A third less calling time, half as many text messages baffle experts
Gillian Shaw
Sun
Canadian consumers were revolting Tuesday against Rogers Communications’ rates for the Apple iPhone 3G, and news media around the world were noticing.
By Canada Day, more than 21,000 upset iPhone fans had signed an online petition protesting Rogers‘ rates for the gadget, which will be available in Canada July 11.
Media from the U.S. to the U.K. were weighing in on the story, taking turns mocking and pillorying Rogers for charging more for the iPhone while offering fewer benefits than wireless providers in other countries.
University of Ottawa e-commerce and Internet expert Michael Geist said Canada is in “a wireless crisis.”
“It is striking that when you get devices that attract global attention like the iPhone, that truly puts the spotlight on the lack of competition in the [Canadian] marketplace,” Geist said.
“We’ve got one of the least competitive markets in the world with regards to pricing,” Geist said, adding that as well as higher pricing for its data plans, Rogers is also requiring a three-year contract. By comparison, AT&T in the United States requires only a two-year plan and it is selling the iPhone at the same price as Rogers, $199.
“This is what you get in a marketplace with such limited competition. Indeed, there is no competition in the GSM provider space,” Geist said, referring to the fact Rogers is the only carrier in Canada with a network the iPhone can operate on.
“Oh Canada!” mocked an Australian tech wire in a headline. “Rogers gives iPhone users an expensive rogering.”
The Washington Post chimed in: “Canadian iPhone Fans Balk At Prices.”
Canadians who want the iPhone will have to sign a three-year contract with the network, with tariffs that compare unfavourably to AT&T’s plans. For example, the $75-a-month plan gives Canadian users two-thirds the airtime and half the texts, and caps data usage at 750 MB.
With their online petition at ruined-iphone.com, Canadian consumers hope persuade Apple to cut another deal with a competing carrier to bring the price down.
The website, titled Screwing Canadian iPhone consumers since ’08, includes an open letter to Apple CEO Steve Jobs.
Signed by James Hallen, the letter calls on Jobs to intervene and pressure Rogers into reducing its iPhone rates.
“I was going to buy an iPhone for me, my girlfriend and my family. Now, sadly, I cannot afford the plan,” writes Hallen. “I hope you can do something Steve; we are loyal customers and trust that you will. We don’t want to lose faith in Apple.”
The website has also provided a venting forum for outraged would-be iPhone customers.
“As a previous Rogers employee I know for a fact that they can do better and this plan is a joke. Smarten up guys,” Chris Burka posted.
Fortune Magazine’s Apple blogger, Philip Elmer-DeWitt, asked, “What’s wrong with Rogers‘ rate plan?” He answered himself: “For one thing, it comes with a mandatory three-year contract. In the U.K., O2 offers an 18-month contract and throws in the iPhone for free. And although both AT&T and Rogers offer calling, data and text messaging for $75 a month, Rogers at that price gives Canadians a third less calling time, half as many text messages, and puts a 750-MB cap on 3G data usage — with steep fees for users who go over their monthly limit.”
Liz Hamilton, a spokeswoman for Rogers, said the company had no comment on the petition but said it was apparent there is “confusion in the marketplace” about Rogers‘ pricing plans for the phone.
She said iPhone 3G bundles are high value and offer customers savings over other voice and data plans.
“These are the best value for customers who wish to use the iPhone 3G as it was meant to be used, but as always our customers have choices,” Hamilton said in an e-mail.
The petition’s creators said they plan to send a printed copy of all comments posted on their website to Rogers headquarters in Toronto July 11 “to demonstrate our indignation toward them.”
© The Vancouver Sun 2008
