Rogers' new HUP policy doesn't discriminate, screws everyone

Retail

A lot of people were understandably upset when Rogers increased its smartphone HUP policy from every 12 months to every 24 months citing high costs, but now even dumbphone users have a reason to cry foul as the same conditions will soon apply to them. Retroactive as of August 21st, the minimum length between HUPs must be no less than 24 months regardless of handset type. Rogers told its employees in a memo circulated Friday that there are two reasons for the move: Network upgrades are costly (that upcoming 21Mbps HSPA+ deployment and eventual transition to LTE isn’t going to come cheap) and the high quality of modern handsets means it’s not necessary to replace a phone each year. We’d hit up Rogers PR and ask them some questions such as why the company is making decisions like these when a spunky new carrier like WIND is about to launch — not to mention that Rogers customers with 3G handsets will soon be able to cancel and join either Bell or TELUS — but we’re pretty sure that each query would be answered with “Neener, neener, neener…  You signed a 3-year contract.” Maybe. Anyway, hit the jump for the internal memo.

**IMPORTANT ANNOUNCEMENT**

Policy change to Hardware Upgrade Program eligibility

(applies to non BPR/MSD customers)

The Hardware Upgrade Program will now provide a consistent minimum eligibility rule for all customers and eliminate the 3-5 day wait time between a data to data HUP cancellation and the processing of the new HUP.

Effective August 21, 2009, a minimum tenure of 24 months since initial activation or last upgrade will be required before a customer is eligible to participate in the hardware upgrade program.  This change aligns all upgrades (voice, voice to data and data to data) with the current data to data HUP policy.

This change also reinforces the importance of explaining to customers that HUP eligibility and quoted hardware/plan pricing are subject to change without notice and cannot be guaranteed beyond the time of quotation.

Update to HUP eligibility:

The updated HUP eligibility rule of 24 months minimum tenure since a customer’s last upgrade or activation date will be system enforced and no exceptions will be allowed. All other standard HUP eligibility rules still apply.

Reasons for the update to the HUP:

  • Rogers Wireless heavily invests in providing the latest data devices at affordable prices to our data customers. This update to the Hardware Upgrade Program is designed to offer a consistent upgrade eligibility to an outstanding selection of the most advanced devices for the best value.
  • In addition to the outstanding selection of available devices, there has also been improved level of quality and technology that has gone into the line-up over the past years allowing a longer hardware lifespan.

Customer impacts:

Please always check the customer’s account in Vision21 for HUP eligibility to ensure the customer is provided with correct eligibility information.

  • Customers may have been eligible and now eligibility may have changed as a result of this update.
  • Customers may have been aware of their eligibility prior to the update, but did not take advantage of the program at the time and are currently not eligible as a result of the update.

Positioning:

  • HUP eligibility as well as quoted hardware/plan pricing are subject to change without notice and cannot be guaranteed beyond the time of quotation.
  • Rogers Wireless sells devices at a significantly lower price than the true value/cost of the device. This update to the Hardware Upgrade Program allows us to continue to offer the best devices at the best value in a fair timeframe for all of our customers.

Please note that the information in this bulletin applies to the standard HUP program, and does not take into consideration any existing promotions that may require different eligibility. Always remember to consult the Sales Central bulletins to read the latest in HUP offers.

Thank you for your continued support.

30 Comments
  • Tempus Fugit

    Some clarification.

    Most cell providers in the US have 2-year HUP policies.

    Rogers has the best (and only) GSM network and coverage in Canada, and is AHEAD of the US and numerous European countries when it comes to deploying and maintaining the latest, fastest network tech. 21mbps anyone?

    That comes at a price. Canada has a population literally half that of the UK and 10x less than the US – and much lower per capita cell phone use. Canada ranks last in the list of 30 member countries of the OECD (see below) lagging behind even Mexico in usage.

    That means many, MANY fewer people using cell phones and paying bills. So the money has to come from somewhere. Handing out cheap handsets at a discount of $200-500 off wholesale is a difficult is simply not feasible.

    HUP pricing will remain the same after the policy change. It will still be revenue tier based, so after 24 months it’s more likely a customer will pay a reasonable price for a new phone.

    Want a quick way to calculate your upgrade tier? Take the total cost of every bill you’ve ever paid with Rogers since activation or your last upgrade, whichever was more recent. Subtract taxes (obviously), and compare that number to the following chart.

    $0000 – $1000 Tier 1 – Promo + $100 + $35 Admin
    $1001 – $1200 Tier 2 – Promo + $ 50 + $35 Admin
    $1201 – $1500 Tier 3 – Promo + $ 00 + $35 Admin
    $1501 – $2500 Tier 4 – Promo + $ 00 + $00 Admin
    $2500 – above Tier 5 – Promo – $ 25 + $00 Admin

    This pricing is based on account level revenue, so includes all phones on an individual account.

    All HUP pricing is net of a MIR which is credited to the customer’s account on the 3rd bill after the HUP, assuming it is sent in for processing in a timely manner.

    Make sense to some people now?

    And no, I don’t work for Rogers or an affiliate :)

    OECD Member List: Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Republic, Spain, Sweden, Switzerland, Turkey, United Kingdom, United States

  • howie

    @tempus

    you just trying to clarify or you trying to defend rogers? it sounds like the latter to me. rogers now owns fido so collectively they have the ONLY gsm network that doesnt make them the best network coverage everywhere alright.

    they only provide coverage at strategic locations enough to cover 90% of the population so the population issue is moot. it doesnt cost THAT much as they would like you believe.

    and finally the cell phone penetration is low in canada because of collective rapage of the big 3. it is cause and effect: their rates are high that’s why the penetration is low, not because low revenue so they have to raise prices. the reality is they will raise prices regardless of penetration. you say the cost has to come from somewhere, well, $7 for call display, and “value” bundles cost more than the basic voice plans, and paying for incoming text messages is not enough in your opinion? let me remind you that incoming text messages is FREE in the third world countries!

    the only people defending rogers at this point are the people receiving their pay checks.

  • moosebump

    “Neener, neener, neener… You signed a 3-year contract.”

    Think about that word ‘contract’ and what it means. If you don’t understand – don’t sign.

    You signed up to pay a certain amount each month for 3 years. The beancounters then went away and figured out how much they could discount your device while still making a reasonable return on the billions of dollars of capital invested in spectrum and infrastructure. They came back and offered you $400 off on the price of a shiny new iPhone. (or did you really think that impressive piece of advanced technology really costs $200?)

    Rogers should come to your house and take their devices back and say – we know we signed a contract but we decided we want it back. We can get more by selling them on Ebay.

  • Pissed off

    I was due for an upgrade on Aug 26 go fucking figure. Tried to get an up grade and was told to pound sand. Well FUCK YOU Rogers your just a bunch of ham fisted finger fucks. I have to say i will never be a Rogers customer again.

  • sam

    How do I find out more about my rogers HUP

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