NDP critic calls for Rogers to reverse price hikes or be blocked from federal contracts

New Democratic Party MP Brian Masse (Windsor West) is arguing that Rogers Communications Inc. should reverse an increase in service prices for TV boxes or be barred from bidding on federal contracts. Masse, the party’s critic for Innovation, Science and Industry, told reporters Monday, Oct. 28 that in the past two years, Rogers has won contracts with various government departments worth $165 million. Masse’s pitch followed an article by CBC last week, reporting that customers took issue with what they explained were unexpected increases to the monthly cost for their TV boxes. Those customers expected their monthly payments to Rogers were locked in for two years after signing up for service, but said they were recently surprised by increases to the cost of the TV boxes. CBC reported customers with Rogers TV boxes received notices this summer explaining that the price would go up mid-September due to “rising costs to deliver the latest technology.” However, according to CBC, multiple customers said their TV boxes are the same ones they’ve had for years. Masse argued Rogers should reverse the increased charges for TV boxes or be banned from bidding on federal contracts, saying in a press release there needs to be a “clear and strong signal that there will be consequences for gouging.” “We're asking for the government to cease allowing Rogers to bid for government contracts…,” Masse told reporters. “We don’t believe that they should be rewarded anymore.” The Wire Report has reached out to Rogers for comment on the matter. When asked to reflect on whether removing Rogers from the bidding pool would make for a less balanced competitive environment for contracts, potentially further affecting prices for consumers, Masse said there is not much competition now anyway. “I thought about that, but you know what, there’s such little competition right now amongst the major three , really it will be immaterial. And they also have government contracts as well.” Audrey Milette, spokesperson for François-Philippe Champagne, the Minister of Innovation, Science, and Industry, said in a statement to The Wire Report that the NDP proposal to ban Rogers from federal contracts could significantly impact services for Canadians. "Decreasing competition can have serious consequences, especially in rural or remote areas where Rogers may be the sole option. Encouraging more choices and competition in all regions is essential for maintaining fair pricing and quality service," Milette said, noting that the government expects Rogers to clearly communicate contract terms and pricing changes to customers. Total revenues in Rogers’ third quarter of 2024, ended Sept. 30, were almost $5.13 billion, up one per cent from the just over $5.09 billion it reported for the third quarter of 2023. Cable revenue was $1.97 billion for the quarter, down one per cent from $1.99 billion in Q3 last year. The company’s media revenue was up 11 per cent to $653 million from $586 million, attributed to higher sports-related revenue. Rogers’ profit skyrocketed to $526 million for the quarter, up from a loss in the third quarter of 2023. The company noted that change was primarily due to the $422 million loss it recognized last year related to an obligation to purchase, at fair value, the non-controlling interest in one of its joint ventures’ investments and other factors. Rogers calculated its adjusted net income to be $762 million, a jump of 12 per cent from $679 million in Q3 2023. hdaley@thewirereport.ca

NDP critic calls for Rogers to reverse price hikes or be blocked from federal contracts

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By Hannah Daley
| October 28, 2024

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NDP critic calls for Rogers to reverse price hikes or be blocked from federal contracts

Telecom | By Hannah Daley | October 28, 2024

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