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Phone plans Are Outrageously expensive

Kurtis
Neighbour

So i recently have changed work locations to somewhere where there is No WIFI. I am there for 2  weeks at a time. So i go through data. i have 2gb right now but iblow through that fast. telus wants me to pay at least a $100 a month for a plan that has 4gb or more . i have friends and co workers with plans that they pay $60-$80/month and have 6gb. i understand that these were promotion plans . but thefact that at one point they thought that was a good businees decision and would still yeild them a profit , makes me think they could still offer plans like that. Instead Telus and every other provider all seem to get together and make all the plans the same. Bells are the same , rodgers are the same, its absurd.  

1 ACCEPTED SOLUTION

I think most people forget that over the last 5-10 years, what you can do on a cell phone has changed dramatically but the expectation around the monthly bill is that it stays the same (which is unrealistic).

 

10 years ago paying $25-30/month for a cellphone that could basically talk & text was the norm.

5-6 years ago Blackberry's were the most popular phone and you could talk, text email & browse (very limited), people were spending ~$50. You get some minutes, text and a small bucket of data

2 years ago and iPhones are the norm, most customers are paying ~$60-65 for a decent bucket of data (500MB - 1GB) and lots of minutes but can now stream music,  browse the internet, shop, play games, etc. with their phone.

Last year, CRTC removed 3yr contracts which drove prices up, slightly more data included. Customers are now paying $75-80 but can get a discount for additional people on your account.

 

Seems like a fairly natural progression to me (excluding the last one, thank the government for that though).

 

Yes Canada does have higher Wireless prices than elsewhere in the world but we also over-index on GDP per capita & purchasing power, as well as include subsidy in the cost of the plan (see: Europe).

 

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20 REPLIES 20

tsizzle
Leader

You've aluded to exactly why they don't offer them to all customers at all times, they were a short-term promotion that Telus offered (and others) but clearly were not happy with the profit margin on - which is why they removed them. Telus is a for-profit organization with shareholders than demand constant growth & return on investment, they are not a charity nor claim to be a non-profit. If they kept prices the same despite contracts going from 3 years to 2 years, they would be putting these objectives in jeopardy. 

 

Don't assume that because they did something a few times it was something that was sustainable for the business year-round. Its a bit like car manufacturers heavily discounting the previous years' model right before & after the new version comes out, yes they are still making money/profit but not to the level the organization is happy with (or they would always be that price). 

Kurtis
Neighbour

 I agree and understand that. But the fact we as Canadians pay some of the highest phonebills , internet bills and cable bills , leads me to beleive that other countrys are able to provide reasonable rates and still profit. I feel like the big 3 mobile providers in canada gauge us all. Because if my rates are so high for maitenance and upkeep, and building a better network , shouldnt the prices eventually come down? 

I think most people forget that over the last 5-10 years, what you can do on a cell phone has changed dramatically but the expectation around the monthly bill is that it stays the same (which is unrealistic).

 

10 years ago paying $25-30/month for a cellphone that could basically talk & text was the norm.

5-6 years ago Blackberry's were the most popular phone and you could talk, text email & browse (very limited), people were spending ~$50. You get some minutes, text and a small bucket of data

2 years ago and iPhones are the norm, most customers are paying ~$60-65 for a decent bucket of data (500MB - 1GB) and lots of minutes but can now stream music,  browse the internet, shop, play games, etc. with their phone.

Last year, CRTC removed 3yr contracts which drove prices up, slightly more data included. Customers are now paying $75-80 but can get a discount for additional people on your account.

 

Seems like a fairly natural progression to me (excluding the last one, thank the government for that though).

 

Yes Canada does have higher Wireless prices than elsewhere in the world but we also over-index on GDP per capita & purchasing power, as well as include subsidy in the cost of the plan (see: Europe).

 

Agreed, you can get yourself a prepaid phone for $20/month if you are willing to give data like years ago.

 

However, I remember when data was $100 for just 2mb.  What we have for gb's is ridiculously cheap!

wally_west
Ambassador

Hi, I have to agree, every comments here is true. After 15 years working in a area close to mobile services, I can tell you that the reality is not the same. First, we need to understand that we live in a big country with a small population, compare to any major countries in the world. So it's expensive for the big 3 here to cover such a major territory since they don't get the same amount of revenue. More people=more money=more money= better/faster networks and also, lower rate plans. We have a great network here but allowing free data would slow it down. 10 years ago, we were happy to be able to send a text using a phone. Now, some people are unhappy because they can't watch Youtube all day long. Also, the manufacturers are not lowering the prices on the hardware (1000$ for iphone 5s 64GB) so it make sense to have more expensive plans, to cover the fees on the devices.

