The Infuriating Cell Phone Racket

[Hissyspit]

http://www.alternet.org/story/147037/the_infuriating_cell_phone_racket

The Infuriating Cell Phone Racket

May 29, 2010

- snip -

Speaking of Verizon, have you heard about the representative who refused to shut down a dead man's service, even though his daughter produced a death certificate and needed the account closed so settlement of his estate could proceed? Or the rep who tried to collect an overdue $308 bill from customer Al Burrows by threatening to, and I quote, "blow your muthafucking house up"? Do we need to even talk about AT&T's various controversies, from censoring Pearl Jam to allegedly helping the National Security Agency unlawfully monitor the American people's communications?

The telco giants' latest disgrace, according to a recent Federal Communications Commission report, has been given the egregious name of "bill shock" (PDF). Which is a misnomer, actually: it's certainly not shocking to find, as the FCC explains, that "30 million Americans -- or one in six mobile users -- have experienced...a sudden increase in their monthly bill that is not caused by a change in service plan." It's even less alarming to discover that "nearly half of cell phone users who have plans with early termination fees (ETFs) -- and almost two-thirds of home broadband users with ETFs --don’t know the amount of the fees they’re accountable for."

- snip -

It is the kind of obscure legalese the industry is known for. Their contracts are dense with clauses that no self-respecting human should have to wade through, just to place a call or send a text. ETFs are a particularly blatant insult to wireless customers, who can't leave an underperforming carrier (and that's really all of them) without forking over hundreds of hard-earned dollars. In fact, AT&T just nearly doubled its $175 early termination fee to $325 in May. That cold, capitalist logic is built specifically for bottom lines and earnings reports, not for flawless customer service. ETFs are financial shackles to mediocrity, and they're just the start.

- snip -

"We don't have equivalent providers in the marketplace," Consumers Union's wireless, phone and Internet policy analyst Joel Kelsey told AlterNet by phone. "There are tell-tale signs that this is not a competitive market: the ubiquitous existence of early termination fees that have been continually raised; the inability of consumers to bring their smart phone investments with them from carrier to carrier; parallel and consistent price increases in text messaging, despite the fact that the cost to provide that service is declining; the opaque nature of data overage charges. Everything seems randomly tacked on."

Bringing transparency and purpose to that random pricing is a primary objective of the FCC, which seems to have finally come to its senses under the leadership of chairman Julius Genachowski, who was nominated by President Obama and confirmed by Congress in 2009. He's a long way from the national joke that was FCC chairman Michael Powell, son of Colin, who disastrously deregulated the industry while simultaneously levying ridiculous obscenity penalties on networks airing Janet Jackson's breast, Bono's expletives, Howard Stern's show, and even Saving Private Ryan. But the new FCC regime is going to have its hands full bringing AT&T and Verizon to heel, although its task will be helped by the telco titans' continuing insults. But they're not giving up without a fight, especially when they can charge anything for whatever.

MORE

[BrklynLiberal]

1. I heard an editorial on the radio about how disgusting the rates are here compared

to Europe...and how much more they get there for the amount they do pay..

[TheMadMonk]

4. That's because, in Europe, they have one commonly owned network.

At the end of each month they reckon up what each carrier's share of the income and maintenance bill is.

[ThomWV]

16. Just another example of their pinko communist plot to take over the universe

[HOLOS]

47. Thrilled w/ Prepaid Phone!!

Because of Verizon fraud have switched to Tracphone...paid $124.00 +s/h) for 1 year w/ 8oo minutes- plus a double minutes option- no contract, no unending fees-- which is less than i paid
monthly w/ Verizon's constant bill shocks!!

[1monster]

72. I use Virgin Mobile. No contract. I just prepay (usually about $10 per month for me. If I want,

I can option a monthly plan for various amounts of minutes, texting, etc., similar to the big phone companies but without a contract. If I am not happy with the service, I'm not tied to it and I can change the plan back to prepay any time I want with no hassles or extra costs.

[BolivarianHero]

44. I want this for Canada...

Let the government own the infrastructure and let service providers act as wholesalers.

[Hannah Bell]

2. wait, the private sector does everything more efficiently & produces better service!

remember how terrible the government's phone monopoly was?

