No More 3 Year Cellular Contracts

[xxadept]

I didn't see this posted yet but effective December 2, 2013:

New CRTC wireless rules demand 2-year contract cap, unlocked phones - Canada - CBC News

The CRTC has unveiled a new code of conduct for cellphone companies that demands a two-year cap on contract lengths and unlocked cellphones within three months of buying them.

Those are two of the biggest takeaways from the new rules that the broadcast regulator unveiled on Monday, and will come into effect starting in December.

Read the CRTC's wireless code of conduct

The Canadian Radio-television and Telecommunications Commission has been working on the code for a number of months after a lengthy consultation process with consumers and the industry.

The new code will allow consumers to:

-Terminate their wireless contracts after two years without cancellation fees, even if they have signed on for a longer term.
-Cap extra data charges at $50 a month and international data roaming charges at $100 a month to prevent bill shock.
-Have their cellphones unlocked after 90 days, or immediately if they paid for the device in full.
-Return their cellphones, within 15 days and specific usage limits, if they are unhappy with their service.
-Accept or decline changes to the key terms of a fixed-term contract (i.e., two-year), and receive a contract that is easy to read and understand.

In the lead-up to public hearings held earlier this year, the CRTC said it heard a lot of angry comments about three-year contracts offered by wireless carriers when it was putting together a draft version of the national code for wireless services.
Text, chat, click A by-the-numbers look at how we use smartphones

"The wireless code will contribute to a more dynamic marketplace by making it possible for Canadians to discuss their needs with service providers at least every two years," CRTC chair Jean-Pierre Blais said.

The CRTC has a backer in the federal Competition Bureau, which has said it supports measures to limit contract length.

Cellphone contracts of no more than two years are the standard in the U.S, Europe and elsewhere in the developing world. Many say it's no coincidence that cellular users in those places own more phones, use them more and replace them more frequently.

"What we were concerned about was ensuring that there was a dynamic marketplace, that is, that people didn't feel entrapped in their contracts when they want to maybe use the offer of a new entrant or a competitor across the street," Blais said.

"So it really is about freeing up Canadians to choose either stay with their current carrier, under renegotiated terms, or go to a competitor."

[SB7]

Cell phone bills are ridiculous here, even with a negotiated plan with data you will be lucky to be paying under 50$/month
Posted via RS Mobile

[Razor Ramon HG]

Waiting for the day we have unlimited data plans like they do in Asia.

[Gridlock]

Here's an idea...how about letting someone like a T-Mobile enter the Canadian market...just you know, dip the tip in and wiggle it around you know...major cities(all 3 of them) and see the rates fall so fast, you can't even keep up.

[Spoon]

^
You'll also see a lot of Canadian jobs go south as well then. Doesn't affect me at all, but at times, I understand the reasoning for keeping certain things Canadian owned.

[Renxo]

Finally... now my phone won't feel so obsolete by the time I need to replace it!!

So that means the initial price will cost more to purchase the phone on a plan?

[murd0c]

Originally Posted by Spoon

^
You'll also see a lot of Canadian jobs go south as well then. Doesn't affect me at all, but at times, I understand the reasoning for keeping certain things Canadian owned.

rather then the jobs going to India?

[jeedee]

Nice.

Phones usually start "deteriorating" / become "irrelevant" by 2 years

Good to know I can get a new phone by then

[xxadept]

I agree with you striker_boi7. I was getting raped up the butt with Rogers paying $80 for a 1GB voice/data plan.
- Spoke to retentions April 2013. Best they could offer was a $60 plan (2GB and unlimited Canada-wide minutes)
- Decided to switch to Virgin. Now paying $45/month for 1GB, 400 Canada-Wide, Unlimited Evening/Weekends (5PM), Unlimited Text, etc.

Originally Posted by striker_boi7

Cell phone bills are ridiculous here, even with a negotiated plan with data you will be lucky to be paying under 50$/month
Posted via RS Mobile

It's safe to say that you will pay more for the upfront hardware cost if the monthly fees stay the same.
Alternatively, the monthly rates will increase if the phone prices stay the same as they are today ($0 to $199 signed with contract).

Originally Posted by Renxo

Finally... now my phone won't feel so obsolete by the time I need to replace it!!

So that means the initial price will cost more to purchase the phone on a plan?

[Renxo]

I usually end up paying $199 with a 3 yr contract for a newer phone... now it's going to be like $350 and 2 yr contract? pretty pricey up front if thats how it's going to go..

[gdoh]

Originally Posted by Renxo

I usually end up paying $199 with a 3 yr contract for a newer phone... now it's going to be like $350 and 2 yr contract? pretty pricey up front if thats how it's going to go..

-Terminate their wireless contracts after two years without cancellation fees, even if they have signed on for a longer term.

couldn't you sign a 3 year contract to lower the price then cancel after 2 years?

[Gumby]

If a cellphone company gives you the choice of 1, 2 or 3 year contracts, and you choose the 3 year contract, I don't see why you should be complaining.

[Razor Ramon HG]

Originally Posted by gdoh

couldn't you sign a 3 year contract to lower the price then cancel after 2 years?

Your phone is subsidized over the course of the contract.

If you choose a shorter contract, you pay a higher price upfront.

If you sign a three-year contract and cancel after two, you will be paying the remaining cost of the phone.

