Oxio, an independent Internet service provider (ISP), is embarking on an unprecedented approach on the Canadian telecommunications scene: being transparent with consumers and justifying its prices.
“Internet in Canada isn’t exactly known for its transparency. Or its fair prices. Or its healthy competition”, the company said in a press release on Tuesday.
Last week, the Federal Cabinet rejected calls from TekSavvy and other independent ISPs to cut wholesale Internet rates. Canada has some of the highest internet prices in the world.
Service providers had asked the government to reverse a 2021 decision by the Canadian Radio-television and Telecommunications Commission (CRTC) that raised wholesale internet prices paid to the Bell-Rogers-Telus oligopoly by carriers. small ISPs.
Oxio aims to be the most transparent ISP in Canada and relies on a cloud-based operating system and full transparency to drive down prices. The company responded to Ottawa’s decision by sharing a breakdown detailing why its internet service costs as much as it does, and how its prices compare to those of other players. He says he’s doing this because he’s “tired of all the big telecom bullshit”.
“Breaking down our prices is our way of educating people about how the internet business works. We want people to know and understand where their money is going and why their internet costs so, so, so, so much. The world Telecommunications trouble has always kept us in the dark. We decided to do something about it,” said Marc-André Campagna, CEO and co-founder of oxio.
According to the breakdown, oxio makes a profit of $3 on a 60 Mbps internet subscription for which it charges $53. A whopping $40 pays for network usage, with the rest being operating overhead. By comparison, the average market price for a 60 Mbps connection is $64.70, Oxio noted.
The only good thing that comes out of the Federal Cabinet’s decision is a policy direction to encourage long-term innovation and competition.
“We are an innovative player in the industry, we are probably the only independent that is growing at the moment […] We have a flexibility that the others don’t,” added Marc-André.