Once phone is payed off & you keep paying on it for another year or 2 as the price of payment plan does not change to reflect that, why would they not put those extra payments into a down payment towards the next phone to keep customers. instead now I'll be looking at other providers for a better option instead of being robbed that extra $30 a month over the last year or 2 which should go to next phone
The subsidized plan that you have means you would have been able to get a phone at a lower upfront cost depending on the plan type.
It does not mean the type of plan is a set amount goes towards the phone every month, the subsidized phone plan meant you could have got up to a certain amount off from the device.
For example, you and I could have the same plan but we got different phones the amount that is being reduced every month would be different.
When our contract is up because we have a subsidized plan we have the ability to get another device at a lower upfront cost. If we do not wish to take another device we had two options keep the plan and get another device at a later date or switch to a BYOP plan in order to reduce the monthly cost.
This is why Fido changed to Payment Program because of the growing cost of phones and to make the payments more transparent.
You can get more info about the Fido Payment Program here.
When I sign up the salesman told me how much of my plan was going towards my phone payments and how much was going toward services so in my mind it only stands to reason that the payments that were going towards the phone should have been dropped off the plan should I carry the term longer should have been put towards the down payment on the next phone should I upgrade eventually
Welcome to the community!
Many mobile providers used a subsidised model for their contract devices. This model is different from a tab model or the more recently available leasing model.
With the subsidised model, the subsidy is incorporated into the plan (ie small, large, etc). On the other hand, with the tab model, the monthly plans and tabs are separate. Since the subsidy is incorporated into the plan, your plan does not automatically switch to a BYOP plan at the end of a contract. It remains your previous plan, should you wish to subsidise another device. While you can calculate how much of a plan's cost might go towards a new phone, the subsidy is not separate from the plan and therefore cannot be put aside as a down payment as you suggest.
Fido's new plans appear to be a financed model. The entire cost of the device is spread over the duration of contract. In some cases, a down payment might be required, where the remaining cost of the device is spread over the duration of contract. The costs to finance the phones are separate from service costs. Once the financing has completed, you'll only have the service costs.
Hope this helps 😀