Cell Phones

New 2 Year Contract Law screwing customers more? Rogers/Telus

  • Last Updated:
  • Sep 23rd, 2013 2:02 am
Deal Addict
Aug 23, 2003
1450 posts
210 upvotes
Kasakato wrote: Well since you cannot do the math, I did it for you:



As for:

This is simply wrong. Rogers took a free lunch on consumers, followed by dinner and drinks.
I am by no means defending carriers, there rates are reasonable if it is for voice only but unfortunately they force a combined plan on consumers for voice and data in most cases which I find uneconomical. People thought eliminating the 3 yr plans was wonderful and I couldn't really see the logic as the subsidy was then integrated into a 2yr plan. As you point out the carrier have used this to grab even more money in some cases. I just get such a laugh out of these threads because people scream bloody murder about carriers ripping them off but they can't break their addiction to their smartphone and succumb to these ridiculous plans.
Deal Addict
Nov 2, 2011
2075 posts
447 upvotes
Vancouver
@Putty: you failed to see my post where I quoted Kasakato and bolded the section where the big 3 was being greedy. If you re-read it you will see that the big 3 did not change the subsidy, its still there. What Kasakato was saying was that the greedy carriers wanted to get 3 years worth of monthly fees and get it all in 24 months, hence the monthly fee increase.
Deal Expert
Mar 25, 2005
22706 posts
3697 upvotes
putty wrote: I am by no means defending carriers, there rates are reasonable if it is for voice only but unfortunately they force a combined plan on consumers for voice and data in most cases which I find uneconomical. People thought eliminating the 3 yr plans was wonderful and I couldn't really see the logic as the subsidy was then integrated into a 2yr plan. As you point out the carrier have used this to grab even more money in some cases. I just get such a laugh out of these threads because people scream bloody murder about carriers ripping them off but they can't break their addiction to their smartphone and succumb to these ridiculous plans.
There is the root of the issue. No one intended for 2 year contracts to become a profit driving activity- but the carriers made them one. I do not see how consumers take any liability.
Deal Addict
Nov 2, 2011
2075 posts
447 upvotes
Vancouver
Kasakato wrote: There is the root of the issue. No one intended for 2 year contracts to become a profit driving activity- but the carriers made them one. I do not see how consumers take any liability.
+1
Deal Addict
Aug 23, 2003
1450 posts
210 upvotes
Kasakato wrote: There is the root of the issue. No one intended for 2 year contracts to become a profit driving activity- but the carriers made them one. I do not see how consumers take any liability.
Consumers take liability when they have to have the latest device, like an addiction they HAVE to have the newest iPhone and carriers feed off of this. So I have no empathy for consumer in these cases when they claim they are being ripped off, you wanted the latest and greatest now you have to pay for it. If you want a reasonable deal on cellular service buy an unlocked device, older device, or used device and many carriers will give you a deal on a bring your own device plan. Really, how much better is a new phone compared to one that was released a year earlier?
Deal Expert
Mar 25, 2005
22706 posts
3697 upvotes
putty wrote: Consumers take liability when they have to have the latest device, like an addiction they HAVE to have the newest iPhone and carriers feed off of this. So I have no empathy for consumer in these cases when they claim they are being ripped off, you wanted the latest and greatest now you have to pay for it. If you want a reasonable deal on cellular service buy an unlocked device, older device, or used device and many carriers will give you a deal on a bring your own device plan. Really, how much better is a new phone compared to one that was released a year earlier?
Thats great, but completely irrelevant.
Deal Addict
User avatar
Jan 22, 2008
4175 posts
1483 upvotes
Calgary
It is hilarious how putty has ignored the calculations showing how greedy the carriers are, just because it will show the size of his brain lol
Deal Addict
Mar 10, 2006
2682 posts
731 upvotes
Montreal
napoleon1769 wrote: So instead of complaining can you advise what the consumer should do?
*shrug* I made a suggestion earlier
Deal Guru
Sep 28, 2010
10950 posts
3262 upvotes
KIDAVENGER wrote: You have to pay for the phone, now you just have to pay for it in 2 years instead of three; don't like it? Buy your phone outright, put it on your credit card, see how much they charge you in interest over 3 years...
That's not what's happening though. They are trying to recoup almost the entire 3 years of revenue but providing only 2 years of service. They also raised rates for plans/phones that were already available on 2 year terms (and therefore the subsidy and repayment period is unchanged) and hiked prices for off contract (where there is no subsidy).

