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One answer: Don't buy the iphone

Jack Kapica, June 30, 2008 at 1:07 PM EDT

Although I'm not surprised by the number of comments we received to my story on Friday about what Rogers will charge customers who buy Apple's iPhone 3G, I must say I'm a little taken aback by their vitriol.

The writers have blamed the high rates Rogers is charging on the company's “monopoly” in cellphones using the GSM technology, on the federal government for “allowing” monopolies,  on a Communist conspiracy, on price gouging and even on Rogers itself, for intentionally pricing itself out of the market so it can hide its “anemic network capacity.” Some have even blamed me for not protesting loudly enough, as though Rogers listens to journalists when devising its pricing plans.

There's something to be said about each of these accusations and I agree that the prices seem to be pretty high, especially with a data-consuming device like the iPhone. Especially because no one can really predict how much data we will either be forced to consume (in the manner of updates and so on), or how much we will want to consume. Rogers is the only iPhone provider (so far) that is not offering an unlimited data plan, and that's unfortunate, and I'm in sympathy with the people who want lower rates.

But these responses tell me something else: People feel that the iPhone is something they're entitled to, like medical care, legal representation or the freedom of religion.

Excuse me? The iPhone is a cellphone, for heaven's sake. We've been using cellphones for years, and the arrival of the iPhone might represent an interesting development in technology and esthetics, but it certainly is not the end of cellphone development as we know it.

There are lots of cellphones on the market, and two very tough iPhone competitors are about to be released as well: RIM's  BlackBerry Bold and Samsung's Instinct. According to their advance press, both these phones offer the same things as the iPhone.

If Rogers slaps the same price plan on the BlackBerry Bold (which it might), would the uproar be as loud?

I doubt it.

The reason is obvious: The iPhone is made by Apple, and Apple has long nourished an us-versus-them persecution mentality among its faithful, in which the rest of the world is supposed to “hate” Apple for dimly explained motives. The high price of owning a Rogers iPhone just feeds into that paranoia.

The fact is that we do not have to own iPhones.

If Rogers has been keeping up with the cries of outrage on our site and on many others, they must be learning a major lesson in consumer revolt.

But if they refuse to budge — perhaps because they know a lot of people simply cannot live without an iPhone — the company will have to listen if you do something else:

Don't buy the iPhone. Do what you, as sensible Canadians, will do when confronted by prices you can't stand: Leave the iPhone on the shelf.

No message gets through to corporations as quickly and efficiently as a crash in sales.

  1. T Molnar from Out West, Canada writes: Pretty well. I have been using macintosh systems for over 20 yrs and it would be more convenient to have something like the iPhone but no one is forcing anyone to buy anything. Though the Apple 'ecosystem' positions one to adopt their software/hardware developments if they desire a more seamless user experience people don't have to.

    Anyway, I would love one but I am not buying one.

    regards,
  2. Casey Woods from Calgary, Canada writes: I don't read it quite the same way. I don't see this as a reaction to a single handset or a feeling of entitlement. I think that Canadians knew that Rogers pricing was high. But I don't think they truly understood the extent of it. The iPhone 3G plans in the US and UK have been highly publicized and now they are really just HOW BAD they have it. Did the average Canadian realize in 2007 that US and UK voice/data plans were much cheaper? Possibly. Do they now? Oh yeah. The iPhone 3G in Canada is possibly the first mobile device that has truly been anticipated by a significant number of people (instead of the usual techy phone geeks). It has the attention of the masses like no other previous mobile device. It isn't a little niche device. Everybody I know wants one! I don't really think that this is about the iPhone or feelings of entitlement. Its about feeling screwed by a monopoly and finally feeling the pain.
  3. Ryan Rafferty from Toronto, Canada writes: Thanks for the article Jack: I just wanted to address the following comment 'But these responses tell me something else: People feel that the iPhone is something they're entitled to, like medical care, legal representation or the freedom of religion.' The people of Canada have given Rogers use of a natural resource, portions of the wireless spectrum. We allow Rogers to profit off this arrangement, which should benefit all Canadians... not just Rogers Communications. Cellular service is as close to selling air as possible. We are being charged to talk to one another. Obviously there are costs associated with building infrastructure, and costs of running a business, and most people are intelligent enough to ask the question: If I am able to buy a cell-phone in the US and get service cheaper... what's wrong with Canadian companies? People can make all sorts of excuses... maybe they say it's an economy of scale issue... but it shouldn't be, because you only need enough infrastructure as there are people... and in most provinces, those people are limited to a few densely populated areas. Most Canadians recognize it should be the other way around-- it's much harder to supply cell service to Americans because of the distribution and number of people, not to mention the number of highways that need support. Many of us know the history of Canada, and know the government is willing to sponsor monopolies in exchange for infrastructure. Monopolies, like Rogers, tend to geed greedy. Most people have been grumbling about cell phone prices for years, Steve Jobs and Apple have worked to change the market, to make it sustainable... because previously there was no business-- just gouging... and that, while profitable, wont last forever. There is no denying Rogers has a monopoly on GSM service, it's a monopoly the Canadian people have given them. And it's something we can just as easily take away.
  4. Mark T. from Toronto, Canada writes: True words.

    The real culprit here is the Canadian people for not demanding better from successive governments that have allowed the Oligarchy we face to come into being.

    Interesting, the Vice-Chairman of the CRTC in charge of Telecommunications is a 17 yr Rogers veteran, and also a veteran of Bell Canada.

    Maybe a case of too many insiders being in charge?

    Dunno. Interesting to watch what comes out of this.

