Apple Gives Rogers a Big Thumbs Down... Good News for BlackBerry Users in the Long Run?

Rediculous iPhone Plans in Canada from Rogers
By James Falconer on 7 Jul 2008 08:39 am EDT
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I'm sure you've all heard now of the gouging that Rogers is offering up to potential iPhone users in Canada. Their current pricing structure has sparked compaints all over the web, including an online petition, 'RuinediPhone.com' (Check it out... last I checked the petition was closing in on 50,000 signatures).

Apple has apparently informed Rogers that they will divert a 'large percentage' of their iPhone stock away from Canada, and instead deliver the phones to stores in Europe. With these phones going elsewhere, Rogers stores could have as little as 10-20 iPhones in stock for launch day. Rogers had hired additional staff to handle the iPhone launch in Canada... All of whom have now been relieved of their duties. I guess 10 - 20 phones per store doesn't equal much in terms of a big launch.

Take that Rogers.

Good on Apple for taking a stand here. Rates and plans in Canada are rediculous to say the least... But lets look at the bright side here. Something good has to come of this. You would have to think with mounting pressure from the public, and even Apple, Rogers would have to fold at some point and lower their plans to comparible if not better rates than that found in the US. On top of that, we'd be sure to see a trickle-down effect from this, therefore lowering BlackBerry rates for all of us too!

Expect things to happen before the July 11th launch. If not, get ready for another 'Kevin Smash'.

[ via The iPhone Blog and BGR and Smithereens ]

Topics: News & Rumors

James Falconer James Falconer "Community Manager, Mobile Nations" 354 (articles) 805 (forum posts)

Reader comments

Apple Gives Rogers a Big Thumbs Down... Good News for BlackBerry Users in the Long Run?

24 Comments

Rogers was viewing the iPhone as their golden ARPU child, marketing decided that no matter what the plans are like people will pay it. They saw this as their key to overtaking TELUS in ARPU launching their Q3 and Q4. If you really want to make Rogers know how you feel, and plan on canceling - don't. Just reduce your plan to the lowest plan possible and keep it for the remainder of 2008. Sure it will cost you about $120 over the course of the remainder of the year to keep it, but its worth making your voice heard in the most powerful way possible - Rogers stock price.

If half of the petitioners did this, lets assume their current monthly bills are about $60, if they reduce it to $20. Thats a monthly loss for Rogers of about $40. 25, 000 (half the petitioners) x $40 = $1, 000, 000. Not only will they lose $6, 000, 000 over the course of the next 6 months but a large decrease in their subscribers ARPU will be impacted.

Plus if everyone cancels in Dec/Jan, their churn will look brutal at a key time.

Is my thinking too simple? But with most of these things, people just like to bitch but won't do whats necessary to exact any change, so any plans like these (hairbrained or otherwise) wouldn't get off the ground.

Is there a coalition of angry wireless costumers? Apple is on to something here. Data usage is going to skyrocket when 3g phones hit the market. Apple is right that Rogers is negatively impacting the market with there failure to offer unlimited plans.

And this is Apple... the little fish in the cellular phone pond. Imagine what RIM could accomplish by forcing carriers not to disable OEM features of their phones.

RIM, take a good example from Apple. Stand up to the carrier Nazis and for once make a god damn handset that's not crippled when it gets to carriers such as Verizon.

The carriers are in business because they have phones to sell service on. Take that away or using it as a bargaining tool and you have them by the balls. Be it for service prices or handset features.

Serves rogers right, those thieving bastards.

Hmm, maybe apple will make a CDMA phone for us telus users lol.

Apple loves to pick carriers that fit their style of business. ATT doesn't unlock phones and apple is proprietary so is good match. You don't want the iphone anyway, it is a kiddie device like the sidekick!!!

So funny, I can't believe Apple actually plans to do this. I thought things would stay status quo as they rarely change here in Canada. Wow. Too bad for the customers on launch day, but hopefully Rogers changes their tune or might jump on the Bold bandwagon and forget iPhone for now.

rim honestly should have done something like this a long time ago and i don't understand why. they are based out of waterloo which is my home town and i still am getting insanely screwed for my data plan. props to apple for doing something about it.

rim honestly should have done something like this a long time ago and i don't understand why. they are based out of waterloo which is my home town and i still am getting insanely screwed for my data plan. props to apple for doing something about it.

I want to believe Rogers will reduce their prices, but I don't see that happening. Look at how long it took them to lower their rates to respond to Telus and Bell's lower Blackberry rates.

People who want the iPhone will have other options to get their phones and I wouldn't be surprised to see Rogers surreptitiously encourage a nice black market for iPhones. Then Rogers can hook them up on their network and extract hefty monthly charges.

Which is exactly what is wrong with the supposed competition in Canada amongst carriers. There really is no competition, we're paying an arm and a leg for our service and still getting services that are years behind other countries (well, we're starting to catch up now).

I do agree that BB users should do the same like the Apple users. Imagine both BB users and Apple iPhone users combining their forces to force Rogers lower the data rates.

BB users are for the most part business people, apple user are mostly young kids or people that like flashy devices. This is why APPLE picks and chooses were to sell it and didn't add all the business stuff in it as is intended for the kiddies

If apple is so great why don't they sell to all carriers??? So they can charge what they want and force people to a particular carrier. They chose carriers that lock the phones and refuse to unlock them!

Manufacturers have no control over carriers pricing! Apple did this and new full well what Rogers intended to charge and probably gets a cut of it.

Way to go Apple? Give me a break.
Apple is the very reason things like this happen. They make one one carrier the exclusive seller of their phone, then act all surprised when the carrier charges monopolistic prices; who would have thought that's what would happen when you gave them a monopoly? Perhaps sometime in the past 16 months that Apple has been working with Rogers on the exclusive deal, they could have made decent unlimited rate plans a condition of exclusivity. Or, maybe they could allow more than one carrier to sell the phone.
I can all but guarantee Apple knew full well what Rogers would be charging their customers (do you think these multimillion dollar companies go into business with eachother without knowing all the details beforehand) but just figured people would suck it up and pay to get the iPhone, but now with the negative publicity are quickly distancing themselves to save PR value.

I don't know why everybody wants Rogers to lower their data rates. They are considerably lower now, compared to what they were. First off, Rogers is not a charity, they are a business, and business' make money. Just like any other business or like the Crackberry store, which charges outrageous rates for shipping to Canada, might I add! If you cannot afford the data rates, then simply don't buy it. What has happened to common sense? If you don't like the rates, then simply go to another carrier.

Yeah man! I don't get why crackberry charges like ridiculous shipping to Canada. I wanted to buy headphones that were $17 on crackberry store but with my shipping my total was almost $50. That is stupid! Rogers is a business and the best thing to do is just don't buy the iphone which would force Rogers to rethink. But you all know you will still go out and buy it so Rogers sadly wins.
iphone sucks by the way!

If they dump a major carrier due to rate plan pricing in a market that wants the damn thing, and won't sell it to all carriers so the people that want it can get it easily, they are limiting their market share. Either that or they are majority stockholder for the carriers they released it with. I say ban the iPhone as is just a kids toy!!

JCJ1 and the two guys who posted prior to his post, actually make sense! I think that if you cannot afford it, then don't buy it. What the hell are people calling apple for complaining.. like they give a shit? Consumers feel that they are always owed something. Hate to break it to ya's, but Rogers, Telus and Bell don't owe us squat. You pay for the service, you get the service. Simple.