Report: Canadian cell-phone users subject to unacceptably long contracts

[Armind]

VANCOUVER (NEWS1130) - You have the right to get riled up about your phone contract according to a new report. It seems like wireless companies are making customers pay through the nose in this country.

Report co-author Amit Kaminer, an analyst with the SeaBoard Group, says Canada has some of the longest cell phone contracts in the world, and the cost of cancelling them is downright draconian. Kaminer says the standard in Canada is a three-year deal and that's a long time for a customer to be locked into an agreement.

"Canadian carriers, I would say, are the only carriers that bind their subscribers into a 36-month contract. The rest of the countries, if you will, are shorter in duration of contracts," he says.

Kaminer predicts it won't be long before the federal and provincial governments jump in and put a stop to expensive, long term deals.

Let's hope for a change!

[Fuhrër-Z]

Why would the government step in? I don't think people create enough outrage over this issue for the government to take action against companies like Rogers. I'd love to see cell phone companies operate more like they do in Europe. But that's not gonna happen.
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[Tim Budong]

alot of the costs has to do with providing service in small towns

[Culverin]

Originally Posted by darthchilli

alot of the costs has to do with providing service in small towns

Actually, why is that the case?


The Big 3 aren't obligated to provide the small towns with service, they aren't Canada Post. And even if they choose to, it shouldn't be offered at anywhere near the same rate as in the city where there is proper density.

[Graeme S]

I'm really hoping that more provinces adopt the quebec law that came in on July 1. Contracts are now CONTRACTS, not "service agreements". A company must explicitly list for the customer all existing and possible charges and may not change them for any reason without notification and consent. A company may only charge cancellation up to the amount of a phone's subsidy; ie, if you get a $350 discount and cancel after one year, then you have to pay back (350/36)*24=$233.34, rather than the current "$20/mo to a maximum of $400" or whatever it is now.

The system as it stands here is complete bullshit. The quebec system might not be perfect, but it seems one whole hell of a lot better than the way it is now.

I can't make any changes at all without extending my plan, but they can load my "service agreement" with fine print including some that says

this agreement may be changed at any time without prior notice to the user

or something thereabouts.

Utter. Bullshit.
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