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TELUS alters monthly price plans as Canada enters the era of two-year commitments

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TELUS is transitioning to a model of two-year contracts along with the rest of the Canadian market, and is set to increase monthly prices accordingly when the changes take effect at the end of the month.

Specifically, TELUS will be separating its voice-and-text from its data pool charges as a way to more clearly delineate between parts of the business that are revenue positive (the latter) and revenue neutral (the former).

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Dubbed SharePlus, the company has broken down the base price into five categories: Smartphone, Smartphone Lite, BYOD-SIM-only (bring your own device), Tablet, and Tablet BYOD. All voice portions include unlimited nationwide talk and text, and include voicemail, call display and call waiting.

Once selected, the individual or family will then choose to add a certain amount of data from the pool, for single use or to be shared with up to five devices on the same account. The range spans $15 for 250MB to $100 for 6GB and $150 for 10GB. The base price of a typical high data-need smartphone user who purchases a new iPhone 5 with a 6GB plan will increase from $100 today to $155 on July 30th, when the plans go into effect.

While the second part of the equation — revised subsidy costs on the smartphones themselves — have not been revealed, it appears that monthly prices for the majority of users will be increasing, especially for those with higher data needs. Because the company doesn’t mention hardware pricing in the press release, we’re under the assumption that they will remain unchanged for the time being, and the trend towards increased prices on a two-year term will begin in the coming months.

TELUS is also incentivizing users to bring their own devices to their network by discounting $20 from the monthly voice-and-text price; there are no discounts for data, though, when choosing the BYOD option.

The company will also be introducing a new set of two-year plans for small businesses, some of which will offer built-in U.S. roaming.

Via: TELUS

  • koconor100

    Confused.

    You’re going to break into a new market by charging MORE than anyone else ?

    Well, you didn’t win me away from Wind , that’s for certain.

  • koconor100

    since the phones you buy don’t actually last three years , and you are forced to break the three year contract with all the penalties involved or sign up again and are stuck forever with one company …
    Yes, it does give more to the consumer.

    It gives them a window where they can say “My contract is up. Goodbye and good riddence.”

  • Supa_Fly

    They did NOT ban 3yr plans. They didn’t bring us to the new millennium either – as the rules are so loose Rogers has already slipped through by renaming their fees that was arbitrated as wrong. Telus is just doing users RIGHT. doing this means pricing will increase until the competition starts to beat monthly rates on voice, data, and legacy messaging (SMS/MMS).

    Until then there is not much to cheer about. Although I do like seeing Telus going this route.

    • Mark

      You’re about 6 weeks behind the times, because they DID effectively kill 3 year contacts. Everyone can walk away after 2 years penalty free and the device balance must be amortized by then. There is no such thing as 3 year obligation anymore because having such a financial penalty is prohibited.

    • Phil Gabriel

      Mark, you can’t walk away penalty free after two years, the two year contracts don’t start until December. I would know as I work for Rogers. Also as for renaming fees that is true for example our 35$ admin fee has been changed to a 15$ connection fee. However one thing to be thankful for, all providers Rogers, Telus, Bell, Etc. are trying to fight for the Customers on a 3 year term to break the contract and retroactively put them on a 2 year instead as it makes everything easier for us and our customers. Yes Pricing is going to increase mostly in the cost of a phone on a contract. You won’t be getting a 0$ phone on a term anymore lets just put it that way. Its really the people who complained to the CRTC who are at fault. Its not that providers want to do this we really don’t, and the worst part is it leaves employees for these providers like myself powerless. CRTC isn’t on anyone’s side. They are the middle man that ends the argument and makes an agreement. Think of it as a parent forcing two siblings to share. In the end, this change has really messed everything over for both sides of the spectrum.

    • skullan

      Of course the providers don’t. Why would they want to prevent someone from coming in with a low cost upfront, only to tie subsidy to cancellation.

      “Oh, I can only upgrade my phone, but not go contract free by paying my amount owing off?”

      In terms of your comment: “Yes Pricing is going to increase mostly in the cost of a phone on a contract.”

      $55 ($100->$155) a month is not “increasing”, it’s skyrocketing and it obviously isn’t just for the recoupe of costs. $55 / month * 12 months = $660 dollars more a year.

      “Think of it as a parent forcing two siblings to share. In the end, this
      change has really messed everything over for both sides of the spectrum.”

      Not in my opinion, in my opinion CRTC corrected a course and the carriers are choosing to mess it up.

