MARKHAM, ON – Ice Wireless and Sugar Mobile parent Iristel has filed a lawsuit against Rogers valued at over $147 million alleging breaches of contract on two occasions.
In a statement of claim dated May 23, 2108, Iristel accuses Rogers of breaking an oral Peering Agreement reached between the two in May 2013 that allowed for a direct connection to exchange traffic in Toronto. Iristel says Rogers broke that agreement in May 2016, while it was in the final stages of the testing process and after it had already racked up approximately $600,000 in costs.
Iristel also alleges that Rogers has failed to pay its invoices relating to a written Outbound Termination Service Agreement that the two struck in August 2016. Rogers asked the CRTC to intervene later that year after accusing Iristel of engaging in traffic stimulation, as Cartt.ca reported. After the Commission decision in that matter, Iristel claims that Rogers still owes it for the long-distance services it provided, an amount that it says totals $587,266.97.
Iristel’s lawsuit is also asking for an additional $146 million in damages, plus interest, the cost of the legal action, and any “other relief as counsel may advise.”
In the claim, Iristel adds that Rogers’ actions have “restricted and interfered with (Iristel’s) business operations.”
“Rogers’ conduct, corporate bullying, and attempts at monopolizing the telecommunications market have ensured that a small and/or medium size corporation such as Iristel, does not have equitable opportunity to participate in the Canadian economy and/or provide consumers with competitive prices and product choices”, continues the claim.
When contacted by Cartt.ca, a Rogers’ spokesperson said that “the allegations related to this commercial dispute are without merit but as the matter is before the courts, we cannot comment on the case.”
The lawsuit is the latest salvo between the two companies who also clashed over a roaming agreement. The CRTC intervened in that one as well, ordering Iristel’s discount wireless provider Sugar Mobile to cease its unauthorized use of Rogers’ wireless network.
There is surely more to come with Rogers vs. Iristel…
