SMS Alert: Class Action Suit Filed Against Bell, Telus

Bell and Telus announceed earlier this month that each would begin charging customers without a packaged plan for received text messages in addition to sent ones. The decision has now spurred a class-action lawsuit by a man in Quebec who says the change requires a change in the terms of one's contract.

If you're signed up with a locked in agreement with either carrier, and have selected your desired plan option, the Quebec man is arguing that the carrier is not permitted to change the terms of said plan until the contract has ended. Charging per text message received is a new condition to the plan. Customers from both carriers, as well as GSM carrier Rogers Wireless, have always paid to send text messages.

The charges don't apply to people who already have a text messaging bundle, or add one to, their existing plan. For example, Bell customers can get 100 text messages for $5/mo.

At the time both carriers made their decision, Industry Minister Jim Prentice openly expressed his disdain, calling it a "poorly thought-out decision", and asking the President of both companies to meet with him in Ottawa prior to August 8 to discuss the issue.

"While I have no desire to interfere with the day-to-day business decisions of two private companies," Prentice said back in early July, "I do have a duty as Minister of Industry to protect the interests of the consuming public when necessary."

I find it strange that, as e-mail and MMS continue to gain popularity among phone users, undoubtedly resulting in increased revenues for carriers, Bell and Telus would decide to nickel and dime the occassional users. Meanwhile, both conpanies offer unlimited data plans to smartphone users that browse the web and check e-mail, essentially awarding the heavy users. The situation is oddly contradictory to Bell's Internet "traffic shaping" issues, whereby the company allegedly slows down the services of heavy Internet and peer-to-peer users to appease those who don't engage in such activity.

On the one hand, charging for receiving SMS messages might help to encourage those who aren't very interested in anything but voice to partake in features like text messaging more often. But on the other, it might deter people from using the functions altogether, choosing to just stick to voice, and revert to their laptops and home PCs for communicating via text.

Unlimited data or not (the answer being "not"), Rogers certainly has a leg up on the two CDMA carriers when it comes to good, ol' reliable texting.

Bell, Telus Will Charge to Receive Text Messages

According to reports, while the negative rate plan spotlight is currently being shone on Rogers Wireless for its decision not to offer an unlimited data plan for the iPhone, both Bell and Telus are trying to slip a fast one past the media's radar. Both carriers cleverly (and stratetically) announced they would offer an unlimited data plan for smartphones, including two new touch-screen models similar to the iPhone. But less than a week later, each more quietly announced that they would begin charging customers without a text messaging bundle for receiving SMSs.

Currently, it costs $0.15 to send a text message, but it's free to receive them. While $0.15/received message doesn't sound like a lot in the grand scheme of things (after all, heavy finger-happy users will probably already have a bundle plan), it does add up.

I don't consider myself to be a heavy text messager, but I do send a few every now and then when I don't have the time to chat, or in response to a message sent to me. Usually, it will add up to about $2 additonal bucks per month, which I've learned to live with. If this now doubles to $4 every month; or potentially even more counting finger-happy friends that are on the Rogers network (it is still free to send text messages through Rogers), I could be looking at more than I bargained for some months; or be forced to buy a bundle and then pay for something I don't use half the time. What's more, this will just be another nickel-and-dime fee to add with the rest, like "System Access Fee", and even hefty charges for voice mail: somehow mine has increased by $3 in the past few years without my ever being notified about it!)

If this move is in an effort to cover costs associated with heavy text usage, I don't see how it will work. What will likely happen will be that people sign up for these bundles, then start texting more often to justify the extra cost, resulting in even more usage (and more money in the carrier's pocket).

Bell's new text messaging charges will come into effect on August 8 and Telus' on August 24. Both will charge $0.15/received message.

According to the Canadian Wireless Telecommunications Association (CWTA), Canadians send 43.5 million text messages per day. By my count, that equates to $6.5 million per day. Do carriers really need to charge more?

Gearing up for CTIA WIRELESS

The big North American wireless show takes place in Las Vegas, NV next week, and I'll be attending for the first time. Up until recently, wireless has really been a category all its own, somewhat distinct and separate from "consumer electronics". But today, mobile phones are virtually multimedia devices, and even mini-computers, crossing over into pretty much every category of CE.

