Would the iPhone Sink in Canada?

Tris Hussey

Confirming want I heard on the way home from Office 2.0, looks like the iPhone is ready to come to Canada–Beta news–or is it?

Rogers, Canada’s only major service provider that could offer the GSM service (the iPhone, so far, works only on the GSM network), is faced with a decision: Lower its data rates to make the iPhone attractive or keep the data rates and watch iPhone customers stay away in droves.

Canadians would have to pay $400 for the iPhone, and to use all the iPhone features, about $300 a month in voice and data fees (the iPhone is a heavy user of mobile data transfer). By comparison, AT&T, the sole company offering the iPhone in the United States, allows a plan for $100 that includes 1,350 minutes of voice calls, unlimited data, video voice mail, 200 text messages and unlimited use nights and weekends.

The iPhone would be too expensive for Canadians to buy even if they had a data plan that charged them $100 a month.

So far, Rogers has been sitting on its hands, unwilling to cut its rates because it is still unsure whether there would be enough of a market for the iPhone to offset such a major cut. Source: globeandmail.com: Kapica’s Cyberia - How to get an iPhone

Okay. So Rogers is sitting on their hands on one of the most innovative mobile devices we’ve seen because they can’t decide to make their data more reasonable? Pity.

Hat tip to Michael Geist.

Technorati Tags: blognation, blognation Canada, iPhone, Rogers Wireless

dc crowley NETHERLANDS

Says:
October 13th, 2007 at 8:49 am

That is a pity, but it takes 2 sides to agree a contract! How well are other smartphones selling in Canada then? Rogers will sell any phone I’m sure if they can make money selling it

Jim Courtney Says:
October 13th, 2007 at 5:10 pm

There is a second forthcoming device that is also contributing to Rogers decision on data plans. If Rogers is to fully implement the Blackberry
8320 and 8820 — both of which support WiFi — they would need to provide UMA/GAN support so that both voice and data can be connected by WiFi when in an appropriate WiFi zone (like my home network). (Works fine via WiFi on the data side for email, browsing and even Skype IM utilities without UMA/GAN.) So there is additional pressure for lowering data plan costs — and, based on a quote of Jim Balsille in the G&M last week, I’m sure some of the pressure is coming from our Home and Native Blackberry producer.

Also keep in mind that Rogers is also a participant in the Canadian HotSpot Network which provides WiFi at Starbucks, Second Cup, Toronto Airport and many other retail locations. And I hear rumors it is not a heavily used service.

So it’s the combination of iPhone, Blackberry/RIM and the Canadian Hotspot Network that are contributing in Rogers’ decisions on data plans. (And now some heavy data users are figuring out, depending on usage level, it may be cheaper to get the device in the U.S. and buy a North American roaming plan.)

There are already blog posts about T-Mobile’s @ Home service using UMA/GAN since the 8320 was introduced there three weeks ago; thus a T-Mobile subscriber can make voice calls and data connections at any US Starbucks.

More at http://skypejournal.com/blog/2007/10/blackberry_with_wifi_first_loo_1.html

Says:
October 13th, 2007 at 5:21 pm

Good points. I also thing the cost of data will drop worldwide anyway. That gives rise to the question how profitable can you remain under an iPhone contract when data costs drop and you have an fixed period deal with Apple inc.

While the iPhone is selling well now, it is doing so on the back of hype. When the reality check sets in what will happen then? I see iPhone deals having to crumble eventually. I don’t see them surviving as they are.

Jim Courtney Says:
October 13th, 2007 at 5:26 pm

I have just reviewed the comments from Jack’s original post and, in fairness to Rogers, there is a response from their VP Communications. We sometimes forget that Canada is not the largest market to pursue after the U.S. Seems like Apple Canada also needs to get up on the radar visibility at Apple HQ:

Taanta Gupta from Toronto, Canada writes:
Actually we have been public about the Apple iPhone and it is not in the least bit embarrassing. We do not have control of when Apple chooses to enter the Canadian market. When it does, we will be ready . Let me quote the President of Wireless, Rob Bruce from as far back as a couple of months ago” The iPhone is a phenomenal product and we look forward to being able to offer it in Canada. As far as when, I cannot give you a precise answer. I would say it is fair to say that it is a big world out there with more than 2 billion GSM subscribers and if you believe what you read in the papers, Apple is focused on where they will go next after the US in terms of its next set of very large markets. I can tell you that we’re ready to move forward in Canada and we’re excited to continue our dialogue with them whenever they are ready”.

Stating that Rogers has been “sitting on its hands” is not just inaccurate, it is plain foolish. We very much look forward to the day we can launch the iPhone in Canada.

Taanta Gupta
Vice President, Communications
Rogers

Tris Hussey CANADA

Says:
October 13th, 2007 at 7:39 pm

Excellent points Jim. Yes, there are two sides to this … but Rogers does have terribly high data rates. Telus isn’t much better. In order for mobile innovation to really take hold here, we have to have better data rates.

Jim Courtney Says:
October 14th, 2007 at 5:15 pm

I agree on Rogers data rates; just need to separate the iPhone availability issues (aka Apple’s market priorities) from data rate issues.

I should also mention, when talking about UMA/GAN and its ability to handle voice via WiFi access points, this technology only works on GSM networks; so once again Rogers is the only Canadian provider technically capable of supporting it.

Grailielt