Rogers to Face Financial Hit After Canada-Wide Network Failure


Cable and wireless firm Rogers Communications Inc. said it will give customers a credit worth five days of service as compensation for last week’s network failure, which knocked more than 10 million people offline and temporarily choked Canada’s payments system.

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(Bloomberg) — Cable and wireless firm Rogers Communications Inc. said it will give customers a credit worth five days of service as compensation for last week’s network failure, which knocked more than 10 million people offline and temporarily choked Canada’s payments system. 

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The move is “a first step” to regain the trust of consumers, Rogers spokesperson Chloe Luciani-Girouard said in an emailed statement. “We have been listening to our customers and Canadians from across the country who have told us how significant the impacts of the outage were for them,” she said. 

The company didn’t disclose the financial cost. In the first quarter, Rogers earned C$2.75 billion ($2.1 billion) in service revenue from divisions that provide wireless, cable television and internet service — about C$31 million a day. 

BMO Capital Markets analyst Tim Casey estimated Sunday that the “unprecedented” network collapse, which began Friday morning and stretched into the weekend, would cost the company C$70 million in the third quarter. But that calculation was based on Rogers giving customers a refund for two days of service, not five. 

Industry Minister Francois-Philippe Champagne has called the network problem “unacceptable” and ordered telecommunications companies including Rogers, BCE Inc. and Telus Corp. to reach agreements on emergency roaming and mutual assistance during future outages. There will also be an investigation by Canada’s telecom regulator, the Canadian Radio-television and Telecommunications Commission. 



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