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Rogers begins the rape of FIDO
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| dEsidEL |
| quote: |
Jan. 27, 2005. 01:00 AM
Rogers Wireless curbs Fido unit
`Redesign' raises calling costs
Two new plans starting in March
TYLER HAMILTON
TECHNOLOGY REPORTER
Rogers Wireless Inc. has put Fido on a shorter leash less than three months after acquiring its master, Microcell Telecommunications Inc., by upping the cost, capping the talk time and shrinking the coverage of its "unlimited" CityFido plan.
Analysts said the changes, what Rogers is calling a "redesign," signal that competition in Canada's wireless industry is beginning to cool off as the three service providers left in the market put more emphasis on profits than subscriber growth.
The situation stands in contrast with the U.S. market, where wireless plans generally offer more value for less money.
"The bad thing about all of this is we're going to get back to where the carriers are very conservative," said Mark Quigley, Canadian managing director for the Yankee Group, a technology research firm.
"The Canadian carriers definitely have not been as aggressive on the price side as they have been in the U.S. market. From a consumer's perspective it certainly is a shot."
CityFido created a stir when it was first introduced because it offered unlimited local calls for just $45, including the $6.95 monthly system access fee its rivals routinely charge. Montreal-based Microcell promoted the controversial plan as a replacement for traditional local-phone services provided by Telus Corp. and Bell Canada.
When it was introduced in Vancouver in late 2003 and in Toronto last May, the flat-rate plan sparked pricing battles in each market as Bell and Telus moved to defend their respective turfs.
"What CityFido was trying to do was get rid of that local phone," said Brian Sharwood, a telecom analyst with the Seaboard Group in Toronto. "It was saying to people, `Why are you wasting that money on Bell?'"
After Rogers acquired Microcell last fall to become the country's largest wireless provider, it surprised analysts by going ahead with the launch of CityFido in Montreal. It did, however, slightly increase the monthly cost and hinted that bigger changes were likely to come.
Beginning March 1, the redesigned CityFido will be sold as two plans, both "smaller in size and more urban-focused," said Rogers.
The first offers 750 minutes for $45 a month; the second offers 1,500 minutes for $65. Each plan's local coverage area has been greatly reduced, and calls made outside the local zone will cost 50 cents a minute.
"It's pricey," said Sharwood, pointing out that the 50 cent a minute charge for calls outside the local calling zone harkens back to cellular prices of the late 1980s and those large bricklike phones.
"And it's nice to know they understand urban lifestyle needs. Apparently those needs were not met by an unlimited plan."
Rogers said the system access fee, local number portability, as well as call waiting, call forwarding and conference call services will continue to be included in both plans. Calls that exceed minute caps will cost an additional 30 cents a minute.
Existing CityFido customers will be protected from the changes for a year or until the end of their service agreements, Rogers said.
Quigley said the decision, while it makes good business sense for Rogers and its shareholders, is going to anger many CityFido subscribers who, after the effort of liberating themselves from their local phone company, will face paying more or going back to Bell.
Analysts also pointed out that the changes benefit Virgin Mobile Canada, which is planning to launch mobile phone services any week now and is expected to aggressively target disgruntled wireless users.
"This will fall into their hands," said Sharwood. "They'll be like, `You've been lied to again, come to us.' "
Additional articles by Tyler Hamilton
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source:
http://www.thestar.com/NASApp/cs/Co...tacodalogin=yes
interesting to see how this turns out for 'competition'.. let's hope Virgin Mobile can add back the competitive pricing again when they come around.. it's just too bad they're on a CDMA network instead
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| The Highroller |
| My cellphone contract is going to come to an end in march. I'm uncertain as to whether I will continue using a cell phone. It's been 2 years and prices are exactly the same. I really can't justify paying ~$50/month for something I barely even use that much. I would use it a lot more if day time rates weren't so insane. The current plans just don't fit my needs. |
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| rabbitjoker |
The Virgin deal is nothing more than a re-sale deal, I wouldn't expect anything interesting (other than hardware) - Bell isn't going to let a re-seller under-cut them by too much.