    Mark
  5. andy c from Canada writes: poster two has hit the nail on the head. before moving back to canada i didn't realized the price difference until i signed up for a celly with Tmobile. anyone who's had a cell phone plan outside of canada knows that the telcos here are a complete rip off. it has taken the iphone for the rest of canadians to come to the same realization. i think there is enough resentment towards the current three carriers that when the new entrants come along there will be a sizable consumer shift.
  6. Casey Woods from Calgary, Canada writes: What message does not buying an iPhone really send? Let's say I resist the urge and stay with my ridiculously overpriced Blackberry plan. I'm still getting screwed because I'm paying twice as much as I would on AT&T.

    The only way to 'send a message' by not buying would be to get rid of my cell phone altogether!
  7. Dave Kar from Vancouver, Canada writes: Alas Casey, that's the case. I'm hopeful that the new wireless auction spectrum that just took place will let a new competitor come in who is able to bring sanity to the prices that are paid for wireless use in this country. As you said, 'everybody wants one' and if they're willing to pay anything for it/use it, then what do you expect? If the new carrier comes out and offers BBerry service for say 1/2 the rate of the iPhone rate, I will not buy an iPhone. If they offer it at the same rate as everyone else, we're in the same place as before. I don't own a smartphone for this reason... and as suggested, if you don't buy it, the company gets nothing. So long as the number of people who are willing to pay current prices produce a level of profit greater than than the profit achieved by offering lower prices to more people, then if you're the CEO of Rogers, Bell or Telus, you're going to keep charging the higher prices (plus as you said, it relieves them from having to build more capacity and infrastructure). The only hope is a new market enchrant who has to develop a customer base, usually by low-balling prices for the first little while. Let's see what happens. If you want the government to run your cell phone company, let's not forget what Bell charged for long distance before competition was allowed in the Telco sector ... be careful what you wish for.
  8. Henry Egan from Cyberland, Canada writes: Well Jack, it is not us versus them, the iPhone is a phenomenon that Canadians have been waiting over a year to participate in.

    The downer is the utterly blatant over pricing by Rogers.

    Lack of competition is a major factor.

    People being already peeved about the discrepancy in car pricing across the border is another.

    We are paid less than Americans and are taxed way more. We therefore have less disposable income for iPhones and cars, but we are expected to pay much higher prices. Of course people are going to be upset. Has nothing to do with any cult of Apple.

    Yes don't buy one, in fact don't buy anything from Rogers to send a real message.
  9. Sami Lama from Toronto, Canada writes: I agree with many of the commenters here. It is the not the iPhone that is at the centre of this. It's Rogers (and other Canadian wireless providers) outrageous plan pricing. Most Blackberry users likely won't complain about the plan pricing because they don't pay for them themselves! I have a Blackberry 8830 on the Rogers network and use GPS, web browsing etc fairly frequently but I don't ever see a bill. However, if it did come out of my pocket believe me I wouldn't be owning a Blackberry on this plan and paying $150 a month. Unless I owned my own business and could write it off.

    As the carriers themselves have stated that the mobile web is the future, the key to earlier adoption is to get more people using the mobile web more often. That means lowering the data plan packages so people don't think about it. Make money off the companies that then deliver services over the mobile web, whatever but if you continue to overcharge Canadians the Americans will be much farther ahead.

    I love the iPhone and want one badly but I don't need it so I am not going to hand over my money needlessly to Rogers. Plus, in a year I am elgible for an upgrade of my Blackberry and look forward to getting a Bold (for free)!
  10. Wesley Moxam from Toronto, Canada writes: Jack, this isn't an issue of people 'feeling entitled to an iPhone'. It's more of a release of pent up anger over the awful data rates in Canada. Many have blogged on this before (see: http://www.thomaspurves.com/2007/04/09/canada-worse-than-3rd-world-countries-when-it-comes-to-mobile-data-access/).

    The real kicker for me is that the data plan is tied to the voice plan, yet Rogers chief marketing officer John Boynton has the audacity to call it "flexible".
  11. Paul Boucher from Calgary, Canada writes: Ironically, as ridiculously overpriced as these plans are, I may actually save a little money switching to the iPhone plan. The device is certainly something I want. I'm wondering though if anyone can get any accurate read on whether the information provided in the document at: http://www.omni-gamer.com/iPhone3G_plans.doc is correct. If it is, it makes comparison more interesting.

    Comparing countries and their various regulatory and corporate structures (never mind considerations like population and geographic size and distribution) is never an "apples to apples" comparison (sorry), but I was grateful for an overview of prices and "extra fees" elsewhere.

    Thanks.
  12. so, what from and beyond, Canada writes: When the Iphone came out, everyone here just had to have one...but after a month, nobody cares. New phones came out that do more...or can do more of what people want. Business people shunned the first iphones because there was no business applications. Sure there is now, but more people here are still addicted to blackberries and treo's.

    Give it a month and most Canadians will get over this. But certainly not the Rogers price plan. At least not until it drops because demand falls as it did here.
  13. Barry Moss from Canada writes: Leave it to Rogers to take the launch of the most highly anticipated consumer product in Canada this year and cause a consumer revolt by price gouging. No we are not entitled to iPhones, but we should be entitled to services at rates comparable to our neighbors south of the border. If Rogers and the other telecom providers disagree, perhaps its time to open up our airwaves to the likes of AT&T and Verizon for the good of all Canadians, not just a few telco executives.
  14. Hornsworth Portswiler from adanac, Canada writes: I have little desire to have an iPhone. Compared to other phones that have been on the market for a while, it's just not that appealing, though it does have a nice screen and flashy UI. But in general, the lack of near-unlimited wireless data is a big problem, for Canada. It's a significant paradigm to be able to access data from anywhere. Considering how many new, useful services are completely based on the 'net, we're going to be pretty backward in terms of what we use and what we develop.

