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March 18th, 2008Telus launches Koodo [but why?]

Posted by Editor in telus, Wanker Brands

koodo

As was generally expected, Telus launces Koodo today. Koodo is another FauxVNO like Fido or Solo (owned by Rogers and Bell).

What distinguishes Koodo is that it’s branding is a different color than Telus, and it makes heavy use of Helvetica. Sort of an “American Apparel for Cougars”. Possibly those who also suffer from moderate colour blindness.

Presumably the garish branding helps to segment and mitigate any spillover from (or to) the mainstream brand, as Koodo targets “low end” consumers. It’s basically a me too move from Telus to capitalize on the “same high prices, crappier devices” model which seems to have been reasonably successful for Fido and Solo. Reminds me of this phenomenon.

Phones on offer come with features as exciting as 0.3 Megapixel cameras and SMS.

Data is priced at 5cents a “page”. [What does that even mean?]

You yourself can try and restrain your excitement here

tip: If you are looking for cheap very basic voice/text mobile service check out the 7-eleven prepaid devices. You’ll do better.

  • http://startupnorth.ca Jevon

    They advertise it as “shaking off the fees” but Caller-ID and Call-Waiting, which are FREE on all the Pay as You Go plans (presumably the same target market), are both 5$/month (which remains some of the most insane per-bit data pricing imaginable.

  • TP

    It appears the difference is “no system access fee”. And with the tab you are only indentured to your mobile contract rather than committed for a 3 year term.

    Note tiger direct has the GSM KRZR here for $175 (which Koodo sells for $200) and many other cheaper unlocked phones besides, including a Moto F3 for $39.
    http://www.tigerdirect.com/applications/SearchTools/search.asp?cat=1809&mnf=587&keywords=phone&sort=Price%20asc

    To earn your full $150 credit back from Koodo, 10% of everything you spend gets earned back against your TAB (you have to spend $1500). So at the theoretical $25 plan without extra fees, at that rate you would pay off your phone in 5 years.

  • Gary

    I think they are reasonably competitive. No System Access Fee and no activation fee. Voicemail/Call Display/Unlimited texts for only $10. I don’t see why everyone is complaining. All plans apart from their $15 plan include unlimited evening and weekend minutes. What exactly do Canadians want? Everything for free?

  • http://montrealtechwatch.com heri

    mmm … i thought Fido was a real carrier. don’t they have their own infrastructure?

  • Jonas

    Why did they have to go and ruin the Eric Prydz Call On Me video?

  • http://startupnorth.ca Jevon

    National Post .. post: http://network.nationalpost.com/np/blogs/fpposted/archive/2008/03/18/telus-koodo-mobile-brand-launched.aspx

  • http://www.iphoneincanada.ca iPhone in Canada

    Although the service is not the best, you gotta give credit to Telus for introducing a low cost cellphone option for us…keep them coming, and hopefully the prices will drop on our plans!

    Gary: LOL @ CDNs wanting everything for free! I think the problem is that us Canucks loathe when we see how competitive wireless plans are in other countries–except in ours!

  • Christian

    I guess I’m not sure how one existing incumbent opening a “low-cost” MVNO (more or less like the existing ones) will improve consumer pricing. Now all the incumbents have one primary and one discount brand – they are essentially still just ‘competing’ (er, is colluding too strong a word?) with each other, and to a lesser degree with themselves (though the discount and main brands geneally appeal to a different segment of the consumer market), but I don’t see how that’s likely to improve the deals we’re getting – and even if it did, it wouldn’t likely be sufficiently compelling to prompt much consumer movement because so many of us are locked into contracts that make moving unattratcive unless we get one heck of a deal (and we also probably can’t take our phones with us!). Just look at the advent of wireless number portability last March – didn’t see much increased competition or movement when that happened, did we?

    Clearly also the deals on offer now also haven’t shifted our adoption rate, with Canada at the bottom of all developed nations (save Mexico). And that’s not simply a reflection of high costs and poor choice, it also has an impact on our economy. A useful point from the CBC:

    “A June report by consultancy S. Melamed Associates Inc. found that if Canada had begun to accelerate cellphone adoption in 2002, the economy would have benefited by $56 billion, or 5.1 per cent, in additional gross domestic product by 2006.” But it’s pretty hard to drive increased adoption, with prices as high as they are and packages as inflexible, both nationally and in relation to similar markets.

    Consider that heavy cellphone users in Canada pay 56% more for cellphone service than their US counterparts, with that number dropping to a still significant 33% for average users. All that said, we still seem ok with paying these rates (well, what options do we have?) – and by god our carriers seem ok with charging them! And so why would they change that approach without some (competitive) pressure?

