Cogeco commits $1 billion over 4 years to upgrade residential internet services

MONTREAL – Cogeco Communications Inc. says it will spend more than $1 billion over the next four years to extend and upgrade its high-speed internet coverage in Ontario and Quebec.

The Montreal-based company says it will roll out networks capable of providing speeds of one gigabit per second, comparable to some of the fastest consumer-grade services available in Canada.

Its key competitor for residential customers in Ontario and Quebec — Bell Canada — has been rolling out a high-speed internet service capable of up to 1.5 gigabits per second but one gigabit per second is still considered very fast.

Cogeco’s current top residential internet speed is about 120 megabits per second or 0.12 gigabits per second.

The company services more than 400 cities and towns in Canada’s two most populous provinces, generally outside of major centres served by Rogers Communications in Ontario and Quebecor’s Videotron in Quebec.

Bell Canada competes with all three of the cable companies with residential internet, television and phone services and against Rogers and Quebecor in mobile wireless services.

Companies in this story: (TSX:CCA, TSX:BCE, TSX:RCI.B, TSX:QBR.B)