[xxadept]

Originally Posted by gdoh

couldn't you sign a 3 year contract to lower the price then cancel after 2 years?

Most people would think this way to circumvent the higher price. Unfortunately the new rules only apply to new contracts for cellphones and other mobile devices starting on Dec. 2, 2013 according to The Globe and Mail. If reading this correctly, existing contracts signed before this date will not be applicable.

I also can't see the Canadian carriers offering 3 year contracts after the new rules come into effect.

[Razor Ramon HG]

Originally Posted by xxadept

Most people would think this way to circumvent the higher price. Unfortunately the new rules only apply to new contracts for cellphones and other mobile devices starting on Dec. 2, 2013 according to The Globe and Mail. If reading this correctly, existing contracts signed before this date will not be applicable.

I also can't see the Canadian carriers offering 3 year contracts after the new rules come into effect.

Three year contracts will still stick around. I'm sure they will separate the early termination fees from the device fees.

[sonick]

Originally Posted by striker_boi7

Cell phone bills are ridiculous here, even with a negotiated plan with data you will be lucky to be paying under 50$/month
Posted via RS Mobile

Originally Posted by Gridlock

Here's an idea...how about letting someone like a T-Mobile enter the Canadian market...just you know, dip the tip in and wiggle it around you know...major cities(all 3 of them) and see the rates fall so fast, you can't even keep up.

Ridiculous compared to where? People in Canada always think US has these super cheap plans when it really isn't the case. In the US T-Mobile's plans start at $50/mo itself with 500MB data. $60 for 2GB data. Similarly, AT&T starts at $60 for 300 MB.

As for Asia, it would be financially improbable to have those kinds of rates here considering the population density for the land area Asian countries have to cover vs Canada.

[Hondaracer]

I've got no problem with 3 year contracts and really don't get people who are upset about signing into them or hesitant in doing so

With a Rogers Retentions plan I can do a hardware upgrade in just over 2 years free of charge so I paid $149 plus fees for a $900 phone

After my free one year warrantee if I was to break that phone I upgraded to, I can now buy that phone outright for under $300

So by paying the low initial cost of a brand new phone under a 3 year term I can now over those three years theoretically buy TWO of the same phones within the term for under the total cost of the full price on release
Posted via RS Mobile

[tmc22]

Don't really think this will help that much, because with 2 year contracts they're gonna have to make back the extra year somehow, so they'd probably charge us more on the phone initially or maybe raise the prices on contracts. I signed my contract just last year (Sep 2012) with 6 GB data and it costs me $60 (still quite pricey IMO), and now I see people pay $60 with what it seems like a lower cap on data.

[Tapioca]

Originally Posted by sonick

Ridiculous compared to where? People in Canada always think US has these super cheap plans when it really isn't the case. In the US T-Mobile's plans start at $50/mo itself with 500MB data. $60 for 2GB data. Similarly, AT&T starts at $60 for 300 MB.

As for Asia, it would be financially improbable to have those kinds of rates here considering the population density for the land area Asian countries have to cover vs Canada.

More competition is not a panacea. If that were the case, then how can you explain what happened to Mobilicity? In fact, their business model ($25 unlimited plans?!) is the reason why consumers can't expect rock-bottom prices for wireless service in Canada. Even if T-Mobile were to come to Canada, who's to say that they would offer dramatically lower prices just because? Sure, they may offer a promotional blitz that would benefit a few thousand subscribers, but eventually, they would charge prices that the market bears.

Comparing us to Asia and Europe is like comparing apples and oranges.
Posted via RS Mobile

[NLY]

I would actually prefer three year contracts to two years contracts because if you can negotiate a good retentions plan, your credits are good for 36 months versus 24 months - in which you would have to call back and negotiate again.

[NNT]

Not too much change to the customer, 3 years contract switch to 2 years contract, expect a higher monthly bill and more money to pay up front for the device.
Data charge cap means high usage people would stop getting data service when their $50 is used up.
but the phone unlock after 3 months is nice

[van_city23]

Upfront cost of the phone will go up or the monthly price will go up. The phone has to be paid in full by end of 24 months regardless of the term length from what I read in the new code, correct me if i'm wrong. This way, when you cancel after 2 years, it won't cost you anything because the phone was already paid off in full. I think it pretty much leaves us with what it is now but no long will see 3 year contract prices for phones but just the 2 year contract price for the phone, no contract price, and the tab.

[MikeyStyle]

What the CRTC's wireless code means for you

[ziggyx]

Does this mean I can cancel my 3 year contract in December of this year? By the time December 2013 rolls around for me, I would be 2 years and a couple of months into my contract. Or does this only apply to people who start their contract after December 2nd 2013?

[wreck]

I don't get current carriers..

I just called Telus because my mom (who doesn't need internet or any form of data on her phone) wanted to upgrade to an ip4s (simply for the ability to take pictures). I said she would sign up for the 3 year contract, pay the $80 for the phone, but she wanted to remain on her cheap 25 dollar a month plan. They said 'no, the ip4s requires a min $50 plan. period'.

I don't get why they would turn down another 3 years of $25 a month, plus the $80 for the phone, especially when she has been a client for 16 years. why not make an exception and reward loyalty?

Not sure what to do now, she really wants an ip4s.