Tag Archives: cellular

Cutting the cord – Part 4 – Cellular service

The PolyBlog
October 26 2015

I’ve already covered my efforts to cut the cord for internet (Cutting the cord – Part 1 – Internet), TV, and home phone. Next on the list is cellular service. As with the first internet one, this isn’t about eliminating cell service completely, it’s about reviewing your packages and finding ways to get more service for the same price or, more often than not, the same service for less money.

In the cell market in Canada, you have the two biggies — Rogers and Bell. They fight it out, they gouge everyone, the CRTC slaps them, they reset, they duke it out some more. Generally speaking, our cell costs are much higher than anywhere else in the world. According to an OECD report based on comparable 2013 data across 34 countries, we’re the most expensive for data only plans and top ten for data and phone. Not surprisingly, that puts us dead last for number of wireless subscriptions per capita. Is it all infrastructure costs that are driving the difference? Nope — it’s profit margins –> Canadian carriers are third on the list of “revenue per user” in the G8 and fourth across all the countries. We get gouged, no question about it. The CRTC knows this, and has put the screws to the telecom companies on things like extortionary three-year cell packages and transparency in price-gouging, but not much to reduce overall costs.

Cost differentials are left to the secondary tier of cellular companies to drive down costs through competition — Telus, Wind, Koodo, Virgin, Fido, a bunch of others. You might think that was a decent range of competitors. But the branding hides some basic facts.

  • Rogers and Fido are basically the same company, just different branding;
  • Telus and Koodo? The same;
  • Bell and Virgin? The same;

Wind is one of the few that is separate and not simply affiliated with a regional carrier (like SaskTel in Saskatchewan). Which means Fido, Koodo and Virgin are just special plans of the other three big ones (often discount plans for narrow markets). They often too have much more limited variety in packages, phones, data plan options. In the end, you’re often left with a choice of Rogers, Bell or Telus. Back in 2013, Telus and Bell had just under 30% of the cell market each, with Rogers just above 20, and the rest divvying up the remaining 20%. I don’t have the recent data, but I think the other 20% has shrunk to about 15% and the big three have gobbled up some more.

Does it matter which of the three or four you choose? Well, that depends on what you’re doing and where. If you are in a big urban centre, coverage is pretty much the same for all of them. The larger the urban centre, the increased likelihood of small gaps in the city, particularly if you want LTE service on your latest-and-greatest smartphone. If you are doing a lot of data usage (i.e. smartphone internet use), those dead zones could kill you if you’re with the wrong carrier. Most of the dead zones are starting to disappear as networks expand their LTE coverage more uniformly, but could be an issue. Some people also note that it depends on how much you use your phone at home without wifi vs. working in an office building made of signal-blocking concrete, as some carriers work better indoors more based on the distance to the local cell tower than the technology. The technology probably won’t affect you much though for most urban centres.

If you are in a rural area, there can be a huge difference in service. I have a Rogers cellphone, and I get lousy reception in some parts of central Ontario (north of cottage country, like Algonquin Park, Bancroft, even along Highway 7). Out by Luskville in Quebec? Nada. A friend has a Telus SIM card for when he’s roaming in Quebec (including around Luskville) and it works like a charm. Fortunately there are coverage maps that you can search that show which service is best for what area (like a rural community, cottage area, etc.).

Devices? The big three all support the big smartphones like iPhones, some will have slightly different deals for cost over the long-term, etc., but not significant enough to warrant a change against the other factors.

For me, I was with Rogers partly because I offset at one point with my wife’s phone (back when we were dating). She had a Bell phone, so I went Rogers to extend our coverage map (one or the other would work). Eventually, we switched most things to Rogers, she got a smartphone (iPhone 4) and it was just easier to just put her on my account with the new phone. We’ve upgraded a couple of times between us, and my contract was set to expire December 31st of this year. I bought my phone on a 2 year contract, her latest one (in August), we bought straight outright. So after December? No more commitment, just month to month.

Most big networks will let you switch your phones for an unlock fee and SIM-card switch. Sometimes that’s easy, sometimes they give you a big hassle. But since the big three often only offer you much in the way of deals for completely new activations (often limiting you even on transfers), the savings can be more theoretical than real.

I have unlimited text and talk in Canada. I don’t use it, I don’t need it outside Ottawa, really. Except when we travel to Peterborough, mainly so I don’t get hit with a roaming fee. Way under what they offer me for a basic package. Which is why they can offer such a large basic package — many people don’t use it, so it doesn’t cost them that much. Standard voicemail, basic caller ID (numbers, not names), 911 access, blah blah blah. Unlimited video texting too. You pay for international roaming, international calls, and if you exceed your data plan.

I used to have a sweet 6GB data plan. I thought it was awesome. You know how much I actually used? Less than 1 GB per month. I thought my regular usage would climb, but most of the time I’m doing surfing and data munching, I’m on wifi somewhere, not wireless. My wife had a separate 500MB plan on hers. Eventually, we merged them, but my plan was a special offering, so with the merger, I had to give up 6GB and settle for 2. With me less than 1 GB, and her less than 1 GB, seemed like a no brainer. Once in awhile we go over it, often when our phone settings aren’t taking advantage of wifi hotspots enough. But each time I go over, I get a $15 overcharge (used to be $25).

