AT&T's Prorated ETFs Are Now In Effect

Here's some excellent wireless contract news for AT&T subscribers.

The wireless carrier has formally announced that the change ion their wireless contract policy regarding ETFs or early termination fees has been implemented. Customers who have signed up an agreement or wireless contract with AT&T starting on May 25 will be charged with a prorated early termination fee should they choose to end or terminate their contract or agreement before it expires.

Here's the official press release issued by AT&T:

More Flexibility for Wireless Customers

San Antonio, Texas, March 31, 2008

AT&T (NYSE:T) today announced a new approach to early termination fees (ETFs) that provides greater flexibility for wireless customers.

Beginning on May 25, the company's new and renewing wireless customers who enter into one- or two-year service agreements will no longer be required to pay a single, flat early termination fee. Instead, that fee, which is $175, will be progressively lowered by $5 during each month, every month, for the term of the contract. (The single, flat ETF will continue to apply to new and renewing customers who enter into one- or two-year service agreements prior to May 25.)

The company noted that it continues to offer options for those customers who do not want term commitments or ETFs, including:

* Buy a phone at full price and go on a month-to-month service plan.
* Bring your own compatible GSM device. With this option, you can buy a SIM (subscriber identity module), slip it into the back of the phone, and select a month-to-month service plan.
* Choose one of AT&T's GoPhone prepaid wireless plans.

I know that a lot of customers have been waiting for this to happen. I have read countless of complaints about the high cost of these fees. Early termination fees can be a pain especially if you have signed several contracts. This decision by AT&T should make it easier for customers to shift to a different carrier.

You can tune in to the AT&T News Room for more press releases regarding wireless contract and important announcements.

Wireless Contracts and Security

After surfing the web for some news, I found this article on Security and the mobile phone industry. The RCR Wireless news article discussed the importance of security in the future of the cell phone market.

The article quoted a security adviser who feels that if security is not given enough attention then growth in the wireless industry will be stymied. The article also pointed out that software and applications used in the mobile phone industry are the most vulnerable to exploitation. Since we now use mobile devices for everything from booking flights to paying bills, we cannot overlook the importance of application security.

The article lead me to think about security as stated in wireless contracts. The existence of security policies or statements related to security may indicate if a carrier considers it as a priority. The presence of security measures or policies in wireless contracts or terms and conditions may also provide information and insight.

I scanned the wireless contracts published by major mobile phone networks on the Internet and found a couple of interesting statements. Here is a statement on security form AT&T's Terms and conditions:

AT&T DOES NOT GUARANTEE SECURITY. Data encryption is available with some, but not all, Services sold by AT&T. If you use your device to access company email or information, it is your responsibility to ensure your use complies with your company's internal IT and security procedures.

If you subscribe to AT&T then you should always keep in mind that your carrier does not guarantee security. You have to be careful with any sensitive information you send using mobile devices from AT&t because they are unsecured as stated in the wireless contracts.

The statement does indicate that some AT&T devices are equipped with data encryption so the company has made effort to provide security. However, customers still have to take responsibility for keeping important information safe.

Here is another wireless contract statement that involves security. T-Mobile's terms and conditions states that:

Wireless systems use radios to transmit communications over a complex network. We do not guarantee that your communications using the Service or Products will be private or secure, and we are not liable to you for any lack of privacy or security you may experience. You are responsible for taking precautions and providing security measures best suited for your situation and intended use of the Service.

This statement form the wireless contract of T-Mobile stresses the risk of transmitting important information on mobile devices. As with AT&T, T-Mobile will not be responsible for any security breach that users may experience when using their device. The customers have to take precautions to ensure that their personal information is kept safe.

These statements form the wireless contracts of two major wireless networks indicate that security in the mobile phone industry is not yet guaranteed. There are some efforts done towards data encryption and other security measures but customers still have the responsibility of protecting important information.

AT&T Reimburses Customers for Third-Party Scams

I just came upon an interesting piece of news. it seems that thousands of Florida customers were billed for third-party services such as ringtones and text messaging that were advertised as free. As a result AT&T Mobility has agreed to reimburse these customers in fees that could amount to more than $10 million. That's a lot of dough.

