Home > News > Why Bell, Rogers, Fido and Telus lock your cell phone

Why Bell, Rogers, Fido and Telus lock your cell phone

Bell, Rogers, Fido and Telus engage in “freebie marketing” which is sometimes referred to as the razor and blades business model. Wireless carriers know that if they can entice Canadians into signing a long-term service agreement they can also provide heavy discounts or subsidies on the purchase of a new phone because they make this money back over the term of your contract or by charging expensive early cancellation fees.

At first glance this sounds like a good thing for Canadians, who doesn’t want a sweet deal on the latest iPhone, Palm Pre, Windows Mobile or Android smartphone? Unfortunately, even at the end of your contract or after paying expensive early cancellation fees, you continue to pay for that phone over and above it’s original cost.

It’s time to demand more transparency and full disclosure by Bell, Fido, Rogers and Telus. In addition to coverage and rate-plan information, carriers must fully disclose any limits placed on devices, limits on bandwidth usage, if devices are locked to a single network and information regarding discounts and subsidies applied to the purchase of devices that are part of a service agreement.

Without Fair Wireless for Canada, Bell, Rogers, Fido and Telus will continue to lock in Canadians and prevent you from re-using your existing phone when switching wireless carriers.

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