I was looking through your past posts. Great job there….

Rogers under fire over iPhone rates

Carrier will charge more to use device in Canada compared to price plans AT&T offers in the U.S.

By Chris Sorensen

Wireless giant Rogers Communications Inc. continues to be buffeted by rumours as it prepares the Canadian launch of Apple Inc.’s much-ballyhooed iPhone on Friday.

With criticism of its iPhone rate plans simmering for over a week in some quarters of the Internet, a high-profile website that focuses on Apple gossip took things a step further yesterday when it claimed Apple was “disgusted” with Rogers’ approach and is responding by shelving plans to sell the iPhone in its Canadian Apple stores.

But it’s not clear whether Apple actually planned to sell the iPhone in its Canadian stores in the first place.

Unlike the United States, the iPhone is not available in Canada without a contract through Rogers or its Fido subsidiary.

“Apple stores don’t have our activation systems and it needs to be purchased with a plan,” said Rogers spokesperson Liz Hamilton.

She added that Rogers would announce retail availability today that would be “unchanged from our original distribution plans.”

A representative for Apple in Canada declined to comment about claims the two companies were at odds over the iPhone’s Canadian pricing. Apple’s Canadian website indicated yesterday customers will only be able to buy the iPhone at Rogers or Fido stores.

Earlier this month, Rogers unveiled iPhone rate plans that began at $60, plus fees and taxes, for 150 minutes of weekday talk time and 400 megabytes of data.

While that’s cheaper than existing Rogers plans for competing devices such as Research In Motion’s BlackBerry lineup, it’s not as generous as the plans offered in the U.S. by AT&T Inc.

Some prospective iPhone buyers have voiced their displeasure on a Web-based petition that, as of yesterday, claimed more than 50,000 signatures, although its impossible to know whether they are all from Canadians.

Industry insiders say Rogers may have misjudged the public’s mood, but the dust-up is unlikely to have much impact on iPhone sales.

One of the difficulties when it comes to evaluating the value of the Rogers plans is the lack of a clear standard when it comes to determining how much data the average iPhone user is likely to burn through.

The iPhone’s focus on mobile Web browsing and multimedia make it more data hungry than most cellphones, but even the entry-level 200 megabyte plan would allow subscribers to view between 1,400 and 3,400 Web pages a month.

John Henderson, an analyst at Scotia Capital, said in a recent research note that most iPhone users won’t come close to exceeding their data-usage cap.

I’m curious what web pages these people are loading to get 1,400 – 3,400 web pages a month. One page alone on my blog takes about 1MB of gzipped files… That would work out to 200 pages a month provided that’s all the data you use (no email, no YouTube video, etc.) Hm.

iPhone expected to spark wireless data sticker shock

Small print, unexpected charges can lead to huge bills, unhappy users

By Gillian Shaw, Canwest News Service

The imminent arrival of the iPhone in Canada has unleashed a storm of controversy over the country’s high wireless data rates and left consumers bewildered by an array of offerings that – if misunderstood – could leave them with a monthly phone bill higher than the cost of a house in Saskatchewan.

[...] critics say the current hodgepodge of data pricing, beset by small print and unexpected charges, can only lead to more such digital disasters as the iPhone entices more Canadians to embrace wireless data services.

“We’re getting piles of complaints,” said Bruce Cran, president of the Consumers’ Association of Canada. “We’re classifying this as another ripoff of Canadian consumers. Why we are getting this totally inferior deal to what they are getting in the United States doesn’t make sense.”

Bell Mobility appears ready to capitalize on the boycott of the iPhone and Rogers that some consumers are promising, announcing the Aug. 8 introduction of the Samsung Instinct smartphone. Instinct users can get a $10 unlimited mobile browser plan from Bell for Internet surfing and e-mail. [...] With the Instinct selling for as low as $149.99 and customers able to get a voice package with unlimited data for as low as $40, Bell is aggressively undercutting Rogers’ iPhone offerings that start at $75 for a voice with 750 megabyte of data plan and top out at the heftiest two gigabyte plus voice plan for $115.

“They (wireless carriers) deliberately make it very difficult to make comparisons,” said Cran. “To be safe you really need to have an unlimited plan.”

In the U.S., where AT & T is the network that carries the iPhone, customers can get unlimited data at a flat rate with prices that vary depending on the number of voice minutes, starting at $70 with the top plan $110. In Canada, iPhone users will have to know how many megabytes the websites they are cruising amount to, how much watching a one-minute YouTube video will cut into their data allotment or if those holiday snapshots from well-meaning relatives are going to put them over the edge.

[...]

Cran also points out that users will have to pay for spam that doesn’t get filtered out. “This is totally gouging Canadians,” he said.

[...]

And a similar report on Macnn.com #

…and also on Fortune @ CNNMoney.com

Popular iPhone debuts this week

By Michael Geist

More than one year after the Apple iPhone hit store shelves in the United States, the hugely popular device makes its Canadian debut on Friday.

The arrival of a Canadian iPhone is expected to generate long lines at Rogers Wireless stores, though the prelaunch publicity has not been particularly smooth for the company. Its announcement of iPhone service pricing set off a wave of online protest, as consumers noted the absence of an unlimited data plan, higher prices and longer contractual commitments.

The Rogers offer is not particularly surprising. Canada ranks toward the very bottom among developed countries for cellphone usage as the lack of competition leaves Canadians with some of the highest prices for wireless services in the world.

