Shorter Time, Higher Cost
With the launch of the new iPhone, carrier companies are more than ready to jump into action.
Under the new wireless code, Canadian phone carriers have shortened the 3-year contracts to two years, but instead raised the cost of monthly plans. Although on the surface this seems to be a reasonable change, there is much to be looked into. The old 3-year plan allowed customers to gain ownership of cellphones at a cheaper, or non-existent price by signing a monthly plan contract that lasts over the span of three years. Now that the length of the plans have been cut down, the price of contracts, especially over smartphones, have gone up. Even though the higher prices show little disadvantage when compared to buying an unlocked smartphone at full price, with unlimited calling, texting, and limited usage of cellular data involved in the contract, customers are paying $50-$100 every month that quickly adds up over a few months. It is arguable that more expensive are necessary to enjoy the full smartphone experience, but overall, higher contract prices in general will affect customer values and their decisions in choosing a carrier.
Works Cited
Dobby, Christine. “Canadians Can Cancel Phone Contracts Without Penalty After Two Years Under New Wireless Code.” Financial Post. National Post, 5 June 2013. Web. 21 Sept. 2013.
Lasalle, Luann. “Canadians Will Pay More for Cellphones Over Two-Year Contracts Instead of Three.” The Province. Postmedia Network Inc., 25 Aug. 2013. Web. 22 Sept. 2013.