Rogers device subsidies 101: Choose the option that’s right for you
By: calendar iconJanuary 24th, 2012 a 2:54pm

Our friends in legal have asked us to make some edits to this post. In the spirit of transparency, we wanted to let you know that the following text has been changed from when it was originally published. The primary fix is that we’ve re-written to clarify that all customers have a contract with Rogers, even when they choose a no-term, no cancellation fee option.

We know that some of you have had questions about fixed term wireless contracts and why they exist.  What you may not know is that Rogers offers you choices, even when it comes to contracts. You can always be without a fixed term contract with Rogers if you choose to pay full price for your device upfront and pay for your services month-to-month.

Why do I need a fixed term contract?

When you enter into a contract, you receive a device or service at a reduced cost. The benefit of signing up for a 1, 2 or 3-year term is the upfront savings you get on the wireless device you want.

Wireless devices can cost hundreds of dollars depending on the model.   You can choose to skip the fixed term contract and buy your device at full price, but sometimes, getting a break on the cost of that new quick messaging device, smartphone, tablet or RocketStick makes more sense and is easier on your wallet than paying for it outright.

What if I want out of my fixed term contract? What fees apply

We often get questions about cancellation fees and why they exist.  As part of our ongoing commitment to our customers, we’ve implemented a new policy around what happens when customers with a fixed term choose to end their fixed term early.

Here’s the new policy:

  • If you received a device subsidy when you signed up, and you want to cancel your service before the end of your fixed term, you will need to pay the Device Savings Recovery Fee (DSRF), which is based on your device subsidy.
  • You can find the amount of your device subsidy (economic inducement) in your agreement. To calculate the DSRF, just divide the subsidy you received on your device by the length of your contract in months , multiply that number by the months left in your fixed term contract and of course, add applicable taxes.
  • Did you get a bigger subsidy when you signed up because you have a data plan? Rogers offers additional subsidies to customers who sign up for both voice and data plans.
  • The Additional Device Savings Recovery Fee (ADSRF) is charged to subscribers with data plans who cancel prior to the end of their term. You can also find the amount of your data plan subsidy (additional economic inducement) in your agreement.
  • This is calculated the same way as the DSRF, taking into account the months left in your fixed term contract and the initial subsidy provided to you.
  • The one-time service deactivation fee is $12.50 per line and charged to all term customers in provinces other than Quebec and Manitoba if they choose to cancel their services before the end of their fixed term. This fee helps to cover the administrative costs and charges associated with your cancellation.

It’s always important to understand what you’re paying for, which is why we’re trying to make it easier for customers to understand our device subsidies.

Heather is a regular contributor to RedBoard

VN:F [1.9.13_1145]
Rating: 1.8/5 (34 votes cast)
Rogers device subsidies 101: Choose the option that’s right for you , 1.8 out of 5 based on 34 ratings
category iconCategories:
Customer experience, General, Wireless
tag iconTags:
, , , , , , , , , , , , , , , , , , , , , , , , , ,

share this

Jump to Comment Form
Older Comments
  1. mk says: January 25th, 2012 a 1:49pm

    this doesnt make much sense to me. im not a big fan of the way things used to be. but for example i purchased the galaxy nexus for 99.99 on a 3 yr contract (saving 500). I would have to pay 13.89 for every month left on 36 months of my contract when i choose to upgrade. so if i want to upgrade in a year i would pay 333.36 or in two years it would be 166.68. plus the undisclosed DSRF free and and a deactivation fee.

    Now based on the older early upgrade option i would not be eligable to update the first 6 months but after that it would be $20 a month for the 24 months required before eligible upgrade. that amounts to 480 dollars after 6 months. 360 after a year from the initial purchase of the phone. so the new way is cheaper by about $35. now if you want to upgrade 2 years after your purchase like i said before it would cost you 166.68 the new way and only 110 the old way. this new version only seems to save you money if you’re upgrading within the first year. the old way (which was still terrible) saves you money.

    also lets not forget previously after the 24 + 6 months so in 30 months you would be eligible for a straight upgrade with this new program even after 30 months if you want to upgrade you have to pay 83.34 for the last 6 months.

    this seems like a pretty big mess and creating a lot of confusion and with the end result being us paying more money.

    • mk says: January 25th, 2012 a 2:05pm

      or am i completely misunderstanding the new early cancellation program with hardware upgrade eligibility

    • Rogers_Chris says: January 25th, 2012 a 6:23pm

      First off mk, this applies to customers who renewed after January 22, 2012 – did you renew within the last few days?

      I’d rather not speculate on the numbers you laid out because you are bringing up the early upgrade promotion as well. Suffice to say that we’ve made it easier for customers who have signed up for committed-term contracts with us to know exactly what they will pay if they choose to end their contract early.

  2. Lynda says: January 25th, 2012 a 2:18pm

    I would like to be able to see my original contract/subsidy/early cancellation numbers on MyRogers

  3. Tammy says: January 25th, 2012 a 7:46pm

    Can you explain to me what are the cancellation fees for signing up for 3 year term with no hardware subsidy because you force me into a contract for the $30/ 6GB data plan for both prior to Jan 22 and after Jan 22?

    Thanks,

    • Rogers_Chris says: January 26th, 2012 a 10:26pm

      That sounds fairly complex, Tammy, because I’m not sure how you would have two separate contracts for one data plan. I’d suggest you speak with someone in customer care about that if you’re thinking of cancelling.

