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CRTC ordering Rogers to explain in detail what caused massive network outage – CBC News

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The Canadian Radio-television and Telecommunications Commission (CRTC) is ordering Rogers to explain in detail what caused last week’s network outage, how it affected emergency services and what the company plans to do to compensate customers.

In a letter addressed to Ted Woodhead, Rogers’ senior vice president of regulatory affairs, the CRTC chided Rogers for not being fully transparent with its customers.

“In the first several hours of the outage, it became clear that Rogers was either unable to reassure, or ineffective in reassuring, its customers and providing critical information about what to expect,” the letter reads.

Rogers has yet to explain in detail what caused the outage. Company CEO Tony Staffieri released a statement Saturday blaming a network system failure following a maintenance update. He didn’t provide further details.

The CRTC listed dozens of questions it wants Rogers to answer. Among other things, it wants Rogers to explain the root cause of the outage and how they plan to honour Staffieri’s promise to proactively credit customers’ accounts.

The outage left some customers unable to call 911, despite rules in place meant to ensure that cellphones are able to contact the emergency number even when they don’t have service. The CRTC is asking Rogers to report how many 911 calls could not be completed during the outage.

The company has until July 22 to respond to the CRTC’s questions, the letter says.

On Monday, Industry Minister François-Philippe Champagne convened a meeting of telecom CEOs — including Staffieri — to develop a plan to blunt the impact of future outages on consumers.

“I wanted to make sure that in no uncertain terms they understand how Canadians found the situation unacceptable and they need to take immediate initial steps to improve the resiliency of our network in Canada,” Champagne told reporters after the meeting.

WATCH | Ottawa demands telecoms create backup plan for network outages:

Ottawa demands telecoms create backup plan for network outages

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Duration 2:40

The federal government is giving the big three telecommunications companies 60 days to agree on a plan for assistance during service outages; emergency roaming; and communication about major disruptions.

The CRTC letter says that a number of customers have contacted the commission to complain, and some have even asked for a public inquiry. The letter didn’t rule out a full inquiry but said the company providing answers would be “an initial step.”

Technology analyst Ritesh Kotak said the CRTC asking for answers is a “good start,” but what follows will depend on Rogers’ response.

“It’s going to come down to when we see the answers. Will they be the kind of answers we’re looking for?” Kotak said.

Yuka Sai, a lawyer with the Public Interest Advocacy Group, said the CRTC’s push for accountability may not go far enough and that a public inquiry is the only way for customers and the public to weigh in with their concerns.

“It’s really unclear what’s going to happen, including when the public can expect to see recommendations from the CRTC or whether there will be a forum for public input,” Sai said.

Regardless of what comes out of Rogers’ response to the CRTC, Canada needs to be working on ways to prevent such outages in the future, said Carleton University computer engineering professor Ramy Gohary.

“It’s an easy fix that we should have a backup network, something that actually can cater to the day-to-day needs. We shouldn’t have to face this,” Gohary said. “We know these things can happen. How come … we are not well prepared for it?”

Peter Nowak, a vice president with internet provider Teksavvy, said the government and the CRTC need to push for more competition in the telecommunications industry.

“In many other countries, if one provider goes down, they don’t take the whole country with them,” Nowak said.

Rogers’ outage also affected smaller companies that rely on its network, including TekSavvy. Nowak said Teksavvy is in talks with Rogers to ensure their customers will be compensated as well.

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Transat AT reports $39.9M Q3 loss compared with $57.3M profit a year earlier

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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)

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Dollarama keeping an eye on competitors as Loblaw launches new ultra-discount chain

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Dollarama Inc.’s food aisles may have expanded far beyond sweet treats or piles of gum by the checkout counter in recent years, but its chief executive maintains his company is “not in the grocery business,” even if it’s keeping an eye on the sector.

“It’s just one small part of our store,” Neil Rossy told analysts on a Wednesday call, where he was questioned about the company’s food merchandise and rivals playing in the same space.

“We will keep an eye on all retailers — like all retailers keep an eye on us — to make sure that we’re competitive and we understand what’s out there.”