[Flatulo]

48. Wasn't it AT&T's monopoly? And the Feds spent billions to break it up,

[Dr.Phool]

56. Over the last 20+ years, just like the former Standard Oil companies,

What used to be AT&T is merging back together into one company.

[Hannah Bell]

60. Government-regulated monopoly, cross-subsidized via rate regulation to ensure universal service.

I've not heard that the government spent billions to break it up. What would they have spent billions on?

Bell system though was formally nationalized 1918-1919.

When I was a kid my rural cousins still had a party line.

[1monster]

73. Not only was an incredible amount of money spent breaking up Bell Telephone Company, but years, too.

Ma Bell was split up into what were called Baby Bells.

In my opinion, the break up was a mistake. Government kept a close eye on rates and services back when Bell Tel was the sole provider. If your phone stopped working, a service person was on it the same day and it didn't matter if the problem was in the wiring in your home or if it was outside. There was never an extra charge for the service.

Now, if you have a problem, the wait time for a repair is usually at least a week. And you either pay monthly for a "service plan" or you pay for a service call if the problem ends up being in your house. The last time I had a service call, I was told the minimum charge was $85.00. But that was more than ten years ago; I'm sure the charge has gone up.

The old Ma Bell took care of its customers and were VERY polite as well. It also took care of its employees.

Ah, but you don't see much of that any more in any company.

[Hannah Bell]

77. so i'm asking what that money was spent on. & i certainly agree with you about

customer service, repairs, etc; head & tails above what it is today. it's amazing how things have changed in that regard.

[1monster]

82. Legal fees and lawyer costs......This case went on for forever.

[DesertFlower]

80. i worked for new york telephone as a temp

from '79 till '88 in the legal department. all rate increases had to be approved by the Public Service Commission. the briefs were anywhere from 500 pages to 800 pages.

i could have joined the company but i was making more as a temp and had hubby's benefits. they were a great company to work for back then.

Ma Bell was a good mother.

[pundaint]

59. We never had a government phone monopoly, we had Bell. We can thank John McCain, senator (QWEST)

for his leadership in revolutionizing our phone charging system.

[Hannah Bell]

61. government-regulated monopoly. gov't set rates, service & profit cap.

[leftyladyfrommo]

3. I just ead that people are switching to prepaid services by the millions

I'm going to check into that as soon as my contract runs out. I guess it is a lot cheaper.

[Donnachaidh]

5. it most definitely IS cheaper

MetroPCS offers unlimited text, talk and web for $50 per month. NO contract. And at least one other offers the same. We've had prepaid for a couple of years.

[leftyladyfrommo]

6. Can I keep my phone numbers?

I use my numbers for business. I need to keep them.

[conscious evolution]

7. yes

[ThomWV]

17. That is about twice what I pay

[Donnachaidh]

42. on a contract? n/t

[LeftyMom]

46. Yeah, but their coverage area blows.

I switched away from them when I got in a car accident on I-5 on the north edge of Fresno and my phone didn't work. If a cell phone won't allow you to call for help in an emergency, it's not a good deal at any price.

[Donnachaidh]

67. they don't have emergency 911 calls in your area?

I agree -- that blows!

We have net10, which has that. And is far cheaper, because we only use it for phone calls.

[LeftyMom]

70. I was able to call 911, but not the tow company or a friend to come get me.

Luckily a witness to the accident let me use her phone, I'd have been SOL if she hadn't stopped.

[1monster]

74. Virgin Mobile's coverage is the same as Sprint. I've had no problem in areas where

my husband's AT&T cell has very poor to no coverage.

The biggest problem I've had is in concret and steel buildings. But then, I had that problem with AT&T and Bell South's (can't remember the name they went by, but logo had a little man in it--AT&T took it over) too...

[nickinSTL]

64. unfortunately, there's no MetroPCS in my area

I'm still on a contract for another year, so maybe by then...

Of course, $50/mo. per phone would be more than I pay now, but...I also have to pay extra for any text or web I use now, so...might be worth it.

[Donnachaidh]

66. IIRC Metro was offering 4 lines for $75 per month

The deals change every month, so it's hard to keep up.

We have Net10, because we only use cells for emergencies. And Net10 is offering better phones now, so the low cost actually is a treat. We generally buy a $30 card every six or seven weeks, so we're paying under 30 a month.

