provider, said City Wide is a great company that had a similar mission to his operation, which is to drive down costs.
Purple Cow, he said, has tens of thousands of customers and has been approached numerous times by big players, but it has refused to sell.
"We feel it's just disappointing for Citywide to be no longer, and to be gobbled up by the big guys," he said. "It's easier to fight in pairs and to work together against the big guys than be standing alone.
"So I think it's just a loss to the province of Nova Scotia and the Atlantic provinces to see City Wide now gone."
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