Company struggled with debt to town
By Ahmad Hathout
O-Net, a prominent community gigabit telecom in Olds, Alberta, was acquired by Telus in November after it struggled to pay back a loan it owed the town.
“We’re excited to welcome O-NET to the TELUS family,” a Telus spokesperson told Cartt in a statement. “This acquisition expands our TELUS PureFibre network to Olds, bringing our world-leading PureFibre technology to more residents in Alberta. O-NET customers can also now enjoy greater access to a suite of integrated product offerings, including mobility, home automation, security, health, and entertainment.”
The Vancouver-based telecom said all O-NET team members will join TELUS and operations will continue from the current O-NET location in Olds.
The public was notified of the town’s intention to sell the company to Telus in an advertisement in the October 1 edition of The Albertan, according to the paper.
“Subject to the satisfaction of customary closing conditions, the Town intends to sell all of the issued and outstanding shares and undertaking of the corporation (the proposed transaction) to Telus Communications inc. or its designated affiliate (the purchaser),” the ad said, according to the paper. “Following the completion of the proposed transaction, the purchaser will control all future operations of the corporation.”
Before the deal, O-Net was owned by Olds Fibre Ltd., which was overseen by the non-profit Olds Institute for Community and Regional Development. The broadband project was for a long time used as a leading example of the success of community-owned fibre internet projects.
But the company couldn’t pay back the $14-million loan it borrowed from the town in 2012 and 2014 to build out and maintain the fibre infrastructure. The town sued the telecom into receivership in 2021 so it could get its money back.
The total amount said to be owed to the town is roughly $18 million, which includes a $4-million line of credit, according to The Albertan. While the sale price is private, the town’s chief administrative officer told the paper it will not cover the debt.
Brent Williams, that chief administrative officer, did not respond to a request for comment in time for publishing.