      “However one thing to be thankful for, all providers Rogers, Telus, Bell,
      Etc. are trying to fight for the Customers on a 3 year term to break
      the contract and retroactively put them on a 2 year instead as it makes
      everything easier for us and our customers”

      It depends, are they jacking the price up of the contract on those 2 year terms? If so, then in my opinion, they aren’t doing anyone any favours.

    • daftchemist

      Ya so after December the 3 year contract is effectively null.

  • Scott

    Yeah. Because that’s what Canadian cell phone rates need to do. They’re already the highest rates in north America. Why not the world while were at it? Now I’ll likely be leaving Telus.

  • ABCONMan

    Enjoy your new rate plans!

    Wireless code. LMAO!!!

  • accord1999

    Most citizens of every industrialized country live in urban areas and are concentrated into a minor portion of the entire country. Look at Japan, despite being the size of a small Canadian province, most of it is uninhabitable.

    The fact is even the small fraction of Canada that is regularly cited as covered would be among the largest countries in Europe or Asia.

  • accord1999

    Verizon has an $40 access fee you need to add to each smartphone plan.

    Basically, prior to the CRTC changes a Verizon client would probably pay more total in 2 years than a Canadian Big 3 client would in 3 years.

  • Corrode

    These new plans are a JOKE. $155 for a Smartphone with 6GB of data? Yeah, that’s fair. That plan should be $60. Canadians are getting screwwwwwwed.

  • Stuntman06

    There is just no easy and obvious way for most consumers to buy an unlocked, high-end phone. Most people like myself would go to a store to buy their phone. I asked about unlocked phones once and all they had were the old and crappy ones. You can’t just walk into a store and pick any high end phone unlocked and then pick any carrier.

    • Deciare

      That is true and very unfortunate. I’ve relied on the good graces of Google, overseas relatives, and places like Pacific Mall to get decent unlocked phones.

      Having the price of subsidy as a separate item on your monthly bill would still help you, though, in the sense that the price of subsidy disappears once you have paid off your device.

      If you start with Telus’s $55 smartphone plan now, you might continue paying $55 long after your device is fully paid off. That’s not fair at all.

    • Stuntman06

      Yeah. The subsidy is not known and I don’t recall ever having my monthly bill ever going down after my phones have been paid off. Telus has a BYOD plan. It would make sense that customers who have paid off their device should probably be automatically migrated to this plan. Phone companies have been screwing over customers before the CRTC ruling. They’re just screwing customers over differently now.

  • Yeas

    Its not what they were hoping for, but their intention was clear. This is just the telecoms shocking the public into thinking the CRTC messed up so we will flip blame.

    The intention of the wireless code was obvious, keep the blame on the Big 3. This is just an insult to f**k with us.

  • Anonymous501

    Weren’t they supposed to separate the phone charges from the subsidies? I was under the impression we’d see comparable plans across the board, and the phone subsidy would clearly be separate and additional to those plans.

    • Sweet

      The draft Wireless Code had specified that the financing should be separate from the service charges such that a person could change providers before the phone is paid off and in such a case, the customer would continue paying off their phone even though they’re with a new provider. Is that what you’re talking about ? I didn’t see it in the final Wireless Code, so it looks to me that the CRTC decided to drop it.

  • Justin Zubko

    HAHA i love how everybody wanted three year contracts because they wanted the companies to give them free phones that are worth 600$ and then expects the prices of the phones and plans to stay the same. Companies have to make money

  • WirelessKingPin

    Now its Rogers turn to photo copy Telus price plans using red and add $5 to them and call them “exclusive” ……. good ol Robbers

  • Jason Lalonde

    Holy SHIT! Telus has been hangin’ with Rob Ford lately LOL My f**k this is INSANITY!

  • grantdude

    I didn’t say anything about prices in Canada being competitive. I said people sign 3 year contracts willingly without thinking about the consequences.

  • photomike

    Consumers are really dumb. Everyone bitched about three year terms not knowing what the out come would. Well stupid people of the world buying a phone is like getting a mortgage. If you want to pay it off over 10 years you are going to have to pay twice as much per month as if you were going to to pay it off over 20 years. Cell phone subsidiaries are the same. You still have to pay it back some how. Don’t want three years terms than you are going to have to pay 10 to 15 dollars more per month for the companies to get there money back. You all made your beds now you can lay in them. Or you can be smart and stop using them. Go with places like wind, mobilicity, and videotron who are trying to make a change. Morons all morons!!

    • photomike

      Was not referring to price point increase on handsets. Just stating that the price hike on plans works out to be the same as if you were paying for the plans available now over three years vs the new plans over two years. Your paying almost the same amount of money just in a shorter time frame. Big three still winning and getting your hard earned money.

