Taking the Wind Out of Their Sales

So we’ve got telecoms suing each other over their ad claims and trying to block new entrants with lobbying. We’ve got a new entrant that has finally made it to market. And we’ve plenty of new phones and changes to plans happening here in Canada.

What does it all mean?

Sadly, not much!

For all those people who think Wind is going to come in and give away free mobile phone service, like Santa Claus handing out candy-canes at the mall I’ve got a reality check for you. Besides the fact you can only get Wind in Toronto and Calgary at the moment; and as soon as you leave your WIND HOME zone you’re roaming at 25 cents a minute. Not to mention they didn’t manage to buy any spectrum in Quebec (Quebecor/Videotron got it all – unlike what someone people suggest it has nothing to do with racism, check the blog post by Chris at Wind Mobile’s web site).

Bell Nokia N97 Bell LG Xenon Wind HTC Maple
Phone $199.95 $89.95 $300.00
Plan $50.00 $35.00 $35.00
Features $12.00 $15.00 $45.00
Monthly total $62.40 $50.40 $90.00
3-yr total $2,446.35 $1,904.35 $3,540.00

Now it’s obvious the best deal is an LG Xenon from Bell; but why? I mean that’s where the fun comes in, is making the comparisons because everyone packages things slightly differently so you can’t make exact comparisons. For starters, the N97 is only available from Bell and the HTC Maple is only from Wind so if you absolutely have to have either of those phones the choice is already made!

The other big difference in the table above is the phone cost with Bell is for a 3-year contract but Wind doesn’t have contracts so they make you buy the phone outright. With Bell, the no-contract price for an N97 is $599.95, this would add $300 to the cost of the Bell, still no where near what you’d pay Wind after three years.

And as far as I’m concerned there’s nothing wrong with a 3-year commitment if it saves you $300! You’re going to have to get service from someone so why not get a cheaper phone while you’re at it; and if you loose or break your phone you’re going to have to pay full price to replace it whether you’re on contract or not. Besides, my usual impetus for buying a new phone is my wife complaining that I’ve used up all the elastics to hold my phone together!

The other problem with comparing Bell to Wind is how they package their features – even at Bell it’s tough to compare an N97 (smart phone) to a Xenon (regular phone). You could argue I get a lot more value from what I pay Wind but what I’ve selected here is the minimum from each carrier to get me what I need. Since the N97’s plan includes 500 MB of internet data I’ve added Caller ID and 250 text messages; the Xenon’s feature is a Fun 15 pack including Caller ID, 250 text messages, voice mail, and unlimited internet; and the Wind’s features are voice mail, text messaging, and internet.

So print out this article and the next time some clueless moron starts ranting about Robelus raping the population and how Wind is going to save us all you can take your print-out, roll it up, and beat him senseless so at least he shuts-up! You might even consider leaving him a copy of the print-out (use his blood to underline important passages) if you think he can read and might be able to get a clue.

Cross-posted on Cameron-Schultz at Taking the Wind Out of Their Sales

12 comments

  1. I'm currently preparing a proper and substantiated reply this this post that i find more biased than Harper at an environmental meeting.

    Adi

  2. I assume by that you mean my post was totally fair and balanced. After all, Harper wasn't very present at Copenhagen (and especially not the G20 – make that G19 – meeting afterwards).

  3. Wow talk about comparing apples and oranges, and I'm not even talking about the iPhone Variety.

    Like a true economist you've taken actual numbers and manipulated them to mean the exact opposite of what the factual sum truly is. Why can't economist learn math like all the other REAL scientists. If you're going to compare the Canuck Telco Landscape, you have to include more than 2 players and put them all on an equal level: the same hardware the same plan and the same features: The BlackBerry Bold 9700 on Wind All talk $30 plus their all data feature for $15.

    Canuck Telco Landscape
    Bell
    Rogers
    Telus
    Wind
    BlackBerry Bold 9700
    $200 $200 $200 $450
    Plan
    40 50 50 45
    Features
    51 25 31 0
    Minutes Included
    150 200 150 Ultd
    Data Included
    Ultd 0.5GBb 0.5GB Ultd
    Monthly Total
    91 75 81 45
    3 Year Spend

    $3475.95
    $2899.99
    $3115.99
    $2070
    Ultd Wind Matching Local talking, basic email Local talking, text, email Cal display, forward, local talking, email All features included


    You can view the original Google SpreadSheet here

  4. I'm currently preparing a proper and substantiated reply to this post that i find more biased than Harper at an environmental meeting.

