Posts Tagged ‘vonage’

3G IPhone plans are not the only pricey offerings from Rogers

Posted in General on July 2nd, 2008 by loconet – 2 Comments

Consumers might be able to get something positive out of the recent outcry over the arguably pricey 3G IPhone plans offered by Rogers. The massive attention this issue is gaining online is prompting Canadians to question the way Rogers is conducting business, something which I have personally questioned for a while. This new found interest by consumers to inform themselves about competitors and unmask what some might label as monopolistic price gouging behavior, can only help the country’s economy in the long run and secure technological progress for the future. With that spirit then let’s compare another service Rogers offers: The Home Phone.

For those not familiar with it, Roger’s Home Phone service provides residential customers with a land-line phone connection much like that of offerings from Bell, Primus, etc. The service started as two offerings: Classic landline over telephone lines, and VoIP. As of June 2008, Rogers will only be offering the VoIP option (forcing existing classical land-line consumers to switch or cancel) so let’s compare their product with other similar VoIP services: Vonage and Primus.

Since I want to keep this simple while looking at the most features available, let’s compare their high-end options for Unlimited North America calling.

Rogers

How much: $41.95 + $5.95 (System access fee – yes, that mysterious fee again) = $47.9.
Features: Free 4-6 out of 15 available ($4.00 for each additional feature).
Long distance North America: Unlimited North America (+$19.95).
Free Europe calling: None – must add as different package ($24.95).

Total: 47.9 + 19.95 + 911 fees ($0.19) Hearing Impaired Assistance (HIA) fees ($0.22) + taxes = ~$77.13

Vonage

How much: $39.99
Features: All 21 features included.
Long distance North America: Free unlimited calling.
Free Europe calling: Free unlimited calling to: Italy, France, Spain, UK and Ireland.

Total: 39.99 + taxes = $45.19

Primus

How much: $49.95
Features: All 10 features included.
Long distance North America: Free unlimited calling.
Free Europe calling: None.

Total: 49.95 + 911 Fee ($0.40) + taxes = $56.90

I realize there are many VoIP options out there, some more expensive and some cheaper than these but I just wanted to compare Roger’s offering with two of the other popular options. Additionally, I have not taken into account individual international calling rates, which in fact would support my point even further as Roger’s rates are gernally a few cents higher per minute throughout the list of countries.

In conclusion then, much like the IPhone 3G plans, Rogers is not only positioning their service at a higher price but they are offering less for higher prices! Sadly there are a lot of people blindly buying into this. Thankfully for consumers who inform themselves, Rogers is NOT the only available option for VoIP and, at least for now, we are able to choose freely from one of the competitors. Unfortunately for IPhone fans in Canada, Rogers seems to be the only option for now. Not a good idea to have let Rogers buy out the only other GSM competitor huh?

Assumptions: Taxes are for Ontario (5% GST + 8% PST for telecomunication goods), one time setup fees not taken into account. Intangibles such as customer support quality not taken into account – I personally believe Rogers would lose big on this item.