[Merged] CRTC gets earful on 3-year cellphone contracts

[tkl]

You what?

Guys, the CRTC doesn't mandate 3 year contracts. Fact of the matter is you vote with your wallets. If you don't like 3 year contracts, don't buy into them. Get a 2 year one, buy the phone outright. Can't afford the phone? Don't buy it.

If the US market could sustain 3 year contracts they'd be all the rage, they tried it and failed. Why? People didn't buy into them. You the consumers have all the power here, use it.

This.

If people want 'free' phones then the carrier's have to get something from you. There are no free lunches.

[geokilla]

What should I check for? You pay more on 3 years.

No you don't. Let's say you're an iSheep and your only option is to get it from Apple store or from Robellus (ruling Kijiji and such out of the equation) because you want the latest and greatest iPhone. We'll use the summer's $60 plan as an example. You can either pay $700 up front for it then $60 a month for 6GB data, air time, etc etc., or you can get it from Robellus for under $200, get that $60/month plan. Answer is obvious.

Hmm.. Just saw that you can't even get 2 year contracts now on smartphones from Rogers and Telus. At least in Ontario you can't. Not sure if this is good or bad for my argument...

[SLee]

Hmm.. Just saw that you can't even get 2 year contracts now on smartphones from Rogers and Telus. At least in Ontario you can't. Not sure if this is good or bad for my argument...

Doesn't matter now that the contract cancellation fee for Telus/Rogers is just subsidy/36 X # of months remaining in contract + $50/$12.50; a lot better than the old two year contracts for a $100 off. Much, much better than a new customer at Verizon where minimum monthly plan for a subsidized smartphone is $80.

[antman59]

Only idiots go into 3-year plans just to subsidize a phone, buy it outright and go with Wind or Mobolicity, I don't think Rogers/Bell will sell you a data plan without a 3-year sentence.

Unfortunately, the phones are not fairly priced outside of a contract. Hell try and buy a phone from a retailer without it being tied to a provider. Outside of a Nexus 4 which can only be bought from Google, there are not many affordable options. I would like to see a time where you can buy what you want and go where you want without the influence of the big 3.

[ichpen]

No you don't. Let's say you're an iSheep and your only option is to get it from Apple store or from Robellus (ruling Kijiji and such out of the equation) because you want the latest and greatest iPhone. We'll use the summer's $60 plan as an example. You can either pay $700 up front for it then $60 a month for 6GB data, air time, etc etc., or you can get it from Robellus for under $200, get that $60/month plan. Answer is obvious.

Hmm.. Just saw that you can't even get 2 year contracts now on smartphones from Rogers and Telus. At least in Ontario you can't. Not sure if this is good or bad for my argument...

That's not true. You buy your own device, you can use any data plan available to you. The i5 promos were for new customers signing up on new plans and wanting the full subsidy.

[george__]

CRTC is uselesssss and trying to buy a regular unlocked phone is ridiculously expensive in Canada

[ichpen]

Unfortunately, the phones are not fairly priced outside of a contract. Hell try and buy a phone from a retailer without it being tied to a provider. Outside of a Nexus 4 which can only be bought from Google, there are not many affordable options. I would like to see a time where you can buy what you want and go where you want without the influence of the big 3.

Phone prices are phone prices. Some are cheaper than others. Carriers don't set phone prices, CRTC doesn't set phone prices, OEMs do. Phones are but a small part of the equation but make up for the biggest window dressing. Carriers worldwide, not just here will want to lock you in for as long as palatable.

I don't understand your second question, you can buy a phone today and go to wind provided its compatible.

The industry in North America and Europe is built around contracts for post paid subscribers.

[ichpen]

CRTC is uselesssss and trying to buy a regular unlocked phone is ridiculously expensive in Canada

I'm not arguing on the efficiency or lack thereof of the CRTC but they do not have nor should they have any say in what Samsung or Apple want to charge you for a phone.

I'm just tired of folks whining about how pricey 3 year contracts are then lining up overnight to cough up the HUP + 3 more years on their contract after only year so they can have the latest iWhatever or Galaxy blah blah.

CRTC isn't here to make good financial decisions for you. It's not here to tell Rogers or Bell what a fair price for a phone is. That's your job.

Just be fair in apportioning the blame here.

[geokilla]

That's not true. You buy your own device, you can use any data plan available to you. The i5 promos were for new customers signing up on new plans and wanting the full subsidy.

Where do you see an available data plan that I can get and doesn't cost a boat load? And this is for any carrier, including WIND and Mobilicity. Let's even include the promo plans that Manitoba, MTS, Sasketchewan, SaskTel, etc. gets.

[kingofwale]

i encourage everyone to buy Nexus 4 and go with contract-free.

although the fact a lot of the better plans from phone companies (6GB for 30 dollars) requires 3 year contracts... that's something CRTC needs to look into

[ichpen]

Where do you see an available data plan that I can get and doesn't cost a boat load? And this is for any carrier, including WIND and Mobilicity. Let's even include the promo plans that Manitoba, MTS, Sasketchewan, SaskTel, etc. gets.

Don't know. What's a boatload to you? How much data do you use?

[igotskill]

http://www.montrealgazette.com/busin...226/story.html


Quite a bit of these stories going around, we can cross our fingers right?

[freerider_4life]

We might get two year contracts like the states, but I doubt it. I don't think we'll ever lose the contacts. It's already in place and making huge profits.

Canadians pay some of the highest rates around the world for mobile products, and these companies want to keep you locked in. The only reason the big 4 would switch to tabs, is to compete with the budget providers.

[igotskill]

We might get two year contracts like the states, but I doubt it. I don't think we'll ever lose the contacts. It's already in place and making huge profits.

Canadians pay some of the highest rates around the world for mobile products, and these companies want to keep you locked in. The only reason the big 4 would switch to tabs, is to compete with the budget providers.

Or maybe because they are regulated and they do whatever the CRTC tells them to do?

[Mark77]

Nobody is forced onto a contract in Canada. One can buy basically any modern phone that takes a SIM card and get an extremely affordable plan with Bell/Rogers/Telus and the various discount brands. "Contracts" are basically financing plans, designed to provide financing for expensive handsets that people otherwise don't want to buy with cash up-front. The 'contract' model is so lucrative that cell phone companies can set up those expensive kiosks in the shopping malls.

I don't feel that government should be interfering in the pricing plans of private businesses such as Bell/Telus/Rogers. It is a notoriously competitive marketplace. At best, if the government wants to do something, it should offer calculators on a website to calculate the 'implied' interest rate of a cell phone up-front purchase, versus financing it on a 3-year loan.