Why $25 Hardware Upgrade Fee?

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I'm Qualified Level 3
I'm Qualified Level 3

Why $25 Hardware Upgrade Fee?

Simply put, why if I buy a phone from Fido at full retail cost do I pay a $25 hardware upgrade administration fee? What is the fee for? If it can't waived I will just buy the iPhone outright from the Apple store. Also, I have FidoDollars accumulated where the real value is really ## accumulated FidoDollars less the $25 fee. I would like an explanation to why this fee is being charged when upgrading a phone and how is my experience any different if I go to the Apple store where there is no fee and Apple personel told me they would even setup the phone for me??

 

 

 

Accepted Solution

Re: Why $25 Hardware Upgrade Fee?


@Proac wrote:

...It's always irked me that Joe Blow off the street doesn't incur this fee but someone...  with Fido gets... <upgrade> $25 fee. ...


Hello Proac,

 

  As noted above, the fee has been reduced to $15. However, your statement is not quite accurate. While it's true Joe Blow does not incur an upgrade fee when they sign up, they do incur an activation fee (see here). Both the activation and upgrade administration fees cost the same so current customers are not paying more than new customers.

 

**edit** Just came across this thread here. It looks like the upgrade fee might be waived if the upgrade is done online at Fido.ca**

 

  Hope this helps Smiley

 

Cheers

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Message 1 of 24
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I'm Helpful Level 2
I'm Helpful Level 2

Re: Why $25 Hardware Upgrade Fee?

A $25 admin fee on a $800 iphone is not that bad.  Try buying a locked phone for $150 and paying a $25 admin fee.  Sounds fair doesn't it?  17.5% fee plus tax for a locked phone?  iphone only has a 3% fee plus tax on a locked phone.  Why anyone would buy a phone through Fido is a mystery.  They must all be rich and like paying fees for sticking with a brand.  I bought unlocked Samsung Gio and like it.  Will buy another phone eventually from anyone but Fido.

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Message 2 of 24
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I'm Qualified Level 3
I'm Qualified Level 3

Re: Why $25 Hardware Upgrade Fee?

What is the fee for? What service am I receiving by paying $25?

 

I don't get it...when the Apple store charges no additonal fees and is willing to setup the phone for me? There is NO advantage buying the phone outright from Fido, except the ability to use FidoDollars towards the purchase. Where your Dollars are immediately reduced by the $25 fee.

 

Is the admin fee some sort of eco-related fee to compensate the cost of electronics in the landfill similar to the fees charged on HD TV sets? I just want to know what the fee is being collected for?

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Message 3 of 24
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I'm Helpful Level 2
I'm Helpful Level 2

Re: Why $25 Hardware Upgrade Fee?

When I bought a phone in 2010 I asked the Fido rep what the fee was about and was told to the effect of " it is for shipping and handling to pay for the cost of getting the phone to the Fido store".  I lold at that answer and still bought my last phone from them cause I needed a phone as I had lost mine. 

 

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Message 4 of 24
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I'm Qualified Level 3
I'm Qualified Level 3

Re: Why $25 Hardware Upgrade Fee?

Repost my opinion of the subject matter from another forum:

 

I have always been dumbfounded by the telecom's decision to introduce a 'hardware upgrade fee'. espeically with Fido (reasons I will provide later). This thread also broading my scope of the subject matter from member of both sides to justify why or why not the HUF is valid. I will now try to inject my opinion as to why the HUF is bad and should be banned.

The current HUF is not a fair fee - It does not target every Fido users, only those loyal customers who have at least 1 contract with Fido. New customer do not pay this fee. Fido supporters cannot claim this is 'fair' because Fido incurred the same shipping/handing/subsidize charges for new customer as well. Yet the $25 Hardware upgrade fee does not apply. Fido supporters try to relate 'Destination fees' 'Enviromental fee' to be the same as 'HUP' are wrong as well. 'Destination fees' applies to everyone who purchases a car, not selective between new/existing customers. 'Enviromental fee' is a tax set the government, also no exceptions and applies to all.