    I had unlimited data for a while, and it was great. I could stay connected (fairly subtly, because other countries have had this tech for a while it's not so in your face), access information easily, and try out new services. People with unlimited wireless are never lost, always connected, always involved in actively describing their environment in useful ways.
  15. Sheldon Huelin from St. John's, Canada writes: I was going to get an iPhone, but after seeing the rates released by Rogers, I decided not too, and that's what people should do. I have a comparable phone from Telus, it gets the job done plus more, and I'm saving a ton of money. Also, here in Newfoundland Rogers cellphones have poor coverage outside of St. John's, which sucks since a lot of us are from out of town. Fight the power!! http://thegooglehouse.blogspot.com
  16. Omnibot 2000 from Toronto, Canada writes: The perfect rebellion against the iPhone?

    http://www.telegrams.ca
  17. Duane Freemantle from writes: Hearing about the outrage of many people who want the get the iPhone is actually laughable. If en mass these refuse to purchase the iPhone or it is service plan from Rogers, then the price will drop. However, Mr. Kapica sums it so eloquently "The iPhone is a cellphone, for heaven's sake." Mr. Kapica is absolutely correct.

    Hearing arguments that it is all about pent up frustration relating to Rogers data plan. Why would anyone believe that Rogers would discount a premium phone in relation to other phones or data plans.
  18. D D from writes: Jack,

    What you are seeing is the power of Goodwill.

    Rogers is easily one of the most hated companies in the country (Bell is no better). Apple, on the other hand is highly admired. The reason? Rogers is seen as being willing to gouge its cutomers at every opportunity and provide crappy service to boot. Apple, on the other hand, while charging premium prices for its products, is seen by its customers to be producing great products, adding value and providing superior service. With the iPhone, Rogers is taking what is perceived to be a great product in the Apple tradition and tainting it with the typical Rogers highway robbery. All Canadians are asking for is reasonable rates in line with the rest of the world.

    One day, perhaps in the midst of a takeover attempt or other challenge, Rogers will need the goodwill it is squandering away. It won't be there and none of their customers will shed a tear.
  19. Hornsworth Portswiler from adanac, Canada writes: D D,
    Actually, the iPhone and Rogers are made for each other. The iPhone has many compromises compared to other devices. The spin on this is incredible. The iPhone has no task manager, instead you're dependent on a net service hosted at Apple. Everything iPhone goes through Apple, even free apps have to be approved by them.
  20. Paul Lloyd Johnson from Canterbury, United Kingdom writes: Wow, you're quite confrontational in this post and even a little condescending. Clearly people won't be buying this phone, that is exactly what they are saying. However, these people making a stink are rightfully annoyed.

    Frankly, people should have made a lot of noise about the rip off cellular market in Canada a long time ago.

    As a leading reporter on technology, YOU SHOULD BE LEADING THE CHARGE. Not moaning about it. Where is your passion man?
  21. D B from Ottawa, Canada writes: The outrage may partly be about a feeling of entitlement to the iPhone, but that's not what I feel. The reason I was disappointed by Rogers iPhone pricing plans had very little to do wiht the iPhone itself. The issue is the ridiculous price Rogers has been charging for data on it's network, for ALL phones. The reason you're hearing the revolt now is because Apple had already done the impossible in the US. They convinced AT&T to offer a very affordable plan including unlimited data. Many Canadians were hoping that Apple would use its considerable bargaining power and the potential market to leverage a similar unlimited data plan out of Rogers. I suspect that others feel as I do that it's Apple, not Rogers that let us down. Rogers DOES have anemic network capacity and they have been happy to take their profits all the way to the bank without expanding and upgrading their network as any carrier in a competitive situation must constantly do. Underlying this is Rogers deep fear of a switch from voice to data. Not enough people have picked up on the fact that Rogers thinks about data in terms of simple web browsing, SMS text messages and e-mail. Google maps keeps them up at night, and Skype on a mobile platform scares the bejezus out of them.
  22. Mel Harris from Ottawa, Canada writes: I just tried to access http://www.ruinediphone.com/ and I get 403 Forbidden You don't have permission to access / on this server. Looks like Rogers is stopping internet access to the site. I was under the impression that that this kind of censorship was illegal on the internet. Way to go Rogers.
  23. John Warwick from West Vancouver, Canada writes: Plus, could you "lose" the "Cult of Apple" thing - it wasn't accurate years ago, and doesn't apply to the iPhone at all today. You might get a few nods from some old DOS users with that line, but it doesn't make you appear as having a clue today.

    All kinds of people may be interested in the iPhone and you'd have a hard time finding any posts going on about either "Apple" in general, or "Apple vs Some-Other-Brand/Product"

    Do you have to belong to the cult of Samsung to be interested in one of their products?
  24. B I from Toronto, Canada writes: I was planning on making the iPhone my first apple purchase. But thanks to the pricing, I will hold back and sit this one out. It's just a cell phone.
  25. Comments are Closed from Toronto, Canada writes: I would think that by now the writer would have realized the reason the rest of the world "hates Apple" is because it is a case of the slobs vs the snobs. Always has been.
  26. John H from Canada writes: I say the only way to "get" to Rogers is to bother their staff as you walk by their store. While the staff don't deserve the abuse, it will affect the company. So walk by and give them the finger. They will know why you did it. And that in itself says something about what Rogers knows to be bad business.
  27. B . from Canada writes: I agree - the best thing to do is to not buy an i-phone. Some of the whining is inapppropriate to be sure. We all know that it does cost some money to have something ike an i-phone. However, we as Canadians have a single society, and it is up to each member of Canadian society to behave in a fair and equitable manner. To be the only carrier in the world not to have an unlimited i-phone data plan shows to me that Rogers has less trust in their fellow Canadians then, say, AT&T Wireless has in their fellow Americans. Canadians should be on an equal footing with other societies in the world, and to deprive them of equality is unpatriotic. It is true that Rogers is free to set their own prices but at the same time, our Canadian companies should take at least as good care of us as other countries' cellular companies take care of them. I fully know that Rogers needs to make money and I am not denying them that - but there is a balance that can be achieved here. If half the countries had metered data plans and half had unlimited, then I would sort of understand. However. to be the only country that way...that's just not right. Perhaps someone else should be given the right to the wireless spectrum if Rogers is going to be that way. Rogers needs to treat their fellow Canadians with dignity and respect..and to put them on a level platform with others in other countries.
  28. John Warwick from West Vancouver, Canada writes: Other SmartPhones are first and foremost phones. iPhones are handheld computers with a phone built in, and are designed for always on internet access.

