No Changes in Sprint ETF Policy

Verizon Wireless recently announced its decision to increase the early termination fee or ETF for its premier or advanced devices. Starting the 15th of November, the ETF for Verizon's high-end products will be $350 declines by $10 per month through the life of the contract.

I was wondering how other major carrier's will react to this change in major wireless contract policy. Well, so far only Sprint has issued a statement via Twitter:

One more tweet on ETF policy. We won't be following suit as other carriers increase fees. Official Sprint ETF policy

Sprint is Verizon's main competitor among CDMA wireless networks. Maybe the Now Networks is trying to gain an advantage by not emulating the ETF increase instituted by its rival. Well, they probably need all the help they can get as they are planning to cut costs by cutting jobs.

It will be interesting to see how this plays out. Some experts think that this shift in wireless contract fees will lead people to purchase devices for its full price to avoid any trouble with the ETF. However, the full price is quite heavy and with the weight of the recession, consumers may go for mid range devices which charges the normal $175 early termination fee.

That's it for this post. Tune in to this blog for more news and info on the wireless contract issues.

Confirmed: Veirzon to Raise ETF to $350 on Premiere Devices

A couple of days ago I blogged a rumor claiming that Verizon Wireless might raise its early termination fees for high-end products to dissuade scammers. Well, that rumor has been confirmed.

According to the folks at Phonescoop, Jeffrey Nelson, a Verizon Wireless spokesperson has confirmed the rumor.

This means that the $350 early termination fee will apply to new wireless contracts for advanced devices beginning Nov. 15. The will fee will decline by $10 a month.

The early termination fee for non-premiere devices remains at $175.

However, the devices that will incur a $350 Verizon Wireless early termination fee have not been specified. the new policy will not be limited to mobile phones and will also apply to notebooks.

So what do you think? Well, I don't really mind. After all, this only applies to a limited number of consumers. Those who choose to close the service before the term is up and those who are after the premiere devices.

The strategy aims to prevent people from reselling handsets on online auction sites. I think it's a good strategy on the part of Verizon since it protects their exclusive handsets. I wonder if other carriers will also adopt this wireless contract policy.

That's it for this update on the Verizon Wireless early termination fee increase. Continue to visit this blog to get the latest news and views on wireless contracts.

Rumor: Verizon Wireless Early Termination Fee to be Raised?

Here's some intriguing news for Verizon Wireless consumers. According to the folks at BGR, the carrier maybe considering raising its early termination fees to thwart scammers.

The report say that the Verizon Wireless early termination fee for high-end phones such as the Storm2 and Motorola Droid will be raised to to $350. This will be implemented on Nov. 15 and will decrease by five bucks every thirty days. The usual ETF amounts to around $150-200 so the rumored increase is significant.

But what is the main reason for this possible increase in Verizon Wireless early termination fee for high-end smartphones?

Well, it appears that the carrier is trying to crack down on scammers who purchase a new smartphone on contract and then cancel the line, pay the termination fee and sell the phone for twice or three times its original price.

We've already explained that contract fees are the primary tool that allow carriers to recover the subsidies they’d lose on early contract terminations. This means that this increase in Verizon Wireless early termination fee can be justified.

Well, this is just a rumor so it may not happen. Tune in to this blog for more updates on this increase in Verizon Wireless early termination fee rumor. Drop by often to get the latest news and views on wireless contracts.

Renegotiate a Wireless Contract

Consumers who are not happy with their contract usually seek to cancel them. However, this is not simple as there's the issue of the ETF or early termination fee.

There are other ways of dealing with a restrictive and "unfair" contract. One can actually renegotiate with the service provider to come up with a better deal.

I've found a CBSNEWS article that mentions several important points that a user needs to look at when negotiating a contract. No, I'm only going to mention a few so you'll be tempted to read the whole article by yourself.

It's obvious that research is the key when discussing your agreement at the table. You need to know what the competitors are offering their customers. This way you can point out to your service that you are not getting a fair deal.

One also needs to have a clear idea of what one really wants to get while negotiating a plan. The consumer needs to clearly express their desire be it more minutes or lower fees. However, the demands should also be realistic or a deal will not be reached.

Persistence and tenacity is also important when renegotiating your wireless contract. You must be determined not to back down when discussing your realistic demands.

That's it for this post. You should read the rest of the article to learn the proper ways of renegotiating a mobile phone contract.

Reasons for Getting Multiple Wireless Contracts

Should you commit to a second mobile phone contract? How about a third or a fourth? Does signing multiple cell phone contracts make sense?

Well, a study conducted by the folks at Moneysupermarket.com indicates that one in five Brits have more than one mobile phone or contract. The subjects were British but the figures may also apply to the US market with a bit of difference.

So we know that a number of consumers choose to sign multiple wireless contracts. But what are the reasons behind their decision to sign more than one agreement?

Some of the respondents of this wireless contract information study reveal that they want to get the latest or hottest handset in the market. Six percent of those who have admitted to signing multiple deals revealed they had taken out a second contract in a bid to get a brand-new must-have handset. Extremely popular handsets like the iPhone have been known to influence consumers top sign an additional agreement.

