An Open Letter To “My Best Friends At Rogers”

Now to be honest, we’ve haven’t always seen eye to eye on things. But I must admit that out of all the companies that I write about, you guys are the most responsive when it comes to me asking for comment, or letting me know about new things that you’re doing. You’ve even let me test drive your products. Now I’d like to flip the script and make a suggestion that I hope that you’ll take to your management and implement quickly. With the CRTC decision to implement usage based billing on Canadian DSL users, I feel that you have a tremendous opportunity to pick up market share from those users as they are likely looking for options. With that in mind, here’s how I think you could leverage this situation to grow your profits market share:

  • Make the lowest tier that you offer 5 Mbps downstream/512 Kbps upstream and price it at $35 a month with a 100 GB cap. Then I would keep the rest of your tiers the same, but increase the caps to the following:
    • Express: 150 GB a month
    • Extreme: 200 GB a month
    • Extreme Plus: 250 GB a month
    • Ultimate: 300 GB a month
  • Upgrade your current lite and ultra-lite customers to this new 5Mbps tier. That would score some major brownie points with those users.
  • While you’re at it, you may want to play with your pricing a bit. By that I mean lowering every tier above the 5 Mbps tier by about $5 – $10 a month.
  • I’d also offer static IPs as there are many legitimate reasons why a consumer may want a static IP that doesn’t involve something that is bandwidth hogging. I’d charge $5 a month for that and I’d even suggest that you aggressively go after those who use static IPs to set up a torrent server or something. I’m cool with that. Really, I am.
  • Reduce the overage charges to a flat rate of $0.50 a month regardless of what tier you’re on. Think about it: You want people to go over their caps so that you can make money. But you have to make it affordable so that people won’t think twice about it. This price point is one that meets that objective.

Now, readers who don’t work for Rogers are going to be thinking “where’s the unlimited plan?” There isn’t one, deal with it. I’ve said it before and I’ll say it again. Bandwidth isn’t free. People should pay for what they use. Period.

So given the current climate, how about it? I’m pretty sure that you’ll really turn the Canadian Internet market on it’s head if you did that. You’d pick up a pile of customers (with yours truly being at the front of the line) and make your shareholders a pile of cash. Isn’t that what business is all about?

I look forward to your response.

Regards,

The IT Nerd.

5 Responses to “An Open Letter To “My Best Friends At Rogers””

  1. Actually, at least one major Tier 1 internet supplier sells unlimited pipes. And no Tier 1 supplier charges or limits by the GB They’re usually 95th percentile.

    Limiting anything by GB simply doesn’t make sense when you know how the ISPs buy their bandwidth. It’s the same as the grocery store “Limit X” when they have a sale–except in this case the ISP is actually making money and isn’t pushing a loss leader. As you use more bandwidth, prices per GB should go down.

    • Oh really? Who would this Internet provider be? I’m sure Canadians everywhere would want to know.

    • Looks like TekSavvy has just updated their new cable internet offerings and I have to say it looks GREAT. Not sure how they’ve done it since they’re reselling Rogers, but their offerings and limits are much better and THEY ARE ALSO OFFERING UNLIMITED cable internet. Keep in mind cable internet is very new to TekSavvy (just available this month) and is still being rolled out across Ontario. Very limited availability but will become available to more areas over the next few months. I’m biased as I left Rogers for TekSavvy for both home phone and internet as Rogers told me in many ways they no longer wanted me as a customer (forcing me to switch to their cable phone or be disconnected and lowering my grandfathered Lite internet from 60 to 25 GB). I currently have their DSL internet.

      Check out the TekSavvy cable internet offerings. Depending on what tier you pick, you would have from 200 GB to unlimited. Even their lowest tier, Lite, has 200 GB for $27.95/month. Unlimited is $54.95/month.

  2. Very good suggestions, but I can almost 100% guarantee Rogers would never do this considering they’ve just gone the other way and increased overage fees. TekSavvy has just started offering cable internet in Toronto as of May 6, but of course since it is limited as a wholesaler to the same caps that Rogers places on their own customers.

    I never go over 60GB but left Rogers for TekSavvy DSL when Rogers took away my grandfathered cap earlier this year. I’ll be sticking with the DSL.

  3. I just got off the phone with Rogers to get a static IP for my Rocket Stick and they wanted $100 per month! I even asked them to verify this with the tech dept. and the management.

    Let me know if you hear of any less pricey solutions..or of course, if Rogers lowers this prohibitive price.

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