Roger Debunks iPhone Myths

I have been communicating extensively with Elizabeth Hamilton, spokesperson for Rogers Wireless regarding all the controvery surrounding the upcoming release of the Apple iPhone 3G in Canada.

For those who have been sleeping under a rock for the past few weeks, here's the gist of the issues: consumers are protesting the high data plans that Rogers is imposing on the device, mainly because there is no option that would include unlimited data: the most extensive plan includes 2 GB of data for $115/mo. (a limited time option will supply 6 GB for $30; see below for more information). The other terms that has consumers livid is the fact that the iPhone will only be purchaseable with a three-year contract.

The most recent myth that Hamilton was quick to debunk is that Apple will be scaling back shipments of iPhones to Canada, diverting them to other countries because of all the negative consumer attention that the carrier has been getting. While she prefaced her stance with the typical "Rogers does not comment on rumour and speculation", she did confirm that inventory remains "unchanged throughout our announcements." Despite this, the iPhone will not be sold through Apple stores in Canada; but rather just through authorized Rogers and Fido dealers. This makes sense, given that the customer has no choice but to sign a contract to get it: how would he have done so at the Apple store anyway?

While Hamilton refused to comment on competitors Bell and Telus, both of which have recently announced unlimited data plans for competing touch-screen phone models (the Samsung Instinct and HTC Touch Diamond, respectively), she was quick to point out that Rogers isn't the only country foregoing the unlimited option: carriers in the U.K., U.S., Germany, and Sweden are the only four of the 12 countries to launch unlimited plans for the 3G device. "Unlimited plans are clearly not offered by the majority," she adds.

Further to this, Hamilton advises that Rogers has been conducting its own internal testing on mobile Websites and other data applications to determine what a customer can actually get on an iPhone in the way of data consumption with the existing plans. Her samples indicate that, with 2 GB, customers would be able to get 51,2000 text-based e-mails, 11,703 Web pages, 6,827 photos, or 2,048 minutes on YouTube.com. While certainly extensive, it seems that, at this point, in the consumer's mind, the issue has gone way beyond the amount of data consumption used, and well into the way of becoming a matter of principle. The four biggest countries are getting unlimited, as are customers on CDMA networks in Canada, so why can't we?

Meanwhile, it seems like all the negative consumer attention has convinced Rogers to add at least something to appease us: aside from opening select store locations early at 8 a.m. on Friday for advance purchase of the device, Rogers has also launched a new, limited-time plan. While it still doesn't include unlimited data, it does up data limits to 6 GB for $30, which can be added to any voice plan. This offer will only apply to customers who sign on (for three years, of course) prior to August 31, 2008.

Rogers is clearly also expecting the device to sell out, despite an online petition that is asking customers to boycott the device. The site, calle RuinediPhone, currently has over 56,000 virtual signatures. As of this morning, a note at the very top indicates that MP David McGuinty will be making a video statement on the issues posed by the site today at 3 p.m. Stay tuned.

Koodo is the New Mentos

Do you remember those old, really annoying Mentos commercials where a guy would pop a Mentos into his mouth and somehow, problems would magically disappear and he'd turn into MacGyver? Everyone hated them, yet everyone remembers them, and constantly talked about them at the time. Well, Koodo Mobile is like the new Mentos: I can't watch TV, walk downtown T.O., or scoot through a shopping mall without seeing a retro 80s fitness gal in tights, or a weird, mustached gym teacher-looking dude plastered everywhere. What gives?

Koodo Mobile appears to be marketing itself in much the same way Virgin Mobile does: as an "alternative" concept to pesky mobile phone contracts and hefty bills. Really, though, you're still dealing with one of the big threes. In actuality, Kodoo is owned by Telus, and operates on the carrier's CDMA network. I won't get into specifics of the service, but there are a number of pre-packaged plans, as well as a la carte items, that are pretty much comparable to other service offerings (see http://www.koodomobile.com/ for more information). The gist is that Koodo focuses on "basic" users that just want to talk and text with their phones, and not really do much else.

So how does Koodo differentiate itself from Telus, and the other carriers? Via something called a Koodo Tab, which lets customers charge up to $150 toward a mobile phone to their "tab", to be paid out in increments of 10% of the balance each month. Once the "tab" is cleared, points will continue to accumulate on a new tab that can be used toward a new phone once you're ready to upgrade. When you think about it, although the service doesn't include a locked in contract, it is similar to signing up for one and getting the phone for free. Let's work out the math: if your phone bill is $40.mo., this means $4 is paid toward your mobile phone each month. It'll take, you guessed it, just over three years to recoup the $150 cost for the phone. Unless, of course, you go over your monthly minutes, in which case you'll pay it off faster.

