Why do we allow the cell phone companies to rob us?

Argus · June 25, 2009

Cell phone cancellation fees were originally implimented when the cost of the cell phone was high. They were to reimburse the cell phone companies for giving you an expensive phone, if you chose to leave before your plan was up. The phones they generally give out now, however, retail for under $30, but that hasn't stopped Canada's cell phone companies from gouging consumers for up to $500 in cancellation fees if they try to leave early - for any reason whatsoever.

A friend was with Rogers. When she moved just south of the city, however, it turned out that their Rogers phone was useless as they had no repeating towers there. Rogers insisted they keep the phone and keep paying, or else pay a $300 cancellation fee. Another friend bought a phone through a Bell Mobility dealer, and was told it was a 1 year deal. Fourteen months later he cancelled, and got a bill from Bell for over $400. They insisted he was locked into a three year deal, no matter what the dealer had promised him.

If I stop going to my local grocery store, they're not going to demand I compensate them for six months of unused, unpurchased gorceries. For that matter, I can cancel my home phone at any time without paying a penalty. The cell phone cancellation fees are a holdover from the past because of lazy politicians who are taking "donations" from the cell phone carriers to let them get away with murder.

They can't get away with this kind of ripoff in Europe, and even in the US there are moves afoot to regulate these cell phone fees. But in Canada we go along bilssfully accepting this wallet-rape at the hands of Bell, Telus and Rogers - all in exchange for largely inferior service by the most despised corporate entities in Canada. These are companies which find every possible way to screw over customers with niggling little nickel and dime fees, and lousy, uncaring, arrogant service. You'd think politicians looking for a way to get voter interest would pick up on this and promise to do something about it - but all I hear is silence.

Moonbox · June 25, 2009

In Britain they literally give away the phones for free and beg you to stay with them. In Canada our politicians let the cell phone companies hold our credit ratings hostage for cancellation fees that in no way can be justified and at the same time they jealously protect the wavelengths and prevent competition.

Bonam · June 25, 2009

It's not and should not be a matter of "regulation", but rather of competition. If consumers were sufficiently annoyed by these aspects of their contracts with their cell phone companies, they would look to their competitors. Even though the Canadian market is relatively non-competitive, there are still alternatives, which people can take.

Do we really need the government telling us how much we should pay for cellphones? The government is more than omni-present enough already.

kimmy · June 25, 2009

I have never regretted choosing a "pay as you go" phone plan. I have never trusted cell phone company contracts, and there are alternatives.

-k

Chuck U. Farlie · June 25, 2009

There are other options, but not that many, and all based on the same infrastructure (just like internet providers).

I don't use the cellphone much... so I use petro mobility. You can use any unlocked GSM phone or buy a phone from them... it is all pay as you go though, so not suitable for high use users. It uses the rogers network though... so at the end of the day rogers controls how much you will pay.

As Bonam said, the key is not more legislation but less... allow more companies to set up cellphone and internet infrastructure and they will come - there is money to be made.

In Indonesia you did not buy a phone from a network provider. You bought your phone at a shop and then bought a SIM card from which ever provider you wanted. The rates were a fraction of the price we pay here, and there were at least 6 or 7 different carriers you could choose from.

punked · June 25, 2009

Argus and Jack Layton always agreeing.

http://youthunited.ndp.ca/en/node/61/

Oleg Bach · June 25, 2009

Argus and Jack Layton always agreeing.
http://youthunited.ndp.ca/en/node/61/

Now with speech being 50% electronic - it is not fair to see kids or adults with 300 dollar cell phone bills...NOW what is taking place in the human evolution of communication - is that free speech is no longer free - you have to pay to communicate-- and if you can not afford to communicate - you are put at a sever disadvantage - in time the cell phone companies must realize that communication grants freedom and prosperity for the common population - this is just another example of the rich getting richer and the human addiction that is being a herd creature - now is begining to enslave the herd -- instead of the quality of life going up with technologies - IT IS ON ITS WAY DOWN..BUT GREED IS POWERFUL - EVENTUALLY THIS POWER DESTROYS THE GREEDY.

