Rogers Bans Some Existing Customers From Buying iPhones

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As we've pointed out many times before, Rogers boasts an exceptional brand of contempt for its non-business wireless customers, but the launch of Apple's desperately anticipated iPhone has exposed a whole set of new lows for the Toronto-based company. Due to a breathtakingly boneheaded policy put in place by the company's National Planning Department, existing customers currently under a Rogers contract and who have upgraded their handset within the year are prohibited from purchasing an iPhone. At all.

Well, that's only partly true. They can buy an iPhone if they cancel their current contract, pay the early cancellation penalty fee ($20 per month left on the contract to a maximum of $400), and then sign up to a new contract, which includes an additional $35 activation fee. Customers aren't even allowed to keep their previous phone number, as number porting is only available when transferring carriers—so, to retain a number with an iPhone, a customer would have to sign up for a brand new account with Rogers subsidiary Fido.

Reportedly, Rogers sales reps have also been specifically instructed not to waive any fees whatsoever in relation to iPhone purchases.

Essentially, a customer under contract who replaced a stolen or broken handset less than a year ago is now locked out of switching to an iPhone until the current contract runs out. This is especially problematic now because the only semi-reasonable data package is an offer that expires at the end of August.

rogers_laughing.jpgThe limited-time offer was implemented in response to a massive level of criticism of Rogers' exorbitant data rates. It was hoped that the Canadian debut of the device would force Rogers to offer rates and data packages more in-line with other countries, but when the plans were revealed in June, it was business as usual for the communications behemoth, which enjoys a GSM monopoly in Canada (the iPhone only works on GSM networks). On July 9, Rogers caved somewhat to the mountain of bad press and offered a $30 add-on for existing plans with a more generous monthly data cap of 6 GB. That offer expires August 31, and although Rogers spins it as a gift to "early adopters," what that move did was get some better PR points for the company while drawing a whole bunch of fence-sitters into iPhone contracts who otherwise might not have purchased one.

As with anything Rogers, the policy to lock-out potential iPhone customers until they finish a current contract seems suspicious: those consumers are still likely to buy an iPhone later, which effectively extends the lock-in period and employs the higher, extremely lucrative rate plan. Rogers has also not stated if they will allow new iPhone customers to upgrade as new generations of the iPhone are released over the contract term, or what options will be available as iPhones are lost, broken, or stolen (they claim that they can replace it with a phone; just not another iPhone). The company has clearly indicated that they might start blocking any non-Rogers, unlocked, or modded iPhones on their network, however.

Wireless carriers have always subsidized handsets in order to appear cheaper for the customer; the longer the contract, the cheaper the phone. That still doesn't explain why Rogers won't allow handset upgraders to pay out the remaining contract period and/or handset subsidy in order to get an iPhone, especially since the purchase of an iPhone brings thousands of guaranteed dollars to the company over the 36-month lock-in.

In related news, Rogers' wireless sales, which make up 54% of the company's revenue, jumped 12% over the last quarter, netting $1.36 billion and 41,000 new subscribers.

Photo by Marc Lostracco.

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This bothers me greatly!!!! We need REAL cell competition in Canada! NOW!

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It's like they don't even want customers. Boycott.

...those consumers are still likely to buy an iPhone later...

And they'll deserve what they get.

Yeah.. was anyone else searching "rogers" on twitter the day the iPhone launched? it was like, mass anger pandemonium. From what i heard, ALL existing customers couldn't even get an iPhone for the first week...

Nuts to the iPhone.

Shame on Rogers, and shame on all you suckers who actually bought into this hype.

Easy fix: Don't buy an iPhone.

So what I'm *hearing* is that they're trying to encourage you to go to another carrier?

I was trying to buy an iphone today too. They were giving me grief about the deadline on the $30 data add-on option etc, etc... And then the Rogers store employee said to me: "Well they SAY that, but [laughs] its ROGERS, so WHO KNOWS?" (emphasis his)

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But at least we can be happy we're being ripped off by a Canadian company instead of those evil Americans.

Jesus. Look, before pushing "publish" on a very negative and opinionated piece, you might want to check your facts with a company rep to make sure what you're saying is accurate.

