Estimate: Rogers 1-day of service credit for outage totals $17,946,000, or $2.25 per customer

Rogers experienced a network outage yesterday. Wireless customers on all brands – Rogers Wireless, Fido, Chatr – started to express concerns of not being able to make or receive calls and texts at approximately 6:21pm. This lasted until midnight when the carrier declared that services were ‘fully restored.’

Nadir Mohamed, President and CEO of Rogers, stated that “I recognize this service interruption was unacceptable for our customers. We worked as quickly as possible to restore service and it was gradually restored over the course of the evening. I sincerely apologize to all of our customers for this significant inconvenience and appreciate their understanding and patience.”

A press release confirms Rogers will be making good on the downtime by crediting all Rogers and Fido postpaid customers with a 1-day of service credit. No indication of why the prepaid customers are not included in the credit.

According to the Q2 2013 financial results, Rogers has 9,438,000 wireless subscribers. The postpaid subscriber base is 7,976,000 (84.5% of total subs). In addition, Postpaid ARPU (Average Revenue Per User) is $67.36/month. Dividing this number by an average of a 30 day calendar approximately reveals the credit Rogers and Fido customers will receive on their bill: $2.25. Thus, bringing the total writedown for the 6-hour outage to $17,946,000.

If Rogers does decide to extend the credit to Prepaid customers, the total will rise by about $758,000. The number of prepaid customers is 1,442,000 with an ARPU of $15.79/month.

Again, this is only an estimate and not the total Rogers has rebated.

Update – October 10th at 9:05pm: Rogers has decided to also credit prepaid users with 1-day of free service. “To thank you for your patience & understanding, we’ll proactively credit all of prepaid & postpaid wireless customers for 1 day of service.” This is for Rogers Wireless, Fido and Chatr customers.

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