Scooping up of N.S.-based internet provider City Wide a sign of the times

The recent acquisition of part of an Atlantic Canada internet provider by a subsidiary of Telus, a Vancouver-based telecommunications company, is reflective of a broader trend in the industry. According to the Competitive Network Operators of Canada, big telecom companies like Bell, Rogers, and Telus have been acquiring smaller independent providers in recent years.

Last summer, Altima Telecom purchased the residential internet customers of City Wide Communications, a Nova Scotia-based company. The sale was not publicly announced at the time, but news of it has slowly emerged in recent weeks. This acquisition is part of a larger pattern where smaller players are being absorbed by larger corporations, leading to a decline in the market share of independent providers.

Paul Andersen, the president of the Competitive Network Operators of Canada, believes that this consolidation is disadvantageous for consumers. Smaller providers often offer more competitive pricing and better service, driving innovation in the industry. For example, independent companies were the first to introduce flat-rate pricing for streaming services, prompting larger companies to follow suit.

City Wide Communications prided itself on being locally owned and operated, offering affordable internet services in Atlantic Canada. With the acquisition by Altima Telecom, customers can expect to benefit from a wider range of products and services, including mobility, home automation, security, health, and entertainment.

While some may feel nostalgic about losing a hometown provider, Peter Menzies, a former vice-chairman of the CRTC, believes that Telus is a competent provider that can earn the trust of customers through quality service and competitive pricing. It remains to be seen how the transition will affect City Wide’s customer base and reputation.

In recent years, other Nova Scotia-based internet providers like Seaside Communications have also been acquired by larger companies. Bradley Farquhar, the CEO of Purple Cow, another independent provider in the region, expressed disappointment over City Wide’s acquisition. He emphasized the importance of smaller companies working together to compete against industry giants, rather than being absorbed by them.

Overall, the telecom industry in Atlantic Canada is undergoing significant changes as smaller providers are being bought out by larger corporations. The impact of these acquisitions on consumers and the market remains to be seen, but the trend towards consolidation is likely to continue in the coming years.