Over the last decade and as consumers have more recently sought deals, Dollarama’s food merchandise has expanded to include bread and pantry staples like cereal, rice and pasta sold at prices on par or below supermarkets.

However, the competition in the discount segment of the market Dollarama operates in intensified recently when the country’s biggest grocery chain began piloting a new ultra-discount store.

The No Name stores being tested by Loblaw Cos. Ltd. in Windsor, St. Catharines and Brockville, Ont., are billed as 20 per cent cheaper than discount retail competitors including No Frills. The grocery giant is able to offer such cost savings by relying on a smaller store footprint, fewer chilled products and a hearty range of No Name merchandise.

Though Rossy brushed off notions that his company is a supermarket challenger, grocers aren’t off his radar.

“All retailers in Canada are realistic about the fact that everyone is everyone’s competition on any given item or category,” he said.

Rossy declined to reveal how much of the chain’s sales would overlap with Loblaw or the food category, arguing the vast variety of items Dollarama sells is its strength rather than its grocery products alone.

“What makes Dollarama Dollarama is a very wide assortment of different departments that somewhat represent the old five-and-dime local convenience store,” he said.

The breadth of Dollarama’s offerings helped carry the company to a second-quarter profit of $285.9 million, up from $245.8 million in the same quarter last year as its sales rose 7.4 per cent.

The retailer said Wednesday the profit amounted to $1.02 per diluted share for the 13-week period ended July 28, up from 86 cents per diluted share a year earlier.

The period the quarter covers includes the start of summer, when Rossy said the weather was “terrible.”

“The weather got slightly better towards the end of the summer and our sales certainly increased, but not enough to make up for the season’s horrible start,” he said.

Sales totalled $1.56 billion for the quarter, up from $1.46 billion in the same quarter last year.

Comparable store sales, a key metric for retailers, increased 4.7 per cent, while the average transaction was down2.2 per cent and traffic was up seven per cent, RBC analyst Irene Nattel pointed out.

She told investors in a note that the numbers reflect “solid demand as cautious consumers focus on core consumables and everyday essentials.”

Analysts have attributed such behaviour to interest rates that have been slow to drop and high prices of key consumer goods, which are weighing on household budgets.

To cope, many Canadians have spent more time seeking deals, trading down to more affordable brands and forgoing small luxuries they would treat themselves to in better economic times.

“When people feel squeezed, they tend to shy away from discretionary, focus on the basics,” Rossy said. “When people are feeling good about their wallet, they tend to be more lax about the basics and more willing to spend on discretionary.”

The current economic situation has drawn in not just the average Canadian looking to save a buck or two, but also wealthier consumers.

“When the entire economy is feeling slightly squeezed, we get more consumers who might not have to or want to shop at a Dollarama generally or who enjoy shopping at a Dollarama but have the luxury of not having to worry about the price in some other store that they happen to be standing in that has those goods,” Rossy said.

“Well, when times are tougher, they’ll consider the extra five minutes to go to the store next door.”

This report by The Canadian Press was first published Sept. 11, 2024.

Companies in this story: (TSX:DOL)

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U.S. regulator fines TD Bank US$28M for faulty consumer reports

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TORONTO – The U.S. Consumer Financial Protection Bureau has ordered TD Bank Group to pay US$28 million for repeatedly sharing inaccurate, negative information about its customers to consumer reporting companies.

The agency says TD has to pay US$7.76 million in total to tens of thousands of victims of its illegal actions, along with a US$20 million civil penalty.

It says TD shared information that contained systemic errors about credit card and bank deposit accounts to consumer reporting companies, which can include credit reports as well as screening reports for tenants and employees and other background checks.

CFPB director Rohit Chopra says in a statement that TD threatened the consumer reports of customers with fraudulent information then “barely lifted a finger to fix it,” and that regulators will need to “focus major attention” on TD Bank to change its course.

TD says in a statement it self-identified these issues and proactively worked to improve its practices, and that it is committed to delivering on its responsibilities to its customers.

The bank also faces scrutiny in the U.S. over its anti-money laundering program where it expects to pay more than US$3 billion in monetary penalties to resolve.

This report by The Canadian Press was first published Sept. 11, 2024.

Companies in this story: (TSX:TD)

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