What do you do when your cell phone company changes its prices in the middle of your two year contract? If you terminate your contract, you will be charged and you cannot simply say "no" to the changes. Some companies promise fixed rates while the contract lasts; however, in many countries in the world, companies have a policy of "prices are subject to change". The reason why a cell phone company would decide to raise prices is in the hope to make a bigger profit - you either pay the high price or you pay the charge to cancel. However, this is where they go wrong.
Not providing customers with certainty shows poor marketing skills. If consumers are too worried that they will have to pay more than they are willing to, they will stick to the most basic plans, purchase fewer applications, or find a different way of communication. These are some of the reasons that have influenced Canadian cell phone companies to change their cell phone policies. They do this by giving customers the opportunity to cancel their contract early without a charge due to changes in the contract, or they can reject the changes outright.
Another problem with cell phone contracts that Canadian companies want to solve is the fact that many customers do not understand their contracts very well. Most customers have experienced problems with their cell phone companies and many of these could have been avoided if the contract was written in a more clear and concise way.
If Canadian cell phone companies stick to these new changes, they will see an increase in profits due to the fact that customers will feel safer and will be less skeptical when purchasing different plans and applications. If they succeed, we could hopefully see other countries around the world follow suit.