Hi
I'm buying my 3GS tomorrow and I've been reading the forums here and pondering about buying the phone from Rogers (in Toronto) on contract or not. I don't see what the controversy is.
The phones cost $500 more if not bought on a contract. The penalty for breaking a contract is $20 per month remaining, up to $400 maximum (?plus $100 for data contract breaking). This adds up to the difference in price between buying the phone outright or on contract.
It's like an interest-free loan even if you end up paying the $500 later.
At $20 per month, if you stay on contract for at least 16 months, after that it's like $20 per month in the bank.
The reason to avoid a contract from what I can see is in the hopes of the new cell companies coming on line and having lower rates than Rogers. But presumably if there is new competition in the market, Rogers will have to respond. They will either respond with a killer instinct and lower their rates dramatically to kill the new companies early, or will just lower their rates to the new competitive level.
Either way, and I've checked this thoroughly with Rogers, the 3 year contractual obligation is with Rogers and not the particular plan you sign with. So, if rates do go down, say next year, as a Rogers customer you can change your plan to take advantage of the lower rates.
And , I was told today by a Rogers' rep, that I will be eligible for a new subsidized iPhone every 2 years. And if I want a new phone next year and am not eligible for a subsidy, then at that point I can pay the full amount outright (having saved the $500 this year).
So, really, I cannot see why one wouldn't go with the 3 year contract rather than buying the phone at full cost---unless, of course, you are buying an unlocked phone (which is another matter).
Am I missing something here?
I'm buying my 3GS tomorrow and I've been reading the forums here and pondering about buying the phone from Rogers (in Toronto) on contract or not. I don't see what the controversy is.
The phones cost $500 more if not bought on a contract. The penalty for breaking a contract is $20 per month remaining, up to $400 maximum (?plus $100 for data contract breaking). This adds up to the difference in price between buying the phone outright or on contract.
It's like an interest-free loan even if you end up paying the $500 later.
At $20 per month, if you stay on contract for at least 16 months, after that it's like $20 per month in the bank.
The reason to avoid a contract from what I can see is in the hopes of the new cell companies coming on line and having lower rates than Rogers. But presumably if there is new competition in the market, Rogers will have to respond. They will either respond with a killer instinct and lower their rates dramatically to kill the new companies early, or will just lower their rates to the new competitive level.
Either way, and I've checked this thoroughly with Rogers, the 3 year contractual obligation is with Rogers and not the particular plan you sign with. So, if rates do go down, say next year, as a Rogers customer you can change your plan to take advantage of the lower rates.
And , I was told today by a Rogers' rep, that I will be eligible for a new subsidized iPhone every 2 years. And if I want a new phone next year and am not eligible for a subsidy, then at that point I can pay the full amount outright (having saved the $500 this year).
So, really, I cannot see why one wouldn't go with the 3 year contract rather than buying the phone at full cost---unless, of course, you are buying an unlocked phone (which is another matter).
Am I missing something here?