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TabL vs TabM


Userlevel 6
I've been doing some calculations... and really, I'll need someone from Koodo to explain this to me. I'll use the $75 TabM plan and it's twin $95 TabL plan since they offer practically the same things (with worse overages on the $95 one). The phone I'm using for comparison will be the S4 @ $725. Now, we all know TabM goes down to -$300 (so, a $425 up front price), and TabL down to -$500 (so, a $225 up front price), so essentially, a $200 saving, up front, on the device price. Case scenario #1: Someone gets a TabM and the $75 plan. Monthly Koodo 15% = $11.25 Monthly customer contribution = $5 Total towards TabM each month: $16.25 Time needed to clear TabM up to 0: $300 / $16.25 = 18.46 so roughly 19 months to clear a $300 TabM. Case scenario #2: Someone gets a TabL and the $95 plan (for similarity in what you get). Monthly Koodo 15% = $14.25 Monthly customer contribution = $10 Total towards TabM each month: $24.25 Time needed to clear TabL up to 0: $500 / $24.25 = 20.62 so roughly 21 months to clear a $500 TabL. For the sake of readability, let's assume that in both cases, it takes 20 months to clear both Tabs. Every month, the customer from scenario #2 pays $25 extra compared to the one from scenario #1, because his/her plan is $20 more and the contribution is also $5 more, so $25 more. Over the course of the 20 months it takes to clear both Tabs, customer #2 will have paid $500 more, out of pocket, than customer #1 for similar service. So, am I right believing that customer #2 will be paying $500 just for the privilege of saving $200 more up front? That's still a $300 difference Koodo! It's $15/month more expensive over the course of those 20 months, for the exact same device and eerily similar plans. Someone really needs to point out to me where I failed my math. Until that happens, I'll consider TabL options blatant ripoffs.

6 replies

Userlevel 6
So? Do I get it right, or do I get it wrong? If wrong, please enlighten.
Userlevel 7
Yeah it sounds about right, I see where you're coming from. The reason for this is people kept saying they didn't want to pay a lot upfront for their phone... the Tab L was Koodo's answer for that and to get that high subsidy, it comes at a price.. but I agree that the plans should be at the very least just a tad cheaper.
Userlevel 6
Jonathan I wrote:

Yeah it sounds about right, I see where you're coming from. The reason for this is people kept sa...

It certainly comes at a price Jonathan... Paying $500 to borrow $200! Using this loan calculator: http://www.thecalculatorsite.com/finance/calculators/loancalculator.php And using the following parameters: Loan amount: $200 Months: 20 You need to input 131% into the interest rate box to achieve $300 paid interest ($200 loan + $300 interest paid = $500 total, like in my example). In my opinion, 131% yearly interest rate is simply unreal. Let's think about it for a second. 131%. I get the idea that people wanted to pay less up front, but really.... Anyway, thanks for your input Jonathan! I needed to verify I was still on track.
Jonathan I wrote:

Yeah it sounds about right, I see where you're coming from. The reason for this is people kept sa...

You pretty much were even if you go by my idea(which fell by the waste side apparently). Tab L is a ripoff. It's no different from Virgin's SuperTab of $500. In this day and age, too many people feel they are entitled to a high end piece of electronic equipment. I await the day where Tabs are eliminated completely and the ideaology of "you want it, you pay for it" is brought into practice.
Userlevel 6
Jonathan I wrote:

Yeah it sounds about right, I see where you're coming from. The reason for this is people kept sa...

Absolutely agreed Marcus! Heck, Telus should have a 3rd flanker brand which is SIM only. No Tab, no nonsense, just great plans. Let us handle the "I need a device" part, we are grown ups and we can manage. Just give us the SIM along with a great plan, and we'll be happy!
Userlevel 7
Badge +4
Jonathan I wrote:

Yeah it sounds about right, I see where you're coming from. The reason for this is people kept sa...

The TabL plans are indeed the worst plans out there.  I hate to say it, but they are even of lower value than Rogers.  
I understand the monthly tab contribution to help pay off the subsidy, but the need for similar plans for $20/ month premium is blatantly taking advantage of people who cannot afford the upfront cost of a phone.

Couldnt Koodo have only plans $65+ qualify for the TabL just like only plans $30+ qualifies for TabM?

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