According to this CNN Money article , the blame rests in third-party companies. Apparently, these companies advertise ringtones and other services on the web and promised customers that the service will not cost them anything. The problem begins when teenagers sign up for these "free" services without consent from their parents. When the monthly bills arrived and parents find charges on their wireless bill, they would naturally complain to customer service.

The charges that appear in the monthly bills are often unclear so AT&T Mobility has agreed in the settlement to police such agreements with third-party providers. They will clarify what the charges are for as part of the agreement. The wireless carrier want to make amends for the damage done by this fraudulent and deceptive advertisements.

This news intrigued me so I decided to look at the wireless contract of AT&T. I want to see if the AT&T wireless contract contains any provision or policy on third-party services. Well, I scanned the terms and Conditions and observed that AT&T has mentioned third parties numerous times. Here is the statement that may be most relevant to this issue,

Certain information or content is provided by independently owned and operated content providers or service providers who are subject to change at any time without notice. AT&T IS NOT A PUBLISHER OF THIRD-PARTY INFORMATION OR CONTENT AND IS NOT RESPONSIBLE FOR ANY OPINIONS, ADVICE, STATEMENTS, OR OTHER INFORMATION, SERVICES OR GOODS PROVIDED BY THIRD PARTIES. Third-party content or service providers may impose additional charges. Policies regarding intellectual property, privacy and other policies may differ among AT&T's content or service providers and you are bound by such policies when you visit their respective sites or use their services. It is your responsibility to read the rules or service agreements of each content provider or service provider. Any information you involuntarily or voluntarily provide third parties is governed by their policies. The accuracy, appropriateness, content, completeness, timeliness, usefulness, security, safety, merchantability, fitness for a particular purpose, transmission or correct sequencing of any information or downloaded data is not guaranteed or warranted by AT&T or any content providers or other third party. Delays or omissions may occur. Neither AT&T nor its content providers, service providers or other third parties shall be liable to you for any loss or injury arising out of or caused, in whole or in part, by any information acquired through the Service. You acknowledge that every business or personal decision, to some degree or another, represents an assumption of risk, and that neither AT&T nor its content and service providers or suppliers, in providing access to information, underwrites, can underwrite, or assumes your risk in any manner whatsoever.

The wireless contract of AT&T states that they are not responsible for any information, services or goods provided by third-parties. Then, Why did the company agree to reimburse the customers who were charged for the third-party services? My guess is this policies were updated after this issue came out, AT&T has change the wireless contracts to protect itself from similar incidence. However, I'm not sure about this. Perhaps these statements were already in the contract before this issue became public.

I think they did the right thing. By agreeing to reimburse the customers victimized by these scams, AT&T can maintain a reputation as a just company. And by stating in their contract that they are not responsible for any services provided by third-parties, the company is protecting itself from problems that may stem from these companies.

The important lesson to learn here is that one not trust third-party services easily. The offers made on the Internet should not be trusted unless they have been verified. The wireless contracts of carriers already have statements that protect the carriers from these scams, so wireless customers should avoid getting mired in these fraudulent practices.

The Wireless Consumer Protection Bill

Massachusetts Representative Edward J. Markey, the chairman of the House Subcommittee on Telecommunications and the Internet has authored a bill that will challenge wireless contracts. According to the bill, legislation is needed because, "wireless service is increasingly used and relied upon by residential and business consumers.”

The Wireless Consumer Protection Bill aims to nullify the need for consumers to sign a mobile phone contract when they pay the full price for handsets. The bill also postulates that customers who purchases a mobile phone at the full price should be able to avail of voice and data services at a rate that is comparable with those offered with subsidized phones.

The bill authored by Markey also has a provision that would mandate prorated early termination fees and force cell phone service providers to only recover device subsidies. A hearing will be held at the The U.S. House of Representatives to discuss this revolutionary bill.

Some experts think that this bill was crafted because of the complications brought about by AT&T and the iPhone. The carrier was criticized for requiring customers to sign a two year wireless contract even though they pay for the full prize of the device and AT&T does not subsidize the hot product.

