Rogers Communications' iPhone Coup: Not All It's Cracked Up to Be?

If you’re an Apple (AAPL) fan who has been waiting for the iPhone — or at least an “official” version of the iPhone — for lo, these many months, your heart probably leaped at the word from Rogers Communications (RCI) supremo Ted Rogers this morning that he has signed a deal with Apple to launch a maple-flavoured version of the world’s most sought-after handset. If you have ever had a cellular data plan from Rogers, however, your heart probably leaped a little less high, and may even have let out a small sigh or shrugged its heart-shaped shoulders.

Why? Because as more than one person has pointed out, the fact that the iPhone is coming to Canada isn’t really the important thing. It’s important, of course, but everyone knew that it was going to arrive eventually. The *really* important thing is what it’s going to cost when it finally arrives — and not so much the phone itself, but the data plan. Will the word “unlimited” be used in conjunction with the word “data?” And if it is, will it actually mean “unlimited,” or will it mean something else that only appears in that special Rogers’ dictionary?

The nightmare scenario is that the iPhone comes, but the costs for service are so prohibitive — not so much for phone calls, but for data charges, Web surfing and so on — that it makes it ridiculous for anyone but a movie star or possibly a dentist to actually afford. Rogers and Bell are notorious for adding charges that boost even the most normal cellular bill into the stratosphere, especially when the user goes onto that thing called the “Internet” and does stuff with a regular app as opposed to the crippled WAP browser that most devices come with.

These are just the kinds of activities that iPhone users tend to engage in, of course — which is why Ted and the gang are so excited about getting them here, and even more excited that they will only work on the Rogers network. For me, I’d be a lot more excited if there was a reasonable data and Web-surfing plan attached to it.

Comments

[wallawallabingbang]

Why don't you let Apple and Rogers worry about that? Aren't you a bit peremptory?

Apple is a game changer. No need to second guess them and try to stir up FUD.

What a wet blanket you are...

[SteveSilver]

will Fido users, be able to get in on the Iphone, as we are on the Rogers network also?

[Robt1947]

note to wallawallabingt...the writer has let Rogers
"worry about that" for years, and they have proven
themselves to be well adept at gouging. more
competition will certainly fix that...someday.
good article. keep them coming!!

[iphonecanada]

I'm just happy it's coming.

[Competitionluvr]

As Rogers announced in the same meeting their intnetion to cap Broadband access (proudly commenting "we think we are the first in North america to do this" (!!!), it's probably a forlorn hope. Until we get REAL oversight in Ottawa, we will continue to be gouged. Unlimited data in US is now at 60-70 bucks, in UK at 20 bucks for 10GB!! Ever wonder why Canadian wireless carriers are 3.5x more profitable than their counterparts in other major markets?

Leave it to them (WallaWallaBingban) - best of luck!

[some otherguy]

Yeah, I'm sure the board meeting went something like: "Hey guys, we got the iPhone now! Let's make sure to charge so much no one will buy it! That'll be a huge money-maker for us!"

C'mon! Stop the whining. Do you think they would deliberately chose the worst possible option for themselves? If it's expensive there, then it's expensive. Either they lower the price or offer more for that price. They're apparently doing well with their current pricing structure, much as you might hate to pay it.

[some otherguy]

Right. Nothing like some journalist who has never run a business thinking he has more business acumen than the businesses he writes about.

[digivision]

didn't I just read earlier Ted rogers is implementig a different data plan ??
maybe cheaper??
you guys are right in being worried about the cost , what good is the iphone without a great data plan??
fortunately you still have wifi and possibly continue to be able to unlock it when you buy from the Apple store, buy the thing and stick it to the rogers , unlock it and use only the wifi capabilities.. Hitting them in their wallet it is the best way to hurt a corporate bastard

[peter02l]

What's this fuss all about, Ingram? Don't you think the iPhone plan in Canada should be judged against other plans IN CANADA? Any take of how much the Blackberry costs there with data plan?

