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Higher devices prices as a result of the new tab??


Userlevel 1
Why are the device prices suddenly higher now with the new tab system? The price of the S4 went up $100. The Q10 went up $150! The S3 went up $225!! What???? Not to mention the new plan prices are also terrible.

50 replies

Userlevel 6
This is why. http://www.cbc.ca/news/business/story/2013/06/03/business-crtc-wireless.html The government thought that by eliminating 3 year contract companie would continue to sell phones at the same price on 2 year contracts. I guess they were wrong. 🙂 Bell has just raised prices too. Rogers, Telus are likely next.
Userlevel 1
That is just an excuse. Most other countries have a cap of 2 years for a contract, have cheaper devices AND cheaper plans. Telecoms always find an excuse/loophole to make more money.
Userlevel 2
This isn't the governments fault. Nobody is forcing Koodo to raise contracts across the board, institute a tab system that carries a monthly fee, or raise device prices by as much as $225. The government instituted legislation that limits the contract term length to 2 years, which is problematic as the current subsidized device system is based on a 3 year model. Koodo could have addressed this change in a number of different ways, and should have addressed the subsidized device policy specifically, instead of unilaterally raising prices across the board. Why should BYOD customers get less value all of a sudden because subsidized device contract terms are 2 years instead of 3? Instead of addressing just the subsidized device policy (which is obviously what the governments' intentions were), Koodo (and other carriers) have used this legislature as a scapegoat for raising all prices, even pricing which this legislation wasn't designed to address. Which means even if you don't take a subsidized device, have never taken a subsidized device, or never want to take a subsidized device in the future, the cost of using a phone just got more expensive. I'm not sure what the government can really do at this point. It's pretty obvious that regardless of what legislature comes forward, carrier will try and circumnavigate it anyway they can in order to keep prices and revenue as high as absolutely possible. And when they all raise prices and service fees together (collusion anyone?), then they all win.
Userlevel 1
mattjs, agreed
Userlevel 6
Exactly my point. People have long forgotten how much these mini computers cost as they were always paying very little out of pocket because of subsidies. Government makes a stupid decsion, not because they give sheit about us but because they want the votes at the next election. Companies align with the legislation but have really no choice, if terms are reduced, prices have to go up. And us, BYOD folks, pay the price along the way because 99% of canadians don't want to pay the full price for phones. Yeah, it sucks to be us now.
Userlevel 6
I have never agreed more with a group of people before today, lol! Seriously guys, we share the same thoughts about all this. 100% agree!
Sure the prices changed at Bell and Rogers to come in line with a 2 year contact but KOODO DOESN"T HAVE CONTRACTS, YOU PAY WHAT YOU HAVE LEFT ON YOUR TAB. unless you went with a 3 year deal for an Iphone. so to say that it raised the cost of the phone because of the government reduced the Cell providers to 2 year contacts is in my opinion bull. For the first time I am not impressed with koodo and see this has price and customer gauging
IF they raised the price of CONTRACTED phone, that would make sense, a 2yr contract phone should cost more than a 3yr contract phone. But Koodo raised the OFF CONTRACT price as well, so even if you don't want to use the tab you would have to now pay hundreds more, that makes no sense.
Userlevel 2
Remember 3-5 years ago when Koodo was awesome? Cheaper devices then the competition, per second billing, really competitive plans that offered great value... I miss those days.
Userlevel 1
mattjs wrote:

Remember 3-5 years ago when Koodo was awesome? Cheaper devices then the competition, per second ...

I do remember those days. The cheap plan was $15/month and you could get a great phone for $100. The cheapest plan is now double that. Boooo Koodo. Bad move.
Userlevel 6
mattjs wrote:

Remember 3-5 years ago when Koodo was awesome? Cheaper devices then the competition, per second ...

Remember when gas was 39 cents a liter.:-) Nobody likes when prices go up, I get that. We all have a choice though. I cut cable a year ago and don't miss it a bit. And saving over $100 a month.
Userlevel 2
mattjs wrote:

Remember 3-5 years ago when Koodo was awesome? Cheaper devices then the competition, per second ...

lol Gas is a non-renewable natural resource, the price will always go up. Not really comparable...
Userlevel 1
mattjs wrote:

Remember 3-5 years ago when Koodo was awesome? Cheaper devices then the competition, per second ...

The difference is that gas is a commodity, cell phones are not. In fact, mobile services are not a commodity either. For a device price to be raised $225 overnight is price gouging. (sorry I only remember 46 cents a litre)
Userlevel 6
mattjs wrote:

Remember 3-5 years ago when Koodo was awesome? Cheaper devices then the competition, per second ...

