A Study in 2003-Style Data Plan Pricing: Canada's Fido Network

[Jason Dunn]

<img vspace="10" hspace="10" border="0" align="left" alt="" src="http://images.thoughtsmedia.com//spt/auto/1204328183.usr1.png" />I've tackled this issue before, talking previously about <a href="http://www.pocketpcthoughts.com/articles.php?action=expand,57169" target="_blank">Rogers data plans</a>, but this time I figured I'd take a closer look at Fido, the other major GSM carrier in Canada. Rogers bought Fido a couple of years ago, and as such we have no competition in the GSM phone market. I don't use the word &quot;monopoly&quot; lightly, but this is a classic example of a market where there's literally no competition if you want to use a GSM-based phone. Fido just announced <a href="http://www.smartphonethoughts.com/news/show/32439/fido-releases-motorola-q9h-and-samsung-jack-in-canada-idiotic-data-plan-pricing-means-no-one-cares.html" target="_blank">two new Windows Mobile Standard smartphones on Friday</a>, the Motorola Q9h and the Samsung JACK. Two nice, capable phones - largely crippled by Fido's data plan prices. Let's drill down on this...<br /><br />First, you have to <a href="http://www.fido.ca/portal/packages/monthlypackages.jsp" target="_blank">pick a plan</a> for your phone minutes, voice mail, etc. The plans range from $20 per month (for 200 minutes total airtime) up to their $100 per month &quot;high usage&quot; account which gives you 1000 daytime minutes and unlimited evenings and weekends. For the sake of argument, I let's pick the plan that I'm on (yes, unfortunately I'm a Fido customer): $30/month for 100 daytime minutes, unlimited evenings and weekends. Tack on the 50 cent &quot;911 emergency service&quot; fee, the $6.95 &quot;system access fee&quot;, the $5 &quot;expanded network access&quot; (which allows me to connect to Rogers cell towers - yeah, they're the same company, and I have to pay for this privilege). So now you're at $42.45 per month, for 100 daytime minutes. Oh, you want voice mail and some data? For $18/month, the &quot;value&quot; pack I have, I get voice mail and 12, count 'em 12 whole megabytes of data transfer per month. Believe it or not, I was happy when they introduced this plan, because previously I was paying $25/month for three, count 'em three megabytes of data transfer. Ok, so you're now paying $60.45 per month and you have 12 MB of data transfer. That's good for average twice-daily ActiveSync sessions, and minimal email usage. Don't you dare fire up <a target="_blank" href="http://livesearchmobile.com/?mid=1011">Windows Live Search</a>, or browse more than WAP sites, or you'll be paying for it - literally.<br /><br />Did I mention that if you had a non-Windows Mobile handset for $7 per month you'd get unlimited browser surfing? Yeah, it sucks to be using Windows Mobile sometimes, because the mobile carrier punishes you for it.<br /><MORE /><br />Oh, what's this? Fido has a <a href="http://www.fido.ca/portal/en/domore/3g_windows_mobile.shtml" target="_blank">Windows Mobile package</a>? Surely that must be some sort of great bundle that will let people use their Windows Mobile devices the way they were meant to be used - as rich-client data devices - all for a reasonable fee. So what is it? Unlimited email....but only to/from a Yahoo.ca, Yahoo.com, Gmail, Sympatico, Videotron, Rogers Yahoo, Telus, Shaw, Cogeco, Hotmail, Live, or MSN account. Got a custom domain, especially if you're a business user? Tough - no unlimited email for you. So how much do you pay for this &quot;awesome&quot; service? $15 per month, and they give you a whopping 2 MB of additional data. $25 per month gets you 4 MB, and $40 per month gets you 8 MB. Oh, and it's $10 per MB after that. What's that? You did the math and figured out the $18/month &quot;value&quot; pack with 12 MB is a much better overall deal? Shh - don't tell other Fido customers that - especially since they no longer offer that exact option (don't you love it how they do that?).<br /><br />Once again you have a scenario where Microsoft releases a solid, functional phone OS, OEMs release great phones like the Motorola Q9h and the Samsung JACK, and the mobile carrier destroys the entire value proposition by making the phone so expensive to use the way in which it was designed that customers either buy the phone and can't use it to it's full potential, or they get an LG Chocolate instead and ignore the Windows Mobile option. Motorola, Samsung, HTC - all the players involved can make all the great phones they want, but ultimately mobile carriers like Fido can choke the products out of existence with pricing - and that's exactly what they're doing here.<br /><br /><em>Jason Dunn owns and operates <a href="http://www.thoughtsmedia.com" target="_blank">Thoughts Media Inc.</a>, a company dedicated to creating the best in online communities. He enjoys mobile devices, digital media content creation/editing, and pretty much all technology. He lives in Calgary, Alberta, Canada with his lovely wife, and his sometimes obedient dog. He wishes someone would compete with Fido and Rogers to give Canadians more value for their money.</em>

[kirkyuhnke]

Jason,

I gotta be honest, that is horrible! I think many of us here in the states don't realize how good we have it! I have a Windows Mobile Treo and pay $15/mo on Sprint for all-you-can-eat data. I can't even imagine being limited to 12mb, I go through that in 1 day... easy! You can't use Slingbox or Google maps, etc, etc! Even the $45/mo data plan on other carriers is starting to seem like a good deal! Sounds like a Wi-Fi phone actually means something up north, eh? :)

-Kirk

[Rocco Augusto]

I remember when carrier plans use to look like that here in the US. Plans are still a little outrageous here but they're more consumer friendly. Right now I get unlimited data and 200 messages (SMS and MMS) for $19.99USD.

