Rogers to implement 2-year contract pricing “shortly”

Ian Hardy

July 16, 2013 4:18pm

rogers-2-year
News rushed through Canada yesterday from both TELUS and Bell that they’ll be imminently adopting 2-year wireless contacts. Bell will unofficially start 2-year terms on July 17th and TELUS on July 30th. Many other carriers, mainly sub-brands of the Big 3, have been offering 2-year contracts for a number of years. Rogers, which is Canada’s largest carrier with over 9 million customers, has not commented on their plans to shift towards a permanent 2-year contract structure, but an internal doc we received indicates that something will be coming “shortly.”

“The new Wireless Code impacts all carriers who have wireless contracts longer than 2 years. As such, we will be introducing new two-year contract and will share more details shortly. At Rogers, we are working hard to implement the Code and to make positive changes that will benefit our customers. Please stay tuned for more details, which will be provided shortly.”

These changes from the carriers are in direct response to the CRTC’s new Wireless Code that will go live on December 2nd.

(Thanks tipster!)

  • Richard Xing

    “At Rogers, we are working hard to implement the Code and to make positive changes that will benefit our customers.”

    I would love to see what “positive changes” Rogers’ll dream up.

    • Sraf

      I want to see how they spin higher prices as a positive

    • grantdude

      A positive for its shareholders.

    • Alvin Avanzado

      “Positive changes”? Oh wait, let me go to sleep first maybe I can dream about it.

    • Alex

      See the Telus prices? It will be the same.

    • moe

      Probably higher than telus

    • PAmos

      You have to think in basic math terms. “Positive changes” is code for adding a dollar figure to current plan prices. Eg: current $60 monthly plan + $15 = $75 that is a “positive change” for customers, they get to give us more money.

    • CC

      Good math there. :)

  • IJustGotaTan

    The poor carriers won’t be able to kidnap customers for 3+ year anymore. So sad :-)

    • pegger1

      There was no kidnapping. It was a customer choice. Now everyone is going to be screwed with the higher pricing based on 2 year contracts. I’d much rather lock in for 3 years at lower pricing.

    • Me Ted

      Another victim to the incumbent FUD machine.

    • RiTZiE

      It was completely customer choice… Everyone had the option of a 2 year contract with the carriers, however everyone wanted the lowest price and promo with the 3 year term.

      It seems as though nobody even knows they don’t need a contract and can just purchase a phone at full price from certain manufacturers or online retailers. Then you pick a carrier and get a monthly discount for bringing your own hardware.

    • Cyotik

      Hah, monthly discount for bringing your own hardware to Rogers? Maybe I’m out of the loop here but I’m pretty sure that doesn’t exist.

    • Deli

      10% for BYOD has been around since early 2013 – at least. so ‘hah’.
      I would be nice if everyone on this forum educate themselves before trolling.
      We begged for this, we got the 2yr max terms and now we are going to pay more for the phones. Simple economics.

    • CC

      My friend got $10 off each month by having his own phone and sign on a month to month plan at Rogers back in May. They were showing ads all over their stores a few months ago. I don’t know if that’s still valid.

    • Nadefrenzy

      Compared to the rest of the world? no. The “lowest price and promo” with 3 year is crap.

    • Jim__R

      The old 2 year contracts did not provide anywhere near 2/3 of the subsidy of the 3 year version. So they were effectively DOA.

      In a logical world (and one not run by an oligopoly), a 2 year contract would provide 2/3 of the subsidy of a 3 year contract. And a 1 year contract would provide 1/3 of the subsidy of a 3 year contract. Instead we saw 1 and 2 year contracts with only token subsidies that enabled the carriers to say “hey, we offer 1 and 2 year contracts”, while full well knowing that nobody with half a brain would take one.

    • kroms

      Your Delirious . WAKE UP !

    • crimsonablue

      How about a 4 year contract? Or a 5 year contract? Or hell let’s go for a 25 year contract tied to your mortgage /s

    • Nadefrenzy

      Sheep. I hate when sheeps defend corporate price gouging. Don’t be a sheep.

    • Izzkid

      You’re right, we need more reasonable pricing. But what is your definition of reasonable pricing? $30 a month with unlimited everything and a free smartphone every 2 years? With the revenue drop, what do you think the Shareholders will demand? Layoffs?

    • accord1999

      AT&T starts at $60/month for smartphones, Telus’s 3 year contracts only required $50 for subsidization for smartphones. Verizon starts at $80/month.