Indeed, Rogers has a monopoly on the iPhone since it is the only Canadian carrier currently capable of carrying the device.

Most of the public criticism has focused on the uncompetitive data rates that render it difficult to maximize the iPhone’s potential.

Yet the bigger story is how the Canadian version of the device features a triple lock that is the result of onerous contracts, technological locks and a legislative proposal from Industry Minister Jim Prentice that simultaneously locks consumers in, while locking the competition out.

The effect of locking out the competition is striking since recent Canadian policy has emphasized the need to provide consumers with greater mobility and choice.

The government has introduced wireless number portability that theoretically allows consumers to switch providers but retain their phone number. It has also conducted a successful spectrum auction that may yield future competitors.

In spite of those efforts, the Rogers release of the iPhone is the poster child for how these policy initiatives have failed.

The first lock on the iPhone is the contractual lock-in that comes from a mandatory three-year contract. This is the longest mandatory contract for the iPhone in the world and it comes with huge penalties for consumers that seek early termination. While the contract guarantees Rogers a steady three-year revenue stream, it also means that for most consumers the actual cost of the iPhone is at least 10 times the $199 sticker price.

This contractual lock is a direct result of the absence of competition and government inaction. In the United States, AT&T (the exclusive iPhone carrier in that country) has announced plans to offer the option of purchasing an iPhone at a higher price with no long-term contract attached. South Africa has gone even further, recently enacting regulations that limit cellphone contracts to a maximum of two years.

The second lock is a technological one that restricts the device to the Rogers network (and Rogers-approved roaming partners). This provides Rogers with another guaranteed revenue stream for consumers who wish to use their device in other countries and effectively locks consumers out of wireless number portability should a GSM competitor enter the Canadian market. While Canadian law remains silent on this issue, other countries, including France and South Africa, have mandated that carriers offer consumers the option of an unlocked device.

The third lock involves a legal lock against unlocking cellphones. Ironically, while other countries use laws to unlock consumers, Prentice has proposed locking them in. Bill C-61, tabled just prior to the summer recess, would make it a violation for Canadians to unlock their cellphones and bans the distribution of software programs that could be used to do so. The United States has recognized the need to specifically exempt cellphones from locking provisions, yet months after claiming to prioritize consumers interests, Prentice’s bill is silent on the issue.

Many Canadian consumers will undoubtedly overcome the sticker shock that comes with a phone that requires a financial commitment that runs into the thousands of dollars on Friday. However, lurking behind the cost is a “made in Canada” triple lock that seems unlikely to be broken.

Michael Geist holds the Canada Research Chair in Internet and E-commerce Law at the University of Ottawa, Faculty of Law. He can reached at mgeist@uottawa.ca or online at http://www.michaelgeist.ca.

And…

Global TV’s iGouged on YouTube:

North of Northeast: Oh, Canada! Rogers drops the bomb

I’ve said a couple times on my blog that it seems like Rogers is purposely trying to screw Apple by making the iPhone flop in Canada. They keep making the plan worse and worse – $1100 cancellation fee? $50 fee if you change your plan at any time to a plan that is less than $30/month?… I mean, c’mon! That’s the only rational explanation I can muster up… Maybe they are partnered with another cell manufacturer and are trying to sabotage the iPhone? Wouldn’t surprise me.

As much as I want the iPhone here in Canada, I would not think any less of Apple if they pulled the plug on Rogers and cancelled their contract with them. If the terms of the contract allowed it, that’s what I’d do. Apple has created a revolutionary device but instead of embracing change, Rogers is forcing Canadians to limit their usage and find ways to maneuver around their imposed limitations (like only using wifi)… How can you fully experience the device like that?

Right or wrong, people will associate Apple with their huge data bills from Rogers. That’s the way it is. Unfortunately, Apple is at the mercy of Rogers to create a positive experience for users of the iPhone. And so far, it’s building up to be extremely negative. I’d pull the plug.

As bad as these plans are for us Canadian consumers, remember it’s even worse for Apple. Rogers is setting up the Canadian consumer to NOT use these features… If the iPhone is to be successful, people have to feel unrestricted and unafraid to use these features. Apple needs to get as many people as possible to use as many features on the iPhone as possible. They have to set themselves apart from the Nokias and Motorolas and Blackberrys, etc. But how can they if Rogers won’t let the consumer do it without ridiculous terms and overage fees? The iPod would never have been successful if MP3s cost a fortune… People were never afraid to use an iPod or iTunes feature…

I understand that the iPhone is the highest subsidized phone Rogers has ever sold. I also understand that Rogers is in the business to make money. Rogers can take advantage of the situation, like any other business would do, to maximize their revenue. No problem.

The problem is, they are taking advantage of the *consumer*, and so much that it has made iPhone ownership to be extremely unattractive.

I suspect a lot of it has to do with Rogers’ resistance to change.

The iPhone is a data intensive device and forces cell companies to do business differently as a result. Data usage this high is uncharted waters for Rogers and they are afraid. Of course they are. The trouble is, resistance to change never works.

Rogers is trying to force consumers to use the iPhone in a way that doesn’t require them to change too much too quick and in a way that keeps things to their advantage. Instead, I would suggest to Rogers that they need to accept that times are changing, like it or not. They can still profit from the iPhone and make things work to their advantage, all the while giving consumers “reasonable” rates and terms. If they were to shift their focus to be more embracing of the technology and changes that are happening, they will ensure longer-term profitability.

These ridiculous rate plans, and outlandish terms are very near-sighted…

What do you think?