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Rogers/Fido to Almost ‘Eliminate’ Early Cancellation Fees in January 2012 [Update]

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Manitoba and Quebec are two provinces that have legislation to protect their consumers when it comes to cellphones. Bill 60 was an amendment to the Consumer Protection Act in Quebec in 2010 to allow consumers to cancel cellphone contracts without paying cancellation fees and other penalties, along with a clear stipulation of terms and policies. Manitoba recently passed similar legislation, and joins Quebec as only two provinces in the country to have such protections.

Telus was the first Canadian carrier to eliminate cancellation fees altogether back in June of this year (yet, there’s still a $50 ‘admin fee’), and now a leaked document hints Rogers will revise their early cancellation fee (ECF) policy in January 2012 to almost do the same:

The government is is planning to extend these changes to Manitoba in 2012. To lead the change, Rogers is proactively making updates to how our customers in all remaining non-regulated provinces are serviced when cancelling or making changes to their existing wireless services.

The new cancellation policy will result in customers paying back Rogers the subsidized amount from handsets plus $12.50. This cost of cancellation policy is known internally at Rogers as ‘Economic Inducement‘.

Here’s an example of how the policy would apply if you signed a three year term and paid $159 for a 16GB iPhone 4S (worth $649), but decided to cancel after one year.

You take the total hardware savings ($490) and divide it by the number of months in the signed term (36) times the number of months remaining (24), then add $12.50.

Update 1: Here’s an easier illustration to show the cancellation fee paid of $339.17 (via @jasontsang):

So if you plan on cancelling your Rogers contract, the amount you pay will come down to the subsidy you received–choose your devices carefully!

Thoughts on this upcoming new policy?

[via Technapedia]

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  • Anonymous

    You need to revise your calculation in the example! Since the amount to be paid is proportional to the number of months remain out of 36 months, the handset discount should be multiplied by 24/36 (and not 24*36)

  • Sean

    This must be an early April Fool’s joke. There’s no way Rodgers will implement this policy without completely screwing the customer some other way.

    Looks like our data rates are about to triple.

  • Franck

    +1

  • Anonymous

    This is far more fair than the current policy. For example if I want to cancel my contract now with 5 months left, I’d end up paying $200 or something stupid.

  • It’ll be great if they actually do this.. But they will find some way to get the money loss back… Currently to cancel my wife’s phone it’s going to cost around $600.. With the new plan, it’ll be more like the $12.50, as her phone is already paid for

  • Test123

    It’s more than current system. Sounds like they are re-writing it to compensate themselves. Increased hand set costs needs a better way for themselves. All contract phones will become zero dollars but the will get all of their bucks back out on cancelations and admon fees.

  • Auto Strada

    The Rogers big wigs prolly finally got laid.

  • Robitaille Hugo

    The bill 60 in Quebec, at least for Fido, doesnt add an extra 12,50$ to your new “cancellation” fee. I’m a fido salesrep in Gatineau right across Ottawa, the procedure is that simple : for an iPhone 4s it’s 490/36 months X the amount of months left to your agreement. No extra 12,50$ (typical Rogers BS)

  • Marle1999

    What happens if you didn’t get a subsidized phone but got locked into a 3-year contract because the plan was changed? Thoughts?

  • W3STC04ST

    No he doesn’t…
     
    Subsidy in $ given per months  =  (subsidy given on hardware) / (terms signed in in months)
     
    Unit subsidy clawback = (Subsidy given per months) x (months remaining in term)

    Rogers adds 12.50.  —-   Answer = subsidy given / (terms signed x months remaining) + 12.50 
     

    So since order of operation of math will always be the same, your answer will get you to the same answer yes, it doesn’t make “math sense” to lay it out that way.
     
    Just curious to your answer; what unit of measurement is your (24/36)? ex: 490/36 = (subsidy in $ given per month)
     
    What he had was:
    Chargeback = subsidy given / (months signed) x (months left). — 490/36*24 — What’s the problem?
     
    So before you try to sound smart, think and read your posts once or twice over before you submit. And to the dumbasses that “liked” this, sorry your also for lack of better word, idiots.
     

  • Guest

    behi44 2 comments collapsed Collapse Expand
    You need to revise your calculation in the example! Since the amount to be paid is proportional to the number of months remain out of 36 months, the handset discount should be multiplied by 24/36 (and not 24*36)

  • Chris R

    So TELUS’ policy was $20 per month until the end of your contract. If you have a $490 subsidy, and you want to cancel after month 24, you pay $21 per month in their NEW termination charge. You are actually paying MORE to cancel then before. Way to go! 

  • Idonthateasians

    I bet hes asian, them asians do math backwards

  • PsychedelicGuest

    I bet, you sir, are an idiot. Look at the picture posted. It is 490/(36*24), which comes out to 0.567. Where as 339.17 is calculated when it is (490/36)*24 or 490 * (24/36). Therefore, the first posted is correct and you are a  moron.

