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

[David Farber <dave () farber net>]

Begin forwarded message:

From: Tom Goltz <tgoltz () QuietSoftware com>
Date: October 10, 2005 11:42:29 PM EDT
To: Gerry Faulhaber <gerry-faulhaber () mchsi com>
Cc: dave () farber net
Subject: Re: [IP] more on Locked In a Cell: How Cell Phone Early  
Termination Fees Hurt Consumers


At 10:47 AM 10/10/2005, you wrote:

> Re: cell phone contracts.  I think the way this works is that you can
> get a cellphone at a below-market price from your service provider in
> return for a one- or two-year contract, OR you can buy your phone
> elsewhere and get the service without a contract (or maybe a contract
> of shorter duration).  So this is a trade-off, you get a price break
> on your instrument in return for a longer contract.  But you don't
> have to take this; you can still avoid the lengthy contract by buying
> your own phone at a market price.

My experience has been the exact opposite of what you describe.  I  
have approached several different carriers with existing phones that  
were compatible with their networks.  Verizon flatly refused to give  
me service without my signing *exactly* the same 1-year contract that  
I'd have to sign to obtain a discounted phone.  Ditto for Cingular  
and T-Mobile.  Only Sprint is willing to provide service on a month- 
to-month basis to new customers who either already have a phone or  
pay full price for the phone.

If the cell phone companies are doing such a wonderful job for their  
customers, why are over 50% of the complaints received by the Better  
Business Bureau cellular related?  If you stop ten random people on  
the street and ask them how they like their cellular service, why  
will five of them tell you that they'd switch carriers if they  
weren't locked into a contract?

Personally, I believe that all of us would be better off as consumers  
if it was illegal for telecommunications companies to require long- 
term contracts for services.




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