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