  • Upset Rogers Customer

    after this early cancellation (with the $12.5), still need to pay $50 for unlock the phone from Rogers right?

  • W3stc04st

    No. Unless there are brackets around the 36 x 24, order of operations or BEDMAS (brackets, exponent, division, multiplication, addition then subtraction) indicates that you dont multiply the denominators before you divide the subsidy by it, unless they are in brackets.

    Your an idiot. This is gr 10 math. Now if i would have said… 490/(36 x 24) — then you would be right.

  • Jordierobb

    This is how it should have been from the beginning.

  • Anonymous

    Add to that a $50 fee to have the phone unlocked by Rogers, assuming you plan on taking your business someplace else.

  • Dale

    The legislation suggests that the cancellation fee would be at most $12.50.

  • Jon

    What a moron! BEDMAS clearly states that BEDMAS applies to the numerators, then the denominators and finally, you do the division of such before progressing in the formula.

    The formula as presented in the post is equivalent to  (490/(36*24))+12.50. There is no other possible interpretation.The only possible way you’d be correct is if a bracket cut through the dividing line, which is impossible. PsychedelicGuest is correct and you sir, are dead wrong.

  • K3

    ….

    Dear Apple,

    Please allow your costumers the choice to give the monopoly fat cat tyrants here a finger- consider devising your own wireless devision and help to take the pain out of being a wireless subscriber. 

    …..

  • Gerry18

    Or just buy the phone unlocked.

  • Sadfsf

    You guys don;t get it

    The person who wrote the article has ZERO idea what he’s talking about

    Then that would mean people would be able to get an iphone 4s for $339 instead of paying $650

    you reallly think Rogers will let people off the hook by loosing $300 in profit

    L O L 

  • Meena00

    I really hope the same policy implement for Ont. customers as well..

  • VT

    What about the $159 you paid for the phone in the first place plus the profit rogers has made of you in the 12 months? Still dont think they are losing out.

  • Anonymous

    You’re incorrect.

    $490 is the amount subsidized.  Divide $490 by 36 months (length of the term) to come up with a per month cancellation amount -> $13.61/month is what you’re paying to cancel, not $21.

  • zd

    Let’s end this oxymoron and not insult anyone over his/her math skills. BEDMAS said nothing about the numerator or denominator–they simply don’t exist when you write your formula in flatline.

    490/36*24 will be intepreted as (490/36)*24. Try it in Excel and you will see.

  • zd

    Not so, JMCD. On my Rogers contract, the ECF is $20 a month for up to $400 max. If I camcel with 5 months remaining, it’s $100. Your contract may have a similar clause.

  • zd

    Yes, you still need to pay Rogers the $50 to unlock the phone. My first reaction after seeing the formula was “why the f… Do I want to buy my phone from Rogers? Buy it from Apple and have it unlocked from day 1.” Then I thought about it for few seconds… it’s like 0% financing, so consider the extra $62.50 the admin cost for it.

  • Anonymous

    Possible double post, but… my numbers and your numbers are off. I thought the ECF for data was $100 minimum, it’s actually $25 for the 2007-2009 period in which I signed up. Therefore if you had 5 months left, you would pay $125 in total for cancellation fees.

  • Casey Callaghan

    You can often sell the phone for the same amount as the fee to get out of your contract, sometimes for more than the fee.

  • Blacksmartie85

    This is in response to strict regulation “protecting us the consumer” started in two provinces yet Rogers is extending the “consumer friendly law” to everyone everywhere. Where in lies the problem people? We elected these officials did we not? Or are the complainers, also not voting? ……Right?…We are far more effective voicing our opinions here aren’t we?

  • A b

    a x b x c —> a =490; b=1/36; c=24
    = 490 x 1/36 x 24
    = 490 x 36^-1 x 24
    ** Remember, b=1/36, itself is a fraction……overall….does not matter which is done first, the original example is correct….  bracket or not, the answer is the same…
    in BEDMAS, Division and Mult is of equal order….

  • mira kohn

    After paying the penalty,will Rogers unlock the Iphone

  • Victor Liang82

    What about if I only want to cancel my data plan after Jan. 22 .

    If i renewed my contract after Jan. 22 for another 3 year to get a new smartphone, they would require me to add in data plan.  (I mostly use wifi connection). If i choose to cancel my data plan, how much DECF (data early cancellation fee) do i have to pay?  It used to bee a maximum of $100 + tax.

  • Victor Liang82

    What about if I only want to cancel my data plan after Jan. 22 .

    If i renewed my contract after Jan. 22 for another 3 year to get a new
    smartphone, they would require me to add in data plan.  (I mostly use
    wifi connection). If i choose to cancel my data plan, how much DECF
    (data early cancellation fee) do i have to pay?  It used to bee a
    maximum of $100 + tax.

