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TELUS intros new upgrade structure with the “Early Device Upgrade Fee” (EDUF)


TELUS has introduced a new upgrade initiative today that’s part of their Clear and Simple Device Upgrade program and could see you getting a device earlier than expected. In the doc that we were sent it allows certain customers to “upgrade your device before the end of your term, simply pay the Early Device Upgrade fee and get a new device at full discount. This fee is calculated based on the discount you originally received when your contract began, plus the number of months remaining on your contract. The longer you wait, the lower your fee!”

Here’s how it works. Depending on what device you have and how many months you have left on your contract will determine the cost to upgrade early. The doc gives this example and price structure:

Feature phone/Smartphone – with no min. data commitment (i.e. Elevate, Banter) …. Early Device Upgrade Fee (EDUF) is $5 x number of months remaining in contract

Smartphone – with minimum data commitment (i.e. Bold, Desire) …. Early Device Upgrade Fee (EDUF) is $10 x number of months remaining in contract

Premium Device (i.e. iPhone) …. Early Device Upgrade Fee (EDUF) is $15 x number of months remaining in contract

Senario:
Tina has a BlackBerry Pearl and wants to upgrade to a 16GB iPhone 4. She has 12.4 months left on contract. What does Tina pay to upgrade?

Early Device Upgrade Fee (paid on next bill):
13 months (12.4 rounded up to 13) x $10 = $130
New Device cost: Apple iPhone 16GB 3 year price: $159
Tina pays $289

There are exceptions to those who are eligible for this. Business and Corporate Bans are not included in this. Clients within the first 6 months of their contract and Credit Limit Protection (CLP) clients are not eligible. Reading over the doc there are also some opportunities for customers to get the EDUF waived but it’s based on how much you spend a month and the time left you have on your contract.

We posted this yesterday in the Forum and you the link we were given telusmobility.com/upgrading is not yet live, but the program kicked off today. More here in the Forum

(Thanks Tipsters!)

  • Gloria G.

    smart way to make more money and good for the customer too

  • swigg

    Best idea i’ve seen so far for customer retention

  • Don

    In other words, “Pay us extra for the privilege of signing another 3-year contract.”

    • Dude

      I think the point is: The privilege of getting into a new 3-year contract BEFORE YOUR CURRENT CONTRACT IS COMPLETE.

    • ToniCipriani

      Depends. Article doesn’t state whether the contracts are stacked.

      For one thing that Rogers contract extensions ARE stacked, not sure in this case if the fee acts as the ETF for the existing contract already.

  • jarr

    This is great! You *should* have to pay more for the privilege of signing another 3 year contract – you expect a company to give you something for free?

    If i walk into a McDonalds to order a hamburger, basically Don “expects” Mickey D’s to give him a second burger for free, just for “the privilege” of eating another burger at this joint instead of going somewhere else.

    you are such a dummy.

    • GMan

      Where in the article did you see you have to sign another 3 years???

  • Guest

    Awesome deal, I bet everyone else will follow, finally, you can get out of contract without hefty fees like 20$ a month just to upgrade, thumbs up TELUS.

  • EJ

    I don’t understand why they spent time and money to develop this new structure when all they need to do to blow away customers and potential customers is change the maximum contract to 24 months w/ full subsidy.

  • TomatoGuy

    So I will assume that you have to sign another 3 year contract after Early Device Upgrade. Does it start from the day of upgrade?
    How about offering cheaper monthly plans to those who bought their smartphone at full price? T-Mobile in US has been doing this for a long time.
    But seriously contracts need to go away. Wireless companies need to compete on quality of service and its pricing instead of number of people they managed to lock up into 3 year contracts by offering some sneaky incentives.

    • Regulator

      Great points TomatoGuy, this is just another of Telus’ scheme to gift wrap a piece of coal!

    • dumbdumb

      Once you accept the fee you are able to renew on a 1,2 or 3 yr term. Your not forced to sign another 3 yr. The new contract starts the day to redeem it for a new hardware.

    • Arshad

      I get what you’re saying about the monthly plans being lower if you bring your own phone or buy a phone outright, but you can’t get rid of the contracts altogether. If you do then the providers lose the ability to gain customers who can’t exactly afford say a $749 iPhone4 16GB or $599 BB Torch, or $499 for BB Bold 9780. You run in to the same problem as Wind, Moblicity, and Public where customers cannot easily switch to them if they wanted to because of they high cost of phones, of course depending on the phone you’re looking to get. Of course that’s why they had to introduce the Tab system. And besides, you are not forced to go into a contract unless you want to get a discount on the phone. And even then the contract is nothing but a Tab with the new ETF rule from Telus.

