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article imageOpinion: New Text Messaging Fees Will Infuriate Canadian Cellphone Users

Posted Jul 8, 2008 by  David Silverberg in Technology | 24 comments | 2798 views
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Canada is about to get strangled by even more unnecessary cellphone fees. In August, Bell Mobility and Telus Mobility will charge customers for incoming text messages. The deplorable fees should give Canadians good reason to protest the greedy telcos.

Digital Journal — Canadians, say goodbye to the short-lived era of free text messaging. In one of the most despicable displays of consumer disservice, Bell Mobility and Telus Mobility will start charging wireless customers for incoming text messages. So far, wireless companies have only charged users for outgoing texts.

Under the new pricing plan, Bell will charge pay-per-use customers 15 cents per incoming text starting Aug. 8. Telus will unveil the same plan on Aug. 24. Telus revealed some bundle packages for text-friendly customers who don't like the 15 cents-per-text plan — for instance, $15 a month gets you unlimited incoming and outgoing messages.

Bell Mobility director of media relation Pierre Leclerc said in an email statement to DigitalJournal.com: "We strongly recommend that clients who send and receive lots of texts be on an unlimited text bundle."

Rogers Wireless said they won't be adopting this new fee system.

But for Telus and Bell, why this sudden about-face? The telcos claim the phenomenal growth of texting in Canada has weighed down on their network traffic, according to Telus media relation spokesperson Anne-Julie Gratton. She told DigitalJournal.com: "The tremendous volume of text messages means we can't provide them free anymore."

According to the Canadian Wireless Telecommunications Association, Canadians send 45.4 million texts per day. Cellphone subscribers sent 4.1 billion in the first quarter of this year, close to the annual total of 4.3 billion sent in 2006. Inter-carrier texting has stormed across the country since the service began in 2002.

Now that telcos want to charge for all texts coming and going, customers can expect an ugly bump in their monthly bills. To suddenly get hit by these fees sideswipes wireless subscribers who signed multi-year plans under the impression there would be no additional fees. Charging for incoming texts can easily add $20 to the average bill — sending five messages a day at 15 cents per text results in a $22.50 charge at the end of a 30-day month. Ouch.

Customers have good reason to be up in arms. What if you get texts you don’t want? Spam messages can annoy wireless customers, and Bell was quick to allay any worries. Leclerc said spam texts can be reported to Bell through a simple phone call. Right. And we all know how quick it can be to access a Bell rep on its clogged phone line (he said sarcastically).

Most importantly, the majority of texts come from friends and family. The deluge of incoming texts can be overwhelming and currently it’s not an issue because Canadians don’t pay for those messages. But under the new pricing scheme, they would be charged for texts they never solicited. It makes sense to pay for things you have control over – making and answer phone calls, sending video messages – but to get charged for services someone imposes on you?

Telus' Gratton responded to this problem by saying, "You can turn off your text function so you don't receive any texts." Um, yay? Shutting down the entire text service is an extreme option that doesn't give customers much comfort when they want to take advantage of their cellphone features.

The text-messaging fiasco is firing up the Canadian blogosphere. In one forum, a frustrated person quipped: “Next thing you know Bell will start sending people text messages so they can collect the revenue.”

Another forum poster wrote: “Text messaging is pure profit for cell phone companies. The lack of true competition between telecommunications companies is rather disturbing.”

It’s not a callous statement. Canada is subject to an oligarchy of three major wireless firms — Bell, Telus and Rogers — and endures some of the highest wireless fees in the world. The Canadian government has pointed out a study that rates in U.S. and Europe are roughly half the cost for the same services in Canada. Rogers recently had to wipe some pie off its face for releasing the controversial rate plans for the upcoming iPhone, forcing some Canadians to launch petitions and protest sites.

Now Telus and Bell want to rip off their customers with a texting charge, and this is one issue Canadians should not take lying down. As sympathetic as some naïve cellphone users may be to the weight of texting bloating networks, slipping in fees is a foolish way of remedying the situation. Canadians are already sick of high plans. It seems like telcos are just shrugging off any complaints and saying, “Since Canada already is ripe for expensive plans, we’re not doing anything different.”

It's funny how Telus justifies the charge: "The revenue from the text fees will fund Telus's capital to extend wireless coverage and offer customers new technologies and cool cellphones," Gratton said. Talk about outfitting a wolf in some frilly sheep's clothing.

It’s a cash grab bound to attract world interest, but it won’t be the attention Canada wants. Instead, other countries will be mocking Canadians for enduring another wireless fee so many other international companies never even consider charging. And if this moronic incoming text charge spreads outside Canuck borders, expect other countries to truly blame Canada.
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  • avatar Posted Jul 8, 2008 by  Chris Hogg
    #1
    I cannot explain how much this infuriates me. It is massive corporate greed and irresponsible for Bell or Telus to pull a stunt like this. Sure it costs them more for network traffic but asking the consumer to pay for incoming messages that are never solicited is ludicrous.