      What I noticed was that I would spend less in 3 years total with Telus, then I would in 2 years with Verizon. I also noticed that by the amount I save monthly versus American plans, I could easily cancel after the 2nd year. I also noticed that if I paid more upfront, as with Fido’s Tab24, I would save hundreds of dollars in 2 years versus AT&T with a much better plan.

      Now it appears that the Big 3 are matching the American 2 year plans, especially Verizon who have the most expensive plans, a poorer selection of phones and yet are wildly successful.

    • Who Needs Facts

      You are bringing facts to a debate with people that have no intention of listening to them. The story is exactly the same if you look at 2 year pricing plans on ANY carrier at the US Best Buy site.

      I know it. You know it. And the majority of people know it. The problem is, the uneducated on the matter do not want to know it.

    • Scazza

      God, don’t bring that logic in here! Lets pretend comparing the US carrier market to the Canadian one is apples to apples! Hell, while we are at it, whats the reason the US prices suck compared to the UK ones? Or why the UK ones suck compared to German prices? Or how Australia is leading the way in many regards?

      Oh, thats right… different countries. Damn, it sucks that all these people on here ever do is whine about how we should be like, or better than everyone else without thinking its more complicated than basic pricing differences.

      Like I said, don’t try to convince these simpletons.

    • Maria Hernan-Sanchez

      Remember there is a currency exchange rate to add.

  • beyond

    uh oh,….brace yourselves

  • canmerica

    3yrs was a CHOICE. Now we’re all stuck with MORE EXPENSIVE monthly plans, good job morons. If you didn’t want a contract, no one was stopping you for paying full price for the phone. Everyone wants something for nothing – and now all of us are going to pay.

    • Ken K.

      you probably work for Rogers, but why is Canada the only country on the planet where 3 year contract is the norm?

    • pegger1

      Because CRTC holds back competition

    • CC

      Because we are cheap and wants free phones. We are Canadians.

    • montrealheat

      Its called purchasing power, ever heard of it?!?! That’s why your Honda costs more north of the border, your SmartTV, etc, etc. Throw in a population that runs on credit but still wants the latest and greatest phones at almost no cost and you get three year terms.

    • kroms

      LMAO. AH no. It’s called being DUMB and not allowing competition in this country. Why do you think ROGERS is so Big ? 30 million, 300 million same thing as long as our draconian laws and rules are in place to benefit companys like Rogers/Bell.
      The CRTC was suppose to protect Canadian Company’s but they created this mess and monster called ROBELLUS. What the CRTC SHOULD have been doing is Protecting the Canadian People/customers.

    • montrealheat

      Sigh, I guess this is what a Democrat feels like when trying to discuss with a Republican. Have you actually ever looked at price plans world wide and what they pay for there hardware? Not reading bipartisan articles, i mean really looked into it.

      And yes, purchasing power does matter, get a freaking clue. You don’t think when a company like Orange or Verizon approaches a supplier like Samsung that the subscriber base come into play when negotiating the purchase price of a new device… of course it does.

    • Izzkid

      How many national carriers are they in the states? 4 and they have 10 times the population than us. We need fair pricing that will satisfy the consumers and the market.

    • Cyotik

      We’re not just comparing with the United States though. Three year contracts are basically unheard of outside of Canada.

    • montrealheat

      Most places in Europe, they pay full pop for there devices or have to sign a separate financing agreement that can go on longer than three years

    • TheOnlyAdvantageToLiveInQuebec

      The problem is that people with NO CONTRACT will pay more for the same expensive sh***.

      Why the fu** should I pay more for 2 years contracts when I don’t even have a contract ?

      Just look at the Koodo plans, yes they are almost the same thing for people taking the TAB, but for the people taking a monthly plan without contract will pay more even if this is the same thing as before.

    • Deli

      10% for BYOD devices across multiple carriers is available.

    • TheOnlyAdvantageToLiveInQuebec

      You don’t get my point.

      The 25$ plan with Koodo is now at 30$. People before used to pay 22.50$ and now they will pay 27$.

    • jhk

      5 bucks a month differential…. are you serious

    • southerndinner

      New Zealand has them too but NZ is a joke

    • kroms

      Now look at this Fool and you can clearly SEE what is wrong with the Kids of today whom have NO Concept of what they are talking about. This TOOL would make you believe that the 3 Yr Contracts were actually CHEAPER then buying your own device. I love this Line though
      ” Everyone wants something for nothing – and now all of us are going to pay. ”
      Really ? LOL What a TOOL.