If the House of Representatives decides to pass this bill and it becomes enacted as law, then the power of wireless contracts will obviously be diminished. The carriers will also be affected because wireless contracts offer discounts that encourage people to buy expensive mobile phones.

According to analysts, this bill may also pave the way to a more open network. For example, a customer may buy a mobile phone from a carrier at full price to avoid being locked by a wireless contract. Then that customer is free to take the device to another carrier provided as long as the device is compatible with the network.

A comment on this Moconews.net article also indicated that AT&T have already been allowing customers to avoid wireless contracts if they pay the full price of the product. According to the comment, the carrier does not advertise this offer and the customer has to ask for this deal. I wasn't able to confirm this but if your an AT&T customer, then it's certainly worth a try.

I guess all we can do is wait for the result of the hearings. If the Wireless Consumer Protection Bill becomes a law, then perhaps consumers can benefit from it. Maybe it can also lessen the wireless contracts complaints and class actions suits directed towards the networks. I hope this piece of info will be helpful to you.

Some Recent Wireless Plans Complaints

This year, many mobile phone service providers have been hit with class action suits. The reasons for these allegations vary from unjust wireless plans policies to deception and fraud. I decided to look for recent complaints to see more deeply into what wireless customers are complaining about.

Take a look at this complaint posted consumeraffairs.com. This complaint from Bobbie of Graham NC deals with wireless contract problems with AT&T.

I signed a contract with At&T in July '07. I have had nothing but problems since that time. I have even called to cancel the account, and they gave me credit to stay, so I did. But now it's another month, double fees again, and no insurance on 2 of the phones when I clearly added it in the original contract. Now, I want out of this contract;they have not been honest or fair, and they have not honored their part of the contract as they have said in the first contract.

I just can't see having to pay this kind of money every month, or having to stay on the phone for hours with several reps who all say the same thing: that it isn't their fault, it's mine; but they will do ME a favor and fix it. It will cost me $175.00 per phone to cancel. I have (3) phones and not that kind of money.

The early termination fees that are part of almost all wireless contracts plays a large role in this complaint. The customer will be charged a huge fee for violating the terms of a contract. But what happens if the carrier violate the terms of the agreement? Perhaps consumers do have a reason for filing class action suits against carriers.

Here is another complaint on wireless contracts. This time it is directed towards Sprint. Jon of Indianapolis IN posted this complaint,

I am a long-time Sprint customer. I am waiting for contract to expire to change carriers. Have five phones and checked expirations in November 200,7 and three were expired and two were up in April 2008. Checked website in Jan 2008, and all contract dates had changed. No changes were made to my account. I called Sprint and spoke to four different CSR for over an hour with no explanation. I asked to speak with a supervisor and was told they were busy and would call me back within 24 hrs. No call back was received.

Early termination fees of $150X5=$750 will be charged if I leave Sprint. $189 per month until March 2009 if I don't change 189X13=$2457.

This customer was waiting for his wireless contract to expire. Unfortunately, the contract date changed even if he did not make any modifications to his account. Since he has five phones, the fees he will incur for quiting his contract are huge. Has this type of thing also happened to you?

I think I'm beginning to understand why class action suits were filed against mobile services this year. I found a lot of complaints about shady practices that were employed to charged customers with fees or to extend their wireless contracts without their knowledge.

I also noticed that the customer service of some carriers were sub par when I read many complaints. A lot of the customers were unable to get answers they need and some were even treated rudely. Per haps, the legal action taken against these companies will encourage them to improve their services and the policies of their wireless contacts.

Cancel Your Wireless Contract Without Paying for the Early Termination Fee

Many consumer groups and customers feel that the early termination fees that are charged by wireless carriers are unfair. This fees prevent people from withdrawing their commitment to a wireless contract and discourages them from transferring to another service provider.

These complaints eventually caused some networks to become less strict with the early termination fees of their wireless contracts. They have done away with fixed fees and have chosen to go with prorated fees which are more consumer friendly. However, the dispute on early termination fees are not yet over. For instance, a class action suit has recently been certified against Verizon Wireless due to the early termination fees they have charged their customers.

