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".]

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.

Made of Honor & Grand Theft Auto...All in One Night

I never thought I'd see a cheesy chick-flick, and attend the launch of a violent video game all in one night. But that was how my evening went last night in downtown T.O.

First, I attended a special screening of Made of Honor, starring Patrick Dempsey and Michelle Monoghan. The first thing I thought when I initially saw the trailer for this film was "wow, what a total knock-off of the late 1990s movie My Best Friend's Wedding" (Julia Roberts, Cameron Diaz, and chick-flick pro, Dermot Mulroney). After having watched the film, my opinion hasn't changed. Of course this movie puts its own spin on the whole concept of realizing that your best friend is "the one" when it's too late. For starters, the roles are reversed, so the man's the best friend and maid of honour. Given this, there were a few expectable laughs (not understanding all the girlie terms, jokes about wearing a dress, and of course the constant ribbing from the male buddies). But all in all, the movie was exactly what I had expected. If you're looking for the standard, feel-good chick flick for "date" night, it's a good choice. Frankly, I was most mesmerized with how they were able to make Patrick Dempsey look just like he did in the 1980s during the first flashback scene. If you're looking for the fountain of youth, ask Dempsey: he apparently has some secret that he's not sharing!

It's also worth mentioning that I watched the movie at the brand new AMC theatre at Yonge & Dundas Square. It's definitely one of the better ones I've been to (not that I've been to many theatres over the past year). The seats are actually quite comfortable (and slightly recline!) and there's tons of leg room in between rows. Picture quality, as my techie boyfriend pointed out, was also quite impressive. (Funny how we'd look at theatre quality movies and compare them to home theatres rather than the other way around!)

After the movie, it was on to Best Buy at Yonge & Dundas Square to check out the festivities for the launch of the highly anticipated video game Grand Theft Auto IV. At 9 p.m., a line-up had already formed (albeit not as long as I would have expected) while staff were on hand to attend to eager gaming geeks. Gals dressed up like Liberty City cops (the fictional city where the game takes place) occasionally pulled a guy out of the line to discipline him for disorderly conduct or whatever other made-up charges they were handing out. Not surprisingly, each man complied with a big smile on his face. After questioning, a "mug shot" was taken, and each guy (and sometimes gal) was given a T-shirt. Hey, at least they were entertained while waiting in line for 3 hours to grab a copy of the game!

The guys (and a few gals) in line represent the die-hard fans that likely took the day off work today to play the game through the night. After all, regular fans were able to pick up a copy of the game this morning at 8 a.m.! Something tells me that waiting in line was also about the "fun" experience as much as it was about snagging the game "first". But hey, to each his own.

Microsoft was also on hand (Sony around the corner at Future Shop) to award one lucky winner a limited edition GTA IV Xbox 360 gaming console. Unfortunately, my bed time is way earlier than midnight, so I didn't stay that long. But I trust that the tills were ringing well into the night, since GTA IV is expected to break sales records.

So what's the appeal of GTA IV? I'd love to hear from you die-hard gamers!

[Photos: At top are the first two eager beavers in line, along with a Liberty City "cop", who was playing her role quite well. At bottom, the Liberty City squad car kept watch on the growing line throughout the night].

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/.

HDTV: Who Knew Football Was SO Powerful?

The RetailBRIDGE cites a study that claims 5.5 million U.S. TV viewers purchased HDTVs during the holiday season and football's Superbowl in February 2008. To put this number in perspective, 28 million U.S. households in total own HDTVs. This means that 20% of the current HDTV population in the U.S. jumped on board during the Christmas season and Superbowl timeframe. Wow!

There are obviously other factors that come into play here: amazingly low prices during those few months (and even still today!), the upcoming FCC transition to all-digital TV, and growing consumer knowledge about HDTV overall. But a major surge in sales during those 3 months is great news for the industry; and just reinforces the importance of the holidays and sports. It's incredible when you think just how important gift-giving and sporting events are to the CE business.

The study, which was conducted by Frank N. Magid Associates, reports that one-quarter of the U.S. population now owns an HDTV; and almost 10 million homes now have at least two HDTVs. 30 million Americans say they plan to buy an HDTV this year, and virtually all of them say they'll go HD.

