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more on Locked In a Cell: How Cell Phone Early Termination Fees Hurt Consumers


From: David Farber <dave () farber net>
Date: Tue, 11 Oct 2005 07:41:37 -0400



Begin forwarded message:

From: Sam Weiler <weiler () watson org>
Date: October 11, 2005 4:08:04 AM EDT
To: David Farber <dave () farber net>
Cc: Ip Ip <ip () v2 listbox com>
Subject: Re: [IP] more on Locked In a Cell: How Cell Phone Early Termination Fees Hurt Consumers


[My experience with Cell Companies is not what Gerry describes. I always supply the phone since I am not happy with the cell phones sold in the USA. Yet I am tied up with 1 or 2 year contracts with $175 cancellation agreements. Why?? djf]



Could we hear from an IPer who is either with Verizon Wireless/ Cingular/Sprint or who has direct experience with real world data? Are there differences across carriers? (Normally, if there's an anticompetitive practice going on, I would expect this to become a dimension of competition)

Gerry


In my personal experience, none of Verizon/Cingular/AT&T(when it was separate) will offer month-to-month terms (in the US), even if you're bringing your own hardware. Sprint will, but they now charge an extra $10/mo., even when they aren't buying down an handset.

Even more curiously, Verizon refuses to activate a handset they did not originally sell, even though most of Sprint's would be compatible with their network. (Most CDMA handsets are locked to the carrier. Even if you have the appropriate unlock code for a Sprint phone, Verizon still refuses to activate it.)

To be clear, all of these carriers have explicitly refused my personal request for a month-to-month service plan when I walked in with my own (unlocked) hardware. In a competitive market, I would expect to see either month-to-month terms or lower rates available when there's no handset subsidy.

-- Sam


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