Infinite Wireless data plans have no overage charges
TORONTO – Rogers Communications today said it will introduce unlimited wireless data plans with no overage charges starting tomorrow (Thursday), on its main Rogers brand.
Also, said the company, it plans to launch new financing options to give customers more affordable smartphone and device options.
Rogers Infinite Wireless plans with unlimited wireless data will start at $75 for 10GB of high speed data for every line on its fastest LTE network, reads the company release. Service plans of $95 and $125 a month will also be offered for 20 GB and 50 GB, respectively.
What we’re seeing here is a 25% decrease since prior to this announcement, 10 GB of data cost Rogers customers $100/month.
Beyond those GB benchmarks, customers can use unlimited data, but at reduced speeds, down to 256 Kbps upstream and down “which still allows simple browsing, engaging in social media, streaming video, and sending email and text messages,” adds the release. If customers want more high speed data, they can purchase a Speed Pass for $15 for 3GB. Customers can also pool their data with family and friends, eliminating the need to monitor data use.
“Canadians want worry-free wireless and these new plans will give our customers peace of mind so they can use as much data as they want,” said Joe Natale, president and CEO, in the release. “This is about putting our customers first, and helping them get the most out of their wireless services. These plans represent another critical step forward in our commitment to creating the best experience for our customers.”
The upcoming new device financing options will be made available so customers can purchase any device they want at $0, any day of the year. Then, once their device is paid off, customers will only pay for their monthly service plan.
These moves come as subscriber growth in the wireless industry among the Big Three (Rogers, Bell and Telus) has tapered this year while cheaper, more data usage friendly plans from the likes of Freedom Mobile and Vidéotron are seeing those companies claim more net subscriber growth.
Freedom, especially, has been prominent with effective ads featuring actor Will Arnett pounding home the message that only Freedom protects customers from data overage charges.
This is a key change to the incumbents’ wireless business in Canada and shows a shift in carriers’ thinking here, because Bell and Telus will have to follow suit, said Scotiabank telecom and media analyst Jeff Fan. (UPDATE: Telus told Cartt.ca this afternoon it will now launch a new plan tomorrow, "a promotional offer for new, renewing and existing BYOD customers who can get 10GB plus 5GB of bonus data starting at $75 for BYOD," expiring July 2, a Telus spokesperson said in an email. UPDATE #2: Bell has also matched Rogers' pricing, but just for a limited time offer, expiring June 30.)
“In our view, incumbents do not go unlimited until it is absolutely necessary. That is, they believe the long-term revenue benefit will more than offset the near- to medium-term risk of re-pricing and the loss of overage (revenue),” wrote Fan in a note to investors today.
"It believes that the benefit of customers moving up on ARPU to unlimited will offset the re-pricing impact and that this will result in a cost benefit due to lower inbound calls from overage complaints." – Jeff Fan, Scotiabank
While in the near term, the re-pricing will be financially negative for Rogers and the industry as consumers take advantage of cheaper data, “RCI believes that these plans will re-accelerate data and service revenue growth for the industry, with users becoming more comfortable to use their data,” wrote Fan. “It believes that the benefit of customers moving up on ARPU to unlimited will offset the re-pricing impact and that this will result in a cost benefit due to lower inbound calls from overage complaints.”
Fan predicts the Canadian incumbents will show a near-term ARPU dip, followed by a rebound, which is what happened to Verizon and AT&T when they matched T-Mobile’s unlimited offering, Stateside (see Scotiabank image below).
Unlimited subscribers will also have to be e-bill and auto-pay customers, which will also bring down costs, just like Freedom’s Big Gig must be. The equipment installment plans are also assumed to significantly bring down the costs of handset subsidies from around $500 each to $100, wrote Fan.
“Freedom’s $60/10GB flagship plan is already unlimited and throttles after 10GB (14GB with bonus data), and Freedom already introduced 100GB overage allowance to keep customers at max speed beyond the 10GB/14GB limit. However, Freedom does not use the ‘unlimited’ banner,” added Fan, examining the impact on the rest of the industry.
“With Rogers’ move, we think Freedom will at minimum have to call its plans ‘unlimited’ and may even have to consider reducing the $60 price to keep subscriber adds momentum.”
These new plans from Rogers are also likely to make government and regulators, who have been adamant in their calls for more affordable wireless plans which include more data, pleased.
“Today’s announcement further strengthens the choice and value we offer our customers,” said Brent Johnston, President, Wireless Services. “We anticipate these new plans will be popular with our customers for years to come.”
The new Rogers Infinite plans are part of a comprehensive multi-year program to invest and improve our customer experience, adds the company statement.
“Canada has some of the fastest wireless networks in the world,” added Natale. “The new Rogers Infinite plans will help Canadians take full advantage of wireless in their everyday life. These new plans will help our customers unleash the full potential of 4G wireless services today and 5G wireless services tomorrow.”