I wanted another GB of data, but wasn’t really looking to go with Bell or Telus right now. We love our current phones, no setup issues, everything works, just not enough data. So, partly inspired by the whole blog writing thing, and the other cutting the cord attempts, I did a minimally invasive tweak to my current package.

I was paying $80 a month for my phone package with 2GB data. My wife was added to my plan and her package was $35. Everything shared. Since my contract was coming to a close, I could pay off the remaining balance ($35 — which was cute since I had a $40 credit sitting on the account after a full credit for this months’ charges anyway), and modify the plan to a simple “Share Everything” month-to-month plan. My plan? Dropped $5. Her plan? Upped $5. Even Steven. Why would I bother? Because they gave me 5GB of shared data. We can go crazy, no more worries about reaching our limit. If we do, our phones REALLY have the wrong settings. Unless I start streaming a lot of music or videos that I’m not doing now, I suppose. I do have a bunch of course videos I want to watch, but most of those will be through wifi, not wireless. Nice to have the option though. Heck, I may even let my son stream a video on Kodi if we’re stuck in a waiting line somewhere. 5GB is more than double what we have now, and we barely exceed 2 now. For the same cost, no commitment, and no overage charges of $15. Oh, and just for fun, they throw in free Shomi, Spotify or NextIssue. I might give Spotify a try.

If I was still bundled with Rogers for everything else, they’d knock 10-15% off that bill. I’m not getting anything “special” with that deal, it’s a good package and a regular price. Still way above what I would pay in Japan or Europe, and marginally above the U.S.

Can you get better deals? Sure.

Telus has a deal for bring-your-own-device, $60 per month, 4GB of data. If you want to add another user, you basically pay for their voice plan. Probably about $100 in total when finished. Or about $20 cheaper than what I’m paying. Bell would likely charge me $90 for the first plan plus thirty for the second, giving me the same price as Rogers i.e. $120. Wind, by contrast, with their smaller market options, different configs and access to the other networks, would be about $40-$45 per phone setup, or about $80-$90 in total. Save about $30-40 for less reliable network. One that has been rumoured to go bankrupt regularly since it started.

So I’m paying a bit more for the Rogers network, partly as it has slightly different coverage than Telus or Bell or Wind, and it costs me a little more. But not as much as yesterday where I would regularly blow my data limit. Instead, same cost, more service. When I need to upgrade my phone or my wife’s phone or maybe add one for my son, I’ll see what deals are available then. For now, I can live with my (newly-tweaked) package.

Cutting the cord – Part 3 – Home phone

The PolyBlog
October 25 2015

As I mentioned in Part 1 (Cutting the cord – Part 1 – Internet), there are five main areas for people looking to “cut the cord”: internet, TV, home phone, cellular phone and website hosting. Of all of them, the one that people are the most bothered by but least likely to do anything about is the home phone.

I grew up with Bell. And I was a long-time victim, err, customer of Bellopoly. I had some perverse pleasure when my wife (then girlfriend) and I moved in together as it meant only paying Bell once between us. One of those cost savings that you actually are gleeful about, in a strange way.

When the CRTC forced Bell to deregulate some of their offerings, other companies popped up to offer home phone service but the prices weren’t that much better and it wasn’t a strong incentive to switch. People relied on their home phone, an essential service you needed to work, and not something you messed with…you paid Bell their monthly extortion, and you grumbled, but you didn’t do anything about it.

Then cell service exploded. Lots and lots of people have ditched their landlines completely, only having cell phones. Mainly the under-30 age bracket, but not exclusively. Just as payphones have followed the dodo out the door, landlines are no longer “must-have” essential services for everyone. Lots of households have multiple cell phones, and with the explosion of smartphones, most of them have them with them everywhere they go. Less chance of leaving your old-style flip phone in the console of your car, or not having it close by.

So when people have “cut the cord”, they have been more likely of late to just cut the landline entirely and go all cellular, all the time. I don’t know that it is a viable solution for us. I am not a huge cell user, honestly. If I have or make 10 calls a month, it’s high. For my wife and I it is mainly about convenience when one of us is out (me) and the other (wife) wants something to be picked up. Or I call from the grocery store and say, “Hey, you put x on the list, did you want 500 ml or a litre?”. Or more often, “You put x on the list…what the **** is x and / or where in the store would I find it?”. I also have a mental blank when I think, “So, whose cell would we put as the number for dealing with our internet, probably me?”. Silly, as it makes no difference whatsoever, but I have some mild comfort from the fact there is a “common” line to reach either Andrea or I, even if we’re not there to answer directly. Also, I like the fact that if my cell phone rings when I’m at work, it’s guaranteed to be worth answering — so few people have it, if it rings, it’s likely my wife or my son’s school. If I start listing it for every business we deal with, I’ll get spam I really don’t want.