    Remember, Telus, even now with its new low-cost, visually-blinding and aesthetically-scarring brand, is still the market leader for ARPU when it comes to mobile telephony in Canada (if not North America). And Canada’s cell providers in total, rank 8th in the OECD in ARPU, at $41.50 per customer, per month.

    You only have to look at Koodo’s “Reason to Switch” page to see the irony as they decry the strategy that has been a success for Telus:

    http://www.koodomobile.com/en/ab/about.shtml

    And this coming from the people who brought you failed MVNO Amp’d Mobile, rife with multimedia content and premium options (and charges). Well, I guess if Amp’d was the binge, Koodo is the purge. And that’s just not helthy no matter how you slice it. But really, the market leader in ARPU telling you that they’re here to cut down you cell bill is like the government calling me to let me know they’re here to help me reduce my taxes.

    Seems to me that the only way we’re going to see increased competition, consumer value and adoption, is through the addition of new carriers with a different (and market-disruptive) approach, not the same old carriers pretending to be something they’re clearly not. Fido took us some of the way there when they arrived on the scene, but couldn’t sustain it – too bad for all of us. And that’s why the glimmer of hope offered by the upcoming spectrum auctions seems so promising. The possibility of multiple incremental national carriers suggests that they (and the incumbents) will have to employ strategies and services which truly differentiate them. With sufficent innovation, new carriers will create sustainable business models that could drive increased adoption and lower-cost, higher-flexibility options for Canadians. And wouldn’t that be nice?

  • http://communities.canada.com/montrealgazette/blogs/tech/archive/2008/04/02/telus-introduces-koodo-a-low-cost-alternative.aspx Montreal Gazette

    [...] their marketing, CEO Kevin Banderk said it spoofs 80s fitness videos driving the “Fat-free” message.Wireless North calls the look “American Apparel for cougars.”  Link to this | E-mail this | Digg this | Post [...]

  • Rine

    I don’t get it.. why is everyone so down on Koodo?
    This article makes it sound totally pointless.. am I missing something?
    Is there somewhere else I can get 100 mins, unlimited text, 7pm evenings & weekends, call Waiting, call Forwarding, conference Calling, voice-mail, call ID & Per-Second Billing for $35/month in Vancouver?

  • Rine

    Sorry I mean 5pm evening a weekend for same price.

  • Rita

    I completely agree with Rine, what’s the big deal? No system access fee or activition fee. Sounds like a pretty good deal to me.

  • Sandra

    All deal or no deal pricing plans and phones aside, I frankly just don’t get the marketing. I tend to be very liberal in my tolerance of new marketing tactics as I’ve questioned some that really worked out well (lesson learned) but who is the target here? I love the “American Apparel for Cougars” reference, but if even that is a stretch. Only those of us who were around in the 80′s will truly get the “20 Minute Workout” catch, but even back then the show appealed highly to mid-20s men (at the youngest) at that time, who are now much older, and I’m certain that isn’t the target. The claim is that it is a “Youth Targeted Brand” here http://www.theglobeandmail.com/servlet/story/RTGAM.20080314.wrkoodo14/BNStory/Technology/home?cid=al_gam_mostview but I really think they missed it in their branding and ads. The kids won’t get the reference, they were either too young or not even born in the 80′s, and I find the colours and branding to be too childish to be accepted. The attempt at kitch has been lost in the obscurity of the reference.
    What they have done well is coverage. My eyes and ears are being burned by the ads regularly.

  • Christian

    After years of getting gouged by the cellco’s, I’m sure it does sound like a good deal, but realistically, it’s still truly questionable value in a global, or even North American context, and I think that’s what has most of us bitter. ;)

    Moreover, neither the activation fee or the “system access fee” are real/legitimate tarrifs – they shouldn’t exist in the first place, so that fact that one MVNO (who offers three phones, vanilla service and not much else) is ditching them is cold comfort, given that they admit these fees are “fat”, and yet still foist them upon 99% of their cellular customer base through their primary Telus brand. I’d call that a painful hypocrisy, and if I were a Telus customer under contract right now, I’d be pretty peeved.

    I guess this may all sound a bit whiny, to be sure, but the bottom line is that Telus, through their main brand, and all the other carriers are still really giving us the gears when it comes to price, features and handset selection. And even if anyone wanted to switch to Koodo, there’s the matter of those onerous contracts, which Koodo does not make any easier with their ‘tab’ scheme (which, on a low cost plan could mean up to 5 years to pay off a phone) which uiltimately means you have to buy the phone if you’re not going to stick around (or are displeased with what you end up getting for your $35/m). Anyhow, if you’re not under an onerous contract with Telus and don’t mind buying a new phone, since you still can’t just activate one on someone else’s network (even if it’s from Telus to Koodo oddly enough by the looks of their online activation details), then I guess godspeed and enjoy your ‘fat free experience’.

