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JMJimmy

join:2008-07-23
Reviews:
·TekSavvy DSL

[DSL] Modem Rental Fee

I hate paying to rent a modem that I ought to be able to buy outright so I started investigating what can be done. CRTC is useless and by the time any regulatory change happens I'll have paid for the modem several times over. So, I called the competition bureau to see what they could do. I had a very interesting conversation - while they can't do anything under the market dominance aspect, they did suggest that something maybe amiss as to fair business practices.

Bell charges the fee as a "modem rental fee" but if you buy a compatible modem you are still charged the fee. This is considered false advertising because in actuality it's a user access fee. I'm waiting to hear back from the fair business practices dept of the competition bureau for more details, however, it looks good.

If Bhell is forced to stop calling it a modem rental fee and calls it a user access fee (or some such) then it falls under existing CRTC regulations.


ChuckcZar

@teksavvy.com
It's something like renting a house to own but paying twenty million dollars for a two hundred thousand dollar house. That's where the problem lies.


Guspaz
Guspaz
Premium,MVM
join:2001-11-05
Montreal, QC
kudos:23
reply to JMJimmy
Let's not exaggerate. It's $96 per year for a VDSL2 modem that sells for ~$130 at wholesale prices (so you'd probably pay closer to $200). As a temporary measure, paying the modem rental fee is not a big deal.
--
Developer: Tomato/MLPPP, Linux/MLPPP, etc »fixppp.org


TSI Gabe
Router of Packets
Premium,VIP
join:2007-01-03
Gatineau, QC
kudos:7

1 recommendation

Buying modems is in fact available to us as of a few days ago. We are still working out the details so it's coming soon.

JMJimmy

join:2008-07-23
Reviews:
·TekSavvy DSL
reply to Guspaz
said by Guspaz:

Let's not exaggerate. It's $96 per year for a VDSL2 modem that sells for ~$130 at wholesale prices (so you'd probably pay closer to $200). As a temporary measure, paying the modem rental fee is not a big deal.

And if you've got a source to get one free? (uncle). Even then, at the end of the year you're still paying the $8/m and have nothing to show for it.

It's also about denying revenue to Bhell.


Phibian

join:2009-06-01
Ottawa, ON
reply to TSI Gabe
This is great news!


Guspaz
Guspaz
Premium,MVM
join:2001-11-05
Montreal, QC
kudos:23
reply to JMJimmy
Since Bell never sold any of them, and manufacturers don't allow them to be sold at retail, where did your uncle get one?
--
Developer: Tomato/MLPPP, Linux/MLPPP, etc »fixppp.org


kragop

join:2006-02-15
Scarborough, ON
Reviews:
·TekSavvy DSL
reply to TSI Gabe
said by TSI Gabe:

Buying modems is in fact available to us as of a few days ago. We are still working out the details so it's coming soon.

So you mean to say that we wont be forced to pay the $8/month in the near future.


Phibian

join:2009-06-01
Ottawa, ON
Reviews:
·TekSavvy DSL
reply to Guspaz
I bought two (Zyxel) from two different sources. Cisco also sells some and TSI sells one (Zyxel different model). Admittedly most of these only work on 7330 cards but there are certainly options out there. Whether or not Bell "allows" the us of such modems is a whole other question...

JMJimmy

join:2008-07-23
Reviews:
·TekSavvy DSL
reply to Guspaz
said by Guspaz:

Since Bell never sold any of them, and manufacturers don't allow them to be sold at retail, where did your uncle get one?

They never sent him a box to return his when he cancelled his service.

You can also find things like:

»ontario.kijiji.ca/c-buy-and-sell···44123282

Also, if they don't allow people to buy their own and want to keep charging the fee it would fall under CRTC rules/regs and be subject to rulings which might reduce the fee or lump it in with existing fees.

I honestly wouldn't be surprised if the modem rental fee is a double dip anyway.

afterburn999

join:2010-09-12
Scarborough, ON

1 edit
reply to TSI Gabe
said by TSI Gabe:

Buying modems is in fact available to us as of a few days ago. We are still working out the details so it's coming soon.

Wow that is fantastic news! I am getting ready to switch over to 25/10, this will be great for me as I always dreaded that rental fee.

I hope there will be some choices.


Mike2009

join:2009-01-13
Ottawa, ON
kudos:3
Reviews:
·TekSavvy DSL
reply to TSI Gabe
said by TSI Gabe:

Buying modems is in fact available to us as of a few days ago. We are still working out the details so it's coming soon.

Finally!


creed3020
Premium
join:2006-04-26
Kitchener, ON
kudos:2
Reviews:
·TekSavvy Cable
reply to TSI Gabe
said by TSI Gabe:

Buying modems is in fact available to us as of a few days ago. We are still working out the details so it's coming soon.

Now there is some great news! It is looking VDSL is becoming closer to a reality for me. The only things that need to change as dryloops and modem rentals, until then cable is king!

simsin0

join:2008-01-06
reply to JMJimmy
indeed great news.

Now the difference in price for the 16mbit and the 25mbit is only 7$ at the 300gb level.

(without factoring in the hw costs)

InvalidError

join:2008-02-03
kudos:5
reply to creed3020
said by creed3020:

The only things that need to change as dryloops and modem rentals, until then cable is king!

