Investment overview

Stonepeak has significant experience investing in mission-critical telecommunication businesses globally. In the case of Xplore, we thematically investigated highly defensive residential broadband platforms and devised an investment thesis focused on markets with unique infrastructure topologies and market characteristics.

After evaluating dozens of investment opportunities, we acquired a controlling stake in Xplore in 2020. Backed by strong sector tailwinds, high-speed home broadband connectivity is now widely referred to as the “fourth utility”. Demand continues to rise, underpinned by work from home trends, the proliferation of connected devices, the digitalization of services, and consumer demand for on-demand entertainment and gaming.

Our investment in Xplore is enabling the company to expand coverage and accelerate improvements to its fixed and mobile broadband network throughout Canada. The Stonepeak deal team, with the help of Fran Shammo, the former CFO of Verizon, as an Operating Partner, continues to support the Xplore management team in the ongoing execution of the company’s 5G broadband strategy, including bolt on acquisitions and further investment in the existing network.

Initial investment
June 2020
New Brunswick, Canada
Communications & Digital Infrastructure
As of 2021, approximately 23% of the Canadian population live in rural areas(1)
One of Canada's leading rural-focused broadband providers with an addressable market of ~3.4 million homes
The company addresses more than 2.3 million underserved households

Canada’s vast size, with its varying geography and climate, presents unique challenges to the provision of high-quality broadband Internet access services. According to CTRC, more than 45% of Canadian rural households lack access to a 50/10 Mbps internet connection. Xplore addresses this gap by using a hybrid mix of communications infrastructure, combining fiber and 5G fixed wireless to deliver capital-efficient solutions.

Accelerating improvements to Canada’s rural broadband network

Xplore owns and operates broadband network infrastructure in rural areas across Canada that have limited access to cable or incumbent fiber, delivering a comprehensive solution set to rural communities by offering either a fiber-to-the-home or fixed wireless broadband connection. This combination of technology allows Xplore to offer high-speed broadband to customers in every Canadian province.

The company already serves more than 1.3 million homes and has an addressable market of over 3.4 million homes. Xplore is in the process of building fiber-to-the-home networks and upgrading fixed wireless service across its target markets. It is also rolling out a 5G standalone network serving rural communities, which is supported by its position as one of largest holders of the 3500 MHz spectrum, which is ideal for 5G wireless deployment.

Partnering with local government

Xplore’s management team has deep experience in the telecommunications space and its members are widely regarded as pioneers of high-speed residential broadband in Canada. Supported by the Canadian government, Xplore has already received numerous grants from government and local municipal partners to support the rollout of next-generation broadband connectivity infrastructure in “tough to reach” geographic areas throughout the country.

The rural connectivity opportunity

As of 2021, an estimated 23% of the Canadian households live in rural areas(2) and over 62% of Canadian rural households are underserved by broadband, making Xplore’s total addressable market a significant opportunity.

Backed by government

The Canadian government is focused on closing the gap between urban and rural areas and has committed substantial funding to support infrastructure upgrades. With the continued growth in residential and enterprise data consumption, customers in all geographic areas increasingly demand faster speed and more reliable service, resulting in demand growth persisting through the economic cycle.

The growth of adjacent technologies

Looking to the future, we expect demand for 5G and high-speed rural broadband will continue to increase rapidly. From autonomous vehicles and IoT to drones and telemedicine, the increasing adoption of new adjacent technologies will necessitate expanded internet services to remote areas.

two young women laugh together

Stonepeak actively partners with our portfolio company management teams to responsibly steward the businesses we own from an ESG perspective, and Xplore shares our commitment.

Closing the digital divide

Xplore plays a vital role in bridging the ‘digital divide’ between metro and rural communities, by providing Canadians living in rural areas fast and reliable internet connectivity. Access to high-performance, reliable and affordable Internet services is at the core of socio-economic development for Canada’s rural communities. This is particularly important for enabling work and education from home and access to health services for remote communities.

Broadband adoption linked to improve health outcomes

This is of critical importance to rural communities. Research suggests that broadband expansion improves health and life outcomes, by offering access to remote healthcare providers, online social networks, and educational opportunities. Furthermore, academic studies have found that broadband access has led to more new businesses in rural regions and that high levels of broadband adoption are associated with increased median household incomes and lower unemployment levels for rural residents.

Aerial photo of land and sea 


“In Xplore, we found a premier broadband platform and a leading management team that is dedicated to enabling connectivity to rural Canadians. Through our partnership with Allison and his team, and Steve Weed at WaveDC, we continue to accelerate investment to expand Xplore’s fiber-to-the-home and 5G fixed wireless network – expanding coverage and capacity in rural markets across the country.”

“More than ever, high speed broadband is an essential service. This trend will only become more pronounced in an increasingly digital society, supporting the ability to work from home, conduct distance learning, enable more connected devices and shifting entertainment mediums. With the investments we are making, Xplore’s network continues to be on the cutting edge of hybrid fiber and wireless connectivity.”

“Rural Canadians deserve world-class broadband and we are fixated on delivering for them. Stonepeak’s continued investment is enabling Xplore to accelerate improvements to our broadband network. For our customers, this means unprecedented speeds, unlimited data plans, and fiber / 5G services at affordable prices. Rural Canadians deserve access to the same quality of broadband as in urban Canada. It is time to go faster.”

1. Defined by areas with 150 HH/ or under

2. Defined by areas with 150 HH/ or under

Source: Government of Canada (2020)

See “Terms of Use & Disclaimers” for important information about the statements made above by Stonepeak portfolio company executives and/or operating partners, including in relation to Stonepeak’s relationship with such individuals. While some of these individuals may be Stonepeak fund investors, the statements made herein are meant to reflect their experiences as Stonepeak portfolio company executives and/or operating partners and not their experiences as Stonepeak fund investors (if applicable). Certain of the portfolio companies discussed are controlled by Stonepeak as of the dates these statements were made.