Telecom Trends: Still down on the iPhone?

Monday, July 14, 2008

Still down on the iPhone?

What is with the continued negative publicity on the Rogers iPhone?

Friday's launch gave Canadians the latest generation device on the same day as it was available anywhere with among the lowest prices in the world.

People seem to still be griping that Rogers has a cap on data at 6GB. Can we try to put 6GB in perspective?

Remember that your cable internet, shared between all the computers in the house, has a cap of 60GB for $45.

I suspect that most people will find that 6GB is virtually unlimited. Indeed, it seems that most US carriers that advertise 'unlimited data' actually impose limits - lower limits than Rogers' 6GB offer.

Of course, some people like to find things to complain about.

Maybe it is time to kvetch about something more important - like the weather.

Technorati Tags:
Rogers, AT&T, iPhone

Posted by Mark Goldberg @ 7/14/2008 06:12:00 AM

Comments:

First, it's a limited time offer. They tried to leverage the iPhone brand to justify ludicrous pricing on data, and people don't forget that easily. They'll jack the pricing back up for new contracts soon enough.

Second, it's a mandatory 3 year contract. They are trying to tie people to Rogers for a couple of years after the competition in the field is increased next year. Prices will come down and people will want to change carriers, but those who want an iPhone will be stuck with Rogers.

Posted by

Anonymous : 7:59 AM, July 14, 2008

Mark, you are being disingenuous.

Just one week ago when I specifically asked about your intention to comment on the iPhone pricing outcry, your response was straightforward and entirely appropriate

"I don't plan to weigh in specifically on Rogers' iPhone pricing other than to say that I think that any company, in any business, not only has the right to charge what the market will bear, but has a duty to its shareholders to maximize profits."

Now, after Rogers buckled under public pressure and tripled their data limit - and again, let us not forget that they are very clear that this measure is TEMPORARY - you are seriously going to write a post defending Rogers? All us pathetic whiners need to get over it and get on with life? Waste our energies complaining about the weather because that's time better spent?

The only reason that Rogers increased their data limit - TEMPORARILY - was as a result of the negative publicity that was being generated by Canadian consumers. They attempted to maximize their profits beyond the limits that the public would accept quietly. This is why the negative publicity persists. The public believes - rightly or wrongly - that Rogers was engaged in gouging. Operating in a de facto monopoly provides clear business advantages. It does not, however, create immunity from negative public perception.

Rogers will still post annual profits in excess of $1B and can afford to pay their own mouthpieces. They don't need any assistance with public relations efforts.

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