    Look at Googles reports on smartphone usage - iPhone was 78% of all smartphone web traffic, with relatively small smartphone market share.

    The carriers, with the apparent exception of a few like O2 and AT&T, in general don't understand that either. Rather than charming and enticing customers through value and service, they fall back on creating a tangled confusing mess of penalty laden options in the hope that, as in the past, their customers would screw up and the company would make good money when they did.

    On top of all of that, most users had no idea what people in other countries paid for service - the iPhone has changed that, making it harder to "suck up" a bad deal for Canadians.

    Most of the complaints are actually about the inadequate plans, not the cost of the plans. People expect to pay $60 to $120 to carry around a device like this. They also expect that the plans offered for the device would actually be useful and not inhibit the use it.
  29. Michael Tripper from Vancouver, Canada writes: another reason to wait to buy....

    Analyst: Intel Atom inside iPhone in 2010
    10 comments
    By Tony Smith [More by this author]
    30th June 2008 10:51 GMT
    When a European Intel exec was recently said to have claimed future iPhones will use the chip giant's Atom processor, the company quickly stated the fellow alleged no such thing. But now someone else has made that very claim.

    JoAnne Feeney, an analyst with US investment hours FTN Midwest Securities, recently told clients that the iPhone circa 2009/2010 will be Atom-based, Barron's Magazine blogger Eric Savitz notes.

    What's suspicious here is the 2009-2010 timeframe, which is exactly when Intel has said the next generation of Atom, the 'Moorestown' chip, is set to appear. That suggests Feeney is basing her claim on the handset's debut solely on the forecast arriv....

    http://www.reghardware.co.uk/2008/06/30/atominiphone/
  30. Alexander Slimnich from Canada writes: The iPhone is really the first cell phone to have mass market demand from Canadians (whether that's because of the intrinsic quality of the iPhone, or the company that released it, I'll not go in to..). It's also one of the first consumer-focused data-intensive cell phones.

    Most people really didn't really realize (or care) about extremely high data rates - because the plans were targeted for business users with Blackberries who wanted 24/7 e-mail.

    Going forward, this will not be the case - as the iPhone is only the first of a number of these data-intensive phones.

    Personally, I will not be buying an iPhone at these rates. But the issue goes much deeper than just the iPhone. It's about what Canadians can practically (at reasonable rates) do with their cell phones - we are falling far, far behind.. and the consequences could be dire.
  31. PooPs Tech from Montreal, Canada writes: Rogers has done it again! No UNLIMITED Data plan for iPhone

    Well Rogers has done it again, showing it's yellow monopolistic teeth! 2GB of Data per month with the $115 Package? This is highway robbery! Are these corporate bloodsuckers for real?

    All this is stemming from he fact that there are no competition for Rogers in Canada! No other GSM Service Provider! I was planning to at least buy 3 iPhone 3Gs, but I changed my mind! No iPhone till Rogers stops this draconian pricing for their data plan! What is hard to understand is this: Why Rogers has such a problem with DATA? Why? At least can they stop issuing decrees and actually explain to their clients why they are so stingy with their data bandwidth? May be also explain to us why the majority of Service Providers selling iPhone can sell their phones with an unlimited data plan?

    Only 2GB a Month? This is a disgrace and it shows what Rogers really thinks about their Canadian Customers! They truly think that we are stupid & ignorant and that we neither know - nor are we capable of learning anything! Well I have news for you, Rogers: WE ARE NOT! I am canceling my plans for purchasing 3 iPhone 3G, until they offer UNLIMITED Data Plan! I am sure that most people, after finding out what Rogers is really doing, will cancel their plans as well. So I guess it was all for nothing to wait a full year for the arrival of iPhone to Canada! :(

    Knowing about Rogers underhanded decision not to offer UNLIMITED data plan, Apple should have NEVER given iPhone sells rights to Rogers in the first place! Unlimited Data has been the cornerstone of Apple's agreement for allowing a Service Provider to sell iPhone. Rogers held out for a full year, knowing that they have the monopoly on GSM market, and Apple gave up, which is very uncharacteristic of Apple. I guess Apple doesn't care about their it's Canadian Clients either!
  32. Mike Wells from Toronto, Canada writes: For Heaven's Sake people Rogers has already posted its new Blackberry plan on their site over a week ago. They won't be posting newer rates for the Blackberry Bold.

    Fact is their Blackberry rates are amazing. I used to pay $80 for only 200 mb but now they are offering $30 for 400mb and a massive 6 gig of data at only $100. I opted for the flex plan that starts at $50 and gives me breadth of movement all the way up to 5 gig and moves my rate appropriately up the scale without encurring massive overage fees.

    If that's not insult to injury then I don't know what is. The iphone and Blackberry 3G models both have the capacity of using a great deal of data (mind you the iphone is king on that front) but logically the Blackberry data plans should be open for the iPhone as well.