Early Termination fees may dampen the spirits of unsatisfied wireless customers but there are actually legal ways to terminate a contract with out paying a fee. A customer simply has to read the wireless contract he signed in order to discover these ways. Let me enumerate some of the ways in which people can cancel their cellphone contract without paying any termination fees.

One of the best ways to avoid paying an early termination fee is by canceling your wireless contract within a month or thirty days of accepting it. I've looked at the Terms and Conditions of many contracts and thirty days seems to be the standard for the early cancellation of a contract. I even found out that with AT&T you can even receive a refund if you cancel your contract within three days of signing it.

However, you will still be charged for any services that you used within this 30 day period. Returning the device and accessories that are pert of the long term deal or wireless contract is also a requirement. Here is a statement from AT&T's terms and conditions that deals with early cancellation:

You may cancel your service, for any reason and without incurring the Early Termination Fee, within thirty (30) days of signing your Wireless Service Agreement, PROVIDED, however, that if you cancel service you will remain responsible for any service fees and charges incurred. If you cancel within three (3) days of signing your Wireless Service Agreement, you will be entitled to a refund of your activation fee, if any. If you exercise this option, you may be required to return devices and associated accessories purchased in connection with your Wireless Service Agreement.

Another way of escaping from a wireless contract without spending a dime for the early termination fee is by canceling it after the carrier initiated a "material" change in the contract. Mobile phone service providers, give their customers to opt out of their contracts if a change they made causes adverse effects. Customers who cancel their contract within a certain period after the material change takes effect are not required to pay any early termination fee.

This statement from Sprint Nextel's Terms and Conditions describe cancellation after a material change in the services and also includes the conditions a customer has to follow to become exempted from paying an early termination fee,

We will provide you notice of material changes, and may provide you notice of non-material changes, in a manner consistent with this Agreement (see "Providing Notice To Each Other Under The Agreement" section). If a change we make to the Agreement is material and has a material adverse effect on Services under your Term Commitment, you may terminate each line of Service materially affected without incurring an Early Termination Fee only if you: (a) call us within 30 days after the effective date of the change; and (b) specifically advise us that you wish to cancel Services because of a material change to the Agreement that we have made. If you do not cancel Service within 30 days of the change, an Early Termination Fee will apply if you terminate Services before the end of any applicable Term Commitment.

These are just a couple of legal ways of ending a troublesome contract. I'm sure that there are a few more ways to end your commitment to a wireless contract you find unacceptable. The best way to find one is to read the contract or ask questions. I hope this information can help you become free from an unwanted wireless contract.

Wireless Contract Policies on Network Coverage

Do you receive great network coverage from your wireless carrier? If you have signed up for a top wireless network then you will probably have great mobile phone reception. But if your location has a lot of weak or dead spots then your mobile phone experience may be unpleasant. After all a wireless phone is useless as a communication device without network coverage.

The system of radio communications antennas owned or used by your service provider defines the area of service coverage that affects your cellphone. The reception quality you get largely depends on your location and the network design of your carrier.

However, you might not be aware that the coverage or the availability of service is also stated in the wireless contract you signed to get your mobile phone plan. It is important that you see what your wireless contract says about service availability before you sign it. Otherwise, you may not have the right to complain about coverage after you have signed it. Let's take a look at some wireless contracts and see what they have to say about coverage or service availability.

The Service Availability and Access/Coverage section of AT&T's Terms and Conditions states that,

AT&T does not guarantee availability of wireless network. Services may be subject to certain equipment and compatibility/limitations including memory, storage, network availability, coverage, accessibility and data conversion limitations. Services (including without limitation, eligibility requirements, plans, pricing, features and/or service areas) are subject to change without notice. When outside coverage area, access will be limited to information and applications previously downloaded to or resident on your device. Coverage areas vary between AT&T BroadbandConnect, EDGE and GRPS. AT&T BroadbandConnect only available in select markets. See coverage map(s), available at store or from your sales representative, for details. AT&T BroadbandConnect download speeds only available on the AT&T BroadbandConnect network. Actual download speeds depend upon device characteristics, network, network availability and coverage levels, tasks, file characteristics, applications and other factors. Performance may be impacted by transmission limitations, terrain, in-building/in-vehicle use and capacity constraints.

