Fido will charge new customers $5 a month for once-free hotspot usage

Rogers-owned Fido made a move to raise bills on new customers by adding a new $5 fee for using the once-free mobile hotspot feature.

Source: Rawpixel

Rogers-owned Fido made a move to raise bills on new customers by adding a new $5 fee for using the once-free mobile hotspot feature.

The carrier has quietly overhauled its mobile data plans to remove hotspot access by default, replacing it with a paid add-on for new subscribers.

The change, which affects all new customers, means users will now have to pay an additional $5 per month just to tether their phone’s data to a laptop or tablet, a feature that’s long been standard across most Canadian carriers.

This change doesn’t apply to existing Fido customers, who can continue using their hotspot normally.

But for new sign-ups, the carrier has turned a basic utility into a new revenue stream.

The main plan being promoted 60 GB for $44/month (after a $10 autopay discount) — now requires that $5 top-up to enable tethering, bringing the actual cost to $49/month for full functionality.

Making matters worse, Fido quietly raised its in-store connection fees from $70 to $75 earlier this year unless customers activate service online.

This is in-line with Fido store closures in Canada, in an apparent attempt to encourage customers to shop with the company online as they reduce their retail costs.

Fido has offered additional ‘perks’ with the 60 GB and 80 GB plans, which now offer 500 and 1,000 international text messages, and 3% cash back when paying with a Rogers Red credit card.

Competitors haven’t yet followed Rogers’ lead, Koodo and Virgin Plus both continue to offer free hotspot use across their plan lineups.

Fido’s parent company Rogers faces billions in debt especially after inking a renewed $11 billion 12 year rights deal with the NHL, which could be linked to the increase of fees for services with its networks.