The HUF is a misleading fee - the reason for HUF was never clear. Fido does not explain clearly WHY the fee is in place, I can understanding destination fee and enviromental fee. What about the HUF? Is it for shipping/storing the new phone? Is it to recover the high subsidy Fido discounts on the phone? Fido needs to explain why a HUF is needed, and the reason should be clear enough for us not to be confused with why new users are not charged. A secound reason the HUF is misleading especially for Fido is their introduction to Fidodollars. I know in the past, Fidodollars can be used for a variety of things. But today's Fidodollar reference is that it is used mainly as a rewards program towards a new phone.  A new customer when comparing wireless carriers will take into account of Fido's Fidodollar program becuase it is unique with 4% of cellphone cost converted into Fidodollars to be used for buying new phones in the future. Imagine that customer's surprise after 2 years saved $25 Fidodollars, out of contract, wants a new phone only to find out there is a $25 fee for upgrading their phone. What's the point of Fidodollars then? Customer will definetly felt ripped off.

The HUP aims to drive customer out of Fido - People upgrade phone for variety of reasons, those upgrading due to lost/broken phones will find it disadvantages to stay with Fido if they need to pay additional $25 to keep using Fido while they can port to another carrier and will not be subject to HUF.

In Summary, I understand that Fido is a business to make money and can charge whatever they want against us. What I want Fido however is that they are fair and not misleading when doing so.  I can live with Fido charging unlock fees or even activication fee, or even system access fees becuase they explain clearly what the fees are for and I can decide to either use the service or move to a competitors.  What I hate about the HUF is a new customer does not know about it, they are told the benefits of Fidodollars but comes time to upgrade phone they found out a good portion of Fidodollars are cancelled out by the HUF.

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Message 5 of 24
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I'm a Contributor Level 2 spirited
I'm a Contributor Level 2

Re: Why $25 Hardware Upgrade Fee?

Sounds like good fooder for a class action lawsuit.

As a 12 yr customer it pisses me off as well.

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Fido Employee sheedy17
Fido Employee

Re: Why $25 Hardware Upgrade Fee?

The hardware upgrade is charged by every company, it isnt just Fido, other providers charge up to $35 for the HUP.  So a class action lawsuit against  Fido for this fee is alittle unneccessary

 

New customer do not pay for the hardware upgrade because there not upgrading there services, they are signing up for Fido, so everyone gets 1 free contract and then it is charged, it isnt targetted just for loyal customers.

 

The fee covers  restocking the inventory of phones, shipping and handling and processing the order etc ,  I can understand why people may not like it, but if you are told about the fee,  you can always dispute it (it is a mandatory fee) but at times Fido does have promotions and such where they could give you a credit to offset the charge.

 

The HUP will always be debatable, but it is a standard fee in the cell phone industry, and I dont see it going anywheres

 

 

 



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Message 7 of 24
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I'm Qualified Level 3
I'm Qualified Level 3

Re: Why $25 Hardware Upgrade Fee?

Every carrier in Canada charging the fee doesn't make it right. I know a lot of countries do not charge customers for upgrading their phones.

Its targeted at loyal customers because the HUP is not charged to new customers. If you claim the HUP is for restocking/inventroy/S&H/processing, a new customers uses these services as well when ordering through telephone or local store.

I don't like the idea of Fido's idea of crediting the charge as well. It feels like Fido is doing you a favor by increasing their prices by $25, then offer you a discount of $25 and customers should be thankful of it. I really think Canadians deserves better.

The HUP model is a joke, let's apply it to another industry for some contrast and comparsion:

You walked into supermarket X, they are selling a new brand of beef Y. Labeled $10/KG, you bought 1KG of beef Y and at the checkout, you were told you are a VIP and got a store card that credits you $1 everytime you shop at supermarket X. You go home and found you and your family loves beef Y, now you think you have a winner here with supermarket X's discount and beef Y. The next trip to X, you bought 2KG beef Y, still labeled $10/KG (so $20 total). At the checkout you presented your VIP store card, and assume your total to be $19 ($20-$1credit). But the counter rings up $23, you scratch your head and demand an explaination. Checkout tells you that you are a returning customer (you have the store VIP card), but beef Y has a $2/KG surcharge for restocking/inventory/shipping/handling/processing fee, furthermore checkout tells you that all the supermarkets does this, new customers are not charged to entice them to try beef Y, and once you try beef Y they know you would come back for more, hence the extra fee to process these orders.

