Upgrading Phone before contract end?

[Vader]

Thanks everyone for the feedback... not that worried about getting the latest iPhone as my wife would be happy with the 4S when the 5 comes out (if MTS gets it).... will likely try the conversion in the October/November time frame so I can give it to her for her B-day :-)

[Vader]

iPhone 5 posted as coming soon on the mts website like all the other carriers.

[Vader]

Found this on the MTS site... as of September 15, 2012.

http://www.mts.ca/mts/personal/suppo...AccordionItem3

The termination fee for customers ending their contracts early will vary depending on the type of hardware selected. If a customer was given a phone for free or at a reduced rate when signing a fixed term contract, the termination fee will be based on the difference between the retail value of the hardware and the price the customer paid for it, prorated over the contract term length. That amount is equal to the formula S – (S x E ÷ T), where
S = the difference between the retail value of the hardware and what the customer paid for it, known as the hardware subsidy
E = the number of months that they have elapsed since the contract started
T = the number of months of the entire contract term
For example: $590 retail priced phone where customer pays $50 based on a 3-year contract. If a customer cancelled after 26 months, they would pay $150, calculated as follows:
($590 - $50) – [($590 - $50) x 26 ÷ 36].

[Dr.Dave]

That's for new contracts only.

The new cell phone contract laws apply to new cell phone contracts signed on or after September 15, 2012 and to any existing contracts that are renewed or extended on or after September 15, 2012. Existing customers that signed contracts prior to September 15, 2012 are subject to the existing terms and conditions of their cell phone contract.

[CoryB]

The old MTS cell phone cancellation terms for a flat $30 a month remaining. I think there was as a floor (minimum ammount) that it would reach beyond which how many months left was no longer a factor.

I know these cancellation terms were a factor in me no selecting MTS for cell service.

[Vader]

Originally Posted by Dr.Dave

That's for new contracts only.

Yes, found out the hard way when I called :-(

Looks like I will have to wait another month or so to get within a year and then see if talking to the retention/cancellation people can get me a better deal. Stay tuned :-)

[Vader]

So when I called this week the max they were willing to waive was 6 months.... so it looks like I am still out $180 if I want to switch with a year left in the contract :-(

[Mozza]

Call and ask again. Then ask how much it would be to cancel your contract with MTS entirely. If those amounts are close or the same, maybe mention that Rogers is giving you a better deal on hardware, and wouldn't they think it's better to just switch to Rogers? Then ask for a note to be put on your account as to the amounts you were quoted, because you are going to talk it over with your wife about all of your services with MTS and if it makes sense to bundle.

Then call back the next day and ask about it again "one last time". See if the amounts have changed.

[MrGrinch]

Speaking from experience MTS is really sticky on this. I had a blackberry die on me with 8 months left on contract and there was nothing the retailer or loyalty department was willing to do. Got dinged $60 for 2 months outstanding plus a $30 reactivation fee on the new phone. Would have hoped for better being a customer with them for 4 different services, but they do say that letting me off my contract 6 months early is their gift to me. Ugh.

[therealjoeblow]

Originally Posted by Vader

Found this on the MTS site... as of September 15, 2012.

http://www.mts.ca/mts/personal/suppo...AccordionItem3

The termination fee for customers ending their contracts early will vary depending on the type of hardware selected. If a customer was given a phone for free or at a reduced rate when signing a fixed term contract, the termination fee will be based on the difference between the retail value of the hardware and the price the customer paid for it, prorated over the contract term length. That amount is equal to the formula S – (S x E ÷ T), where
S = the difference between the retail value of the hardware and what the customer paid for it, known as the hardware subsidy
E = the number of months that they have elapsed since the contract started
T = the number of months of the entire contract term
For example: $590 retail priced phone where customer pays $50 based on a 3-year contract. If a customer cancelled after 26 months, they would pay $150, calculated as follows:
($590 - $50) – [($590 - $50) x 26 ÷ 36].

That formula is unnecessarily overly complicated...

It is expressed much more simply as:

Termination Cost = Subsidy * [Months Remaining / Contract Length]

ie, $540 * (10/36)=$150

...but then, noone ever accused a Telco of trying to make things simple :-)

/TRJB

[gordon1111]

just so you guys know that if you signed a contract before Sept 15th 2012 you are bound by your previous terms and cancellation fees. Should of paid more attention in math class lol

[Vader]

So we went in and did the upgrade on the weekend with the new free iPhone 5 deal.... thought I would have to pay for one month still (contract expires in November so 7 months away) but the guy said that the only fee I had to pay was the Network Activation fee for the new phone.... so for $40 my wife has a new iPhone :-)

BTW, anyone have any luck calling MTS and getting that fee waived? The guy said he could not do it in the store...

[gordon1111]

call mts loyalty 204-225-5687 option 4 then 1 enter 10 digit phone number then press 0 and you will be in touch with loyalty dept That should work unless they changed it from a few months ago when I spoke with them thanks!