    Check out the rates here - http://your.rogers.com/business/wireless/plansservices/businessplans.asp?plan=blackberrydata&cat=2&typ=2
  33. P Martin from St. John's, Canada writes: I am not buying one, even though I had planned on it. This is a complete ripoff.
  34. Mike Z from Canada writes: Yada yada yada... a bunch of crybabies whining over the fact that the big bad corporation won't give them their latest toy for what they consider a "reasonable" price.

    Suck it up people. Rogers is just like every other for-profit business on the planet; their goal is to charge as much as the market will allow. If they charge too much, one of two things will happen: either a competitor will get their business, or customers will simply decide against buying the product altogether. This is the way capitalism works, and IT IS A GOOD THING.

    If you are compensating for something so much that you NEED the newest bling, sucks to be your pocketbook. This reality is the same in EVERY MARKET, whether it is cars, clothes, electronics, or spouses.

    Big D -- excellent post articulating the fact that comparing US and Canadian service rates is ridiculous.

    Get a life people, and remember the old adage: "take what you want, and pay for it."
  35. A C from Albertario, Canada writes: Kapica opines: If Rogers slaps the same price plan on the BlackBerry Bold (which it might), would the uproar be as loud?
    I doubt it.
    The reason is obvious: The iPhone is made by Apple, and Apple has long nourished an us-versus-them persecution mentality among its faithful . . .

    Actually Jack, it's much more simple than that: what we have here is an Apples to Apples comparison. Canadians can see what we're being asked to pay compared to any one of 70 other markets in the world for the same phone and service.
    That rarely happens.
    And here we see that we're being ripped off by Rogers, not Apple.

    So save your Apple paranoia story for another day. It has nothing to do with this simple story of the transparent greed of a member of the Canadian wireless oligopoly.
  36. P B from Calgary, Canada writes: The iPhone is simply a cell phone? That's more than a little naive. And, please, don't suggest that the Blackberry Bold (another GSM-only phone that will, at least initially, be a Rogers exclusive) or the Samsung Instinct (that doesn't do instant messaging and can't play iTunes downloads) even begin to compare.

    The iPhone, if I was to sign into a three-year no-compromise contract with Rogers, would serve as my iTunes mp3 player, daytimer, photo album, video player during travels, and, yes, cell phone. I can buy an iPod Touch to all but the cell phone part -- though prices there are higher than for the iPhone.

    The frustration comes from Rogers / Fido having an effective monopoly as, so far, the only GSM carrier in Canada. No one else in Canada can offer me an iPhone, so Rogers has a "take it or leave it" seller's market. At the posted prices, I'll leave it, disappointed. And pretty soon, I'll leave Rogers, taking my number with me and signing up for a Telus unlimited data plan.
  37. David P. Lemieux from Montreal, Canada writes: The worst part is the three years which all Telcos appear to demand now in Canada. They know that their monopolies (similar to the oil industry) will soon end and they simply wish to leave no one for any newcomers. We need some external competition from either the US or Europe.
    As for the iPhone, it cannot be compared to any other current phone simply due to the fact that it was designed as a hand held internet based computer which simply has a phone app slapped on top. This explains why (as others have stated) that the iPhone drowns out all competitors in any market which it enters. Do you honestly believe that people just didn't feel like using the web before the iPhone? Perhaps this is the first time we all actually see a use for it.
  38. s l from Vancouver, Canada writes: The trouble is simple: Rogers "gets away" with the pricing because THERE IS NO OTHER GSM CARRIER IN THE COUNTRY. And they can thank foreign ownership rules, and the federal government's anti-competition stance when it comes to telcos for it.

    Are we "entitled" to mobile phone service at reasonable prices? Not really, no. But the simple laws of economics, along with things like technological development, such as "the more we develop something, the cheaper it becomes, just because more development makes it more widespread AND cheaper to set up/maintain" tell consumers that as time goes by and technology gets better, costs should get lower. $60/month might not suck, but if it's $60/month for the same kind of service that costs $20/month somewhere else, then yes, it sucks, and simply put, consumers should expect better. Period.
  39. Tim Cares from Canada writes: I'm not buying it but if I were, I would use it more for the WOW factor and find a less expensive way to handle all of the other communications. Like some cheaper VOIP plan or a computer for web-surfing. Why use things that cost so much more? Its not like gasoline where most people need it to live in some way. People didn't even have cell phones 15 years ago, now we need them every living second!!
  40. Elbert McLaughlin from Montreal, Canada writes: The lack of an unlimited plan is unfortunate, but imho tolerable. What irks me is that I cannot simply augment my current plan (voice only, unlimited incoming) with a supplemental data plan. As I cannot control who calls me and how often they call, keeping my inbound calls off the meter is crucial. I would be more than happy to pay additional for the data plan, but having to "downgrade" my voice plan to switch to the iPhone makes the current Rogers/Fido iPhone plans unacceptable.
  41. K McIntyre from Oshawa, Canada writes: David P Lemieux wrote: "This explains why (as others have stated) that the iPhone drowns out all competitors in any market which it enters."

    That's an interesting assertion. What markets would those be, exactly? RIM and Nokia are still outselling Apple by huge margins in every market I'm aware of.

    s l wrote: "And they can thank foreign ownership rules, and the federal government's anti-competition stance when it comes to telcos for it."

