Are customers concerned about multi-year agreements? Cellular phones were one of the leading sources of consumer complaints in Ontario last year, according to the Ministry of Government Services.
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Top 10 Consumer Complaints and Inquiries in 2005
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|
|---|---|
| Collection agencies | 4,533 |
| Home renovations | 2,577 |
| New & used vehicle purchases | 1,880 |
| Motor vehicle repairs | 1,485 |
| Home furnishings | 1,267 |
| Fitness & health clubs | 1,067 |
| Credit reporting | 1,038 |
| Personal items | 1,007 |
| Cell phones | 842 |
| Timeshares | 688 |
So, what is the best strategy for consumers choosing a cel phone plan and provider? I would say, look as carefully at the cancellation fees as you look at the monthly rates. A 3-year contract will get you the greatest discount off your new phone, but not all 3-year deals are the same.
Look at the penalties for early termination. If you lose or break your phone, you may be better off cancelling your plan, rather than paying full price for a replacement device. Each of the major carriers charges $20 per month remaining in the agreement but Rogers has a maximum $200 penalty to get out of your contract. Bell tops out at $400 while TELUS has $100 minimum and no upper limit.
The added benefit with Rogers, if you cancel early, is the ability to get your phone unlocked at many retailers. That will then make it easier for you to travel to the US or overseas and make use of a local pay-as-you-go SIM card. Unless, of course, you enjoy paying a zillion dollars per minute for roaming.
Or, you could just file a complaint. That would help cell phones move up the charts from number 9 on Ontario’s Top Ten Countdown. Will provinces intervene?