Outage at Rogers: subscribers will get a five-day credit

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Outage at Rogers: subscribers will get a five-day credit

Two men check cell phones on Friday when Rogers' network was down.

Rogers will extend a five-day credit to customers following a massive network outage that affected phone and internet service for millions of Canadians last weekend.

The outage also disrupted government services and payment systems, prompting criticism and questions from the federal government and the telecommunications regulator.

We listened to our customers and Canadians across the country who told us how significant the impact of the outage was to them, said Chloé Luciani-Girouard, spokesperson for Rogers Communications, in an email sent to CBC. News.

We know we need to earn back their trust.

The spokeswoman called the credit a first step in that direction.

Rogers attributes the outage to a network system failure after a maintenance update.

The telecommunications company previously said that it would proactively credit all of its affected customers and that credit would automatically be applied to their accounts.

But reports indicated that Rogers would only credit customers for two days of lost service, which amounts to $4 to $6 per cell and internet service, TD Bank industry analyst Vince Valentini wrote in a TD memo. Securities.

Some had suggested this was not enough, given the extent of the damage.

CRTC orders Rogers to provide detailed explanation of massive network outage by July 22.

David Soberman, Canadian National Chair in Strategic Marketing at the University of Toronto's Rotman School of Management, said earlier that the company needs to reimburse customers for at least one week of service.

That would probably be the bare minimum, he said.

He suggested Rogers needed to learn a simple rule of business: If customers don't have the x27;feeling treated well, they leave.

“If they lose 5, 6 or 7% of their customers, it will be much worse than [paying] a week of [compensation].

—David Soberman, University of Toronto Rotman School of Management

This is the second time in as many years that the company has been rocked by a major outage. The company's wired and wireless networks were also down in April 2021.

Rogers then blamed a software update at one of its service providers. #x27;equipment.

The company had offered customers discounts for their services, which eventually amounted to a few dollars per customer.

Last January, the Toronto-based communications giant reported quarterly net income of $405 million.

Rogers says it provides services to approximately 11.3 million subscribers on the Canadian wireless market.

Rogers' residential service contract states that if an outage lasts longer than four hours, customers are entitled to one day's credit to their account for each service they own, said Marina Pavlović, acting co-director at the Service Center. Law, Technology and Society from the University of Ottawa, to Aarti Pole, CBC News Network anchor.

Most people don't read this contract, so they don't even know this clause exists.

Rogers has a disclaimer in its terms of use that applies many situations, including breakdowns, says Pavlović.

“And what this clause says is that the company does not guarantee uninterrupted service. Whether that is right or not is a whole other question.

— Marina Pavlović, University of Ottawa Center for Law, Technology and Society

Rogers does not distinguish itself from other telecommunications companies by limiting its liability in the event of an outage, she adds. All telecommunications service providers have clauses like this.

David Finch, professor of marketing at Mount Royal University in Calgary, who previously worked for Rogers , says that if he were still working for the company, his advice would be to offer each affected customer a month of free service.

Such a move would likely represent a huge financial hit, he concedes, but it could end customer anger now.

Dan Kelly, director of the Canadian Federation of Independent Business (CFIB), said on Monday that business owners should get a free month of Rogers service to compensate for the failure. He notes that the latter came as businesses struggle to recover from the COVID-19 pandemic.

“There has businesses in Canada that have been closed for over 400 days…in the past two years, and so every day of sales is absolutely critical in this recovery period.

— Dan Kelly, Canadian Federation of Independent Business

This outage was nothing short of brutal, and is much more than an inconvenience . This came down to cutting into very limited revenue at a very critical time.

Based on text by CBC's Mark Gollom.

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