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iPhone 5 Canada: The Dysfunction Of Three-Year Contracts

Posted: 09/13/2012 11:47 am
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The painful reality of Canadian cellphone service has once again come to the forefront this week. There was, of course, Apple's big iPhone 5 announcement on Wednesday - more on that in a second - but there was also the report out of the Montreal Economic Institute that suggested Canada's wireless market is "functioning well."

According to the Globe and Mail story, the think tank believes that pricing in Canada is actually middle of the pack, contrary to conventionally held wisdom that the country indeed has some of the highest rates in the developed world. The Institute, which has been accused in the past of infusing right-wing ideology into its studies, suggests that wireless services are competitive globally, both in terms of pricing and innovation, so no additional regulation - as some are calling for - is needed.

Numbers and statistics can, of course, be interpreted in a myriad of different ways, so it's somewhat pointless to argue against such conclusions. There is, however, one number that can't be disputed that suggests Canada's wireless market in fact isn't "functioning well." That number is three - as in three-year contracts.

When Apple chief executive officer Tim Cook unveiled the updated pricing for the company's new lineup of iPhones on Wednesday, led by the iPhone 5, he pointed out that the suggested prices were on two-year contracts. The iPhone 5, for example, would cost consumers $199 on such a deal.

That's the norm in most countries, but it's of course not the case in Canada. Consumers here can expect to pay about the same, but on a three-year contract.

That extra year makes a big difference. For one thing, it takes negotiating power away from consumers for an additional 12 months. Many people who have been on contracts know that the only time they have any leverage with their existing provider in getting a better deal is at the end of that agreement. The provider has an incentive in keeping the customer from switching to a rival, so it may offer a better deal. A three-year agreement means this happens less frequently in Canada than in most other countries - exactly 33 per cent less frequently.

Secondly, three-year contracts discourage customers from upgrading phones more often. Most providers offer upgrade options two years in, but this usually ends up costing the consumer extra. Not only does this keep subscribers on older phones longer, but if iPhone sales really can boost the economy - as one analyst has suggested - then three-year contracts are actually hurting Canadian prosperity.

Wireless providers have said they need to have three-year contracts because the amount of subsidy they pay to phone manufacturers is high, and they ultimately sell fewer phones than a larger country like the U.S. That's bunk, of course, because much smaller countries - those in Scandinavia, New Zealand, to name a few - pay the same subsidies and sell even smaller volumes, but don't have three-year contracts.

Canadian carriers have also argued that they offer better monthly value, which again is not true. Studies from the Montreal Economic Institute aside, Canadian wireless providers have some of the highest per-user revenues in the world, in some cases making as much from one customer as some European carriers make from two.

That said, Apple is also at fault. The top-end iPhone 5 with 64 gigabytes of storage is selling for $899 in Canada without a contract. Fortunately, with cloud storage and the fact that the phone isn't the ideal device for watching lots of videos on, not many will need that kind of space. Most buyers can probably settle for the cheaper 16 GB version at $699.

Still, the iPhone is believed to be Apple's most profitable product, with a margin of 49 to 58 per cent, according to documents that came to light in the recent Samsung court case. The iPad, in comparison, has margins of only 23 to 32 per cent.

The iPhone price tag is out of whack with some of Apple's other products, which means the company is extracting a good chunk of money from wireless carriers, who are its primary, direct customers. In Canada, those providers have just been better at passing that pain on to consumers.

Apple's insistence on extracting a huge profit from the iPhone is therefore indirectly nailing consumers via wireless carriers. And it's not just Apple. If anything, the company provides an aspirational example to other manufacturers; if they think their device is as good as the iPhone, they'll charge carriers appropriately.

The question then becomes, who's milking people more: carriers or manufacturers? Either way, the Canadian wireless market is not functioning well because in the end, consumers have none of the power in deciding prices.

Loading Slideshow...

  • An Associated Press reporter holds the Apple EarPods during a product review in San Francisco, Wednesday, Sept. 12, 2012. (AP Photo/Jeff Chiu)

  • The Apple EarPods are shown during a product review in San Francisco, Wednesday, Sept. 12, 2012. (AP Photo/Jeff Chiu)

  • Apple unveils new iPhone model

    Technology giant Apple has unveiled a raft of updated products including the latest model of its new iPhone. The iPhone 5, which weighs in at 112 grammes, has a 4in screen - half an inch bigger than previous models, at Kings Place, Central London.