    • Scazza

      Up until 6 months ago, NO carrier in canada offered a discount for Bring Your Own Device. So yes, at that point, Signing a 3yr got you up to 600$ off a smartphone, and you paid the same price per month regardless. Even still, many of Robellus retention plans do not get 10% off today. So if you get on a retention plan today, you would save the cost of most of the device if you sign on for 3 years, vs no contract. Its actually pretty simple to comprehend.

    • Stephen_81

      Bell has had a 10% discount for BYOD at the very least since 2007, Koodo has had it at the very least since 2011, Rogers offers it as a promo, sometimes. It sucks that I have to keep Rogers for coverage my 2 lines on Bell/Koodo are much cheaper

  • Anonymous

    “At Rogers, we are working hard to implement the Code and to make positive changes that will benefit our customers SHAREHOLDERS.”

  • canucks4life

    Pass the lube pls…

    • DrCarpy

      And something to bite down on…cause it’s gonna hurt! Let’s be real. If carriers could charge for sneezing, they would. The mantra is “less for more”

  • Mr_Sweet

    New price per month is: [Total they would normally earn after 3 years] divide by 24 months

  • Humberto Giambrone

    I’m not with Rogers, have never been with Rogers and will never dream of being with Rogers, but even I shudder and cover my head whenever Rogers talks about benefitting customers.

  • kroms

    Let MORE Carriers in CANADA and then see how ROGERS will work HARD to impliment changes to benefit Canadians. Until then everyone on rogers will just tow the line and shut up about it. Personally people NEED to leave rogers , until that happens they won’t give a Sh%t

    • RiTZiE

      Let more in? The new ones are barely staying out or bankruptcy or are trying to sell off to other companies…

    • Comrade Yeti

      But his point stands: The big 3 keep raising prices and no one is leaving. Why would they drop prices?

    • Scazza

      Where would they get this spectrum from? Who would be funding these new carriers? Where would the jobs be located? What about the current new carriers? What about device exclusivity?

      If the CRTC and Industry Canada let it become a wild west like some morons on here want, nothing is stopping a massive carrier (like Winds original parent) coming in and gobbling everyone up including killing off those new carriers you guys so dearly love. They are already on the verge of bankruptcy. Also, do you really think these carriers are for-profit? They will take one look at the price Robellus is charging, offer a minor discount for the first while to build a customer base, then there will be 4 main players, and all 4 will price gouge.

      There are so many facets of the cellular carrier landscape that its immature to believe that opening the door to whatever will solve any problems at all. Its not as simple as you think.

  • southerndinner

    Rogers is busy working on ways to bend its customers over

  • Scott Cook

    rogers sucks !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  • Jermally

    The new 2 year pricing works out to be more on the long run. 20 more for the device and 5 to 10 mor for the plan equals 140 to 240 extra. Is this what people had in mind?

  • God

    Rogers, always first? Isn’t that the slogan? Sounds like they are going to be last again…

    • CC

      On price increase? I want company to be last.

    • God

      Did you expect to get two year deals without overall price increases? Please tell me you didn’t think nothing would change.

  • Who Needs Facts

    I realized that saying anything more on this subject was a waste of bits when I read on Openmedia’s facebook page “We need a national free internet (paid by taxes).”

    Seriously?

  • LeafsFanGirl

    Dear Rogers, shock us and bring back the 6gb promo plan for $60. You will get A LOT of customers jumping ship from all the other carriers who decided to rape us with their price hike. Wishful thinking but it’s worth a shot if Rogers reads this.

    • TallePeja

      I got 3gb w/ unlimited Canada wide talk/text for $60

  • John

    Verizon can’t enter the Canadian market soon enough. Heck, let Sprint and AT&T in too.

    • Stephen_81

      You honestly think Verizon would offer lower prices than Bell/Rogers/Telus?

      Verizon isn’t about to lose money like Wind/Mobilicity by giving away service for nothing. Verizon will gouge as well

  • disqusmy

    It is very positive change indeed coming, to Rogers balance sheet. We are their balance sheet to play with. :D

  • Owen Finn

    If Rogers seriously wanted to wreck the competition, they would just replace the words “3-year” with “2-year” and keep everything else the same. Seriously – they would DOMINATE.

    • Ronell  I.T. Man

      i totally agree

  • Kenneth Greene

    I hope this somehow trickles down to their other smaller carriers, like fido. Maybe their phones will get cheaper.