Make it easier to switch from one company (Bell or Rogers) to Koodo (Contract buy out)

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  • Idea
  • Updated 5 years ago
  • Not Planned
I have been listening to friends complain about how crappy their phone company is, so I suggest switching to Koodo. Then they say, gee I'd love to be with another company, but I'm under a contract. For them to get out of a contact it can cost them up to $500. One person I know, they only have 5 months left of their contract, but have to pay $350 to terminate it. Soooo therefore, if koodo offered contract buy outs (maybe not ALL the time, but maybe 2-4 times a year?) to make it easier to switch, they might gain more customers.
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Amber Delisle

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Posted 5 years ago

  • 2
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Sophia, Mobile Master

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You might find this conversation enlightening, Amber :)

http://community.koodomobile.com/kood...

In summary, it's not very likely to happen... but you're certainly not the only one with the request!
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MatB

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Hi ! Amber
I remember Koodo had something like that back last September called (WIND port-in credit) for customers that left Koodo for WIND and are willing to come back to Koodo where they can get $200 credit and $20/month for 10 months that will be applied automatically a few weeks after activation. I don't know if Koodo will do do it in regard to other providers or it'll be seen as unfaire competition??
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Sherlock Holmes

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It would cost Koodo way too much money to offer contract buyouts. They are a discount provider, this wouldn't be a good idea, for any company really. If you want to leave, then you should pay your own way.
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Jonathan I, Mobile Master

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Nobody has "contracts" in the traditional sense anymore... now it's a device balance/economic inducement/FlexTAB/whatever you want to call it where the unpaid portion of your phone is paid off in equal amounts over your term (which makes more sense). Telus has been doing it for nearly 3 years now, Rogers copied it last year around June 2012 (retroactively applied to accounts activated after January 22nd) and Bell finally caught up in February of this year.

I digress: this rarely ever happens... I think Rogers and Telus were offering $100 port-in credits for the respective carrier a few weeks last year but buying out an entire contract is pushing it.

It would be a nice incentive, especially if you're doing multiple lines, but some phones already come with some kind of gift cards on new activations (these offers come and go all the time) so that would be the incentive to switch too.
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Ahmad

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And what is the "traditional sense"? A contract is a contract. Anytime you sign up with a carrier, you sign a contract.
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Jonathan I, Mobile Master

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Well in that case Koodo has contracts too, if you want to get wordy... that's why I put it in quotes. I still know it's a legal document. :P
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MatB

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I'm not sure if CRTC will let this kind of contract buy out goes on without all wireless providers approval!
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Ahmad

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What does the CRTC have to do with this?
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MatB

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It regulates Wireless Technology Business
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Ahmad

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Koodo and for that matter, any company, will NEVER "buy" out contracts. The max you'd ever see is something like a $100 credit that's split into 10 equal credits of $10 on each bill. This is just not a good idea, in my opinion. There are so many obvious reasons, one being that, what is stopping the customer from leaving Koodo when Koodo "buys out" their contract? And what happens when people abuse the system and keep abusing it to basically get a free phone.
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Don

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Actually Ahmad, Rogers and Bell buy out contracts all the time from their former customers. My family and I have been harrassed by these two companies to come back with incentives (0$ new phones and credits towards the contract cancellation), but then they get you back with all their bills mistakes and over charges.

I suspect that the people that are asking for contract buy outs are customers of these two companies that did go back to them and now want a buy out to leave again for obvious reasons.
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Erwin

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Like Sofia said there has already been a topic like this. This idea is horrible it should be deleted right away when it is posted.
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Ivan, Mobile Master

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I've always been in favour of buying out contracts. I'd liken it to trading in a financed vehicle where the dealership that sells you a car pays out the lien on the car you're trading in.

Now, it's a bit more complex when mobile contracts are in play. If Koodo's to do this, they'd have to have a few clauses to protect them in case you leave prematurely.

First, you have to be cool with not getting a new phone from Koodo. You'd have to unlock your current device (if compatible with Koodo) or buy whatever phone you want yourself. The money that Koodo would have put toward a new phone can now be used to pay off your old contract. You would then be responsible for this sum as if though you got a phone from Koodo - if you leave early, you get the bill for the remaining balance.

However, as Koodo only offers a $150 subsidy I don't see a reason to offer this. Yes, $150 may soften the blow when switching but I don't see it being as enticing as $300-500 tabs. Koodo would need to increase the tab amount first.

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