'Backroom deal:' Critics question TTC’s quiet extension of Rogers deal

A boost to an already-controversial contract is being called a sweetheart deal after the TTC announced the rights to bring cellphone service to Toronto’s subway system would be extended by a decade.

“As part of this new agreement, Rogers will be our partner until at least 2042,” CEO Rick Leary’s May report reads.

The original 20-year contract, acquired by Rogers Communications through its purchase of BAI Canada in April, was set to expire in 2032.

But days after that deal was done—with other telecom giants decrying the arrangement in favour of a consortium model—the TTC board approved a 10-year extension to the plan.

“Part of the terms of reference was the extension of the contract so there would be some commercial viability there for the project,” TTC spokesperson Stuart Green said Monday.

“So it was fully presented to the board in that way, it was approved by our board., that negotiation took place and was signed off last month.”

• MORE: What you need to know about the Rogers-TTC deal

The TTC had been given the authority to negotiate and extend the contract by the previous council, and Chair Jon Burnside said the product was in the best interest of both the agency and its riders.

“Does the TTC offer an extension and get proper [cell phone] service to people quickly, which I think is the goal here, or do they wait 10 years and put it out to open tender?”

But Daniel Tsai, a University of Toronto and Toronto Metropolitan University lecturer in business, law, and technology, called the extension a backroom deal.

“This raises a lot of red flags in terms of improper governance and breach of fiduciary duty to the people of Toronto,” Tsai said. “They’re saying that they did this in Toronto’s best interest, but the reality is it’s not.”

The TTC said extending the term nearly doubled the guaranteed revenue of the original 20-year contract, with a net benefit of at least $49 million.

Bell, the parent company of CTV News, said in a statement that all carriers should be given access to the infrastructure immediately.

“We continue to advocate for an open, transparent process and we call on TTC leadership and city council to advocate for all transit users, regardless of their choice of wireless provider,” spokesperson Jacqueline Michelis said.

“Rogers should not be allowed to be the gatekeeper that decides when subway riders will get access based on the wireless carrier of their choice.”

Telus continued its call for a consortium approach.

“We continue to work to ensure the best outcome for Torontonians, and invite Rogers and the TTC to share how they plan to establish a reliable solution that meets the needs and expectations of all TTC riders,” wrote spokesperson Martin Nguyen.

Rogers repeated its commitment to providing access to all riders.

“As we have said from the outset, we are committed to working with all carriers."

The TTC has said that under the deal, the entire subway system will have access to a 5G network, regardless of carrier, within two years.