I see no mention of contacting a Rogers Wireless rep (which, for a well-known Toronto-centric blog, shouldn't be a problem) and can't take any of your words seriously until then.

Yes, I got my information from two Rogers sales reps and two support reps, and I myself fall under this restriction. What facts do you feel are incorrect and do you think I'm just making this shit up?!

Rogers' official PR department always declines to comment when we contact them.

Easy Fix: Buy a BlackBerry Pearl and an iPod Touch. For the same price you get the best of both worlds.

It's a well-known fact that the front-line people are pretty dumb. I wouldn't take their word for gospel at anytime. What one sales rep in Kelowna says may be different that one in Laval may say.

The fact that you didn't even bother to call Rogers Wireless PR dept. looks lazy and inaccurate on your part.

I would find it hard to imagine that RW would offer a "no comment" on a few contractural details that have been tied to its biggest product.

Or maybe they just decline to talk to you because you're, well, an angry blogger, and not an objective reporter.

I don't need to talk to a Rogers PRtard to know that they're full of shit. How's that for an angry blogger?

I'm in the UK now and while the iPhone situation here is also less than ideal, it makes, by comparison, Canada look like some fucking backwards shithole. Not surprising considering that even Rwanda has better data rates than Canada.

Or maybe they just decline to talk to you because you're, well, an angry blogger, and not an objective reporter

Oooooh, and you're a newspaper reporter so you think that makes it your duty to rag on people who are writing for free. Very big of you.

strangehold: Check negative stories in the mainstream media as well—Rogers either always has "no comment" or they say something like how they believe their services provide incredible, amazing, fantastical value to their customers. Rogers won't speak to Torontoist other than "no comment" because they don't like answering questions about their questionable practices, like system access fees and data plans.

As far as the accuracy of my article, please feel free to refute the parts you think are inaccurate or wrong, because it's all accurate.

I went through two sales reps and two phone support reps (at different tiers) in an attempt to get an iPhone this way, so I don't understand why you think I can't take the word of sales and support representatives for the company as valid. I also spoke to someone else who was going through the same process today and Torontoist also got a tip from a reader that they were also dealing with this nonsense policy.

And yes, I am an angry blogger. Rogers makes it too easy to hate them, which is sad because they wouldn't have to do much to make people happy. I'm also a Rogers customer for wireless, cable, and internet, I've picked through their terms of service and legal documents ad nauseam, and I'm intimately familiar with their corporate attitude. They know they've got most of their customer base by the short-and-curlies, and because they also share the shady practices of the other domestic telcos, they don't give a shit if people hate them because they'll still make money.

The fact that Rogers PR won't speak to me because we criticize them doesn't negate the validity of the information I presented.

It is a phone, I would not go to Rogers if they were giving away the iPhone for free. Sheer idiocy the the way people are acting over this phone.

Oooooh, and you're a newspaper reporter so you think that makes it your duty to rag on people who are writing for free.

For free? Are you talking about the staff or random commenters?

I had a really long post but I deleted it, so just google this: Commissioner for Complaints for Telecommunications Services. Use it or either threaten Rogers with going to it. It'll cost them $1,000 to address your problem and from what I've heard, they're efficient.

All I'm saying is don't use low-level sources that rely on scripts to sell product and take the five minutes to find out what the exact policy is from the right representative. Don't take "no comment" for an answer because there's enough people out there that can give you a straight answer. It's just good, responsible journalism.

So Carly, shut up.

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This is a blog, not a newspaper.

Anyone who is defending Rogers actions is either in bed with them or an idiot who has money to burn. Rogers should offer the iPhone at full price to customers who lose their iPhone or happen to break it. The only way to get another iphone is to break your contract for 400 bucks and than sign up for a new 3 year contract! Kind of steep don't you think. Is that how a company should treat their loyal customers??? Seems unfair anyway you slice it.

So Carly, shut up.

Now who's the angry blogger Stronghold?

Lets not fight amongst ourselves here...lets remember who the real enemy is....

So Carly, shut up.

Heee hee heee.

For free? Are you talking about the staff or random commenters?

Staff - it might not be exactly free, but it's close enough.