  • Apple unveils new iPhone model

    Technology giant Apple has unveiled a raft of updated products including the latest model of its new iPhone. The iPhone 5, which weighs in at 112 grammes, has a 4in screen - half an inch bigger than previous models, at Kings Place, Central London.

  • Apple unveils new iPhone model

    Technology giant Apple has unveiled a raft of updated products including the latest model of its new iPhone. The iPhone 5, which weighs in at 112 grammes, has a 4in screen - half an inch bigger than previous models, at Kings Place, Central London.

  • Apple unveils new iPhone model

    Technology giant Apple has unveiled a raft of updated products including the latest model of its new iPhone. The iPhone 5, which weighs in at 112 grammes, has a 4in screen - half an inch bigger than previous models, at Kings Place, Central London.

  • Apple unveils new iPhone model

    Technology giant Apple has unveiled a raft of updated products including the latest model of its new iPhone. The iPhone 5, which weighs in at 112 grammes, has a 4in screen - half an inch bigger than previous models, at Kings Place, Central London.

  • Apple unveils new iPhone model

    Technology giant Apple has unveiled a raft of updated products including the latest model of its new iPhone. The iPhone 5, which weighs in at 112 grammes, has a 4in screen - half an inch bigger than previous models, at Kings Place, Central London.

  • Apple unveils new iPhone model

    Technology giant Apple has unveiled a raft of updated products including the latest model of its new iPhone. The iPhone 5, which weighs in at 112 grammes, has a 4in screen - half an inch bigger than previous models, at Kings Place, Central London.

  • Apple unveils new iPhone model

    Technology giant Apple has unveiled a raft of updated products including the latest model of its new iPhone. The iPhone 5, which weighs in at 112 grammes, has a 4in screen - half an inch bigger than previous models, at Kings Place, Central London.

  • The new Apple iPhone 5 is displayed Wednesday Sept. 12, 2012 following the introduction of new products in San Francisco. The iPhone 5 is a blend of beauty, utility and versatility. (AP Photo/Eric Risberg)

  • Apple unveils new iPhone model

    Technology giant Apple has unveiled a raft of updated products including the latest model of its new iPhone. The iPhone 5, which weighs in at 112 grammes, has a 4in screen - half an inch bigger than previous models, at Kings Place, Central London.

  • Apple unveils new iPhone model

    Technology giant Apple has unveiled a raft of updated products including the latest model of its new iPhone. The iPhone 5, which weighs in at 112 grammes, has a 4in screen - half an inch bigger than previous models, at Kings Place, Central London.

  • Apple unveils new iPhone model

    Technology giant Apple has unveiled a raft of updated products including the latest model of its new iPhone. The iPhone 5, which weighs in at 112 grammes, has a 4in screen - half an inch bigger than previous models, at Kings Place, Central London.

  • Apple unveils new iPhone model

    Technology giant Apple has unveiled a raft of updated products including the latest model of its new iPhone. The iPhone 5, which weighs in at 112 grammes, has a 4in screen - half an inch bigger than previous models, at Kings Place, Central London.

  • Apple unveils new iPhone model

    Technology giant Apple has unveiled a raft of updated products including the latest model of its new iPhone. The iPhone 5, which weighs in at 112 grammes, has a 4in screen - half an inch bigger than previous models, at Kings Place, Central London.

  • Apple Introduces iPhone 5

    SAN FRANCISCO, CA - SEPTEMBER 12: The new iPhone 5 is displayed during an Apple special event at the Yerba Buena Center for the Arts on September 12, 2012 in San Francisco, California. Apple announced the iPhone 5, the latest version of the popular smart phone. (Photo by Justin Sullivan/Getty Images)

  • Apple Introduces iPhone 5

    SAN FRANCISCO, CA - SEPTEMBER 12: Apple Senior Vice President of Worldwide product marketing Phil Schiller announces the new iPhone 5 during an Apple special event at the Yerba Buena Center for the Arts on September 12, 2012 in San Francisco, California. Apple announced the iPhone 5, the latest version of the popular smart phone. (Photo by Justin Sullivan/Getty Images)

