Cogeco Communications (CCA) investor relations material

Strategic initiatives and wireless expansion

• Launched wireless as an MVNO in Canada, offering 4G/5G with simple, bundled packages requiring internet subscription; currently bring-your-own-device only, with potential to offer devices in the future.

• Wireless offering aims to drive bundling, targeting double-digit bundle penetration over several years, with expected churn reduction benefits based on global industry trends.

• Spectrum assets acquired for MVNO eligibility and future flexibility; potential for monetization or network sharing, but current regulatory restrictions limit immediate action.

Competitive landscape and market positioning

• Fiber competition in Canada has stabilized recently, with a less aggressive promotional environment.

• Expanded digital-only and branded internet offerings in Quebec and across Canada, leveraging known brands and TPIA framework, with cautious marketing investment.

• U.S. operations show improving subscriber trends, especially in Ohio, following network investments and product upgrades; strategies vary by region.

Network evolution and capital allocation

• Selectively converting coax to fiber in areas with high penetration where cost-benefit is favorable, rather than a blanket approach.

• Three-year transformation plan underway: first year focused on management restructuring and cost efficiencies, with ongoing cost reduction and revenue generation through data and AI.

• CapEx intensity expected to decline as subsidized builds in Quebec and Ontario wind down; future growth to come from in-territory expansions and reinvestment of savings.