Thanks for writing about this. I've been a Rogers customer a long time and in the past have had success at negotiating my way through the Rogers maze to get more or less what I needed. And although it's a stretch to say I needed an iPhone, I was very interested in one. But because my old phone was stolen last November, I'm out of luck, despite all the services my family has with them. I have worked my way through different levels of the company and get the same answers at each point. What seems ridiculous to me is that it's not like they're giving iPhones away - you still have to pay for one and you still have to extend your contract. The reps I speak with are all courteous and don't even bother to defend the policy, but it's definitely iron-clad. Hopefully the negative publicity created by articles like this will cause them to rethink their contemptuous treatment of existing customers.

This isn't entirely true. Rogers policy, for about 3 years now has been that customers must wait 1 year between upgrades. After the 12 months are up, a customer is eligible for another subsidy and can upgrade.

From what I know, it is Apple who are preventing carriers from selling phones without a contract. Also, you didn't mention that when a customer cancels, yes, they do have to pay $20 for each month remaining in the contract, however, it is capped at $400. I know that's not exactly fantastic, especially since the maximum you had to pay out was $200.

I used to work for Rogers. I'm not defending them. In fact, I've lost a lot of respect for them since leaving in December. But I do wish people would do more research and stop omitting truths to make the subject of their criticism look more sinister.

DiscoRage: I've added the $400 cap to the cancellation penalty, but aside from that (an unintentional omission), I don't see what information you think I'm leaving out in order to make the policy seem more sensationalistic. It does exactly what I say: if you replaced your handset within the year, you can't buy an iPhone, even if you pay out the contract penalty that is meant to cover the carrier's investment in the customer's current hardware.

I also mentioned that by the time such a Rogers customer is able to get an iPhone, the semi-reasonable data package promotion will have expired.

Whether or not Apple allows Rogers to sell the phone without a contract is irrespective to my point (and I suggest that Apple would love to sell iPhones at full price without a contract). Rogers won't even let you pay the subsidy or even a "convenience" penalty to get an iPhone if your handset was lost, broken, upgraded, or stolen within the 12-month period.

That's what happened to me. My phone broke some months back. I bought a new, cheaper one from Rogers (at full price, since I didn't want to lock into a new contract), and now I can't get an iPhone if I want one. That's ridiculous.

Hopefully the negative publicity created by articles like this will cause them to rethink their contemptuous treatment of existing customers.

Not likely, I mean even the big stink over the initial data plans only resulted in a summer grace period to get a halfway decent deal (that is, no lasting changes to policy).

Finally, WHAT IS UP WITH EVERYONE HAVING A HARD-ON FOR IPHONES?!? Buying over-priced, over-equipped gadgets only encourages more of them to be made. And frankly, it's seriously hampering my long-standing desire to get a cell phone the size of a credit card, without colour display and that can talk, text and nothing else. I've got blueprints drawn up already.

I don't understand why you think I can't take the word of sales and support representatives for the company as valid.

The thing is, this is probably *more* accurate than seeking comment from the PR department.

The PR department's job is to spin - iow, lie. When faced with an issue like this, where the optics look so absurd, the PR department wouldn't dare corroborate what the sales and support staff have conveyed, because it looks so bad. So it would simply lie (claiming their staff "misunderstood" or "inartfully" communicated Rogers policy)...and it would only be later, when faced with this same dilemma when actually buying a phone that a reader would realize they'd been hoodwinked by the PR communications.

strangehold (et al.), I e-mailed oft-quoted Rogers spokesperson Elizabeth Hamilton about this exact topic one month ago, following up on a reader's e-mail (the one that Marc alluded to above). She had replied to my previous request for comment on iPhone pricing plans, but she did not respond when I asked her to verify whether or not the policy the reader had complained about—the same one that Marc outlines above—was in place. Marc and I shared all this information long before he did additional research of his own and hit publish.

This may be Rogers' best chance ever to attract new customers, so of course they're going to do everything they possibly can to avoid "wasting" an iPhone on someone who's already on contract.

Rogers' ideal scenario is for every iPhone sale to be a brand new 3-year meal ticket. You can bet that there won't be any easy upgrades to future models, either — if you're an existing customer, you're already on the hook. That's the whole point of the contract model: they can concentrate on attracting new suckers.