Oleg Bach · June 25, 2009

Now with speech being 50% electronic - it is not fair to see kids or adults with 300 dollar cell phone bills...NOW what is taking place in the human evolution of communication - is that free speech is no longer free - you have to pay to communicate-- and if you can not afford to communicate - you are put at a sever disadvantage - in time the cell phone companies must realize that communication grants freedom and prosperity for the common population - this is just another example of the rich getting richer and the human addiction that is being a herd creature - now is begining to enslave the herd -- instead of the quality of life going up with technologies - IT IS ON ITS WAY DOWN..BUT GREED IS POWERFUL - EVENTUALLY THIS POWER DESTROYS THE GREEDY.

Addictions can be broken - if the wireless wizards believe that they and their forever expanding companies are in for a free eternal ride on the backs of the young - well think again - don't underestimate their will for freedom - they might just walk down the street and start dropping their enslavement machines (collars) into the trash bins..look a the youth of Iran - what are the cell phone companies going to do if ten million kids suddenly toss the phone and other gizmos? Beat them with stick --- humans are not stupid - I tossed my very high end executive communication device out the car window at 200 k...that was ten years ago --- don't need no collar on my neck...besides they are so damned small - it turns you into a nit picking button pushing twit.

Borg · June 25, 2009

Cell phone cancellation fees were originally implimented when the cost of the cell phone was high. They were to reimburse the cell phone companies for giving you an expensive phone, if you chose to leave before your plan was up. The phones they generally give out now, however, retail for under $30, but that hasn't stopped Canada's cell phone companies from gouging consumers for up to $500 in cancellation fees if they try to leave early - for any reason whatsoever.
A friend was with Rogers. When she moved just south of the city, however, it turned out that their Rogers phone was useless as they had no repeating towers there. Rogers insisted they keep the phone and keep paying, or else pay a $300 cancellation fee. Another friend bought a phone through a Bell Mobility dealer, and was told it was a 1 year deal. Fourteen months later he cancelled, and got a bill from Bell for over $400. They insisted he was locked into a three year deal, no matter what the dealer had promised him.

If I stop going to my local grocery store, they're not going to demand I compensate them for six months of unused, unpurchased gorceries. For that matter, I can cancel my home phone at any time without paying a penalty. The cell phone cancellation fees are a holdover from the past because of lazy politicians who are taking "donations" from the cell phone carriers to let them get away with murder.

They can't get away with this kind of ripoff in Europe, and even in the US there are moves afoot to regulate these cell phone fees. But in Canada we go along bilssfully accepting this wallet-rape at the hands of Bell, Telus and Rogers - all in exchange for largely inferior service by the most despised corporate entities in Canada. These are companies which find every possible way to screw over customers with niggling little nickel and dime fees, and lousy, uncaring, arrogant service. You'd think politicians looking for a way to get voter interest would pick up on this and promise to do something about it - but all I hear is silence.

No one says you need to carry a cell phone - got by without them for years - we could all do it again

I spend less than 15 bucks a month on cell phones - an intrusion on my private time

Borg

Remiel · June 25, 2009

No one says you need to carry a cell phone - got by without them for years - we could all do it again
I spend less than 15 bucks a month on cell phones - an intrusion on my private time

Borg

No one says you need computer skills either, but you are at a disadvantage if you do not have them.

bush_cheney2004 · June 25, 2009

No one says you need to carry a cell phone - got by without them for years - we could all do it again
I spend less than 15 bucks a month on cell phones - an intrusion on my private time

Amen to that.....don't call me...not even in an "emergency"....better to call the police or a board certified surgeon.

Moonbox · June 25, 2009

No one says you need to carry a cell phone - got by without them for years - we could all do it again
I spend less than 15 bucks a month on cell phones - an intrusion on my private time

Borg

I agree with you but it doesn't change the fact that people are getting suckered into rip-off contracts. I dont' spend much more than you per month but when you boil down to it we have an oligopolist market and the people who DO think they need the service are getting gouged.

Bonam · June 25, 2009

I agree with you but it doesn't change the fact that people are getting suckered into rip-off contracts. I dont' spend much more than you per month but when you boil down to it we have an oligopolist market and the people who DO think they need the service are getting gouged.

