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Home : Canada : Rogers bows to demands, cuts iPhone data plan cost

Rogers bows to demands, cuts iPhone data plan cost

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CTV News: John Vennavally-Rao on the price cuts
CTV British Columbia: Peter Grainger on the decision to slash iPhone prices
CTV Newsnet: Nick Bontis, McMaster University
Canada AM: Kris Abel on the cost of iPhones
CTV British Columbia: Peter Grainger on the decision to slash iPhone prices

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CTV.ca News Staff

Date: Wed. Jul. 9 2008 6:12 PM ET

Rogers Wireless has slashed the cost of using an iPhone in Canada following an outcry of customer complaints over the price of its data packages.

The company is launching the much-anticipated phone at six stores across the country on Friday. Customers who buy it before Aug. 31 will now be eligible for a six-gigabyte data plan for $30.

Rogers representatives say six gigabytes will allow users to visit 36,000 Web pages, send or receive more than 157,000 emails or watch almost 6,300 minutes of YouTube videos each month.

The rate covers only Web browsing, emails and video, so phone service costs will be tacked on top of the $30.

The package is notably more economical than those included in the set of iPhone plans Rogers released earlier this month. The cheapest plan under that structure includes 400 megabytes of data, 150 minutes of weekday talk time and unlimited evenings and weekends for $60 per month plus fees and taxes.

"In other countries a lot of companies are offering unlimited data plans," CTV technology expert Kris Abel told Newsnet on Wednesday. "(Rogers' iPhone plans) really outraged a lot of people because they were thought to be too excessively high."

Outraged techies posted an online petition protesting Rogers' rates shortly after their release. More than 57,000 potential customers added their names, demanding lower prices and protesting Rogers' requirement that users sign a three-year service contract.

"That, more than the high prices, is the real sticking point," said Abel, noting some users upgrade their phones much more often than every three years. "Three years is a serious commitment. We don't know when the next iPhone is going to launch."

Rogers' iPhone customers will have a choice between the promotional rate and existing voice and smartphone data plans.

As part of an early morning launch event, the phone will go on sale at 8 a.m. this Friday at six select Rogers Plus stores and one Fido Store in Toronto, Montreal, Ottawa, Halifax, Calgary and Vancouver. The phone will then be available at most Rogers retails stores and select authorized stores during regular hours. The phone is not being sold at Apple Canada retail outlets.

With files from The Canadian Press

Comments are now closed for this story

Topsey
said

And how long will it be until Rogers decides to raise the rates? They'll wait just long enough to get their captive audience.


Galtor
said

well as long as you're in the 3 year contract you'll be good and by the end of the 3 years it will be time for something new anyways.


DaPink
said

Good, now I'll go to Telus and ask why my business's blackberry users are paying so much for less data.


WSV
said

Very true Topsey. They'll keep the rates "low" just long enough for this to all blow over. The public has a short attention span especially after everything is made to look "resolved". This will leave Rogers smelling like the proverbial rose in a few months.


Dale Mugford
said

A limited time offer on a still not-unlimited plan offering.

It's just ridiculous- this is a "breakthrough internet device" which needs to be unfettered when it comes to data consumption to be just that.

Rogers' lack of breakthrough pricing leaves much to be desired, still.


Pierre C
said

News if the high price for the new iPhone, being screwed to pay for incoming text messages that we have no control over and having the highest cel phone rates in world brings to mind the word "MONOPOLY".
I can't wait to see new cel phone companies come on board to give Bell, Rogers and Telus a run for their money!


Doug BC
said

I'm with "Topsey" on this one.Prior dealings with Rogers left me untrusting as well.But I feel the same way about Telus.I got rid of my land line with them because of their fraudulent long distance access fee.And I hope to change my cell phone when my contract runs out because of some very poor service.
Now,I wonder if there's any service I can trust past the time it takes to sign on.I do travel BC a lot.So I need good coverage.


Brett (Vancouver)
said

Like sheep to the slaughter.
The plan is still absurd. They are still charging extra for caller ID, Voicemail, and other functions that the phone offers as a hardware solution. These functions cost them nothing and do not add any load to their infrastructure.
Also, you won't be able to create your own ringtones from your own music library... you will have to pay the $7 or whatever it is for each one.
Sad how they stifle new technology and innovation. I'm waiting for them to start charging us to turn our phones off and on. Charge us for charging the battery, and charge us for adjusting the ring volume.

Open up your networks people... make more hotspots so that we don't need cellular.

