O-Net's Market Share in Olds at Time of Sale

According to the official Town of Olds O-NET Financial Closure Report, O-NET did not reach much more than 50% market penetration among Olds residents at the time of its sale to Telus Communications in November 2024.olds

This low market penetration was specifically cited as one of the primary reasons for the financial difficulties that led to the sale. The report states that "O-NET did not reach much more than 50% usership from Olds's residents, meaning there was never sufficient support to fund the organization".olds

This market share figure represents a significant challenge for the community-owned broadband network throughout its operational period. Historical data from a 2017 Parliamentary brief indicates that after four years of intensive marketing, O-NET had achieved approximately 40% market share in Olds. The slight improvement to just over 50% by the time of sale in 2024 demonstrates the persistent challenges the network faced in attracting subscribers despite offering competitive gigabit speeds.ourcommons

Several factors contributed to this limited market penetration:

Competition from Major Telecoms: O-NET faced fierce competition from larger national telecommunications companies like Rogers, Shaw, and Telus, which had significantly greater financial resources for marketing and infrastructure upgrades.olds

Infrastructure Costs vs. Revenue: The network was unable to generate sufficient revenue to maintain operations, replace deteriorating infrastructure, and service its $18+ million debt burden.olds

Consumer Choice: Despite O-NET's technical advantages and community ownership model, many residents opted to remain with established telecommunications providers, possibly due to bundled services, existing contracts, or brand loyalty.ourcommons

The Town of Olds ultimately sold O-NET to Telus Communications for $11 million in November 2024, resulting in a $7.8 million loss for the municipality. The sale was necessitated by O-NET's inability to achieve the subscriber growth necessary for financial sustainability, with the Town facing the prospect of contributing approximately $2 million annually for 3-5 years to keep the network solvent.thealbertan+2

This case illustrates the challenges faced by municipal broadband initiatives in competing with established telecommunications providers, even when offering superior technical infrastructure and competitive pricing.

1. https://www.olds.ca/media/1pehbqip/o-net_financial_closure_report.pdf
2. https://www.ourcommons.ca/Content/Committee/421/INDU/Brief/BR9104132/br-external/OldsInstituteForCommunityAndRegionalDevelopment-e.pdf
3. https://www.thealbertan.com/olds-news/price-tag-of-o-nets-sale-to-telus-communications-publicly-disclosed-10599826
4. https://www.mymountainviewnow.com/25680/featured/o-net-financial-closure-report-released-olds-moving-ahead-with-debt-repayment-plan/
5. https://o-net.ca
6. https://www.lakelandtoday.ca/beyond-local/town-of-olds-selling-its-fiibre-optic-internet-phone-tv-service-to-telus-9628511
7. https://www.thealbertan.com/olds-news/town-of-olds-selling-its-fiibre-optic-internet-phone-tv-service-to-telus-9608636
8. https://o-net.ca/o-net-aquisition/
9. https://www.thealbertan.com/olds-news/cheers-and-jeers-as-town-of-olds-sale-of-o-net-to-telus-finalized-9775024
10. https://www.abmunis.ca/system/files/2023-10/Municipal%20Broadband%20Toolkit_2.pdf
11. https://www.thealbertan.com/opinion/letter-olds-contractor-makes-case-for-privatization-of-municipal-operations-10571781
12. https://www.startupecosystem.ca/news/telus-acquires-o-net-community-owned-fibre-project-for-11-million/
13. https://o-net.ca/about-o-net/
14. https://www.mymountainviewnow.com/11235/featured/telus-buying-canadas-first-community-owned-broadband-network-from-town-of-olds/
15. https://cjc.utppublishing.com/doi/pdf/10.22230/cjc.2020v45n1a3527
16. https://www.olds.ca/news-and-notices/posts/town-of-olds-release-o-net-financial-closure-report/
17. https://www.thewirereport.ca/2025/01/07/telus-purchases-alberta-fibre-network-o-net/
18. https://www.cbc.ca/news/science/small-alberta-town-gets-massive-1-000-mbps-broadband-boost-1.1382428
19. https://www.thealbertan.com/olds-news/despite-partnership-o-net-remains-locally-owned-5713073
20. https://regionaldashboard.alberta.ca/region/olds/
21. https://www.olds.ca/council-administration/engagement-and-surveys/
22. https://bcruralcentre.org/olds-alberta-goes-high-tech/
23. https://www.thealbertan.com/olds-news/some-o-net-financial-details-revealed-more-expected-10573832
24. https://www.abmunis.ca/advocacy-resources/resolutions-library/provincial-broadband-strategy
25. https://investolds.ca/olds-alberta-residential-development-surge/
26. https://www.cybera.ca/wp-content/uploads/2020/03/CRTC-Review-Cyberas-Submitted-Response-on-Telecommunications-Wholesale-Services.pdf
27. https://www.statista.com/statistics/266587/percentage-of-internet-users-by-age-groups-in-the-us/
28. https://en.wikipedia.org/wiki/Usage_share_of_operating_systems
29. https://ised-isde.canada.ca/site/high-speed-internet-canada/en/canadas-connectivity-strategy/high-speed-access-all-canadas-connectivity-strategy
30. https://www12.statcan.gc.ca/census-recensement/2021/as-sa/98-200-x/2021004/98-200-x2021004-eng.cfm
31. https://www.pewresearch.org/internet/fact-sheet/social-media/
32. https://www.cupw.ca/en/campaign/resources/broadband-service