Today, Rogers has announced its data plans for iPhone 3G. With no surprise they all suck pretty bad.
No Unlimited Data, No Flexible Voice Plan
The iPhone 3G comes with 4 plan. None of them include unlimited data, which is quite dissapointing.
The premium plan, comes at $115 per month with a cap of 2GB and 800 minutes of voice.
To the initial fee, you have to add $15 for the caller ID, $0.50 for 911 services and $6.95 of access fee. With taxes included, you’re going to pay almost $160 per month. More than $3000 at the end of the mandatory 3 years contract.
This is damn expensive!
I don’t care about voice minutes, I don’t use them much. I would rather have picked a smaller voice plan — like AT&T does in the US — in exchange of an unlimited data plan.
The thing is, if the premium plan is for advanced users, then 2GB is an absurd limitation — especially for that price.
A Hard Bill to Swallow
Let’s do some math. At 3MB a song or an app, 2GB gives you 700 downloads each month. Not bad you might say, sure but the iPhone is not only about that, it’s about data streaming. Data streaming is the next step in mobile services and lots of app would make use of it.
Watching a video on the iPhone is about streaming data at 400Kbit per second, so roughtly 50KB per second; this number is also pretty close to streaming Google Maps, playing connected games or even browsing highly dynamic (AJAX) websites.
At this rate, you would burn your 2GB limit of “Internet activity” in about 12 hours. After than you would have to pay 50 cents per MB for the first 60MB and 3 cents per MB thereafter.
The Deadly Sin
I don’t buy the argument of Rogers: “2GB is about reading 1 million emails, it should be enough for everyone.” Bullshit!
I heard that argument before. France Telecom, 10 years ago: “a 36.6K modem should be good enough for everybody browsing the Internet and watching videos online.” Then came Free, a private ISP, who blows up their business in just a couple of years; by offering free Internet access and cheap ADSL.
You know what Rogers, what you’re doing is called greed, and it’s not good for business.
Don’t expect to build a sane relationship with your customers by being dishonest. As soon as a better opportunity shows up, you will lose tons of them.
Read more,
- Rogers Announces iPhone Rates in Canada tuaw.com
- Rogers New iPhone 3G Plans Anger Some Canadians arstechnica.com
- iPhone Piracy in Canada, Rogers Robs Canadian Again techwinter.com
- Rogers Defends iPhone Data electronista.com



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You are totally right. Also given all the forthcoming apps that will be published to the AppStore, you bandwidth consumption will surely be quite high. Unlimited bandwidth enables those application to run without you worrying about data consumption. And it also help the development community really used the iPhone as an Internet device.
Guess is Rogers is not understanding any of this. I think we need to call them and explain what this means beyond greed and profits... Seems the monopoly wins again...
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Rogers don't want (and don't care) to understand. We have the exact same situation we had years ago in France with France Telecom.
And because of telcos regulations, we won't see any serious competition until at least a couple of years.
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Thanks for doing this awful math.
At the office this morning, we were three mac users ready to go for the iPhone (your demos helped) but nobody is ready yet to buy the Rogers plans.
I strongly feel that they have made the choice to keep their old and profitable BlackBerry addiction (it's RIM, the canadian NOKIA) in the business by making the iPhone almost impossible to buy. If this is true, they have some real poor marketing analysts that deserve to be proven wrong by our beloved brick of fine Cupertino magic.
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With a stock in decline, they just missed an incredible opportunity to change that course. In the end, such greed will actually hurt their shareholders bottom line. That message will be stronger than any online and printed complaints we can come up with.
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Also, if they had a little vision, they would have anticipated the slew of hyper-local services that could have developed with a consumer accessible iPhone (which, let's not fool ourselves, it won't be) and partnered with these to ultimately increase their profits. Greed isn't bad in the eyes of the corporate/publicly-traded company world, but visible greed is. And that's what they're guilty of.
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I'm quite sick about all the telcos in Canada.
These Rogers plans for the iPhone are scandalous and disgusting.
Personally, I wanted an iPhone but I'll stick with my Blackberry by principle. I won't encourage Rogers and make them think these rates are a good idea. Because they're not.
I sadly hope that we'll have tons of billing horror stories and that bloggers and traditional media will cover these and put Rogers (and their stock) to shame.
The sad part about Rogers' and other telcos commercial activities is how they are slowing down Canadian technical innovation and entrepreneurship in the mobile space in particular and the telecommunication space in general.
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I'd like to see how the new canadian mobile licence holders are going to deal with this opportunity, espacially Power Corp.
Mobile data is THE way to expand ARPU but this increase has to be handled with care because it direcly impacts one's monthly expenses on something else : phone data versus weekly magazines or online music for example.
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CDN 160 per month * 36 month engagment does roughly CDN 5760 that could be translated to CDN 1920 per year
http://hotchaud.wordpress.com/2008/06/28/cdn-1000-per-year-for-an-iphone-in-canada/
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Fred, you're right, I was even more conversative. That's a hell lots of money.
The 3 years plan is really abusive. Most carriers propose a 2 year plan.
You also have to add the $200 to get the iPhone itself. Apple shares the price of the device with the carrier. Meaning that you have to pay $400 to Rogers in the fee, but nothing justify those prices.
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