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Mar 28, 2008 -- Cell phone industry not making any new fans

People love their cell phones, but hate their cell phone providers. The Better Business Bureau now reports that the cell phone business has received more complaints than any other industry for 3 consecutive years. There are now 22 states with bills in various stages of consideration or adoption all seeking to establish a cell phone users' bill of rights. The response of the cell carriers has been to spend millions to fund lobbyists who are trying to get rules bent in the industry's favor. Why not just fix the bad business model instead? We're not talking about dropped calls here; we're talking about those rotten 2-year contracts. Clark is hard-pressed to find another country in the world that does these contracts.

For the longest time, the cell carriers argued that contracts were necessary because they helped subsidize the cost of cell phones. But this explanation turned out to be bogus; iPhone customers had to pay full market price for their phones, and then they were still forced into a contract! Clark has long thought consumers should be offered the choice to either buy a phone at market value with no carrier strings attached, or sign the 2-year contract with one carrier and get a free phone.

Meanwhile, all of the carriers are in cahoots with crooks. If you're not on an unlimited text messaging plan, they get paid every time you receive an unwanted spam text message. They're also ripping off teens (and their parents) by billing on behalf of third party carriers that offer ring tones and other premium services.

Why is there no movement in Washington, D.C., on the issue of a cell phone users' bill of rights? Simply put, the members of the U.S. House and Senate are in their Capitol Hill bubble. The cell industry is trying to get a preemption law that will make it illegal for any state to pass a rule governing the industry. Sounds like they're taking a cue from the airlines who managed to get New York's air passenger bill of rights overturned!

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What others are saying

  • verizon wireless
    i have had verizon for 5 years now. i had 2 phone lines and wanted to cancel 1 they told me a 110.00 termination fee fine not a prob told me it would be on my next phone bill. Got my next phone bill was higher assumed that it went into affect until i saw i was still being charged for the line. so i called them up and they told me when i switched my plan and phone they erased it out of system and never put it back on. So i asked them so this is my fault and they said yes u still have to pay the early termination fee u never paid it but i said u erased it out of ur system they said im sorry but u never paid it still my fault so i decieded to switch providers there customer service sucks royally i dont recommend anyone to go to verizon!!!!!
  • Bill of Rights
    I've had Verizon for a while now. I've always hated it because it's so expensive, but T-Mobile was worse, so I chose the lesser evil at the time. On the bill of rights idea... I really believe that competition will eventually fix this problem, and that government action isn't necessary. Is there an investor out there who would like to start a cell phone provider company with me, that has its own highly publicized bill of rights and with no contracts or inflexible terms? There's no law against a company giving away value to its customers, is there? That feature alone could overshadow any startup range/service hitches that may present themselves.... why not let's be the first?
  • Verizon a bunch of crooks
    I have been with Verizon for about 6 years now and I always have to disputed some type of charges with them. The last one was I bought a new Voyager phone, but before I bought it I was told that I was to change the calling plan, I asked the CSR on three different occasions what that plan payment change was, what it was going to do to my other lines in my family plan and everytime I was told that nothing was going to change, everything was going to be the same, they will be able to text, get rings everything was going to be the same, no extra charges. I get my first bill after the change and I get charge for everything under the sun, I got charged for every KB that it was used. When I called the CSR department I was told that the charges were correct, because I changed plans I was to be charged for every KB that me or anybody in my family plan used when downloading music or viewing the internet, keep in mind that before the change I did not got charged for any of this. They are a bunch of crooks
  • Am I the only happy customer?
    I have had the Verizon family plan for over 3 years now. I've never had unauthorized charges, never had any service outage, never exceeded our minutes. Twice I had to call Customer Service to activate a new phone (phone in pocket of pants went through washing machine - not recommended). The wait time was short and the service reps were pleasant and helpful.

    Out contract gives us "free" calls to each other and all other Verizon customers. The only limitation there is that my sons can only date girls who also have Verizon. :)
  • Text messaging outrage
    Over the years the cost of wireless service has declined, from around $1 per minute to a nickel or less. Years ago the cost of text was a dime to send and free to receive. Now most carriers have added an evil charge to receive, and hiked the price to 20 or 25 cents. The whole purpose of that pricing is to con you into believing what a deal the "unlimited" option is and thus spend more each month.

