Distributel to end wholesale broadband service later this year

Ottawa-based Distributel, a telecom company acquired by Bell in September 2022, will stop offering its wholesale broadband services later this year.

iPhone in Canada first reported the information last week based on a memo seen by the publication. MobileSyrup has not seen the memo and cannot verify its accuracy, however, some of the details have since been confirmed to MobileSyrup in an email statement from Bell:

“Distributel continues to proudly serve Canadians with a vast array of competitive telecom products and services. After a review of the product portfolio we offer to resellers, we made the business decision to discontinue one product from our line-up. The decision was made based on low demand for the service and the availability of similar products provided by many other companies including Bell’s in the market. Distributel remains dedicated to providing high value telecom products to all Canadians.”

In a follow-up statement, Bell confirmed that the “one product” is Distributel’s wholesale broadband business, which the company said would be discontinued “at the end of this year.”

According to iPhone in Canada, the decision first came to light in a memo that was sent to all wholesale customers on June 1st, 2023. The email stated that Distributel was re-evaluating its product lines and focusing on its core business.

The email stated that no new orders would be accepted and the wholesale portal would be closed. Existing end-users would not be affected until the end of the year, and they’ll be able to cancel their service only via email. The memo obtained by iPhone in Canada also said the service would be discontinued on December 31st, 2023.

Bell’s acquisition of Distributel was criticized by many as reducing competition in the Canadian telecom market. At the time of the acquisition, Bell said that it would provide Distributel with resources and technology to help the businesses grow and that it would “operate independently.”

Now, just a little over a year later, the company is cutting one of its services.

A previous version of this story was published on MobileSyrup last week that did not include Bell’s statement. This is an updated version of the same story.

Via: iPhone in Canada