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New CRTC Wireless Code of Conduct


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See the full article here: http://www.crtc.gc.ca/eng/com100/2013/r130603.htm#.UayawEDCaSq Here's the standout points: (customers may) terminate their wireless contracts after two years without cancellation fees, even if they have signed on for a longer term (carriers must) cap extra data charges at $50/month and international data roaming charges at $100/month to prevent bill shock (customers may) have their cellphones unlocked after 90 days, or immediately if they paid for the device in full (customers may) return their cellphones, within 15 days and specific usage limits, if they are unhappy with their service (customers may) accept or decline changes to the key terms of a fixed-term contract (i.e., 2-year) The code will apply to new contracts for cellphones and other personal mobile devices starting on December 2, 2013.

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Good news for customers, thank you mattjs for this info
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MatB wrote:

Good news for customers, thank you mattjs for this info

Agreed, it's really good news. I'm especially happy with the bill & roaming cap... remember those programs "the worst cell phone bill ever" etc? $20,000 for allowing their child to play with the iPhone on the beach for a few hours... that should [i]never have been allowed! (Not the child playing with the cell phone, but the $20,000 bill haha)
Userlevel 6
Sucks that its not implemented sooner. But great job CRTC for making 2 year contracts.
While this is good, doesn't this reduce the incentive for going with a smaller carrier like Koodo? Using the GS4 as an example, with Koodo it takes 2 years to pay off the tab with a 60 dollar plan. This would make the plan cheaper than the big three and make you able to upgrade without penalty after two years, so even though you're paying $475 for the phone, it is more than made up for due to these factors. But now that there is no penalty for upgrading after two years with the big three, you end up paying 200 for a GS4 with them and 475 with Koodo. So now the only way to make up that difference is with the savings on your monthly plan. Don't get me wrong, its still more cost effective to go with Koodo, but that margin has been narrowed substantially. Wonder if anything will change between now and December? Thank you for the information though - regardless, this is a very good chance that, quite frankly, is long overdue in my opinion.
Marshall Achtymichuk wrote:

While this is good, doesn't this reduce the incentive for going with a smaller carrier like Koodo...

Marshall, I agree it will hurt their margin, but I wonder how US companies can do 2 year contracts on brand name phones? (Even the GS4)
Userlevel 3
Marshall Achtymichuk wrote:

While this is good, doesn't this reduce the incentive for going with a smaller carrier like Koodo...

Maybe i'm looking at it wrong but... Phone subsidizes and contracts are not one an the same. So just cause they say you can cancel your contract after 2 year without penalty doesn't mean you don't have to pay the remainder of the subsidized cost that would be left for the phone.
Userlevel 5
Marshall Achtymichuk wrote:

While this is good, doesn't this reduce the incentive for going with a smaller carrier like Koodo...

Exactly Boolanger, I agree with you here. It doesn't mean a two year term at all, it just means if you want to leave your carrier they can't charge you a cancellation fee after two years. Nothing said about subsidy, nothing said about early upgrades either.
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Marshall Achtymichuk wrote:

While this is good, doesn't this reduce the incentive for going with a smaller carrier like Koodo...

Yea there are a lot of loopholes in the Code of Conduct. Not sure how the providers will tackle them. If they utilize the loopholes and go against the heart of what this code is about they risk alienating customers even more and causing a larger uproar and maybe the CRTC would implement something harsher than they would want. Or if they follow the intent of the code they can raise prices on plans a little bit more, increase the upfront prices of subsidized phones a little bit more and place the blame on the CRTC
Userlevel 1
Marshall Achtymichuk wrote:

While this is good, doesn't this reduce the incentive for going with a smaller carrier like Koodo...

Little bit of something is better than nothing, that's how big corporations do alienating their customers! good thought!
Userlevel 6
I'm not sure how this is gonna be good for customer. So what if peole can now terminate their contract after 2 years? THe cell phone companies will just push up the price of phones to reflect the shortened period. Example, the Q10 is $199 on a 3 year contract from telus. The crtc says you can't have 3 year contract anymore. Ok. Then the Q10 will now be $350 on a 2 year contract. An extra $150 up front right out of customer pocket. The unlocking rule I like. The 15 day return policy is the same as today. THe roaming charges, well, people already have the ability to track their charges today, if yo can't stop yourself and you wait for someone else to force, then be it.
That's the thing - given the prices now, the margin has been narrowed. But I can't see the big three not either increasing the price of plans or phones to reflect the shortened period. If they can pull off the same contract term and price plans that are found in the US though, then the smaller companies like Koodo, Fido, and Virgin need to act because that will hugely increase incentive to switch.
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Marshall Achtymichuk wrote:

That's the thing - given the prices now, the margin has been narrowed. But I can't see the big th...

Yeap. Take the Sammsung S4. Verizon sells it for $199 on a 2 year contract. Canadians cell companies sell it for the same price on a 3 year contract.
Userlevel 2
Marshall Achtymichuk wrote:

That's the thing - given the prices now, the margin has been narrowed. But I can't see the big th...