  4. John N. says: January 27th, 2012 a 12:36am

    Hi I have a question regarding cancellation. I switched to rogers more then two years. I’ve always used an unlocked phone, I have not yet received a hardware upgrade. This means I did not received a phone at subsidy cost.

    I however, for the past two years, had sign a yearly contract to get free call display. My contract expires in March 2012.

    My question is, if I want it to cancell my services, with one month left on my contract, will I be charged? I only have voice and no data.

    Thanks.

    • RogersNicolas says: January 27th, 2012 a 12:46pm

      Hi John, to know if cancellation fees may apply, you’ll have to contact Customer Care. Based on your account history, they’ll be able to give you all the details.

  5. DIGG says: January 28th, 2012 a 2:20pm

    Then why did I get a $100 min charge for cancelling my 3 year contract with one month left to go, I switch over to another Rogers company chatr and wasn’t even told about this min charge? I wasn’t even told about this $100 charge when signing up, apparently it was in my contract that I lost after 3 years and can’t even ask for a copy.

  6. pf says: January 31st, 2012 a 3:28am

    You guys need to come to some serious scrutiny. Your charges are extortionate and none of the main networks is doing anything to curb this.

    Wish you got some serious competition to knock this nonsense on the head.

    How about sensible low cost / short term plan for people choosing to get their device. Three year contracts are a slap in the face to pretty much everybody. Considering the pace of technological innovation, I can’t imagine anybody willingly signing to such a long contract. It is simply a way how to get extra money out of customers, whilst charging them early cancellation fees.

    Having compared contracts between the UK and Canada, getting an iPhone in Canada would cost me extra 43 dollars more a month. That is over 1560 dollars over the length of the contract. Same minutes, same text allowance and same data. The difference is there are only 24 month contracts, so for the 3rd year you also benefit from a low cost no subsidy plan for your data and voice are available in 12 month or 30 day chunks.

    On all counts Canadian plans are higher per month for same service, longer and offer disincentives for customers wanting to keep up with technology.

    Why oh why do you build new faster networks, yet prevent your customers from using them?

    • RogersNicolas says: January 31st, 2012 a 9:05pm

      Hi pf,

      Thanks for your feedback.

      Prices are hardly comparable from one country to another since many criteria have to be taken into account.

      With this new policy, your cancellation fees will never exceed the price of the device with no subsidy. We also offer plans with no terms, such as the PAYGO or the Unlimited Value Plan: http://www.rogers.com/web/content/unlimited-value-plan

      @RogersNicolas

      • pf says: February 12th, 2012 a 2:26pm

        Hi Nicolas,

        Thanks for your response.

        Whilst we can’t compare plans dollar for dollar (pounds for pounds) no doubt you’ll have to agree with me that shelling out over CA$1500 for the same phone does not compare by any form of criteria that might come to play (I spec’ed the service as close as possible in the first place).

        A lot of the on-costs are due to charges that are FREE as standard elsewhere, such as activation, voicemail, caller ID and others.

  7. liane says: February 2nd, 2012 a 2:03pm

    I started a plan in may 2011 with a phone I inherited from a friends (never got subsidized hardware – I had already been on month to month on the same phone for almost a year). So I am an “existing prior to Jan 22 2012″ customer, but I haven’t served the three year sentence, … if I change my plan now (after Jan 22) and it results in a renewal before the original is up, do the new terms apply?

  8. Doug says: February 15th, 2012 a 8:12am

    Just wondering why this new policy isn’t offered to your past customers? As long as Rogers recieves the amount owing for the device why dont we have same freedom as new customers?

    • RogersNicolas says: February 15th, 2012 a 3:49pm

      Hi Doug,

      Existing customers are covered by the former ECF model under the provisions of their existing contracts.

  9. Doug says: February 16th, 2012 a 5:35am

    Yes, I understand that. But at the same time, why isnt the new plan available as an option? Can you explain Rogers reasoning behind it?

    • RogersNicolas says: February 16th, 2012 a 12:34pm

      It’s really simple: this new policy only applies to new wireless customers, or existing customers who have entered into a new term after January 22, 2012. And as I explained, if you subscribed before that date you’ll be covered by the policy you agreed with.

  10. Doug says: February 16th, 2012 a 4:56pm

    Ok, I see. So If I go in and resign to a new term (no hardware involved) I would be under the new policy and be able to terminate for 12.50. Correct?

    • liane says: February 17th, 2012 a 7:43am

      That is what I want to know. It’s lovely how he answers by repeating that it only applies to customers who sign on after January 22 2012. We know that, Nicolas. The question is, why should we not get the same provisions as people who sign on after. I never even got subsidized hardware and I’m still held to these Draconian terms. You might say Rogers is treating some of its customers better than others.

      • RogersNicolas says: February 17th, 2012 a 1:18pm

        Hi Liane,

        I’m sorry you feel that way. Our services are open to change but in this case unless you renew your contract, the former policy applies.
        I understand your point but it doesn’t change anything for you.

    • RogersNicolas says: February 17th, 2012 a 12:55pm

      If you don’t get any subsidy, you’d only be charged a deactivation fee.
      Feel free to contact to contact Customer Service to review your account’s specifics.

      • liane says: February 17th, 2012 a 1:06pm

        Mine is from before January 22 and I got no subsidy. Can I re-sign a new contract that would take over this one without being charged a cancellation fee — and then either get a subsidy or be able to cancel on the deactivation fee of $12.50 later?

Older Comments