Thursday, July 3, 2008

The iPhone's cross-border price clash

The summer launch of the iPhone in Canada was supposed to be a time for Rogers Wireless Communications Inc. to celebrate. Instead, the company with exclusive rights to the hottest new tech gadget finds itself on the defensive, stung by public criticism over pricing.

Rogers should be basking in the glory, riding the Apple Inc. wave of wireless hipness, in addition to readying itself to enjoy a profit windfall from customers who get hooked on new services, such as Web browsing, e-mail and video streaming.

But some consumers who are looking at annual fees that could easily exceed $1,000 are crying foul, noting that Rogers' pricing plans are more complex and expensive than those offered in the U.S. and many other parts of the world.

For example, for $75 a month, Rogers provides 300 weekday voice minutes, 750 megabytes of data and 100 text messages. In the United States, a customer gets 450 weekday voice minutes, unlimited data and 200 text messages for the same price.

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