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telus has introduced a couple new policies recently that could result in customers getting upgrades sooner, and seeing lower, more proportionate early cancellation fees. The new hardware upgrade program introduces an Early Device Upgrade fee, which is calculated based on the type of the device you last received, in addition to the number of months remaining on your contract.
Here's how the upgrade fee is calculated:
Voice or Feature Phone - $5 x number of months remaining in contract. Includes standard flip phones, sliders, non-data devices
Smartphone or Feature phone (with minimum data commitment) - $10 x number of months remaining in contract. Includes BlackBerry, Android, and Windows Phone 7 devices
Premium Device - $15 x number of months remaining in contract. Includes iPhones
Here's the example provided on the telus website:
Pat has an LG Keybo and wants to upgrade to an HTC Desire. He has 15 months left on his contract. What does Pat pay to upgrade?
Pat pays $75 (15 months x $5) in addition to the new device cost ($79.99)
There are a couple of rules that come along with this new upgrade program, like that you must complete at least 6 months of your current contract before being eligible for upgrade at all, and customers on the Credit Limit Program are no eligible for any early upgrade offer.
The cancellation policy is also based on which device you last received, but is more specific. Essentially, your early cancellation fee is calculated using the exact discount you received on your last device, and the time remaining on your contract. There is also a $50 admin fee for non-Quebec customers. It's important to note that this new cancellation fee policy applies only to customers who activated or renewed on or after November 21st, 2010. Other customer who wish to cancel would still have to pay $20 x the number of months remaining on their contract.
Here are some examples of how the policy works:
At activation, the customer receives a $400 discount on a 36 month service term. After 20 months, their cancellation fee will be:
Monthly pro-rated discount = $400 / 36 months = $11.11/month
Remaining discount = $400 - ($11.11 x 20 months) = $177.76
Non-Quebec: Total Cancellation fee = $177.76 + $50 Admin fee = $227.76
Quebec: Total Cancellation fee = $177.76
So there you have it, two new policies coming out of telus. What do you think about the new early upgrade program? What about the new cancellation policy?
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