The new Apple iPhone 3G is set to launch in Canada with Rogers Communications apparently set as the sole distributor.For those who use their wireless devices for more than a phone conversation, the introduction of this device holds many attractions.What wasn’t attractive were the prices Rogers were going to charge for its use.Minimal services would start at $60 per month and rise from there.Online pricing by Rogers for this device has reported to be $199 to $299.
However, in what may be an unprecedented move in their corporate history, Rogers have announced that with the consumer signing on for a 3 year contract prior to August 31, 2008 a reduced monthly cost could be had.This is good news for the consumer; or is it?The key here is the August 31 deadline.After that, all bets could be off.The pressure for Rogers to act has come directly from consumers and a 50,000+ name petition.Still, Rogers customers will not be able to purchase the iPhone without this contract.
The problem Rogers are facing is that they may have pushed their customer’s too far.The purchasers of this phone are tech savvy and particularly interested in having portable internet access.Rogers have placed limits on the usage within their plan (as they always do) where other countries and carriers have unlimited usage.Rogers business plan seems to be pay for what you use which is a good business practice of course however the consumer is already paying for that access.Rogers typically want limits so they can extra bill where the costs traditionally rise to what many would consider unreasonable levels.
The question is will they settle for this temporary retreat or will they continue to pressure the wireless carriers to act responsibly.It is apparent that their entry into this market was poorly planned and executed.Equally apparent is the displeasure of Apple who by refusing to publicly comment has made a very strong statement.However, Rogers has vehemently denied any rift between the two companies.Regardless, Apple have made no announcement to sell the iPhone 3G in any of its stores in Canada.This would apparently reinforce a “protected” territory agreement.This writer sees this as anti-competitive.But then again, what is competitive in Canada’s wireless industry?
Hopefully, this story is not yet over and continued pressure from both the consumer and Apple might force more competitiveness into the cellular/wireless industry in Canada; competition that is comparable to elsewhere in the world.It would be a welcome relief to the consumer.In the interim, it would appear that abuse of the customer still carries on by those companies who are less interested in fair play and customer service than they are in self service.