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FCC To Hold Hearings On Early Termination Fees
Isaac-Lew sends word of an article in the Washington Post reporting that on June 12 the FCC will hold a hearing regarding cellphone early termination fees. The Commission may look at early termination fees for TV and Internet service as well. The wireless carriers are taking a Bre'r Rabbit approach toward possible FCC regulation of early termination fees — the FCC's intervention would pre-empt a number of class-action lawsuits going forward against Verizon, Sprint, and others. These suits, stemming from state regulations, could cost the carriers billions. "...the carriers have renewed a lobbying effort in recent weeks to persuade the FCC on a legal definition that would stave off the state lawsuits on cancellation fees. On May 6, 2008, Verizon Wireless chief executive Lowell McAdam and the company's chief lobbyist, Tom Tauke, met with [FCC Chairman] Martin, urging him to adopt a federal policy, according to FCC records."
I have never accepted one of their free/reduced priced phones (I prefer to buy online as well, provider selection + disabling of functionality sucks) but you still get forced into a contract. I see no problem with allowing the early termination fees for people that take advantage of free/reduced price phones, you should not be forced into a contract when you bring your own phone though.
Just because you disagree doesn't make it offtopic or flamebait.
don't like termination fees? don't sign a contract agreeing to pay them if you leave. duh. it's not like you have some inalienable god-given right to a cell phone. hence the contract.
i don't think this should apply to dropping service if the cell carrier isn't holding up their end of the bargain (crappy coverage, non-functioning hardware, refusal to address issues, etc) - then, by all means, the customer should have full right to leave without ANY penalty. but if the customer is leaving because they want the sweet phone on the other network, or just because they feel like it...maybe they should have thought of that before signing.
the united states is a nation of laws; badly written and randomly enforced -- frank zappa
I can't get a "no-phone" plan. I don't get a discount because I supply my own phone! But my "plan" is just out of the penalty fee phase. I can't change the plan without getting into ANOTHER penalty fee phase. (certain features can be added or removed, but there are limits -- and my carrier won't tell me what those are).
If I replace my phone, I get into another penalty period. If I don't... I pay the same amount; but without the penalty period. And that's it.
I want to see a "no-phone" rate...
Yes, I would like to sue the provider.
Just another "Cubible(sic) Joe" 2 17 3061
If it becomes illegal to charge a penalty for early termination, I imagine they'll change the scheme to something like this:
- The "free" phone that is given to you in exchange for signing a 3-year contract, instead becomes a "lease"
- You must give a "deposit" in exchange for the lease. The deposit is equal to the cost of the phone that they would sell it for, should you choose to buy it without a contract
- They'll conveniently offer you an instant loan to cover the cost of the lease. So you don't have to shell out those $300 bucks, you just "owe" them to the company.
- Each time you pay your plan, part of the money is used to cover that deposit loan. If you finish your 3-year contract, the owed amount becomes 0, and you get to keep the phone.
- If you leave early, they charge you the remainder of the loan.
They'll just wrap it all in the same kind of contract you sign without reading anyways, and for most customers it won't be any different in how or how much they pay, compared to the current system. But from the legal perspective, it suddenly becomes a whole new ball game.
Since WHEN were wireless rates affordable?!?
Prices keep going up and up despite more and more customers every single day! Who ever came up with the idea of supply and demand, neglected the ever present... greed. Gas prices anyone!?!
Utilities provide an all but necessary service. Instead of locking customers into multi-year contracts with stiff early cancellations fees, lets see utilities (all subscription based services) retain customers on the VALUE of the products and services they offer.
So you say that I should pay for risks telco takes when I sign contract? Yeaah, that is pretty reasonable. If you are a telco I mean. In every other business it is called BS. Not telling about the fact that nowdays people just roam from network to network. They do not "appear" from thin air. Times of fast grow of telcos are already over. If a customer comes to you - its great. If he/she leaves - probably you are the reason.
Hmm. Let's examine this.
http://www.wireless.att.com/cell-phone-service/go-phones/
AT&T Go phone. No contract.
http://www.t-mobile.com/shop/plans/default.aspx?plancategory=4
T-Mobile. No contract.
http://www.verizonwireless.com/b2c/store/controller?item=prepayItem&action=viewINpulsePlanDetail
Verizon. No contract.
http://www.boostmobile.com/
Boost Mobile (owned by Sprint-Nextel). No Contract.
Did I misunderstand you when you said "none of the competitors offer anything w/out a contract." because that ALL of the (major) competitors, and no contracts. There are literally dozens of options for cell service without a contract.
You could then buy it in a bubble package at Walmart.
Motorola, Samsung, LG, Nokia would have sales reps calling on Walmart, Target and other retailers selling them phones in huge volume to sell us without any bundling, and there would then be significant competition.
What, you can't do that in the US? In Europe we can walk into any supermarket and walk out with a contract free phone 5 minutes later. They're not free but they're fairly cheap - competition keeps the prices down.
One GOOD thing that has happened in the last year, the IPHONE came out.
Previously, you signed up for a longish contract and you got the phone free.
With the iphone, sign up for a longish contract and you pay full price for the phone.
I fail to see why this is a good thing.
Apparently you did that wrong. What I've been told is that I should never talk to the service people at a cell phone company. Instead, always ask to be put straight through to their cancellation department. For whatever reason, they're MUCH more willing to negotiate than the regular service folk.
Personally, I haven't done that. I just can't be bothered. If your front line isn't authorised to make the customer happy, this customer will take his business elsewhere. I don't play games with my business, so if you want to screw me over, well, screw you.
Market forces don't work very well if there is a large disparity is power between the participants (same for the principle of freedom of contract).
At least, not in a lump sum up front.
How many phones does the typical person have in a drawer, locked to some provider they had a falling out from?
This may be the end of locked phones. Pick up a phone that you like, not just what they push this week, and pick up a SIM card from your favorite carrier. This iPhone dilemma of nice phone, carrier sucks would end. Service would improve to reduce churn.
You are no longer forced to buy a new phone to change carriers. Why is this a bad thing? As a trend this way, one of the cell stores has a sidewalk sign board advertising unlocked phones for sale. This may be the beginning of a good thing.
The truth shall set you free!