Spend more to save some money with Telus's new Premium Plus financing option.
Last week, Telus launched a new plan under the Premium Plus name.
At a time when many U.S. carriers are all-in on financing options, Telus's new Premium Plus plan is a hybrid system, providing customers a considerable subsidy in exchange for a two-year contract, along with flexibility in choosing to spend around $10 per month more on a plan in order to spend less for the phone upon purchase.
What is Premium Plus?
Premium Plus is the name of a new type of financing option offered by Telus, the second-largest carrier in Canada. It allows customers, new or existing, to add a small amount of money to their plans per month in exchange for paying less for the phone at the register.
How does it work?
It's actually quite simple. Telus's ordinary Your Choice share plans are priced based on the type of phone you buy: a premium smartphone, like a Galaxy S7; a smartphone, like a Moto X Play or other low-cost Android phones; and BYOD, where you bring your own device.
Premium Plus is interesting because it lives alongside the phone's subsidy, and is completely optional.
When you buy a premium smartphone, Telus subsidizes the cost by as much as $600, which allows you to buy it for considerably less than its retail price, in exchange for signing a two-year service plan. A Galaxy S7, for example, costs $900 when purchased outright, but $250 up front with a two-year plan, making the subsidy $650.
But $250 is still a lot of money to spend when you're also signing up for an expensive plan, so Telus decided to add the option of allowing customers to tack on an additional $10 per month to that two-year plan in order to lower the up front cost even further — in this case to $50.
So Telus is increasing the subsidy?
No. What it is doing is allowing you, the customer, to finance the cost of the phone over two years, by adding an additional $10 or so to your monthly bill. This is a system that Telus's flanker brand, Koodo, has had for some time.
Premium Plus is interesting because it lives alongside the phone's subsidy, and is completely optional. It allows you to buy a $900 Galaxy S7 for $50 up front.
Is Premium Plus only available for certain phones?
Yes, the Premium Plus model only works for phones that are already heavily subsidized, and fall under Telus's Premium Smartphone category. Devices that cost around $500 outright don't need Premium Plus because Telus is already subsidizing the vast majority of the phone's cost in exchange for a two-year service plan.
Tell me: Is Premium Plus a good deal?
Well, it's an interest-free loan, so yes. Telus isn't charging interest on the additional discount, it is just breaking a portion of the phone's unsubsidized cost into manageable monthly payments that are tacked onto the end of your monthly bill.
Is it a good deal? Well, it's an interest-free loan, so yes.
There doesn't appear to be a "downside," per se. It's a matter of figuring out whether you can stomach an extra $10 per month on your bill versus paying more for a phone at the time of purchase.
Which phones are compatible with Premium Plus
According to Telus, any phone in its Premium Smartphone category is compatible. Specifically, that includes:
- iPhone 6s / 6s Plus / 6 / 6 Plus / SE
- Galaxy S7 / S7 edge / S6 / Note 5 / S6 edge
- LG G5
- BlackBerry Priv
So should I go for it?
That's totally up to you, but like I said, there doesn't appear to be a catch or inherent downside to the deal. It's just a response to the weak Canadian Dollar, which has caused the price of handsets to rise.
Got a question about Telus Premium Plus plans or anything else to do with the Canadian market? Let us know in the comments!
Reader comments
Understanding Telus's new Premium Plus financing plan
Wow, look at the comment section lighting up an yet another article that has nothing to do with the U.S.
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So....they shouldn't post Canadian news? I love that they post Canadian content. Makes me not have to check Mobilesyrup all them time.
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I must have missed where they listed AC as being a site US mobile news exclusively. Got a link?
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It's fair 98% of content here is from the US
Posted from my Moto X 2nd gen and my Nexus 9 both on Android Marshmallow
Feel free to skip.
I hear they post content for British audiences too! Scandalous!
WE MOS DEF NEED THAT IN THE U.S. INSTEAD OF "SMARTPAY"!!!!!!! THEY TRIED CHARGING ME DOUBL FOR MY LG STYLUS!!! I OFFERD TO GIV BAK THE FONE (B4 IT GOT KRAKT THRU THE SKREENKOVR INTO THE GLASS SKREEN) IF I GET MY REFUND. LET'S JUST SAY IT DIDN'T GO SO WELL HUH. SO BASICALLY SINCE THEN, THEY HAV NOT RECEIVED NOT ONE CENT FROM ME. NOR WILL THEY EVR... jeje...
Anyhow, my point iz that WE REALLY NEED SUMTHN LIKE THIS "TELUS" THEY SPEEK OF.
JUST A PIECE OF ADVICE FOR ANYONE THINKING OR EVEN PLANNING ON GOING THRU WITH THE WHOLE SMARTPAY THING: DON'T
DO
IT
WORST MISTAKE YOU'LL EVER MAKE!!!!! TRUST AND BELIEVE ME WHEN I SAY THIS....
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...what?
LOL Right?
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An extra $10 a month on plans that are already expensive for 2 years? You're better off buying outright.
Yup. It's about 20% interest.
While interest free and low up front cost you are still paying for the privilege subsidized down to $250 with a 2 year contract then down to $50 if you pay $10 more a month on said 2 years you are paying an additional $40 for that. 24 X $10 =$240. Good deal for someone who can't pay for a phone outright but not no cost either. Besides what is the service cost markup of the 2 year contract to cover said subsidy? To just cover the $650 over 2 years would be about $27 that's break even doubt they are at that or lower so ...( wouldn't know not from canada and haven't had any contracts in over 2 years! )
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I agree. The math doesn't work out here.
$50 up front + 24months x $10 = $290. The phone initially on that contract was $250. There an extra $40 in there. Not exactly interest free. Just saves you from having to pay $250 upfront. Unless I'm missing something from the article.
If you can't afford to save $10/month for 2 years to pay the subsidized price of your next contract phone, then you shouldn't buy that phone. Get something cheaper.
Sounds like the kind of 'deal' Telus would be peddling. They do know how to make money!
If you pay $200 for a $900 phone, the $700 you didn't pay is subsidized at $29.17/month. If you sign up for the Premium Plus plan, and you only pay $50 up front, the remaining $150 is tacked onto your bill, the same exact way as the previously-mentioned subsidy. Therefore, it is a subsidy.
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That is not what a subsidy is. Look up the definition. This is a no interest loan that the customer pays back over the contract term.
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Don't forget, the quoted extra $10/month often requires signing up to a "premium" plan. In my recent experience with the Telus "flanker" brand Koodo, I was using a BYOD on a $57/mo plan. As an example, the Galaxy S7 is $400 up front as long as I:
- Pay $21/mo towards the subsidy for 24 months.
- Sign up to a premium plan that would cost $20 more/month for essentially the same service I have currently.
For people already on subsidy contracts paying a typically inflated Canadian price for their plan, this is a decent system. But I broke the cycle a few years back and once you're on BYOD these deals aren't so...great. I will add however that Koodo at least doesn't lock you into a contract. You just need to pay out any remaining balance owing on the subsidy if you leave before the 24 months is up.