I was going to switch to Metro but at the time I just didn't want to spend the money on start up, etc. Net10 is cheaper in that respect too. You buy the phone, which usually has minutes with the phone purchase, contact them to get started and you're in. NO FEES.

I personally think if people keep walking away from these contract phones the phone companies are going to have to start offering reasonable programs. And reasonable prices on phones. NO way is an iphone or Blackberry worth several HUNDRED dollars fer criminey's sake.

[TheDebbieDee]

9. I've been with Tracfone for 3 years..........

And while activating the phone can be a pain, Tracfone is a breeze.......as long as you don't need any detailed call records or phone repairs or customer service, for that matter.

I'm on the phone about 4 hours or 240 minutes a month (I don't talk much) and with a "double minutes for life card" it costs me about $32 a month.

[Betty88]

13. I love my Tracfone

If you are like me and don't use it much they are the way to go. I have it just in case I'm out and need to make a quick call or away for a few days. It works out to be about $10 a month.

[SpiralHawk]

15. Me, too. I don't love Tracphone. But I do welcome the reasonable bill

I pay maybe $30 a month, or less -- and of course I don't have to pay anything at all if I am not making calls. It's my only phone -- and while it ain't fancy, it works just fine.

Nice not having a big fat monthly bill that you absolutely must pay.

[Dr.Phool]

10. I would never consider walking into a Walmart until I read about Straight Talk.

A guy on one of my economic blogs was talking about them. It's a joint venture between Walmart and Tracfone.

They have inexpensive, quality phones such as LG, Samsung, and Motorola. There's no contract. It's $30 per month for 1000 minutes, 1000 texts, and 30mb data. $45 per month for unlimited. And, they operate on the Verizon network, so you have excellent coverage.

You can keep your phone number, which Alltel-Verizon wouldn't let me do when I switched to pre paid.

Their customer service leaves a bit to be desired, but you can eventually work around that.

we've had them for 6 months, and I can't complain about anything.

[underpants]

11. Damn I just re-up'ed with Verizon

I have to say that Verizon isn't that bad. I am going to have a phone and they do okay. I think my wife and I pay $80 a month for two phones. :shrug:


Their conversion between phones could be better but hey, they at least they aren't Comcast.....which SUCKS

[Smarmie Doofus]

19. That's what I thought. Wait til you get stung:

http://verizonpathetic.com/pain20.html


And keep Verizon away from your kids if you have any.

[AnArmyVeteran]

30. You can cancel most contracts within 3 business days if you're in the right state.

You might still be able to cancel. You are guaranteed by law in my state to nullify any contract within 3 business days. And a lot of corporations will allow you to cancel within certain periods of time. Because this is a long weekend and you just renewed Thur or Friday you might be able to cancel on Tuesday. Good luck...

[goclark]

81. My experience exactly nt

[Ratty]

29. I LOVE my prepaid phone - $100 per year

I pay $100 every year which comes out to about 8 dollars a month average. I can't remember what the rate per minute is but for me it was a good deal. I got it with all sorts of bonus deals that gave me something like a thousand extra minutes. IIRC I started out with over 2000 minutes and I think I figured out it was around 3 hours of talk time per month. I also have a land line so the cell isn't my only phone. I don't use it a lot but I've never been concerned about the minutes I use - I talk when I want and for how long I want - and I still manage to have minutes left over which I can roll over to the next year. No draconian contract, early termination penalty, or surprise fees. I love it. I even bought a new phone and managed to transfer over my old number and unused minutes.

The one sucky thing about it is you can't get the latest and snazziest phones. I'd love a new smart phone but they really don't come with good prepaid versions yet. I might see if it's possible to get an unlocked smart phone and see if that can be used with a prepaid plan but I don't know a lot about that kind of stuff.

[flamingdem]

37. What plan are you with? Sounds like a good deal. nt

[Ratty]

39. AT&T GoPhone

They have lots of confusing "plans" online but definitely look around for the double the amount of minutes deals. That's what really makes it worth it.

[Dr.Phool]

57. Check out CompUSA.com.

Lot's of unlocked phones.

[Angry Dragon]

32. I use Net10

[tblue37]

54. That's what I use--Net10. nt

[Individualist]

33. Tracfone has worked well for me

I've had it for about five years.

