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Rogers Focuses on Moving Expiring Contracts to Higher-Priced Share Everything Plans

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In just a couple of months, customers will be able to walk away from the three-year agreements they signed before the new Wireless Code came into force. While analysts forecast the migration of millions, incumbents are making preparations to retain their customers, reports the Globe and Mail.

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Starting June 3, Canadian wireless subscribers are free to walk away from their three-year contracts without paying early cancellation fees — although they do need to pay the remaining balance of their phones — under the new Wireless Code that came into force on December 2, 2013.

That means up to 4 million mobile subscribers will be on the market, shopping for better deals than they have right now, according to a January report signed by Scotia Capital Inc. analyst Jeff Fan. Specifically, he estimates 10% to 18% of the incumbents’ post-paid subscribers: that’s 2.2 million to 4 million.

Now is the time for players like Wind Mobile to take their best shots and lure those customers away from the incumbents. On the other hand, the Big Three are aware of what this could bring, so they have already taken steps to retain these high-value customers.

As Rogers spokeswoman Patricia Trott confirmed Tuesday, the company has been taking steps to “mitigate the effect of the double cohort.” Rogers is pushing its higher-revenue plans, so customers can expect the same approach from the other two as well.

“As part of our volume to value shift we’ve proactively focused on migrating customers whose contracts are expiring onto our higher [revenue] Share Everything plans,” she added, referencing the company’s recent change in strategy aimed at attracting higher-paying customers while accepting some subscriber losses.

In some cases, Ms. Trott said, Rogers has waived the remaining subsidy balances owing on contracts to retain high-value customers and move them to the company’s new plans.

In other words, if your contract will “expire” in June, you can expect a phone call from your carrier soon. Will you stay?

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