New CRTC wireless code effective Dec. 2, 2013 - Page 4 - Canadian TV, Computing and Home Theatre Forums

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post #46 of 106 (permalink) Old 2013-06-05, 05:49 PM
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You have misinterpreted the code. All subsidies must be amortized over the first two years. This means that by the end of year two, you can walk away from your contract with no cancellation fees, and with no remaining balance owed on your device. You won't have to pay a cent.

So, for example, when you bought your Note II, the terms of your agreement with the carrier required you to pay for a plan for three years or pay the balance on the phone. Now, you will only be required to pay for your plan for two years, or pay the balance on the phone.

For the same $450 subsidy, the carrier only gets two years of monthly fees, rather than three. That's a massive loss for them, and one they will pass on to consumers.

The code does something very, very different from Bill 60.

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post #47 of 106 (permalink) Old 2013-06-05, 05:59 PM
 
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Yeah Just was told that before I saw your post by someone here. I have probably misheard or misunderstood what someone from the CRTC said on a radio interview. I have corrected my last post, but still let the original post so it stay clear that I was misinterpreting this.

But still thanks for getting things clarifying things me. Now I see why there might be a price increase. Let's hope competition will stop it from happening even thought things look bad right now with Mobilicity.
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post #48 of 106 (permalink) Old 2013-06-05, 07:37 PM
 
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According to what I read on Mobilesyrup, they too interpreted the new code the same way jcab and I did. That there is no penalty if you cancel after 2 years but you still have to pay the last year(year 3) for the phone subsidy.

But if Torontocollin is right about the 2 year amortization period then phone prices will go up. Fido has had 2 year agreements for awhile now in Quebec and the phones are more expensive.
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post #49 of 106 (permalink) Old 2013-06-05, 07:55 PM
 
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"The Commission further considers that the early cancellation fee should be limited to the remaining balance of the device, which must decrease by an equal amount each month over a maximum of 24 months."

"In all cases, after two years, customers will be able to decide whether or not to continue the relationship with their current WSP or to choose a competitor’s service without any early cancellation fees or other burden"

Both quotes from the CRTC.

Also every carrier has switched to a subsidy based cancellation model now, so limiting the contract to two years while allowing to carriers to charge for the remaining subsidy after that 2 year period wouldn't make much sense, as all carriers are doing that now.
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post #50 of 106 (permalink) Old 2013-06-05, 08:24 PM
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Originally Posted by rogue17 View Post
But if Torontocollin is right about the 2 year amortization period then phone prices will go up. Fido has had 2 year agreements for awhile now in Quebec and the phones are more expensive.
I actually think that it's more likely that service rates will go up. On a $450 subsidy, the carriers are now losing an extra $150, since that subsidy would have been $150/year for three years. However, they may see it as even more than that, since they're also potentially losing $600+ in service fees for that third year, if customers move elsewhere. Rather than making customers pay the extra $150 up front, they may just try and collect an extra $10/month for the first 24 months.

I also think we're going to see some wacky things from the flankers, as the carriers experiment to try and read the new market. We may see carriers switching to higher rates but maintaining the current rates on flankers while reducing subsidies.

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post #51 of 106 (permalink) Old 2013-07-01, 05:20 AM
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That's the best suggestion! They should have to specifically disclose the subsidy amount and not be allowed to bundle it in the service rate.
Yeah, I've been out of Rogers' subsidy period for 5 years, I should not pay as much as the next person who is under subsidy.

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post #52 of 106 (permalink) Old 2013-07-02, 09:47 PM
 
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Did anyone else get an email today from Tory's regarding a leave for appeal from the big three?
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post #53 of 106 (permalink) Old 2013-07-03, 07:41 AM
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^^^^
Not that I noticed. What did it say?

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post #54 of 106 (permalink) Old 2013-07-03, 10:07 AM Thread Starter
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Canada’s telecom giants set to challenge parts of CRTC’s new wireless code

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The carriers are seeking leave to appeal to the Federal Court and the major issue they take is with the code’s provision that it should apply to “all contracts, no matter when they were entered into, by no later than 3 June 2015.”

Since that is less than three years from the date of application of the code, they argue that would mean the code would override the terms of any pre-existing three-year contract that has not yet terminated.
Source: http://business.financialpost.com/20..._lsa=604a-732b

The carriers are saying that the code will apply retroactively to existing contracts which means they won't recover the subsidy.

Torys sent out notices to intervenors in the CRTC hearings.
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post #55 of 106 (permalink) Old 2013-07-17, 10:48 PM
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Most of the carriers plans have leaked, and it seems like standard practice is to jack up rates by $5/month to compensate. Other casualties include the death of the Virgin Mobile Supertab.

I suspect we may also see lower subsidies too.

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post #56 of 106 (permalink) Old 2013-07-17, 11:03 PM
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At least Rogers is giving all the cell lines with purchased (non-subsidy) phones 10% off (on top of the 12% bundle discount). In three years, between two lines, I'll save about $600 after tax (plus another $700-ish from the bundle discount)

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post #57 of 106 (permalink) Old 2013-07-18, 01:23 AM
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Perhaps, but for most smartphone plans that 10% equates to barely if any more than the initial price increase.

I believe Telus is offering a more substantial BYOD discount.

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post #58 of 106 (permalink) Old 2013-07-18, 09:28 AM
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Oh I agree that 10% off for BYOD is a joke (my BlackBerry costs me $650 each, sold for $200 w/ 3 year contract) the BYOD discount only pays $400 for the first phone and $200 for the second phone. Yet if I go with contract the subsidy is a flat $400+tax per phone.

But it's better than nothing although it's far from fair.

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post #59 of 106 (permalink) Old 2013-07-18, 12:42 PM
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^^^^
It's also possible to get a better plan when they have special offers. I have a 6 GB data plan with 200 week day minutes, unlimited evening & weekend, unlimited texting and My10 list for $60 before bundle discount.

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post #60 of 106 (permalink) Old 2013-07-18, 12:53 PM
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Originally I was offered a similar thing but 200 mins is not enough for me. So I get the unlimited Canada calling at anytime, 4GB data, unlimited text (incl MMS), enhanced call display, enhanced voice mail, unlimited call fwd for $95 (family plan) and for the 2nd line (shared with me) is $45. Considering I use the minimum of 1200 mins/month between 8am to 6pm, I feel I get a decent deal.

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