As much as the nut huggers want to blame the CRTC rules and the consumers for these new much higher prices, the severity of the increases is entirely due to the carriers choices.
Deal Guru
Sep 28, 2010
10950 posts
3262 upvotes
putty wrote: What did you expect to happen when the CRTC mandated no more 3 yr contracts? Of course the carriers then have to recoup their hardware subsidy after two years, did you think the CRTC mandate would have them give you free money? That's why the 2 yr mandate was BS from the beginning now you have less choice.
Basically correct, other than the price increases having almost nothing to do with the subsidy. At all.
Deal Guru
Sep 28, 2010
10950 posts
3262 upvotes
putty wrote: Consumers take liability when they have to have the latest device, like an addiction they HAVE to have the newest iPhone and carriers feed off of this. So I have no empathy for consumer in these cases when they claim they are being ripped off, you wanted the latest and greatest now you have to pay for it. If you want a reasonable deal on cellular service buy an unlocked device, older device, or used device and many carriers will give you a deal on a bring your own device plan. Really, how much better is a new phone compared to one that was released a year earlier?
Great. Does that explain the hikes for off contract? Or for phones/plans that were already priced with 2 years terms?
Deal Fanatic
Mar 12, 2010
6112 posts
660 upvotes
SW Ontario
What they should have done is separated the phone from the plan completely. That's why they did to a certain extent, but then it would be easier to keep plans down without putting the 2yr thing in it. If you want a phone then the phone companies could simply finance it for 2 years.
Banned
Jan 11, 2004
19816 posts
572 upvotes
ceredon wrote: That's not what's happening though. They are trying to recoup almost the entire 3 years of revenue but providing only 2 years of service. They also raised rates for plans/phones that were already available on 2 year terms (and therefore the subsidy and repayment period is unchanged) and hiked prices for off contract (where there is no subsidy).

As much as the nut huggers want to blame the CRTC rules and the consumers for these new much higher prices, the severity of the increases is entirely due to the carriers choices.
How so?crtc restricted and eliminated choice .

Yes carriers could've charged cheaper.but in the end..people wanted no more 3 year contracts because they are stupid and want less choice. Crtc let those people have their way and I'm laughing and shaking my head.

So point is..crtc eliminated choice and consumers are suffering. Definitely deserve it. No sympathy for stupidity... But I do feel sorry for the non idiots who didn't demand less choice and are not collateral damage of those who whined and got what they wanted and got everybody else to pay for their mistake
Deal Guru
Sep 28, 2010
10950 posts
3262 upvotes
gilboman wrote: How so?crtc restricted and eliminated choice .

Yes carriers could've charged cheaper.but in the end..people wanted no more 3 year contracts because they are stupid and want less choice. Crtc let those people have their way and I'm laughing and shaking my head.

So point is..crtc eliminated choice and consumers are suffering. Definitely deserve it. No sympathy for stupidity... But I do feel sorry for the non idiots who didn't demand less choice and are not collateral damage of those who whined and got what they wanted and got everybody else to pay for their mistake
The "choice" was an illusion. If you wanted a significant subsidy, you had a 3 year option. If you wanted no subsidy, you had a no contract option. For phones that had the 3 year option, the 2 year "option" was basically no discount at all so it wasn't a real option and was that was completely intentional. You could get $0 subsidy for no contract, $500 for 3 year or $50 for 2 year. Sorry, but that 3rd choice was only a choice for the mathematically challenged.

Unless one believes our carriers were uniquely incompetent, where they needed 3 years to achieve what every other carrier in the world can do in 2, the 3 year option was simply a way to take advantage of their unique situation.
Deal Addict
User avatar
Jan 14, 2013
2525 posts
1046 upvotes
Burnaby
KIDAVENGER wrote: You have to pay for the phone, now you just have to pay for it in 2 years instead of three; don't like it? Buy your phone outright, put it on your credit card, see how much they charge you in interest over 3 years...
or better yet, stop buying phones you cannot afford.
Newbie
Sep 21, 2013
1 posts
Toronto, ON
What did she ask from Telus exactly? I want to get my son's phone upgraded
Deal Expert
Mar 25, 2005
22706 posts
3697 upvotes
gilboman wrote: How so?crtc restricted and eliminated choice .

Yes carriers could've charged cheaper.but in the end..people wanted no more 3 year contracts because they are stupid and want less choice. Crtc let those people have their way and I'm laughing and shaking my head.

So point is..crtc eliminated choice and consumers are suffering. Definitely deserve it. No sympathy for stupidity... But I do feel sorry for the non idiots who didn't demand less choice and are not collateral damage of those who whined and got what they wanted and got everybody else to pay for their mistake
People are stupid for demanding that subsides be compressed into 2 years instead of 3? Where the prevailing standard is 2 years? Yup, completely stupid.
Jr. Member
Mar 22, 2010
187 posts
61 upvotes
Sudbury
[IMG]http://i.imgur.com/EyfAh75.jpg[/IMG]

They have all settled into the same time of plan offerings with few exceptions (wind mobile being the exception, but your situation might not allow you to take advantage of their offerings)
Deal Fanatic
Mar 12, 2010
6112 posts
660 upvotes
SW Ontario
thorton70 wrote: [IMG]http://i.imgur.com/EyfAh75.jpg[/IMG]

They have all settled into the same time of plan offerings with few exceptions (wind mobile being the exception, but your situation might not allow you to take advantage of their offerings)
Is that an old chart? Telus no longer has an activation fee.

Wish I could use Wind :( Unfortunately they have two towers not far from my house yet my house still doesn't get good service...

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