Koodo Mobile’s Creative Discounts

by Jordan Richardson on March 22, 2010

Koodo Mobile, that creative little mobile brand started by Telus in 2008, is discounting its entire line-up of phones. Two phones, the LG Masterpiece and the Motorola Rival A455, have been reduced by $50. The rest of the line-up has been reduced by $25.

All of the phones are available using Koodo’s tab feature, which according to the website lets customers “run a tab towards the price of a new mobile phone.”

Tab essentially defers $150 off the price of a new cell phone by applying the dollar amount as a sort of interest-free loan on the customer’s account. With these new discounts, then, all of the phones on Koodo Mobile’s menu can be had for $0 by using the tab feature. Customers aren’t exactly billed for what’s on their tab unless they cancel their service with Koodo Mobile.

Tab gets paid down every month by applying 10% of the bill towards the outstanding amount on the tab. Once the tab is paid off, it begins to accumulate and customers could, in theory, get a free $300 should they accumulate $150 after paying off their original tabs.

The whole service is designed to keep customers with Koodo Mobile for as long as possible by promising incentives for loyalty.

Koodo Mobile is a discount service provider launched by Telus. While it has a pretty limited amount of phones compared to other providers, Koodo’s advertising campaigns and lower prices have been the company’s calling card.

Koodo Mobile is currently using Telus’ CDMA network and has no access to the HSPA network, which means the company can’t offer smart phones as of yet. There are rumours that suggest Telus might be planning on sharing its HSPA network with Koodo Mobile soon, but there’s nothing official on the books regarding that.

In any event, it’s clear that Telus is hoping to expand its customer base by using Koodo Mobile’s unorthodox discounting. With a young and hip ad campaign aimed largely at college students and, with this latest discount, a round of phones available for $0 using the tab feature, Koodo is continuing its quest to become Canada’s discount service provider.

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Written by: Jordan Richardson. www.digitcom.ca >. Follow TheTelecomBlog.com > by: RSS >, Twitter >, Identi.ca >, or Friendfeed >

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