Is Shaw Price Fixing With It's Competition?

[shaw_user1]

Hi Guys

Time has come for me to renegotiate my deal with Shaw (again).

This time I was told over the phone by Ali that Internet 15 would now cost me $82 a month... or he could offer me a deal on Internet 300 at $90 for the first 12 months on a 2 year "value plan". I don't need or want Internet 300, so let's do some math. 15 of 300 = 5% and $82 of $90 is 91%. So for 91% of the cost Internet 300, I can stay with my plan at 5% of it's speed? That doesn't seem fair. Or, we could look at it another way; Internet 15 at $82 works out to $5.47 per Megabit. Internet 300 at $90 works out to $0.30 per Megabit. How do you justify that?

Is it because the next biggest "competitor" has similar rates?

Why is it that I can get Internet 25 through a reseller over the Shaw network for $38 a month or less?

Ali said that Shaw was phasing out Internet 15, but that I'm grandfathered in. Then he kept trying to sell me on a plan I don't need like he was some commissioned car salesman pushing extended warranty. I told him that I refuse to pay for more service than I need, and demanded a fair price for what I actually use.

Today I received a call from Lawrence. He offered me Internet 300 for $50 a month for the next 2 years. My question is, why does Shaw adamantly refuse to do better for the plan I've always been on?

Why is Shaw trying to force customers like me into giving up service plans that already meet their needs? Is this how they justify their constant price increases? Does Shaw then turn around and tell the CRTC, "Canadians are voluntarily choosing to pay more for faster internet!"?

What's going on here amounts to extortion. Between Shaw and the other big "Telco" doing it, I'd say there's obviously some price fixing going on.

It's funny how I don't have these sorts of problems with my electricity, water or gas bills.

From most of the people I've talked to, there seems to be a lot of confusion about how internet service billing works. I'd say that 90% of people I've spoken to don't understand what they're paying for, or even how much bandwidth they use. I suppose that's how Shaw gets away with the constant price increases.

Let's pretend Shaw was the Power Company and sold electricity in tiers;

Shaw:

"Electricity 1000 plan" - 1000 kWh a month for $100.
"Electricity 1500 plan" - 1500 kWh a month for $120.
"Electricity 2000 plan" - 2000 kWh a month for $130.

Me:

I'm only using 500 kWh a month and paying you for 1000kWh. Can you please give me a better deal?

Shaw:

I'm sorry, we've decided to phase out the Electricity 1000 plan. But you can sign up for our Electricity 3000 value plan on a 2 year deal for $90 a month for the first 12 months*.

*We'll be jacking up the Electricity 3000 rates like clockwork for the rest of your life after that. Hope you're not ever planning to live on fixed income.

Me:

How is this even legal?

Look, I'm happy with what I've been paying you guys for my Internet and Phone bundle for the past 12 months. I think it's fair, and I'd like it to keep it that way. I'm a long time customer, and I've always payed my bill on time (without a contract). That's why it's so disappointing that you continue to try and do business in this manner.

Right now my choices are;
a) Get gouged to keep Internet 15.
b) Forfeit my current grandfathered plan I'm on to get a better deal with Shaw.
c) Forfeit my current grandfathered plan I'm on to get a better deal with a Shaw Internet reseller.

Based on my conversation with Ali, it seemed like getting people off Internet 15 was a higher priority at Shaw than customer retention.

One year ago I had enough and phoned the reseller. Upon receiving the cancellation order, I promptly received a phone call from Terry N. at Shaw. He offered me the deal I've had for the past 12 months, but I told him that I was tired of always having to renegotiate every year or so. He gave me his direct number and his word that I would be dealing with him from now on, and that he'd be looking after me personally.

Here we are 12 months later already. I have left messages for Terry, but all I get is infuriating script readers like Ali calling me back. I don't want to hear, "We don't offer promotions anymore..." or "These are the packages the marketing department has given us..." Paying for internet shouldn't be like taking your car in for service at the dealership!

After reading this, I'm hoping someone on here will work with me to get this fixed.

I will be making an archive of this post in the event some Shaw Forum administrator decides to censor or delete it. Loblaws recently got hit with a Class Action Lawsuit for price fixing on bread. I think there's a lot more people getting fleeced out of their money every month from excessive internet service charges than they were on the price of hot dog buns. When it's your turn Shaw, I hope this post becomes "Exhibit A".

tldr;
The cost for my "High Speed Internet" has basically doubled since I started paying for it. I'm using the same modem, and my speed is the same. Shaw's response has been for me to just pay them for faster internet.

[shaw-tony]

Hey @shaw_user1, I appreciate your long-standing business with us and thank you for your feedback. Our teams definitely want to ensure the Internet service best fits your needs. I understand that you enjoy Internet 15, we do have a 2-year value plan available for that service which is $65/mo. This locks the rate in for 24 months so you don't need to worry about rate adjustments. You will need to touch base with our customer support team members to get the plan. Feel free to reference them this thread.

[mdk]

> "Electricity 1000 plan" - 1000 kWh a month for $100.

> "Electricity 1500 plan" - 1500 kWh a month for $120.

> "Electricity 2000 plan" - 2000 kWh a month for $130.

In B.C., there has been talk about lower electricity rates during "low-demand" periods, e.g., run your dishwasher/washer/dryer after midnight, and pay less per Kilowatt-hour.

Note that it costs Shaw a "fixed" amount to run their network all the way into your cable-modem. So, "Internet 1.0 Mbps" (if it still existed) would only be slightly cheaper than your current "Internet 15".  For Shaw, it's just reprogramming the modem to deliver 1.0 or 15.0 speed. Want your modem to run faster? Then, pay more to Shaw.  Economists say "fixed costs versus variable costs".

When I first signed-up with Shaw, I got 5.0 Mbps. Later, a free upgrade to 7.5 Mbps. Later, a free upgrade to 10.0 Mbps (with Shaw SpeedBoost up to 30 Mbps during a download of a file), and finally an upgrade to 15 Mbps (no SpeedBoost).  Yes, along the way, there were annual price-increases by Shaw within my "grandfathered" plan.

Also, over the years, there have been price-increases in gasoline, heating-oil, and other consumables by non-Shaw companies. The first brand-new automobile I purchased (1973) was about $3000; my latest brand-new automobile purchase was about TEN times as much.  The first house I bought was for $39,000. Today, that same plot of land (excluding the house sitting on the land) is valued at over $500,000.

Moral: price-increases happen everywhere, including at Shaw. Just "freezing" the cost of Internet access is not feasible -- not by Shaw nor by BCTEL/AGT.

[Pattipureheart]

My shaw bill for only internet has gone up $8 in one year, nothing has changed, no improved speed, nothing extra,  No tv, just internet.  Yes, it feels like price gouging for sure.