Rogers iPhone rates draw Canadian users' ire

Rogers has announced iPhone pricing packages, resulting in an outcry from Canadian consumers.

Available from Rogers and Fido on July 11, iPhone voice and data packages will range from $60 to $115 monthly with a mandatory three-year contract.

The release equates 400MB to roughly 200,000 text emails, 3,100 Web pages or 1,360 photo attachments. But for users intending to access resource-heavy sites like Facebook and YouTube, the numbers aren’t so clear.

“Regarding the $60 plan, I’m a Web developer, I have been contracted numerous times to write Facebook applications. iPhone’s Safari browser is a full-featured browser capable of viewing rich Facebook pages, which no doubt, millions of users will do. These pages can easily amount to 1MB or more PER VIEW,” writes someone named Jason on the RuinediPhone blog, which urges potential consumers to delay their purchasing plans.

“Screwing Canadian iPhone customers since ’08” is the tagline for RuinediPhone.com, an online petition for Canadians upset with Rogers’ high rates. The goal is to secure 25,000 petitions by July 11. With 10 days remaining before the deadline, 23,007 petitioners have already signed up. RuinediPhone also hosts an open letter to Steve Jobs, urging him to take action. According to creator James Hallen, the site had 100,000 unique visitors in the first 48 hours.

“These are very high prices,” says Michelle Warren, senior research analyst at Info-Tech Research Group. “One of the things that was expected or hoped for is that the pricing for data would come down a little bit, which would encourage people, consumers and corporations, to switch towards more of a data-centric device. I don’t see that with this pricing, so overall, it’s discouraging for people who want to buy an iPhone.”

Despite the boycotting efforts, profits are likely for Rogers. “In many ways, you have to say Rogers is playing its cards right,” says independent telecomm analyst Jon Arnold. “They’ve had enough time to watch the trends of adoption for this product and how it’s being used in the U.S.” “There’s no immediate threat of someone else coming out with a lower priced plan,” Arnold continues, “so they can come to market with a high price knowing that they’re going to get those ‘can’t wait’ subscribers out there no matter what the price is because there’s just so much demand for it.”

While it’s doubtful enterprises will adopt the iPhone in its early release, due to factors beyond voice and data package price, sales from the small business market can be expected. “I think we’ll see some movement there,” says Warren. “There are a lot of firms that are Mac users that will just naturally gravitate towards it.”

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Comments (10)

iPhone + Rogers = Bad Deal

by RH 7/3/2008 12:00:00 AMI'm a Mac guy through and through but to me, the Blackberry Curve ended up being a much better device (sorry Steve), and consequently a better deal. Even when I tried to like the iPhone, the Rogers' arrogance at the store I visited, combined with their exhorbitant pricing, sealed the deal for me at Bell. They offered a plan with 200 daytime minutes, unl. eve and wknds starting at 6pm, CD, VM and included sys access and 911 fees for $35. Added to that was a $30 unlimited data plan bringing my monthly bill to $65 - just $5 more than the crappiest Rogers plan with unlimited data and a lot more. Rogers had no intention of attempting to match, even on the BB. Bell isn't perfect and lacks the 3g and GSM capabilities, but they served up a good deal here. I'm sure Rogers could compete.

Sr. Tech. Specialist

by Don 7/7/2008 12:00:00 AMI am not surprised at the rates being charged for the iPhone. The rates charged in Canada for all wireless technology are much higher than need be. Simple fact is Canada basically has an oligopoly. Consumers have the final say. Don't buy it and watch the price change. Unfortunatley, people would rather complain and end up buying anyway. Hard to have sympathy for those who find themselves in that position.

Observer

by R 7/2/2008 12:00:00 AMNot sure if the RuinediPhone web server is down or not. I posted a comment on the blog this morning from another ISP and it worked fine. Now I'm on a Rogers ISP connection and I'm getting a 403 error from the host. ruinediphone.com's IP still resolves correctly on the default Rogers DNS server and it's still pingable and reachable via telnet port 80. Wonder if Rogers is doing something to block this site from other visitors?

Where is the competition?

by Stephen Brown 7/7/2008 12:00:00 AMIn Japan the iPhone will cost 7,500.00 yen per month (about CAD$71) or 8,000 yen for the 16GB (CAD$76), on a two year contract with Softbank. The good news is that it includes unlimited web and mail. That is because there are already mobile wireless access plans that run for 3,900 yen (CAD$37) per month, for unlimited transfer (including the ability to access the net) albeit at a slower 128kbps. The iphone's unlimited packet plan will put even more downward price pressure on wireless providers such as Docomo and AU (KDDI). Isn't competition grand! Rogers is simply doing what they *CAN* do in the face of lack of competition: Gouge the consumer! Fido should have never been sold to Rogers and the industry should otherwise be deregulated so that competition and marginal cost will dictate the price to consumers. Stephen@hardfocus media

Manager, Marketing Communications

by Traci 7/7/2008 12:00:00 AMWouldn't it be smarter for Rogers to come out with a killer iPhone plan that made everyone who was even curious about it run directly to Rogers??? Surely they'd end up making even more money than they will by overcharging lesser amounts of adopters.

I see Blackberry stains all over this plan

by Peter Heinrich 7/2/2008 12:00:00 AMI'd like to suggest that there was more than a little bit of pressure from RIM to come out with plans that were not going to undermine the Blackberry offerings. RIM has a wi-fi enabled Curve model that they have been selling themselves to work on the Rogers network. Next is the Bold phone which is being held out as a carrot to Rogers as well. 'Be hard on APPLE or we'll sell the Bold exclusively to Telus'..... just a thought... one that might make you go hmmmmm.

Tier 2 Support Analyst

by Mario 7/8/2008 12:00:00 AM'Gouge the customer while you can' seems to be Roger's mission statement. I am on a month to month plan with Rogers (as I have been with Fido & Bell in the past). I pay more for my phone but at least I have the satisfaction of dumping my provider when they tick me off. I was planning to buy 2 iphones (one each for myself and my girlfriend) but I absolutely will not do so unless Rogers changes it's data plan rates.

Norway data...

by Roderick 7/7/2008 12:00:00 AMhttp://www.macworld.com/article/134314/2008/07/netcom_unlimited.html The article mentions the company listened.... I bet Rogers won't though.....

Used one's

by Dave 7/7/2008 12:00:00 AMThere will be plenty of used ones shortly, don't purchase the new one (boycott Rogers) and grab an old one and jailbreak it.

Rip_off

by Azim 7/8/2008 12:00:00 AMI concur with Stephen's comments from Tokyo. With only 3 major Telco's in Canada, these guys rule!@$# And worst, CRTC who are taxpayer funded comission lets them getaway with this?!@# The population of Canada at about 33M, no other Telco would want to invest in Canada. Till Roger's changes its plan, I am out, total boycott. Sure hope Steve's from Apple is reading this all. What a mess?? If I am not mistaken, didn't Germany or some other European country would not let Apple pick just one Telco but had to be multiple, peoples preference??