Can we just note that Fido/Koodo/Virgin aren't 'small' independent providers, they're the 'value' brands of Rogers/Telus/Bell. These 'value' brands exist solely as a hedge for their parent companies' to protect profits, none of them care about creating a big 'incentive' to switch to them, they're more protection oriented then anything else. If one lowers their price, all the others do as well. However, the parent companies are well aware of the oligopoly currently in place - and that if nobody bothers lowering their price, they all win. We won't see any notable wireless price/policy changes until their is a new national carrier that can provide direct competition. Regarding how these changes will effect subsidized devices, I really don't see it having much effect. I think the carriers will still sell devices on three year terms, but you'll be able to cancel the 'service' contract at anytime - which you can already do. If you cancel your service agreement early, you're still on the hook for any outstanding 'tab' balance owing, it's a completely separate agreement. Currently with Rogers, you can cancel anytime you want, the 'service' cancellation fee is $12.50. It doesn't matter if you have 30 months left on your contract, or 2 months, it's a standard flat rate. However, if you cancel two months in, you're still on the hook for whatever the remaining balance is on your 'tab', so nothing really changes. So yeah, I expect to see phones still listed @ 199 on a three year term, and just like today you can walk away at any time - simply pay what's remaining on your (conveniently) separate 'tab' agreement. This new code basically saves users the $12.50 cancellation fee if it's done at or after the 2 year mark.
Marshall Achtymichuk wrote:

That's the thing - given the prices now, the margin has been narrowed. But I can't see the big th...

While I agree with you MattJS on some points, Koodo is loosing out on the 2year tabs that Fido has however Virgin pricing has made it so new phone subsidies aren't as attractive compared to the main 3; or Fido.
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Marshall Achtymichuk wrote:

That's the thing - given the prices now, the margin has been narrowed. But I can't see the big th...

Matt, under the new rules the provider cannot charge anyone leaving them after the 2nd year. Alas Rogers can't charge the $12.50 per month post the 2 years even on a 3 year contract.
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Marshall Achtymichuk wrote:

That's the thing - given the prices now, the margin has been narrowed. But I can't see the big th...

It's not $12.50 per month currently, it's a flat rate of $12.50 regardless of how many months are remaining. So under the new rates you can cancel after the 2 year mark and save this fee, which is great but it's still pretty marginal. If you cancel though and still owe a balance on your 'tab' agreement, you're still on the hook as that agreement is separate from your 'service' agreement.
Marshall Achtymichuk wrote:

That's the thing - given the prices now, the margin has been narrowed. But I can't see the big th...

So basically we should all go out and take 2+ year plans that are cheap then cancel after 2 years? I don't see this being retroactive, but I think we need a lawyer to weight in
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Marshall Achtymichuk wrote:

That's the thing - given the prices now, the margin has been narrowed. But I can't see the big th...

This new code of conduct doesn't really change very much, the potential consumer savings is essentially the $12.50 early termination fee, if the termination happens at, or after, the 2 year mark. The code doesn't have anything in it that will really impact plan or device prices, carriers are free to continue the same practices currently in use. The real changes might happen at the 700mhz spectrum auction, if someone other then Bell/Telus/Rogers picks up a portion (which apparently the CRTC would like to see happen).
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I love the unlocking part. Does that mean unlocking is free? Or still $50. It's a little unclear
Just on the phone with KooDo asking for my free unlock of my Samsung Galaxy Ace phone as per the CRTC mandate and they refused wanted $50 for the service. I tried to have their retention department see that IT WAS IN THEIR INTEREST TO KEEP ME AS A CUSTOMER but alas they are not interested. So I will be shopping for another company that will meet my needs . Please refer this up the food chain as I will be posting on various web sites how wrong this is.
ron.white wrote:

Just on the phone with KooDo asking for my free unlock of my Samsung Galaxy Ace phone as per the ...

I understand Ron, in the same spot myself. PS: do they call you tater salad?
ron.white wrote:

Just on the phone with KooDo asking for my free unlock of my Samsung Galaxy Ace phone as per the ...

http://community.koodomobile.com/koodo/topics/crtc_code_of_conduct
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ron.white wrote:

Just on the phone with KooDo asking for my free unlock of my Samsung Galaxy Ace phone as per the ...

The code of conduct takes effect In December 2nd
ron.white wrote:

Just on the phone with KooDo asking for my free unlock of my Samsung Galaxy Ace phone as per the ...

yes but they could get a lot of good will and happy referrals by just getting ahead of this for a long time customer . I just do not see the logic in their stance. You know the age old adage a unhappy customer tells 10 friends ...
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ron.white wrote:

Just on the phone with KooDo asking for my free unlock of my Samsung Galaxy Ace phone as per the ...

Nobody wants an extortioner as a customer, Ron 🙂 You asked, you were refused, now you throw your toys out of the pram... you're entitled to do that of course but don't expect too much sympathy anywhere 😃

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