  • cookie

    I looked into it and our bills would go from $124/month to under $70 for 2 phones. Personally, we intend to switch but we’ll wait until June to see what’s going to happen. We’ll happily pay to get out of our contract.
    PS- Koodo has no contract, no fees, etc.

  • Winni

    Koodo seems like for teenagers, theres a plan with like 1000 free minutes–wow! Unlimited texting, etc, free after five..sounds like an awesome deal. I don’t like the fact they only change their models once a year..but hey..I’m in for the talk!

  • Mystic

    “but Caller-ID and Call-Waiting, which are FREE on all the Pay as You Go plans (presumably the same target market), are both 5$/month”

    Solo, and Fido do not offer Call display. Call display for Solo or Bell Mobility is like 6 or 7$ extra

    I see no option for call waiting so i assume its included.
    If you’re someone who uses your phone to quickly talk to someone (find out what to get for dinner, or call someone for directions somewhere) then this is exactly what you need.

    Right now i pay over 50$/month will bell. They said i had the cheapest plan at 100 minutes, unlimited incoming calls, and i added voicemail and text messaging because thats what i use most.

    So , all i need is voicemail, textmessagin, and say 50 minutes. I can get this for 25$? thats awesome, saves me tons, and bell can stick their 8$ monthly access fee!

  • Mark

    For cellphone mavens who interest ourselves in the industry and read websites like this and carrier brochures for fun, I understand why you are bothered to see that Koodo is a spin-off from Telus.

    But keep in mind that the average person on the street sees Koodo as a “new cellphone company”. And with their extremely competitive rates and selection of a la carte options, they are an extremely compelling alternative. If you work or go to school and don’t talk much during business hours, Koodo beats every other incumbent on price and plan option flexibility.

    Their 1000 minute plan combined with their selection of “unlimited” options (especially long distance) give Bell and Rogers a run for their money.

    The link between Telus and Koodo doesn’t make it nefarious. Telus is testing the waters of the budget market without risking their established brand image, this is nothing new in business. I applaud them for pushing down prices, getting rid of 3yr contracts and system access fees. These are all positive actions that advance the CDN mobile market. And if people respond positively, you can be sure other carriers will notice.

  • Blake

    I have no idea why anyone is bashing koodo? Confused by their marketing? I’m confused why someone cares so much about a cell phone carrier’s marketing….look at the meat and potatoes….I’d cut my rogers bill in half by switching to koodo. Isn’t that the most important point here??

  • Terry

    I just did the math and the $30 plan with a couple of add on’s I will save over $45 a month switching from Telus. Even after the penalty I will save over $200 for the next year. I’ll give it a try.

  • Joey

    Anyone else notice the astroturfing in the comments? 1/2 of the commenters probably work for Koodo/Telus and try to add positive spin.

    This is the first hit on google when searching for ‘Koodo’ and ‘pay as you go’ and I was disappointed that Koodo doesn’t offer this. I would echo that Koodo doesn’t seem to be aiming to provide inexpensive service.

  • Ken

    I have just hopped on the koodo wagon and now im paying 40 dollars a month for a my five (unlimited messaging, talk, text to five numbers), voice mail, call display, call waiting, unlimited text, 7pm nights and weekends, 100 anytime minutes. Service is great. have called customer service and waiting times are incredibly low compared to bell, fido, rogers… loving the value here and saving about 30-40 a month from a similar plan with bell.

  • http://www.fido.ca/portal/web2fido/compose.do?lang=en#sms David

    @Mystic: “Solo, and Fido do not offer Call display. Call display for Solo or Bell Mobility is like 6 or 7$ extra”
    I can’t speak to Solo, but I currently have Fido prepaid and it comes with Call Display included.

    I don’t get all the negativity in the comments. Having the option to get out of my plan whenever I want by having to pay a deprecated price for my phone sounds like a good option to me. What better options are there?

    Sure their ads work against them, but they seem to offer a good deal. And sure the telcos are all crooks, but that doesn’t make this a less bad deal.
    The only problem with Koodo is that their data plans suck and their selection of phone suck. But if you want an iPhone, then they clearly aren’t for you. I have Fido and pay $10/month for 30 minutes of talk time. I want to upgrade my usage a bit and Koodo seems like a great venue for me.

