Rogers of Canada credits customers with 5 days of service after massive outage

The Rogers Building, the green corporate campus of Canadian media conglomerate Rogers Communications, is seen in downtown Toronto, Ontario, Canada July 9, 2022. REUTERS/Chris Helgren

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TORONTO, July 12 (Reuters) – Rogers Communications Inc (RCIb.TO) will credit customers with the equivalent of five days of service, it said on Tuesday after the Canadian telecommunications operator suffered a major outage that paralyzed the country’s banking and emergency services last time. the week.

Rogers came under pressure from the Canadian government, customers and politicians during last Friday’s unprecedented glitch that lasted 7 p.m. On Tuesday, the telecommunications regulator ordered Rogers to respond within ten days to its questions about the network outage that affected millions of Canadians.

“We know we need to earn back their trust, and as a first step, we will credit our customers with the equivalent of five days of service,” Rogers said in a statement late Tuesday.

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Rogers, which has about 10 million wireless subscribers and 2.25 million retail internet subscribers, is expected to credit customers between C$65 million and C$75 million in the third quarter due to the outage, Scotiabank estimated. in a note on Monday.

The company reported net income of C$1.56 billion in 2021.

The issue, which also disrupted flights, cast doubt on Rogers’ C$20 billion ($15.4 billion) takeover of Shaw Communications (SJRb.TO). The deal has been blocked by the antitrust agency, saying it would reduce competition in the country, where customers pay some of the highest telecom bills in the world.

Rogers must provide a detailed account of ‘why’ and ‘how’ the outage occurred, and what measures the company is putting in place to prevent future outages, the Canadian Radio-television and Telecommunications Commission said. (CRTC) in a press release.

The CRTC has asked Rogers more than 50 specific questions about the outage and the company has until July 22 to provide its answers, after which the CRTC will decide what further action to take.

“Events of this magnitude that cripple parts of our country’s economy and compromise the safety of Canadians are simply unacceptable,” the CRTC said.

Rogers did not respond to an email query regarding the CRTC’s request.

On Monday, Canadian Industries Minister Francois-Philippe Champagne announced an investigation into the network outages. Read more

Following the outage, payment services company Interac decided to add an additional network provider to protect its operations against future outages. Read more

The Retail Council of Canada, which has nearly 45,000 retailers, told Reuters its members it was quantifying the financial impact of Friday’s network outage on its members.

The Canadian Federation of Independent Business (CFIB), which has 95,000 small businesses, said its members said the impact of the Rogers outage on small businesses “has been enormous” due to the loss of sales on e-commerce sites.

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Reporting by Divya Rajagopal and Anna Mehler Paperny in Toronto Additional reporting by Ismail Shakil in Ottawa Writing by Denny Thomas Editing by Chris Reese and Aurora Ellis

Our standards: The Thomson Reuters Trust Principles.

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