Sometimes, I think cell phone companies are math challenged.
I currently pay about $40-50/m and have a year and a half left on my contract.
I’d like to upgrade to an iPhone. This will increase my bill to about $70-80ish/month. I am willing to EXTEND my contract for another 3 years on top of that. I do not want to pay for the phone outright, because $600 is a lot.
Say I want the standard iPhone 3G. $100 with 3 year contract. $600 without. It’s (apparently) $400 to cancel a contract. So, I can save $100 by canceling my current plan and moving to Telus or Rogers.
Dear Bell: This is really, really dumb. How many customers did you originally lose when Rogers started offering iPhones? Now that you’ve finally got them… you’re going to lose more?
Man, cell companies in Canada are so fucked up.
Edit: I sent this letter to Bell, because they’re being dumb.
Hi there,
My current phone number is 778-YOUDONTNEEDTHAT, account number YOUEATBOOGERS, client ID SUCKITBELL. Last bill amount was $ENOUGH. I’ve contacted Bell about my account from this address before.
I’m interested in upgrading to an iPhone, but from conversations with phone reps it seems that this isn’t possible without buying the phone outright — at $600-700, that’s a bit steep. Especially since I’m told the fee to cancel a contract is $400, which makes canceling my Bell account and going to a competitor a much cheaper idea.
I’d be perfectly willing to extend my contract, rather than just having it reset to today — I have about a year and a half left on my contract I believe, and keeping my current contract (at a more expensive rate plan) AND extending it the additional 3 years that Bell requires to have the discounted new iPhone seems like a reasonable compromise, but one that the phone rep was unable to offer. Is this a possibility? Because right now, there’s absolutely no incentive for me to stay with Bell, and a rather convincing incentive to go elsewhere. I like Bell, and I’d rather stay here, but not if it’s over $100 cheaper for me to go elsewhere. My brand loyalty doesn’t go that far. (In fact, the somewhat bizarre options available detracts considerably from the brand loyalty.)
The math seems pretty simple — Bell either gets $400 now, and never hears from me again, or they get $100-200 now (depending on which iPhone I go with) plus $70-80/m for 4 and a half years. Say it’s 54 months (I’m not 100% sure when my current contract is up, I think it’s a little longer than that) but that’s a minimum of $3780. I’m no math expert, but this seems like more.
I know I’m not the only current Bell customer who would like to upgrade to an iPhone, but who still has time left on their contract, and I expect Bell to have a lot of pretty cranky customers, and a fair number who will who jump ship. Isn’t extending the contract (rather than resetting it to start today) a better option than annoying and/or losing good customers?
Regardless, please send me a copy of my contract (especially the cancellation section), including the exact date it is up. If this is not available electronically, it can be mailed to me.
Thank you,
Donna M. Jaggard
Of course, I don’t expect Bell to be up on their social media enough to see this… and quite frankly, I’m not convinced they care, since all of the local cell phone companies have the same ridiculous rules. But still. This is dumb.
It does kind of make sense. I bought a G1 (Android) about 6 months ago. The Mytouch 3G came out a couple of months later, but I’d have to pay full price for that as I’m not eligable for an upgrade.
On the other hand, the only difference is the hardware, and having had a touch-screen keyboard on my G1 for a while now, I realize not having a real keypad would drive me nuts.
(but like you, a “new” customer can get a Mytouch for significantly less than I can.)
It doesn’t, though — why not let you take your current contract and extend it further? Then they’ve still got you on the hook for the time you’re currently locked in (and, at my case, at a higher price) AND the additional 3 years.
I could wait until I’m eligible for a new phone, get the discounted price, and the difference to them would be the loss of the higher monthly rate plan.
Also, Bell & Telus only *just* now are able to offer iPhones (their 3G network launched this week). You’d think that they’d be willing to make exceptions for an entirely new product line that until now has only been available with their competitor.