  • jimr123456789

    I like the BYOD-SIM-only choice. But $35 is crazy. I currently have 1000 monthly minutes and 1000 out going texts (unlimited incoming), and Called ID and basic voice mail for $25.

    I hope that $35 a month for BYOD-SIM-only is a type-o. As it should be $20 or at most $25.
    I can not even say how crazy the data rates are! At those rates I will would rather live with a smart phone on WiFi.

  • inc188

    damn.. these are disgusting…

  • Corey Michaels

    Wow, these prices are insane. They have nothing to do with the CRTC either, as even a unsubsidized customer who wants 3gb of data will have a $95 plan after these changes – You can get that for $53 in Quebec right now with the Telus BYOD discount.

  • Jared McAteer

    I wonder how much of this is to scare people into rushing out and locking themselves into a 3 year contract before it’s “too late” then when 2 year rule comes into effect market pressures will bring the contracts down to something reasonable.

  • skullan

    I’m guessing you’re talking to someone else, since in my post, I’m pointing out the logic versus the math.

    However, if you read the article, it is saying that the $100 dollar plan is going up to $155. So, that’s $660 more dollars a year, that’s going to exceed the subsidy they originally gave you (based on your numbers) and that’s in the first year.

  • Michael Wright

    Wow, I used to work here, and Telus had okay plans. This is ridiculous we need way more competition in this country. We spend more on cellular than any where in the world!

  • Justin B

    Well, if I ever have to get a new in-market plan (which I hope I won’t) I’ll just dial back my data and go with wifi wherever I can (work/home/friends houses) and not use data via cell. I’ll probably keep 300 mb or so and use 3G Watchdog and turn it off. If it becomes too onerous, I’ll bump it up to 500. Currently paying $80/month, would cost $135 if I was on the new rate scheme.

  • Verdic

    Of course nobody did.

    But do the math. Average top end phone is $600. Over 3 years that is $16.67/month. Knock it down to 2 years and the cost increases to $25/month. So on average prices should increase by around $8.50 ($25 minus $16.67). Increases are more than that so it’s a money grab.

    In reality most people pay an up front cost for the phone ($100 or $200 or whatever), so the difference should be even smaller. But this is just for context.

    Not sure why so many people are defending the new pricing schemes. Do you like being ripped off? If not, get with the program. You want to own a phone for 3 years? You can still do that. Buy a $600 phone and get $20 taken off your bill for 3 years, that’s $720. All the new rules do is give consumers choice, and that’s what you should be rooting for.

  • Verdic

    You should be comparing 500/36 vs 500/24.

    Can’t expect people to listen to your “logic” if you can’t do simple math. Let’s bring in 10 year terms because by your logic that is going to be sweet low rates for consumers. How about 100 year plans, the phones will almost be free then!

    • Rio

      You just need to learn to read better :P

      The point of the math was to show that carriers are making you pay the same amount for their service on the new 2 year terms as compared to the 3 year terms.

      How do I make that point if I do math your way?

  • FSbandit

    Canada’s mobile infrastructure is vastly more superior than the states. You can drive end to end on telus and bell with few exceptions, whilst in the states their infrastructure is more along the lines of a conglomerate of chatter networks.

  • Croc Ography

    I was one of those people who switched to Wind… and I am never going back to ROBULUS… ever!

  • Chao Yang

    Forget about contract for a new phone… I am just going to get iPad plan…$35 for 5G and use Fongo… I get a phone number and pay $10 for text message for half year. I am f*****g done with those stupid idiotic contract… 6GB for $100? Give me a break

  • fhwwrules

    Heh heh, just renewed my sask 45 for 3 more years and a new iphone 5. Total 6 gb shared data between ipad and 2 iphones – $5 for ipad (moves to $10 after 12 month promo),$55 for one iphone (sask 55 for another 2.5 yr), $45 for the other iphone. Unlimited everything and visual voicemail on the both phones. Even able to add an ipad mini for the wife for $5/month 12 month promo sharing the 6gb. If I were to wait a week, no way to get the same package – would be at least $70/month for wife phone, more for mine.

  • RiceCake

    Who needs facts: your logic still baffles me… using the same numbers assumed above, my three year cost would look like this on today’s plan: $100 * 36 = $3,600

    With the new prices, I pay $155 per month until my phone is paid off, and then I pay $135 per month ($20 discount for BYOD).
    On the new plan, my 3 year cost is: $155*24 + $135*12 = $5,340.

    Please try to figure out how that is anywhere close to a decent value proposition?!

    • Who Needs Facts

      After two years the contract is over. You have paid exactly what I said for the 24 month contract compared to the 36 month contract.

