Have I got a deal for you -- Telecom version

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A bit closer to my areas of interest... I had written last week about a commercial sports contract that has made two people a nice pile of money. Now, it's Canadian Telecom company Rogers that is on the loosing end of the deal. From the Toronto Globe and Mail:
'A basic rule of punctuation'
It could be the most costly piece of punctuation in Canada.

A grammatical blunder may force Rogers Communications Inc. to pay an extra $2.13-million to use utility poles in the Maritimes after the placement of a comma in a contract permitted the deal's cancellation.

The controversial comma sent lawyers and telecommunications regulators scrambling for their English textbooks in a bitter 18-month dispute that serves as an expensive reminder of the importance of punctuation.

Rogers thought it had a five-year deal with Aliant Inc. to string Rogers' cable lines across thousands of utility poles in the Maritimes for an annual fee of $9.60 per pole. But early last year, Rogers was informed that the contract was being cancelled and the rates were going up. Impossible, Rogers thought, since its contract was iron-clad until the spring of 2007 and could potentially be renewed for another five years.

Armed with the rules of grammar and punctuation, Aliant disagreed. The construction of a single sentence in the 14-page contract allowed the entire deal to be scrapped with only one-year's notice, the company argued.

Language buffs take note � Page 7 of the contract states: The agreement �shall continue in force for a period of five years from the date it is made, and thereafter for successive five year terms, unless and until terminated by one year prior notice in writing by either party.

Rogers' intent in 2002 was to lock into a long-term deal of at least five years. But when regulators with the Canadian Radio-television and Telecommunications Commission (CRTC) parsed the wording, they reached another conclusion.

The validity of the contract and the millions of dollars at stake all came down to one point � the second comma in the sentence.

Had it not been there, the right to cancel wouldn't have applied to the first five years of the contract and Rogers would be protected from the higher rates it now faces.

�Based on the rules of punctuation,� the comma in question �allows for the termination of the [contract] at any time, without cause, upon one-year's written notice,� the regulator said.
Heh... (tm) Rogers now has to pay as much as $28.05 per pole. I really hope that the contract lawyer who spotted that extra comma got a nice corner office and a significant pay raise...

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About this Entry

This page contains a single entry by DaveH published on August 7, 2006 8:39 PM.

Summer Drivers was the previous entry in this blog.

Have I got a deal for you -- Software Licenses is the next entry in this blog.

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