I expect to see a lot over in Sin City (aside from the heavy gambling, drinking, and scantily-clad girls, of course!) Here are a few trends that I foresee taking precedence at this year's event:

Touch-screens: Ever since the iPhone hit the U.S. market, touch-screens have been all the rage in cellular. Sure, the standard messaging phone that comes with a stylus can technically be called a "touch" screen phone, but we're now seeing more advanced designs that are optimized for use by your grubby fingers. Most notable as of late is the HTC Touch with boasts its own TouchFLO technology (stay tuned to the April issue of here's how! for a review of this phone). Just yesterday, LG brought two touch-screen models into Canada. Even Sony Ericsson's 5 MP K850 camera phone includes a partial touch-screen (just the soft-keys). I expect to see tons more touch-able models on the show floor this year.

Apps: Applications are the hot trend for mobile phones now. You can download pretty much any type of application for your phone, from weather updates, to social networking site access, or even a poker game. Sites like http://www.handango.com/ serve as home to tons of third-party applications; and many providers try to work out deals with the manufacturer (or rather the carrier) to include their apps with the phones at purchase. Judging from the way the industry is going, along with the e-mail pitches that have been flooding my inbox for the past few weeks, application developers will be at every nook and cranny of CTIA WIRELESS. Some hot application? Social networking, navigation, and, just plain "fun" stuff, like games.

Video: Video on-the-go is becoming a popular category in itself, but being able to access video through a mobile phone is slowly gaining steam. I really saw it begin to take off in Canada a year ago when Rogers Wireless introduced video calling, along with its VISION suite of multimedia services that included, among many other features, access to top videos from sites like YouTube, along with TV content and movies. In the previous blog post, I discussed Quattro Wireless and TMZ.com's announcement to bring a "mobile" version of the Hollywood gossip site to cell phones. Being able to view video on a mobile phone is just getting started, and I gather we'll see tons more innovation in this area at CTIA and beyond.

WiMAX: At the Canadian Telecom Summit last summer, Motorola President Greg Brown said that WiMAX could make broadband "as ubiquitous as air," and he's right. WiMAX is basically an extension to traditional WiFi, permitting wireless access for up to 50 km rather than the paltry 30-100 metres that 802.11 can provide. There's an entire pavilion at the show dedicated to WiMAX, and I'll definitely be stopping by to find out what's in store for Canada.

Sleek, Sexy Designs: Sleek and sexy designs have truly become of paramount importance whether you're looking at the phone that's stuffed in your pocket, or the speakers that surround your TV. With regards to mobile devices, thin is definitely "in", as is large (and wide) screens, big buttons, ergonomic and attractive feel, and convenience keys, like one-button access to a camera, or music keys on the front of a flip-stye handset.

These are just a few of the key innovations I expect to see at CTIA WIRELESS 2008. Stay tuned next week for reports (including video on our sister Websites, http://www.marketnews.ca/ and http://www.hereshow.ca/) right from the show floor.

[Photo: Famous actor Willian Shatner joins Rogers Wireless' Chief Marketing Officer John Boynton at the launch of video calling in Canada last year.]

Rogers Gives You Karaoke on Demand, Sales of Ear Plugs Projected to Rise

Now I've seen it all. Rogers Cable is offering a Karaoke on Demand service to all PersonalTV customers that have a digital set-top box in Ontario, New Brunswick, and Newfoundland. Wanna-be crooners and the tone-def-in-denial can choose from 600 tunes, available at channel 100, then sing to their heart's desire.

All jokes aside, this is a great idea for parties, contestants auditioning for reality TV singing competitions like Canadian Idol (why not practice at home?), or those days home alone when you get an inkling to grab the hairbush and belt out a tune. What, no one else does that?

Rogers says that new songs, ranging from current pop hits, to oldies, country, hip hop, and classic rock, will be added monthly.

As if this announcement in itself doesn't already have people cringing at the hours of torture they may soon have to endure by partners doing their best Shania or Mariah impersonation, or teens and friends flooding the living room with screeching vocals, Rogers is adding fuel to the fire. The first 500 new customers to order a digital cable box and sign-up at www.rogers.com/karaoke will receive a karaoke microphone. The hairbrush can return to its rightful position in the bathroom.

Retailers: get your ear plugs out. I've got a strange feeling you'll see a spike in sales verrry soon.