Gary
said

We have to remember Rogers is in the ' profit' game. Business school 101- pricing- whatever the market will bear. Business school 102- objective- make as much profit as we can.

It has little to do with customers, only how much more can we suck out of them. They know this. They will corner you into a plan and then hook you on the devices and then simply raise the price..suggesting its supply and demand or the increased cost for them to service us. I am an MBA grad and business executive...the real issue is value. And I think that is something the customers/market should determine not the supplier.


Tom (Ottawa)
said

Topsey, this is how Rogers hoodwinks its customers, trap them into a 3 year plan and then stick it to them.

Sorry, the iPhone is not worth signing my life away for 3 years, considering the amount you are paying for the device, the monthly plan and to think it for 3 years.

iPod Touch with WAP 2 Enterprise will be released soon after the iPhone 3G madness has settled. People would be fools to fall into this Rogers trap.


dwayne-ottawa
said

And after the 3 yrs are over what then? Are you stuck with a phone that you can not afford to run? Why is there a limited time offer? I think the public should still stay away from this phone. Rogers is makin is sound sweet but it is not sweet the after thoughts of when you get your bill they will not be $30 a month. Keep revolting people we are winning.


Brett (Vancouver)
said

Broken down, it still looks ugly.

for 60$ per month + Made Up Access fee 6.95 + 911 fee $0.5, you get
150 daytime minutes (unlimited after 9pm)
75 texts
400mb data

For an additional $15 per month you get caller display and 2500 txts

For an additional $30- you get 6gb data package (for a limited period)!

So a minimum package with caller id (who doesn't use caller id and how does vvm function without it?) and increased data you'll pay

$60 + $6.95 + $0.5 + $15 + $30 = north of $112.- + tax



iJunk
said

Rogers and iPhone. Two useless items in one. Whatever happened to phones that were used as...well...phones? Now we have to be entertained, organized, and in communication with the rest of the world. How long before some idiot runs a red light and kills someone because he was using his new iPhone? How long before people start getting mugged or shot for their iPhones? It's a toy, plain and simple...a nice to have that only the elitist and pretentious among us want. If you've got money to spend on one of these pieces of junk, then you deserve to pay higher rates.


iPhlop
said

If you read the article Torsey, you will notice it says the low rate is until Aug. 31st. If you're going to vent, do your research. The iPhone sucks anyways. I got one through work while I was in the states last year. I had to send mine for manufacture glitches twice! Our company stopped got out of the contract they had with the service provider. So imagine a worthless unit on a worthless network. The iPhone on Rogers Network is gonna tank in less than 6 months.


Albert M.
said

This doesn't change much of anything. It's still a long 3 year contract. And Rogers will certainly go back to their old ways and raise fees on everything. Sorry Rogers. Much too little, and wayyyy too late. I'll get an iTouch in the meantime.


Steven Badman
said

Personally I'll never forget signing up for a low-end phone line with Rogers. Including all sorts of bizarre billing charges, the price tag went from $20 to double that. When I wanted to cancel the line, in spite of being told it only took a phone call to do so by the sales guy, a greasy little thing with a constant smile, I got billed for another 3 months after I first indicated I wanted out. There was always some sort of technicality to prevent me from cancelling that month, the customer care guys always reneged on what the previous guy had said... It was horrible. Honestly, it was, by far, the WORST customer care, and case of getting screwed out of my hard-earned money I ever saw.

So.
In summary.
I would NEVER trust anything with a Rogers tag to it.

Period.


ThinkinCanuck
said

This is a Trick! Remember it's a THREE YEAR CONTRACT! They may offer it a low plan for a few months just to hook you then after that you're stuck. Don't fall into this trap! Canadian's should wake up and not fall into this kind of Marketing Gimmick. iPhone is not a necessity. If you need on-the-fly surfing, get a laptop there are many hotspots nowadays where you can surf. Contentment is not measured by the gadgets you have but its deep inside you. You can live without this gadget.


CBW
said

As i recall the head of Apple announced to the world that the iPhone was being reduced in price to $200 everywhere so everyone could have one. Rogers no contract price is almost 400 dollars and 200 with the 3 year contract! Based on this alone Apple should pull the iPhone from Rogers.

Chris
said

the IPhone is overrated anyways. Unless you're in business and need access to email, this thing is just a waste of money. I would love to own a Blackberry, but even at 15 bucks a month for unlimited email access, I can wait until I get home to check my mail. The IPhone is good for what? Oh I know what it's good for... NOTHING!!!