[gristy]

41. yup. after not owning a cell phone for several years, I bought a phone and 200 minutes

Very reasonable cost, though I forget how much.

[Codeine]

50. Do they have smartphones

or just standard cellphones?

[XemaSab]

58. It's MUCH cheaper

You know exactly how many minutes you have left, and you don't get dinged for going over your minutes.

Seriously, if I look at the phone and I am almost out of minutes, I buy more for $30. :P

[Smarmie Doofus]

8. "The Infuriating Cell Phone Racket Microcosm"; it *should* read.

The deranged system we've permitted to grow up around us........ writ small.

[pipoman]

12. Yeah, this is just the tip of the iceburg

how about the nonstop cord changes which insures that you can't use your $30 car charger on your new phone of the same brand....this is not to mention all of the other non transferable accessories.

And what about $500 phone that can't even withstand a few drops of water from rain exposure, let alone the inevitable dip in the toilet? It seems to me that it would be a simple matter to seal up a phone...actually I think makers intentionally place holes in the case and create circuitry which is designed to fail with the least amount of moisture.

I think if there is going to be legislation for regulation of cell company fees, there should also be legislation to regulate manufacturers of phones with MSRP prices over say, $100. Because actually, it is the water issue which most often keeps people tied into these contracts. Your phone goes for a dive, no problem if you have had it a year they will give you a new one for 1/2 price in exchange for a new 2 year 'commitment'.

[woo me with science]

22. The inevitable dip in the toilet?

I wasn't aware of that....

(I think I'll stop borrowing other people's phones...)

:rofl:

[pipoman]

23. No worries

the dip in the toilet ruins the phone every time resulting in a $50 activation fee, a $100+ new phone fee, $30 car charger, $30 carrying case, and a new 2 year contract with a $300 bailout provision..no chance of any toilet contamination....OTOH seeing where and how some people tote their phone may be reason enough to avoid borrowing other people's phones..;)

[pipi_k]

24. No shit...

pun not intended.... :7


But anyway, if someone has dropped a cellphone into the toilet at least once, I would think he would opt to keep it secure in a phone case maybe attached to a belt loop and use a Bluetooth device while sitting on the bowl. If that falls in, oh well...at least the phone still works.

[Codeine]

49. Who the heck drops their phone in the toilet?!

I've dropped mine on the floor, and once off a balcony (and it survived!), but never in the john.

[pipoman]

53. I really was saying that more as an example.

Who hasn't ruined a phone with water damage in one form or another? I have carried a phone every day for the last 17 years...I have had to replace a few phones for a variety of reasons.

The real issues are the ever evolving power charging cord and not even the slightest bit of water resistance....why isn't there a standard charging plug, like say a US standard wall receptacle, or standard cords with multiple other electronic devices? Why do I have to buy a new $30 cord every time I buy a new phone? Even if I buy the same manufacturer...seems to be bordering on an antitrust issue??

edit...I do find it a little funny that you admit to dropping your phone on several occasions yet find it unbelievable or even odd that anyone would accidentally drop their phone into the toilet...off the belt, out of a pocket, slips out of hand..hardly unusual in the whole scheme of things I wouldn't think..

[Codeine]

71. Everybody brought up the pants pocket thing

which for some reason never even occurred to me. I had this image of people taking a leak - or worse - while chatting on the cell phone, which is a bit gross, really.

The falling-out-of-the-pants thing makes much more sense.

:dunce:

[TheDebbieDee]

55. Just last October, my Tracfone fell out of my pocket

and into the toilet as I was getting up. It happens.

[Jamastiene]

69. I almost did once.

I won't go into details, but it was in my pocket. I wear cargo pants. Do the math. It almost fell in, but luckily, I grabbed it before it even hit the seat. The worst part was that it was clipped into my pocket. It just worked its way loose. Next thing you know, I was doing the "Hey! That's not yours, Toilet! Unass my cell phone" dance.

[KharmaTrain]

14. Been There Done That...

This was several years back...my late parents had a contract with Verizon. When they passed away, using my power of attorney, I notified them that both had passed and that I was cancelling their service. They then sent me a note saying that I still had to honor their contract, of which I called...went through endless layers of beauracracy until I got to a "Vice President" and reminded him that the people who signed that contract were deceased...if they wanted to get "payment" for services not rendered to dead people, go right ahead...that I'd gladly notify local newspapers and pass the word to other Verizon customers. That still wasn't good enough. Finally took a letter from my attorney telling them that if they wanted to collect they'd have to contest the estate...costing them thousands in attorney hours. They finally decided to cancel the contract.