Marc is spot on with his facts. I had an infuriating conversation with a low level phone centre hack and then with their supervisor. First I was told by the underling that I just couldn't buy the phone. No explanation. Then supervisor gave me the story that Marc detailed in his post.

Admittedly, I'm not an overly charming fellow when dealing with customer service reps -- there's just something about the whole scripted experience that pisses me off -- but I don't think I've swore that many times in one phone conversation ever.

I've had the same experience with Rogers.

The infuriating thing to me about this is there's such a simple, customer-friendly way to solve this. ATT in the States has an early upgrade program. If you want an iPhone before you're eligible for an upgrade, you pay an extra $200 to cover the subsidy.

So easy.

How interesting that this article turns up today. On Wednesday my house was robbed (while I was asleep upstairs!) and among the stuff taken was my iPhone.

I went down to the Fido store to try and get a replacement and was told the above - I would have to cancel my contract, pay the $400 fee, lose my phone number, and then sign up again for another $250 phone.

I spent all day on the phone, first starting with "Stephan", who was extremely rude and made a number of unsavory accusations against me, and eventually getting told I was fucked.

The really stupid part of this is that my insurance company will likely decline to pay the $400 fee as it is not part of the actual purchase price of the phone, it is a charge on the contract. So I'm out $400 at least.

Apple, whom I also spoke to, were equally unhelpful and offered me a bluetooth headset as compensation for this clusterfuck.

I seriously think we should start a class-action lawsuit against Rogers.

"WHAT IS UP WITH EVERYONE HAVING A HARD-ON FOR IPHONES?!"


People who say things like this obviously have never used an iPhone for a day or else they have no use for a product that offers what it does! Personally it's a great product for my lifestyle. I'm in the film industry and it's wonderful to have my contacts, calenders, email, samples of my movies, photos, and internet at my finger tips whenever and wherever I want!!! What other device on the market does all this with this type of screen and portability. NONE! So if you don't need this device or feel it's unnecessary...don't get one!

I for one love my iPhone and people like Marc who are willing to activate the phone with Rogers for 3 years should be able to get one wether they bought a handset 2 weeks ago or 2 years ago. THIS MAKES NO LOGICAL SENSE!!!!

>What other device on the market does all this with this type of screen and portability. NONE!

RIM's Blackberry. The Palm TREO had functionality on their device (like opening MS OFFICE documents) that Apple STILL doesn't have years ago. Nokia has some comparable products as well.

Don't get me wrong, the iPhone is an amazing device, but to say that NO other phone has these functions with amazing screens and portability is a bit of a stretch.

torontothegreat: The iPhone can open Word, Excel, and PowerPoint documents.

I kinda agree with the comment that people who don't understand why people are so gaga over the iPhone haven't used one (or haven't used one for long). I have an iPod Touch, and while it took a couple of weeks to get used to, the interface is so drastically better and intuitive compared to even the BlackBerry, which comes close in their latest models, IMO. The BlackBerry may be better for many users than an iPhone (especially for businesses), but the iPhone is tops for what it does (and I do think it has the best screen of any phone BY FAR).

In my opinion the Blackberry and Palm screen is not as big or as nice as the iPhone and yes I can read MS office docs on my iPhone. I owned a Palm and I have several friends that have Blackberries and neither compare to the iPhone! The iPhones screen is the best by far and is better for watching vid clips, looking at pictures and web browsing is superb!!!! Also the iPhone OS is by far more user friendly!!! I tried using a Blackberry a few times (my cousin works for RIM) and I was blown away at how ugly the OS is...no thanks. The boys in the financial district can keep it! BLAH!

@jpjd

Yes, I haven't used an iPhone for a prolonged period of time (i.e. owning one?) and have only played around with a friend's. And if you read the description of my dream phone, I think it's pretty obvious I "have no use for a product that offers what it does!"

I'm not in the film industry, have no need to show people movies in places without computers or TVs, am usually never more than 10 minutes away from an internet connection and probably online too much to begin with. I think the iPhone would be too big to carry around in a pocket and if I have to carry a bag I may as well use a small agenda (which is also less breakable and not as big a target for thieves as evidenced above). I also much prefer tactile buttons as opposed to touch screens. I could rant about this indefinitely, but let's just leave it at: you're happy to have one, I'm happy not to.