GreekUnit
said

The iPhone supports WIFI which will be FREE and accessible city-wide (Montreal) in less than a year... hence getting a 3 year data plan is absurd.. Good News too.. we wont need a cell phone service carrier either soon, well be placing calls for free thru WIFI. The Carriers know their end is coming so they trying to get people to sign longterm contracts.


Basil
said

They do this because with no real competition, the market will support these prices. We have no choice, so most people elect to avoid a luxury technology.

Once the new spectrum from old TV signals becomes available, these companies might end up with some real competition- hopefully somebody will come by and offer a large minimum bid (like Google did in the US) on the condition that consumers be charged fair rates for data.


Prince
said

This is not backing down, this is just giving a adult a pacifier to keep the bad publicity out of the media, then come August 31,2008, they'll be back to their garbage!


iDon't Touch Phone for Help
said

IPhone closely sounds like "I Fun". A twist on self centred pleasing concerning gadgets.

I admit in considering an iTouch, but that was before I found out the words to it's commercial song advertising the unit. A better name for it would be the iSick!

That sales pitch will not get me, some of the posts here I agree with and I appreciate the heads up from iJunk and iPhlop.


K
said

I'm still wondering WHY we in Canada are paying out of our teeth for cell phones , and all those nice things we really don't need. These The Fed's should do something but hey I almost forgot we live in Canada we love to complain over our tims and that's about it.


Roger T
said

Perhaps a boycott of all ROGERS products and services can help them realize that not all consumers need their services! There are lots of other providers that are much cheaper.

Thank goodness I don't use Rogers, bad phone service and bad customer service.


John A
said

I wonder if Apple's childish plan of limiting 10-20 iPhones per store as a penalty to Rogers still stands.

I'm sure this was a marketing gimmic by Rogers anyway. Come labour day, still the same price.


LotusLand
said

None of these comments take into account the real supply/demand issues. Canada has always suffered from price gouges for almost every material good in this country! Anyone who owns a business will understand this. These comments about the iPhone are reminescent of the consumer outrage that made the headlines after the Canadian dollar soared above the US dollar. Consumers have failed to take into account that Canadians and Canadian prices will never be able to have the negotiating power to play with the giants (aka USA & Europe). A simple glance at the population numbers will tell the story. The USA boasts a population of 300 million people! Canada - a mere 33 million. Even the tiny conglomerate of the United Kingdom comes in at double that - 61 million! And these are only 2006 population census numbers! So just looking at the numbers alone - if the US carriers have the potential to sell 100x more phones and plans, the prices can be more competitive. Safety in numbers. Unfortunately, Canada will never be able to play with the big guys in terms of price breaks. But if that's the price I have to pay to live in a country where I'm not bumping elbows with the next bloke beside me, where there are plenty of green spaces for me to roam around in - then that's the price.


Ken
said

The 3 yr. contract stinks but 6gb for $30 is great.

Down in the US At&T offeres unlimited data for $30 but if you read the fine print, unlimited is capped at 5gb.

And hey, if you want the newest most high tech toy, you've gotta be prepared to pay the price. Don't go into a Mercedes dealership and ask for Toyota Yaris pricing.


james
said

Like with Bell/Telus recently, the government needs to intervene. Why does Rogers have a monopoly on iPhone? This is like Esso or Shell having a monopoly on selling gas.

Band-width throttling, charges for text messages, bogus charges attributed to the CRTC, and now this nonsense from Rogers. Its time to reign Bell, Rogers, and Telus in and bring down heavy government bureaucracy on these three bandits.


Ashley
said

I agree that even though they may have reduced their data plan price, it's still ridiculous. As sweet as it would be have an iPhone, it's not worth paying so much. And...the phone is not even available across Canada. Looks like those of us who live in Manitoba aren't even able to buy one. That sucks! I'm sticking with MTS...they're cheaper, and they don't charge for incoming texts.


Will
said

Geez, a lot of misinformation here.

First, $30 a month gets you 6 gigs of data, and you'll need a voice plan with that. Voice plans average about $30 a month, meaning that this new offer is a LOT better than the $60 plan that they were offering before. 400 megs vs 6 gigs. 15x difference for roughly the same cost!

Also, 6 gigabytes is pretty much equivalent to unlimited, seeing that the 3G network speeds are ~60kbytes/sec only, and the battery life is 5 hours. Do the math!

Lastly, no one is forcing you to buy it. You lived without one for so long, it's OK if you don't have it. On the same token, don't be such sour grapes about it. It seems like so many people want to pay $25 a month for unlimited data + a decent voice plan, and get the phone with no contract. That's not going to happen guys!

