Big Three Have No Plans to Introduce Smartphone Instalment Plans

by Istvan Fekete on September 16, 2015

Image Courtesy BGRSorry, Canadian smartphone buyers who are looking to buy the latest smartphones on instalment plans, but the Big Three have no plans to support this pricing model, because there is no incentive for them to adopt it, reports the Globe and Mail.

There is a consensus among Canada’s three national carriers: What has become widespread among US wireless players over the past two years doesn’t represent interest for them. The trend was started in 2013 by T-Mobile, and even Apple has adopted it: During the “Hey Siri” media event last week, the company announced that it will start offering customers the option to lease unlocked versions of the latest iPhones, with no money down and 24 monthly instalments.

We understand that behind this pricing model there is a heavy push for yearly upgrades, but since Apple sells hardware, it’s a no-brainer that it wants to boost the sales of its devices released every year. By adopting this pricing model, it makes upgrades easy and affordable: You can walk into a store and get the latest iPhone when it becomes available. All you have to do is pay your monthly instalments on time, and take care of your current iPhone. That’s it. The same goes for US carriers: They offer similar upgrade options.

Canadian carriers are keeping an eye on their US counterparts, but according to execs speaking at the BMO Media and Telecom Conference in Toronto, they don’t plan to adopt this model, as the subsidy model works well.

And, by the way, it doesn’t seem there is a big customer demand for zero-money-down phones, according to Telus executive John Gossling. Canadians like to pay between $200 and $400 – depending on the phone model – and then pay the rest of the subsidy in two years while they are locked to a carrier.

Yup, that’s what every single Canadian wireless customer is after.

Did you like this post? TheTelecomBlog.com publishes daily news, editorial, thoughts, and controversial opinion – you can subscribe by: RSS (click here), or email (click here).

Written by: Istvan Fekete. www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube.

Previous post:

Next post: