Koodo Community

New Tab payout policy.

  • 31 August 2019
  • 32 replies
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32 replies

I'm still getting monthly security updates for my S8. I automatically got the update to the newest OS.
That's great and kudos to Samsung for issuing monthly security updates. However, the newest OS for the S8 is Android P - it possibly/probably won't get the upgrade to Android 10, and that's part of my point. I'm not saying that the older units don't still have value - the Pixel 3 is a great deal and it'll get support for at least 2-3 years (I still rock an Essential PH-1 that I just updated to Android 10) - but the proration policy shift makes it less of a deal to sign up for one of those phones.

Probably I'm ranting a bit (a lot), but with all the changes that are happening right now - the Tab payout policy change, Koodo trying to shift customers to higher rate plans when upgrading, and an almost complete lack of renewal bonuses - the incentive to remain brand-loyal is lowered. If Bell (ugh) suddenly offers a 2 yr, $0 down offer on an S10 with a comparable rate plan, and I don't have to pay a Tab, why shouldn't I port my number? What's the most reasonable value for me as a customer?
Userlevel 5
You should have gotten more cheap phones when you had the chance.

I'm still getting monthly security updates for my S8. I automatically got the update to the newest OS.That's great and kudos to Samsung for issuing monthly security updates. However, the newest OS for the S8 is Android P - it possibly/probably won't get the upgrade to Android 10, and that's part of my point. I'm not saying that the older units don't still have value - the Pixel 3 is a great deal and it'll get support for at least 2-3 years (I still rock an Essential PH-1 that I just updated to Android 10) - but the proration policy shift makes it less of a deal to sign up for one of those phones.

Probably I'm ranting a bit (a lot), but with all the changes that are happening right now - the Tab payout policy change, Koodo trying to shift customers to higher rate plans when upgrading, and an almost complete lack of renewal bonuses - the incentive to remain brand-loyal is lowered. If Bell (ugh) suddenly offers a 2 yr, $0 down offer on an S10 with a comparable rate plan, and I don't have to pay a Tab, why shouldn't I port my number? What's the most reasonable value for me as a customer?


Also rocking the PH-1.

Even with the deals they have going on with some of the older phones (the s9 for example).

Koodo still has it for $1000+ in retail price. Everyone else has it for around $790, Koodo just increases the activation credit to make it seem like a better deal.

And im not going to upgrade for $30+ more to have a similar plan, just to be locked in for two years.

I feel like its going to be an interesting few months leading up to black friday/christmas and see what happens in terms of plans and competition
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Again, I can forgive that if the unit is reasonably priced... but the retail value for all of these models, aside from the LG ($520) list at between $1050-$1125. So, if I want to upgrade next year, the prorated balance will still be around $650-$800?? For a 2018 phone? Does Koodo not see the problem with this? As other commentators have noted, what if I drop my phone? What if it dies after the warranty runs out? What if my dream phone comes out next year at a good price?


@Raj Maharaj I don't agree with your thinking. Let's compare to other purchases. How about a car? Let's say I buy a brand new 2018 car for $40,000, and I finance it over 5 years--and let's be generous and say I got 0% financing, much like buying a phone on a tab. Let's say after 6 months I crash the phone into a wall (similar to dropping the phone) or drive it into a lake (like dropping your phone into a lake) and it's not usable any more. The balance on my loan (car tab) would be 4 years and 6 months worth of payments, or about $36,000. "For a 2018 car? Does the car dealership not see the problem with this?". Well, uhm, no. You would still owe the $36,000 for the loan even if you accidentally destroy the car. You agreed to pay for it over the course of x months with a lump sum of the remainder needed if you want to buy it out.

Obviously, if you're buying a new car, they're going to force you to insure it (and I think auto insurance is required in all or most provinces anyway), so you're going to be covered. But actually if you don't purchase a no-depreciation policy you could find yourself "upside down" on the loan in this destroyed-after-6-months situation as well, as the insurance payout might only be, say, $26,000 and you owe 36,000.

Okay so I'm rambling on here but my point is: why should Koodo (or anyone else) get stuck with the bill if you wreck your phone? If you're prone to losing/breaking them, then buy insurance for some peace of mind (though after premiums and deductible, it may or may not be a great financial decision).

Regarding the change in policy: Despite it being disappointing, I actually don't see it as unfair. The activation credit is meant as a gift to you for your being a customer for a certain length of time. I think they were (nicely) being over-generous before. The really good news is that this now levels the playing field. By this, I mean that you shouldn't feel you "have to" buy your phone through your provider due to the deal. You are open to shopping around and picking up a phone direct from the manufacturer, or from Amazon/AliExpress, etc., without feeling you're being ripped off by missing out on credits.