I think Rogers really did hear the legitimate criticism, and offered a decent remedy. To say they offered too little (15x more data for the same price!) is just ignorant.


whyvon
said

Not only is Rogers a company that has zippo for customer service, Telus and Bell is in the same group! I have never experienced such dissatisfaction! If WIFI will be up and running soon in Montreal, how much longer will it be for expansion to the rest of Canada? Meanwhile, what do we do until then - actually use the cellphone as a phone? I as well can wait to check my emails at home and if someone can't be bothered to leave a voicemail message....


Rick Yoo
said

Sleight of hand is always one of the best magic tricks and in this case the best business deal.

Based on people's premature victory celebration... it's not looking good for the "unlimited data plan" fight.

Canadian consumers have been flanked from the right and forgot the true battle (for unlimited data) was and is still ahead of us.

Unless this is quickly realised, the conquerers (Rogers) will win.

Folks, our fight has always been for unlimited data. We must not compromise. If anything, history has taught us how compromise serves a platter of unexpectedly destructive outcomes; Canada being the only country with a 3 year contract is just one example.

Currently, the United Kindom's O2 phone company requires its customers to sign an 18 month contract for the $199 iPhone.

THAT'S ONLY 18 MONTHS or 1 1/2 YEARS PEOPLE!

Keep up the fight everyone but importantly... encourage those around you to do the same.


Craig
said

I think the answer is kind of obvious. If you don't agree with the charges, don't buy an iphone.

Let Rogers know that you do not agree with the rates (in a civilized manner).


PVT
said

Anyone who signs a 3 year deal with any of the big 3 before the market opens up to competition (should be within a year) deserve the rates they get. My advice - wait until more players jump in and then, once prices drop (and they will), sign a contract.


iRipoff
said

iJunk & iPhlop

iLoveU. You are 100% correct! :)


RD
said

Why is Rogers or any other co. still charging, or should I say, being allowed to charge ACCESS FEE, when there is a class-action suit in the works and all these companies will have to refund billions of $ which they have ripped off their customers over the years, if we win this case. Here's the point. IF you sign up the new ipod deal, just refuse to pay the $6.95 ACCESS FEE ( +$.35 GST) or you don't sign. Let's see what Rogers does then.


Stu H
said

Actually iPhlop, the article says if you buy the phone before August 31, you get the $30 rate, not that the rate will only apply until August 31. That suggests (not a guarantee, I realize) that as a promotional rate, you can sign for 3 years at $30/month (data) on top of the regular phone/service fees, for the duration of your contract (36 months). That's what makes it a reasonable promotion. I'm still not going to waste my money on all that icing, I really don't need it, I have a phone, an iPod, and a computer at home that lets me surf my emails. If people are that desparate to be connected to YouTube 24 hours a day, they really need to go camping for a couple weeks somewhere North of the communications bubble and re-evaluate their priorities.


SeNia
said

500 day time minutes, 2500 text messages 100 long distance minutes, voice mail, callers ID, + data package works out to be $90/month, better then Blackberry users have it. My previous package was all that other then $30 data plan for $60. I don't know about everyone here but I am more then satisfied.


Losha
said

Almost doubling the limit on data usage with a drop in price from the original offering implies that it is not a capacity issue. Rather, it appears to be securing additional revenue streams over the life on the 3 year contract by Rogers. Who would have thought 3 years ago that we'll be able to watch movies on the internet in DVD quality? Who is to say what sort of data heavy programs / services will come to life over the next couple of years? Thats where Rogers will get the last laugh, because this 6GB ceiling will be broken and users will be on the hook. Now, don't forget that smart phones are not a necessity. In this faltering economy, I don't NEED and iPhone. I just want it. I was willing to bail out of my Bell contract a year early at a penalty price of $240. Until there is an unlimited data on the table, I will control my "wants over needs" and stay where I am. Not that I'm too excited over Bell's plan to charge for incoming messages. Lets just hope Canada Post doesn't follow suite and start charging for the right to receive mail, including without limitation, those dreaded bills from telecom companies.




Jerry
said

I'm still not buying an iPhone, the least Rogers Wireless can do is go unlimited data for a reasonable price. Until they do I will not be buying an iPhone and will stay away from using Rogers Wireless. I don't agree with companies being able to monopolize a certain kind of wireless market. It's time the government makes a change!


