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LRT towing effort fails, further damaging overhead wire and extending closure

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The partial closure of the LRT is continuing into its third day after repair efforts Saturday morning caused further damage to the system for the third time since the breakdown.

According to the latest OC Transpo update early Saturday, Confederation Line trains continue to run on two loops: between Blair and Tremblay stations in the east and between Tunney’s Pasture and uOttawa stations in the west.

R1 bus service remains in place between St-Laurent and Rideau stations.

OC Transpo does not yet have an estimated time for full service to be restored.

In the update, transit services general manager Renée Amilcar said crews successfully removed ice from the overhead wires Friday night.

But when Rideau Transit Maintenance (RTM) sent a train at low speed to tow one of the immobilized trains, it instead caused additional damage to the overhead wire, Amilcar wrote.

3rd time repair attempts caused more damage

After the initial stoppage, the wire was first damaged Thursday when crews attempted to move one of the immobilized trains from Lees station to a maintenance facility.

The towing attempt Saturday morning was the second time since then that RTM had sent a train into that section of the track and the second time it resulted in damage to the wire.

The first time RTM sent a train with a special attachment called a winter carbon strip to remove ice from the overhead wire. The train was unsuccessful in removing the ice buildup and caused further damage to a short section of the wire which Amilcar said would require repairs.

“RTM is now conducting a thorough inspection of that entire section of the OCS [Overhead Catenary System] before further attempts are made to move any trains in and out of that area,” Amilcar wrote on Saturday.

Amilcar added OC Transpo is bringing in “additional external oversight” to closely monitor RTM’s work. The new oversight will supplement the existing oversight firm TRA Inc. that OC Transpo hired in Oct. 2021.

‘Inordinate’ number of incidents

Stuart MacKay, a board member with transit advocacy group Ottawa Transit Riders, said he believes “an inordinate” number of incidents have occurred along the stretch between uOttawa and Tremblay stations.

In addition to the current stoppage, since Sept. 2021 service along that section of rail has been disrupted by a lightning strike, a broken wire, and a derailment.

“I think we have to start having some serious questions about that stretch of track,” MacKay said. “Are we doing everything in terms of preventative measures?”

Regular LRT passenger Gabriel White was forced to take an R1 replacement bus on his way to work Saturday.

Gabriel White waits for an R1 replacement bus outside the Rideau Centre on Saturday. (Guy Quenneville/CBC News)

Speaking to CBC at a bus stop outside the Rideau Centre, White said the train is an important part of his routine commute from Gatineau to the St. Laurent Shopping Centre.

“I depend very much on these trains,” he said. “They have to put the train back on service. It is more efficient, and it is more time-saving.”

Out of service since Wednesday

Two out-of-service trains near Lees station have prevented any trains from running through the section of track between uOttawa and Hurdman stations since Wednesday night.

A sign outside the uOttawa LRT station warns passengers that O-Train Line 1 service is not available due to a damaged overhead wire. (Guy Quenneville/CBC News)

Memos from the city and a Friday afternoon news conference that included the CEO of the track maintenance group explained the cascading set of problems.

A freezing rain warning Wednesday night saw ice begin to fall by 10 p.m. at the international airport, according to Environment Canada.

Video tweeted just after 11 p.m. showed bright flashes and sparks around the system near Hurdman station, which the city said can happen in challenging weather and aren’t necessarily a safety risk.

A broken wire on the overhead power system for Ottawa’s Confederation Line on Friday. (David Bates/Radio-Canada)

Two trains stopped around 11:45 p.m. Wednesday between Lees and Hurdman stations. Amilcar said at the time the stoppage was because of ice buildup on the power system.

Rideau Transit Maintenance CEO Mario Guerra said when the trains stopped, more ice built up on the equipment to the point trains couldn’t get through.

Guerra said Friday after the ice was removed —  which has now happened — the power system would need to be repaired, the two stopped trains removed, and the system tested to ensure trains can run safely.

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Telus prioritizing ‘most important customers,’ avoiding ‘unprofitable’ offers: CFO

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Telus Corp. says it is avoiding offering “unprofitable” discounts as fierce competition in the Canadian telecommunications sector shows no sign of slowing down.

The company said Friday it had fewer net new customers during its third quarter compared with the same time last year, as it copes with increasingly “aggressive marketing and promotional pricing” that is prompting more customers to switch providers.