    The only question I have is there something for Koodo/Telus like the fido web messaging portal (click my name).

  • Inama

    HEY EVERYBODY
    I am really interested in the whole Koodo plan. But I was wondering, do you have to get one of the phones that they offer, or can you use your own phone and have their plan?

  • Inama

    im really interested in the koodo plan. but do you have to get one of the phones they offer, or can you use your own phone and have their plan?

  • lawl

    guys, you all need to realize that cell phone companies such as bell, telus etc pay close to nothing for their phone models, yet will charge (usually) a minimum of $30 for a phone on 3 YEAR CONTRACT (contracts are NO fun). That is money in their pocket. Not to mention their hidden fees and system access fees. To buy a phone from bell, you’re paying way too much. Getting out of a contract with any of these places is costly as well. A lot less than it would cost to pay your phone off through koodo.

    As for the $5 per extra (such as texting or voicemail etc), they direct those towards people who only really want one or two things, and not everything. That is why they have the $10 bundles for those who want the whole package.

    So what if they are part of Telus? It is cheaper regardless of how they make you think its a trick.

    Cheaper is better. end of story.

  • Dan

    I also think Koodo is a better deal, at least for me. In fact, I’ve just switched from Telus Mobility to Koodo and I’m saving $15/mo for more services than I had before.

    Here’s what benefits me.

    First of all, I’ve never been one for contracts, especially with cell companies. I tried it once and was glad when it finally expired. Since then I’ve outright bought my phone so I could stay off of a contract.

    With Koodo, I get the best of both worlds. I don’t have a contract, yet I get a “free” phone. Yes, if I cancel my service I have to pay it off, but big deal — I would have paid for it outright previously, so I’m no worse off. Even better, since I’m not on a contract, I’m free to change my packages around however I please.

    Once you’ve paid off your tab balance, you actually start earning a positive tab balance up to $150. This in effect means you potentially get up to a $300 phone for free. This system rewards long-term customers.

    Another benefit for me, is international texting is included in the texting packages. I have friends in Australia who I keep in touch with via texting. In the past, this has cost me eventhough I have a texting package.

    Overall, I think it’s a pretty good deal. The phones aren’t that bad either. Maybe they’re not the top-end phones, but they’re decent.

  • Christina

    For over two years I was in a contract with Bell, with about 11 months to go. For two phones I was paying AT LEAST $100 per month, and often more due to long distance charges. My most recent bill was $140. By doing the math, I found this out:

    11 more months of $140 bills = $1400
    Cancelling my bell contract = $220
    Switching to Koodo and getting a plan with unlimited long distance, unlimited text, call display and voice mail costs me $61.50/month (including taxes), therefore
    11 months of Koodo = $615

    $615 + $220 = $835
    By breaking my contract, I still save $565 in 11 months. Kitchy marketing aside (which I actually find hilarious), that’s pretty compelling.

  • Christina

    Actually, I was able to review my invoices for the past year, and it turns out the average I paid per month with Bell is $104. So I had to readjust my math:
    $104/month x 11 months with Bell = $1144
    Cancellation fee for breaking Bell contract 11 months early = $220
    Keeping my current Koodo plan for the next 11 months = $683.65
    Total cost of switching to Koodo for 11 months = $903.65

    Total savings going with Koodo = $240.35

    So yeah, it’s still saving me money.

  • Kaila

    I guess it really depends what your looking for in your server.
    For me, I am constantly between school and home, so unlimited local calling doesn’t really help me at all.
    Koodo offers $45 a month for nationwide evenings and weekends.
    It’s better then paying 30cents a minute for every long distance call I make (which is quite a few).

    But I do wish they had more phone selection, 5 options isn’t near enough.

  • Kaila

    oh.. and with that $45 I also get unlimited test/photo messaging.
    So not bad.

  • Abdul Abdo

    I just got a phone for my wife from Koodo, our requirements was International texting and this was offered to us for an extra fee. However few days later and my wife is able to send International text, but could not receive from any of her friends around the world. So we are very disappointed, we were sold on a feature that does not work. I will try to see if Koodo have any solution for us, it looks like I have to cancel this cell phone account.

  • Alma Martinez

    Look like Koodo is not revealing any limitations of their service when selling these cellphone plans. Internationl Text massage does not work, you might be able to send, but it is very unlikely that you would receive anything. This is a misleading advertising. Any one else having the same problem. is it time for a class action suite?

  • Gillian

    i just got a koodo phone and i cant send text but can’t recieve them what do i do?

  • Editor

    Interesting, we’ll have to investigate and get back to you!

