Hi there,

So the rate plans you’re offered and monthly tab cost depend on the Tab option you choose. Tab Basic plans are cheaper but usually don’t include data. Tab Plus often allows $0 down, while Tab Mid typically requires an upfront payment—though currently, it's priced the same as Plus for the Pixel, making it a good deal. Now not everyone is offered the same tab options as it also depends on your credit, so some people may only be offered basic, mid etc.

Koodo offsets the device cost with a “tab bonus” which is a credit applied over 24 months to reduce the phone’s price which is why it is so cheap. So you pay only $25.68 over the 2 years and if you keep it that long, koodo pays the rest. However, if you break the 2yr commitment by leaving or upgrading early, you have to pay both your portion and the remaining bonus back. 

I hope this clears things up! if not feel free to ask some more questions or check out the link for more info 

https://www.koodomobile.com/en/help/everything-you-need-to-know-about-tab

Hmm… I see. Thanks

But I can’t understand how it’s financially working for Koodo.

For the first 2 years, it’s gonna earn them 145.68$.
1.07$/month for 24 months (25.68$) + The difference in plan cost (Tab Mid 54$ - Our current plan at 49$) for 24 months (120$).

There is still a huge gap between the device MSRP and 145.68$.

After our 2 years, can we downgrade back to the 49$ plan that suits us perfectly at the moment ? Without penalties ?

So commonly you see this kind of reduced price on devices that are end of life and will soon no longer be manufactured which is true for the 8a when google announce their next device in the spring. So in order to 1. keep existing clientele and 2. get rid of EOL stock they slash the price of the device.

If you think about it from another stand point, it keeps you as a customer for another 2 years. But if you leave say after a year in, you have to pay koodo the remaining bonus and say you don’t choose this device at all and leave, they lose your business altogether when they could have sold you different products down the line. Sometimes companies have to take the hit in order to make a future profit or to keep their clients happy.

Once the tab is up, the $1.07 goes away and you only pay for the plan at which point you can switch to a plan that is available at that time. So your $49 option may not be available in 2 years time it would be what ever is available then. 

Thank you Oliver !

No problem If you think of anything else feel free to drop a question in the community again.