Koodo doesn't place its emphasis on getting rid of hidden fees and cumbersome contracts like Virgin Mobile does (although the latter company recently introduced hidden fee-free contracts). Koodo takes its primary focus right to cutting down on costly bills; hence the whole "fat-free" fitness theme. But when I really examine the details, it isn't that much cheaper than other carriers.

For example, for $40, you can get unlimited nationwide talk and messaging to up to 5 numbers, 100 anytime minutes, unlimited text messages, and free evenings and weekends after 7 p.m., plus the regular stuff, like voice mail and caller ID. One neat thing is the elimination of that pesky System Access Fee, and the addition of per-second billing (instead of rounding off to the nearest minute). But in digging deeper, I did find some hidden stipulations. For example, the five numbers do not apply to customers in Manitoba and Saskatchewan, and the so-called "unlimited" local calling from 7 p.m. starts on the Monday and only goes until 8 a.m. on the Thursday, recommencing at 7 p.m. on Friday. What happened to Thursday and Friday during the day? Also "detailed billing" is oddly listed as an a la carte option for an extra $3/mo. So what exactly does "regular" billing entail?

Nevertheless, Koodo Mobile sure is making a splash here in Canada. Fat-free mobile? Not quite yet. Some hidden fees need to be trimmed down, and some weight taken off the costs before we get there.

Is the iPhone Coming to Canada or Not? - UPDATE!

I think I'm asked this question more than I'm asked how I'm doing today, or what I'd like to eat for lunch. OK, maybe I'm exaggerating a bit, but I do find myself in the middle of a discussion about the iPhone, and "hey, when the heck are we going to see it in Canada?" at least once every few days. For the most part, it's others asking me and not the other way around. I really could care less (yes, I'm serious). But clearly I'm the exception to the rule in this case. So when is the holy-grail-of-phones, the iPhone, coming to Canada?

As of late, there has been another swarm of rumours that Rogers (the only GSM provider in Canada) and Apple are working out the terms of a deal. The Toronto Star even claims that it could be here between May and July. Of course, the paper doesn't cite its "industry sources", and is quick to note that there have been no official confirmation from either side. I can't seem to get one either. A Rogers spokesperson simply told me that there "is nothing new to report on the iPhone." As Chandler from Friends would say, "Can you BE any more vague?"

I recall similar rumours having been stirred up a few months ago, so it could just be someone, somewhere trying to rock the boat again and get the Canucks all excited. My instinct tells me that we won't see the iPhone here until after the Advanced Wireless Spectrum Auction at the end of May, which is when carriers bid for additional spectrum to enhance their services, and new entrants can bid to start their own service. Why do I say this?

1) With Rogers being the only main GSM carrier, there's no rush to bring the iPhone here since no one else can swoop in and carry the phone under Rogers' nose!

2) Data plan pricing in Canada is significantly higher than in the U.S. To my knowledge, Rogers does not offer any unlimited data plans. This means that data-intensive users will either have to pay through the nose to use the iPhone, or continually monitor and limit their on-the-go usage so as not to incur hefty additional fees.

3) Apple likes to play to the tune of its own song, and I get the feeling that Rogers is the same way. The Toronto Star report claims that Apple takes a portion of customer's bills as part of its agreement with carriers. If this is indeed true, Rogers is probably not too keen on that idea. And trying to agree on a deal will be tough with two strong-headed, powerful forces, neither of which wants to let up on its terms.

But then again, the AWS Auction could very well be a reason why we might see the iPhone in Canada before the end of the year. Here's why:

1) There will almost certainly be a new wireless carrier in Canada after this Auction, who will very likely be ready to set up shop by 2009. (Industry Canada has decided to set up a portion of the spectrum exclusively for a new carrier). Knowing this, Rogers might bite the bullet to smooth out a deal with Apple before competition heats up.

2) Canadian born and bred Research in Motion (RIM), makers of the popular BlackBerry device, reportedly has some cool devices on the horizon, and the longer we become used to the BlackBerry model, the more residents will hold it as the standard. People will only wait so long before they upgrade to a new phone! And once it's done, they won't too easily fork over another $400 for an iPhone.

3) People are quite obviously (and vocally) becoming frustrated that it's been almost a year since the iPhone debuted in the U.S., and yet we still haven't seen it north of the border.

4) "Grey" market iPhones that have been unlocked and cracked are widely being used across Canada on the Rogers network already. The longer it takes for the device to arrive her legitimately, the more it will become available illegitimately (although I'd argue that a huge percentage of those who have it illegitimately would have obtained it that way to begin with).

So what's the bottom line? Hurry up already so I can go back to using my regular, Sony Ericsson camera phone in peace.

UPDATE: One day later, and we have our answer. Rogers finally issued a statement confirming that it WILL be bringing the iPhone to Canada "later this year". Read all about it on our sister Website at http://www.marketnews.ca/.