City of Toronto sells Telecom division to Cogeco
It was somewhat of a historic moment for the city. The City of Toronto has sold it’s telecom unit, Toronto Hydro Telecom to a Montreal cable company called Cogeco for a value worth $200 Million CDN. $75 million of that amount will be used to improve public housing throughout the city. To my experience, the city has performed the right thing because they are cash strapped and in dire need of revenue. First they have introduced a land transfer tax for homes, second they are exploring to sell it’s hydro business to private investors and now they have sold it’s telecom unit to Cogeco.
I went to check out Toronto Hydro Telecom’s own city-wide wireless network two years ago when there was a trial period. The service was quite decent and the price was right.
This is what CEO and president Louis Audet said about the deal:
“This acquisition is another step in the enrichment of the Cogeco business solutions data offering. This state-of-the-art network should complement our existing business telecommunications activities in Ontario and allow future growth for Cogeco Cable in this line of business.”
The deal will be closed at the end of July 2008. As for the future of Toronto Hydro’s One Zone network, it will be most likely rebranded.
References:
“$75M from Wi-Fi sale to be used for public housing.” Toronto Star. 14 June 2008. 14 June 2008. <http://www.thestar.com/News/GTA/article/443356>
“Montreal’s Cogeco Acquires Toronto Hydro.” Montreal Gazette. 13 June 2008. 14 June 2008. <http://www.canada.com/montrealgazette/news/business/story.html?id=8bb1d48f-5b0f-44ce-a31a-3ee91ef6ef00>
“Toronto to spend $75M on affordable housing.” CTV.ca. 13 June 2008. 14 June 2008. <http://toronto.ctv.ca/servlet/an/local/CTVNews/20080613/hydro_one_sale_080613/20080613/?hub=TorontoNewHome>
“$200 Million T.O. Hydro Subsidiary Sale Will Be Used To Fund Housing Repair.” CityNews.ca 13 June 2008. 14 June 2008. <http://www.citynews.ca/news/news_23798.aspx>
