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Rogers’ “Unconscionable” Service Contracts & Bell’s Touch-Tone Fee Ripoff

Phillip Dampier May 29, 2012 Bell (Canada), Canada, Consumer News, Rogers, Video Comments Off on Rogers’ “Unconscionable” Service Contracts & Bell’s Touch-Tone Fee Ripoff

Rogers' "unconscionable" service contract allows the company to do just about anything.

Did you know that signing a contract with Rogers Communications for your broadband, phone, and cable television service will not protect you from the company’s annual rate increases?

It represents a classic example of an “unconscionable term” in a contract, according to Anthony Daimsis, a contract law professor at the University of Ottawa. Not because Rogers has inserted language that allows the company to raise rates on contract customers at will, but rather because consumers cannot escape the contract without paying a stiff early termination fee, usually approaching $200.

Rogers says its service contracts do not guarantee stable rates, instead providing a discount for bundling its services together. Most Canadians asked by CBC’s Marketwatch thought otherwise, believing it should lock in current rates for the term of the agreement.

The consumer show also chases Bell for charging Canadians $2.80 a month for touch-tone service — a fee that disappeared off most other phone company bills 20 years ago. Bell claims the touch-tone fee was introduced because the company met opposition from rotary phone customers when it tried to bundle the fee into its general price for phone service.

These days, buying a rotary dial phone requires a visit to an antique shop, but should you acquire one just to escape paying the phone company an extra $33 a year, it won’t work. Bell says the fee is now mandatory for all customers, rotary or otherwise — no one can “opt out.”

Bell’s touch tone bill padding rakes in an extra $100 million a year in revenue, all for a service upgrade paid for decades ago.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/CBC Busted 04-2012.flv[/flv]

CBC Marketplace presents “Busted,” a special marathon edition exposing consumer ripoffs and deceptive advertising. In this clip, the show chases down Bell’s bill padding touch tone fee and Rogers’ notorious service contracts that lock customers in place -and- subject them to annual rate increases.  (13 minutes)

Rogers’ “Next is Now” Foreshadows How Company Will Milk Canadians for Connectivity

Phillip Dampier May 17, 2012 Canada, Competition, Consumer News, Data Caps, Editorial & Site News, Public Policy & Gov't, Wireless Broadband Comments Off on Rogers’ “Next is Now” Foreshadows How Company Will Milk Canadians for Connectivity

Rogers Communications has following up its “Next is Now” corporate video from 2010 with a sequel: “Next is Now… More Than Ever,” which highlights how Canadians are increasingly relying on mobile communications for news, entertainment, social life, work, and education.

While Rogers wanted the video to promote how the company would be a part of that telecommunications transformation, many of their customers can’t help but reflect on the fact the revolution is well-tempered with Internet Overcharging schemes like usage caps.

Stop the Cap! reader Alex is among them, noting the video says nothing about the company’s restrictive usage limits on home broadband and the even harsher caps on its mobile services.

Rogers, like most telecommunications companies, repeatedly tells investors there is real money to be made attaching meters to monetize megabytes.  Charging for broadband usage is a growth industry, and with the company’s own projections for data growth, they are well-positioned to be in the money for years.

With broadband dependency being as pervasive, if not more so, in Canada as in the United States, the barely regulated services on offer in both countries often come at a steep (and increasing) price — all for something even Rogers hints is becoming a utility — one as important as electricity, gas, and clean water.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Rogers Next is Now More than Ever 5-12.flv[/flv]

Rogers Communications’ “Next is Now… More Than Ever” has broader implications than the company realizes. (3 minutes)

Rogers’ 49 Foot Cell Tower in Quebec Backyard Still Standing, But Non-Operational

Phillip Dampier May 15, 2012 Canada, Consumer News, Public Policy & Gov't, Rogers, Wireless Broadband Comments Off on Rogers’ 49 Foot Cell Tower in Quebec Backyard Still Standing, But Non-Operational

This monopole cell tower antenna just showed up one day in the backyard of this Kirkland, PQ resident.

Rogers Communications installed a 49-foot monopole cellular antenna in the backyard of a Kirkland, Que. resident earlier this year, but the only signals being transmitted are discussions over its fate at town hall.

Residents were furious when a neighbor leased out a portion of a residential backyard to Rogers, who claims the small cube antenna mounted on the pole will improve cell reception in the immediate area. Ever since Stop the Cap! first covered this story earlier this year, local officials have been flummoxed about what they can do about the antenna, which is currently non-operational.

“For now (there is) no resolution, but talks are progressing,” Kirkland’s director general Joe Sanalitro told The West Island Gazette. “We are demanding it come down.”

Rogers and Kirkland officials have been meeting about the antenna, which has generated considerable interest and complaints over whether the company used a zoning loophole to sneak the antenna into the neighborhood.

