• Hi Guest: Welcome to TRIBE, the online home of TRIBE MAGAZINE. If you'd like to post here, or reply to existing posts on TRIBE, you first have to register. Join us!

New Telus 2 year plans to gouge more money from customers


Staff member
Telus weasels the CRTC code of conduct decision into higher revenue per user.

Telus says new two-year wireless plans offer better value despite higher prices

By: Madhavi Acharya-Tom Yew Business Reporter, Published on Tue Jul 16 2013

Telus Corp. says its new two-year wireless plans, launched in the wake of the CRTC’s consumer code of conduct, are a better value, even if they cost more per month.
The new plans, which launch July 30, will feature unlimited nationwide talk and text, as well as the ability to share data with multiple subscribers on the same wireless account.
“We have equivalent value at most price points today, and secondly, you’ve got this sharing benefit that makes that equation even better for consumers,” Brent Johnston, vice president, mobility solutions, at Telus, said in an interview on Tuesday.

Telus’ latest offering, unveiled Monday, has drawn the ire of some consumers. When Open Media, an internet advocacy group, posted an item about the new rate plans on Facebook, it drew hundreds of comments about higher monthly bills.

“When the CRTC code of conduct came out about a month ago, a lot of Canadians were looking at that as an opportunity for the big telecom companies to mend their ways and show they turned over a new leaf,” said David Christopher, communications co-ordinator at OpenMedia.

“It looks like when people are signing up for new two-year contracts, big telecom will demand that they pay higher prices.”

Industry analyst Adam Shine of National Bank Financial wrote in a research note Telus’ new plans “appear poised to increase its ARPU” or average revenue per user, he said.

“It remains to be seen how much consumers will save from the CRTC’s efforts to eliminate “bill shock” when traveling. What does appear clear…is that costs will be moving up rather meaningfully in the short term to accommodate two-year plans,” Shine wrote.

Under Telus’ two-year contracts, customers will select smartphones and devices for their plan, ranging from $10 per month for an unlocked tablet to $55 for a high-end smartphone such as the iPhone 5 or BlackBerry Q10.
Customers then pick data plans, which range from $15 per month for 250 MB to $150 for 10 GB.

The shorter contract length, spreading the cost of the phone over 24 months rather than 36, is the primary reason for the higher monthly cost, Johnston said. “If you have a house mortgage and you repay it over 10 years versus 25, your monthly payment is not going down. It’s going up. That’s the most obvious reason why rate plans could not stay where they were.”

But the new plans address bill shock and data sharing, which Canadians want. “There’s real peace of mind in that,” Johnston said. “We feel this is a great higher value solution that Canadians need and tell us they want.”

Ron Gruia, principal telecom analyst at Frost & Sullivan, believes that telecoms will be forced to absorb some of the higher device subsidiary costs so they can remain competitive in the market. “I don’t think it’s all going to be passed to consumers,” he said.

In June, the CRTC unveiled a code of conduce for wireless providers that demands customers have access to contracts at less than the current three-year norm, and caps data roaming fees.

The carriers have asked the Federal Court of Appeal to step in and overturn parts of the code.

from thestar:
Telus says new two-year wireless plans offer better value despite higher prices | Toronto Star

How it breaks down

Multiple subscribers:
NEW 2-YEAR PRICING: 2 iPhone 5 subscribers who take 2GB of data to share (1 GB each) will pay $77.50 each/month for unlimited nationwide calling on a 2-year term - $155
CURRENT PRICING: $ 80/month for unlimited nationwide calling on a 3-year term - $160

Single Subscriber:
NEW 2-YEAR PRICING: A new iPhone 5 customer who takes 1GB of data will pay $85/month for unlimited nationwide calling on a 2-year term.
CURRENT PRICING: $ 80/month for unlimited nationwide calling on a 3-year term.

Source: Telus Corp.
Alex D. from TRIBE on Utility Room


TRIBE Member
Whats the issue here? I'm trying to figure out why the simple math behind the subsidy changing is something I need to be angry about


TRIBE Member
Yup. If there are only two years of revenue to pay off subsidy then either the plan price has to go up or the hardware price does.


TRIBE Member
I just dropped Telus in favour of Virgin mobile. Got 600min nationwide, free evenings w/e, unlimited incoming calls, unlimited texting, 1GB data, $45. Virgin is on the Bell network.
tribe cannabis accessories silver grinders

glych t.anomaly

TRIBE Member
Fido 2 year plans are amazing !

50$ gets you

Text, Picture and Video Messages = unlmited
Evenings and weekends 6pm - 7am = unlimited
Anytime Minutes = 600
Data = 1GB
Call Display, Voicemail, Canada Wide Long Distance free = included

Couldnt be happier ! considering i was paying double that for the same or less for everything except data, which is fine for me :)