Tech Rant: Upgrading Cell Phones (Update 2)
Today I went into the Virgin Mobile store and was casually browsing for a new phone. I’ve got a mid-tier plan that originally offered a $300 subsidy in return for signing a two year contract. While this isn’t the biggest subsidy out there, it still was a substantial chunk off of any device and for the monthly price I am paying, $45.00 CAD, it offered a fair trade between up front device cost and monthly charges.
In two years a lot has changed in the Canadian mobile phone world. I got my original plan right when the Canadian government boldly made a move in public interest to cut contract lengths from three years to two. This had the consumer in mind, considering most phones at the time were known to last two years or less and were seemingly outdated by newer and better technology overnight. It was a beneficial move initially, but now carriers are trying to cram three years of contract into two so the monthly cost of plans has gotten significantly higher while the carrier subsidy has not changed.
For example, a comparable plan to the one I’m currently on is now $70.00/month. That is an additional $600.00 over two-years! For that price I could buy two high end unlocked smartphones and still come out ahead.
Previously this would have never been an issue. The whole conflict would have been moot, since due to carrier loyalty my plan would be grandfathered and the subsidy offered again. However, when I asked the counter representative how much a phone would cost me I got the reply,
You can’t upgrade with this plan. You’re not paying enough per month.
That was not the answer I expected and certainly not the answer I wanted to hear. I was given a further option of calling customer support and trying to negotiate with them making the whole thing a waste of resources. It would’ve just been easier for everyone to if I was told, “here you go! Your plan is grandfathered and you are good to go.” I would’ve paid $400 right there to the phone company for a high end device and guaranteed another two years of income for them. But now I’m going to have to waste both my time and their money calling customer service agents to argue my case.
I understand the nature of a business is to make money but this practice is just giving customers the middle finger. If I was moving from a three year plan to a two year plan the math would have added up: $45.00/month totals $540 in income missed from that extra year year, but that is not the case and that still wouldn’t make it the right thing to do. Here in Canada we already pay one of the highest amounts for mobile phones in the developed world[source] and we the consumers are always getting the short stick.
In other countries it would be as easy as switching carriers. In the USA and UK there are plenty of independent budget carriers that lease space from larger networks and have very high value plans, but here in Canada even the budget carriers are owned by the mobile conglomerates and they just don’t compete. There are a few localized exceptions, but they’re often limited to spotty zone-based coverage and expensive out of zone rates.
So what’s the answer then? Well, if you find yourself in a situation like me, don’t just give in and start paying more per month. Don’t give the phone company your hard earned money just because they’re being greedy. Fight for your plan and if they don’t offer you loyalty, buy a high-end unlocked smartphone such as a Oneplus, the ZTE Axon Pro or the Xiaomi Mi5 (when it comes out).There are plenty of options out there, but before you take the plunge read reviews first and make sure your phone is compatible with your carrier.
I hope your experience dealing with your carrier is better than mine was. Have you had a similar problem before? Please comment below to let me know what you think.
Update: August 16, 2015
Today I contacted Virgin Mobiles call center. I was friendly but insistent. It’s not like anything I asked for was absurd: to sign onto my current plan for another two years in exchange for a new discounted phone. Instead I was told that I could not possibly do this, and that I should go buy a phone outright as that is the only way to keep my current plan. I responded that if I was to buy an unlocked phone then I’d move to a provider who offers cheaper plans as without a subsidy there is no reason for me to stay with Virgin. Even if a differet plan is only 5% less, I would do it on principle. I intend to continue paying for mobile service for many years to come and if Virgin doesn’t do something to support my loyalty they won’t be getting my money.
Update: August 18, 2015
I received the callback from a Virgin Mobile manager today and the news was as expected. I was clearly told that there was no way I could receive an upgrade and remain on my current rate plan. I was able to maintain my composure throughout the call despite being very upset that I am not being supported by a company whom I have given thousands of dollars to over the last few years. The manager even told me that they wouldn’t be able to credit me for my time wasted as “[that] is not [Virgin Mobile’s] problem.” By this point most people would have given up but I figure that I’m in this deep so I may as well continue. I suggested that since my issue is still unsolved, I would like to escalate even further and I was given the e-mail address for head office. I do not have any sort of faith that they will be able to resolve the problem, but if we all stand up together against this injustice perhaps there will be a change of bureaucratic policy.
I will continue to update this post until the conflict resolves.
tylor
August 12, 2015 - 7:41 pm
omg virgin mobile did this to me too last month it was so frustrating
Warren
August 16, 2015 - 5:53 pm
The same thing with Telus, I was $5 away from their ‘minimum’ monthly fee to get a phone for reduced cost. Instead I bought my own phone and took away as much as I could from their service. It’s outragous to charge so much when a new phone is a fraction of the cost even with their ‘deals’.
Kmaker
August 19, 2015 - 5:55 pm
Well now I know who to avoid when I get my next phone…
Josep
August 19, 2015 - 6:32 pm
Virgin mobile is the worst for pulling shit like this. First it was those scams of a ‘tab’ and now it is not letting people upgrade. I say screw them and find another provider!