As a result, I’ve never really considered cancelling my home phone. I just left it with Bell for a long time, and then when Rogers took over all my other offerings a few years back during a move, I switched to Rogers Home Phone too. Didn’t hurt that I wasn’t sure if the phone lines in our new house were that reliable. They sure looked like cheap wiring. And I never had a problem with the Rogers setup. We have a wireless phone in the house that the base plugs into a jack, and the rest of the extensions connect to the base wirelessly. You only need one jack to work. Because I had Rogers internet, it meant I needed a separate wire setup so that the connection came out of the cable jack, split into phone and computer/internet and then there was the modem, router, computer daisy chain while the other line went back into the wall and wired the phone. All of it worked, no issues.

Well, one issue. The same as with Bell. We don’t use our home phone a lot, and it was running us between $30 and $50 per month over the last few years. I’d tweak the setup once in awhile to get the cost down, but it really was a drag on spending. My mom passed away 3 years ago, and I only call one sibling long distance…very rarely do I make phone calls, most of my comms with people are either in person or by email, facebook or occasional text. My wife uses the phone to talk to the parental units and her sister in town, plus a few other business related things, but her cell would likely work as well. Still we wanted the “common number”. We considered a complete ditch, but weren’t quite ready to pull the trigger.

Enter the VOIP…voice-over-internet-protocol. It’s the fancy way of saying that instead of Rogers Cable or Bell Telephone providing your phone service, you run the connection through the internet. Some think it is just like Skype, but not quite. First, it’s just a phone, no video connector. Second, Skype just runs on your smartphone or tablet or computer, whereas VOIP uses an actual phone for the hardware (usually). Third, there’s a company on the other end, just like Rogers and Bell, handling the connection for you. Not exactly like an “operator”, but close enough. What’s the attraction? You can keep your home phone number, you can use your existing phones, you buy a base unit that plugs into your router, and…drum roll please…it costs $3.95 a month. A tenth the cost of the landline and we still get most of the benefits of an actual landline through the virtual one.

Now, don’t get me wrong, there are reasons why you might not want to do it. First and foremost, it uses the internet. If you have a lousy internet connection, this might not be great for you. Second, there can be slight lags in your conversation. It’s not as crystal clear as your regular Bell line, and sometimes there can be a half-second delay when you’re chatting. I have a friend who was using it, liked it, didn’t find the lag egregious, so we gave it a try. My wife thinks it’s fine, barely notices it. Third, there is the “emergency” situation. Most of the stubborn people say, “Oh, I need a landline in case there’s an emergency.” And if you have VOIP and your power or even just your internet is out, you have no phone. Cue the backup cell phones that we already have, so not much of a concern. As well, if you have to phone 911, the computer won’t know automatically where you live, so you’ll have to give the operator the address. Just as if you were calling from a cell phone.

In the end, we went with Ooma. I’d like to say I checked out 5-10 great providers and this was the best, but really I went with it because a friend had it and liked it, with her husband being a decent geek who did a bunch of that type of research before me. The base unit ran me $125 or so at Best Buy. Setup was relatively easy. You plug it into your router, it connects to the internet, downloads all the latest firmware, and you walk through account setup on the computer. 20 minutes later or so, you’re good to go with a temporary Ooma number. You can keep that number if you want, or put in a request to port your old home phone number over. You can even run them simultaneously if you want to try it and see if you’re okay with it before ditching your other landline.

You might be thinking, “Sure, how much is long-distance though?”. How about free anywhere in Canada? There is a glitch with other long-distance — whereas Bell didn’t care how much you ran up the first time, they just billed you after the fact, Ooma is pay as you go. So if you want to phone elsewhere, you have to put money on your account. Mind you at less than a penny per minute to call the U.S., it’s not like you have to put a lot of cash on the account, but you do have to put a little. Just like buying a phone card for long-distance, entirely through your online account too.

We’ve had no issues so far, porting was super easy. They offer you a whole bunch of extra features in the first month to get you to upgrade to Ooma Premiere ($14.95 a month) and the features are sweet. Better voicemail. Forwarding to your cell phone easily and with some extra conditions. Copies of your voicemails sent to you by email. Notifications by text or email that someone has left you a message at home. Even the option to have the phone listed in any area code in the country (i.e. if you want it to look like a B.C. number, you can have it be a B.C. number even if you’re living in Chicoutimi!). Great options, and only an extra $11 a month. Still well under the $40 I was paying before, on average. Yet we didn’t need most of them. We have voicemail, we can access it remotely, that’s good enough.

$4 a month instead of $40. Instead of $500 this year, it will cost $175 with the hardware. After this year, it will drop to $50 a year, pretty much what I was paying monthly under the old system with taxes. Oh, and that $3.95 a month? That includes your 911 emergency access fee, so it isn’t even Ooma charging you the full $4.

Likely we’ll think of ditching the landline altogether, but for now, I’m willing to live with the cost/benefit ratio. And I’m okay with saving $325 this year alone, even accounting for the new hardware cost.