  • Apple Introduces iPhone 5

    SAN FRANCISCO, CA - SEPTEMBER 12: The new iPhone 5 is displayed during an Apple special event at the Yerba Buena Center for the Arts on September 12, 2012 in San Francisco, California. Apple announced the iPhone 5, the latest version of the popular smart phone. (Photo by Justin Sullivan/Getty Images)

  • <a href="http://www.engadget.com/2012/09/12/apple-iphone-5-liveblog/" target="_hplink">Courtesy of Engadget.</a>

  • <a href="http://www.engadget.com/2012/09/12/apple-iphone-5-liveblog/" target="_hplink">Courtesy of Engadget.</a>

  • <a href="http://www.engadget.com/2012/09/12/apple-iphone-5-liveblog/" target="_hplink">Courtesy of Engadget.</a>

  • <a href="http://www.engadget.com/2012/09/12/apple-iphone-5-liveblog/" target="_hplink">Courtesy of Engadget.</a>

  • Apple Introduces iPhone 5

    SAN FRANCISCO, CA - SEPTEMBER 12: Apple Senior Vice President of Worldwide product marketing Phil Schiller announces the new iPhone 5 during an Apple special event at the Yerba Buena Center for the Arts on September 12, 2012 in San Francisco, California. Apple announced the iPhone 5, the latest version of the popular smart phone. (Photo by Justin Sullivan/Getty Images)

  • Phil Schiller

    Phil Schiller, Apple's senior vice president of worldwide marketing, speaks on stage during an introduction of the new iPhone 5 at an Apple event in San Francisco, Wednesday Sept. 12, 2012. (AP Photo/Eric Risberg)

  • The iPhone 5 is shown during an Apple event in San Francisco, Wednesday, Sept. 12, 2012. (AP Photo/Jeff Chiu)

  • Phil Schiller

    Phil Schiller, Apple's senior vice president of worldwide marketing, speaks on stage during an introduction of the new iPhone 5 at an Apple event in San Francisco, Wednesday Sept. 12, 2012. (AP Photo/Eric Risberg)

  • Apple Introduces iPhone 5

    SAN FRANCISCO, CA - SEPTEMBER 12: Apple Senior Vice President of Worldwide product marketing Phil Schiller announces the new iPhone 5 during an Apple special event at the Yerba Buena Center for the Arts on September 12, 2012 in San Francisco, California. Apple announced the iPhone 5, the latest version of the popular smart phone. (Photo by Justin Sullivan/Getty Images)

  • Apple Introduces iPhone 5

    SAN FRANCISCO, CA - SEPTEMBER 12: Apple CEO Tim Cook speaks during an Apple special event at the Yerba Buena Center for the Arts on September 12, 2012 in San Francisco, California. Apple announced the iPhone 5, the latest version of the popular smart phone. (Photo by Justin Sullivan/Getty Images)

  • Phil Schiller

    Phil Schiller, Apple's senior vice president of worldwide marketing, speaks about camera quality of the iPhone 5 during an Apple event in San Francisco, Wednesday, Sept. 12, 2012. (AP Photo/Jeff Chiu)

  • Phil Schiller

    Phil Schiller, Apple's senior vice president of worldwide marketing, speaks on stage during an introduction of the new iPhone 5 at an Apple event in San Francisco, Wednesday Sept. 12, 2012. (AP Photo/Eric Risberg)

  • Tim Cook

    Apple CEO Tim Cook talks on stage during the introduction of the new iPhone 5 in San Francisco, Wednesday, Sept. 12, 2012. (AP Photo/Eric Risberg)

  • Phil Schiller

    Phil Schiller, Apple's senior vice president of worldwide marketing, gives prices of the iPhone 5 during an Apple event in San Francisco, Wednesday, Sept. 12, 2012. (AP Photo/Jeff Chiu)

  • The Foo Fighters perform during an Apple event in San Francisco, Wednesday, Sept. 12, 2012. (AP Photo/Jeff Chiu)

  • Phil Schiller

    Phil Schiller, Apple's senior vice president of worldwide marketing, speaks on stage about new connectivity options during an introduction of the new iPhone 5 in San Francisco, Wednesday Sept. 12, 2012. (AP Photo/Eric Risberg)

  • Greg Joswiak

    CORRECTS ID TO GREG JOSWIAK, NOT EDDY CUE - Greg Joswiak, AppleÂ’s vice president of Hardware Product Marketing, speaks about EarPods during an Apple event in San Francisco, Wednesday, Sept. 12, 2012. (AP Photo/Jeff Chiu)