Kurtis
Neighbour

Ya Canada has about 3.5 people per sq.km  as to europes like 30 or more per sq.km. i get all of that. and every point that everyone else has made. what frustrates me the most is say i go over 1gb its $10, no biggy, but then go over 2 gb and its $50, why is there such a variation in price , i understand its " putting more burden on the network " but a %500 increase is a bit ridiculous and I know its in the contract that I signed, but every provider is the same. My whole point with this thread is the cost of data , I strongly beleive that since the big 3 are the only ones with towers and networks acrosss canada they have created a monopoply and arnt willing to lower prices .  I posted in here because Telus old me to share my thoughts. 


 

All the posters agreed, that a monopoly leaded by the [Rogers,Telusters & Bellers] is in place. They faked attacks -each other- on public for competency issues, but when it comes to setup 'plan rates' are united,.Well, let's get united too to defend our right to cheaper "Data-usage" Hehee! 

 

A big % of users, blame "CRTC" for the "Data-extra charges" others defend the 3mayor cell-Telecoms it has no choice, than higher the 'Rates' to recover of what? (2yrs-contract) subsidizing the cell$/cost..I don't buy this 'Ad'  when they secretely can dealing, with Phone factories to lower devices' price.

 

 Imaging -How come in your PC's- you pay a bill of $45-55,.n' users get 100 GB's +more, with no overage charges at all. Question to 'Techies' why ['Data' is so expensive in a cell, but cheap in a PC?]..PS emit your opinion soon.. Bye  "v9"

 

 

@v9-12 yrs.Telus mobile user & Ex-BC Tel cable installer.
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NFtoBC
Community Power User
Community Power User

@v9 wrote:

All the posters agreed, that a monopoly leaded by the [Rogers,Telusters & Bellers] is in place. They faked attacks -each other- on public for competency issues, but when it comes to setup 'plan rates' are united,.Well, let's get united too to defend our right to cheaper "Data-usage" Hehee! 

 

 

 


Not sure that the posters above agreed with this statement. 

 


@v9 wrote:

 

 

 Imaging -How come in your PC's- you pay a bill of $45-55,.n' users get 100 GB's +more, with no overage charges at all. Question to 'Techies' why ['Data' is so expensive in a cell, but cheap in a PC?]..PS emit your opinion soon.. Bye  "v9"

 

 


Same reason water costs pennies per 100 litres coming out of your kitchen tap, but $2.00 (higher than gasoline) when in bottles at the 7-11. The infrastructure to deliver landline-based internet over existing infrastructure is far cheaper than building maintaining and upgrading the fast moving technology in Wireless. In the 15+ years I've had my ADSL, there has been one bump in speed technology (soon to be another), but Wireless has gone through about 5 different technologies. 

 

If you connect your PC to Wireless networks, your data is as expensive as on a Phone. If you choose to connect your phone to only Wi-Fi, and many do, your data charges are as cheap as you describe.

 

NFtoBC
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@-NFtoBC (Can't change Ur 'Nick' isn't it😞 Ok chief not everybody agree, with "v9" statement above, but you got agree on something, with the above posters dwo. The "Data" sell it by the 3Giants is becoming un-affordable (y/n) So as top 'Author' what's the wise solution for this issue?

 

I totally agree with "Tzissle" and other commenters that, nothing can be static is a fact [Phone, hydro, rent, gas,.etc] goes up ea year, due to the so called inflation. You provided an answer as to why "Cellphone rates" are more expensive than 'Landlines' For infrastructure cost, other reasons, PS explain.. Hot greetings!  "v9"

@v9-12 yrs.Telus mobile user & Ex-BC Tel cable installer.
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NFtoBC
Community Power User
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@v9 If you wish to continue to mock my attempts to provide you reasoned information, I am happy to stop. 

 

NFtoBC
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Relax-NFtoBC: I just reply at your last post, about observations done at my comment. Let's try to guess what, didn't like you, from my script. I'm from BC-Van.CAN..bother you why, don't adopt the "BCtoNF" as 'nick' just joking man!. I asked you to come up with a fix to [Extra data charges+Why infrastructure is a factor]-easily you can answer it.

 

When it comes to determine the cost of (Cellphones+Landlines) in any moment, tried to 'Mock'  the content of your posts. On the contrary I feel proud, when recently you were the only contributor, who replied in "French" to a new member question. So cool off and demonstrate to the membership, that you can handle odd comments successfuly. Bye for now  "v9"

@v9-12 yrs.Telus mobile user & Ex-BC Tel cable installer.
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Nighthawk
Community Power User
Community Power User

@NFtoBC wrote:

@v9 If you wish to continue to mock my attempts to provide you reasoned information, I am happy to stop. 

 


Just ignore him. I so far haven't found any of the "jokes" he writes as funny.

 


@v9 wrote:

Relax-NFtoBC: I just reply at your last post, about observations done at my comment. Let's try to guess what, didn't like you, from my script. I'm from BC-Van.CAN..bother you why, don't adopt the "BCtoNF" as 'nick' just joking man!. I asked you to come up with a fix to [Extra data charges+Why infrastructure is a factor]-easily you can answer it.