Eight percent of those guilty of having more than one contract contend that signing multiple contracts is one of the best ways to get the texts and minutes they wanted for a cheapest price. I take this to mean that another carrier have attracted them to sign a deal because of better rates and offers

One in eight users is the survey revealed they had an additional handset for 'privacy' reasons. I think this means that they have separate devices for business and personal life hence they have multiple wireless contracts.

Some experts say that many consumers feel the need to sign multiple agreements because handsets have evolved into a part of modern life. We use these devices for a variety of reasons and so it has become common for a user to have multiple handsets and contract.

However, it is still advisable for consumers to shop for better deals before resorting to signing a new mobile phone agreement.

That's it for this wireless contract update. Tune in to this blog to get more mobile phone contract related news and information.

AT&T Terms of Service Bans Class Action Suits?

I've recently read about some news that AT&T has made changes to it's terms of service. Apparently, the carrier's wireless contract now discourages class action suits.

AT&T's wireless contracts apply to both new and existing customers. Consumers who sign the agreement agrees to waive the right to right to a trial by jury or to participate in a class action.

If AT&T and the consumer cannot agree on a dispute then the customers are forced into arbitration. In this situation, the case presented as a forum in which neutral arbitrators dispense the same legal implications as a lawsuit in court. However, some experts contend that consumers face disadvantages at arbitration.

Here's the statement from AT&T's terms of service:

“You agree that, by entering into this Agreement, you and AT&T are each waiving the right to a trial by jury or to participate in a class action. This Agreement evidences a transaction in interstate commerce, and thus the Federal Arbitration Act governs the interpretation and enforcement of this provision. This arbitration provision shall survive termination of this Agreement”

AT&T has gotten wind of this wireless contract information and has released a statement via SlashGear to counter it. The carrier expressed that the arbitration clause in its terms of service has been this way since January 2001.

Here is AT&T's response:

AT&T has not recently made any changes in its terms of service regarding our arbitration clause. This approach has been in effect since Jan. 2001. We have made changes to our arbitration clause – most recently in Jan. 2009 – but those changes have been to the benefit of the consumer. It is worth noting that this approach – an arbitration clause with a class action waiver — is standard for the wireless industry.
We continue to believe that a consumer is better off pursuing a claim under our arbitration clause, rather than pursuing a class action. Arbitration is typically a fast, cost-effective, and pro-consumer way to address disputes, and AT&T’s arbitration agreement is among the most consumer-friendly in the nation.
A federal judge in West Virginia, even before recent improvements to AT&T’s arbitration policy, praised it as “unusually consumer-centered.”
Our current arbitration clause calls for the company — if it does not settle a consumer complaint and the consumer receives an award that is greater than the company’s settlement offer — to pay the greater amount of either the arbitration, or $10,000. This is what changed in Jan. 2009; previously the amount was $5,000.
Likewise, if the consumer has used a lawyer in winning an arbitration case and is awarded more than the company’s settlement offer, the company would pay two times the lawyers’ fees. Finally, we pay the entire cost of the arbitration, except if a customer is claiming $75,000 or more.
In short, we are confident our approach is both fair and in the best interest of our customers.

Well, this is certainly interesting. AT&T contends that it has done nothing wrong to its customers. Some experts also say that this clause is ineffective in preventing class action suits. Some state courts have decided to dismiss this waiver but it has also been upheld in some states.

That's it for this post on T&T changing its wireless contract. Tune in to this blog to get more news and info on mobile phone contracts.

AT&T Defends Early Termination Fees Against Government Review

There were recent news of a possible government review against major wireless carriers based on accusations of anti-trust violations. AT&T and Verizon Wireless were named in the review to be headed by Sen. Herb Kohl, chair of a congressional antitrust panel.

The government review was directed towards major issues in the mobile phone industry including texting prices, large carriers failing to cooperate with smaller carriers to resolve roaming disputes, disputes over spectrum, deals that give one or another carrier exclusive access to popular phones and early termination fees attached to wireless contracts.

Well, AT&T decided to take defensive measures against this government review on possible anti-trust violations. The company responded to all the issues covered by the review. However, our interest here lies in the carrier's defense of early termination fees attached to wireless contracts.

AT&T started that the early termination fees on wireless contracts are necessary because they allow the company to recoup money spent discounting handsets. For instance, AT&T offers the iPhone 3GS for $199 with a two year contract instead of the hefty full price. The ETF or early termination fee discourages the customer from breaking the wireless contracts and paying for the subsidized device.

AT&T is currently implementing a prorated early termination fee which means that the penalty for breaking a wireless contract will be progressively lowered by $5 during each month, every month, for the term of the contract.

Well, I expected the carrier to defend itself actively. But it would also be interesting to find out what this government review will achieve. Perhaps it would initiate practices that would be more beneficial to wireless consumers.

That's it for this post on AT&T's defense of early termination fees attached to wireless contracts. Tune in to this blog for more news and updates on wireless contracts.