ReyC
said

To "Steven Badman", I agree with you, I signed up for a promo 20 dollar cellphone plan with Rogers but I being charged double 20 + 6.95 System Access + 0.50 911 + 7 Call Display + some other charges & taxes. Their Customer Service is also the worst, they're good only when you signup but when you downgrade/cancel they'll give you all sort of reasons like it will have to be in-effect the next billing cycle then you'll just be shocked when you received your billing at all sorts of Bizarre charges get slapped at you. And it took me almost 3 months of constantly calling them and talking to a different agent before the problem finally resoled. They are the WORST customer care I agree.

Shamaro
said

These cell phone companies have a monopoly in Canada and the CRTC has allowed them not only to monopolize this industry, but to gouge the consumers with HUGE and sometimes grotesque billings.

Canada has some of the highest cell phone rates in the world and it's time that competition be allowed to be within this market, to allow us the consumer to get more bang for it's buck.


Sylvain
said

Don't see this as much of a deal. The earlier rated $60 for 400MB included 150 day time minutes. The new rate of $30 is ONLY for data. You now have to buy an additional voice plan for $30 or more. So with the exception of the increased data bandwidth you still need to pay more than $60/month + fees + tax for this phone. That is going to likely be $100 / month.

I for one have a great dislike for the cell phone industry so I avoid it. I have a minimal voice plan and that is only because my work insisted I get a phone.

If we all just stopped paying for overpriced services the price would come down. I’m doing my part and doing without the overpriced services. Rogers recently upset me with their internet broadband “traffic shaping” such that I dropped my premium service to the light service. Why pay for premium service if all I am going to be delivered is sub par product.

PS. This has nothing to do with P2P. I use skype as a webcam / phone service and Rogers treats the encrypted traffic from this legitimate app as a P2P client cutting my bandwidth. Webcam connections with my father on Rogers just down the street looks like I’m on 128k ISDN not the 8MB I was paying for!

My Digital cable service will be my next target if Rogers does not smarten up. I really do not need TV that badly. With a new baby on the way its not like I’m going to have much time for TV anyway.



Matt
said

Canadian cell users have been taken for a ride for far too long.

We are stuck with a choice of 3 major providers who always make up an excuse as to why they can't offer better rates.

People are going to think having an iPhone is so great and then realise that $1,200 a year is way too much for a cell phone.

If they were smart, they would offer something like 250 Minutes, free evenings and weekends, call display, text messaging and unlimited data for $100 a month.

Enough people won't care about the price because they want to be smug and 'cool' with all of their friends so they can show off their iPhone.

Give me a blackberry... it does almost everyhting the iPhone does and my plan is less than $70 a month.


Derek
said

Since iphone has wifi I can only hope the community in the lower mainland will start to host more open wifi solutions.


Rob from the Peg
said

Canadians should still be outraged by what Rogers (and others) are doing when it comes to the pricing of their services in this country. Yet I'm sure their token price drop will be enough to make most iPhone users happy while those south of the border are still getting a much better deal for only a 2 year commitment.


Margaret
said

RD

They will take the Access money and IF they lose the case and have to refund the fee do think they are going to pay interest for the time they had your money. NOOOOOO!!!!

It may take a couple of years to sort out. $6.95 x ??,000 and will they reimburse you teh $0.35tax, again NOOOOO!!!

They win either way.

I'm waiting to see what happens when TV's go to HD and those of us who don't have the digital TV are going to be compelled to rent something or other to view our programs. Another rip-off in the works. That is when I stop watching TV, didn't have it as a kid and can do without it as a senior.


Jason E Davis
said

Let's face it - this is a toy for the wealthy or those who are able to writ them off as a business expense. They are lovely items, and exceptional quality - but ask yourself - do I need it, or is it just for show to my friends/colleagues? Could my money better go to a charity and have a basic mobile phone that is quite nice instead?

Also, you are stuck with only two providers - Telus and Rogers if you want to change providers and that is after you have done your 3 year commitment/contract.

Plus, there is no guarantee I don't think that they can't arbitrarily raise the costs and give you a notice in the mail like your home phone or cable bill.


Andrew
said

unless we start changing our habits and doing the right thing, we will
continue paying premium for something we shouldn't have. The right
thing would be to downgrade your phone plan immediately.
big corporate phone company like Rogers, Fido, and telus are making record profit every year. Although increase of various plans and options are available, many hidden fees and price remain the same. we get suckered into believing their added values in their advertisements but all it is is their deceptive and clever marketing
ploy.

i'm not in the crusade to destroy someone's livelihood but think twice next time you sign on a long term 3 years plan.



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