Calculating Fido Early Cancellation Fee

[cowtree]

One of the Fido phones I'm planning to switch to PM still has four months remaining on the 24-month contract. Plus there's a balance of $56 on the device subsidy. The initial subsidy was $450.

The contract says: 

"An Early Cancellation Fee (“ECF”) applies to Term Services only. It only applies if you were given a device subsidy and your mobile service or Term is cancelled before the end of your Term. The ECF is equal to your device subsidy multiplied by the number of months remaining in your Term divided by the total number of months of your Term (plus applicable taxes). In other words, ECF = device subsidy x # months left in your Term ÷ total # months in your Term + applicable taxes."

So... does that mean $450 x 4 / 24 =75?

Help?!

I should mention that contract also says: 

Device Subsidy

"Only the value of the device subsidy will be used to calculate the Early Cancellation
Fee in accordance with the provisions below.

• Device Subsidy $449.00
• Maximum Early Cancellation Fee $449.00
• Amount Early Cancellation Fee will decrease each month during your Term $18.71

You will no longer be subject to an Early Cancellation Fee on your Term Expiry Date
set out above."

[darlicious]

@cowtree  Your remaining device subsidy is your early cancellation fee. $56 . If you switch today your plan portion is prorated as is your monthly device subsidy of $18.71. It is most advantageous  for you to port out a couple of days into your new monthly billing cycle. Say day three...as the CRTC considers any portion of a monthly billing  cycle a whole month. If you calculate that by switching to public mobile you will save $20 per month on your plan portion those savings will pay your device subsidy (early cancellation fee.) $20-$18.71=$1.29 ahead a month. But by porting day 3 your bill will be prorated to 3 days or 10% of of your monthly bill. If its $60 per month your final "months "bill will be $6+tax including that months device subsidy plus $18.71× remaining months.

           If you have three months remaining and port out on the third day of the month you will pay $43.42+tax ($18.71×2=$37.42+$6=$43.42+tax) If your fido plan was $60 per month it would cost you $180+tax to remain with fido. If the pm plan you choose is the $40/5gb you would pay $120+ $43.42=$163.42+tax A net gain of $16.58. It is likely your savings would be more...fidos 4gb BYOD  plan is $55 p/m. Public mobiles is $40/5gb p/m so you would save 3x$15=$45+tax -$43.42=$1.58 it you gain an extra 1gb of data per month and no surprise bills!

[cowtree]

Those CRTC rules I mentioned above came into effect in 2013... From a Financial Post story...

Under the final rules of the wireless code, customers who purchase subsidized devices must still pay an early cancellation fee to leave their contracts but that fee cannot exceed the value of the device subsidy. The amount of the early cancellation fee must be reduced by an equal amount every month for either a period of 24 months or the number of months in the contract, whichever is less. Cellphone providers cannot charge any fee or penalty for breaking a contract apart from that early cancellation fee.

https://business.financialpost.com/technology/crtc-wireless-code-canada

[mpcdesign]

See, by jumping from Fido to Public Mobile is the best measure. Fido used to charge me phantom charges. I would hold and talked to them to get them to credit my account, and this happens every 3 months. The best move ever moving from Fido.

Switch to a smaller plan if possible. Just a text plan of $15 a month. And before you know it, your plan is done, and then you can kiss Fido butt good-bye forever!

[Rubyz123]

I am in the same boat. My contact gonna expire in 2 month ( 29 mar) and decide balance is 60 right now.  Wanna switch but don't know how much I will end up paying. 🤔. My device balance decrease 30 each month as well. 

[cowtree]

Thanks for the suggestions.

I was having trouble reaching customer service but finally just did. They said I'll have to pay the remaining subsidy and obviously also for the days I used the service in the final month. So just $56 plus service used. Which doesn't really jibe with what the contract says. But it does seem to make sense when you read the rules.

According to the CRTC...

If you receive your phone or other device at a reduced upfront price (a "device subsidy"):

• The fee cannot be greater than the amount of your device subsidy.
• The fee must reduce each month and reach $0 within 24 months.
• The fee must decrease by an equal amount each month, unless it is a tab contract, in which case it must decrease by either an equal amount or an equal percentage of your monthly bill.

In all other cases:

• If you have a two-year or three-year contract, the fee is limited to the lower of $50 or 10% of the remaining monthly charges under your contract. The fee must reach $0 within 24 months.

[gblackma · Accepted solution]

@cowtree The best way to know what your early termination fee is would be to contact Fido directly and ask them.

[GR]

@cowtree i would say that's right!  Don't forget to get the phone unlocked if it was locked to Fido. 

[Nezgar]

Your math seems right to me. 4 24ths (1/6th) of $449 is $74.83. You might also only have 3 months remaining, since oftenn during last month of your term the device balance becomes $0 according to a crtc rule I think.

[totalUser]

It will be subsidy+outstanding balance.

You are better off switching to the lowest plan with them possible if you want to take advantage of this current promo you can. If your phone has 2 sims, even better.

A friend picked up a phone and needed to take a plan he didn't want to have. He agreed and a he got home he switched his plan to $20 lower, had no issues, nobody every called him about it and his tab didn't increase (he took the min plan possible so there was no bigger tab payment than his, the next one was buying it outright. You could try