    We need that bill of rights because the carriers are ripping us. If you consider how many "text" will fit in the bandwidth needed for a minute of voice, you come to the inescapable conclusion that this is highway robbery of galactic proportions. And that is without any "premium" charges which are even more outrageous. They could make excellent profit at a penny to send and free to receive, so why must we be robbed? All other high-markup (2x, 3x, 4x, etc.) products pale in comparison to text!
  • Not just cell phones !!
    We just got the 2-YEAR "package" and switched from Comcast and AT&T to Verizon where "service-no service" means "wait 20 minutes while we get you screaming at the taped voices.Then, we won't be able to help you when we answer,but will tell you we'll transfer you." Promptly, you are disconnected.Let's try another 20 minute wait !
    They are off to a messy start in the TV cable business too,but are they really a telephone company when they can't hear you now ? You should look into the way they bill for these package deals too. No bill so far has stated the same or the correct amount to pay, and that's after you get through the messy maze of all the little "extra" charges.Balloon charges begin this ordeal.
    Are Verizon's headquarters REALLY in central Bagdad as we suspect ?
  • Easy Solution...
    There are cellphones you can get that don't require contracts and you only pay for a given amount of minutes. Don't text, don't get ringtones.
  • Tell me about it....
    Last week I noticed that I had gone over my 200 text messages per month again and was charged an extra 16.60 (10 cents each) for sent and received messages. When I called AT&T to increase my amount of text messages per month they told me that I was at the maximum unless I bought a plan for 1,500 texts per month! I asked why they had no plan between 200 and 1,500 texts per month and the associate said that she didn't know, but that it was probably the most frequent complaint that they get from customers... Which begs the question, "Then why the heck don't you change it?!" To their credit they did give me a $20 credit toward my account because I was told that my $4.99 per month was for 500 text messages when I bought it, but I have a feeling that I will continue to get these charges tacked onto the end of my account until we get a bill of rights or something.

    Oh, buy the way... I signed another 2 year contract with them about two months ago. Lucky me.
  • Yes, they are bad!
    Cell phone carriers are definitely part of my reasoning when I say "free market and competition don't fix EVERYTHING." I just purchased and iPhone and did have to re-up on my contract (although I had 6 months to go so it was really just another 18 months). But I was lucky enough to find a refurbished phone for $250.

    The text messaging thing is definitely a scam. Either through spammers or childish use, this can run up bills like just plain calling did before. Parents should TURN THIS FEATURE OFF ONLINE or get an unlimited texting plan.

    I would mention that Internet Service Providers aren't exactly the most honest to deal with, either. By now, they should all provide e-mail portability so people aren't tied down just because of an e-mail address (Google, Hotmail, and Yahoo all make money without providing any Internet access). Keep on these folks, Clark!
  • Former customer service rep
    I worked in the cell phone industry as a customer service representative for about a half-year. The company I worked for was very demanding as far as courtesy, professionalism, and competence went. My department serviced AT&T Wireless customers before the Cingular merger.

    Our mandate from AT&T Wireless was to ensure the customer is happy. We were given substantial resources to work with.

    I do recall that at this time all phone models were available with a contract (free or reduced cost) and without a contract (full price.)

    Third-party "rich" text messages were a huge annoyance. Any charges were refunded immediately for first-time victims. We did our best to educate customers how to remove themselves from third-party text messages and avoid such charges in the future.

    Sometimes it does seem as though the ball is always in the court of big business and the little-guy can never win. I don't believe that big business is always actively conspiring against the consumer. Most policies were set to be fair to both parties. Absolutely everyone I worked with, at all levels of management, wanted happy customers.

    My stint doing this job showed me that the failure of big business is inconsistency, left-arm-right-arm syndrome, and inconsiderate bureaucracy. And, "Phone company be damned," you're ultimately at the mercy of the service rep who answered your call.
  • magnoliasouth@gmail.com
    This truly frightens me, the part about the cell industry trying to pass a law making it illegal for states to govern them. I normally don't believe in regulation, but clearly this is needed in this area.

    I love this comment feature!
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