Friday, January 11, 2008

Text Messaging Policies

This week, Verizon Wireless has announced that it will increase text messaging rates from 15 cents to 20 cents per message. Some experts say that the increase is an attempt to to push its messaging bundles.

I thought that ti would be interesting to look at the text messaging policy of Sprint Nextel because they initiated the increase in Text Messaging rates. Shortly after the move, the rest of the nation’s major carriers also raised their casual text messaging fees from 10 cents to 15 cents.

I think the recent increase in Sprint's messaging rates should also be discussed especially it's relation to being able to opt out of a contract without paying an early termination fee (ETF). About three months ago, Sprint decided to increase their casual text messaging rate from 15 cents per message to 20 cents per message.

They explained that casual text messaging fees starting next month will be 20 cents per message sent or received. Overage SMS charges for customers who have a texting package will also increase, from 10 cents to 20 cents per message.


However, the carrier stressed that the will not allow customers to slip out of their contracts without paying an early termination fee. Sprint Nextel’s current terms of service allow for changes to text messaging fees but only a “material” change in rates would allow customers to abandon contracts without paying an ETF. The company decided that the increase did not qualify as a "material" change.

Here is the section of the contract that deals with the need for a "material" change before a customer can be exempt from paying the ETF.
Your service is subject to our business policies, practices, and procedures, which we can change without notice. UNLESS OTHERWISE PROHIBITED BY LAW, WE CAN ALSO CHANGE PRICES AND ANY OTHER CONDITIONS IN THIS AGREEMENT AT ANY TIME BY SENDING YOU WRITTEN NOTICE PRIOR TO THE BILLING PERIOD IN WHICH THE CHANGES WOULD GO INTO EFFECT. IF YOU CHOOSE TO USE YOUR SERVICE AFTER THAT POINT, YOU'RE ACCEPTING THE CHANGES. IF THE CHANGES HAVE A MATERIAL ADVERSE EFFECT ON YOU, HOWEVER, YOU CAN END THE AFFECTED SERVICE, WITHOUT ANY EARLY TERMINATION FEE, JUST BY CALLING US WITHIN 60 DAYS AFTER WE SEND NOTICE OF THE CHANGE.
Sprint Nextel spokeswoman Roni Singleton, stressed their side by saying that, “This casual text messaging rate change does not qualify any of our customers for any kind of early termination fee waiver.”

I expect that the other carriers will follow the text rate increase started by these wireless phone carriers. However, there may also be a lot of complaints that will follow the increases in rates. Some suits and disputes related to wireless phone contracts will also probably follow.

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