    Adi

  5. I assume by that you mean my post was totally fair and balanced. After all, Harper wasn't very present at Copenhagen (and especially not the G20 – make that G19 – meeting afterwards).

  6. Wow talk about comparing apples and oranges, and I'm not even talking about the iPhone Variety.

    Like a true economist you've taken actual numbers and manipulated them to mean the exact opposite of what the factual sum truly is. Why can't economist learn math like all the other REAL scientists. If you're going to compare the Canuck Telco Landscape, you have to include more than 2 players and put them all on an equal level: the same hardware the same plan and the same features: The BlackBerry Bold 9700 on Wind All talk $30 plus their all data feature for $15.

    (..DISQUS won't allow the posting of images or tables in the comments. So you will have read my own post to see the table.) <img src=”http://www.2fatdads.com/wp-content/uploads/Canuck_Telco_Landscape.png” />
    You can view the original Google SpreadSheet here

  7. No, the point is you don't try to make them all equal and compare because you can't! They've made it impossible to do direct comparisons. And you shouldn't anyways. Most products & services try to distinguish themselves so direct comparisons are difficult, but Canadian Telcos have done an exquisite job of it.

    What you do is figure out what you need, as exactly as possible, and then take the minimum offering that at least meets your needs. Then compare those.

    DO NOT fall into the trap of justifying a few more dollars here and there because you get double-this or unlimited-that. You don't need it!!! So why pay for something you don't need and are not going to use?!?!?!

    The comparison has to be based on what it costs you to get what you need. Whether it's apples, oranges, mobile phones, cars, etc.

  8. I really love it when an ECONOMIST tells me that a direct point for point comparison is NOT what I'm looking for. If I want to buy a BlackBerry Bold 9700 than I seeing what all the networks have to offer including unlimited local calling and unlimited basic email is exactly the kind of chart I want to see. And eyes you can compare them equally, it just sucks to do it and it sucks even more when you realise that what you wanted actually sucks too.

    You simply can not compare the Nokia N97 Smartphone to the LG Xenon regular phone simply because they both have keyboards. One has full web service integration and support for MS Exchange mail and the other is a piece of crap that barley does txt messaging and doesn't even make phone calls properly. I will let you guess which is which. Further your chart does not even provide a similar crappy phone from Wind.

  9. I think you both are missing the most important factors in this new Canadian wireless reality :

    1) Wind does NOT make a profit on phones they sell. Hence why you can grab the BB 9700 for 450$ instead of $599.99. In other words, Hell makes a nice 250$ profit while selling you a freakin LOCKED phone.

    2) Contracts DO matter. I remember a time when Fido had no contracts and automatically gave you a new phone every 2 years just for staying with them. That's right, they gave you a brand spanking new phone with NO contract obligation whatsoever. Signing up for a 3 year contract makes absolutely 0 sense right now when new carriers are launching their networks left and right. I'm thinking : Public mobile and Videoblows as something that's relevant to Quebecers. Why sign a 3 year contract when Videotron will lanch their network next year and would most likely offer better prices than the big 3. Keep in mind also that the 3 year contracts on smart phones include mandatory data plans with its own separate cancellation fee. In other words, you'll pay a cancellation fee if you cancel your contract for voice and you'll pay an additional cancellation fee when you cancel your data plan. Very uncool. But lets say you do stick with Robbers/Bellus for those 3 years. What do you end up with at the end ? An old locked and useless phone. (That's if it even lasts for 3 years to begin with..)

    Adi

  10. No, this is why economists invented things like “utils” and “real value” so you could make comparisons when direct – i.e.: nominal – comparisons were not possible or relevant.

    The point is you need to compare the satisfaction of your needs. You don't go out looking at what's offered and try to make them comparable. You'll always end-up selecting something you don't need.

    If you absolutely have to have a Bb 9700 then that's great, you can make a nominal comparison. If not, then you need to find the phone from each carrier that best meets your needs.