How much will Rogers charge for Apple iPhone in Canada?

“RBC Capital Markets analyst Jonathan Allen believes the gadget will prove to be a meaningful catalyst for the stock, accelerating subscriber growth by 150,000 in the first year of launch and consequently contributing to EBITDA. He expects Rogers will get a exclusive deal to offer the iPhone in Canada that may last four years or more, ensuring its competitive advantage and its position as the company that will offer the 3G version,” Jonathan Ratner reports for The Financial Post.

“‘In our opinion, distribution is a key consideration for Apple’s market growth strategy… and Apple would be more comfortable entrusting Rogers, which has the most proprietary stores and subscribers in Canada, with a lengthy deal,’ Mr. Allen told clients,” Ratner reports.

“Apple may agree to a ‘virtually unlimited’ plan with Rogers for $35 a month (excluding voice) with data usage of 100 or 200 megabytes per month, the analyst suggested, adding that this should be more than sufficient. Apple could also insist that an ‘all-in’ voice and data plan include things like free call features. Combined plans such as this, with 250 to 500 anytime minutes and unlimited evenings/weekend calls after 9 p.m., may cost $80 to $100 per month, Mr. Allen suggested,” Ratner reports.

Ratner reports, “As for the price Rogers will charge for the iPhone, he expects it will be around $399 for the 8 gigabyte version, with a three-year contract.”

Full article here.

25 Comments

  1. Yawn…..As a Canadian, I can never see buying an iPhone from Rogers because they will rip this opportunity off for everything it is worth. Only in Canada could an “Unlimited” plan have a limit!

    And calls after 9 pm a free!!! Wow. How generous. That really wakes me up.

  2. “Only in Canada could an “Unlimited” plan have a limit!”

    Nonsense. Absolute bunk. All plans have limits, no matter if they say “unlimited” or not. Even the so-called unlimited plans in the US from AT&T;have a limit at which they will cut you off (I think it’s somewhere around 200mb, but I’m not sure).

  3. “All plans have limits, no matter if they say “unlimited” or not. Even the so-called unlimited plans in the US from AT&T have a limit at which they will cut you off (I think it’s somewhere around 200mb, but I’m not sure).”

    Sadly, it’s a bit more vague than that:

    “Data Service sessions may be conducted only for the following purposes: (i) Internet browsing; (ii) email; and (iii) corporate intranet access (including access to corporate email, customer relationship management, sales force automation, and field service automation applications). . . . .Service is not intended to provide full-time connections, and the Service may be discontinued after a significant period of inactivity or after sessions of excessive usage. AT&T reserves the right to (i) limit throughput or amount of data transferred, deny Service and/or terminate Service, without notice, to anyone it believes is using the Service in any manner prohibited above or whose usage adversely impacts its network or service levels or hinders access to its network and (ii) protect its network from harm, which may impact legitimate data flows.”

    (I omitted the prohibited uses but you can find them here:
    http://www.wireless.att.com/learn/articles-resources/iphone-terms.jsp)

  4. This is just Rogers using RBC to throw out some “test” numbers to see what sticks. They want to gauge the reaction and determine how much they can get away without looking like the greedy monopolists they are… “Let’s get RBC to do it! Yeah, That way we can say it was never our intention to charge that in the first place — BwahHaHaHa” (rubs hands together).

    So far it looks like they’ll have to revise the plans and pricing ’cause I think these rates will be met with more than a little resistance.

  5. Work pays for my cell phone. I use an iPod Touch. The only advantage to getting an iPhone is to have the internet available in non wifi spots. It is not worth $80 a month to me. Rogers will need to be competitive with data plans.
    My work has already been screwed over by Rogers data plans so having them get me one is out of the question.
    BTW, Rogers did not say they have an exclusive deal. It’s a long shot but we can still hope.

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