Why doesnt my current device balance go down after the contract is up?

[cdpage]

I understand that contracts are so high because they comver the cost of the phone.  they are higher still now because contracts are only 2 years.

But why then does my bill not go down after the contract is up? 

ie I have an iPhone4. it's payed off. i still pay $55 more to the point. If i Buy a new phone, i can pay $50 for a substandard plan, or keep my $55 plan which is a better plan.

Which begs the question, Why are you still charging me for my iPhone 4?

[xray · Accepted solution]

I understand your frustration, I'm in the same boat soon with my wife's plan.

However, I don't think of it as a penalty as much as the price I pay for a "lay-away plan" for the phone and locking in the plan price. As you may or may not know, the current BYOD plans are more than your $55 plan so think of it as a discount to the current price. There is no free lunch with any of the carriers. 🙂

[xray]

Your device balance should be zero at the end of your contract. Your monthly bill is not directly related to your device balance so you will not see any change.

At the end of your contract you are free to change your plan or terminate it without penalty when your device balance is zero.

That's how it works but IMO that's not how it should be. Ideally the device portion of the monthly charge should stop once the device balance is paid so essentially you are paying the BOYD amount. However, if you are paying $55 then I'm guessing there was no such thing as a BYOD plan at that time.

Your choice now is to switch to the BYOD plan that is currently available or continue with your $55 plan.

[NightWing-Robin]

Listen to the frog... err... Xray! He/she knows what he/she's talking about.

[cdpage]

thanks xray,

you are right, i don't have a "device balance" any more. I just don't understand why I am still paying for it. 

It makes perfect sence to have a Penalty System for anyone who wants to cut their contract...(it pays off the rest of the phone balance, and keeps their customers longer). So as a good customer, I stuck to my contract.

Now my contract is up, yet I get penalized anyway...

Why kind of insentive is that? 

[xray · Accepted solution]

I understand your frustration, I'm in the same boat soon with my wife's plan.

However, I don't think of it as a penalty as much as the price I pay for a "lay-away plan" for the phone and locking in the plan price. As you may or may not know, the current BYOD plans are more than your $55 plan so think of it as a discount to the current price. There is no free lunch with any of the carriers. 🙂

[Jaxon]

I'm in the same boat.   My family and I have 4 phones, one is up, and two more are up next month.

I hate it when a company uses illogical pricing structures.  I fully understand that the capital cost of the phone needs to be paid, and this is done over the length of the contract.   If I left the contract early, I would have to pay the device balance, which I'm fine with.    Once it's been paid, however, there should be a reduction in the on-going monthly billing, as that capital cost has been fully paid.

Not only is it frustrating, but it is environmentally unfriendly to throw out perfectly good phones that work well.  Sounds like my best option is to go down to Telus, get a new contract and a new phone, but instead of activating it, take it and sell it off.    Completely illogical.

[NFtoBC]

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@Jaxon wrote:

I hate it when a company uses illogical pricing structures.  I fully understand that the capital cost of the phone needs to be paid, and this is done over the length of the contract.   If I left the contract early, I would have to pay the device balance, which I'm fine with.    Once it's been paid, however, there should be a reduction in the on-going monthly billing, as that capital cost has been fully paid.

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You can choose a Your Choice plan with the BYOD option, however, you may find your current plan a better value.

Not only is it frustrating, but it is environmentally unfriendly to throw out perfectly good phones that work well.  

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You can thank the CRTC for that one - they decreed that 3 year contracts cease, and be replaced with 2 year contracts. This has had the result of increased contract prices, and more churn of phones.

 Sounds like my best option is to go down to Telus, get a new contract and a new phone, but instead of activating it, take it and sell it off.    

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You could also sell your current phone to someone who wants a lower priced model, and keep the shiny new one yourself. All of my used phones have been passed along to a happy recipient, all of whom simply wanted a phone with few bells and whistles.

[HockeyMum]

Have you seen how many phones are for sale on Kijiji, that's likely what a lot of people are doing.

[wally_west · Accepted solution]

Hi cdpage, you should call Telus, I'm sure that if your contract is up, they'll be able to do something about your monthly rate. 

[Jaxon]

Nope.  Tried that.

[Mobility_Princess]

Well said xray! Basically exactly what xray said. The Canadian telecommunications market is so competitive that plans are constantly changing. Depending on the date you received your plan and what we have now, your plan may be better the way it is versus an in market bring your own device plan. It used to be 2 years ago that you would downgrade from the Share 55 plan in during a contract to a $40 plan when our contract was done for the exact same thing. Because the CRTC got rid of 3 year contracts, which is what consumers were asking for, but the cost of the phones have only risen the price plans have gone up. We have a very unique market in Canada as well, because we have so few people 35 million, and a huge amount of space with one of the best coverage networks in the world. That's why plans are so expensive in Canada compared to say Europe. We only have so much population to pay for our networks but, we need to maintain and build so many new towers it's extremely expensive. You could call Telus and find out what the current plans are compared to your current plan and see what's most advantageous to you. You could also just look on the site under plans and compare your own plan when you log in to Telus my account.