TORONTO — As the fallout from the Rogers Communications Inc. service outage continues to play out, one competition expert says she doesn’t think it will “sink”…
In an interview on Monday, University of Ottawa professor Jennifer Quaid said the only way the outage would have a negative impact on the deal would be if there was any evidence showing Rogers displayed a lack of thoroughness in reporting the circumstances due to limited competition in the market.
“We are used to hearing that ‘bigger is better’ when it comes to telecommunication and technology companies, but last weekend’s outage shows that there are also significant risks associated with putting too many eggs in one basket,” he said. “There is strength and value in diversity and decentralization.”
The deadline for Rogers, Shaw and Quebecor to reach a definitive agreement on the sale of Freedom is July 15. Rogers is facing consumer backlash following last week’s outage, with a class action lawsuit filed Monday by Montreal-based LPC Avocat Inc. on behalf of customers with a contract with Rogers, Fido Mobile or Chatr Mobile who didn’t receive services on Friday or Saturday, as well as “persons in Quebec who could not operate with their own device or make transactions because of the outage” during that period.
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