You don't have to pay it Jordan. Nobody forces you to buy it. And it doesn't matter if it's gas or beer. It's beside the point. And I hope both of you will forgo any slary increases you may receive this year, so price won't go up of the service or product your company sells. That would be too greedy. 🙂
Userlevel 1
mattjs wrote:

Remember 3-5 years ago when Koodo was awesome? Cheaper devices then the competition, per second ...

Chris, no disrespect, but all I can say is that you are greatly confusing the economics behind these comparisons you are making.
Userlevel 6
mattjs wrote:

Remember 3-5 years ago when Koodo was awesome? Cheaper devices then the competition, per second ...

None taken. We live in a free market world, companies, I suppose, can and will do whatever the market can bear when it comes to pricing their services. I just don't understand all the whining, having a cell phone, in my mind, is a luxury not a right. Everyone can easily vote with their wallet, if they only choose to do so.
Userlevel 3
mattjs wrote:

Remember 3-5 years ago when Koodo was awesome? Cheaper devices then the competition, per second ...

I could vote with my wallet but where would I go? That's the problem I think the government was trying to address but it doesn't seem to have improved, rather mobile companies are just shifting the costs around.
Userlevel 6
mattjs wrote:

Remember 3-5 years ago when Koodo was awesome? Cheaper devices then the competition, per second ...

Well, there IS a difference. Even if someone buys no gasoline, the food he/she buys at the grocery store have had their prices "adjusted" because of overly priced gas. Same for many other goods. So even if one chooses [i]not to buy certain items, he/she still feels the sting. This doesn't apply to cell signal...
Userlevel 2
mattjs wrote:

Remember 3-5 years ago when Koodo was awesome? Cheaper devices then the competition, per second ...

The wireless industry in Canada doesn't operate under the framework or structure of a 'free market', that's what the problem is. They're operate as an oligopoly in a controlled/regulated marketplace. This is essentially the opposite of a 'free market'.
Userlevel 6
mattjs wrote:

Remember 3-5 years ago when Koodo was awesome? Cheaper devices then the competition, per second ...

this explains very well why they can get away with moves like this.... sadly 😞
Userlevel 2
mattjs wrote:

Remember 3-5 years ago when Koodo was awesome? Cheaper devices then the competition, per second ...

If they operated under the structure of a 'free market', the prices of goods, or services, would be exclusively determined by supply and demand; and as long as their is sustainable profit margin, a hierarchical structure of suppliers would be available to fulfill demand as required. Unfortunately, regulated and controlled marketplaces, especially when the good (or service in this case) is a utility, are susceptible to things such as monopolies, oligopolies, abnormal inflation, collusion, price fixing, subsidy & tax abuse, etc., etc., etc...
Userlevel 1
mattjs wrote:

Remember 3-5 years ago when Koodo was awesome? Cheaper devices then the competition, per second ...

I would like to see it become illegal for mobile service providers to sell devices and therefore subsidize devices. Everyone would buy their device from the respective manufacturer or local electronics store, just like they do with any other electronic device. That would put the power back in our hands to choose a provider who we believe offers the best service. Of course, sadly even this would only work in a perfect world. Mobile service providers have no business selling devices anyway. They provide a service to mobile phone owners. Remember when you had to "rent" a home phone from Bell? You couldn't go to Sears and buy a phone because it wouldn't work on the Bell network. You had to lease it for a monthly fee. The day will come when mobile phones will also be liberated. I am just surprised that they got away with this again.
Userlevel 6
mattjs wrote:

Remember 3-5 years ago when Koodo was awesome? Cheaper devices then the competition, per second ...

If there are no subsiidies people will upset the phones cost too much. 🙂 Just look what is happening now. Prices go up and people are upset. Certainly manufacturers won't subsideze their product and I beleive the only reason phone companies do because people wouldn't buy them otherwise.
Userlevel 1
mattjs wrote:

Remember 3-5 years ago when Koodo was awesome? Cheaper devices then the competition, per second ...

You buy a laptop, don't you? You buy a TV. You buy a car. None of those are subsidized and often much more expensive than a mobile device yet everyone has one.
Userlevel 6
mattjs wrote:

Remember 3-5 years ago when Koodo was awesome? Cheaper devices then the competition, per second ...

They were never subsidized so people didn't get hooked on the cheap "drug". We vehemently agree Jordan.

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