[Jason Dunn]

I gotta be honest, that is horrible!

Yup. Feel my pain! :D

[Stinger]

Can I rub it in by saying that I'm getting 1GB of data in the UK for $10 (on top of my usual contract) a month? ;)

I remember getting charged $4.70 per MB only 2 years ago...

[cortez]

to never complain about my cell service again! when you look up monopoly, i'm sure the Fido & Rogers logos are front and center. with my sprint plan, i'm paying approximately $5.00 more monthly than you. for $51/monthly, i get 1300 primetime minutes, unlimited nights/weekends starting @ 7 pm, unlimited text/mms and unlimited internet/data.

the canadian rate plans are simply unbelievable... i used 1.3 GB of data last month; that would probably cost me thousands of dollars in canada.

[mrmagoo]

Am I missing something here? Since November/07, Bell Canada has been offering what is essentially unlimited internet access on their HTC Touch phone.

The data transfer must originate and/or terminate on the HTC Touch. Tethering is not included in the plan. How much is the plan? $7/month and can be bundled together with one of Bell's voice plan. Commitments range from 1 year to 3 year contracts.

So, what does this $7/month data plan give you? As expected, push email via Hotmail or a Microsoft Exchange server, browsing the internet using either pocket IE or Opera Mini 4.0 (excellent I might add). The exchange server is particular nice because I receive/send all my corporate email with *all attachments*, calendar sync, and contact sync enabled. I also run NewsBreak. I can stream audio from streaming audio sites, videos from YouTube/Google video, and also stream my recorded TV programs via my HTPC. I run VNC often to remotely control a couple of my computers at home.

My 'data portion' of my bill is charged $7/month for the past three months...no suprises here.

I thought that this data pricing policy from Bell was unprecedented here in Canada...even compared to what the US carriers can offer.

[Jason Dunn]

Am I missing something here? Since November/07, Bell Canada has been offering what is essentially unlimited internet access on their HTC Touch phone.

What you're missing is that CDMA is simply not an option for me. I need the flexibility of GSM, because every few months I'm changing/testing/reviewing new phones. CDMA is a no-go for me, no matter how cheap the rates are. I've toyed with the idea of getting a phone with Bell, then keeping a cheap GSM package just for testing, but I'd need a Windows Mobile Standard device from Bell with a keyboard. Right now they only have the original Q - maybe if they get the Q9h this would become a viable option for me.

I thought that this data pricing policy from Bell was unprecedented here in Canada...even compared to what the US carriers can offer.

It is unprecedented, but the vast majority of Windows Mobile users are GSM users, and if they want to be able to pick up and use any phone from around the world, they need a viable GSM data plan.

I was really hoping that Bell's $7 data plan would put pressure on Rogers and Fido to improve their offerings, but that hasn't seem to have happened thus far. :mad:

[mrmagoo]

What you're missing is that CDMA is simply not an option for me. I need the flexibility of GSM, because every few months I'm changing/testing/reviewing new phones.

If you need to have a GSM based phone or want to use an unlocked GSM phone, your right, you're out of luck here in Canada. The various forums had always indicated that just because one carrier comes out with a good plan, the others don't necessary follow. That seems to be the case as Rogers/Fido haven't followed suit.

I've been a GSM phone user for the last 8 years, but, due to the Bell's plan, I convinced the company to purchase the Bell voice/data plan. I rarely need to travel outside of Canada for business, so, I really don't have any need for a GSM phone for business. I personally still carry my unlocked GSM Audiovox SMT5600 Smartphone for personal travel and because, when I travel overseas to Europe/Asia, I want a cellphone number that anyone can still reach me in case of Emergencies. I have a couple of other unlocked GSM phones so when I travel I also purchase a local SIM card for that country.

***long quote trimmed by mod JD***

[kirkyuhnke]

There's no question about, even here in the states, having a CDMA carrier can feel limiting. Sure, I can switch phones whenever I want via their online interface but I can only use phones that are CDMA and are sold by Sprint. Rumor is, that is now changing. Sprint and Verizon have said they will allow foreign CDMA phones on their network. That doesn't change the fact that most of the world uses GSM and most cool (hard to get in the US) phones are GSM. Oh well, personally I'm willing to deal with it to get the great plan and data pricing I have with Sprint. At&t wanted to charge me $40+ for unlimited data and I wasn't interested in that.

[Ronil]

I am on 1 GB plan with Fido for $65 a month. This is high but I do need a lot of data and $65 cover's me entirely (have yet to even get close to this upper limit). This is not advertised but if you call them they will give it to you. Also if you are nearing the end of your contract Fido retention can give you a similar plan for about $30 a month with Call Display and about 200 day time minutes and free after 5pm.

Our plans are not as good as the US but considering a year ago we had 25MB plans for $65 to today having the same price plan having 1GB of data we are heading the right way.