Tuesday 23 July 2013

Cellular Vendors Introducing Two Year Contracts

The incumbent cellular vendors are getting a jump on the new CRTC Wireless Code which comes into effect in December of this year, 2013, and the two year contract provisions the Code contains.

Even while they fight some of the Code’s clauses in Federal Court, they are introducing 2 year contracts over the next few weeks.

For vendors offering full local service in the Algoma District, the following dates apply:

a. Bell - July 17
b. Telus - July 30
c. Fido and Rogers - August 9

As of this date of writing, there is no indication if Tbaytel will adopt the 2 year model but I would be extremely surprised if they did not.

If anyone is in the market for a new cellular phone, one might want to check out the new rates as well as the terms and conditions.  There are adjustments to the price structure, especially in the amount if the upfront payment required. Not all phones are available with a two year option at this time.

Also, the “tab” concept appears on its way to becoming the preferred method of subsidy payback. As I understand the concept, instead of the customer paying a large onetime fee upfront, the non-subsidized amount is spread out over the length of the contract at a monthly rate. There are numerous variations of the concept and users should take care to ensure they understand the concept for the contract they are signing. 

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