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Susan Taylor and Wojtek Dabrowski Reuters Saturday, June 28, 2008
CREDIT: Apple Corporation CEO Steve Jobs REUTERS/Kimberly White
OTTAWA/TORONTO (Reuters) - Rogers Communications Inc, owner of Canada's biggest wireless carrier, announced pricing plans on Friday for Apple Inc's 3G iPhone, prompting an outcry about prices from angry customers.
The sleek, multimedia device will hit Canadian stores on July 11. But soon after Rogers unveiled its plans, a protest website began collecting signatures and comments that its creators plan to send to the company on the day of the launch.
"This plan is a joke compared to other countries," wrote one complainer, while another wrote: "What a rip off!!!"
Canadians have long bemoaned high cost of wireless service compared to those in the United States, and many blame lack of competition in a relatively thinly populated country that stretches across six time zones.
Aside from Rogers, only Telus Corp and BCE Inc are national carriers, and Rogers is the only one of the three with the GSM wireless technology that the iPhone uses.
Rogers and its Fido wireless unit said they were offering voice and data plans ranging in price from C$60 ($59) to C$115 ($114) a month for the iPhone, a price that includes unlimited Wi-Fi access at Rogers and Fido hotspots.
The top-end C$115 plan will buy 800 weekday minutes for voice calling and unlimited time at evenings and weekends.
It will allow users to send 300 text messages and have 2 gigabytes of data usage -- something that Rogers says is enough for about 1 million text e-mails, or 16,000 Web pages, or 7,000 photo attachments.
By comparison, U.S. carrier AT&T has said it will offer unlimited 3G iPhone data plans for $30 a month in addition to voice plans that start at $39.99 a month.
The iPhone combines Apple's ubiquitous iPod portable music player with a smartphone that can receive e-mails wirelessly and let users browse the Internet.
Prices for the phone are almost the same in Canada and the United States -- C$199 or $199 for the 8 GB version or C$299 or $299 for the 16 GB version.
But Rogers requires a three-year contract while AT&T is asks for a two-year commitment only.
Its exclusive deal to bring the iPhone to Canada has been a winning stroke for Rogers, whose stock rose 2.3 percent on April 29, the day of the announcement. Some analysts said that news was more important than the strong financial results the company released that day.
On Friday, Rogers shares rose 38 Canadian cents to close at C$39.52 on the Toronto Stock Exchange.
The iPhone has been tagged as a potential challenger to Research In Motion Ltd's 3G BlackBerry Bold, which will roll out globally this summer and cost between $300 and $400.
There will be those who buy the phone because they want the phone, and they'll pay whatever the price is. Apple must have been party to the discussions around Rogers' pricing plans; not that Apple has any control over Rogers decisions in that area. One would wonder what they think of the plans. Apple though is in a bit of a quandry; they know that Canadians want their phone, and they can't wait for another GSM carrier to come on the scene.
We'll see how iPhone retailers will do July 11 and after. Americans will line up in droves to get the new phone me thinks, but me also thinks you won't see the same thing up here. And if it does fizzle out up here, and regardless if Apple was ever involved in the Rogers/Fido pricing plan structure stuff, it would be interesting to see what Apple's next move would be with Rogers.
The second coming of the Jesus Phone, and we just figured out who the antichrist is: Ted Rogers.
A friend of mine works at a Rogers store and they and all the stores in there chain are pre-selling the Iphone by filling out the paperwork for the contract and paying the price of the phone. Each contract is numbered and they go by the numbers based on how many come in each shipment. At my friends store there is already 500 sold. And through the chain of stores close to 40 thousand have been sold
40 thousand idiots in Canada so far... good to know people have extra money to throw away on something such a blatant rip off. All I can say is I hope they found out how much they are getting screwed AFTER they are locked into the contract. iPhone = Cool, Rogers = Satanic Greed
my theory: rogers dings the S*** out of those who CRAVE his iPhone, will pay ANYTHING for it. then Ted turns around, takes the profits and buys the Buffalo Bills who will play out of the Rogers iPhone Stadium.