  • Tim Cook

    Apple CEO Tim Cook speaks in front of an image of the iPhone 5 during an Apple event in San Francisco, Wednesday, Sept. 12, 2012. (AP Photo/Jeff Chiu)

  • Tim Cook

    Apple CEO Tim Cook speaks during an Apple event in San Francisco, Wednesday, Sept. 12, 2012. (AP Photo/Jeff Chiu)

  • The Foo Fighters perform during an Apple event in San Francisco, Wednesday, Sept. 12, 2012. (AP Photo/Jeff Chiu)

  • Phil Schiller

    Phil Schiller, Apple's senior vice president of worldwide marketing, gives release dates of the iPhone 5 during an Apple event in San Francisco, Wednesday, Sept. 12, 2012. (AP Photo/Jeff Chiu)

  • Phil Schiller

    Phil Schiller, Apple's senior vice president of worldwide marketing, speaks on stage about the introduction of a new operating system during an introduction of the new iPhone 5 in San Francisco, Wednesday Sept. 12, 2012. (AP Photo/Eric Risberg)

  • Phil Schiller

    Phil Schiller, Apple's senior vice president of worldwide marketing, speaks on stage about new connectivity options during an introduction of the new iPhone 5 in San Francisco, Wednesday Sept. 12, 2012. (AP Photo/Eric Risberg)

  • Phil Schiller

    Phil Schiller, Apple's senior vice president of worldwide marketing, speaks on stage about new connectivity features during an introduction of the new iPhone 5 in San Francisco, Wednesday Sept. 12, 2012. (AP Photo/Eric Risberg)

  • Phil Schiller

    Phil Schiller, Apple's senior vice president of worldwide marketing, talks about the features of the new camera and iSight during an introduction of the new iPhone 5 at an Apple event in San Francisco, Wednesday Sept. 12, 2012. (AP Photo/Eric Risberg)

  • Phil Schiller

    Phil Schiller, Apple's senior vice president of worldwide marketing, speaks about camera quality of the iPhone 5 during an Apple event in San Francisco, Wednesday, Sept. 12, 2012. (AP Photo/Jeff Chiu)

  • Phil Schiller

    Phil Schiller, Apple's senior vice president of worldwide marketing, speaks in front of an image of the iPhone 5 during an Apple event in San Francisco, Wednesday, Sept. 12, 2012. (AP Photo/Jeff Chiu)

  • Phil Schiller

    Phil Schiller, Apple's senior vice president of worldwide marketing, speaks in front of an image of the iPhone 5 during an Apple event in San Francisco, Wednesday, Sept. 12, 2012. (AP Photo/Jeff Chiu)

  • Tim Cook

    Apple CEO Tim Cook speaks in front of an image of an iPad during an Apple event in San Francisco, Wednesday, Sept. 12, 2012. (AP Photo/Jeff Chiu)

  • Phil Schiller

    Phil Schiller, Apple's senior vice president of worldwide marketing, speaks on stage during an introduction of the new iPhone 5 at an Apple event in San Francisco, Wednesday Sept. 12, 2012. (AP Photo/Eric Risberg)

  • Apple iPhone

  • Apple Introduces iPhone 5

    SAN FRANCISCO, CA - SEPTEMBER 12: Apple Senior Vice President of Worldwide product marketing Phil Schiller announces the new iPhone 5 during an Apple special event at the Yerba Buena Center for the Arts on September 12, 2012 in San Francisco, California. Apple announced the iPhone 5, the latest version of the popular smart phone. (Photo by Justin Sullivan/Getty Images)




Loading Slideshow...

  • It Works On 4G LTE Networks

    At last, the iPhone will become a part of the LTE community, which means it will streams videos and downloads content at quicker speeds. <a href="http://www.pcmag.com/article2/0,2817,2409610,00.asp" target="_hplink">According to PC Mag</a>, LTE connectivity for the iPhone will be available through AT&T, Verizon, and Sprint in the United States.

