Why is a monthly share plan significantly less expensive if I bring my own phones?

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I Plan to Stick Around
Posts: 18

Why is a monthly share plan significantly less expensive if I bring my own phones?

Hi,

 

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?

 

Example:

 

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?

 

 

***Edited Labels.***

 

I'm a Trusted Advisor
Posts: 32,095

Re: Why is a monthly share plan significantly less expensive if I bring my own phones?

Hello cheers1981


With the BYOD, they give you a discount for it. So that is why you are in a lower amount per month and year.
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I Plan to Stick Around
Posts: 18

Re: Why is a monthly share plan significantly less expensive if I bring my own phones?

Hi,

 

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.

 

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I'm a Trusted Advisor
Posts: 32,095

Re: Why is a monthly share plan significantly less expensive if I bring my own phones?

Hello cheers1981

Its meant to customers that are with other carriers or have their own phone. Instead of them paying xx.xx amount of money to get a phone with Rogers meanwhile they have one, Rogers gives them a discount on bringing their own device over. All carriers do this even in the states.
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I Plan to Stick Around
Posts: 18

Re: Why is a monthly share plan significantly less expensive if I bring my own phones?

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.

 

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I'm a Trusted Advisor
Posts: 32,095

Re: Why is a monthly share plan significantly less expensive if I bring my own phones?

Hello Cheers1981



Unfortunately this is a User to user forum so Rogers doesn't come in here often to answer. You thought on this is most likely the correct one. All carriers do this to lock you into a contract unless you don't get a contract with them.
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Resident Expert
Resident Expert
Posts: 14,251

Re: Why is a monthly share plan significantly less expensive if I bring my own phones?

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.



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I Plan to Stick Around
Posts: 18

Re: Why is a monthly share plan significantly less expensive if I bring my own phones?

On a side note (I know the main thing being discussed is the actual phone and not the plan), these new shared plans being offered by Rogers do rock.

A couple years ago, when shared plans first came out, they really did not pay off unless you had 3 or more devices. That is, two family members with individual plans would cost less than a shared plan, until you added a third line (all other things being equal), then you started to see savings.

HOWEVER, now these shared plans, IMO, cost less for two people than two individual and identical plans. I was really happy with my old plan (300 anytime mins, province-wide free LD, 5 gb data, unlimited text, my10, plus value pack stuff). Now, it costs a few dollars less for the same data (5gb x 2), but now unlimited canada-wide calling (wow!), unlimited text. The slight downside/downgrade is we used to have 100 free texts to the US and a full voicemail package, but now no free texts to the US and a more limited voicemail (3 vm's max or something -- but I don't text to the US nor does anyone call me, lol).

But that unlimited canada-wide calling is... just wow. No more counting minutes, no more long distance (within canada), no more incoming local call area stuff, or just Rogers to Rogers or My5/My10. Just wow. I barely use the phone for calls but think I may start using it more often!
Klotar
iPhone 7 | iOS 10.1.0
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I've Been Here Awhile
Posts: 2

Re: Why is a monthly share plan significantly less expensive if I bring my own phones?

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.

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I've Been Around
Posts: 1

Re: Why is a monthly share plan significantly less expensive if I bring my own phones?

I was on a share everything plan and when my terms was up, I called in and asked for my phone to be changed to a "Bring Your Own Device" to lower the cost. Customer rep understood and the change was made. If you don't call in, you will continue to pay the "loan" back which is $ to Rogers.