DSRF, ADSRF, Economic Inducement and Service Deactivation fee? come again?
Rogers new Cancellation policy went live, and from what I can gather it's a hot mess.
I was also reading this on Mobile Syrup.
let's have a look:
*Device Savings Recovery Fee (DSRF)
* Economic Inducement
*Additional Device Savings Recovery Fee (ADSRF) this one is the crown jewel
*Service Deactivation Fee of $12.50 excluding Quebec / Manitoba
So basically, we all thought that you'd have to pay the subsidy back. Seemed Fair right? Wait there's more!
There's the ADSRF fee now which seems like on top of the subsidy of the phone, there's an additional fee to be paid back for Data. Even though the phone required a data package in the first place to get the subsidy you'll have to pay an additional cancellation fee on top.
What?
Device Savings Recovery Fee (applicable to term commitment customers only for any new term entered into on or after January 22, 2012)
A Device Savings Recovery Fee (DSRF) applies if you have been granted an Economic Inducement (as defined below) upon entering your new term, and if, for any reason, your wireless service or your new term is terminated prior to the end of the term of your Service Agreement (Service Agreement Term). The DSRF is the amount of the economic inducement (which may take the form of a discount, rebate or other benefit granted on the price of your Equipment), as stated in your Service Agreement (Economic Inducement), less the amount obtained by multiplying such Economic Inducement by a fraction representing the number of months elapsed in your Service Agreement Term as compared to the total number of months of your Service Agreement Term (plus applicable taxes). In other words, DSRF = Economic Inducement - [Economic Inducement x (# months elapsed in your Service Agreement Term ÷ Total # months in your Service Agreement Term)] + applicable taxes. An Additional Device Savings Recovery Fee (ADSRF) also applies if, for any reason, your wireless data service, or your data plan's commitment term (Data Term), is terminated prior to the end of your Data Term. The ADSRF is the additional Economic Inducement you received for subscribing to your wireless data service, less the amount obtained by multiplying such Economic Inducement by a fraction representing the number of months elapsed in your Data Term as compared to the total number of months of your Data Term (plus applicable taxes), and applies in addition to the DSRF for termination of your Service Agreement. If you subscribe to a plan combining both voice and data services, both the DSRF and the ADSRF apply, up to the total Economic Inducement.
Service Deactivation Fee (applicable to term commitment customers only for any new term entered into on or after January 22, 2012)
Not applicable to Residents of Québec or Manitoba: A Service Deactivation Fee of $12.50 per line applies if, for any reason, your wireless service is deactivated prior to the end of your Service Agreement Term. This fee is in addition to any applicable DSRF or DSRF and ADSRF.
Applicable only to Residents of Québec or Manitoba: If your wireless service is deactivated prior to the end of your Service Agreement Term and there is no Economic Inducement stated in your Service Agreement, then you will be charged a Service Deactivation Fee. The Service Deactivation Fee is an amount permitted under provincial legislation, being the lesser of $50 or 10% of the monthly service fees for the services that you have subscribed to on a Service Agreement Term and Data Term, as applicable, but not provided as of the termination date (plus applicable taxes).
The way I interpret it is that the DSRF + ADSRF, combined, would equal the phone subsidy received. The way I read it, there is no overlap of the fees as they pertain to the total phone subsidy.
The way I interpret it is that the DSRF + ADSRF, combined, would equal the phone subsidy received. The way I read it, there is no overlap of the fees as they pertain to the total phone subsidy.
That's what I thought too. Haven't read anything that disputes that yet.
"If you subscribe to a plan combining both voice and data services, both the DSRF and the ADSRF apply, up to the total Economic Inducement."
Why was the other thread locked?
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It's actually not that confusing it just seems that way based on the Mobilesyrup post. Here it is simplified:
When you sign a contract for a new device it will list right on the contract how much Total you saved and how much of that was for the Data plan.
If you cancel your data plan ONLY then you pay the prorated amount of your Data plan savings.
If you cancel your line completely you pay the prorated amount of the Total savings, plus the deactivation fee of $12.50
See its actually very simple.
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I think this is better for those that get lower end phones (i.e. Doro) or mobile internet devices. Instead of $400 they only have to pay back the outright savings / 36 x number of months remaining + $12.50 SDF. The post on MobileSyrup and the replies to it are making it more complicated. The biggest change is that if you cancel data. Most Smartphones are only $50 off the outright prices without data which is why people used to cancel and pay the $100 DECF and still be ahead. However now you are looking at more. I.e. iPhone 16gb 4S 3 year price $159 and outright price $649. The DSRF is $50 and the ADSRF is $440. If you cancel data it's $440 / 36 x the number of months remaining now. HOWEVER at the same time before if you cancel within 16 months it was $500. $400 ECF and $100 DECF which dropped by $20 and $5 after. Now after 16 months it would be $272 + $12.50 ($285).
I still think the most important question here is... Can I get out of paying ECF by simply renewing my contract and not taking a phone.
In the terms of service, there is no provision for renewals. It just says "any new term entered into on or after January 22, 2012" Is a renewal considered a new term? I think legally it is.
If so, then I would save myself the ECF if I renewed. If this is the case, Rogers will probably stop renewing contracts without a HUP.
I still think the most important question here is... Can I get out of paying ECF by simply renewing my contract and not taking a phone.
In the terms of service, there is no provision for renewals. It just says "any new term entered into on or after January 22, 2012" Is a renewal considered a new term? I think legally it is.
If so, then I would save myself the ECF if I renewed. If this is the case, Rogers will probably stop renewing contracts without a HUP.
From my understanding, you can only renew now without taking a hardware discount after 24 months in a 36 month term and 6 months in a 12/24 month term. However I don't believe that this is system enforced yet...
I still think the most important question here is... Can I get out of paying ECF by simply renewing my contract and not taking a phone.
In the terms of service, there is no provision for renewals. It just says "any new term entered into on or after January 22, 2012" Is a renewal considered a new term? I think legally it is.
If so, then I would save myself the ECF if I renewed. If this is the case, Rogers will probably stop renewing contracts without a HUP.
Yup, that is the $64,000 question for me, and I suspect, for many folks. Will there be rules put into place that block someone from renewing without taking a HUP. With Fido, they always have one or 2 real cheapie phones that you can HUP to, and end up with only a small economic inducement value. But with Rogers, they over-price even their most basic phones so you'd be looking at an economic inducement of at least $200 even if you Hup'd to the cheapest phone.
Yup, that is the $64,000 question for me, and I suspect, for many folks. Will there be rules put into place that block someone from renewing without taking a HUP. With Fido, they always have one or 2 real cheapie phones that you can HUP to, and end up with only a small economic inducement value. But with Rogers, they over-price even their most basic phones so you'd be looking at an economic inducement of at least $200 even if you Hup'd to the cheapest phone.
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