I'll be moving next summer and will most likely ditch POTS in the process. As much as I would like to keep using my ST516, cable gets me 10/1.5 instead of 5/0.6 (usable) for $5/month less.

Dry-loop fees do make DSL look horrible at the lower end of the service ladder.

Bugblndr

join:2010-03-02
Burlington, ON
reply to JMJimmy
I'm really liking the idea of dropping the rental. I was about to cancel my 25/3.7 service due to the high dryloop and rental fees. Now I may have to reconsider and keep both it and my new Cable.

JMJimmy

join:2008-07-23
Reviews:
·TekSavvy DSL
reply to JMJimmy
lol - well I got a response from the competition bureau's fair dealings dept...

...we cannot provide complaint status reports or comment further on this matter in order to protect the integrity of the investigative process.

Looks like it's already underway.

Cloneman

join:2002-08-29
Montreal
kudos:4
Reviews:
·TekSavvy DSL
·Bell Fibe
reply to JMJimmy
I've never paid more than 50$ for a DSL modem, due to people not returning them to their ISP , or for whatever other reason.(weather its bell or some other company in the world). People don't think to buy their own ISP hardware, so the market makes it available for cheap.

8$ modem rental, plus tax IS/WAS a big deal. When you buy a modem from someone else for 50$ and sell it for 40$ at the end of its life, your cost is 10$ versus 200+$ for 2 years of service with a rental model.


Mike2009

join:2009-01-13
Ottawa, ON
kudos:3
Back in the day they were more expensive and I bought a speedtouch modem for $85 through a group buy. Since then I've paid $20-$40 a modem. Prices have gone down big time.

corkyy

join:2008-06-01
Laval, QC
kudos:2
Where I work We do have about 20-30 SAGEMCOM from bell, used, for sale when provider will no more forced to have rental modems.


Mike2009

join:2009-01-13
Ottawa, ON
kudos:3
Your company sells modems that were stolen from Bell? Not a good idea to advertise this.


Guspaz
Guspaz
Premium,MVM
join:2001-11-05
Montreal, QC
kudos:23
reply to Mike2009
said by Mike2009:

Back in the day they were more expensive and I bought a speedtouch modem for $85 through a group buy. Since then I've paid $20-$40 a modem. Prices have gone down big time.

the price of adsl2+ modems have no relevance to the price of vdsl2 modems. They're completely different things. And they cost much more than $85 to buy new, from what I can tell.
--
Developer: Tomato/MLPPP, Linux/MLPPP, etc »fixppp.org


Mike2009

join:2009-01-13
Ottawa, ON
kudos:3
They'll go down in time just like the adsl2+ modems. If you check the Canadian Broadband forum there's a source in Hong Kong selling them for $60 delivered.

tinachicka

join:2011-08-26
reply to TSI Gabe
said by TSI Gabe:

Buying modems is in fact available to us as of a few days ago. We are still working out the details so it's coming soon.

Any news on this? We want to upgrade our service but only if we can buy the hardware.


jmck
formerly 'shaded'

join:2010-10-02
Ottawa, ON
Reviews:
·TekSavvy DSL
·Start Communicat..
reply to Guspaz
said by Guspaz:

said by Mike2009:

Back in the day they were more expensive and I bought a speedtouch modem for $85 through a group buy. Since then I've paid $20-$40 a modem. Prices have gone down big time.

the price of adsl2+ modems have no relevance to the price of vdsl2 modems. They're completely different things. And they cost much more than $85 to buy new, from what I can tell.

the Huawei HG610 is about $50-60 right now.

InvalidError

join:2008-02-03
kudos:5
reply to Guspaz
said by Guspaz:

the price of adsl2+ modems have no relevance to the price of vdsl2 modems. They're completely different things.

A VDSL2 modem has practically the same fundamental components as ADSL2+ modems do, except extra analog filters to separate individual downstream/upstream bands and a ~10X more powerful DSP sporting ADCs/DACs with ~10X higher sampling rates.

Certainly somewhat more complex and using higher-performance parts but not so much so as to be more than twice as expensive.

lBrasi

join:2005-01-27
So now that we are able to purchase our own modems for 15/10 and above packages what are our options? Is Huawei HG610 an option?


Cartel
Premium
join:2006-09-13
Chilliwack, BC
kudos:2
Reviews:
·TekSavvy DSL
·Shaw

1 edit
reply to JMJimmy
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Modem rental fee even if you own your own modem?
This is news to me....I would not be very happy if I see a rental fee on my first bill.

I'm not seeing a modem rental fee on the website.


TSI Andre
Got TekSavvy?
Premium,VIP
join:2008-06-03
Chatham, ON
kudos:24
We just removed the rental fee a few days ago and replaced it with a purchase.


TSI Keith
Premium
join:2012-07-09
kudos:5
reply to Cartel
If you have DSL6 (or service in BC) this doesn't apply to you, no worries

The modem rental has been removed now so new customers just signing up will be buying the modem and not have a rental fee. However, the rental fee was only for 15/10, 25, and 50Mb service in ON and QC. So again, no worries there will not be a rental fee on your invoice if the screenshots provided are of your package.
--
TSI Keith (E-Services) - TekSavvy Solutions Inc.
Authorized TSI employee ( »TekSavvy FAQ »Official support in the forum )