Is CityFido still available in it's current form, or has that been kyboshed? I need to get some mobile service setup (not for me), was hoping to get onto the cityfido (before it's gone). |
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| baystreetboi |
| quote: | Originally posted by dEsidEL
interesting to see how this turns out for 'competition'.. let's hope Virgin Mobile can add back the competitive pricing again when they come around.. it's just too bad they're on a CDMA network instead
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Why would they be any more competitively priced than the existing providers? Virgin is not setting up their own network... they're only buying time / space off the Bell Mobility network. Why would Bell allow someone to use their own network and significantly undercut their own prices in the process? |
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| rabbitjoker |
Virgin Mobile will be the first truly virtual Mobile Operator in Canada… and definitely not your average run of the mill mobile phone company.
We are a joint venture between Richard Branson’s Virgin Group and Bell Mobility. We’ve brought the values of one of the worlds most customer-focused and loved brands and linked them to one of the best networks in the country - Bell Mobility’s CDMA Network. However, at Virgin Mobile, we’re cleverly developing our own sophisticated technology that allows us to be incredibly innovative and offer better service and a better deal to our customers…
Each new Virgin venture is created as a separate business with the ability to manage its own affairs. Virgin Mobile Canada is completely separate from our sister companies in the Virgin Group (including Virgin Mobile USA)…but where possible we always work closely with other businesses to form some great Virgin deals for all of our customers - globally.
Virgin operates businesses in the UK, the US, Australia, Asia, Europe and many other parts of the world. Virgin Mobile operates in the UK, USA and Australia and has been incredibly successful in each market by delivering a unique proposition that is relevant to the customers in each market. With a combined customer base of over 5 million worldwide each of the businesses has its own separate ownership structure and management team but works’ closely with the others to share ideas, resources and people wherever possible. Plus each business holds at its’ core the same Virgin values and a true passion for the customer.
The Virgin Mobile Team…
While we’ve only just started, our team will be filled with fun, energetic and hardworking people who are driven to create something truly unique. The Virgin Mobile team will have years of experience in the mobile industry and within the Virgin group of companies. We also have some people with experience in neither – which helps us think outside the box.
Located in central Toronto, Virgin Mobile Canada is headed by Andrew Black who brings with him a whole lot of experience in consumer orientated businesses to help him drive the organization to meet the goals it will set itself. A passionate, energetic individual, he sees a real opportunity for Virgin Mobile Canada to deliver something incredibly new & unique that will cut through the crap and clutter that currently exists in the mobile market.
Virgin Mobile will create many jobs in its first few months of operation, and the number of employees is forecast to rise to 200 in it’s first 12 months of operation. Recruitment is already beginning…
Richard Branson’s globetrotting empire…
Virgin began in the 1970s with a student magazine and small mail order record company. The growth since then has not only been impressively fast, it’s also been based on developing good ideas through excellent management principles, rather than on acquisition.
Virgin – now the third most recognized brand in Britain and more trusted than the bank of England – is becoming the first global brand name of the 21st Century. It’s now involved in planes, trains, finance, soft drinks, music, mobile phones, holidays, cars, wines, publishing, bridal wear… the lot! And what ties all these businesses together are the values of the brand and the attitude of the people. They’ve created over 200 companies worldwide, employing over 30 thousand people. And the total revenue around the world in 2003 exceeded US$6 billion.
Richard Branson started Virgin Mobile in the UK in November 1999 and after successfully rolling the business out into Australia and the USA, Virgin Mobile is poised to take Canada by storm!
So….want to join an exciting company? Visit our site for exciting opportunities at www.virginmobilecanada.com and apply. |
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| dallastar |
poor babies!