  • Ex

    You’d pay the full amount, if you cancelled right away.

    For example:

    $100 (DECF) x 35/36 (mths remaining) + $12.50 (fee you’ll likely pay) = $109.72

  • Victor Liang82

    I called *611, and they told me that the subsidy will be divided into Voice and data portion, so the DECF will be based on the data portion.  Then I asked if they have an actually figure, they told me that as of now, they don’t know, but it’s likely to be more than $100.
     

  • Ex

    As I said:

    You’d pay the full amount, if you cancelled right away.

    For example:

    $100 (DECF) x 35/36 (mths remaining) + $12.50 (fee you’ll likely pay) = $109.72

  • mira kohn

    what would be the penalty since i have nearly 2 years left on the contract?

  • Read the article. it explains exactly that.

  • I just talked to Rogers in regards to this, as a Rogers customer for 12 years I have had nothing but issues related to billing errors, customer service nightmares and of course being over charged.  I asked about this new policy and it turns out its only for customers who have signed a new agreement after January 25th 2012 otherwise the old rules still apply.  Being the smartass I am I commented how it was nice to give new customers an easy escape route but not long term paying customers.  The lady replied by saying “well we wouldn’t was to reward a customer leaving our service” again me being the smartass replied “yeah nor would you want to reward them for 12 years of paying $100 a month” I have about a year left on my contract and I have explicitly told Rogers several times I have no interest in renewing with them again, they dont care about long term clients then I dont care if I have to start from scratch with Bell or Telus 🙂

  • Miket

    Theres a loophole, you can switch to one of the new plans and it costs only 12.50 to cancel and switch. Then via the new plan you have no contract, and cancel whenever the hell you please, win win! 

  • Miket

    well another 12.50

  •  Can you explain further? I’m confused and I want out so badly lol

  • Clinton Reid

     this is true ….what you need to do is add a new feature to your plan , which means they will resign your contract cause you added a new feature , what that does is renew your contract as of today , which  gives the opportunity to take advantage of the new policy …..

  • CY

    Agreed that its a joke, I’ve a FIDO 3 year contract with a discontinued Blackberry Curve signed in 2011. Still have 18 months to go. I contacted FIDO for early cancellation, they just want to follow the contract and want to charge me around $350-. A discontinued Blackberry Curve model won’t cost $340-?!!

  • hahaha you think they’re losing out? you pay $159 to start, you pay $339 to cancel, thats already $498, now the 12 months inbetween you are most likely paying $55-$60 per month on a voice+data plan in order to get that $159 promotion, say $55*12 = $660, now how much do you think rogers cost per plan is?? They’re using airwave frequency which is free to anyone, the only costs they have is the transmitting towers. So lets give a generous estimation and say they’re cost is $15 per month, thats $180. So they get in $480 + $498, sounds like there is a profit there to me. These companies never offer something unless they are making money…..or everyone would go out of business.

  • frogers

    So let me clarify something for everyone:

    1. First of all Rogers is NOT doing this to HELP its customers…its to screw you furhter without getting scrutiny from the government of Canada in regards to maintaining a cancellation policy when other providers don’t….

    2. So I just upgraded my phones, early, and got two iphone5s. Given my situation I am happy with my current plan etc. but not so happy with Rogers….so just to prove that this new policy will screw ppl over more i called to find out what i would be paying to cancel JUST data….

    3. So here it is, I have literally 35 out of 36 months left in my contract since I just renewed, and to cancel data ONLY on both phones, guess how much? 1600$..WOW….I was in shock! Mainly because I paid 1200$ for two iphone 5s!!!! I had to pay an early upgrade fee AND whatever the phones cost as well! WTF……..so, yes, the cancellation policy is 12.50$ but the data cancellation policy now is almost double of the contract cancellation! so here goes Rogers F*****g people over again..thank you..thank you very much…how f****d is this? thank god, I do like my plan…..

    4. Why is this being done? to allow rogers to continue charging a ‘cancellation’ fee with using ‘new terms’ & ‘new words’ that do not YET exist in the cellular world…..who’s willing to start the lawsuit off and take them to court for this? that’s what it’ll take to actually get a ‘real change’. Bell got rid of cancellation fees long time ago.. Koodo & wind & mobilicity do not do contracts, telus this year in june got rid of cancellation fees..Rogers? Rogers doubled their cancellation fee from a scary $400/line for voice and $100$/line for data to almost 800$ for data alone on a 3 year contract……

    5. Thank you Rogers for once again screwing your customers over without their consent, without notifying them and without care……..

    6. Basically if you renew AFTER january 2012 you’re screwed if you want ‘out’ of your contract….again depending on what phone you have you actually may pay less…but of course the vast majority of people have iphones or other data phones, so consider yourself screwed…..

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