On June 3, customers that signed three year contracts before the CRTC’s Wireless Code of Conduct will be allowed to walk away from their agreements without paying cancellation fees (although repaying hardware subsidies will be required).
Why? The Code notes “you can cancel your contract after 2 years with no cancellation fees—even if you have agreed to a longer term.” These eligible customers, coupled with those with expiring contracts this year as well, has the wireless industry deeming them the “double cohort”.
For Rogers and Fido, their plan to make you stick around looks to be in the form of an extra 1GB data or two per month for free, for a maximum of 12 months, according to RedFlagDeals forum members receiving the following text notifications:
Rogers info: Fantastic News! We’ve added 1GB/mo. of extra data on your wireless ***-***-**** at no extra cost. Thank you for being our loyal customer. Enjoy this gift effective May 7,2015, valid only on your current plan until your next device upgrade for a maximum of 12 months. (non-transferrable)
“Hi, it’s Fido: Thanks for being with us! Here’s an extra 1GB of data per month just for you at no extra cost for <xxx-xxx-xxxx>. It’ll start on <end of billing cycle date?>, so enjoy it as long as you have your current plan or until you upgrade your phone, for up to 12 months. Reach us at <fido bitly link going to contacts page>.”
Those receiving these texts are ‘premium’ customers, such as some on the legacy 6GB data plan, paying around $60 or higher per month on wireless services with contracts set to expire or have already expired. Customers that accept the 1GB free gift will most likely stay with the company to use it, versus actively researching a move to a rival carrier.
Last month, a Scotia Capital analyst estimated 2.2 million to 4 million wireless customers will be shopping for new deals come June 3, roughly 10-18% of incumbent postpaid subscribers.
A Rogers spokesperson said at the time “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,” part of the company’s revised strategy to attract higher-paying customers while accepting some wireless subscriber losses.
Let us know if you’ve received this promo text from Rogers and Fido, and whether you plan to stay or leave the company once your option to cancel comes up in June.