The root problem here is that the phone companies give you a phone for little money up front and then have you pay for it in installments hidden in the monthly service contract. If they would make you pay full price for the phone and then charge less for the service then they could let you out of the contract. They would not even have to change what you pay. Just fix the bill so that repayment of the loan for the phone is called out on a different line then air time. Then you could choose to cancel only the airtime or pay the loan off early.
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AT&T (and Verizon) Loosens Cell Contract Restricitons
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The root problem here is that the phone companies give you a phone for little money up front and then have you pay for it in installments hidden in the monthly service contract. If they would make you pay full price for the phone and then charge less for the service then they could let you out of the contract. They would not even have to change what you pay. Just fix the bill so that repayment of the loan for the phone is called out on a different line then air time. Then you could choose to cancel only the airtime or pay the loan off early.
At&t needs govt regulation
They only get reasonable when the govt (soon to be "Democratic" in
nature) decides to step in.
So much for the marketplace policing itself.
They only get reasonable when the govt (soon to be "Democratic" in
nature) decides to step in.
So much for the marketplace policing itself.
Which is why I love the commercial that ypes visual voicemail. Its an appropriate kick in the crotch to all hacker unlockers.
Most congressmen do not hold office long enough to even know what life is like inside the belt way.
An analogous phrase for "Congress decides to ponder," is "Congressmen consult paymasters."
I can understand contracts when you are getting a discount for a phone because the phone company is going to have to make up for the money they spent to give you the phone. On the other hand, I think that it is asinine to have to get a two-year control when you buy a phone out right. In my case though, I was already in a contract and I was happy that in order to get the iphone I didn't have to pay the fee to cancel my current contract, and since I plan to use this phone for atleast another year or so I am not worried about having the new two-year contract. The only thing that gets on my nerves is the way it is now I imagine that I would have to get yet another two-year contract if in another year I decided to go ahead and lay the cash down for whatever current iPhone is on the market at the time.
But the companies buy the rights to those airwaves, thus in a way, taking ownership. Just look at what's going on with all that 700 MHz spectrum now. Companies are ready to put up billions just to have the rights to these airwaves.
With Cingular I've changed my rate plan many times without extending my contract or paying any fee. My rate plan also was not extended when I bought my iPhone.
The only illegal act is by us the consumer, we give away the $$$ that these corporations then funnel into Washington to Lobby the FCC.
RIDICULOUS contracts...
Close, but not quite. American's don't own the airwaves - the US Government does. You're right - the FCC is in charge of regulating the airwaves, and they have. They have licensed portions of the bands for various uses... hams have several bands, for example. The FCC controls who is licensed to use the ham bands. If you pass the tests, you can use the bands. You could buy a radio, but you couldn't blast out Kid Charlemagne (although, I wouldn't complain if you did - great tune). That's because the FCC has rules and regulations governing the ham bands. That particular rule says that you can't monopolize a frequency... and blasting out music is "monopolizing".
HOWEVER, the FCC also licenses the commercial radio bands... and that band doesn't have the monopolize rule... in fact, it's expected
The FCC also licenses the cell bands to cell service provider, and they have their own set of rules. BUT... the rules cover use of the bands, not business matters. The FCC isn't going to say you can't have a contract with your customers. In fact, even if you were on a month to month plan, or pay as you go, you have SOME sort of contract.
The issue here is how do they get away with such ridiculous contracts. And the answer? Because we, the consumer, LET THEM. If we refused to sign the contracts, they'd change them. It's going to take a significant legal challenge to get them to drop the 2 year contract nonsense. And of course, as others have said, they have a strong lobby in Washington!
Close, but not quite. American's don't own the airwaves - the US Government does. You're right - the FCC is in charge of regulating the airwaves, and they have. They have licensed portions of the bands for various uses... hams have several bands, for example. The FCC controls who is licensed to use the ham bands. If you pass the tests, you can use the bands. You could buy a radio, but you couldn't blast out Kid Charlemagne (although, I wouldn't complain if you did - great tune). That's because the FCC has rules and regulations governing the ham bands. That particular rule says that you can't monopolize a frequency... and blasting out music is "monopolizing".
HOWEVER, the FCC also licenses the commercial radio bands... and that band doesn't have the monopolize rule... in fact, it's expected
The FCC also licenses the cell bands to cell service provider, and they have their own set of rules. BUT... the rules cover use of the bands, not business matters. The FCC isn't going to say you can't have a contract with your customers. In fact, even if you were on a month to month plan, or pay as you go, you have SOME sort of contract.
The issue here is how do they get away with such ridiculous contracts. And the answer? Because we, the consumer, LET THEM. If we refused to sign the contracts, they'd change them. It's going to take a significant legal challenge to get them to drop the 2 year contract nonsense. And of course, as others have said, they have a strong lobby in Washington!
Here in Canada, we have a ridiculous system, on TELUS at least. I would be happy to pay $175 to get out of my contract. Let's say you were just out of your 14 day eval period. You hated the service but you were busy and it slipped your mind. Damn! Let's go in to the Calc and figure this out!
Holy. Crap. $720 to cancel. What? TELUS uses a money grabbing system to scare you in to staying with them. 20 dollars for each month left in your contract. Once it hits $100, it stays that way. 5 months or 1 left in your contract, you still have to pay $100. To make you want a 3 year contract, they put AWFUL prices on phones with 2 or 1 year contracts. Cheapo Samsung on a 2 year contract is like 100-150 dollars. Awful!
Holy. Crap. $720 to cancel. What? TELUS uses a money grabbing system to scare you in to staying with them. 20 dollars for each month left in your contract. Once it hits $100, it stays that way. 5 months or 1 left in your contract, you still have to pay $100. To make you want a 3 year contract, they put AWFUL prices on phones with 2 or 1 year contracts. Cheapo Samsung on a 2 year contract is like 100-150 dollars. Awful!
That is the only thing keeping me at Verizon right now. I have 4 phones on my contract. Luckily it ends in April.
That's why I continue to play the waiting game. My contract is up Dec. 12th so I have to continue to suffer with a RAZR that barely works until then.
I had the same runaround from Verizon when I called and asked about their prorating policy. The woman said that it only applied to those who'd originally signed a contract after January 1 of the previous year. So that I had to wait till my contract was up before I switched for my iPhone.
Yeah, I've had enough with Verizon. I just canceled my home internet and phone account with them (planning on moving and getting a cable modem). My girlfriend and I are just going to use our cell phones.
Right now I have a Razor with Verizon, but I'm thinking of eating the $175 early termination fee next week and picking up an iPhone with AT&T.
Right now I have a Razor with Verizon, but I'm thinking of eating the $175 early termination fee next week and picking up an iPhone with AT&T.