If allowed to stand, residents fear Rogers and other cell companies could offer cash incentives to other homeowners to erect similar towers, increasing visual pollution.

Industry Canada rules state towers less than 15 meters are excluded from municipal notification rules and do not require permits to install.  Rogers was evidently aware of this rule — its Kirkland antenna tops out at 14.5 meters, just shy of the height limit.

Updated: Rogers Closes Last of Video Rental Stores; Pushes Customers to PPV Instead

Phillip Dampier May 10, 2012 Canada, Consumer News, Rogers 1 Comment

Rogers Video closed for business, watch pay-per-view instead.

Rogers Communications closed the last of its remaining video stores nationwide this week, eliminating around 300 jobs.

The last of 93 stores still renting videos have been in “liquidation mode” since April, clearing rental DVDs and other videos, selling them to customers on an as-is basis.  This week, the last of that inventory was sold (or thrown out), and Canada has lost its last national video rental chain.

In 2011, Blockbuster Canada closed hundreds of its own stores, leaving some communities with no video rental retail outlets at all.

That suits Canada’s cable and phone companies just fine, as they bolster their own pay-per-view offerings, which typically come at higher rental prices.

The video rental business has done poorly in the United States as well, at least until Redbox arrived with its omnipresent video rental kiosks found outside of coffee shops, drugstores, grocers, and other retailers. Redbox charges discount rental rates from its automated vending machines, keeping the price much lower than pay-per-view offerings from cable and phone companies. That has kept earnings for traditional pay-per-view depressed in the United States.  Canadians are only now being introduced to video rental kiosks, starting in Ontario.

Rogers says it intends to keep its retail outlets open, but refocus them on selling the company’s wireless and cable television products.

[Updated: 5:24pm EDT — A Rogers spokesperson has clarified its position on video rental stores, saying in part, “While we’re no longer offering DVD and game rentals at our retail locations we’re not closing any stores. We’re not laying off any employees at these stores. We’re repurposing all locations to better serve our customers. This will include offering wireless sales and service in all locations as well as cable sales and service in many of those locations.”

The “300 jobs” statistic noted above was part of an earlier, unrelated layoff announcement. — pd]

Cell Tower Sneakiness: Rogers Quietly Erects 50-Foot-High Cell Towers in Yards; Too Short to Regulate

This nearly 15 meter monopole cell tower antenna just showed up one day in the backyard of this Kirkland, PQ resident, who is presumably being compensated up to $200 a month as Rogers' newest cell tower landlord.

Rogers Communications has found a solution to difficult zoning laws and cell tower controversy — find a homeowner willing to accept around $200 a month to host a (relatively) short cell tower antenna in their backyard, skirting the usual dragged-out cell tower siting consultations most local communities have enacted to control visual pollution.

A wealthy neighborhood in the community of Kirkland, a city of 20,000 near Montreal, discovered Rogers’ ingenuity for themselves when a just-under-50-foot monopole antenna suddenly appeared in the backyard of a home on Acres Street.

The neighbors are outraged. But Rogers says everything they did erecting the tower with no prior notice was done by the book.

That book, in the form of Industry Canada regulations, says Rogers doesn’t need to endure lengthy zoning hearings or a town-wide consultation process.  Rogers agrees, stating they can erect antennas of less than 15 meters at their pleasure — no consultation required.

Rogers spokesperson Stephanie Jerrold said Industry Canada regulations are clear: “The protocol says that if it’s a tower that measures under 15 meters, no public consultation is needed,” she said.

That may be true, but the loophole did nothing to appease dozens of nearby residents living in homes valued at $400,000 from raising a ruckus with local officials.  A petition has been submitted to city hall demanding Rogers remove the antenna.  Residents expressed concerns about their health and property values with a cell tower in their midst.

Rogers foreshadowed their intent last fall when they mailed letters to homeowners looking for someone to host the new antenna, offering around $200 a month to any takers. Evidently there was one — the resident at 75 Acres St.

City officials are pondering what to do about the new tower. They did not approve a work permit for its placement, which may provide leverage against Rogers, but no one knows for sure.

Thus far, Industry Canada wants to remain more than 15 meters away from the debate.  A spokesman for the agency, Antoine Quellon, told the West Island Gazette:

“The company must consult with the local community as required and address relevant concerns. It must also satisfy Industry Canada’s general and technical requirements, including Health Canada’s Safety Code 6, aeronautical safety, interference protection and environmental requirements. Under rare circumstances where an agreeable solution for a site is not possible, Industry Canada may need to make a determination based on the facts presented.”

[flv width=”400″ height=”380″]http://www.phillipdampier.com/video/CBC Montreal Backyard cell tower in Kirkland worries neighbours 4-11-12.flv[/flv]

CBC in Montreal covered the Kirkland controversy and talked with the neighbors about the new 50 foot pole owned by Rogers Communications.  (2 minutes)

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