  • It's Slimmer, Taller And Sleeker

    The <a href="http://www.huffingtonpost.com/2011/10/04/new-iphone-4s-unveiled-at-apple-announcement_n_994462.html" target="_hplink">iPhone 4S</a> has a 3.5 inch display (measured diagonally) and weighs approximately 140 grams. The <a href="http://www.huffingtonpost.com/2012/09/12/iphone-5-features_n_1877637.html?utm_hp_ref=apple-september-event" target="_hplink">iPhone 5</a> boats a 4-inch display and, though taller than its predecessor, is 18 percent thinner (measuring 0.3mm) and 20 percent lighter (weighing 3.95 ounces), according to Philip Schiller, Apple's senior VP of worldwide marketing. The Retina display on the iPhone 5 now "offers 326 pixels per inch" and a resolution of 1,136x640, <a href="http://www.pcworld.com/article/262242/apple_announces_iphone_5.html" target="_hplink">according to CNET</a>. The back of the device also looks slightly different than that of the iPhone 4S: "<a href="http://www.apple.com/iphone/design/" target="_hplink">The same [aluminum] used in Apple notebooks</a>" covers much of the back of the iPhone 5. Glass is inlaid above and below the aluminum -- either white "ceramic glass" or black "pigmented glass," depending on which color iPhone you select.

  • It Has Better Camera Features

    The <a href="http://www.huffingtonpost.com/2012/06/21/galaxy-s3-vs-iphone-4s_n_1615824.html" target="_hplink">iPhone 4S</a> had a VGA front-facing camera (which is less than one megapixel) and a eight-megapixel rear-facing camera with LED flash. The iPhone 5 brings some significant improvements to this department. <a href="http://venturebeat.com/2012/09/12/iphone-5-camera/" target="_hplink">According to Venture Beat</a>, Apple claims that the camera will take pictures 40 percent faster and will have the ability shoot in "panorama mode." You'll also be able to take photos while filming video -- there's improved video stabilization, too. But the iPhone 5's main camera will still be <a href="http://www.huffingtonpost.com/2012/09/12/iphone-5-features_n_1877637.html?utm_hp_ref=apple-september-event" target="_hplink">eight megapixels</a>.

  • The Battery Life Is Longer

    Who dosen't want a smartphone with longer battery life? Apple promises the <a href="http://www.huffingtonpost.com/2012/09/12/iphone-5-features_n_1877637.html?utm_hp_ref=apple-september-event" target="_hplink">iPhone 5 </a>will last 225 hours on standby, and eight full hours while talking on the phone or surfing the web through 3G. The <a href="http://www.huffingtonpost.com/2012/06/21/galaxy-s3-vs-iphone-4s_n_1615824.html" target="_hplink">iPhone 4S</a> falls just a bit short of the above estimates, maintaining only 7 hours and 41 minutes of talk time, or 6 hours and 56 minutes of web browsing.

  • Its Innards Are More Powerful

    The <a href="http://www.huffingtonpost.com/2011/10/04/new-iphone-4s-unveiled-at-apple-announcement_n_994462.html" target="_hplink">iPhone 4S</a> was built around Apple's A5 processor, while the <a href="http://www.huffingtonpost.com/2012/09/12/iphone-5-features_n_1877637.html?utm_hp_ref=apple-september-event" target="_hplink">iPhone 5</a> houses a slightly faster A6 processor. Apple claims this upgrade gives its latest device twice the computing power.

  • It Comes With New Accessories

    The iPhone 5 steps away from the classic charger ports that have been in use for Apple products since 2003. Say goodbye to the 30-pin dock and hello to Lighting, a <a href="http://www.huffingtonpost.com/2012/09/12/iphone-connector-iphone-5-dock-charger-lightning_n_1878282.html?utm_hp_ref=technology" target="_hplink">reversible 8-pin connector</a> that's approximately 80 percent smaller than the previous charger port. The new smartphone will also be sold with <a href="http://www.huffingtonpost.com/2012/09/12/earpods-apple-new-earbuds-headphones_n_1878472.html?utm_hp_ref=technology" target="_hplink">EarPods</a>, Apple's latest (and supposedly more comfortable) version of earphones. Without purchasing an iPhone or iPod, these new buds retail for $29.99

  • ...But It's Got A Heaftier Price Tag

    The iPhone 5 is priced on the same scale that the iPhone 4S was when it launched. Purchasing a two-year data contract from a participating wireless carrier will set iPhone 5 buyers back $199 for a 16GB model, $299 for a 32GB model or $399 for a 64GB model. Now that the iPhone 5 is official, the iPhone 4S is getting an attractive price cut. Apple will now sell the 16GB iPhone 4S for $99.