This statement from AT&T clearly indicate that they do not guarantee the service of a wireless network at all times. A device may not be able to connect to AT&T's network due to a variety of reasons including terrain, capacity constraints and other factors. This statement also points out the importance of looking at coverage maps. Look at your carrier's coverage map to find out if you'll have optimum coverage in your area.

Let's now check out the Network coverage policy of another wireless network. The Coverage; Where Your Device Will Work section of Sprint Nextel's wireless contract states that,

Our coverage maps are available at our stores and on our website. The specific network coverage you get will depend on the radio transmissions your Device can pick up and Services you've chosen. Our coverage maps provide high level estimates of our coverage areas when using Services outdoors under optimal conditions. Coverage isn't available everywhere. Estimating wireless coverage and signal strength is not an exact science. There are gaps in coverage within our estimated coverage areas that, along with other factors both within and beyond our control (network problems, software, signal strength, your Device, structures, buildings, weather, geography, topography, etc.), may result in dropped and blocked connections, slower data speeds, or otherwise impact the quality of Service. Services that rely on location information, such as E911 and GPS navigation, depend on your Device's ability to acquire satellite signals (typically not available indoors) and network coverage.

Sprint Nextel's Terms and Conditions stresses that coverage is not available everywhere. If you are unlucky, then your location may fall into the "gaps" of Sprint Nextel's wireless network. There are also uncontrollable factors that may rob you of a good reception such as geography and weather. You can also get an idea of the quality of coverage in your area by looking at Sprint's coverage maps.

Now let us look at the "most reliable network" and see their take on coverage or service availability. Veriszon Wireless' Customer agreement says that,

Wireless phones use radio transmissions, so we can't provide service when your phone isn't in range of a transmission site used to provide service. Even within a coverage area, there are many factors, including network capacity, your phone, terrain, proximity to buildings, foliage, and weather, that may impact availability and quality of service.

If the "most reliable network" can't provide service all the time then, coverage is really not available at all times. Even Verizon can't overcome a lot of the factors that may affect the quality of reception. Well, it's not yet an exact science as these wireless contracts tell us so we may have to wait for new technologies that can overcome these obstacles.

The wireless contracts tell us that as of now, coverage or perfect reception is not guaranteed. You can't really complain about having no coverage in your area because no network has complete control over factors that may affect your reception. I hope this post on coverage will give you some useful info.

Mobile Phone Directories and Consumer Privacy

While I was surfing the net, my eyes caught an interesting Mobileburn article. It was about Verizon Wireless condemning data mining of wireless phone numbers in order to some sort of a directory.

The article indicated that a certain company is making plans to sell the wireless phone numbers of private citizens to interested parties. The company made it known through their website that it will offer “unlisted or unpublished” numbers and will identify the wireless service provider of consumers' for a fee. And how will this company gather the numbers and info of private citizens?

Apparently, the company will mine the information about a consumer's personal number and carrier from the World-Wide-Web, personal Web pages and other sources. The controversial aspect of their method is that they do not have the consent to gather personal information of consumers who own the rights.

How about you? Do you feel that that data mining of mobile phone numbers should be illegal? For my part, I don't think that this method should be allowed. I wouldn't want my cellphone number and other personal information to be distributed to people I do not know. The possibility of being bombarded by ads and other offers is also not an idea that I would welcome.

For these reasons, I am glad that Verizon Wireless called on that company to halt the mining and sale of wireless consumers' personal information. This wireless network prides it self in having a long-standing policy of keeping its customers’ wireless numbers private. The wireless contract or Term and condition of Verizon Wireless clearly states that,

"We don't publish directories of our customers' phone numbers. We don't provide them to third parties for listing in directories either."

This statement from the carrier's wireless contract indicates that they are aware that customers consider their wireless phone numbers as private. They also feel that wireless phones should be free from intrusions from telemarketers and other unsolicited calls and messages.

