[TorontoColin]

When you pay upfront for either 3, 6, 9 or 12 months of service you get a certain percentage discount. Mobilicity states on their site that “The greater your upfront payment, the greater the discount you receive”… the largest is a massive 33% discount.

Pay upfront for 3 months will save you “approximately” 15%; 6 months is 20%; 9 months is 25%; 12 months is 33%.

Perhaps this is a way for Mobilicity to make some quick cash, particularly with the three new launches, and clear some of their debts. It's an interesting strategy, to say the least.

 

[outinthornhill]

+1 will be interesting to see how this works out for Mobi~

As a way to get some cash in the bank and reduce financing costs, it's a good idea but I wonder how many of the price-conscious subscribers who are drawn to Mobilicity, or any of the new carriers, are also able or inclined to pay for their wireless service months in advance.

 

[TorontoColin]

I suspect when offered a substantial discount a lot of them will. I top up my Wind account with 3 months worth at a time and I don't even get a discount for it, I just find it's easier than remembering each month.

It's interesting that it's almost a contract in disguise. If you want the full discount you need to commit to a year of Mobilicity. If you want to go month to month you pay more.

 

[hugh]

Not so much a contract as a discount for early payment! I like the idea.

Once I'm done my boat anchor of a contract with Rogers, I hope that the upstarts will still be around so I can take advantage of the new deals.

 

[TorontoColin]

Oh don't get me wrong, I think it's a brilliant idea. It benefits both sides, Mobilicity gets some upfront cash to pay of their debts or pay for further expansion, and customers get a discount if they're willing to put their faith (and cash) into Mobilicity.

I only mean it's like a contract in that once you pay up front for the year you're committed to using their service for a year, as I would assume they won't refund you if you cancel within the year. I'm also not clear how plan changing would work.

That said, I think it carries fewer of the evils of typical cell phone contracts; no ECFs or opportunities for them to raise your costs while you can't do anything about it, as far as I can tell. It also provides those who feel the pricing is too good to be true ($35/month for unlimited local talk/text/data) and actually want to lock in. And one year is infinitely more reasonable than three; most people are a lot more confident of where they will be in one year vs three.

 

[cptcarter]

I love the idea and the discounts are REALLY good especially if you pay a year in advance but I am worried that this may be a sign of weakness for Mobilicity in terms of that they need cash in advance from their customers to keep a positive cash flow for the business. I really, really hope I'm wrong because once my Bell mobility contract is up and they come to Windsor, Mobilicity is the company for me! I also noticed that Wind is doing a really good job of advertising on television! Whenever I am watching Global tv Toronto, their ad is on almost every second or third commercial! It's nice to see some fresh blood and I hope they all do well against the incumbents!

 

[snfraser]

Check out their new holiday specials.
$40 dollars/month for everything.

Going to activate my Nexus One in Edmonton today.

 

[PaulB]

Check out their new holiday specials.
$40 dollars/month for everything.

Does anyone know if the multi-month payment discounts apply to the holiday specials? I can't find anything on their website to indicate one way or the other.

 

[snfraser]

No, the multi-pay option is not available for the holiday special. I know because I just signed up for the $40 holiday plan over the phone.

 

[taxtwit]

The pay in advance option is intriguing me. I have a PAYG Rogers account and I essentially "pay in advance" anyway by buying a $100 voucher with minutes that don't expire for a year, since that's the only way I can keep my prepaid minutes from expiring. Although paying for a year of Mobilicity in advance would cost me 20 - 30% more than what I'm averaging on PAYG, the (essentially) unlimited voice and data I'd get in return is pretty compelling.

 

[TKG26]

a 40$ all in plan !! WOW!

Whats the catch here? Admin fees,netwerk fees, debt repayment fees???

This is more like it. How can they offer such plans? Telus 100$ data plan does not even come close to matching this holiday offer.. Amazing.

Does this really just show us that with the big 3 there plans have built in cost recouping of the subsidized phones we all get?

 

[Veee]

The one negative aspect of Mobilicity's data plan that I've read is that the download speeds are significantly slower than the competition.

 

[DIGITALEight]

Most people I have talked to get about 2-3mbps with Mobilicity while 4-5mbps on Wind.