"There's a sucker born every minute".....PT Barnum (1810-1891) AND Ted Rogers (1933-present )
Oh and can we expect NEWS1130 to do 'streeters' on July 11th outside Rogers Wireless talking to gleeful iPhone buyers like it's the Second Coming?? I'll bet they do....nothing like ownership-driven news drivel. LOLOL
my theory: rogers dings the S*** out of those who CRAVE his iPhone, will pay ANYTHING for it. then Ted turns around, takes the profits and buys the Buffalo Bills who will play out of the Rogers iPhone Stadium.
"There's a sucker born every minute".....PT Barnum (1810-1891) AND Ted Rogers (1933-present )
Oh and can we expect NEWS1130 to do 'streeters' on July 11th outside Rogers Wireless talking to gleeful iPhone buyers like it's the Second Coming?? I'll bet they do....nothing like ownership-driven news drivel. LOLOL
Translation: I'm a bitter ex-Rogers employee...blah blah blah...Ted sucks...blah blah blah...radio is dead...blah blah blah...etc. etc. ad infinitum.
A friend of mine works at a Rogers store and they and all the stores in there chain are pre-selling the Iphone by filling out the paperwork for the contract and paying the price of the phone. Each contract is numbered and they go by the numbers based on how many come in each shipment. At my friends store there is already 500 sold. And through the chain of stores close to 40 thousand have been sold
I wonder how many of those folks signed up for an iPhone ahead of the release of these data plans. And how many of those people want to wriggle out of it now.
Rogers HO has advised all Rogers Wireless outlets they can no longer take names and money in advance and hold phones on reserve.
This is nothing unexpected by Rogers. They gouge their customers BECAUSE THEY CAN. However, I can also say that Telus and other cell service providers in Canada also screw their customers BECAUSE THEY CAN.
CRTC or competition bureau or some other body needs to step in and stop the gouging.
Bell just announced today that it will bring the Samsung Instinct to Canada and with it unlimited data. Bell's most basic voice plan with unlimited data would run $40.
Bowing to public pressure, Rogers Wireless Inc. has opted to slash its data fees as the launch of the iPhone draws near.
Customers who purchase an iPhone and sign up for a three year contract any time between July 11, when the device goes on sale, and the end of August will be eligible for a $30-per-month data plan giving them access to 6-Gigabytes of data. Rogers previously had charged $100 for a 6-GB plan.
A Rogers spokeswoman said the decision to offer the new plan was based on “customer feedback.”
The special plan is available not just to iPhone customers, but any Rogers customer with a 3G next-generation smart phone.
“We listened to our customers, everybody from those who are very tech savvy to those who just knew they wanted this device and were really enthusiastic and didn't know how they were going to use the data but knew it was a data device,” Rogers spokeswoman Liz Hamilton said.
“So this will give them a great opportunity.”
According to Rogers' calculations, with 6 GB of data, users will be able to visit 35,952 web pages, or send and receive 157,286 e-mails or watch 6,292 minutes of YouTube videos in a month.
Rogers also announced that it would hold special launch day events to welcome the iPhone to Canada on Friday. Six Rogers Plus locations and one Fido store will open at 8 a.m. on Friday with special promotions and free breakfast.
Rogers has faced intensifying criticism for its iPhone pricing plans over the past few weeks. More than 50,000 potential customers have signed an online petition at ruinediphone.com protesting Rogers voice and data plans as well as the company's decision to force all iPhone buyers to sign three year contracts.
Other international carriers, such as AT&T Inc. in the U.S., have opted to offer the iPhone for sale without a contract, albeit at a significantly higher price.
The Rogers Plus locations which will open early on Friday are:
I was gonna go with an Iphone (end of my cell contract). Cuz those bastards at Rogers figured they could screw us, I went with Verizon instead. Rogers may get my money at the end of my new contract...in a couple of years or so.
Software problems bug Apple's launch of new iPhone
By PETER SVENSSON, AP Technology Writer Friday July 11, 2008
Customers queue outside the Apple Store in London for the launch of the iPhone 3G. (AFP/Leon Neal)
Apple Inc.'s new iPhone went on sale Friday to eager buyers worldwide, but there were problems getting the phones to work.
Kenny Pichardo, 24, was the first to buy an iPhone 3G at an AT&T store in the New York borough of Queens, but he said it took the store half an hour to get the phone working.
That boded badly for the approximately 70 people after him in line. Pichardo had camped out overnight to be first.
A spokesman for AT&T Inc., the exclusive carrier for the iPhone in the U.S., said there was a global problem with Apple Inc.'s iTunes software that prevented the phones from being fully activated in-store, as had been planned.