  • Guest

    If people dont like contracts, don’t sign it. Pay the phone full price and you can do what you want. If you dont have the cash to buy it full price, then take a contract, it’s like they are financing your phone over 30 months because once you in the last 6 months, you are eligible to renew.

    This new program gives you a chance to buyout your existing contract at 5$ 10$ 15$ depending on the phone that you have renewed on.

    Before, if you renewed for a LG Banter on 3 yrs and had 24 months left, you couldn’t upgrade unless you break the contract and pay 24 x 20$ = 480$ or 400$ max depending what type of term you had because they changed it to a max of 400$ depending when you had signed up.

    Now u just pay 24 months x 5$ to upgrade from a Banter to get a new contract so you can get any new phone you want.

    24 months x 5$ = 120$ is better than paying 480$ or 400$. This is great for someone that wants to get an iPhone when he is not eligible for an upgrade as in the example that was used. 120$ + 159$ = 279$ after 12 months.

    Renew with other companies and get out of contract and I can assure that you will pay more than 279$ for an iPhone after your first 12 months after signing up a new contract.

  • wing

    Premium Device (i.e. iPhone) …. Early Device Upgrade Fee (EDUF) is $15 x number of months remaining in contract

    Wouldn’t it be 13×15 = 195 ?

    • TomatoGuy

      No it wouldn’t be, because it says “Depending on what device you have …”. In a given scenario Tina currently has a BlackBerry Pearl which is a regular smartphone so number of months left in a contract has to be multiplied by $10, not $15.

  • Jon Campbell

    Does telus have limits on its contract termination fees?
    Just wondering if upgrading(and signing a new 3 year contract) and then jumping ship(and selling the phone they just upgraded to) may be cheaper than just leaving and paying the ETF.

    • Guest

      400$ max or 20$ a month for breaking contract.

      If you have a smartphone and you have a subsidy, they also have a charge if you cancel you data plan within the first 12 months for 200$ on top of the 400$

      Total 600$ for cancellation of voice + data.

  • Shaun

    Is the Samsung Fascinate considered Smartphone or Premium Device?

    • Guest

      Any phone that doesn’t require data to get the the full discount is 5$ charge for the EDUF. All phones in the Mobile phone section.

      Any Smartphones such as Windows, Androids, Blackberry that require a data addon at signing of the new contract will have a charge of 10$ for the EDUF. All phones in the SmartPhone section that has a * next to the price requires data – call promotional pricing.

      Some smartphones will not require data and will be charged 5$ for EDUF if there is a promotion for that phone without data requirement.

      Only the iPhone will have a 15$ charge back per month to get the EDUF offer.

      Hope this clarifies it for you all.

  • Jim R

    The Quebec law is still better (more transparent, more flexible). To cancel you pay the prorated amount remaining of your subsidy. At the point you are free and clear to quit your provider, or take a new contract with a new phone and subsidy.

    Telus’ approach
    1) locks you in for another 3 years
    2) will almost certainly work out to paying Telus more than the prorated amount remaining of the subsidy.

    • TNSF

      Is the Quebec law actually in effect? Wireless companies are federally regulated which in most cases means they don’t have to abide by provincial legislation in overlapping topics.

    • TomatoGuy

      Quebec government actually cares about its residents. I would love to see the same law apply to all wireless carriers that offer contracts in Ontario and whole Canada as well. If I knew French I would move to Quebec right now just to pay way lower auto insurance premiums because in the GTA auto insurance is already sky high and government doesn’t seem to care one bit.

    • Jim R

      AFAIK, wireless phone and plan prices are not regulated by the federal government and its agencies as they believe such regulation is unneeded because the wireless industry is considered to be sufficiently competitive. This leaves Quebec free to actually look out for consumers.

      So, to answer the question, it is my understanding the Quebec law came into effect some time in the summer of this year.

  • Thoughtful

    Wow, Telus really knows how to sell salt to a slug. This is a scam.

    They should have changed it to how Quebec has it…pay off the rest of the subsidized phone. Get out of here with this crap Telus.

  • Mojoengine

    What is not covered here is the new TLC rules that apply. Does anyone have a clue about that yet? Any dealers want to chime in on it?

  • MXM4K

    It’s smart on Telus to offer this. I don’t know what the fuss is all about. It’s an ADDITIONAL option offered to the customer. It’s one extra option than they had just a few months ago. If you don’t like this option, don’t take it.

    All it’s doing is letting people essentially skip out on the remainder of their contract at a discounted rate, in return, they get a new device and renew their contract.