[JCMach1]

18. If only the US would catch-up to the rest of the world with pay as you go unlocked phones

[Phentex]

20. I'm still amazed what the companies can get away with!

They will need reform just like the credit card companies. The hidden fees, the contract abuse and my largest complaint: they prey on the elderly! It's disgusting.

[stillwaiting]

40. "Freedom" to right wingers means ECONOMIC freedom for the corporations to do whatever they want.

This ultimately means that the average citizens is "free" to reap the "benefits" of such a system.

Working class, middle class, and poor voters that support right wing Republican (and many Democratic) politicians enable this "freedom".

Every time Dubya said "freedom" he had the most ridiculous smirk on his face. It's sad how many of our fellow citizens are truly brainwashed by the elite's propaganda (which clearly isn't "liberal" in any way, shape, or form).

[IDemo]

21. Another vote for Tracfone

It would be nuts for us to pay for a plan with the few calls we make or receive monthly.

[MadHound]

25. Another good reason not to have a cell phone.

Not only are you paying for your own personal tracking device, but you're being screwed over in the process.

[leftyladyfrommo]

45. Too true!

I need one for business but I sure wish I didn't. I hate the stupid things.

[pipi_k]

26. I had Tracfone for a number of years until

they started doing stupid things with my billing.

I chose to have my credit card billed automatically each month, at least a week before the renewal date.

Well, we don't use very many minutes here because we don't get cell service at the house, but we want the cellphones for when we travel. So I would only add minutes every six months or so. I added minutes to both phones one time, and the "renewal" on them ended up changing to a few days before my credit card would have been billed. So one phone got shut off when it wasn't supposed to be, just by chance it was Mr Pip's phone while he was out. I called Tracfone and got that straightened out.

Then they did the same to my phone. Shut it off because the renewal date came before the actual billing date. Called and had it straightened out.

The aggravating thing was having to sit on hold for 45 minutes for each call, being transferred from this one to that one, and then the call got lost and I had to call back again and go through the whole thing all over again. Really shitty customer service.

So I went with Verizon. That was about four years ago.

No complaints. Decent coverage, even where I live, which is pretty rugged terrain. I can't get a signal in the kitchen, but if I go upstairs I can get a couple of bars. That was not possible with Tracfone. If we wanted service, we had to leave the house and drive to the top of the hill.

Don't like the $80 monthly charge for two lines for 700+ minutes (we barely use 20 minutes per month) but we found out that we're eligible for a Senior plan, which we'll get in October when the contract runs out.

I may even try out the Straight Talk plan with an extra phone in the meantime and perhaps not renew with Verizon. My daughter has it and loves it. If we can get minimal coverage here at the house, it might be worth switching.

[Dr.Phool]

27. With Straight Talk, you're basically getting Verizon's best plan for 1/3 the cost.

I got it for me and my wife, then my father. Just make sure you keep your numbers on the Do Not Call list.

[pipi_k]

35. Thanks for the info...

I'm definitely considering this as an option.

:)

[Dr.Phool]

28. Kick & Rec!

[GaYellowDawg]

31. Verizon treated us very well

Last month, my dad died, and my mom had to make and receive a lot of calls during the last two weeks from both a nursing home and the hospital. The bill was huge. I called Verizon on my mom's behalf and explained what happened, and they took every penny of extra call charges off the bill. I had hoped for a $50 reduction or something like that, and they ended up taking almost $130 off the bill. Frankly, I was astounded. Verizon made customers for life out of my family.

[Posteritatis]

34. And the Canadian cell market is struggling to actually be worse. Ugh. (nt)

[stlsaxman]

36. Skype on iPod Touch. With Wifi at home and work...

$60.00 a YEAR for a phone number anyone on the planet can call with voicemail service if i'm not online to pick up.

$0.02 a minute average calls out to any regular phone- skype numbers talk for free. I have a "auto-refill" for paid calls out that tops $10.00 into my service one it dips below $2.00... refilled about three times so far this year- so let's say it's $60.00 a yer for calls.