Again, I can forgive that if the unit is reasonably priced... but the retail value for all of these models, aside from the LG ($520) list at between $1050-$1125. So, if I want to upgrade next year, the prorated balance will still be around $650-$800?? For a 2018 phone? Does Koodo not see the problem with this? As other commentators have noted, what if I drop my phone? What if it dies after the warranty runs out? What if my dream phone comes out next year at a good price?
@Raj Maharaj I don't agree with your thinking. Let's compare to other purchases. How about a car? Let's say I buy a brand new 2018 car for $40,000, and I finance it over 5 years--and let's be generous and say I got 0% financing, much like buying a phone on a tab. Let's say after 6 months I crash the phone into a wall (similar to dropping the phone) or drive it into a lake (like dropping your phone into a lake) and it's not usable any more. The balance on my loan (car tab) would be 4 years and 6 months worth of payments, or about $36,000. "For a 2018 car? Does the car dealership not see the problem with this?". Well, uhm, no. You would still owe the $36,000 for the loan even if you accidentally destroy the car. You agreed to pay for it over the course of x months with a lump sum of the remainder needed if you want to buy it out.

Obviously, if you're buying a new car, they're going to force you to insure it (and I think auto insurance is required in all or most provinces anyway), so you're going to be covered. But actually if you don't purchase a no-depreciation policy you could find yourself "upside down" on the loan in this destroyed-after-6-months situation as well, as the insurance payout might only be, say, $26,000 and you owe 36,000.

Okay so I'm rambling on here but my point is: why should Koodo (or anyone else) get stuck with the bill if you wreck your phone? If you're prone to losing/breaking them, then buy insurance for some peace of mind (though after premiums and deductible, it may or may not be a great financial decision).

Regarding the change in policy: Despite it being disappointing, I actually don't see it as unfair. The activation credit is meant as a gift to you for your being a customer for a certain length of time. I think they were (nicely) being over-generous before. The really good news is that this now levels the playing field. By this, I mean that you shouldn't feel you "have to" buy your phone through your provider due to the deal. You are open to shopping around and picking up a phone direct from the manufacturer, or from Amazon/AliExpress, etc., without feeling you're being ripped off by missing out on credits.


I totally understand what you're saying, and I agree (to a certain extent) on some points. I acknowledge that Koodo's tab changes are meant to keep customers from taking advantage of the discount system, and there's still very good value in the program. However, I disagree on the value of the changes Koodo has instituted, and I question if there's more incentive to shop across providers.

1) You're absolutely right, Koodo isn't responsible for any damage I incur; I am and should replace or repair the phone at my expense. Of course that's logical. What I AM complaining about is the proration value for older phones which are set far too high in comparison to how the phone is priced from the retailer, considering that I have to pay the full value now (i.e. I buy the Galaxy S9 on a $0 medium tab and pay $15/month over the next 24 months, but drop the phone 2 months in; according to Koodo's new policy, I can no longer just pay the remaining tab off and go get a new unit, I now have to pay the full retail value of the phone - $1055 minus what I've paid so far - when Samsung has now priced the S9 at $859).

Of course, all of this is only a factor if you like to upgrade frequently, or if you damage your phone or not. And I acknowledge you are getting a great discount on the unit, or (as you said) can buy your own phone outside of the carrier. All of that leads me to point #2:

2) The change in policy levels the playing field, yes... but I personally feel that Koodo's blanket changes have reduced the incentive for customers to stay with Koodo. Their previous advantages - unit discounts, a tab system that made it possible to upgrade when you like without too much cost, reasonably priced plans, and no contracts - are now much weaker. Most brands including flanker companies like Fido have similar plans, similar tabs, and similar service quality. So that leads me to #3:

3) Bonuses! Koodo no longer offers retention bonuses for renewing, aside from the tab discount... but Koodo is actively pushing people to take more expensive plans at Tab L and higher (which usually applies to the newest, nicest phones). A price-conscious consumer like me hates something like that; I'm not interested in Koodo's profit margin, I'm interested in saving money while still getting what I want. And on that level playing field, customers now have the incentive to go to the provider with the best overall value. Koodo now prices similarly to Fido and Virgin, and as a new customer I can get a bonus if I sign up (while other customers with other providers can also do the same with Koodo). So, Koodo probably won't lose out overall... and that corporate mindset means I should go where I can get the best value.