    If your against contracts, then none of this applies to you. Ignore and move on(Non-contract options exist *gasp*!), stop whining!

  • Wtv

    It won’t work in Québec since the cancellation fees are, most of the times, less than the Early Upgrade Fee.

  • Terry

    This IS a scam, the prices are aren’t that much cheaper then just getting an ECF, but to safe a few bucks from getting overcharged, you get 5 bucks off a month but are forced to sign a new contract.

    That’s like getting raped in prison and your only options are.

    A. Get rapped once but with a group with no protection.
    B. Get rapped with a group with a small amount of lube but you’ll get raped for 3 more years.

    GREAT CHOICES!

    • Arshad

      @Terry, I don’t see how this is a scam. Who is holding a gun to your head to sign a contract anyway? Buy the phone at full price and you’re contract free. Telus sells the Samsung U450 for $70 without any contract, go for that then. If you want to get a decent phone and don’t have the money then sign the contract so that Telus can make it affordable for you and they will pay the rest. And if you want to get out early then take advantage of the new Early Contract Termination rule where you just pay off the remaining prorated discount that was offered to you after the first 6-months and you’re scott free!

      You have got to be working for the new entrants and are paid to comment on these blogs ’cause obviously you’re just jumping the gun even before you read the entire article. To you it seems like if there’s any article about the new Big3 then it’s got to be a scam. Yes, granted they have not been the most honest in the past but they are trying because they are finally realizing that consumers now have options. And this is business, before you know it even the new entrants will do the same once they have enough customers and coverage. Look at Wind Mobile operating in other countries. They are not exactly the ideal companies out there either.

  • jacques

    The Quebec Law has helped out many who want to cancel their phone. Spoke with a Videotron agent and he said If after a year I want to cancel or get a new phone I would only pay the remainer of the subsidy for the phone. Example I asked for was the Nexus One.

    You pay $99 with a 3 year agreement.Full cost is $479. Than lets say you want to cancel contract. You have to pay $10.55 x 24. Because they divide the $379 by 36 and subtract the months that you were with them.

    So $479-$99= $379
    12x$10.55=$126.60 after 1 year
    So $379-$126.6= $252.40 would be the price to pay if you want to cancel the contract.

    Hell I am happy this law came out in Quebec!!!

  • tbr

    This is just to get people to sign three year contracts so they will not switch to the new entrants. I say do not follow along and you will see the price of the plans go down.

    We have the new entrants to thank and we should support them even if we have a long way to go.

  • Noah

    I think Telus has a good idea about what they’re trying to do. People, like myself, hate waiting for programs such as HUP, which is a minimum of 24 months, and within those 24 months there are SO MANY new phones that make the phone you just paid 150 for look like rubbish. So It’s great that they’re allowing you to upgrade early. I mean do the math really. Say you’re a year into your contract, leaving 24 months left.
    With the EDUF, that’s $240. (Assuming you have a smartphone). Then signing for another 3 year contract, to get the phone for the ‘advertised’ price $199 (Assuming its in the range of many other new phones that release.) In total you’re paying $439. (Again, I don’t know all the details, so they can tweak things, etc. Overall though, compared to having to wait 2 years into the contract, or paying like $400 outright just to cancel your contract, then having to pay another $200 to get another phone w/contract. If you can wait to upgrade your phone, then great. But if you’re a customer like myself, $439 to upgrade early is worth it.

  • Jarrod

    so what if you switch to an old PCS or “Feature Phone” before you do this and only pay the 5$ per month instead of the 10 for a blackberry

  • Airmin98

    TELUS also has a new cancellation policy which is much fair to the customer.

    Amount of phone discount divide by # of month for your contract, time the remaining month plus $50 admin fee.

    :P

  • daveloft

    If Bell had this when I got my Galaxy S in August I would have payed $300 for my phone instead of $500.

    Anyone complaining about this is a foul.

  • Terry

    Scams doesn’t force you to do anything. Scams try to make you think you’re getting a deal or something awesome when really it’s just a way to take more money from you.

    Course then again, the whole use of contracts in Canada by the big three is a scam to begin with.

  • Paolo

    This only works well if the client has been with TELUS for a while. A new customer that just signed that wants to cancel in their second month, they would need to pay $400.00 plus tax for the cancellation fee. Under this new structure, if someone got an iPhone 4 32GB on 36 months, the discount is $500.00. The remaining time will be 35 months (500/36 = 13.888 x 35 months remaining = 486.11 + $50 admin fee = $536.11) The total the client would pay is now $536.11. So again, as per telus, the client pays less, the longer they have been with telus.

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