Fido To Charge $25 Fee For Hardware Upgrades

Recently, Fido has been rather quiet and not making changes for the worse. However, that is about to change slightly.

It looks like Rogers is pushing some of its negative influence on Fido, as effective December 1, 2010 Fido will be charging a $25.00 administration fee on all hardware upgrades.

The Administration fee will be applicable starting Dec 1st on all postpaid handset upgrade (including no term renewal) & in all channels. Charge will be added in the back-end once a HUP is completed.

Many know that such a fee, $35.00, already exists with Rogers customer upgrades. Up until now, no such administration fee existed with Fido but that’s going to change.

Apparently the Fido upgrade fee is going towards various areas such as processing orders, restocking and tracking inventory, and shipping and handling. Fido further indicates that the fee is “to provide a fair balance between hardware costs and customers’ advantages”.

Take that as you will, but I find it ironic that an iPhone purchased from Apple directly has nothing to do with Fido’s “restocking and tracking inventory, and shipping and handling”.

So Fido customers, on your next hardware upgrade, get ready to pay an extra $25.00.

As always, here is a friendly Q&A from Fido on how Fido representatives should handle customer concerns (I particularly like Question 3):

1.) Why do you charge a $25 Administrative fee?

  • When offering a phone with an agreement discount, we reduce the price of the device versus from the manufacturer’s cost through the agreement discount. Fido costs and value of the device are represented by price of phones without agreement (up to $600 for iPhones).
  • There are also significant costs in terms of processing, administration, inventory management fulfillment, stocking, shipping and handling every time a phone is ordered

2.) Is this the return of hidden fees?

  • No, this is a one time charge per order that will not impact your subsequent invoices. This fee is also communicated on Fido.ca and in our advertisement.

3.) Aren’t you the company that cares?

  • Yes, we care about our customers. However we must be able to cover the costs related to ordering equipment.
  • Fido introduced this to help fulfill customers’ needs be able to keep offering a wide range of hardware.

4.) Other providers don’t charge administrative fees for upgrade.

  • We can’t comment on other companies’ business policies, as these changes often and we don’t want to give you wrong or outdated information.

5.) Bill 60 is supposed to protect me as customer. Is this compliant with Bill 60?

  • Bill 60 is a regulation towards penalty fees for the province of Quebec only. This is an administrative fee.

6.) Why do I have to pay that fee since Fido will be able to repay the phone in a very short time with the MSFs you charge me?

  • Don’t forget that monthly service fees are not only covering the agreement discount, but also all services offered to you (Monthly plan, per second billing, more FidoDollars every month, reception on the expanded network, etc.). [Ed. note: Oh really?]

7.) I am buying my phone full price; why is there an admin fee applicable?

  • The hardware upgrade fee is to help cover the costs of processing the order, managing inventory and shipping and handling.
  • These costs occur whether you are ordering a device with or without renewal & agreement discount.

8.) I don’t want a Smartphone: Why should I pay more because a lot of people want the latest and most expensive devices?

  • I understand these new devices do not meet your current needs, however a growing number of our customers are asking for Smartphones and we wish to remain true to our customer’s feedback

Reports on iPhone news, reviews apps and accessories. Also an armed ninja with an iPhone 4S.

  • Anonymous

    Haha. After Rogers posted their results last quarter I knew they were going to increase their prices in some way.

    Up next Rogers Wireless customers

  • Demosthenesx

    I hate these scams. If I walk into a grocery store, do I have to pay an extra fee on top of the price of my groceries to cover “processing the order, shipping and handling” etc.? Of course not. They just work the cost into the price for the goods.

    Cell phone companies need to do the same. Devices might cost a little more, but at least they’d be being honest with us.

  • Fido, the extended arm of Rogers.
    I can see it now…. Rogers/Fido saying your phone is to old, you will need to upgrade to fully use our new network. when you update BAM! extra $25 hidden charge on your next bill

    Call back 2 weeks later, My 3G is still SLOW! Woops… i guess were congested…. no refunds lol but now we have you for another 3 years Muhaha!

  • Whats next, Connection fees? 25Cents to place a call, then it starts using your minutes lolfunny thing is im just talking garbage, but i could actually see them trying it in the coming years.

    Question 4: “we cant comment on other companies” because none of them do it yet, but we dont want you to know that. we are trying to dip in your pockets as much as possible before you realize we were doing naughty things with our fingers too) Pinching our pennies? take it any which way you want lol

  • Watch they profits towards the end of their fiscal year and let’s see if they really needed this $25 fee.

  • Hahmjt

    If i recall collectly, fido had activation fee of 35$. Question is if the 25$ is being charged on top of 35$.

  • Ex

    Rogers has a $35 activation fee and $35 upgrade fee.

    Fido also has a $35 activation fee, but it has been “waived” as a promotion
    for over the last year. Fido has never had an upgrade fee.

  • Awood

    The other (non-rogers) companies aren’t charging these fees. What makes the business execs at Rogers/Fido so inept that they have to charge these extra fees to manage business revenue???

  • Ari

    Leave Fido. I’m switching to Telus in 2011. They will offer iPhone unlocks for a fee. My next iPhone will definitely not be on Fido whether I buy an unlocked one from Apple or subsidized one.

  • Noahattic

    ….rogers/fido…. always can find a way to screw your wallet. i hope they don’t start this trend and other companies follow.. the good thing is telus seems like starting to step ahead in the right direction with iphone unlocking, competitive plan, no ridiculous fee yet. if they have a good retention department, i would have join in them instead.

  • Kiki

    Total BS! Money sucking A-holes!

  • gordunramsie

    FIDO NEEDS TO WAKE UP!

    That FAQ is a load of BULLSH!T. This company is just trying to squeeze every dollar out of Canadians.

    Rogers/Fido = the Nazis of the Canadian telco industry.

  • Thehappyprince

    Well, Fido has to claw back the Fido dollars we’ve been getting all these years. Fido gives us Fido dollars to pay for Hardware Upgrade Admin Fee. Smart move.

  • Isn’t there a way to cancel your existing contract whenever they change the terms of agreement on you? I’m not sure if it counts in this instance; any clarification?

  • Ex

    Unfortunately this doesn’t apply.

  • Chrome262

    I left Telus because their fees where killing me and the family plans at fido where better (per second billing and all that) this just sucks, but i already got my new hardware, and i will see what happens 3 years from now. Actually, Telus was ok in customer service, but the coverage sucked, and at the time wasn’t GSM so i couldn’t use the iphone 3g i had from a friend. Before that i was at Fido, but then the coverage sucked lol, now they have great coverage and unlike others at rogers, i have great 3g speeds

  • g00n squad

    This is just shameful business. Try finding the hardware update fee mentioned anywhere on their website? I dare you. They have, interestingly, decided to omit it entirely or make it extremely difficult to find. It just goes to show that Fido is being run by crooks. I ultimately hate the fact that FidoDollars are being used as one of their main advertising platforms while at the same time snag them back when we actually want to use them.

    -disgruntled customer

  • Erich Knoop

    Screw that, I’ll just buy away from fido and stick a SIM card in.

  • Anonymous

    Fido finally finds another way to insult the people who feeds them. Next: an entrance fee into Fido store to cover the interior design/inventory/staffing costs

  • Anonymous

    Please support the movement to stop this hidden fee when purchasing a new phone!

    http://www.change.org/petitions/fido-stop-charging-a-25-hardware-upgrade-fee-for-purchasing-new-phones