TeddyK
on - last edited on by
ElizabethS
It’s been a busy month so far for Telus. First they slashed data roaming fees, added SkypeOut credit to monthly statements and now — wait for it — they’ve apparently changed the device ownership rules to make it less expensive to buy out of a contract with them.
This is a follow-up to the move the carrier made in November 2010, where Telus played up its Early Device Upgrade program. Now, customers who signed up after November 21, 2010 will see the remaining balance of the phone they bought displayed on their monthly bill. Each month, the balance goes down until the contract expires.
Telus’s chief marketing officer, David Fuller, put it this way in the press release announcing the move:
“We are taking our commitment one big step further by removing significant cancellation fees and offering our customers the option of upgrading to a newer device at any time, rather than making them wait until their agreement expires. These improvements further solidify our commitment to offer the best customer experience in Canada.”
The release also states that “customers can now upgrade at any time to a new handset at the acquisition price simply by paying back their outstanding device balance.” That sounds like you have to pay off the balance of a current phone in order to get a new one. Whether that means the one that’s paid off is unlocked (thereby making it easier to sell) is not made clear, so I’ll have to find out for sure. The good news in that is that they can't force you to sign up and extend an existing contract.
Another tidbit here is that in the event customers want to leave Telus, they can do so without paying to just terminate the contract. Pay off the remaining balance of the device and you’re home free to go where you want. Oh, that plus the $50 “ small administrative fee account closure charge” for good measure.
Given that smartphones are heavily subsidized, I’m not sure this actually translates into a cheaper option overall, so we’ll see what happens.
Still, this recent rash of moves makes one wonder if this is what competition in Canada’s wireless industry actually looks like.
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