 

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The painful reality of Canadian cellphone service has once again come to the forefront this week. There was, of course, Apple's big iPhone 5 announcement on Wednesday - more on that in a second - but ...
The painful reality of Canadian cellphone service has once again come to the forefront this week. There was, of course, Apple's big iPhone 5 announcement on Wednesday - more on that in a second - but ...
 
 
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munkiemagic
1 Fans
06:23 PM on 09/28/2012
I'm on my 3rd consecutive contract with Orange.. Each has been for 2 years.. And NEVER has the phone lasted me as long as the blooming contract did!
I am not due to upgrade untill April, but i have already gone through a HTC, Sony Ericcson and now a Blackberry.. And this is not due to excessive wear and tear. Phones simply aren't made to last as long as the contract they make you sign.
Easy money :(
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ccwestcliff
1 Fans
 
07:31 PM on 09/17/2012
Bravo! This is the article my heart and mind wanted to write since moving to Canada earlier this year from UK! The last time I had a three year contract was sometime last century (!!!) and since then either pre-paid or two year contracts.

The last contract was for an iPhone 4 on Three UK where I paid £30 ($47.50) / month for 500 mins (any network any time within UK - no incoming nonsense), 5000 text (any network), 1GB of data (!!!) and paid £ 169 ($267.50) one-off for the iPhone 4 32GB - that was in September 2010, now 2 years ago.

Having compared the tariffs in Ontario (being a happy New-Torontonian) I can't believe what a rip-off the tariff structure is! What especially enrages me is the fact that on the majority of contracts below $40-50 the inclusive minutes count outgoing and incoming calls! What the hell? I pay the provider to make calls, so someone else pays their provider to call me and not me!

I think Canada is a classic example where telecoms monopoly - and lobby by the looks of it - is still in full swing and sadly the customers don't seem to argue (Cable / Internet / TV is another very good example). If I would be a customer of one of the big three (Bell, Rogers, Telus) I would write a complain to the CEO and ask him to explain how he justifies the contract length and the charges.
Permalink  |
ragemachine
5 Fans
01:12 PM on 09/17/2012
Who wants to start a CELL PHONE COOPERATIVE that operates on a break even basis? Can start a Communications Cooperative...
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bopkit
10 Fans
07:31 PM on 09/14/2012
my fido contract was ended over a year ago. i will not pay money AND enter a new 3 year contract for a phone that is only usable with that carrier.
the contract is a year longer than the reasonable life-expectancy of the hardware/software, and so is disingenuous. they keep you roped in by letting upgrade after 2 years (with another 3 year signing).
i'll be buying an unlocked phone to replace my 4 year old 3G and i'll move to another carrier any time i find a situation i like better. i won't be stuck, and i'll use my AT&T GoPhone account when traveling the US.
BTW that AT&T no contract, pay as you go plan is $2/day for unlimited calling anywhere in the ConUS, with unlimited texting to US/CDN/Mex. and the days you don't use your phone are not billed. calling CDN numbers is only 20c a minute. the only thing occasionally lacking is the non-urban coverage. makes canadian rates and billing look ridiculous. why do we pay long distance to call other areas? it's all up to the satellite and down to the tower no matter where the call is made. pure gouging. we have the worst cell plans in the world.
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gommerthus
14 Fans
 
04:08 PM on 09/14/2012
my grandpappy didn't have nor need no cell phone and quite frankly nor do I, my good ol' rotary will last me till I'm six feet under, you kids can't say the same for those plastic toys which'll only last you 2 years tops. fact is they don't make 'em like they used to

you young whippersnappers will never know, back in MY day where we had to study the map and KNOW where we're going or we didn't leave the front door. we didn't ask for no directions and we never needed to.
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Andywilliams
0 Fans
10:49 AM on 09/14/2012
The funny thing is, as of 10:48am, Friday, September 14, 2012, most of the Canadian carriers' iPhone 5 pages are not working. Rogers.com: it's a dead loop between "reserve" and "going back to homepage", Fido.ca: after you click "reserve", it will bring you to a generic "how to reserve a phone" page. Only bell.ca is doing a better job with a customized pre-order page http://www.bell.ca/Mobility/Products/Apple-iPhone-5/ . I mean, what are they doing even not taking good care of their websites?
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AlexandreTheRed
2 Fans
 