    That's a much more useful argument. Whining about Rogers prices is useless if you continue giving them your business (and probably useless if you don't, too). But when the problem is exacerbated by poor government policy then words do become more important. Unlike Rogers, governments tend to care a lot about what people think.
  42. Neil Anderson from Vancouver, Canada writes: Was planning on becoming a new Rogers customer ... not anymore. :)
  43. Imperial K from Canada writes: i agree completely, just don't buy it. my god it's just bling and delicate bling at that. most cell phones could handle a drop on the tile floor, or a bang here or there...not this puppy. look for cracks like cheap leather with the slightest bump or bruise.

    and yeah, who wants rogers legendary "surprise surprise" billing.

    be adults, use a phone for what you need it for...calling someone. go home and listen to music and or use an ipod.

    finally, nobody cares what you own other than those that want to take it from you, so there is really zero affect of others looking/wanting. it's a toy, and if you have the money to blow...well go for it, but if it seems too much, just avoid it. THERE WILL ALWAYS BE ANOTHER ONE IN A MONTH OR TWO!

    no need to buy anything right now. :)
  44. Imperial K from Canada writes: p.b, but if anyone has to have one, they're just reliving childhood and should grow up. it's a tool, use it as one...if you are into it because it's neat...well waste of money in my biased opinion.
  45. Lars Gunner from Ottawa, Canada writes: What's being missed is that Canada is falling behind most other developed countries when it comes to technology adoption. This will have negative effects in the years to come.

    There's too much insider stuff going on at CRTC and the government that is going to hurt us as a nation in the long run.
  46. T. Dee from Mississauga, Canada writes: I am going to go one step further - I will transfer my cell phone number to another company like Telus or Bell Mobility, and then I will cancel my Rogers Cable.

    I will NOT be held hostage!!

    By people buying the iPhone and signing up with Rogers for a 3 year plan you are saying 'It is OK to over charge me and rape me'.

    Send a clear message to Rogers and let them know that NO means NO!!
  47. Dalamar Evans from Toronto, Canada writes: Jack,

    I think its an appropriate comment. Journalists are not doing enough to help the little guy against demonic monopolies like Rogers. Telcomm companies have a long history of ripping off there customers and treating them like dirt. There so used to it now. That they have the gull to tell us what is good for the consumer. Obviously they don't - otherwise there would not be a outcry like this.

    I will protest by not purchasing an iPhone and fall prey to Rogers insidious data plans.
  48. Scott A. from Fredericton, Canada writes: It's not so much that Canadians feel "entitled" to the iPhone...its the highlighting of the fact that wireless companies are shamelessly ripping Canadians off. This is one of the few times that Canadians can actually compare (forgive the pun) apples to apples when it comes to wireless hardware and rates, and the fact that we're getting ripped off royally is more than abundantly clear. Myself, I have a Virgin Mobility prepaid phone...I refused to give the money to anyone else.
  49. R Rishikesh from Canada writes: This article is condescending towards the consumers. I think you should be leading the charge against the price gouging by the Canadian telecommunication companies. Foreign competition is necessary here. Recall that Telus preferred to withdraw its bid for BCE than to compete with foreign companies, when the regulators floated the idea to approve the deal. Even a developing country like India gave only 5 years head start for the local companies before opening up the market to foreign companies. The sense of entitlement of Canadian telecom companies becomes clear every time the government takes any step towards opening up the market. These companies start calling foul, and sow fear of loss of Canadian jobs.
  50. HUMBERTO DEL CASTILLO from Montreal, Canada writes: The issue is that people who manage companies like Rogers, the people in the government, the analysts, and journalists, are old fashion people that think all this is about the iPhone and all the people that protest are a bunch of Apple freaks. They thing that mobile phones are just phones and the rest of the functionalities are for teenagers that want to be fashion and connect to facebook. Wake up!!!! This is about the cell phone pricing structure; this is how Canada is behind the rest of the developed and underdeveloped world in telecommunications, this is how some greed companies take advantage of our peaceful spirit. But that, doesn’t mean we’re stupid. Journalists and Analysts won’t speak badly about Rogers, because, guess what? Who is one of the best news papers’ customer? Rogers does what analysts want to hear so that the stock holders can be happy. But blinded by their greed and arrogance, they are loosing the wave, and in the long term which can be here sooner than later they will loose. See GM, once the largest auto maker in the world and now at the border of bankruptcy. The world is changing, and the problem is that with their blind greed they are taking Canadians technological development with them. This is not about the iPhone, this is about Canada’s technological development and how it is not reachable for the majority of the people.
  51. George Muenz from Vancouver, Canada writes: Readers have more than a right to complain as the monopolies we have today are there because the government protected these local companies and to a major extent, still does. The recent spectrum auction didn't accomplish much as the incumbents scooped up a lot of that new capacity anyway.

    If you read between the lines, consumers are upset about the pricing, but more so about Rogers crippling the User experience on the iPhone just as they did on other high end devices. They are only able to do this because competition in this country has been restricted.

    One very good thing that has come out of this is that Bell and Telus now see that there is room for them to grab Rogers customers or keep those who were considering defecting to Rogers for the iPhone and they are being a bit more aggressive on pricing. So Rogers shot themselves in the foot in more ways than one and may have opened the gates to a bit of a price war.

    Finally, I own an iPhone without a data plan. The only consideration for me to upgrade would be reasonable data plans from Rogers, even it was 50/month for unlimited data which is $20 more than AT&T charges.
  52. Ted Minchev from Toronto, Canada writes: Canadian consumers unite, do not buy Rogers services of any kind, switch to other carriers. Only by punishing Rogers with the loss of major profit will the message gwt accross to this oligopoly. That is
    "screw the consumer and it will cost you". It will cost in in real $$$ and untold amounts of bad publicity.

    This is the only way Canadians can get a fair deal. As competition in this country is non existant, only the coordinated effort of Canadiands will send the message out to the oligopoly members,

    Make them work against each other, this is the only way we have to fight this oppresion. Only in Canada you say? Why yes, it seems so.