I know I complain a lot of this forum, but I'm standing my ground to oppose a fee that I do not feel right about. I know I have to option to choose not to buy. Fido can be more creative and charge me in other ways. If you can explain it well by all means. Most Canadians fell for the $6.95 Government access fee beucase it was believable and just (until someone founds out its boogus).
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Message 8 of 24
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Community Specialist
Community Specialist

Re: Why $25 Hardware Upgrade Fee?

For your information, here are a few details regarding the $25 hardware upgrade administrative fee:

- When offering a phone with an agreement discount, we reduce the price of the device versus from the manufacturer’s cost through the agreement discount. Fido costs and value of the device are represented by the price of phones without agreement (up to $ 600 for iPhones).

- There are also significant costs in terms of processing, administration, inventory management fulfillment and stocking, every time a phone is ordered.

- This is a onetime charge per order that will not impact your subsequent invoices. This fee is also communicated on Fido.ca and in our advertisement, therefore is not considered a mistakenly charged amount.

Rest assured that we care about our customers. At the same time, we introduced this in order to continue to be able to cover the costs related to ordering equipment. Therefore, in order to provide a fair balance between hardware costs and customers' advantages, Fido introduced the $25 hardware upgrade administrative fee for all upgrades (in store, fido.ca, Call Centre).

 

I truly hope this answer better explains the reasons behind the $25 hardware upgrade administrative fee.



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Message 9 of 24
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I'm Qualified Level 3
I'm Qualified Level 3

Re: Why $25 Hardware Upgrade Fee?

Thanks everyone for your valuable input. One final question, if I go to the Fido store, buy an iPhone 5S outright, would Fido throw in a Nano SIM card at no charge or is Fido expecting me to purchase one for $10?

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Message 10 of 24
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Former Moderator FidoAmandaH
Former Moderator

Re: Why $25 Hardware Upgrade Fee?

Dear nick67,

 

if you current phone does not use a nano SIM card, a new one will be provided for you free of charge with a new purchase of the iPhone5s.

 

 

 

Hope this helps!

 

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And don't forget to click Accept as Solution in the options drop-down menu once you've received the answer you were looking for; it'll help our community grow stronger.


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I'm a Contributor Level 1 choy
I'm a Contributor Level 1

Re: Why $25 Hardware Upgrade Fee?

No offense, but your listed price for phones are above the market price for the phones. For example, your Nexus 4 is still priced way higher than the last price Google gave for it.

Also, why penalize your loyal customers? I didn't pay a penny to get a "free" phone when signing up the first time. Now instead of paying $25 to get another "free" or discounted phone, I might as well just go to another company and get their offer sans the $25 fee. Maybe in 2-3 years I'll be back with Fido, maybe not.

I attended business school, I know that the cost to retain a current customer is way lower than attracting a new one. But apparently this is not the case here because a current customer is asked to pay more.
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I'm Experienced Level 3
I'm Experienced Level 3

Re: Why $25 Hardware Upgrade Fee?

The last regular price from Google was about $360 + tax + shipping for a Nexus 4. That's very close to the $425 that Fido charged. You cannot compare a one-day Google fire sale of $200 they happened to put on and sold out immediately. Fido already paid for the phones, what Google decides to do to get rid of inventory is not Fido's concern. Not that it is even relevant since you cannot get a Nexus 4 from Google for $200 or any price anyways.

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I'm Helpful Level 2
I'm Helpful Level 2

Re: Why $25 Hardware Upgrade Fee?

You can buy a Nexus 5 16gb from Google for $349, or buy it from Fido for $500 + $25 HUF.  Anyone buying a phone through Fido is lighting their money on fire.

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I'm Experienced Level 3
I'm Experienced Level 3

Re: Why $25 Hardware Upgrade Fee?

Not really, it's $407 for the 16GB and $467 for the 32GB from Google. Besides, it could be a thousand dollars and still a better deal for customers who take one on the Tab (as the vast majority do) because you still pay your monthly bill and if you aren't planning on leaving in 24 months you only pay $100 (if that's the contract price). Even if you buy it from Google and you're on a new plan with 10% BYOP...it will still cost more than through Fido.

 

Now, that said, anyone who walks into a Fido store to buy the device outright would be lighting their money on fire...however why would one do that in the first place? Always best to go through the manufacturer or a phone retailer, not a service provider.

 

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