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Rogers Ripoff: Will Double Maximum Overlimit Fee to $50 for Broadband Customers

Phillip Dampier January 6, 2010 Broadband Speed, Canada, Data Caps, Editorial & Site News, Rogers 15 Comments

Just like the credit card companies, once a broadband provider wedges its foot in the door with Internet Overcharging schemes like consumption billing and usage allowances, they can push it open further and further, allowing your money to fly out the door into their pocket.

Rogers Communications, the dominant cable broadband provider in eastern Canada has quietly planned to double the maximum overlimit penalty customers pay for exceeding their usage allowance.  Effective this March, Rogers will confiscate up to $50 from you for daring to cross their arbitrary allowances, which range from a piddly 2GB on their “Ultra-Lite” plan to 175GB on their $100 “Ultimate” plan.  That’s double the old maximum penalty of $25 a month.

It appears many Canadian broadband customers simply took it for granted that unlimited broadband, regardless of the tier they selected, would cost an additional $25 a month.  Many begrudgingly paid it, knowing in many areas all of the alternatives had Internet Overcharging schemes of their own.

Broadband Providers Limbo Dance: Lowering Your Value With Internet Overcharging Schemes

As Stop the Cap! has warned repeatedly, once broadband providers establish such schemes, they can begin a limbo dance with their customers, reducing the value of the service they receive by either increasing the penalties for exceeding usage limits, or simply reducing usage allowances to expose more customers to profit-padding fees and surcharges.

Rogers is taking a page from companies like Time Warner Cable that wanted to implement their own Internet Overcharging scheme in April 2009 with a maximum overlimit penalty of $100.  For broadband providers in Canada like Rogers who double such fees, there is plenty of room to grow them further.

Rogers charges customers trying to keep to a broadband budget some stunning overlimit fees as it is.  Their Ultra-Lite plan exposes customers to a future bill up to $76.00 a month, all for 500kbps service, and that’s before taxes and surcharges.  That’s because Rogers charges customers exceeding 2GB per month a whopping $5 for each additional gigabyte of usage.

Most Rogers customers end up on plans like “Express” which charges $46.99 a month for 10Mbps/512kbps service, with a 60GB usage allowance.  But with Rogers’ new overlimit penalty fee, customers opening their bills could find that service costing them $97 a month instead.  That’s a bill only a credit card company could love.

All this, when Rogers’ costs to provide broadband service continue to decline.  Rationing broadband is profitable and and shareholders love it.  Considering the  regulatory agency that is supposed to watch out for Canadians, the Canadian Radio-television Telecommunications Commission (CRTC), more closely resembles a cable and telephone industry lobbying group, there is nothing to stand in the way of even greater fee increases in the future.

Oh, and they get to throttle your broadband speed down… way down, for any online application they feel consumes too many resources on their network, so customers can’t even use the service they pay good money to receive.

Nadir Mohamed, president and chief operating officer of Rogers Communications Inc., admits it’s all about the money.  In June 2008, he told the Canadian Telecom Summit, “Usage-based billing is a reality for wired and wireless network,” he said. “The capacity is exploding, and we need to be able to monetize some of that.”

A person representing themselves as a Rogers social networking rep, “RogersMary” told customers Rogers had increased the value of their broadband service:

We always want to offer our customers great quality of service for the best value. In the last year, we have made network and technology investments that include improvements in download speeds, expanding our network in other parts of Canada and launching Rogers On Demand Online free to all customers that subscribe to any Rogers product. In terms of pricing, we have reduced higher tier services such as Extreme Plus ($69.99 from $99.95) and Ultimate ($99.99 from $149.99). Based on our research, the vast majority (90%) of Rogers Internet customers do not go over their usage limits each month and will not be impacted by changes to overage charges. If you do, I would suggest calling Care to discuss which plan best suits your Internet use.

If you call, ask Rogers which plan doesn’t include an Internet Overcharging scheme.

Currently there are 15 comments on this Article:

  1. jr says:

    Nadir got a 1.4 million dollar bonus in 2007. Customers have to pay for the ceo’s lifestyle

  2. Ian L says:

    Well, the maximum charge for residential internet service *did* go down; Extreme and Extreme Plus prices were reduced enough that the maximum charges for those tiers (including overages) is less than the plan + overage price before. That said, the pricing still sucks, especially with the subpar upload speeds Rogers is trying to foist upon its customers. I mean, come on, 2 Mbps up on the highest-speed plan? Even TWC does better (2 Mbps on the local area’s 15 Mbps plan, 5 Mbps where 50 Mbps DOCSIS 3 is available).

  3. Ian L says:

    Also, the caps are crappy across the board. 175GB on a $100 plan is just as disgusting as 2GB on a $26 plan. The overlimit fees are also out of whack; 50¢ per GB is where they should be across the board, if not lower; $1.25+ per GB is insane.

    FWIW there are ISPs who are trying to combat this model, particularly a new one or two: http://gorillanet.ca. Caps are still around, but overlimit fees are reasonable and if you want to do heavy download there’s a period where they don’t count against your cap.

