The nationwide disruption, which the minister’s office called “unacceptable,” has led some to question the level of concentration of services in the telecom sector and is also raising questions about the communications giant’s plan to merge with rival Shaw Communications Inc. in a blockbuster $26-billion deal that has already prompted a challenge from the Competition Bureau.
“Beyond the immediate financial impact, increased political and regulatory risk is a possibility,” the analyst said in a note to clients, adding that “arguments for increased competition to reduce future failure risk abound.”Article content “Meetings should occur in public and ideally under oath like in the U.S.,” he said. “No doubt threat actors have witnessed what happened and how financial health care and emergency response can be impaired by a telecom outage.”Article content
Yaghi, the Scotia analyst, said regulatory oversight needs to balance the risk of future failures against the increased costs of building parallel networks, including costs to consumers.“History from other failures, in other parts of the world, shows that regulators have chosen to increase oversight rather than force a complete overhaul of the competitive landscape,” he told clients in his note.
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