 

When it comes to determine the cost of (Cellphones+Landlines) in any moment, tried to 'Mock'  the content of your posts. On the contrary I feel proud, when recently you were the only contributor, who replied in "French" to a new member question. So cool off and demonstrate to the membership, that you can handle odd comments successfuly. Bye for now  "v9"


 

@v9, your comments are not coming across as odd. The comments are appearing more like personal attacks. Not jokes.
Please try to provide useful information or questions to the conversation. It will benefit everyone. You may even getting some of the Likes you want.

 

Here are some ideas why cellular is more expensive.

  • Large number of users sharing the connection on one tower. Amount of available bandwidth can only handle so much.  It's worse in more heavily populated areas.
  • Costs to upgrade the cellular network (LTE, 4g, 5g, etc) are larger than landline because the towers are spread over a massive area. VDSL is available in smaller areas, can offer more bandwidth usually for less and the potential for speed increases as fiber is rolled out will help. Plus the existing copper infrastructure makes it easy to roll out.
  • Profit margin. It's higher than the carriers want to let on. (Hint: Find out what their employee plan costs and yes they still apparently make some money on that)

As you asked @NFtoBC , do you have an easy fix for this issue?


If you find a post useful, please give the author a "Like" or mark as an accepted solution if it solves your trouble. 🙂

Thanks 'Nighthawk' for became the NFtoBC- spokesperson, you're doing well on your new roll, isn't it. You at least provide to the membership 3-reasons, why (Cellphones equipment - cost more than landlines) useful reply dwo.

 

So you don't find 'Funny' any joke, well - I've to admit that I introduce it here & there a humoristic note. Other than that I respond the question directly, without siding with TELUS or prop another, contributor to get help in return.

 

The forum veterans, declared a cold war to "v9" dis-approve my posts +take the minor opportunity to throw insults and other expressions, suppose not allowed in a forum, but those who enforce the rules, turn a blind eye. <Bye>  "v9"

 

 

  

 

@v9-12 yrs.Telus mobile user & Ex-BC Tel cable installer.
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If you actually take a look at the websites of major foreign carriers (ex: O2, Vodafone, Telstra, T-Mobile outside of the US) they all charge VERY comparable rates for the included bucket (typically $60-90 for a plan with 1GB and a fully subsidized smartphone) + $30-50/GB for overage. 

 

You may disagree with what you are being charged, however it is not out of line with the rest of the world. Additionally, the reason they do this with overage is to ensure you actually pick the right data bucket or adjust to it later on vs. taking a minimal bucket of data and running into overage (also makes your bill more predictable, benefit to YOU) every month.

NFtoBC
Community Power User
Community Power User

@Kurtis wrote:

 I posted in here because Telus [t]old me to share my thoughts. 


 Interesting, as the description of the Neighbourhood on the main web page is: "TELUS Neighbourhood is the place to share ideas and find answers to questions." I hope their staff are not using this as a space to direct disaffected customers, but rather handle that through an appropriate customer relations process. The opportunity for the memebrs of this community to offer solutions and comments OUTSIDE those which Telus employees may be able to offer is one of the strengths of this community. 


 

NFtoBC
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when i said telus "told me " i meant I seen an ad asking me to share my thoughts on telus neighborhood. 

I went to the local Telus store yesterday looking to update our phones and asking about plans and costs.  They were absolutely ridiculous according to what I have had quoted from other companies and the representative blamed it on the new government regulations.  I had a hard time accepting that information as legitimate because of rates quoted from other companies.  We've been Telus customers for past 9 years because of the rates and we are now rethinking that.  We still have to renew for 2 years to obtain the phones, plus with the new phones come exhorbitant rates.  Our plan is an older one and I was told they couldn't offer anything coming close to what we're paying right now.  So, old phones and an old plan is what we're doing for now.

Nighthawk
Community Power User
Community Power User

Please do tell which other companies you talked to with the much cheaper rates. Every one I've talked to is quoting me almost identical rates for a new phone/plan.


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NFtoBC
Community Power User
Community Power User
Thanks for the clarification @Kurtis

NFtoBC
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xl
CPU Alum
CPU Alum

When making comparisons... don't just look at price....

  • do they have the same coverage. Many cheaper carriers will charge roaming IN CANADA once you leave the city core
  • cheap carriers work great outdoors, but offer no service indoors in office towers, shopping centres and apartments
  • are these cheap carriers in financial difficulty that may be gone in a few months as their business plans are unrealistic and unsustainable?
  • are these cheap carriers offering 4G LTE or slower 2G technologies
  • are these cheap carriers re-investing with better coverage, or are they only interested in serving the existing urban core at a discount while you are outside?
  • will cheap carriers offer service in a subway? Telus does in Vancouver.
  • are these carriers building to offer wifi zones like TelusDirect in the near future this can reduce your data charges, but offer you great speed?
  • do other carriers offer to bundle your phone to your cable service for additional savings?

Also why do other carriers work so hard to increase complaints, while Telus is reducing theirs?

http://business.financialpost.com/2013/11/08/what-is-telus-doing-right-users-flocking-to-telco-and-h...