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OTTAWA — The Canadian government will ban equipment from Chinese companies Huawei and ZTE from both the country’s 5G and 4G wireless networks, following a review that took three years to complete.
The decision is expected to be announced later today by Innovation Minister François-Philippe Champagne and Public Safety Minister Marco Mendicino
OTTAWA — The Canadian government will ban equipment from Chinese companies Huawei and ZTE from both the country’s 5G and 4G wireless networks, following a review that took three years to complete.
“Telecommunication companies in Canada will not be permitted to include in their networks products or services that put our national security at risk,” Innovation Minister François-Philippe Champagne told reporters Thursday.
“Providers who already have this equipment installed will be required to cease its use and remove it.”
With the move, Canada falls in line with its allies in the Five Eyes intelligence network — the U.S., Australia, New Zealand and the U.K. — who have all already banned or restricted Huawei equipment from their 5G networks.
The Liberals have been promising a decision on a Huawei ban for three years. Asked about why it took so long, Champagne said “this has never been a race. This is about making the right decision.”
Over that time, Canada’s large telecoms have been moving on building stand-alone 5G networks using equipment from other vendors, meaning the Huawei and ZTE ban is largely irrelevant to those networks. So-called non-standalone 5G networks are integrated with older 4G networks.
Both Bell and Telus will have to remove existing Huawei equipment from those older networks. Telus warned the government back in 2019 that “a full ban on Huawei for 5G will force operators to replace their existing 4G Huawei equipment — an expensive and complex proposition over an elongated timeframe.”
Innovation Canada said in a policy statement that telecom companies will have to remove 5G equipment and managed services from Huawei and ZTE by June 28, 2024, and “any existing 4G equipment and managed services must be removed or terminated by December 31, 2027.”
Champagne said Thursday the government would not be financially compensating telecoms. The National Post previously reported both Bell and Telus approached the government about the possibility of being compensated by taxpayers for the cost of removing equipment.
On top of older, previously-sold equipment, Huawei has sold slightly more than $700 million worth of equipment to telecom operators in Canada since 2018, mostly to Bell and Telus.
Margaret McCuaig-Johnston, a China expert and senior fellow with the Graduate School of Public and International Affairs at the University of Ottawa, said that two and five years to remove all the Huawei equipment is just too long.
Though she said she is “fully in favour” of the Liberals’ announcement Thursday, she said she’d hoped the government would go as far as the U.S. and outright ban all of the company’s products, such as consumer items like cellphones.
“There are other elements of what the company provides that can also be a problem,” she said.
The Huawei and ZTE ban stems from the fear that having Huawei equipment in Canada’s next-generation wireless networks is a security risk, especially considering China’s laws that state companies must cooperate with its intelligence services.
This delay only worked to raise serious questions at home and among our allies about the Liberal government’s national security commitments
Innovation Canada said in its policy statement that the Canadian government is seriously concerned the two companies “could be compelled to comply with extrajudicial directions from foreign governments in ways that would conflict with Canadian laws or would be detrimental to Canadian interests.”
Asked what threat Huawei poses to Canada, Public Safety Minister Marco Mendicino said the “examination that was conducted over the last period of time, it was thorough, it was meticulous, it was on the strength of the advice that we get from our national security partners.”
The government will also soon introduce legislative framework for protecting critical infrastructure in the finance, energy, telecom and transport sectors, Mendicino said. Critical infrastructure has become more vulnerable to cyber-attacks over the past decade as it’s been increasingly connected to the internet.
In separate statements, the opposition Conservatives, NDP and Bloc Québécois all essentially said: it’s about time.
“The Liberal government’s lack of action on this decision has been an international embarrassment,” Conservative MP Raquel Dancho said. “In the years of delay, Canadian telecommunications companies purchased hundreds of millions of dollars of Huawei equipment which will now need to be removed from their networks at enormous expense.”
The NDP’s Brian Masse said the decision was “long overdue” and ultimately may have hurt Canada’s reputation in its intelligence allies’ eyes.
“It has taken the Liberal government three years to make this decision while the other Five Eyes countries made their positions known much sooner. This delay only worked to raise serious questions at home and among our allies about the Liberal government’s national security commitments and hampered the domestic telecommunications market.
The Bloc Québécois said it welcomed the “tardy” decision, and insisted that no government money would be spent compensating telecom giants who already have Huawei technology in their systems.
TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.
The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.
“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.
The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.
But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.
Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.
“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.
“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”
Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.
The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.
In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.
Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.
The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.
The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.
Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.
Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.
It will also re-evaluate its design ranks.
Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.
Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.
This report by The Canadian Press was first published Sept. 13, 2024.
Companies in this story: (TSX:ROOT)
The Canadian Press. All rights reserved.
VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.
No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.
About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.
Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.
Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.
A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”
This report by The Canadian Press was first published Sept. 12, 2024.
The Canadian Press. All rights reserved.
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
Companies in this story: (TSX:TRZ)
The Canadian Press. All rights reserved.
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