For sure. It's not for everyone.

here's a script for Fido reps, it pretty much confirms everything this post is talking about:

http://www.cyberbuzz.com/2008/07/09/internal-email-from-rogers-re-iphone/

Best part?
"So if I signed up for a contract a month ago, you’re forcing existing customers to pay the ECF to purchase an iPhone 3G? Seems like you’re treating new customers better than existing ones.

FIDO/ROGERS: We are certainly treating our existing customers very well with the launch of iPhone. iPhone 3G pricing is very competitive and as you’ve read, it’s a heavily subsidized mode

As a comparison, please feel free to break down the charges as follows:

The maximum early cancellation fee is $400, the 8GB model is $199, that’s $599. To compare, that’s the original price of the iPhone 2G and this one is twice as fast.

$599 is also well within the range of a variety of our unsubsidized smartphones today (BB Curve $549.99; Nokia N95 is $689.99)."

also, for anyone who has ever used a PDA/smartphone, just know the iPhone doesn't have copy-paste.

the lack of that little simple feature is totally a deal breaker...

I know it's pretty bad that it doesn't have copy and paste but it sounds like it's coming very soon if you believe the rumor mills ;)

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Copy and paste isn't something for rumour mills, it's something that should be built in by default from the very first prototype.

> torontothegreat: The iPhone can open Word, Excel, and PowerPoint documents.

Sorry I meant to say, you can't edit them. All you can do is read them.

However, if they can open MSOffice docs now, that's newer.

>it doesn't have copy and paste

wow, look at that superior technology! Now you see why you guys sound like fanboy/girls? I mean copy/paste was only invented in 1974 :P

There is also no filesystem explorer (Finder). Makes finding things a bit strange, I have to leave everything in email. Or have they improved that as well?

I still prefer my blackberry, hence why I gave up the iPhone

Have either one of you actually ever USED another comparable device? Blackberry, Nokia, Palm?

With the intro of the iPhone I have something further to say about Rogers... given my past experience/s with Bell, I see Rogers becoming the same model of money-grabbing, minimum-service, blame-the-customer, more-than-the-market-can-bear monopolist as the Bell/Sympatico group.

I do NOT feel the need for an iPhone, but I have had a cellphone account with Rogers for the last four years, and have purchased my own auto-select quad-band phone so I can use it whenever and wherever I travel.

About a month ago suddenly the message waiting icon stayed on my screen after I had cleared my messages. I tried to contact Customer Service/Tech Support througn the Internet, but after 20 minutes of scanning FAQs and escaping the never-ending loops I eventually got to send a message, which response (a week later) told me to call Tech Support.

I was passing a Rogers store, so I gave it to them to work with and, after 20 minutes, they could not make any difference after 20 minutes of fiddling and gave up.

I called Tech Support twice, going through the usual interminable "Press X for..." menus, first gave up after 20 minutes waiting, the second spoke to someone after nearly 30 minutes (in the middle of the night).

he told me firmly - without checking anything at his end - that it could not possibly be Rogers' message server, that it had to be my telephone's problem. He said he was not familiar with the model (Motorola V180) but somewhere in the menus I should press a 3 or a 4 or something like that, and it would be explained in my manual.

Well, there's nothing in the manual. In the Settings menus I switched off the message waiting icon, took the battery out of the phone, put it back in, turned on, and no icon - until it checked in with the cell account and message server - then the icon came back. I checked my messages, no messages are there, all deleted.

So, according to Rogers - as it has been with Sympatico before them - my technical problem could not possibly be their fault, and my message waiting icon remains on (as soon as I turn on and it checks with the message server, that is).

I'm computer literate - a Diploma in Programming and Systems Analysis, a current part-time webmaster, and I used to build and repair computer hardware - but there's no end in sight for my problem as far as Rogers is concerned.

I now trust Rogers as far as I trust Bell (= zero). As far as I am concerned, Rogers will now raise their prices and rates at every opportunity, not necessarily giving due notice for screwing over their customers.

Rogers seems to be getting as fat, lazy and greedy as Bell, and I'm now looking for a different provider that may offer the same or better service with the same phone number in the Toronto area.

Suggestions, anyone?

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