People make their own choices. Only "suckers" get "suckered" into "rip-off contracts". If someone needs a service, then they pay for it whatever the going market rate for that service is. A person should do some research on the available options and pick the plan or contract that best suits them and their needs. There's plenty of alternatives besides multi-year contracts to get cell phone service.

Edited June 25, 2009 by Bonam

lictor616 · June 25, 2009

Cell phone cancellation fees were originally implimented when the cost of the cell phone was high. They were to reimburse the cell phone companies for giving you an expensive phone, if you chose to leave before your plan was up. The phones they generally give out now, however, retail for under $30, but that hasn't stopped Canada's cell phone companies from gouging consumers for up to $500 in cancellation fees if they try to leave early - for any reason whatsoever.
A friend was with Rogers. When she moved just south of the city, however, it turned out that their Rogers phone was useless as they had no repeating towers there. Rogers insisted they keep the phone and keep paying, or else pay a $300 cancellation fee. Another friend bought a phone through a Bell Mobility dealer, and was told it was a 1 year deal. Fourteen months later he cancelled, and got a bill from Bell for over $400. They insisted he was locked into a three year deal, no matter what the dealer had promised him.

If I stop going to my local grocery store, they're not going to demand I compensate them for six months of unused, unpurchased gorceries. For that matter, I can cancel my home phone at any time without paying a penalty. The cell phone cancellation fees are a holdover from the past because of lazy politicians who are taking "donations" from the cell phone carriers to let them get away with murder.

They can't get away with this kind of ripoff in Europe, and even in the US there are moves afoot to regulate these cell phone fees. But in Canada we go along bilssfully accepting this wallet-rape at the hands of Bell, Telus and Rogers - all in exchange for largely inferior service by the most despised corporate entities in Canada. These are companies which find every possible way to screw over customers with niggling little nickel and dime fees, and lousy, uncaring, arrogant service. You'd think politicians looking for a way to get voter interest would pick up on this and promise to do something about it - but all I hear is silence.

I suspect T-Mobil and other acrriers getting in would help, but yes we are getting completely raped by these companies, I pay 120 a month with rogers for 750 daytime minutes... appalling.

But it won't happen until our consumers get a brain... we really do have a dumb consumer base for these things..

Edited June 25, 2009 by lictor616

bush_cheney2004 · June 25, 2009

....There's plenty of alternatives besides multi-year contracts to get cell phone service.

Plenty of choices indeed.....no sympathy for making the wrong choice.

xul · June 25, 2009

Such things just work on the same way that the CEOs get their bonus when their businesses almost bankrupt.

Obama: Why can you still get bonus?

CEOs: All these was written on the contracts when we were hired.

Obama: But the business is going to bankrupt...haven't you got enough these years?

CEOs: It does not matter how worse the businesses are and how much we have gained, it only matters what the contracts content.

Obama: the chief of CIA, does Guantanamo Bay still have some free cells?

CEOs: ...on second thought, we have decided to donate our bonus to American treasury helping our country's economy, pure patriotism in our hearts.... :lol:

If Obama wants to cancel his plan, he probably doesn't need to pay cell phone cancellation fees.

Obama, a hero or a bully?

Edited June 25, 2009 by xul

bush_cheney2004 · June 25, 2009

...If Obama wants to cancel his plan, he probably doesn't need to pay cell phone cancellation fees.

Yes he does....or buy a new plan with a new contract.

What's the big deal....just pay the cancellation fee and move on.

Edited June 25, 2009 by bush_cheney2004

xul · June 25, 2009

Yes he does....or buy a new plan with a new contract extention.
What's the big deal....just pay the cancellation fee and move on.

I'm not always Obama's fan. :lol:

Fidel Castro would agree with Obama on this issue.

bush_cheney2004 · June 25, 2009

I'm not always Obama's fan.
Fidel Castro would agree with Obama on this issue.

Free choice to enter into a contract and free choice to cancel.....what more do you want? Why do people whine about the choices they have made?

Bonam · June 25, 2009

Free choice to enter into a contract and free choice to cancel.....what more do you want? Why do people whine about the choices they have made?

Cause they suck at making choices and want big brother to help them out every time they screw up.

GostHacked · June 25, 2009

Just need to shop around and get a package that works for you.

