Rogers Says it Will Lower Price Plans

Rogers Wireless COO Nadir Mohamed said yesterday at the Canadian Telecom Summit in Toronto that the company would finally be lowering data rates to fit in line with today's cellular landscape.

Unlike the way things used to be in what seems like eons ago, mobile devices are now used for everything from surfing the 'net to sending and receiving e-mails, editing documents, streaming music and video, and even playing games. Naturally, the inflated data rate charges that are inflicted on Canadians are simply no longer relevant for the growing group of data-intensive users.

Many are reporting that this move from Rogers will be a huge leap for wireless services in Canada. But I'll wait and see the details and fine print of the actual data plans before making a judgement call. (Official announcements are scheduled to be revealed some time prior to the iPhone's arrival in Canada on July 11).

Despite what many reports are implying, Mohamed did not blatantly confirm (to be fair, nor did he deny) that the plans would actually apply to devices other than the iPhone. A representative from Rogers already confirmed to me last week that Rogers would indeed be developing a new plan for the iPhone, but made no mention about whether this plan would cross over to other devices. If anything, Mohamed seemed to focus predominantly on the iPhone and BlackBerry's upcoming Bold device (launch date TBA). Will more attractive data plans be available for owners/buyers of other smartphones as well? If I were to make an educated guess, I'd say that Rogers will offer a new plan for the iPhone and Bold, and eventually roll out new plans across the board upon monitoring customer response.

It's long been said that Canadians pay one of the highest rates for cellular services of all the developed countries. While U.S. carriers are launching unlimited data plans left, right, and centre, we have no such truly unlimited offering in Canada. I doubt we will see comparable plans to the U.S., any time soon, but hopefully we can take things one step at a time to create a more affordable wireless landscape that properly recognizes and tailors to the usage habits of mobile users today.

On that note, the Wireless Spectrum Auction, which is where telecom companies bid for the airwaves required for cellular services to operate, is still underway. Industry Canada has set aside a portion of Spectrum for a new entrant into the wireless space, which could potentially see another GSM/3G carrier enter the Canadian market. Mohamed reportedly refused to comment on the Auction.

iPhone in Canada This Week - UPDATE!

Will the highly-anticipated iPhone be available in Canada this week? Many are confident that it will be. Although there hasn't been an official announcement from either side, Steve Jobs is gearing up for Apple's Worldwide Developer's Conference today in California, and the rumour mill is buzzing that he'll be launching the next-generation iPhone there. So while consumers around the world are salivating over a new iPhone, us Canucks are tapping our fingers while we patiently wait for the new one, which will actually be our first (to be available legally, at least).

Last month, Rogers Wireless confirmed that it would be bringing the iPhone to Canada "later this year", but did not confirm an exact date. With the impending launch of the next-generation device, which will operate on the faster 3G network (the existing device operates on 2.5G), Canada might finally be ready for take-off.

But more important than the rumoured new features, which include things like tactile feedback and support for a variety of third-party applications, is price plans. Will a new, and more affordable, data plan be offered for iPhone customers? Or will we be plagued with the same hefty data fees that Canadians arguably endure now with other smartphones, like the BlackBerry or Windows Mobile devices? What's more, will there be an uproar from other smartphone makers if the iPhone is given more favourable pricing options?

Rogers was not available for comment, but stay tuned for more information on the iPhone in Canada as it becomes available.

Update: OK, So I was wrong: the iPhone is coming next month, not this week. But many of the anticipated new features have been confirmed, including 3G operation which will afford faster load times and surfing capability.

iPhone in Canada...But How Much?

The media is a-buzz about Rogers Wireless' official announcement yesterday that it will be offering the iPhone in Canada. I'm floored by how big a deal everyone is making about this. But I do think a big reason has nothing to do with the iPhone itself, but rather the changes it could bring about in the wireless data pricing arena in Canada.

I've said many times over in this blog (as well as in the Cell Block column in Marketnews Magazine) that inflated data pricing has held Canadians back from really delving into the smartphone market, and all it has to offer. With the popular iPhone, paired with Apple's reputation of getting things its way, the introduction of this highly-anticipated device could also represent the introduction of more attractive data plans in Canada.

My inkling, although no details related to pricing have been officially announced, is that Rogers will indeed offer a more attractive data plan. But it will probably be marketed as an "iPhone plan", meaning you buy the iPhone and sign up for a three-year contract, and you qualify for this fantastic, new data plan. If you buy another device, or don't lock yourself into a contract, you'll be stuck with the existing, costly plans; or perhaps a small variation of them. Maybe I'm wrong on this, and it's all based on my own speculation, but it is indeed possible. It would make sense as a quick fix that lets Rogers sign on the dotted line for the iPhone before anyone else gets it, while also not moving too far away from its current data plan landscape. Such an offering would likely, however, wreak havoc with other smartphone makers, like RIM and its BlackBerry, as well as Nokia, and Windows Mobile-based phone makers. Will they end up getting the short end of the stick?

Given that the Advanced Wireless Spectrum Auction is set to take place May 27, 2008, however, Rogers also has another reason to examine its plans. If a new GSM carrier enters the foray, they may bring some enticing offers to the table. We all know how human nature works: as soon as a new GSM carrier is here, customers will flock to it, thinking that they'll be getting a better deal; and maybe they will be. Rogers certainly needs to look at what it offers, and think a few steps ahead to ensure that the company provides compelling reasons for customers to stay.

As for the iPhone, those who are squirming to own one should hope that the Rogers deal isn't exclusive in Canada. If going grey market is the only alternative option, we'd better hope that Rogers comes up with a darned good deal that convinces customers to go its route!

[Photo: Ted Rogers with William Shatner at the launch of video calling in Canada in early 2007. Rogers issued a statement yesterday confirming that the iPhone would be coming to Canada through its service "later this year".]