:sadgreen: |
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| dEsidEL |
| quote: | Originally posted by baystreetboi
Why would they be any more competitively priced than the existing providers? Virgin is not setting up their own network... they're only buying time / space off the Bell Mobility network. Why would Bell allow someone to use their own network and significantly undercut their own prices in the process? |
they may be more competitively priced because of their target market, but i don't know whether that's going to be the case for sure which is why i said "let's hope"..
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| baystreetboi |
| quote: | Originally posted by rabbitjoker
The Virgin deal is nothing more than a re-sale deal, I wouldn't expect anything interesting (other than hardware) - Bell isn't going to let a re-seller under-cut them by too much.
Is CityFido still available in it's current form, or has that been kyboshed? I need to get some mobile service setup (not for me), was hoping to get onto the cityfido (before it's gone). |
CityFido is still available in it's existing format until March 1st, at which point new users will have to go on the new plans. I do believe the actual "City" area where you get unlimited calls is being scaled back though. I seem to recall reading it will essentially only be in the 416 area code.
Once on the "existing" CityFido plan, you'll be grandfathered for 12 months at which point you either have to switch to the new plans, or I believe they are keeping the option open for you to maintain the existing plans provided that you continue to sign up for long-term contracts rather than go month-to-month. |
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| dEsidEL |
| quote: | Originally posted by rabbitjoker
The Virgin deal is nothing more than a re-sale deal, I wouldn't expect anything interesting (other than hardware) - Bell isn't going to let a re-seller under-cut them by too much.
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and because of this, i don't have a lot of confidence that they will either.. which is why i was against the Rogers-FIDO takeover.. but ultimately time will tell how consumers will be affected by this..
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Is CityFido still available in it's current form, or has that been kyboshed? I need to get some mobile service setup (not for me), was hoping to get onto the cityfido (before it's gone). |
CityFido is no longer available in it's current form.. as of January 12th, 2005 - Rogers decided to reinstate the $6.95 system access fee back into the plan. If you were already on it, then u'd still be exempt from it until your contract is up.
the plan will eventually be changed altogether and the service level reduced as per the article that i posted above..
it might be still worthwhile getting on it , but it was a far better deal when it was being managed solely by Fido (since users can't roam on the Rogers network on CityFido anyway and were paying far less for the service at the time).
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| rabbitjoker |
| quote: | Originally posted by baystreetboi
Once on the "existing" CityFido plan, you'll be grandfathered for 12 months at which point you either have to switch to the new plans, or I believe they are keeping the option open for you to maintain the existing plans provided that you continue to sign up for long-term contracts rather than go month-to-month. |
| quote: | Originally posted by dEsidEL
CityFido is no longer available in it's current form.. as of January 12th, 2005 - Rogers decided to reinstate the $6.95 system access fee back into the plan. If you were already on it, then u'd still be exempt from it until your contract is up. |
This is good news.
There is still time to sign-up for the CityFido (+ $7 access fee) and then maintain the current service (NOT post March 1 service) for the next 12 months - right? |
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| baystreetboi |
| quote: | Originally posted by dEsidEL
CityFido is no longer available in it's current form.. as of January 12th, 2005 - Rogers decided to reinstate the $6.95 system access fee back into the plan. If you were already on it, then u'd still be exempt from it until your contract is up. |
This isn't a huge change though... apparently there was a $50 "management fee" that you paid once a year with City Fido... essentially an annual system access fee. Switching to the $6.95 / month just means an extra $30 or so a year. Sure it's more, but it's not like you weren't paying a substantial chunk of that in the first place. |
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| dEsidEL |
| quote: | Originally posted by baystreetboi
This isn't a huge change though... apparently there was a $50 "management fee" that you paid once a year with City Fido... essentially an annual system access fee. Switching to the $6.95 / month just means an extra $30 or so a year. Sure it's more, but it's not like you weren't paying a substantial chunk of that in the first place. |
that's true, but the $50 was a one time activiation fee.. thereafter no other maintenance fee was necessary .. unlike the $6.95 which is charged monthly
atleast the people who were originally on it still won't have to pay that fee.. atleast upto the end of the current contract
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