Rogers: to contract or not to contract?

Discussion in 'iPhone' started by fredf, Jun 23, 2009.

  1. fredf macrumors 6502

    Oct 31, 2008
    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?
  2. trainguy77 macrumors 68040

    Nov 13, 2003
    a total of $500 because data as well. But no your not missing anything. Contracts are just that. A way for the carrier to make up the amount they discounted. Telus is rumored to be offering the iPhone in a couple months....but who knows! And keep in mind the iPhone will be sim locked.
  3. Acronym macrumors 68000

    Apr 26, 2008
    my parents and sister are on telus and they hate it they wish they could switch to rogers
  4. trainguy77 macrumors 68040

    Nov 13, 2003
    I am with telus and haven't had very good luck. The only reason I would want to stay is currently I get really good deals from retention...which i would not get if i switched to rogers. Either way I will probably switch because I really want an iPhone.
  5. Acronym macrumors 68000

    Apr 26, 2008
    buy a 3G and unlock unless you want a 3GS
  6. trainguy77 macrumors 68040

    Nov 13, 2003
    I want a 3GS....
  7. Acronym macrumors 68000

    Apr 26, 2008
    i figured as much it is the better choice despite the contract.
  8. trainguy77 macrumors 68040

    Nov 13, 2003
    Yeah. I have time to try talk them into a better plan. As I know it can be done through retention so I think they should be able to do it for a new customer but I will see....

Share This Page