Let me give you other wireless contracts or terms and conditions that have policies against mobile phone directories and third parties. AT&T's wireless contract emphasizes that,

AT&T IS NOT A PUBLISHER OF THIRD-PARTY INFORMATION OR CONTENT AND IS NOT RESPONSIBLE FOR ANY OPINIONS, ADVICE, STATEMENTS, OR OTHER INFORMATION, SERVICES OR GOODS PROVIDED BY THIRD PARTIES. Third-party content or service providers may impose additional charges. Policies regarding intellectual property, privacy and other policies may differ among AT&T's content or service providers and you are bound by such policies when you visit their respective sites or use their services. It is your responsibility to read the rules or service agreements of each content provider or service provider. Any information you involuntarily or voluntarily provide third parties is governed by their policies.

AT&T's terms and conditions do not openly state that they are against data mining of wireless phone numbers in order to some sort of a directory. They do make it clear that they are not involved with companies or any party that may attempt to do so. This carrier also puts the responsibility on their customers. I have to say that I prefer Verizon's stand on this issue. Anyway, let's move on to T-Mobile.

T-Mobile's terms and conditions states that,

We may list your name, address, and Number in a published directory with your consent. For more information on our privacy policies, please see our privacy notice at www.t-mobile.com/privacy. The way third parties handle and use your personal information is governed by their policies and we are not responsible for their policies, or their compliance with them.

T-Mobile has a softer stance on mobile phone directories. However, it will not publish your information without your consent. They also warn their customers that they have no power over third parties so customers have to exercise caution.

Lastly, here is US Cellular's stand on directories as stated in their Privacy Policy,

We will never disclose your CPNI or Personal Information to any third party other than in connection with collecting delinquent amounts owed us such as to a collection agency or credit bureau. U.S. Cellular® does not publish or support wireless directories of our customer phone numbers nor do we make this information available to third parties for listing in public directories. We may release CPNI and Personal Information about you or your account when necessary or appropriate in special circumstances such as when we, in good faith, believe that disclosure is required by a subpoena or other lawful process to enforce our Customer Service Agreement or protect the rights, property, or safety of U.S. Cellular®, our customers, or others. Disclosure may also be required in connection with a sale, purchase, merger, reorganization, liquidation, or dissolution involving U.S. Cellular®.

Like Verizon Wireless, US Cellular stress that they do not support wireless directories that contain the personal information of their clients. They also assure their customers that they will not make their information available to third parties for listing in public directories.

I guess that's all I can post today. I am oppose to companies that gather information about wireless customers in unethical ways. If you are also concerned about keeping your personal info private, then I suggest that you look into your wireless contract and find out how your privacy is being safeguarded.

Roaming Policies In Wireless Contracts part 1

Roaming is an important aspect of using a mobile phone. Since roaming can add more charges to your monthly bill, it would be a good idea to know what your wireless contract states about it. But for the benefit of those who are unfamiliar about this term or for those who never cared before, let me give a brief explanation.

In the wireless telecommunications industry, roaming is a general term that to refers to the extending of connectivity service in a location that is different from the home location where the service was registered. This means that you are "roaming" if you use your mobile phone on a network that is outside the home service area of your carrier. More importantly, you might be charged for "roaming".

Let us look at the roaming policies of different mobile phone networks so that you will have an idea of the charges that you might incur. These policies are often stated on their wireless contracts or terms and conditions so let us tackle them individually.

Let's being with Alltel Wireless' roaming policy as that on their wireless contract. The Charges for Services and Equipment section of Alltel's Terms and Conditions states that,

"You may incur additional charges for roaming or long distance calls. Rates and charges while roaming outside of your local Alltel service area may be different from your Alltel service area rates."

This statement clearly express that an Alltel customer may suffer from additional charges if he or she makes calls outside Alltel's home service area. They also make it clear that the charges incurred while roaming may not be the same as the rates in their service area.

However, there is something very important that you need to remember if you are an Alltel customer. You should never abuse roaming because Alltel may limit, interrupt, terminate or refuse to provide service if "the majority of your Service is used roaming on a network not owned or operated by Alltel."