Telus said it added 347,000 net new customers, down around 14.5 per cent compared with last year. The figure includes 130,000 mobile phone subscribers and 34,000 internet customers, down 30,000 and 3,000, respectively, year-over-year.

The company reported its mobile phone churn rate — a metric measuring subscribers who cancelled their services — was 1.09 per cent in the third quarter, up from 1.03 per cent in the third quarter of 2023. That included a postpaid mobile phone churn rate of 0.90 per cent in its latest quarter.

Telus said its focus is on customer retention through its “industry-leading service and network quality, along with successful promotions and bundled offerings.”

“The customers we have are the most important customers we can get,” said chief financial officer Doug French in an interview.

“We’ve, again, just continued to focus on what matters most to our customers, from a product and customer service perspective, while not loading unprofitable customers.”

Meanwhile, Telus reported its net income attributable to common shares more than doubled during its third quarter.

The telecommunications company said it earned $280 million, up 105.9 per cent from the same three-month period in 2023. Earnings per diluted share for the quarter ended Sept. 30 was 19 cents compared with nine cents a year earlier.

It reported adjusted net income was $413 million, up 10.7 per cent year-over-year from $373 million in the same quarter last year. Operating revenue and other income for the quarter was $5.1 billion, up 1.8 per cent from the previous year.

Mobile phone average revenue per user was $58.85 in the third quarter, a decrease of $2.09 or 3.4 per cent from a year ago. Telus said the drop was attributable to customers signing up for base rate plans with lower prices, along with a decline in overage and roaming revenues.

It said customers are increasingly adopting unlimited data and Canada-U.S. plans which provide higher and more stable ARPU on a monthly basis.

“In a tough operating environment and relative to peers, we view Q3 results that were in line to slightly better than forecast as the best of the bunch,” said RBC analyst Drew McReynolds in a note.

Scotiabank analyst Maher Yaghi added that “the telecom industry in Canada remains very challenging for all players, however, Telus has been able to face these pressures” and still deliver growth.

The Big 3 telecom providers — which also include Rogers Communications Inc. and BCE Inc. — have frequently stressed that the market has grown more competitive in recent years, especially after the closing of Quebecor Inc.’s purchase of Freedom Mobile in April 2023.

Hailed as a fourth national carrier, Quebecor has invested in enhancements to Freedom’s network while offering more affordable plans as part of a set of commitments it was mandated by Ottawa to agree to.

The cost of telephone services in September was down eight per cent compared with a year earlier, according to Statistics Canada’s most recent inflation report last month.

“I think competition has been and continues to be, I’d say, quite intense in Canada, and we’ve obviously had to just manage our business the way we see fit,” said French.

Asked how long that environment could last, he said that’s out of Telus’ hands.

“What I can control, though, is how we go to market and how we lead with our products,” he said.

“I think the conditions within the market will have to adjust accordingly over time. We’ve continued to focus on digitization, continued to bring our cost structure down to compete, irrespective of the price and the current market conditions.”

Still, Canada’s telecom regulator continues to warn providers about customers facing more charges on their cellphone and internet bills.

On Tuesday, CRTC vice-president of consumer, analytics and strategy Scott Hutton called on providers to ensure they clearly inform their customers of charges such as early cancellation fees.

That followed statements from the regulator in recent weeks cautioning against rising international roaming fees and “surprise” price increases being found on their bills.

Hutton said the CRTC plans to launch public consultations in the coming weeks that will focus “on ensuring that information is clear and consistent, making it easier to compare offers and switch services or providers.”

“The CRTC is concerned with recent trends, which suggest that Canadians may not be benefiting from the full protections of our codes,” he said.

“We will continue to monitor developments and will take further action if our codes are not being followed.”

French said any initiative to boost transparency is a step in the right direction.

“I can’t say we are perfect across the board, but what I can say is we are absolutely taking it under consideration and trying to be the best at communicating with our customers,” he said.

“I think everyone looking in the mirror would say there’s room for improvement.”

This report by The Canadian Press was first published Nov. 8, 2024.

Companies in this story: (TSX:T)

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TC Energy cuts cost estimate for Southeast Gateway pipeline project in Mexico

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CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.

It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.

The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.

Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.

TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.

The average analyst estimate had been for a profit of 95 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:TRP)

The Canadian Press. All rights reserved.

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BCE reports Q3 loss on asset impairment charge, cuts revenue guidance

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BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.

The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.

On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.

“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.

“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”

Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.

BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.

The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.

BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.

It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.

The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”

Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:BCE)

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