As more and more consumers begin to understand HDTV, and the sources that are required to obtain content, the format is poised for major growth. When will we reach 100% penetration? Judging from the way things are going now, I think we'll get pretty darned close by 2009.

For those who aren't familiar with how to get HD, here's a quick recap of the requirements:

1) Buy an high-definition TV (720p, 1080i, or 1080p, with the latter being the "best" quality possible; but all three technically representing HD-quality)

2) Buy an HD source, like a cable or satellite set-top box, Blu-ray disc player, or Sony PlayStation 3.

3) To access high-definition programming via cable or satellite TV, contact your provider and subscribe to the high-definition channels you want. In most cases, the provider should have some sort of HD add-on pack that includes most, if not all, of the available high-def channels. If you want to watch a high-definition DVD, you must buy a Blu-ray disc and play it back in a Blu-ray player. If you buy a standard DVD movie, it will not become high-definition if you play it back in your Blu-ray player; although it will be upscaled to a better quality image.

That's it, and you're off to enjoying HD content in all its glory!

IM For Facebook?

It's 5 p.m. on a Friday night, and I logged into Facebook from the office to post some details on our new photo contest (you could win a great Nikon digicam!) I noticed a tiny, icon on the bottom, right of my screen that said "online friends" but didn't think much of it. Perhaps it's a quick, one-button method of seeing who's currently online? Whatever. That was until a box magically popped up with a message from one of my colleagues.

"Working hard, I see," he said. What? Huh? How did THAT happen? For all you Facebook members, apparently instant messaging capabilities have now been added to the service, whether you've asked for them or not. I clicked on the link to discover a list of all my contacts that were currently online. Interesting.

So, as I entered our contest information, my colleague and I got to chatting. When I was done, he asked: "Did you just post that in here?" Post what in here? Without my asking it to, he received an IM letting him know what I had just posted in the Marketnews & here's how Magazines - About Tech group. Geez. Is it going to let him know when I take a sip of my coffee and get up for a bathroom break as well?

It seems a bit too invasive, if you ask me. Mind you, my posting in the All About Tech group would have eventually appeared in everyone's News Feeds anyway. Shortly after, I received an IM that told me he just posted two notes himself. Gotcha! It's sort of like Big Brother is watching. Scary stuff.

Air Canada to Charge $25 for Extra Checked Bag - UPDATES!

While a number of airlines are adding a $25 fee to a second carry-on item to offset rising gas prices, Air Canada is taking a different approach: charging you $25 for an additional checked bag. when you fly anywhere within North America. Up until now, travelers could take with them up to two carry-on items and two checked bags that were within defined dimension and weight parameters. The changes will come into effect on May 15, and apply to travel on or after July 15, 2008.

On a somewhat relieving note, the new fee will only apply to Tango and Tango Plus tickets (Air Canada's discount airline); but I'll bet that it's only a matter of time before it's transferred on to other flights. Latitude, Executive Class, Elite, Super Elite, and Prestige members will be exempt from the policy. The issued press release does not mention regular Economy class flights, and I've yet to receive a response from Air Canada on whether these travelers will be affected as well (stay tuned). Travelers going outside of Canada and the U.S. (including Hawaii), however, will thankfully not experience a change in their baggage allowance.

Spinning things in a positive direction, Air Canada promises that Tango customers who travel without any checked bags at all could receive a discount on their flights!

"In an environment of record high and unrelenting fuel costs, it is more critical than ever that the airline reviews its product offering to ensure it can continue to offer everyday low fares," said Duncan Dee, Executive Vice President, Customer Experience and Chief Administrative Officer of Air Canada.

Speaking of rising fuel prices, I didn't even fill up completely at $1.20 this morning and it cost me $50! When grabbing my morning coffee, a fellow building resident commented that he would be "buying a lock for his gas tank". Without thinking, I asked: "why, has someone been siphoning your gas?"

"No," he replied. "But I'm sure they will be!"

UPDATE: I spoke with someone from Air Canada who informed me that Tango and Tango Plus are just the brand names for all of the company's "low-fare" flights, which means that this additional fee will affect pretty much everyone but first-class flyers. I guess this means that whether I check or carry-on press kits from big trade shows will depend on what airline I'm flying with! The Air Canada representative also noted that, historically, only 20% of of the airline's Tango passengers flying in and out of North America check a second bag. I'm guessing that number will be dropping very soon.