    Boycot Rogers products, send the message out.
  53. Doug MacRae from Toronto, Canada writes: Keep your cell phone... buy an iTouch... free Internet! Problem solved.
  54. Kenny Handelman from Oakville, Canada writes: After being on the phone with my Fido representative, and hearing about my contract, and how I can't just extend it to get the iphone, etc. - I think I may just get an iphone when I am in the US next, unlock it, and keep my current contract and phone number.
    Then, I can just add a data plan if I want too...
    Overall, I'm pretty frustrated at how they are setting this up.
    Kenny
  55. Rob Gilgan from Canada writes: I'm with you. I budgeted for an iPhone, but will remain with my iPod touch. With Wi-Fi at work, I can use the push features to maintain sync between all three devices, (home and work comouters and the handheld) and continue to use the Rogers cellphone until its plan retires. I'll change carriers, then, permanently. Won't make a lick of difference to Ted Rogers, but I'll feel better. I'll continue to use the Apple OS as my preferred computing platform where I can ( I have to compromise at work and use XP), and this issue is not different really. I'd prefer to carry one device, but I can't rationalize supporting this company any further.
    Count me in the group of disenfranchised Canadians that sees our successive tribal governments support special interests to the detriment of the common good.
  56. George BrownIII from Christmas Island writes: Consumers have a right to complain if a product is overpriced it should be a matter of principle it is not that we are demanting 50 ct/l gas but a product that is far lower priced in both the USA and Europe, never mind lower priced internet services in Korea and Japan. Every celphone bill in Canada includes a thuggery called "system acces fee" which is nothing short of robbery and the CRTC mighty dogs allow this to carry on. It should be time a class action suit to be brought on to refund this system acces fee. In the meanwhile keep shopping for unlocked iphones. Shame on apple to allow rodgers or robbers to carry on this scheme.
  57. david hughes from Spuzzm, Canada writes: As much as Rogers has a monopoly on GSM service, which is why Apple went with them, total sales of iPhones in Canada would be of great interest to Apple. If Rogers cant meet a certain level of sales I'm sure Apple would not hesitate to pull the plug on Rogers. This would be a huge embarrasement that could take years for Rogers to recover from especially if another carrier picks up the iPhone.

    Be patient and let it playout.
  58. JImmy Jomnes from Calgary, United States writes: Dude I am just not crazy about the IPhone. I just dont like it because it cannot act as a Modem which I need for my Business (thank you Blackberry).

    JT
    www.FireMe.To/udi
  59. Pierre Bourgeois from Montreal, Canada writes: It is not about the fact that it is Apple or the iPhone. It is about globalization and market forces.

    The fact that the internet allows us to see the pricing for the same product in various countries and that we have an effective monetary union with the U.S. due to the fact that the C$ in at par with the greenback, creates a unique situation.

    With the iPhone we have a comparable that shows just how out of of whack the pricing for data plans are in Canada. We have probably the highest or 2nd highest cost among industrialized countries. Rogers/Fido, Bell and Telus are enjoying unjustified profits in the cellular and data area. This is a cost for consumers and for business. Note that increasingly we are using data (kids use SMS and mom and dad check their emails on their B'berrys).

    The iPhone pricing has created a situation where all consumers can see how much more expensive it is in Canada and the arguments (huge geography) simply do not cut it because the service is limited to the thin band of Canada next to the U.S. border so the cost of deploying a cellular network is not higher than a number of areas in the U.S. and other countries (Australia comes to mind).

    Again, this is not an Apple fanboy (fangirl) issue - it free markets (or lack thereof) and the fact that Canadians are being charged a price for an important service that is a multiple of what is being charged in other countries.
  60. Adam Taylor from Ottawa, Canada writes: From my perch, all the voiced frustration over the Rogers/iphone agreement is simply a vent for the deeper frustration that Canadians feel in general towards the non-competitive telecommunications industry, and perhaps even hints at the overarching psychosis that Canada feels with regards to her place in the world, and her relationship with her neighbor to the south: despite being an advanced post-industrial nation, our current cell phones are at least a generation behind those used in Europe and the States, and probably laughable alongside what's currently used in Japan.

    Just one more reason in a long list to feel inadequate on the world stage.
  61. Randal Oulton from Toronto, Canada writes: I don't want an iPhone. It's a lot of money for a fancy gadget that will be outdated in 2 to 3 years and that everyone will be tossing out, adding to Ontario's growing garbage heap.

    I'm just so weary of all this disposable technology. Meanwhile, I'm still using my grandfather's stapler, and it works just fine, now in its 5th decade of service.
  62. Someone using this line to make some dumb ass comment. from Winnipeg, Canada writes: Personally I don't feel entitled to an iPhone. I have a cell phone and it works perfectly fine. What I feel entitled to is fair pricing, especially compared to what we see is happening in other markets. Many people feel pricing in Canada is the way it is because of passive consumers who just take, mutter a few complaints under their breaths and go ahead and purchase the product.

    For whatever motivation, entitlement or not, I'm happy to see Canadian consumers actually starting to make a fuss about something.

    If it is not fair pricing, then be transparent and show us why these rates have to apply in Canada. Personally, I feel companies bush pricing boundaries here to the edge to see just exactly how elastic pricing is for a particular product.
  63. Tinfoil Hatt from Canada writes:
    Gee, this is one of the few G&M forums I've read where the readers' comments are more intelligent and insightful than the article. As an above poster mentioned, the real issue here is that Canada just took one step closer to becoming a technological backwater. If this was an issue of a company charging what the market will bear in a freely competitive setting I wouldn't have a problem with it, but what we are seeing at work here is the drag of the big anchor of Trudeau-era socialism.

