Home » Canada »Cogeco »Competition »Consumer News » Currently Reading:

Cogeco Won’t Lower Your Bill; Warns Customers Not to Be “Victims” of Landline Cutting

Phillip Dampier April 14, 2014 Canada, Cogeco, Competition, Consumer News No Comments

cogecoDespite growing competition from Bell’s fiber-to-the-neighborhood service Fibe, now expanding into many of Cogeco’s outer suburban service areas, Cogeco will not negotiate a better deal for customers, preferring to emphasize its customer service and “right-sizing” bundles of services to best meet customer needs.

As a result of higher prices, Cogeco’s earnings and profits are up for the second quarter of 2014. In the quarter profits rose to $58.5 million — up from $48.9 million during the same quarter a year ago. Revenue rose to $518.4 million from $458.5 million.

“We don’t like competing on price,” said Cogeco CEO Louis Audet said. “I’m not saying it’s zero, but we really don’t like competing on price.”

Audet

Audet

Customers have been offered sign up discounts from Cogeco’s most aggressive competitor on pricing – Bell. But when customers in parts of Ontario and Quebec call Cogeco to negotiate for a lower price, they are largely being turned down.

Audet said Cogeco instead emphasizes that customers will receive better customer service from the cable company, and customer retention specialists are trained to adjust packages to emphasize the services customers want without cutting their cost.

“It’s a right-sizing exercise,” Audet said. “Maybe the person wants a little less video, but they want higher Internet speeds.”

Cogeco isn’t winning the battle to keep its price-sensitive customers, however. The company lost 10,305 subscribers in the second quarter, nearly double the amount lost in the same quarter a year ago. Cogeco now serves 1.96 million Canadian cable television customers.

Customers are also dropping their Cogeco phone service, a decision Audet said makes them “victims” of cell phones. Cogeco permanently disconnected 6,000 landlines in the quarter, up from 5,550 a year ago. It still serves 473,000 phone customers.

The company lost almost 6,000 telephone customers in the quarter compared with additions of 5,550 in the same quarter last year. It had more than 473,000 residential phone customers left.

Despite the customer losses, rate increases more than made up for lost revenue, giving the company a nearly $10 million boost in profits during the second quarter alone.

Search This Site:

Contributions:

Recent Comments:

  • Bill Callahan: Windstream has our house in rural Ashtabula County, OH on its list of addresses that were upgraded (in 2016) with its $175 million in CAF II subsidies...
  • EJ: Charter we appreciate your concern in this manner. We value your complaint and will review it. If need be we send this to arbitration to review the co...
  • Dylan: You could use their router which is an extra $5 a month (a great router usually) or I would recommend looking around either on Amazon or somewhere for...
  • Sean: It is hard to imagine a company with worse customer service than Directv.....as a caretaker for someone who has an account with them and has been a c...
  • Patrick: Thanks, Dylan. What kind of router do you use with that?...
  • Mel Toadvine: Your articles are correct. Nobody can advertise an antenna that will pick up cable and satellite channels because it is absolutely impossible. These a...
  • Dylan:  It’s $66 a month after all promotions are over with; flat rate, no taxes. Here is the rate card for all pricing and billing information. https://www...
  • Patrick: I am in Rochester NY. Does anyone know the cost of Spectrum 100mbps Internet service (no bundle, just internet) including taxes, after the first year...
  • Dylan: More hogwash once again. We all know data caps and usage based billing helps no one and does not “lower” bills for lower usage customers. That’s not h...
  • Proofread Please: Android Chrome, mobile view. It's a mess....
  • Bruce ranciglio: Can I pick any 10 channels plus locals.espn fox sports midwest nbc/sports and MLB channels and fox news with the spectrum streaming service, plus oth...
  • Wayne Martin: The New York State Public Service Commission should drop "Public" from their title as they are certainly not serving us. You can see all the communica...

Your Account: