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Telus launches Koodo to fight “bill bulge”

It’s not often that we see a spin-off of a telecom poking fun at its parent company. For instance, you wouldn’t see Boost ripping on Sprint in really any instance. So it was kind of strange to hear that Koodo, the newest spin-off of the Telus network, make fun of the top three carriers in Canada, its parent company included. The service, which launched yesterday after a few days of heavy rumors, is focusing on what they call “lean” cell phone plans. It’s an interesting concept with a distinct sense of humor.

“Canadians are consuming fatty, unnecessary mobility features like television, video calling and satellite radio,” the brochure said. “All the while being weighed down by the excess cost.”

To supplement the “fatty” concept, Koodo’s brochure features throwback, 80s style workout themes. Yes, we’re talking spandex and headbands…the whole nine yards.

The idea is not only to tout cheap, extras-free cell phone plans, but to distance itself from its parent. Telus relies on such services, including a monthly access fee, for their main source of revenue. However, launching this no-frills plan can help them compete with Rogers’ Fido, Bell’s Solo, and Virgin Mobile Canada. Distancing themselves from Telus can only help.

Though no one from Telus would comment on Koodo, it’s well-known that the company registered the Koodo brand last year. Telus tried a similar tack by introducing Amp’d Mobile to Canada, but that died along with the American version of the company.

And by “no extras,” they really mean no extras. The low-end package, at $15 per month, gives you 50 anytime minutes and 50 text messages. Call display and voicemail are actually an extra $5 each. Unlimited texting is also $5 per month, but you can get all three features for $10.

The best part, though, is the “tab” system. This is where you can take up to $150 off the price of a phone…kind of like a subsidy. Then, 10 percent of your monthly fee is subtracted from the tab, until the phone is paid off. If you choose to leave Koodo before you pay off your tab, though, you’ve got to settle up. Seems fair enough.

You can check out the whole operation at KoodoMobile.com.

[ReportonBusiness.com]




One Response

  1. This is an update to a first review I posted in which everything was going fine.
    I’ve been with Koodo for 1 year now and things have gotten worse.

    For those who use their phone a lot, you will notice some occasional text messaging problem, and this seems to be biggest issue with the Telus/Koodo network. Text messages can be slow, they often appear as failed to deliver although the receiver gets it in double.
    I text about a hundred msgs a day and this problem occurs maybe once a week.

    Six months after I joined, the charger for my KRZR became dysfunctional. The connection seemed to be very loose and it was no longer charging my phone properly. So I went to the store and they replaced it for free, as it is still under the 1 year warranty, no hassle.

    Four months later, the replacement charger stops working as well. It appears to charge and de-charge the phone if you move the cord in the wrong way, another loose connection.
    Something is definately wrong with the charger because they tried it on other Motorolas and the problem persists.

    Not only that, but it seems that my Motorola KRZR is having speaker problems. Whenever I receive or make a call, there is a 30 second or so delay until I can hear anything. To remedy this, I have been using speakerphone and that works without problem.

    So I brought my cell phone and the charger (again) to Koodo and they need to take in for repair. I’m stuck with a functional but lower grade loaner phone and an expected waiting time of up to 4 weeks to get my KRZR back. They also require a deposit to borrow the phone and another charge to transfer your phone information, contacts, etc on this loaner. There are no guarantees they can fix it. If anything, they will quote me with the estimated price for damages.

    If they don’t replace or fix the damage for free, I am leaving.

    My biggest complaint with Koodo is their lack of handset selection and slow customer service. Calling their reps is even worse, if you want to get anything settled it’s best to go in person.

    I take very good care of my stuff but this phone can’t even last a year and Koodo can’t replace it right away. What a shame!

    You are paying for cheaper service, so this is the cutback. Be warned.

    Posted on April 20th, 2009 at 8:03 pm

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