'I feel cheated': Big telcos hike prices for $60 plans with 10 GB, sparking complaints - Action News
Home WebMail Friday, November 22, 2024, 12:24 PM | Calgary | -10.5°C | Regions Advertise Login | Our platform is in maintenance mode. Some URLs may not be available. |
Business

'I feel cheated': Big telcos hike prices for $60 plans with 10 GB, sparking complaints

Telus, Rogers and Bell are each raising the price on their coveted $60 10 GB phone plans. The move has sparked complaints from customers who feel they were lured into a deal that no longer exists.

Telcos say they can change the price on these month-to-month deals

Howard Lorentz of Kitchener, Ont., calls the $10 price hike by Telus for his $60 10 GB plan a 'bait and switch.' (Submitted by Howard Lorentz)

When Telus, Rogers and Bell each briefly offered a monthly $60 phone plan with 10 GB of data, it sparked pandemonium as customers waited in long lines, determined to snag the deal.

Now, some of those customers feelburned because, a little more than a year later, the plans are going up in price.

"It's no longer a great deal," said Ravind Nanubhai of Brampton, Ont., after learningthat his monthly $60 plan with Telus is jumping to $70 in March.

"I spent quite a number of my hours in the daytrying to get this deal and now I feel just sort of duped."

For about a week in December 2017, the three telcos offered the $60 bring-your-own-phone plan with 10 GB to customers in Ontario, Alberta and B.C.

Steve Mann of Vancouver said the $5 price hike for his $60 10 GB phone plan isn't justified. (Submitted by Steve Mann)

Starting in March, Telus is upping themonthly price by $10.

Bell and its discount brand, Virgin, will hike the price by $5 a month, also in March.

Already this month, Rogers and its discount brand, Fido, raised the plan's monthly price by $5.

"It's such a customer-B.S. move," said Steve Mann of Vancouver who got hisnotice in January that his $60 Fido bill would soon climb to $65.

"These are fantastically profitable companies and you're telling me you have to impose an eight per cent increase?"

The big three telcos offered the deals in late 2017 after newer competitor, Freedom Mobile started marketing a$60 plan with 10 GBin an attempt to acquiretheir customers.

Consumer advocateLaura Tribe saidcustomers' frustration with the price hikes is rooted in the fact that many Canadians believe they pay too much for their wireless plans.

She said the $60 deals made peoplefeel they were finally getting a break from one of the major providers.

"It felt like they had won the lottery," said Tribe, executive director of Open Media, an advocacy group in Vancouver.

"To have that taken away feels like a bit of a kick in the teeth."

Once the cellphone plan wars began in December 2017, customers rushed to their local dealers to sign up for a cut-rate deal. (CBC)

Molly Schleihauf saideven at$65 a month, her 10 GB Bell plan is still a good deal: in Ontario, the big three telcos' current rate for a phone plan with 9 GB is $110 a month

But she's still unhappy withthe price hike, because she saidshe was under the impression the termsof her plan wouldn't change.

"I can't believe they can do that," said Schleihauf who lives in Rodney, Ont.

"I would call it gouging."

It's not a contract

Bell, Rogers and Telus said they can raise the price of the $60 bring-your-own-phone dealsbecause theyaren't fixed-contract plans, butinstead, month-to-month deals.

"In a highly competitive marketplace we occasionally adjust prices on these types of no fixed term plans," said Bell spokesperson Nathan Gibson in an email.

Rogers spokespersonBill Killorn said in an email that the company regularly reviews and adjusts plans "to reflect ongoing network and service investments."

He said the current $65 plan with10 GBstill offers "great value."

Telus justified its $10 price increase in a letter to affected customers by explaining that it has been working hard to "dramatically improve" its network.

"We do not take the decision to increase the cost of services lightly," said spokespersonLiz Sauv in an email to CBC News.

'I feel cheated'

Telus customer Howard Lorentz argues that, in his case,Telus had no right to hike the price.

He claims when he signed up for the plan at a Telus store in Kitchener, Ont., the employee he dealt with assured him the price wouldn't change.

"They have done a bait and switch," said Lorentz who gave up a cheaper plan with less data to take the $60 deal with 10 GB.

"I feel cheated."

Telus says its 'commitment period' where the price of a plan won't change lasts for 30 days on month-to-month contracts. (Telus)

Lorentzsaidwhen he called this month to complain about the $10 price increase, a Telus rep told him that shetoo had previously thought that the plan'sprice was permanent.

Lorentz also showed CBC News his plan agreement which states: "We guarantee that during your commitment period, your monthly plan services and rate won't change unless YOU say so."

30 days notice

Telus didn't address Lortenz's claims about his conversations with Telus employees. But it said that the "commitment period" referred to in Lorentz's agreement is only good for 30 days on a month-to-month contract.

"They told me that it never expired in the store. Now they say it expires every month. Who are you supposed to believe?" said Lorentz.

After complaining to Telus, he said he was offered five extra GB a month, which he declined because all he wants is his $60 deal back.

When Fido customer Manncomplained, hesaid he was given a $30 credit and 3 GB of extra data per month for a year.

Allcustomers in this story havefiled or plan to file a complaint about the price hikes with theCommission for Complaints for Telecom-Television Servicesan industry organization that resolves telecom customer disputes.

Open Media'sTribe saidthe best remedy is more competition which will help drive down prices and keep them down.

The CRTC, Canada's telecom regulator,launched a review this week to examine the mobile wireless market and whether more action is needed to improve affordability for consumers. Canadians can submit comments until May 15.