Virgin to Launch Smartphone Financing, Axe Subsidies

There was never a subsidy model, the phone price was all baked into the plan prices. Instead of $100 per month, now you only have to pay $60+$40 now, lol. I suspect they are doing this because of the Liberal government's 25% discount on phone plans program.

With this model, you get 25% discount on the plan (i.e. $60-25%) but no discount on the phone because it is separate from the plan.

Wireless telcos are not stupid but they are making us look like fools that we can't notice.

pjw918 wrote: ↑ https://www.iphoneincanada.ca/carriers/ ... -financing

... Only Koodo and Freedom Mobile still have subsidy models remaining...

Koodo Subsidy means that infamous "phone subsidy"
which they introduced only last August and are now probably
biting themselves in the butt repeatedly because of that?
Yeah, sure it was a genious decision

Perhaps more clearly explained by Mobilesyrup:

The documents indicate that Sweet Pay will replace Virgin Mobile’s existing plan tier structure. Currently, Virgin customers can get a phone at a reduced upfront cost but must pick between a Silver, Gold, Platinum, Diamond or Diamond Plus plan. As you move up the tiers, the monthly cost of each plan increases to cover the device subsidy.

While the documentation isn’t clear, it appears that after May 12th, customers will pick from the equivalent of Virgin Mobile’s bring your own phone (BYOP) plans.

pjw918 wrote: ↑ Perhaps more clearly explained by Mobilesyrup:

The documents indicate that Sweet Pay will replace Virgin Mobile’s existing plan tier structure. Currently, Virgin customers can get a phone at a reduced upfront cost but must pick between a Silver, Gold, Platinum, Diamond or Diamond Plus plan. As you move up the tiers, the monthly cost of each plan increases to cover the device subsidy.

While the documentation isn’t clear, it appears that after May 12th, customers will pick from the equivalent of Virgin Mobile’s bring your own phone (BYOP) plans.

If I'm understanding this correctly, all you're doing is paying off the price of the phone in installments of 24 months and with 0% APR which is like paying in cash. I'm guessing this will allow the carriers to keep the monthly price at a norm for the plans.

Yes, instead of including the financing of the phone in the monthly plan, they are now separating the financing and the monthly plan, which will make things a lot less confusing for the consumer (no need for all these different tier plans). Every companies are moving to this model.