what's the difference between tab and dsrf?

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from my understanding dsrf is calculated from the economic inducement.

so basically it's the ei - (ei * (#months u've stayed / #months left in the contract))

but with this tab, say i have -500 on tab. all i have to do is to pay $500 if i decide to cancel the contract right?

so basically i'm just buying a phone from koodo if i leave my contract?
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Posted 5 years ago

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Chad Burr, Mobile Master

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You're paying back the value of what remains of your subsidy. If you had stayed a customer for 24months your potential profit value would've been higher but since you're leaving Koodo wants to recover the bottom line profit they figure they'd want from you by having you pay off the negative portion of your tab.

So yes you're basically buying your phone if you leave early. Btw phone prices went up considerably when this new tab system was introduced. No doubt to make sure they didn't loose a dime while complying with the new rules.
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ahh thx. cause i don't have a contract with koodo right now since i brought my own phone. planning to buy a new one soon.
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Dennis, Mobile Master

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A tab is a dsrf except instead of the economic inducement formula, it is simplified into a Tab. Every month your Tab is reduced each month by 15% of your plan (plus overages) and any applicable monthly Tab contribution (so for a Tab L that's $10).

Obviously, depending on the plan and overages the 15% may result in a higher or lower monthly reduction in the Tab. If you choose the most expensive plan and have tons of overages, your tab may be paid off before 24 months. If you choose the minimum acceptable plan for that Tab and never incur overages, you may still have a tab balance after 24 months. HOWEVER, Koodo will clear your tab after 24 months.

It's not very equation friendly lol
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thx for clearing that up. i think koodo should put that in equation form on the contract like rogers
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rikkster, Mobile Master

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The way I see it, DSRF is insurance for the wireless provider ensuring that the device subsidy or economic inducement is recovered.

According to one source; if you received a device subsidy when you signed up, and you want to cancel your service before the end of your fixed term, you will need to pay the Device Savings Recovery Fee (DSRF), which is based on your device subsidy.

For example, if a three-year contract were entered into in May 2013, before the Wireless Code Decision was implemented (December 2, 2013) and which would normally run until May 2016, the contract could be terminated by a customer on June 2, 2015, without incurring a cancellation penalty.

The wireless providers see this as a double-whammy. One, the customer gets out of a fixed-term contract without having to pay a cancellation fee. Two, the wireless provider is unable to recover 11 months of device subsidy.

With a shorter time frame to recoup device subsidy and taking into consideration the fixed term dilemma above, company's had to devise a method to recover lost subsidy. Enter the DSRF. As others have mentioned, the DSRF is essentially built-in to the Tab, there are no fees or penalties for leaving Koodo.
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OP, I think your formula is wrong:
It should be:
dsrf = ei - ei * ( # months you've stayed on contract / total # months of contract )

or written another way:
dsrf = ei * ( # months left in contract / total # months of contract )

From a consumer perspective, the formula given by OP is much better because the carrier would actually pay you after 1 year on a 2 year contract to break it :)

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