10:29 AM on 09/14/2012
I would totally agree that by using 3-year contracts providers are just hurting themselves. They all need to sit down and decide which is better; increased competetiveness due to shorter contracts and lower fees and more consumers signing new, 2-year contracts, or a bunch of Canadians who are increasingly aware of how unfairly they are being treated and ultimately becoming more resistant to renewing contracts/buying new phones. I know which business plan I'd be persuing . Too bad long-term thinking isn't in the interests of most businesses.
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HUFFPOST SUPER USER
Mike Keohane
130 Fans
12:15 AM on 09/14/2012
How many 17 year olds sign these contracts when at that age you can't sign a contract?
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HUFFPOST BLOGGER
Penny Will
Founder of Flutegirl.ca
30 Fans
07:58 PM on 09/13/2012
I have two tin cans with a string running between them.

No contract
No fees
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peter aardvark
20 Fans
07:42 PM on 09/13/2012
you can get a koodo with no contract. phone $0 (mine is an LG500) on the tab (it doesn't actually cost anything as the tab get reduced over time) but if you cancel before it goes to zero you just have to pay the rest of the tab which isn't a lot, right now mine is at $99 after a year.

The minimum is around $25 per month and I added an extra $10 for data. The data isn't huge but I'm not a heavy user and at home its wi-fi for the rare time I use the net. On average I've been paying $35/mth.

Its not the fanciest phone but the screen is nice the camera is fine. I've used it to setup a wifi hotspot so that I could surf the net & check my email with my laptop when I was away in Ontario (a week at a cottage with no internet) the data bill was pretty low around $18.

and unlike the guy above who prefers the roadmap in the glove compartment, I've found the voice navigator one of the most useful features. I can say take me to 'Maplewood farm' or whatever and get voice directions (none of my I-phone friends had this feature, who pay on average $70 per month plus hundreds for their shiny phone.)

if you have to have the latest shiny gadget be prepared to pay.
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HUFFPOST SUPER USER
Trashcan Man
Luck does not reduce risk even when it seems to.
65 Fans
07:17 PM on 09/13/2012
I have a Galaxy S2. 3 yr contract which I negotiated hard for. I like it and it's a pure gizmo. But nothing compares to a pad of paper in my back pocket to make lists and a road map in the glove box to find streets. If a product isn't ten times more convenient than what it wants to replace then it's just work.
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Mitchell Begin
24 Fans
06:58 PM on 09/13/2012
I purchased an iPhone 3G with a three year contract almost 3 years ago. In my opinion its 12 months to many. The phone is basically out of date after 2 years. In the past year its been slow to respond and can't keep up with many new apps and updated operating system. I would not mind paying a little more for a two year contract.

But what gets me is, if I buy an unlocked iPhone from Apple. Rogers will still lock me into a contract for the data and voice plan, so its a no win situation for the consumer.
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HUFFPOST SUPER USER
Rhiness
35 Fans
 
07:42 PM on 09/13/2012
No, they will not lock you in to a contract. I've never had a contract and have used Rogers for several years.
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Retro Dude
77 Fans
09:15 PM on 09/13/2012
they will give you a plan more expensive per month than a locked in plan.
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Mitchell Begin
24 Fans
09:19 AM on 09/14/2012
They made have changed lately. 4 years ago I had an unlocked phone purchased from the manufacturer and took a data plan for it with Rogers, it was a 3 year deal.  
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H2Oasis2012
3 Fans
06:57 PM on 09/13/2012
please take it easy! iphone 3, 4 or 5 they are all the same. this is all about APPLE makes more money. stay with your iphone and wait till your three year contract is over.
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Bobo Macoute
178 Fans
05:48 PM on 09/13/2012
Went old school and am loving it. Very simple basic Nokia...$43 new on Kijiji. Fido no contract all you can talk in Canada plan $50. Done. NO squinting at iPhone, the thing holds a charge for 1 week, you can drop it repeatedly, I am not looking at my phone while sitting in a restaurant. Very happy with my cell plan of the future.
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HUFFPOST SUPER USER
mpasmith
Send in ... the clowns.
595 Fans
05:45 PM on 09/13/2012
Lots of other options for getting your shiny new phone that you don't need.

You can PAY for it.

Even if there were only 2 year contracts, new models would be out that you'd want to upgrade to before the end of 2 years.

Same scenario, regardless.
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