[KenC]

Getting a reasonable price for a data plan is probably what took so long. Apple had to show that the iPhone had a winner, and then Rogers was willing to deal; otherwise, Rogers wasn't going to cannibalize all of its other lucrative data plans, for Apple.

[wallawallabingbang]

Hey, just what is it 'cracked up' to be anyway?

Rogers said next to nothing. Certainly set no expectations one way or the other.

You just HAD to write something I suppose...

Maybe you should let the story gel a bit first.

[seeksome]

Is there anything in Canada that isn't expensive they have a tax for everyone and everything and goverment run health care it is sad.But for a wholesale deal on Apple stuff and electronics go to:seeksomething.com

[sloppyg]

Great article Matt. This is the anti-climax that is Canada. I've always wondered how Rogers even stayed in business. I guess thats Ottawa's job. I've never met one person who is happy with Rogers. People either hate them and tolerate them, or hate them and vow never to go back. I hate them and will never go back. I've been a Mac user since 97, am well and truly long the stock but they could hand these bad boys out free and I wouldn't go near it.

I've been a customer of Orange in France, 02 in the UK, Virgin in the US, Telstra and Optus in Australia, and Telus and Virgin in Canada and I don't care what anyone on this page says as they've obviously never been a Rogers customer, they cannot be compared to anything else for gouging and customer disdain.

No doubt enough people will pay for it, and this is great news for Teddy R. But for Apple this is inconsequential at best and will take some shine off at worst. And for Canada, this is more of the same expensive over-taxed disappointment that is the great white North.

[tgarbutt]

Hello Mathew:

For the last year I have had the pleasure of 'sticking it to the man'. Ted Rogers. As many Canadian's, I took a quick trip to Buffalo NY last June and bought an iPhone (yes at the full 6 big). I quickly unlocked it and used my existing Rogers $20 per month rate to use everything but the smart voicemail. My internet access was via wifi, because Roger's does not have, God forbid, an unlimited usage plan.

When the new iPhone comes out (late June 08), I'll buy it at the local Canada Apple store (if available) or make the trip to Buffalo (your gas is still way cheaper!).

Since, contrary to recent erroneous media reports, Rogers does not offer unlimited internet plans, it will be interesting to see how much 'gouging' Rogers user fees will be. Regrettably, Canadian consumers have a long history of non-competitive, restraint of trade business practices (and Ted Rogers is one of the best). Pure Enronomics (see Note)!

I'm sure the new iPhone will be unlocked. I may even continue to use my current $20 per month Rogers account. And continue 'sticking it to the man' as, I'm sure many other educated Canadian's will. But more likely I'll use Voip over wifi.

Lest you think these comments 'extreme' take a look at the Globe & Mail comments.

Terry

Note: The Rogers press release didn't bother to mention that the usual Canadian media suspects (Rogers, Bell and Shaw) partition Canada (restraint of trade!), severely 'traffic shape' and routinely 'package drop' any encrypted (bit-torrent) data traffic. All with the full cooperation of the CRTC (the equivalent of your FCC).

[2bitRick]

I fully agree with my fellow Canadians regarding Rogers. I would not deal with them if they were the last cell phone company on the planet, nor would I deal with Bell after my last experience. That leaves only Telus out here in BC. I do not own a cell phone at present and have been waiting for the iPhone so I guess it will have to be unlocked if I do get one?
Remember that we in Canada are 1/10th the size of the US market spread from one end to the other with 7 major urban centers.

[meh]

two thumbs up, good article, we all know that rogers is a crook, they run a monopoly and charge whatever they want same with bell, instead of investing into making things better they setup tolls to slow down traffic and maximize profit. when it comes to cell phone plans and data US has way better plans. so altho it is nice it's coming it wont be cheap... either way i dont need multi-media so my rimm will do

[GE Smith]

you may not like Ted (...monopoly... crook etc.) but as it was said earlier... "They're apparently doing well with their current pricing structure, much as you might hate to pay it."

If you've been an owner of RCI over the last 5 years, you've gotta like your return and your increasing dividends.