If you have a great legacy plan, are not too interested in upgrading to the newest models (or buy your own), and are cautious with how you handle your phones, great. If any of those don't apply, that's a reason (strong or weak, that's up to you) to shop around. As I see it.
Again, I can forgive that if the unit is reasonably priced... but the retail value for all of these models, aside from the LG ($520) list at between $1050-$1125. So, if I want to upgrade next year, the prorated balance will still be around $650-$800?? For a 2018 phone? Does Koodo not see the problem with this? As other commentators have noted, what if I drop my phone? What if it dies after the warranty runs out? What if my dream phone comes out next year at a good price?
@Raj Maharaj I don't agree with your thinking. Let's compare to other purchases. How about a car? Let's say I buy a brand new 2018 car for $40,000, and I finance it over 5 years--and let's be generous and say I got 0% financing, much like buying a phone on a tab. Let's say after 6 months I crash the phone into a wall (similar to dropping the phone) or drive it into a lake (like dropping your phone into a lake) and it's not usable any more. The balance on my loan (car tab) would be 4 years and 6 months worth of payments....


Just saw that the amount remaining on the phone credit is adjusted according to the remaining duration of the tab. This reduces the cost owing if upgrading early, so have to factor that into my opinion. Still not perfect, but better than I thought.
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I totally understand what you're saying, and I agree (to a certain extent) on some points. I acknowledge that Koodo's tab changes are meant to keep customers from taking advantage of the discount system, and there's still very good value in the program. However, I disagree on the value of the changes Koodo has instituted, and I question if there's more incentive to shop across providers.

1) You're absolutely right, Koodo isn't responsible for any damage I incur; I am and should replace or repair the phone at my expense. Of course that's logical. What I AM complaining about is the proration value for older phones which are set far too high in comparison to how the phone is priced from the retailer, considering that I have to pay the full value now (i.e. I buy the Galaxy S9 on a $0 medium tab and pay $15/month over the next 24 months, but drop the phone 2 months in; according to Koodo's new policy, I can no longer just pay the remaining tab off and go get a new unit, I now have to pay the full retail value of the phone - $1055 minus what I've paid so far - when Samsung has now priced the S9 at $859). Of course, all of this is only a factor if you like to upgrade frequently, or if you damage your phone or not. And I acknowledge you are getting a great discount on the unit, or (as you said) can buy your own phone outside of the carrier. All of that leads me to point #2:

I see you realize that activation credit is pro-rated too. But regarding the price drop, this is the risk of buying a depreciating asset. This also occurs with a TV or laptop. You may buy it for one price, then 2 months later is is much cheaper than what you may owe on it. Personally I take this as a lesson to take care of your belongings. Being careless has a cost.

2) The change in policy levels the playing field, yes... but I personally feel that Koodo's blanket changes have reduced the incentive for customers to stay with Koodo. Their previous advantages - unit discounts, a tab system that made it possible to upgrade when you like without too much cost, reasonably priced plans, and no contracts - are now much weaker. Most brands including flanker companies like Fido have similar plans, similar tabs, and similar service quality. So that leads me to #3:

This is an unfortunate change indeed. It is too bad that some bad apples took advantage of the previous policy and abused it. Those people (who are also in this post) know who they are. And now we all suffer the consequences for it. My recommendation is to be vocal with the CRTC and maybe in the next Wireless Code version, they will ban activation credits and promo pricing for devices will be actual promo pring


3) Bonuses! Koodo no longer offers retention bonuses for renewing, aside from the tab discount... but Koodo is actively pushing people to take more expensive plans at Tab L and higher (which usually applies to the newest, nicest phones). A price-conscious consumer like me hates something like that; I'm not interested in Koodo's profit margin, I'm interested in saving money while still getting what I want. And on that level playing field, customers now have the incentive to go to the provider with the best overall value. Koodo now prices similarly to Fido and Virgin, and as a new customer I can get a bonus if I sign up (while other customers with other providers can also do the same with Koodo). So, Koodo probably won't lose out overall... and that corporate mindset means I should go where I can get the best value. If you have a great legacy plan, are not too interested in upgrading to the newest models (or buy your own), and are cautious with how you handle your phones, great. If any of those don't apply, that's a reason (strong or weak, that's up to you) to shop around. As I see it.

I recommend never getting a Tab L plan. No matter the price discount on a phone, and especially now if part of he discount needs to be paid back
Customers should definitely go to which ever provider that provides them the best value (prior or after this change by Koodo). This is the best part of a free market system

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