$120.00 a year ain't bad, folks.

I do own 2 cell phones without service- one for my car and one for my house. These are for dialing 911 only. Skype cannot call 911.

[Swamp Rat]

38. k&r

[Duppers]

43. CREDO

a democratic, progressive company.

[Codeine]

51. With an antediluvian text plan.

Very 1998.

[Touchdown]

75. CREDO can't be either when they aren't union, and refuse to unionize...

or even use a union built wireless network. CREDO is not progressive in the least. They re-sell Sprint, which is vehemently anti-union, and they also spied for Bushco.

[Duppers]

78. Thanks, guys. I had no idea

Live and learn. I just believed their crap about donating to dems.


:(

[Poiuyt]

52. What bothers me is that you can only use certain phones with certain plans

Why should that matter? With landline, I can use any phone, at any location, and with any provider. I use Tracfone, which I like, but they only offer a very small selection of phones that I can use. I would love to be able to use an iPhone with Tracfone.

[geckosfeet]

62. Just ordered an Evo. Soon to be moving to Sprint.

In order to buy the phone, you must buy a 4g plan. Never mind that 4g is not up in my area (or most of the country) yet. And when start installing 4g here, they plan building/upgrading 1 tower that will certainly be out of my range.

[yourout]

63. Verizon is a mafia racket wrapped in Articles of Incorporation.

Years ago before nationwide plans we had US Cellular and went to Verizon for two years due to availability of nationwide plans.

Huge mistake...lousy coverage, constant billing screw ups, and they tried to hit us for $750.00 in early termination fees.

Back to US Cell and things are great.

[SnakeEyes]

65. Some misconceptions..

AT&T ETF doubled to $325 for smartphones not all phones. ETFs exist because they are subsidizing the cost of your phone. If you don't like the ETFs then get ready to pay full price for your phones like they do in Europe. That big price initial price drop on the iPhone was because AT&T began subsidizing the phone. The reason the ETF for smartphones was increased is because they've been seeing too many ETFs on these expensive phones early in the customer's contract and so they were not recouping the subsidy. Also, with few exceptions you can take your phone to other carriers. iPhone is obviously one exception. Also there is the technical issue with some phones/providers being CDMA and others being GSM.

[Jamastiene]

68. I constantly long for a camera attachment for my old cell phone, but

the more I see of what people go through with contracts with major cell phone companies, the happier I am to be a Pay As You Go customer.

No contract is involved with Pay As You Go and assuming you renew the cards before the last ones expire, your minutes roll over. It's as simple as that. They can't and don't charge you if you just quit.

You have the option to surf the net or send text messages if you want, and you pay for those services from your Pay As You Go minutes as you use them. I rarely use texting, so it is perfect for me.

I don't know why more people didn't go for that idea instead of the contracts and the hassle of having an account, per se.

I guess not everyone has my attitude against being bound by out of control companies. It was hard enough to switch my land-line phone from AT&T to TWC. TWC made the switch for me when I asked and it has been good service. That part was taken care of, but AT&T still tried to bill me for several months after. I had to fight AT&T tooth and nail to get away and quit getting billed for services they were no longer providing. It was a nightmare.

I've had much better success with the Pay As You Go cards.

[DimplesinMI]

76. There are SO MANY Prepaid ways to beat this now

Metro PCS, Cricket and Revol for regional pre-paid carriers. Simple Mobile, Page Plus, Boost, PlatinumTel and Airvoice for national pre-paid carriers. I sell the national pre-paid carriers and more people are turning to them daily....trust me.

Either the regional or national Pre-Paid carriers offer no contract, no ETF's fees and Unlimited Talk and Texting for under $60.00 a month (as low as $30.00 a month with some carriers). People need to stop running for the next Cellular gimmick (Ahh....4G, 3G, Droid and the like) and realize the main function of a phone is talking, somewhat texting and maybe a little internet. The rest of the World Web Web, should be accessed off the comfort of your computer, at home.

[DesertFlower]

79. my phone was discounted by hubby's employer.

it was Alltel which is now verizon. then they switched to sprint. i went to sprint and the best deal they could give me was almost $50 a month. they told me verizon would charge me more. i stayed with verizon and my bill went down a $1.00. i just have basic service. costs me $22 a month.