Instead, employees are telling buyers to go home and perform the last step by connecting their phones to their own computers, spokesman Michael Coe said.
When the first iPhone went on sale a year ago, customers performed the whole activation procedure at home, off-loading employees. But the new model is subsidized by carriers, as is standard in the wireless industry, and Apple and AT&T therefore planned to activate all phones in-store.
Enthusiasm was high for the new model ahead of the 8 a.m. launch in the U.S. At the flagship Apple store on Manhattan's Fifth Avenue, a line of hundreds encircled the block. Many of them were already owners of the first iPhone, suggesting that Apple is preaching to the choir with the new model, which updates the one launched a year ago by speeding up Internet access and adding a navigation chip.
Thanks to subsidies by the carrier, the price has also been cut substantially to $199 for the cheapest model in the United States.
Alex Cavallo, 24, was in line at the Fifth Avenue store, just as he had been a year ago for the original iPhone. He sold that one recently on eBay in anticipation of the new one. In the meantime, he has been using another phone, which felt "uncomfortable."
"The iPhone is just a superior user experience," he said. The phone also proved a decent investment for him: He bought the old model for $599 and sold it for $570.
Outside an AT&T store in Atlanta, more than hundred people had lined up.
Edward Watkins, a 34-year-old engineer and avowed "techno nut," said he didn't mind paying an extra $10 a month to the carrier to upgrade his phone.
"I'd pay an extra $30 or $40 a month for that. It's a smoother running phone. It's driving a Beamer as opposed to a Chevy Metro."
Fueled by bags of Doritos, three games of Scrabble and two packs of cigarettes, 24-year-old grad student Nick Epperson stayed up all night for a phone, after selling his old one online. When asked why he was waiting in line, he responded simply "Chicks dig the iPhone."
The new phone went on sale Friday in 22 countries. In most of them it was the first time any iPhone was officially sold there, though several countries have seen a brisk grey-market trade in phones imported from the U.S.
On the Japanese market, the iPhone's capabilities are less revolutionary, where people have for years used tech-heavy local phones for restaurant searches, e-mail, music downloads, reading digital novels and electronic shopping.
The latest Japanese cell phones have two key features absent on the iPhone — digital TV broadcast reception and the "electronic wallet" for making payments at stores and vending machines equipped with special electronic readers.
But they don't have the iPhone's nifty touch screen or glamour image. By Friday morning, the line at the Softbank Corp. store in Tokyo had grown to more than 1,000 people, and the phone quickly sold out.
"Just look at this obviously innovative design," Yuki Kurita, 23, said as he emerged from buying his iPhone, carrying bags of clothing and a skateboard he had used as a chair during his wait outside the Tokyo store. "I am so thrilled just thinking about how I get to touch this."
The phone went on sale first in New Zealand, where hundreds of people lined up outside stores in New Zealand's main cities to snap it up right at midnight — 8 a.m. Thursday in New York.
Steve Jobs knows what people want," Web developer Lucinda McCullough told the Christchurch Press newspaper, referring to Apple's chief executive. "And I need a new phone."
In Germany, T-Mobile stores reported brisk sales, particularly in Munich, Hamburg and Cologne, said spokeswoman Marion Kessing.
___
AP Business Writers George Frey in Frankfurt, Germany, Yuri Kageyama in Tokyo and Greg Bluestein in Atlanta contributed to this report.
will this become the next Nintendo Wii? Can't keep it in stock and consumers checking back time and again?? Or you could always try Ebay!!! No thanks my $20/mo Pay 'n Talk gets the JOB done (little play on words there)
40 thousand idiots in Canada so far... good to know people have extra money to throw away on something such a blatant rip off. All I can say is I hope they found out how much they are getting screwed AFTER they are locked into the contract. iPhone = Cool, Rogers = Satanic Greed
Come on! Every cell plan in this country sucks ... iphone or not. You have a Canadian cell plan, you are getting screwed. Big deal.
We all spend money on something that some one else will think is stupid. Lay off ... and no I didn't buy one. I think any one who has an iphone is a @*$% loser. Oops!
shed a tear everyone for the 300 poor souls in line outside the Toronto flagship store, who waited in the rain with promises of being offerred brekkie while waiting for their prized phone, only to be given a granola bar and NO phone...
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