The widespread impact of Rogers’ suspension indicating the need for competition: Experts


The widespread outage of Rogers Communications Inc., which caused problems for 911 services, retailers, and transportation operators on Friday, is often a sign that the incident is a sign that monopoly telecommunications companies need more competition. I issued a warning.

“The power outage reveals a general lack of competition in Canada’s telecommunications,” said Vass Bednar, Master Executive Director of the McMaster University Public Policy Program.

The country’s telecommunications sector is dominated by three major carriers, Logers, BCE Inc. and Telus Corp., whose control over the industry is competing for mobile and internet services in Canada. It was a scholar’s concern asking regulators to intensify. ..

The Competition Bureau is currently fighting Rogers’ plans to acquire Shaw Communications Inc. for $ 26 billion. This is because regulators believe the deal will only strengthen Rogers’ monopoly and will not create a viable fourth carrier. ..

When the outage began on Friday, Rogers, Shaw, and the Competition Bureau had just finished a two-day mediation period that ended unresolved.

The company doesn’t explain outages, expected durations, number of affected customers, or locations, but the tech team promised “we’re working hard to restore service as soon as possible.”

The range of telecommunications companies is very clear when everything from 911 services to GO Transit is affected by the Rogers outage, Bednar said.

“But unless you see people switch providers today or suddenly see new publicly executed options emerge, perhaps consider people’s anger and frustration, like the pending Rogers-Shaw deal. There’s not much you can do right now other than putting it in. It’s being considered. “

She added that people should be compensated for the turmoil.

“It’s a huge expense for Rogers, but even if people’s bills are slightly reduced, they will still have some kind of deficit.”

Rogers said in a statement late Friday afternoon that some customers have already raised credit issues.

“Of course, we will proactively provide credit to all our customers and will soon share more information,” the statement said.

Beanfield, an independent fiber network operator, called the outage a “nightmare for all telecommunications providers,” but said it was also an example of why Rogers, Telus, and BCE have long been concerned about the lack of rivals. I did.

“The lack of competition and choice can lead to buildings where the population of a small town is completely darkened from all communications,” the company said on Twitter.

“Where do you go if you can’t get help from your neighbor? How do you call 911?”

The company added that the business impact would be tremendous as well.

“The consequences of such an outage in the financial sector, lack of functioning ATMs, and lack of functioning bank branches can be catastrophic,” he said.

“Not to mention independent companies across the country that have no way to process payments.”

By Tara Deschamps

Canadian press