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Antitrust Pressure Mounts For Wireless Providers
Over the past few weeks, the cellphone industry has been criticized on a variety of subjects, from distracted driving to handset exclusivity deals to everything else that's shady within the industry. Verizon's CEO has now responded, addressing what he claims are "myths" about standard practices. Reader DJRumpy points out that the chairman of the Senate Subcommittee on Antitrust, Competition Policy and Consumer Rights has been calling for an investigation into whether competition is being stifled through many of these practices, "including possible text messaging price fixing and questionable roaming arrangements." Apparently the new antitrust chief is hitting resistance from within the government over the aggressive inquiries into this and other major industries. However, a small victory was achieved the other day when the National Telecommunications and Information Administration "told incumbent carriers that they'll have to prove their cases just like everyone else if they want to challenge broadband grant proposals from smaller players." There is also legislation in the works that would require states to impose a ban on text messaging while driving or lose a significant portion of their federal highway funding.
I use Verizon atm, and I noticed that if you open an account, and get a subsidized phone by signing a 2 year agreement you get whatever the rate is. Why, after two years, when theoretically you have paid for the subsidized phone, doesn't your monthly bill go down. Now if you upgrade the phone after 2 years with a 2year renewal, I can see keeping the price the same. But otherwise, they should be required to tell you how much of what you are paying each month is going to paying for the phone, and drop that cost when the phone is paid for.
Also, if you bring your own phone, you don't get a reduced rate, you just don't have to sign up for 2 years.