How Canadian Cell Carriers Still Get Their Pound of Flesh Even With Two Year Contracts

When Telus Mobility called me this week to see how everything is going, which is quite well by the way… I told them I was happy with the actual cell service but still enraged about how their new two year plans are punitive and insulting. I just cannot believe that more people don’t realize this or have not taken to the streets in a Montreal Canadians Stanley Cup win riot in rage.


The Good Old Days

Lets put this in context. When I got my iPhone 4 I got for $55 1GB of data, weeknights and weekends free and 10 numbers on a special call list that would not go against my minutes. Three years later and a month or two before the iPhone 5S was released I noticed they were offering a $60 for 3GB of data and unlimited calling nation wide. The nice representative gave me the new plan without adding time onto my almost expired 3 year contact as I told them I would be getting the new iPhone ASAP when it was released. That was until I saw the new plans.

Yeah, It’s a Change

The new plans are a) not only worse than what was offered not just a month before but three years before and b) more expensive.

So what happened? Cell phone company greed. It’s not just Telus, all of the carriers in Canada have lowered the bar to to similarly awful plans across the board. They are punishing the consumer because the Canadian government told them to ditch three year contracts. Do not sheed tears for them, they will still get their pound of flesh.

Get Your Fresh Data

A subsidized iPhone now requires a minimum plan of $70 versus the $55 from 2010 or $60 a month earlier in 2013. Also for $70 now you get 500mb. 2010 it was 1GB and my current plan is 3GB. That’s 6 times less data!

Data still cost the same for the carriers before and after the iPhone’s release. Data is 1’s and 0’s, electrical signals, a virtual commodity. They are not grown, harvested and shipped to market. There is no shortage or crop failure that causes market scarcity and prices to rise.

No Money For You

I have told Telus that when whatever the next iPhone is I will but it from Apple unlocked. The very nice representative said I could buy the phone from Telus unlocked. I told her that I would rather give Apple the money than Telus on principal. It would cheaper from me to but the phone unlocked than pay more and get less just to receive the subsidy on the phone. Finally I can use a SIM card in the USA on my phone!

You See Them Too, Right?

Over on iPhone in Canada go read their story on what I knew was true What’s Cheaper? Buying an Unlocked iPhone vs Subsidized 2-Year Term Compared. Nice to see someone actually did the math so I have some actual facts to back-up my anger.

Oh and PS, if you want to new iPhone please for god’s sake wait till the fall for the new one. At the very least you could get the iPhone 5S as the free one.