If you are not a huge talker, go with a pay as you go service. Most of these do not require a contract , but you usually need to buy the phone outright.

Decide what you need and what features in a phone are you looking for. Most smart phones need data plans on top of the voice plan, so if you don't need it, you are saving a huge amount of cash.

Recently I needed a new cell phone for personal/home use. I went with Rogers, save 15% overall on all 3 of my services. It is a 3 year contract, and I took the lowest package at about 30/month and the phone was free with the contract. My new one is a Samsung T465. The most basic cell phone out there.

Don't get pushed into something you really don't want. I find that not enough people stand their ground when it comes to buying certain items. They let the salesperson talk them into upgrading either the plan or the phone. Decide what you want and stick to it.

I do have a blackberry for work (work pays for it) and after 6 months of using it for my job as a Systems Admin, I find it quite handy to have my email travel around the warehouse with me. I am not tied to a desk all the time.

So decide what you want/need and go with the phone/plan that suits you. Some quick math can judge if it is worth it.

August1991 · June 25, 2009

Plenty of choices indeed.....no sympathy for making the wrong choice.

It is precisely the lack of choice that is the problem. In Canada, there are only three cell networks: Bell, Rogers and Telus. This is a clasical oligopoly and as a result, consumers pay a higher price. As Riverwind would argue, this is compunded by the fact that Canada has historically enjoyed good landline service (compared to other countries) and so there has been little political pressure from older, traditional voters to change things.

The Conservatives fortunately recently auctioned off new bandwidth and so Canada will soon have new cell networks. Videotron will be a major player in Quebec.

I have never regretted choosing a "pay as you go" phone plan. I have never trusted cell phone company contracts, and there are alternatives.
-k

I'm not a big cell phone user but I have bought several on behalf of friends and family. I invariably buy them two year old unlocked well-rated GSM phones through ebay and then find a good pay-as-you-go deal. I would only suggest a plan if the phone was necessary for business.

Nevertheless, pay-as-you-go is ridiculously expensive in Canada when compared to other countries.

I don't use the cellphone much... so I use petro mobility.

Petro Canada mobility uses the Rogers network.

Bonam · June 25, 2009

Which network it uses doesn't determine the pricing and the contract conditions. There are significantly more companies that offer cell phone service, even though they may not have their own network infrastructure. Of course, the recent auction of more bandwidth is also a good thing and will bring more competition. I do agree that the competition is quite limited in Canada in this field, but it does exist, and the simple fact is that there ARE ways to get cell phone service that don't include a year+ contract and a hefty cancellation fee. And, furthermore, the only way the market will improve is through more competition, not through more regulation, as the OP suggests.

bush_cheney2004 · June 25, 2009

It is precisely the lack of choice that is the problem. In Canada, there are only three cell networks: Bell, Rogers and Telus.

Very well...then choose another country.

....or buy a PayGo phone...there are plenty of choices after all....including no phone at all.

August1991 · June 25, 2009

Which network it uses doesn't determine the pricing and the contract conditions.

Yes it does. The network owner determines costs. In practice, the various retail suppliers are simply marketing strategies. Virgin Mobile bailed out of Canada because Bell made its model unfeasible.

New cellphone player Globalive will hire more than 1,000 employees as it works to become a major wireless player in Canada, aiming to take away customers not only from Rogers (TSX:RCI., Telus (TSX:T) and Bell (TSX:BCE) but also their discount brands.
Globalive Wireless Management Corp. isn't going to position itself only as a discount cellphone player where there's already competition, CEO Anthony Lacavera said Monday.

"Really, we're going to be split into two brands," Lacavera said from Toronto.

Globalive is looking to be Canada's fourth major wireless carrier, with a national presence except for the province of Quebec. Lacavera said that means fighting the three established cellphone players on two fronts.

One brand will give Globalive's Yak long-distance and Internet customers the opportunity to have cellphones, taking on Rogers' Fido, Telus' Koodoo and Bell's Solo discount brands.

The other higher-end brand will take on Rogers, Bell and Telus with mobile phones, including smartphones, with more features and fixed price plans with no contracts or limited contracts, he said. Its name and launch are still being worked out.

CP, March 2009 Edited June 25, 2009 by August1991