Let's proceed with AT&T's policy on roaming. The Roaming section of the terms and Conditions of this network states that

Roaming charges for wireless data or voice service may be charged with some plans when outside AT&T's wireless network. Display on your device will not indicate whether you will incur roaming charges. Services originated or received while outside your plan's included coverage area are subject to roaming charges. Use of Services when roaming is dependent upon roaming carrier's support of applicable network technology and functionality. Check with roaming carriers individually for support and coverage details. Billing for domestic and international roaming usage may be delayed up to three billing cycles due to reporting between carriers. If your usage of the Services on other carriers' wireless networks ("offnet usage") during any two consecutive months exceeds your offnet usage allowance, AT&T may at its option terminate your wireless service or access to data Services, deny your continued use of other carriers' coverage, or change your plan to one imposing usage charges for offnet usage. Your offnet usage allowance is equal to the lesser of 6 megabytes or 20% of the kilobytes included with your plan and for messaging plans the lesser of 3000 messages or 50% of the messages included with your plan. AT&T will provide notice that it intends to take any of the above actions and you may terminate your agreement. You may be required to (1) use a device programmed with AT&T's preferred roaming database; and (2) have a mailing address and live in the United States, Puerto Rico or the U.S. Virgin Islands.

Well, that was quite a handful. Customers that have signed up for some AT&T wireless plans may be charged if they use their phone beyond the scope of AT&T's network. A mobile phone will not be able to inform a customer that he is "roaming" while making a call. You will also suffer penalties including the termination of your services if your offnet usage exceeds your roaming usage allowance during any two consecutive months. AT&T subscribers should read their contracts carefully.

Let us now check out Sprint Nextel's take on roaming. Their roaming policy as found on their Terms and Condition states that,

"Roaming" typically refers to coverage on another carrier's network that we make available to you based on our agreements with other carriers. These agreements may change from time to time and roaming coverage is subject to change. Your ability to receive roaming coverage depends on the radio transmissions your Device can pick up. You can pick up roaming coverage both within and outside our network coverage areas. Your Device will generally indicate when you're roaming. Depending on your Services, separate charges or limits on the amount of minutes used while roaming may apply. Certain Services may not be available or work the same when roaming (including data Services, voicemail, call waiting, etc.)

Sprint explains that roaming coverage is dependent on the agreements they have with other wireless networks. They also emphasize that these agreements may undergo change at anytime. A Sprint mobile phone will also indicate if the owner is outside their home coverage area. They may charge separately for roaming calls and limits the minutes that may be spent roaming. However, Sprint does not indicate any penalty for excessive roaming calls unlike AT&T and Alltel.

Those are the roaming policies of a few mobile phone networks as stated on their wireless contracts. I will blog about the roaming policies of other networks on the second part of this series. I hope the info on this post will prove useful to you.

Early Termination Fees of Wireless Phone Contracts

Service industries such as mobile phone phone service and subscription television commonly have termination fees or early termination fees (ETFs) as they are more commonly known. However, the imposition of these fees have been criticized by consumer interest groups. These fees prevent users from migrating to superior services so they are labeled as being anti-competitive.

The process usually works this way. A person purchases cellular phone service from a particular wireless carrier. He or she might be required to sign a two-year contract in order to avail of the service. Now that contract might stipulate a $200 fee in the event that the customer breaks the contract or wants to opt out of it.

The clamor and the disputes about the unfairness of early termination fees in wireless phone contracts have lead to positive changes. Verizon wireless was the first carrier to give in when it announced that it will prorate it's early termination fee. AT&T followed Verizon's lead and other carriers namely, T-Mobile and Sprint, have also decided that they would begin prorating their ETF in the first half of next year.

Now, what does a prorated early termination fee entail? The customer will still have a to pay a fee for ending the contract abruptly. However, the amount will decrease as the decision to end the contract early gets closer to the contract end date. This means that a customer will no longer be forced to pay the original fee if he decides to end the contract.

Here's a list of the current termination fee for each major wireless carrier:

Alltel: $200 per phone line

AT&T: Prorated

Sprint: $200 per phone line (to be prorated next year)

T-Mobile: $200 per phone line (to be prorated next year)

Verizon: Prorated

So far, Alltel has not made any announcements on making it's ETF prorated. However, it may lose customers if it remains as the only carrier to have a non prorated early termination fee next year. It would be logical to assume that the company will also follow the examples of other wireless networks to keep their consumers happy.

