Pricing Clarity

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  • Updated 5 years ago
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I wish mobile service providers would completely separate the cost of the service and the cost of the device. This would make it much easier for the consumer to compare and decide when in the market for devices and/or services. It feels like right now the waters are muddied so to speak so as to try to mislead the consumer, which no doubt leads to much confusion and many complaints that customer service reps have to deal with.

Providers should set their plan pricings without any device subsidy (tab contribution) built in and then if a consumer wishes to purchase a device through the provider (unlocked of course, since one way or another they will be paying for the device in full) they can choose to either pay for it in full upfront, or amortize an amount of their choosing over a time period of their choosing, the cost of which would be added separately to their monthly bill (along with some interest perhaps). I think this would be a more clear, upfront and honest way for providers to do business.

Just a thought.
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Jay

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Posted 5 years ago

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Zaphod Beeblebrox

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The plans and phone pricing are completely separate. Is there anything specific to Koodo that is unclear how they do business?
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Jay

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While I will concede that Koodo's pricing structure separates them to a greater degree than most other providers, they still are not completely separate. There is a 10% (and now 15% for new activations/upgrades) subsidy recovery built into all of the plans' prices, hence the availability of the 10% BYOD discount (which I commend Koodo for). However, the new tab system is intertwining the pricing even more. The devices Koodo offers have gone up in price, but in return the tab contribution from within the plan price will be 15%. This creates the perception of a disparity between those who will only be getting 10% and those who will be getting the 15%, even though it is somewhat justified by the higher device prices. I think that this perception will cause headaches for Koodo that could be avoided if they were to completely separate the service from the device.

Of course all providers would have to move to such a structure for consumers to truly have clarity, which is why this is something I wish the CRTC had mandated.
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MarioB

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Koodo could just do away with the tab system all together, requiring customers pay full price for the phones. Things would certainly be a lot simpler.
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Rocky Balboa

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good point but some people for instance don't have $700 to dish out for a samsung S4 or iphone 5
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MarioB

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Then that would just be like any other electronic. If you can't afford it, then you don't get it.
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EDITthis

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Everything just went up in price (PLANS AND PHONES), once price goes up they never come back down!

I'm a believer of if you want something expensive, save your pennies so you can afford it. (save to buy high-end phone)

I don't like the fact that my monthly bill will now raise in price because people want a higher end phone. I may have to rethink my decision and wait on the others see what they do regarding the new crtc rules.
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Dennis, Mobile Master

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I agree with you Jay. I have seen other post about this too. They used a US provider as an example who does this. I cant remember which provider it was though.

+1

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