Mobile Rates Going Up Due to 2 Year Plan Changes

[Igster]

Early June the CRTC announced that their new Wireless Code would officially be implemented on December 2nd. This country-wide initiative set in place a few major steps that the carriers will need to adhere to, specifically when it concerns contract periods, device unlocking, and cancelation terms.

Bell: http://mobilesyrup.com/2013/07/12/be...-on-july-17th/

Telus: http://mobilesyrup.com/2013/07/15/te...wo-year-plans/

[Anduril]

Canadian telecommunications just took half a step forward and a triple somersault backwards.

[Codes]

Well, this is a poor turn of events. I expected they would recoup the cost somehow, but this is extreme.

Currently with Telus, I pay ~$65/mo, which includes 6GB data. I'll certainly be making changes if my bill increases at all.

Does this affect users still on a 3-year plan?

[SuperMatt18]

Nobody who is currently on a 3-Year plan will be impacted. The price change will only impact you if you are a new activation or are re-negotiating upon contract renewal.

Honestly if I was a customer with one of those old high value 6 GB plans for $65 or less I would not be renewing. Would be buying the device outright and keeping the rate plan.

[Hockeyguy15]

Thanks a lot CRTC...

They could have done a lot more to help the consumer.

[Street Pharmacist]

Originally Posted by Hockeyguy15

Thanks a lot CRTC...

They could have done a lot more to help the consumer.

How's that?

[Hockeyguy15]

Originally Posted by Street Pharmacist

How's that?

Impose some new guidelines that had some teeth, rather than leaving wiggle room for the carriers to still gouge the consumers?

All the carriers have to do is what the article says Telus is doing and the consumer still takes it up the rear.

Right now an unlimited talk and text with 6GB of data is $100, with the new 2 year plans you are paying $145-$155 a month so a 50% increase for the same service.

Edit: Oh and even if you bring your own device you are still going to pay $135 for plan, thanks for that huge savings.

[photon]

http://www.michaelgeist.ca/content/view/6905/125/

These wireless price rankings run from cheapest (1st) to most expensive (34th). Canada ranks among the most ten most expensive countries within the OECD in virtually every category and among the three most expensive countries for several standard data only plans.

[DoubleK]

Pay me now, or pay me later.

Buy your phone unlocked and take it to whatever carrier you can get the best rate plan for.

If you are a city slicker, Wind is a great option for you.

[GGG]

Originally Posted by Street Pharmacist

How's that?

What the CRTC should have done is forced the Phone companies to de-couple the phone subsidy from the plan offering and limit cancelation fees to the outstanding balance on the device. Then force the companies to have to sell the device for the same price whether it is subsidized or purchased out right.

For example on those $65 plans there is about a $15 device subsidy over 36 months ($540). So rogers should be forced to offer a plan of $50 a month. Then separately offer the devices for $15 a month for three years or 22.50 over 2 years or $45 per month over 1 year. For cancelations only the outstanding balance would be due from the subsidy.

This provides the most flexibility for the consumer.

It also prevents a company from offering better deals to customers who finance phones through them and encourages the consumer to continue to use perfectly functional devices as savings are immediately passed on to the consumer instead of having to renegotiate your plan when your term is up.

[nfotiu]

Subsidized phones are evil, I wish they'd just abandon that model altogether. Then we'd see some real price competitiveness on unlocked phones. Companies should be able to sell a good smartphone for close to $200 outright.

[Anduril]

Originally Posted by Hockeyguy15

Impose some new guidelines that had some teeth, rather than leaving wiggle room for the carriers to still gouge the consumers?

All the carriers have to do is what the article says Telus is doing and the consumer still takes it up the rear.

Right now an unlimited talk and text with 6GB of data is $100, with the new 2 year plans you are paying $145-$155 a month so a 50% increase for the same service.

Edit: Oh and even if you bring your own device you are still going to pay $135 for plan, thanks for that huge savings.

Chances are you'll also have to pay more upfront at least that will be the case for Bell.
On the other hand, a lot of the consumers who had given input to the CRTC were wrong in saying elimination of a 3 year contract would be the way to go.
All this country needed is just an actual choice between 1, 2, or 3 year contracts.

I can only hope that keeping my 6GB $60 plan will be painless.

[Hockeyguy15]

Originally Posted by Anduril

Chances are you'll also have to pay more upfront at least that will be the case for Bell.
On the other hand, a lot of the consumers who had given input to the CRTC were wrong in saying elimination of a 3 year contract would be the way to go.
All this country needed is just an actual choice between 1, 2, or 3 year contracts.

I can only hope that keeping my 6GB $60 plan will be painless.

The thing is even if you buy a phone at full price you are still paying $35 more a month than you are now.

[Street Pharmacist]

Ffs. The point of government intervention is to protect the consumer NOT to make things cheaper.

Increase competition? Sure makes sense (not that they did a good job of it). Remove sneaky contracts that prey on uniformed consumers? Maybe.

How does cheaper prices protect the consumer? The carriers Should be able to offer different prices for merchandise based on financial contracts, etc.

It seems as though many people would like to see the government force companies to change business models to provide the cheapest communications charges. Sorry, but that is most certainly NOT the role of the government imo

[Azure]

Shocking that government intervention results in the consumer getting screwed over even more.

Perhaps they should just allow the market to balance everything out instead of imposing rules like this that only result in even more price gouging.

[Anduril]

Koodo goes live with their new tab system and plans.
http://mobilesyrup.com/2013/07/15/ko...-medium-large/

The new tab system for Koodo is probably the only small bright spot in this.

[Bill Bumface]

All this does is screw people who don't feel like throwing away a perfectly good phone every 2 years. I would love it if once my device is paid off (3 year plan is over) it was now my phone, and I could take it to another provider, as oddly enough, my monthly bill doesn't go down even if I'm no longer using a subsidized phone.

It's basically just a system that forces you into getting a new phone so you aren't getting totally screwed every month.

[Bobblehead]

Originally Posted by Azure

Shocking that government intervention results in the consumer getting screwed over even more.

Perhaps they should just allow the market to balance everything out instead of imposing rules like this that only result in even more price gouging.

And if it was a competitive market with full information, laissez faire may work.

But it isn't - it is an oligopoly with large economies of scale, large barriers to entry and getting information is difficult.

I doubt even Verizon changes things much. They will initially create a price war to build up their client base and prices will drop across the board. But once their client base starts to be sustainable they will raise prices and the others will follow suit.

It takes more than 3 or 4 entrants for it to be a competitive market place that drives down prices.

[Tinordi]

Originally Posted by Azure

Shocking that government intervention results in the consumer getting screwed over even more.

Perhaps they should just allow the market to balance everything out instead of imposing rules like this that only result in even more price gouging.

You don't have a clue what you're talking about.

[Handsome B. Wonderful]

Originally Posted by DoubleK

Buy your phone unlocked and take it to whatever carrier you can get the best rate plan for.

If you are a city slicker, Wind is a great option for you.

Sure, if your phone actually supports Wind's network.