    FYI, the iPhone is coming out in Japan at the same time and SoftBank (the Japanese carrier) is charging about $60 for UNLIMITED data and e-mail, plus their standard selection of voice plans, any of which are probably cheaper than what a Canadian would pay, regardless of the carrier.
  64. Alastair Reeves from Ottawa, writes: Jack, welcome to dealing with Apple's "fandom". Apple has legions of fans whose dedication to the brand borders on fanaticism, and woe betide any person or company who gives a poor review to an Apple product, or is perceived as being "disloyal" to Apple. (As one journalist put it, Apple fans don't want a review...they want a hagiography.) I've seen comments posted by the Apple fan base in various discussion groups that, frankly, made my jaw drop by their sheer viciousness and nastiness.

    All this brouhaha over Roger's iPhone pricing is really only peripherally related to competition issues (or lack thereof) among cellular service providers in Canada. It's really all about the Apple fan base being denied access to their new toy at rock-bottom prices.
  65. T G from Mississauga, Canada writes: You may have a point about the Apple user paranoia BUT, I think most of the vitriol comes from the good people of Canada who are just now realizing they have been gouged by just about everyone since time immemorial. This latest insult is just another straw on the camel's back. Canadians pay more for everything. Cars, clothes, food, gas, liquor--you name it, we pay more for it--either for lack of competition or the government's hands in our pockets. Perhaps in the past we were too lazy or complacent or compliant to compare prices with our US neighbors but with the Loonie's parity these last few months, we can no longer ignore that we've been badly taken advantage of by every corporation in Canada. Restricting new technology to such an extent as this, is IMHO, foolish, greedy, and short-sighted thinking by Rogers. If I were an early adopter who had been waiting this long for a product that has been available in the US and elsewhere for a long while, I'd be pretty darn PO'd too. As it is, I'm keeping my low-end basic cell phone (I don't even have a camera!) until H*ll freezes over or until my current contract expires. Then I'm buying an unlocked phone from eBay or similar and I'm going shopping for a better price elsewhere--not that I expect to find a better price. I have no hope of that. BTW, we've been talking about canceling our Rogers cable service too. It's the worst system I've ever been on for ease of use, and content. As well, it's significantly more expensive than better plans anywhere in the States. We spend more time channel surfing looking for something decent to watch than actually watching so we may as well go read a book. It's a shame we can't have the service/technology available south of the border, but then again, perhaps we'll just save the money and retire to Arizona....
  66. T G from Mississauga, Canada writes: You may have a point about the Apple user paranoia BUT, I think most of the vitriol comes from the good people of Canada who are just now realizing they have been gouged by just about everyone since time immemorial. This latest insult is just another straw on the camel's back. Canadians pay more for everything. Cars, clothes, food, gas, liquor--you name it, we pay more for it--either for lack of competition or the government's hands in our pockets. Perhaps in the past we were too lazy or complacent or compliant to compare prices with our US neighbors but with the Loonie's parity these last few months, we can no longer ignore that we've been badly taken advantage of by every corporation in Canada. Restricting new technology to such an extent as this, is IMHO, foolish, greedy, and short-sighted thinking by Rogers. If I were an early adopter who had been waiting this long for a product that has been available in the US and elsewhere for a long while, I'd be pretty darn PO'd too. As it is, I'm keeping my low-end basic cell phone (I don't even have a camera!) until H*ll freezes over or until my current contract expires. Then I'm buying an unlocked phone from eBay or similar and I'm going shopping for a better price elsewhere--not that I expect to find a better price. I have no hope of that. BTW, we've been talking about canceling our Rogers cable service too. It's the worst system I've ever been on for ease of use, and content. As well, it's significantly more expensive than better plans anywhere in the States. We spend more time channel surfing looking for something decent to watch than actually watching so we may as well go read a book. It's a shame we can't have the service/technology available south of the border, but then again, perhaps we'll just save the money and retire to Arizona....
  67. Link Hogbrow from Canada writes: I've been waiting for iPhone to come to Canada as well, even though I don't really need a mobile phone. It was the push technology I needed. This means the 2GB data limit Rogers has imposed has postponed my iPhone purchase indefinitely. And this is from someone running nothing but Apple products and software. Being joined at the hip with Rogers for 3 years isn't happening either .... ever.

    Who is to blame for this ? To honest I couldn't care less. Eventually, when the pricing for data is reasonable I will get my iPhone. That day may never come, but you know what ?

    The sun will still come up in the east every morning, and go down in the west at night.
  68. Mauricio Orozco from Vancouver, Canada writes: I'm sad to say I hope many people are in the same situtation as me. I was ready to buy an iPhone even with a 3 year plan when it was announced. After seeing the plans offered I won't be buying it.

    It's very frustrating to come to this conclusion but I agree that the less people buy the iPhone when it comes out and in the weeks that follow, the better for us consumers.

    I agree also with the idea that this is not about a "right to have an iPhone" it's about the truth about why we can't have a competitive offering as in other countries.
  69. Edward Chew from Kingston, Canada writes: Cell phone companies in Canada are used to selling Blackberries to their corporate clients and basic phones to consumers. The iPhone is like a Blackberry-class phone targeted at consumers, but Rogers wants to retain their corporate pricing structure with it.

    There was a time when the only way you could get broadband was to lease a T1 line for thousands per month. When DSL and cable came into the picture, Bell made it very difficult for businesses using T1 to make the switch. My boss got so fed up he eventually stuck a dish up on the roof and bypassed them altogether.

    The current outrage over the iPhone is not just about one fancy little lust object. It is over an industry that has failed to keep up with changing technologies and usage patterns. The sooner they wake up to reality, the less we'll be left behind the rest of the world.

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