3-year Smartphone Purchase Options Return to Rogers

By Stephen Clark

Last updated 10 July 2019

Article Summary

Rogers has added 2-year and 3-year financing options on all new smartphones and rebranded the old tiered plan system with "Tabs" to make things simpler for consumers to understand. We cover which is the cheapest option and how Rogers gets around the CRTC's ban on 3-year contracts.

In less than a month we've seen a complete upheaval in how cell phone plans are priced from Canada's three largest mobile carriers. Between new unlimited data plans, keeping old rate-based pricing and introducing 0% financing there have been a lot of changes. If the start of Summer had you miss some of the key information, read on because we cover what's changed, what you can expect within the next few weeks, and how to get the best deal out of it.

Today, Rogers launched their new Edge Financing option allowing customers to buy a device upfront and spread payments over 2 or 3 years of monthly payments. The older, two-year tiered contract system is still in place for online orders but packages are renamed to "Tab 20", "Tab 30", and "Tab 40" reflecting the additional cost in dollars on your monthly bill.

Rogers Edge Financing Details

At the moment, Edge Financing is only available if you make a purchase through a Rogers or Rogers affiliate storefront.

Any smartphone, eSIM-enabled smartwatch or tablet can be bought for $0 down
Financing contracts offer 0% interest over 2-year or 3-year plans, but
Taxes on the device must be paid upfront
Credit must be approved or you may be asked to make a $500 deposit
Currently only available through in-store purchases
Can be combined with Upfront Edge leasing to further reduce monthly cost

Purchasing is handled separately from your cell phone plan, but you must maintain a monthly plan for the duration of your financing term.

Your cell phone plan and financing payments show as separate items on your monthly bill
You cannot downgrade your plan for two years without cancellation fees
After two years you can cancel without additional fees, but must immediately pay the balance on 3-year financing terms
After the financing term is up, your monthly bill drops down to just the cost of the plan

Rogers Tab Details

If you're buying a device through Rogers.com then your only option is their rebranded Tab program.

The Tab smartphone purchase structure at Rogers involves different pricing for the same plans based on the value of the device. You pay an additional $20, $30 or $40 on top of your monthly plan.

All contracts are 24 months (2 years)
Some more expensive smartphones require an upfront payment
Promotional cost of the device can be lower than financing or buying outright
After two years the monthly bill is not automatically lowered to just the price of the plan
Available on all smartphones, eSIM smartwatches and tablets
Also available through in-store purchases

CRTC Ruling on 36-month Contracts

In the tech industry where last month feels like last year and six months seems like ages ago, paying off a smartphone contract for a three year old phone can make consumers feel trapped.

Since 2015 the Canadian Radio-television and Telecommunications Commission (CRTC) established consumer rights in the Wireless Code of Conduct and restricted cell phone plans to two years. After 24 months, consumers can cancel a contract with no prohibitive cancellation fees.

How the CRTC Ruling Affects Rogers Edge Financing

It appears that paying the taxes upfront (which can be quite a lot) could mean that you're technically buying it on day one and financing the full cost of the device. That means that after 24 months of a 36-month financing plan you can cancel or downgrade your plan without any penalty fees, but you must pay off the rest of your device immediately.

Even so, consumers who don't upgrade every two years may find value in this option. Three year plans have started showing up in the US mobile market. This workaround by Rogers could be a way for it to be reintroduced to the Canadian market without any loss of consumer rights.

Rogers Infinite plans radically changed the landscape for mobile plans in Canada. We compared it to other unlimited data plans in Canada. We've also looked to see if it's better than unlimited data plans in the US (hint: it's not).

Comparing Financing to Tab Plans

Let's do an Apples-to-Apples comparison using the purchase of the popular iPhone XS. We'll use Ontario's 13% HST tax for our example.

Buying the iPhone upfront from Rogers:

Upfront: $1,410 + tax = $1,593.30
Monthly Bill: $75 + tax = $84.75/month
Total cost of device: $1,593.30

Since you're not on a contract, you can leave or change your plan at any time.

With Rogers Tab 40:

Upfront: $450 + tax = $508.50
Monthly bill: $115 + tax = $129.95/month
Total cost of device $1,593.30

With Rogers Edge 2-year Financing

Upfront: $183.30 (HST on new phone purchase)
Financing payments: $1,410 / 24 months = $58.75/month
Monthly bill: ($75 + tax) + $58.75: $143.50/month
Total cost of device $1,593.30

With Rogers Edge 3-year Financing

Upfront: $183.30 (HST on new phone purchase)
Financing payments: $1,410 / 36 months = $39.17/month
Monthly bill: ($75 + tax) + $39.17 = $123.92/month
Total cost of device: $1,593.42

While total cost of the device currently works out to about the same across all options, promotional discounts will typically be reserved for Tab plans.

Prices are accurate as of July 10, 2019