      If you want to carry on with Telus, then your third year, presuming the costs remain as quoted, will be exactly as you describe. I never said anything contrary.

      My point was that the phone/plan was not increasing by $55/month as stated with the establishment of two years plans.

      The opportunity that the left wing lobby has created is you now can take your not so shiney two year old phone and find a better deal than what you so nicely demonstrated, has been eliminated.

    • RiceCake

      Ah, OK. If your point was just that the device isn’t costing more on the new plan over the old one, then I agree. As you said though, it is still poor value overall because I still have to pay a much higher phone bill after two years even if I own the phone outright :-( I’ll be going to wind if robbers implaments the same strategy

    • Who Needs Facts

      Agreed 100% on moving to the best deal.

      The thing is though, Wind and Mobilicity’s bottom line troubles have shown that their pricing cannot be sustained so I suspect that the alternatives will not be too much better than the big three.

      One can only hope, that as there will be no contracts involved, the big three offer all sorts of incentives to keep their recently lost contractees, subscribed to their network. It should give the consumer at least a little bit of clout.

  • RiceCake

    Math doesn’t make sense if I want to keep phone for 3 years…

  • Who Needs Facts

    Not forgetting it at all. The third year is eliminated. Gone. Ceases to be a factor. There is no longer a third year of service as far as the telco is concerned.

    Why are you bringing up this third year as it relates to what I have said? After two years take your phone and do what you will with it. Go to Wind or Mobilicity or Verizon or whoever. Sell it and buy new one. Give it to your sister.

    Don’t start complaining that the non-contracted third year is going to be expensive or higher priced than it currently is in the three year contract. Of course it is. They are not going to give non-contracted service away as Wind and Mobilicity do – you know how that business model has worked out for them.

    This is what you wanted. Now you have it.

  • dafsfdsa

    So what the hell do we do!?!?!??!

  • Dubo

    You realize that the new contract includes one year less of service, right? Using your numbers, and taking out device subsidization (let’s say it’s 700 for the iPhone):
    -the new 24-month contract costs 3020, or $125/mo

    -the old 36-month contract costs 2900, or $80/mo

    That’s a $45/mo difference, not a $5/mo difference.

    • Who Needs Facts

      The whole post is about the phone subsidy. Taking the phone out of the equation takes the contracts out of the equation and has nothing to do with this conversation.

      If you don’t require a phone subsidy it appears the cost is $135/mo using the same plans discussed previously.

  • efrev

    If it was 20 years ago, it could have been Obama

  • daftchemist

    So instead of the 63 I pay now it would cost me 55 + 30 = 85 for the 1GB and plan I have right now… God Damn Telus. I hope the CRTC screws you guys over again. This is ridiculous. I’m going to have to rethink my monthly plan after this 3 year contract. This might be the first time I let my plan run completely out…

  • daftchemist

    I feel a rebellion or some major revolution on the horizon. I hope.

  • Justin Zubko

    that being said if u look at it from a company stand point. they are giving you a 700$ phone for a discounted price, if you aren’t going to be stuck with the company for as long, they are going to have to subsidize, being more for the phone up front and then more for the phone over time

    • Justin Zubko

      but if u look at it the rate plan isn’t all that bad. 85$ gives you unlimited calling in canada, unlimited texting, call display, voicemail, call waiting and conference calling plus a gb of data

  • Justin Zubko

    i think they are also just trying to piss everybody off so they get there 3 year contracts back again.

    • Justin Zubko

      they are also apparently getting rid of the loyalty offers so people don’t get special deals or get there bills lowered if they got charged a big amount (just a rumour i heard)

  • Guest

    the full retail value of the phone is almost double the price listed. if it were stolen and u were to file a police report it wouldnt be a 600 dollar phone it would be 1200. independed telus dealers (i work for one) pays over thousand dollars for the 650$ iPhone 4s. once we sell a phone for telus they give is the money back.

  • daftchemist

    That is what I meant :p.

  • shrek

    Who was really thinking, that the customer gets the better deal out of this?
    It was to expect that the providers recalculate the conditions.
    But in this case it looks like self serve. the phone prices are recalculated and the contract prices as well. E.g. $20 increase per month over 24 month is already $480 !! Not to look of the price increase up front.

    All providers have on day 0 the same prices, oops how could that be?
    For us as customers it is the best to hold off and wait until the fight starts over again and we hopefully get a better price structure. Not only in Canada, also in comparison to the rest of the word. We need to catch up as a country.

  • marorun1982

    I know this tread is old but man you quite blocked from the brain… a 55$ unlimited canada wide with 3 gb plan now cost 105$ so the guy number is not thats bad,

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