    Abdul, Alma, Gillian, have you tried contacting Kooko?

  • Bonu$

    I just switched to Koodo with a moto krzr (nothing special but it does what i need it too phone, txt, mp3 player) took the $45 nationwide plan & added call display & voicemail…so $55+tax gives me 250 anytime minutes nationwide, unlimited nationwide after 7pm & weekends, unlimited texts (I am able to send & receive without any problems). I make a lot of LD calls so there is really no other provider that can come close to the price i’m paying. I also got the phone at Future Shop for free and got a $50 gift card that i used towards a bluetooth headset & car charger…pretty sweet deal

  • Steve

    Hi,
    My wife switched to Koodo from Bell. The included international texting was a bonus. However, after weeks, she hasn’t been able to send nor receive any international texts messages. We did call Koodo. One CSR said to put a ‘+’ at the beginning of the number. However, the motorola phone that she got can’t put a ‘+’. So we called back and talked to another CSR. He didn’t know the purpose of the ‘+’ and said it was nonsense. The CSR’s need to get their facts straight. After taking down our complaints and providing us a ticket a couple of times, we’re slowly loosing our patience. We might go back to Bell. But the dumb thing is, we lost our awesome plan. Rrr

  • http://www.ffxi-gil.org buy gil

    Similar to the competition, Koodo is a service that caters to low-cost cellphone use, giving subscribers plans that serve very specific needs.

  • http://rickmccharles.com/2008/12/13/should-i-hate-koodo/ should I hate Koodo? « RickMcCharles.com

    [...] blog Wireless North ran the news with the headline “Telus launches Koodo [but why?]“ and suggested the brand be called “Metoo” because it was following in the footsteps of [...]

  • LOL

    LOL.
    It's for internet browsing.

    every page you go on, they charge 5c. LOOOL

  • Sharon

    Not quite! Koodo is a lot better than the 7/11 prepaid devices. You get real service, you don't run out of minutes and need to buy another card. It's not for “low end” consumers at all… you still need to have a good credit check come through. And you need to update yourself on their phones. Their LG Keybo has a 2mp camera on it. But, do you want a cell phone or a camera? Because if you're looking for a good high megapixel picture taker, buy a Sony or a Canon. If you want a good cell phone, LG and Motorola are great and both are offered by Koodo. If you want a crappy cell phone, go for those prepaid phones you mentioned.

  • Cory

    I have an LG Keybo and love my service with Koodo. It was a little rocky as my SCH-U410 sucked the big one. But Koodo gladly tossed out my tab on it and allowed me to buy the Keybo for 75$. I was with Bell, and my phones battery died 11/12 months of the units warranty. I went in and asked for a replacement battery. They told me no, I told them to stuff it and bought out my contract and ported my number to Koodo. Cost me 400$, but I'm happy that I don't have a contract binding me to their service for years on end. It's not that I'm afraid of commitment, I just don't like the idea that the only way bell can keep their customers is by tieing them to their contracts and charging them up the ying yang to cancel.

  • Soleil A

    All I want to know does koodo have prepaid phones?? I've seen more koodo phones everywhere like there's no tomorrow, but I don't see refill pin cards for koodo. I really want to know becuz' I've for a LG Voyager from Telus and I'm pretty bored with it now and I want to change my phone now

  • Soleil A

    All I want to know does koodo have prepaid phones?? I've seen more koodo phones everywhere like there's no tomorrow, but I don't see refill pin cards for koodo. I really want to know becuz' I have a LG Voyager from Telus and I'm pretty bored with it now and I want to change my phone now

  • Thure

    A “page,” is basically like measuring data in ye olde “chains” and “furlongs.” See this site: http://www.unitarium.com/data. Wikipedia doesn't even mention this unit of measurement.

    According to said site, a page is about 1.7 kilobytes. What gives? If you use data services often, I've seen plans from other companies for ¢3 per megabyte. Why are wireless companies so sketchy in Canada? It makes me nauseous.

  • N/A

    You are obviously not very bright. 5 cents a page means when you are browsing the internet every new page that your phone loads, it will cost 5 cents. Not everyone needs the top phones, like you said yourself, it's for people who dont make as much as others. Go get the LG Keybo with Telus, it will be a lot more expensive. Pull out whatever is stuck where the sun done shine, and get real. You need to grow up and step into reality.

  • N/A

    Dont***

  • m

    Koodo is prepaid, there's NO CONTRACT as long as you don't get the Tab. So, every phone is prepaid pretty much.

  • m

    Koodo is prepaid, there's NO CONTRACT as long as you don't get the Tab. So, every phone is prepaid pretty much.

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