    I will say now, I urge at least one Canadian telco to not charge for incoming text and I will switch and stay loyal. I will also continue to urge everyone I know to switch. We will also follow this news on DigitalJournal.com and if any telco emerges as being "for" the consumer in this text message debate I for one will stand by them.

    Infuriating.
  • avatar Posted Jul 8, 2008 by  Julybug
    #2
    Ohhh man! that sucks! Luckly I have AT&T. Their texting/media plan is bad enough in terms of cost, but I'm glad I don't have to pay per text.
  • avatar Posted Jul 8, 2008 by  Gar Swaffar
    #3
    I did away with my text messages because of the spam I couldn't get rid or. But the real question here is this. For the image to this story, I can see both of the guys hands, what is he using to input the text messsage?
  • avatar Posted Jul 8, 2008 by  Sykos Masters
    #4
    I'm right there in shared frustrations with you guys. The Big 3 have had Canadians by the short-hairs for decades, which is why I chose to go with a 'minor player' in the wireless arena. National coverage, excellent rate plans, incentives galore, excellent service, and no worry about answering to the whims of the B3.

    Out of respect for your well-written article I won't advertise here, but I am open to msgs :)
  • avatar Posted Jul 8, 2008 by  Michael Squires
    #5
    Sorry to hear this news. As one person pointed out SMS has virtually no overhead and is pure profit for the Telcos.
    As for news getting around, yup, it will and as I start my day here in Australia I am sure it will hit the wires fast.

    Regarding the comment about "minor players", these start-ups helped break up the pricing cartel that we once had. Support the independents.

    Good article, shame you used the photo of my back.
  • avatar Posted Jul 8, 2008 by  Sykos Masters
    #6
    @ Michael

    he's "bringing sexy back" .... lol
  • avatar Posted Jul 8, 2008 by  Michael Squires
    #7
    Yikes !!!! Sykos is this my 15 minutes of fame??? Oh no !! I have failed. LOL
  • avatar Posted Jul 8, 2008 by  Gar Swaffar
    #8
    @ Michael Squires


    Good article, shame you used the photo of my back.


    Please disregard my previous post! I do not want to know!
  • avatar Posted Jul 8, 2008 by  Samantha A. Torrence
    #9
    I already get charged for incomming messages. I had to beg my friends to quit sending them, because they all have unlimited texting. pisses me off.
  • Patricia Posted Jul 9, 2008 by  Patricia
    #10
    Yet another money grab from big corp. , That's like Canada Post charging you to receive a letter in the mail. It is double dipping and shouldn't be allowed. We pay enough for everything as it is. I didn't sign up for this package and I should be allowed out of my contract.
  • avatar Posted Jul 9, 2008 by  David Silverberg
    #11
    @ Patricia
    Yet another money grab from big corp. , That's like Canada Post charging you to receive a letter in the mail.

    Great analogy and I wholeheartedly agree. This is blindsiding consumers who never saw this coming, and I doubt people will take this lying down. In fact, there's already a Facebook group opposing the "cash grab."
  • avatar Posted Jul 9, 2008 by  Sykos Masters
    #12
    @ Patricia
    Yet another money grab from big corp. , That's like Canada Post charging you to receive a letter in the mail. It is double dipping and shouldn't be allowed. We pay enough for everything as it is. I didn't sign up for this package and I should be allowed out of my contract.


    Corporate Telcos looking for more $$ ?!?!? Impossible!!!

    Seriously though Patricia, you should have the option of canceling your contract (with a penalty) as there have been recent court cases determining that locking in, with exorbitant fees for canceling, have been judged to be excess user fees (hence a type of interest). I know I have a max of $300 to pay if I cancel my 3-year term.
  • avatar Posted Jul 9, 2008 by  Samantha A. Torrence
    #13
    My previous company tried to charge me $500. I told them to shove it.
  • avatar Posted Jul 9, 2008 by  Sykos Masters
    #14
    I'll put this out there ... here are my fees for 2 cellphones (not each):

    $55 - family plan : 3000 e/w, 150 daytime, 500 family (phone to phone) minutes all shared; unlimited incoming text; 150 outgoing (per phone)
    $10 - 100 extra daytime minutes (shared)
    $10 - voice mail

    GT - $ 75 for 2 phones - I then get a 10% rebate for using my sponsored credit card.

    btw - this company has national coverage with no dropped calls to date, excellent c/s, excellent call quality, and the latest phones.

    How do these figures compare with your guys?
  • avatar Posted Jul 9, 2008 by  Sykos Masters
    #15
    @ Samantha A. Torrence
    My previous company tried to charge me $500. I told them to shove it.


    lol ... you and your butt fetish =D
  • avatar Posted Jul 10, 2008 by  Julybug
    #16
    @ Samantha A. Torrence
    My previous company tried to charge me $500. I told them to shove it.


    hahahahahaha nice
  • avatar Posted Jul 13, 2008 by  Nickolove Lovemore
    #17
    I have stopped even sending text messages from my mobile phone. The text messages were costing me more than my phone calls.

