July 7th, 2008

Did Rogers Get the Apple Shaft?

iphone3g.jpgBy Michael Santo
Editor-in-Chief, RealTechNews

As I wrote earlier, Canadians are up in arms over the prices of service plans that Rogers has set up for them upon the launch of the iPhone 3G. It’s led to petitions, a website, and even editorials telling Canadians to hold off on buying the iPhone 3G.

Now reports from the web are that Apple has severely reduced the allocation of iPhone 3Gs due the Canadian carrier Rogers. While this is so far based on a single blogger’s “inside information,” it does make sense, but perhaps not for the reasons given in the post.

It should be noted that a Rogers representative contacted me via email after my original post, making sure that I was aware of the additional choices available to customers. This was sent to me on June 30th, so it’s not a change in direction for them based on the above news.

Rogers customers have more choices available to them and can use their existing voice and smartphone data plans if they wish. For example, they can select from the new data pricing (ranging from $30 for 300MB to $100 for 6GB or $50 Flex Rate plan) and add a voice plan, or they can choose a combined voice and data plan to best suit their individual needs.

Customers are not required to take the value packs, and can order most other features a la carte, such as $7 for Caller ID.

Existing customers can keep their existing voice service plan and pick a separate data plan (not in the iPhone 3G bundle) to meet their needs.

Sure, the prices are still very high, and people basically want unlimited data in the price range of the U.S. (or less). Rogers doesn’t seem to think people want to be able to browse as much as they want, without limits, telling me:

With regards to an unlimited plan, Rogers believes that unlimited plans could end up costing customers more for what they don’t use. Rogers’ iPhone 3G plans will more than accommodate the vast majority of customers.

Sounds like some ISPs’ view of hard caps on broadband service in a way …

However, while some around the web seem to think that this rumor (still unverified, of course) is an attempt by Apple to show Rogers who’s boss, it’s more likely that looking at all the reactions to Rogers’ pricing, Apple has simply decided to re-allocate supply, based on perceived poor demand.

That would make sense, a business case rather than a slap against Rogers. And hey, if it gets more iPhone 3Gs into our hands in the U.S., I’m all for it, though I’m definitely against Rogers’ pricing. Will Rogers change its pricing before Friday? Readers?

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3 comments to "Did Rogers Get the Apple Shaft?"

  1. David D. says:

    Will Rogers change its pricing? No, it probably won’t. Will it change its pricing before Christmas? Probably. Will we ever see any ‘unlimited data’ plans comparable to those available in the US and elsewhere (and from Telus/Bell)? Well, it depends on whether Rogers’ arrogance costs them any customers.

    When you read a sentence like this, you have to laugh:

    “With regards to an unlimited plan, Rogers believes that unlimited plans could end up costing customers more for what they don’t use.”

    If you offer an unlimited data plan for $30 (which is in keeping with AT&T’s pricing, among others), that unlimited plan would not end up costing customers more for what they don’t use. In fact, it would cost customers less than what Rogers is offering now.

    Rogers just refuses to see that, so they can make mealy-mouthed statements like the quote above without even breaking a sweat. That’s what happens when you have a GSM monopoly.

    July 7th, 2008 at 7:56 am

  2. Richard S says:

    Bell and Telus both have introduced unlimited internet bundles since Rogers announced their iPhone pricing.

    I originally was going to get an iPhone but not with Rogers current rate planes. I’ve decided to wait it out and see if Rogers matches what Telus and Bell are offering.

    I currently have an HTC TyTn on Fido (no contract) which I like but it’s a little bulky. If Rogers doesn’t change their rates by years end I’ll probably stick with HTC and move over to Telus and get the Diamond.

    July 7th, 2008 at 8:50 am

  3. FRogers says:

    The re-routed iPhones to Europe seems to be true.

    Various Rogers stores are now being contacted and told they will not be carrying the iPhones, on the release date.

    If you really want one, go to the 330 Bay or 130 King W locations in downtown Toronto. They will carry the lions share of iPhones. (Couple hundred each)

    July 7th, 2008 at 7:45 pm

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