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07/28/2010

Best time to buy a cellphone? Might be now

Contract-free plans, legal action, $1 hotdogs.

Such are the weapons Canadian wireless carriers are using right now as competition for subscribers gets as fierce as ever – and consumers are the ones to win, making now one of the best times to get a new cellphone.

Phones_geektown For several months fresh entrants such as Mobilicity, Public Mobile and Wind have been vying for new customers, and to take market share from the big guys: Bell, Rogers and Telus.

And as we get into the back-to-school season, all wireless carriers are trying harder for your dollars than Conrad Black is trying to leave the U.S.

Today things got more heated – Rogers launched Chatr, a new brand brandishing contract-free unlimited talk and text plans to compete with the other new entrants.

The press release I got announcing Chatr contained no mentions of Rogers, which also owns Fido. Maybe that’s because Mobilicity is going to take Rogers to court, alleging the carrier is now breaking the Competition Act.

Who needs lawyers when you have hot dogs. Across the street from a Rogers store at Toronto’s bustling Yonge-Dundas Square, Wind Mobile sold $1 hot dogs to celebrate Rogers’ move to compete with the competition. But are we all going to flock to contract-free mobile service?

It remains to be seen. As one consultant wrote in the Globe and Mail, there’s research that shows consumers don’t like contracts – but that doesn’t mean they’ll switch carriers to avoid a multi-year term.

It’s like saying “I’m going to quit smoking” or “I’m going to lose weight” at New Years. When it comes time to make that decision, you take the easy way out. Next thing you know, you need a reason to step out of the office and wind up taking a drag. You drive by the gym on the way home and order take-out.

You lock in for three years instead of paying $400 up front.

Would you lock into a contract or buy a handset up front? A contract-free 32GB iPhone4 costs only $779.

- Maurice Cacho, MSN Tech & Gadgets

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Danny BradburyDanny Bradbury

Danny Bradbury is a technology journalist with 20 years' experience. He writes regularly for publications including the Guardian, the Financial Times, the Financial Post, and Backbone magazine. Danny also writes and directs documentaries.

Maurice CachoMaurice Cacho

Maurice Cacho is a Toronto-based journalist mixing his love for tech with a passion for news. He's also CP24's Web Journalist and appears daily on CP24 Breakfast and weekly on the channel's tech show, Webnation, discussing tech news and trends.

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