    Now I simply use an online service to send my text messages. It's not free but the rates are so low that I don't worry about the number of text messages I send.

    I also have a mobile phone for which I don't have a contract - so there are no standing monthly fees. I can use it as little or as much as I want and only get charged for what I use.

    It is greed that is causing this company to act in this manner.
  • Jennifer Simmons Posted Jul 14, 2008 by  Jennifer Simmons
    #18
    I saw this today:

    TELUS guarantees spam free text messaging service - no questions asked
    Vancouver, B.C. – TELUS today confirmed that wireless clients have never been required to pay for spam text messages and announced an even easier way for clients to receive credits for any spam text messages they might receive. Beginning August 24, clients can simply send the spam message to 7726 with the word SPAM in the body of the message and their account will be adjusted automatically. The credit will be processed with no questions asked of the client by TELUS. It is important to clarify that this change has no impact on any TELUS mobile email services.

    Contrary to some reports, TELUS has always believed that it is not fair for customers to be charged for spam messages. Our policy has always been to credit customers for spam messages they have received. TELUS uses sophisticated spam filters to eliminate most of these types of messages from reaching clients; however, TELUS further guarantees that customers will not pay for spam text messages.
  • avatar Posted Jul 14, 2008 by  Chris Hogg
    #19
    @ Jennifer Simmons
    I saw this today:

    TELUS guarantees spam free text messaging service - no questions asked
    Vancouver, B.C. – TELUS today confirmed that wireless clients have never been required to pay for spam text messages and announced an even easier way for clients to receive credits for any spam text messages they might receive. Beginning August 24, clients can simply send the spam message to 7726 with the word SPAM in the body of the message and their account will be adjusted automatically. The credit will be processed with no questions asked of the client by TELUS. It is important to clarify that this change has no impact on any TELUS mobile email services.

    Contrary to some reports, TELUS has always believed that it is not fair for customers to be charged for spam messages. Our policy has always been to credit customers for spam messages they have received. TELUS uses sophisticated spam filters to eliminate most of these types of messages from reaching clients; however, TELUS further guarantees that customers will not pay for spam text messages.

    Do you work for Telus Jennifer?
  • Jennifer Simmons Posted Jul 14, 2008 by  Jennifer Simmons
    #20
    No.
  • avatar Posted Jul 14, 2008 by  Chris Hogg
    #21
    @ Jennifer Simmons
    No.

    Do you work for their PR agency?
  • avatar Posted Jul 14, 2008 by  Sykos Masters
    #22
    @ Jennifer Simmons
    No.


    Hmmm .... so let me see if I have this straight. You joined DJ just long enough to promote Telus, but you don't work for them or represent them.

    In that case, as you are then completely objective, would you like to comment on their "solution"?

    Beginning August 24, clients can simply send the spam message to 7726 with the word SPAM in the body of the message and their account will be adjusted automatically. The credit will be processed with no questions asked of the client by TELUS. It is important to clarify that this change has no impact on any TELUS mobile email services.


    As I read this, the charge for received spam messages are credited back to the customer after they have forwarded (sent) it to an internal spam "honey pot". Therefore, the customer uses up limited contract outgoing text messages to be credited for incoming spam. Do I have that correct?

    The customer is STILL PAYING!!!
  • Jennifer Simmons Posted Jul 15, 2008 by  Jennifer Simmons
    #23
    The reason I commented on this is because I am tired of consumers whining before they understand the facts. I work in a retail environment (not for TELUS) and constantly get blamed for everything from taxes to no refund policies.

    To answer your question, no the customer will not be charged for texts to the "honey pot". So the customer IS NOT STILL PAYING. Also, the customer has the option to disable the texting feature if they prefer. Cellular is not a god given right, it is a service that we opt to pay for. If you disagree with what's offered don't buy the service. I think Starbucks coffee is overpriced, so I don't buy it. I don't sit around cursing Starbucks execs or telling employees to "shove it". Let's start taking a little responsibility here.
  • avatar Posted Jul 16, 2008 by  Sykos Masters
    #24
    @Jennifer

    Thanks for the clarification; it would have been grand if Telus had bothered to make that clear in the first place.

    I'm truly sorry that you "get blamed for everything" in your job in retail. However, as you so said, "if you disagree with what's offered", i.e., don't like this aspect of customer service, then perhaps you might want to work in another environment.

    Also, the customer has the option to disable the texting feature if they prefer.


    This is the standard and very unhelpful response that is given each and every time a vendor changes their policies. Throw the baby out with the bath water because the vendor has made a poorly thought out decision. If your logic was applied, all customers that object to these charges would unsubscribe from texting, many would then cancel their contract and move elsewhere, Telus would then be left with a smaller customer base from which to draw revenue, resulting in either higher fees for those left or the company re-evaluating their new policy after the fact.

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