[Photo: If you're anxious to know what tunes are available, the Rogers Website shows a comprehensive list, including such popular karaoke hits as Achy Breaky Heart, Life is a Highway, and Respect.]

iPhone Hacked

It was only a matter of time: as if like clockwork, a group of hackers have reportedly cracked the iPhone, and figured out how to use it on networks other than At&T: the network it should exclusively operate. I’m surprised it took them this long!

The difference between this method of hacking into the device and others reported on the ‘net over the past few weeks, is that the process is reportedly very quick, and does not require highly technical operations to complete. "No need to open your phone. No need to solder," says the Website. The group, named iPhoneSIMfree.com, claims that all that’s required is to install the developed software on the iPhone, and it should function on other carrier networks. According to the site, individual, per license units will be available starting next week.

This is big news for consumers north of the border who have been patiently waiting to get their hands on the “revolutionary” device: the iPhone is currently not available in Canada, or any other country but the U.S., for that matter.

Of course we'd like to think that most consumers will wait until the iPhone is legitimately available in their country. As for Canada, although no official launch date has been announced, all signs point to Mr. Rogers being the likely partner. And the sooner this happens, the less hacking we, and Apple, will have to endure.

Best Buy Moves in on Mobile Phone Market

It's no surprise that Best Buy has a huge presence in the consumer electronics space. Now, the retailer is expanding its Mobile Store presence with plans to open 180 locations in 12 states. This, according to TWICE.com, includes both newly-developed in-store areas and standalone shops targeted specifically to the mobile phone market. No such plans have been announced for Canadian Best Buy locations, but is this just a matter of time? Something to think about…

How will the carrier storefronts, like Bell Mobility and Rogers Wireless, not to mention stores like The Telephone Booth, feel should these Best Buy Mobile stores start popping up in popular markets across Canada? It is one thing for cell phones and plans to be selling through Best Buy stores: but it’s a whole other story when the retailer is actively pushing them through a dedicated location.

I guess either way, the carrier wins. But you have to admit it would be amusing to drive down the street and see Best Buy labels on every store you pass: Best Buy CE shop, Best Buy Mobile, Best Buy Geek Squad. What’s next? Judging from the recent demise of Sam The Record Man’s iconic downtown Toronto store, I wouldn’t put my money on a CD shop!

Rogers Lets You Talk For Free

OK, not exactly, but the wireless carrier is running a promotion whereby you can choose five friends to put on a special calling list, then make unlimited, local calls and text messages to them for free. Well, not entirely for free: the plan, called MY5, will cost $25/mth, or can be added to select existing plans for another $10. Although MY5 is open to any Rogers Wireless subscriber, judging from the press release I received this morning, Rogers is targeting the promotion primarily to youths.

This is surely a great way to help parents save money, especially with Chatty Cathy kids that can’t go one hour without talking it up with their “BFF”. But this promotion poses a few questions. For one, do parents really want to encourage their kids to blab on the phone for hours on end? With per-minute plans, parents can easily argue that once the kid has reached his minutes for the month, he’s not allowed to use the phone until next month (unless he gets a j-o-b to pay for it!). With this particular plan, kids can pull the “but mom, it’s free!” card. The parent is, of course, the authority figure here either way, and has the final say. But if I were a kid, I’d be asking why you signed me up for this plan if you don’t let me use it?

Second: although the plan affords unlimited calling and texting to your five favourite friends, regardless of which carrier the friend is on, what happens if these five people aren’t on the same plan? Uh-oh. When it comes to kids, this means angry neighboring parents banging down your door insisting why your daughter told little Billy it was free to talk on the phone. If you are a parent signing your kid up for this promotion, make sure that the parents of the five friends chosen are aware of the details, so they can either sign their kid up for the same deal, or instruct them that their standard calling rules still apply. One good thing to note is that, according to the fine print, this promotion does include landline phone numbers as well, which might be the best route to take to save your friends money if they aren’t on the same MY5 plan.

Third: what happens if Suzy gets into a fight with Jenny and wants to remove her from the “five friends” list. Or maybe they got into a fight because Jenny wasn’t included in the first place! According to the FAQs on the promotion, numbers can be changed once a month. So feel free to threaten your buddies with removal from the fantastic five if they don’t wisen up!

Crafty customers should also note that you can’t choose your own number or special voice mail access number; nor any 1-800/1-900 numbers, within your five. Darn!

If you plan to sign up for MY5 (or any promotion for that matter), I advise you call the carrier, or visit in store, and go over every finite detail. It’s better to be safe than to receive an inflated phone bill!