But hell, regardless of any of the hows & whys & whats: Any time it is cheaper for me to drop my current provider and switch to a competitor is time for said providers to look into other options. I get that math is hard and stuff, but even cell phone companies understand that customer retention is a good thing.
I wrote the same letter. They called me and explained that no matter how stupid their policy is, they’re not changing it.
Also, it’s actually only $20/month remaining to cancel your contract. So it’s an even BETTER deal to ditch Bell.
(My math is 14 months = $280 to cancel and $199 for a new phone = $500; or $700 for a new phone. Suck it, Bell.)
The CSR I spoke to recommended I cancel my contract and sign up AGAIN with Bell – “I can do that?” “Yes.” WHAT THE HELL PEOPLE? Although that does ruin my quitting-in-a-huff, if they have a better rate plan than Fido or Rogers (I haven’t checked yet) I might do that instead.
So. Fucked. Up.
I managed to find a spot on my account that I *think* says when my contract is up — 20 months. Hahah. Well, $400 is still better. :)
I pricechecked, and it looks like for the features I want… they’re all almost identical in price. Go figure. Telus edges out Bell & Rogers by a few bucks. I’m tempted, even though the “former Telus employee” thing in me is shrieking like an eel about to feed on human flesh.
Yes, they are all evil aren’t they. Depending on how long the promotions are on for the iPhone, does it make any financial sense to wait a month or two?
I have been tempted by the iPhone, but not sure if I am that tempted since my usage usually averages out 40 to 50/month at most (I still have a plan with by the second billing and the phone is from 2001). I also think that the limited data plans still really suck. What plan features were you seeking?
Also, I am really hoping that the Moto Droid gets a vendor in Canada (only in the US from Verizon; launch was today) – I’d like to try it out to compare it to the iPhone. And, have you seen the droiddoes ads (or the website, http://www.droiddoes.com).
Basic minutes. I use about 80-90ish, so the 100-150 minute plans suit me fine. I’d like some data transfer as well — I’d be willing to bet the 500mb plans will be fine for me, too. I just want basic things like email on the go, the occasional twitter update, facebook, dumb shit like that. I’m not a heavy user, so all of the basic plans that Rogers, Telus & Bell offer would do just fine. The only thing I really need that isn’t standard is caller ID (which should be, bah.)
Nick’s had an iPhone for a year now, and I like his. My mother had offered to get it for me for my birthday, but that was assuming the discounted “with plan” price, not the “buy me out of my contract” price. Bah.
I can’t justify $400 right now (just before christmas? yeah right), but I’m pissed enough that I might just do it in the spring just out of principle. Sure, any of the other providers would fuck me just as hard, but I’m irrationally angry at Bell, not at the other providers. :D
@Ivan: Rumour has it that Bell and Telus will be getting the Droid fairly quickly. We’ll see tho. I’m hoping so.
I long ago heard of a good idea for how to get your cell company to cancel your contract on you, thus getting you out of having to pay the cancellation fee.
Sadly, it requires that you don’t pay for roaming. I don’t know if the roaming situation in Canada is the same as here. If it is, then the loophole is because you don’t pay for roaming calls, but your cell company does. Thus, when you get your unlimited minutes (nights and weekends) you call a number that will make you “roaming”, then leave the phone on as long as you can.
From what I understand, you’ll get a warning leter about how you may be better off with another provider, but after that the company will end your contract.
All things considered though, I don’t know if this solution is any good for you, if it would even work.
Do you know how much say Apple had in the deals with the Canadian phone companies? Their clout was behind some of the more onerous things that AT&T do with the iPhone.
I don’t think this will help you in your quest, but for about 5-6yrs now I’ve been with Telus and have been very happy with them. Last November my cell died (well the screen died, you kinda need those) and what Telus told me was that as long as I keep a 3 year contract, 1.5 years into the contract I can renew the contract and get a new phone for either free or the cheap price you get it for for signing the 3 year contract. So this spring I’ll be getting a much nicer phone while renewing my contract, even though I’ll only be 1.5 years into my current contract. I’m pretty happy with that.