  4. shane says:

    Seriously there is no excusing this! I already pay their flippn’ $25 overcharge crap and I was sick of that. Right now I am also conveniently in an area that by chance only gets rogers and no one else. We all just sit back and take it but it’s not right. The second that I can get a private company with unlimited bandwidth (even if the speeds are lower because bell rents to them) I’ll be gone from rogers and be a very happy guy. Thanks for the article.

    • Mojo man says:

      WTF!!!! I CURRENT PAY 25.00 FOR 60 GIGS A MONTH, MARCH 1ST IT WILL BE 2 GIGS!!!!
      REALLY? 2 GIGS, NO ONE IN THEIR RIGHT MIND WILL PAY FOR 2 GIGS A MONTH, IF I WANT TO KEEP MY CURRENT 60 GIGS, MY MONTHLY RATE WILL DOUBLE TO 50 BUCKS, ARE THEY ON CRACK, THIS IS THE BIGGEST RIPOFF IN CONSUMER HISTORY, THEY ARE GOING TO LOOSE TENS OF THOUSAND OF CUSTOMERS, THIS IS SO DISGUSTING, UNBELIEVABLE!!!! F U ROGERS, YOU SCUM SUCKING LOW LIFE PIECES OF CRAP, YOU MAKE ME SICK, GOVERMENT NEED TO STEP IN HERE AND REGULATE THIS. ROGERS = EVIL RIP OFF SCUM SUCKING LOW LIFES.

      • rogersripoff says:

        i agree mojo…. its insane, not caring for the common man.

        • Mojo man says:

          My mood has really improved dramatically since that last post, i found THIS!!

          http://www.acanac.ca/DSL.html $18.00 !! for much faster internet with 100gigs of data, hmm thats a tough choice, 28 bucks for 2 gigs a month at rogers or,or 18 bucks for 100gigs, um I think I will have to go with acanac at 18 bucks a month, or one of many other providers for superior service, changing service providers allows you to take advantage of new customer deals, so canceling my
          ROGERS account has turned out to be a blessing in disguise. so THANK YOU ROGERS FOR TRYING TO RIP ME OFF, now I can cancel my account and save tons of money!! : )

  5. rogersripoff says:

    thanks for the tip!! see ya Rogers,!!
    finally i can be free of their hold on me

  6. Chuck says:

    Hahahahahaha….I got rid of Rogers! They’ve always been pond-scum, just like Bell. I have a new provider and I see no difference in speed.

    I DO however see a difference in service. My questions are answered in a friendly and timely manner. I’m not billed ahead a month now either. I pay for the time I’ve used.

    In the past if we were a few days off in paying the bill, we’d receive 6-8 phone call reminders per day from an automated system = Pond-sum!

    Right back to the days of negative billing, ALWAYS expect Rogers to come up with a new scam. Always expect it!

    Raising over useage fees is just the latest. This is what happens when you had an overlord like Ted Rogers at the helm. The scummy attitude filters down to the rest of the gang.

    So glad we’re free again!

    BTW I notice this page now had a 2 google rating – keep up the good work!

  7. Denis Gregoire says:

    I worked for Rogers as a customer retention Rep.
    there are more and more of the 90% there are going over the overage thats why they are increasing the price.
    Reason is more and more people are looking at internet TV Bell has in in Montreal now it takes more bandwidth and People are also Buying there movies like think about it more of us are really looking at Ipad and if we all started to download and own are tv and Movies why pay for Cable. its only a matter of time before we all get charged for it and they get the money they loose on you not getting cable. Don’t you all see Ipad will be here end of May why do you think they pick now to do it wake up Rogers the robbers know how to rip us off , and Last more and more of the VOIP services are getting better and better just like the rogers home phone that used voip on a Modem for itself so your internet usage does not show for the phone.

  8. gmc says:

    I cancelled all cable 3 years ago. Tired of the monopoly and they have there system set up. Example with all the cr-p they have on TV today there were only maybe several I would watch. Though these several would never be in the same package. So it could cost me $100.00 plus a month. They have to be kidding to watch TV. Recall many years back when the UHF – VHF turners were compulsary on all TV’s. This was back when Rogers near first strarted or close. We were to get all these free channels down the road. Well look what happen. The monopoly these cable companies have well I just got tired. With an indoor antenna I need all I want. Yes there owners have becom billionaires many times over that’s what over-chargeng does. Many people are changing and we are told they don’t need customers like us. Well I have the last laugh. Never had Roders and don’t care to have them or any cable companies in the future. Maybe if many people did the same they would come-back and crawling to us. I am a stone throw from my video store. I get 2 top movies for $8.00 and change. On certain days 2 new movies for $5.00 can’t beat that and many more acentives. The people built them now they turn there back. Well I am the one laughing last.

  9. cabrals says:

    what i the f*** u gonna pay 25 dollars for 2 gigs? u got to be kidding me rogers just lost it bastards they will lose everyone i hope that happens

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