I'm thinking about changing my two individual plans into a share plan and wondering if anyone can tell me why the cost is different for the "line fee" part of the plan (not the data) depending on whether I buy a phone from Rogers or bring your own?
data = $50/month (shared)
Line fee = $35/month if bringing my own phones but $55 if buying the phones from Rogers
This means if I buy two phones from Rogers rather than bringing my own phones I have to pay $40/month more for the same service.
2 Phones purchased from Rogers = $50 (data) + $55 (line fee 1) + $55 (line fee 2) = $160/month
2 Phones brought over = $50 (data) + $35 (line fee 1) + $35 (line fee 2) = $120/month
Am I missing something or am I really paying an extra $480 per year for the exact same plan simply because I purchase my phones from Rogers. What's the justification for this?
I understand it is a discount, the question is why is it a discount on the monthly services for bringing your own phones? And it's not a minor discount, it's $240/year for each phone.
The service is exactly the same, and if anything you'd think Rogers would give a discount for purchasing a phone through them rather than bringing your own.
Again, I understand they are getting a discount for bringing a phone, I don't need an explaintion of whta a discount is. The question is why?
People who are willing to buy a phone from Rogers are the ones who should be getting a discount, not the other way around.
Makes sense = "Buy a new phone from us, get a discount"
Doesn't make sense = "Dont buy your phone from us and get a discount"
I actually have come to the answer on my own.
People who buy a phone from a carrier lock into a term to save on the cost of the phone. The carriers needed to find a way to get people who bring their own phone to lock into a term as well rather than just going month to month with no contract. The discount is meant as a way to lock those people into a contract.
It makes sense, but as somebody who buys my phones from Rogers, it angers me off that I will pay $480 more every year than somebody who does not buy their phone from Rogers, for the exact same services and features. $480 is not a minor discount, it is a whole different price point.
The main reason of the cost being higher.. is 'cost recovery'.. them gaining back some of the money that they give you for 'free' off a phone, if you are getting a new phone from that carrier.
Look at it this way.
You bring your own phone, you are just paying the plan cost.
You get a new phone from rogers. They give you $500 off the phone. Really, almost think of it, as a LOAN for the $500. That difference in plan price, is paying back that loan.
In general.. this PRICE has been included in all plans.. ALWAYS.. regardless of if you had your phone paid off, brought you own, etc.
They are just now, giving a discount, for people who choose to bring their own.
The loan analogy does not quite work here because after the 2-year term on a subsidized phone is up on a Rogers purchassed phone, you would have paid that loan back and the price should switch to reflect that, otherwise, continuing to pay the same "new phone" price instead of the "bring your own phone" price after that term is up would effectively amount to having a loan that is never paid off, which makes no sense. By that logic, one should always purchase unlocked phones or phones that are not tied to any carrier's contract terms by paying full price for it so they could then qualify for a Rogers "bring your own phone" price from the start and into perpetity, thereby discouraging people from buying phones from Rogers at all.