If Your cellphone is Lost or Stolen....

Have your ever lost your cell phone? Maybe someone stole it from you or you've left it behind at school. If you this situation has happened to you then you should know the proper steps that should be done. You wireless carrier might have a certain policy that will be applied in this situation. Let's have a look at these policies.

AT&T 's service agreement states that,

If your wireless phone or other device ("Equipment") is lost or stolen, you will be responsible for all charges incurred on your phone number until you report the theft or loss and provide a police report number to us. After you report the theft or loss to us, you remain responsible for complying with your other obligations under this Agreement including, but not limited to, payment of any monthly service fees.

This means that it is important that you should immediately inform AT&T if your phone was stolen or if you have lost it. You don't want to be charged with all the calls on your stolen or lost phone on top of the misery of having lost it.


If you signed a deal with Verizon Wireless then you should remember that,

If your wireless phone is lost or stolen, it is very important that you notify us immediately for your own protection, so that we can suspend your service to prevent further usage. If your bill shows charges to your phone after the loss but before you reported it, and you want a credit for those charges, we will investigate your account activity. You do not have to pay the charges you dispute while they are being investigated to determine whether the charges resulted from usage by someone not authorized to use the phone. Further, if we haven't given you a courtesy suspension of recurring monthly fees within the prior year, we'll give you one for 30 days, or until you replace or recover your wireless phone, whichever comes first. You may need to provide further information regarding the theft or loss if we ask for it.

Verizon's stance on the loss or theft of a cellphone is softer than that of AT&T but it still stresses the importance of reporting the loss or theft of the wireless phone immediately. They are also offering a suspension of recurring monthly fees until your replace or recovered your phone provided they did not give you a suspension a year earlier.
Sprint/Nextel has this to say about the loss or theft of a wireless phone:

Call us immediately if your Device is lost or stolen because you may be responsible for usage charges before you notify us of the alleged loss or theft. You agree to cooperate if we choose to investigate the matter (provide facts, sworn statements, etc.). We may not waive any Early Termination Fees if you choose to terminate Services as a result of loss or theft of your Device.

Their policy is basically the same with other carriers. Informing them of the loss or theft is extremely important. However, if you choose to terminate Services after losing your phone they may not waive any early termination fee.


T-Mobile's terms and conditions states that,

If your Phone is lost or stolen ("Lost Phone") you will not be liable for unauthorized airtime charges incurred on the Lost Phone if you: (a) notify us immediately; (b) ask us to deactivate the Lost Phone; and (c) provide within 14 days any documentation we request, including a police report. You must fulfill the remainder of your Term by activating a replacement Phone (which may be full price) or the cancellation fee will apply.

Again this policy emphasizes the importance of letting the carrier know about the loss or theft of the cellphone. T-mobile also stresses that a customer must activate a replacement phone if he or she loses the original device.

It's clear that informing your wireless carrier is the first step you should make when you lose your wireless phone. It also helps if you have proof of the lost of your phone because investigations will follow. However, the best way to avoid this situation is to take better care of your wireless phone so that you won't misplace it or have it stolen by a dishonest person.

Wireless Contract Changes and Congress

U.S. Congressional hearings were recently held to decide if it was best to legislate more consumer-friendly practice among wireless cell phone carriers. Perhaps rumors about this hearings prompted wireless companies, Verizon and AT&T to loosen their restrictions on wireless contract changes.

This is Verizon Wireless' policy on their right to change their contract:

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.

And this is AT&T's policy on terms and condition changes:

These terms and conditions may be changed from time-to-time. AT&T will post the most current version of these terms and conditions at att.com/MediaTerms or other appropriate location. Please check these regularly to inform yourself about changes to the terms and conditions.

Sen. Amy Klobluchar introduced a bill that would require wireless providers to prorate fees charged to customers who cancel cell phone contracts. A two-year contract usually requires a $200 fee if a customer wants to cancel the wireless service before the contract expires. Another facet of the Sen. Klobuchar's bill demands that customers will not be forced to sign up for a contract extension if they want to make changes to their calling plans.

Verizon and AT&T have already removed the contract-extension stipulation and their customers can now change their plans without signing a new contract. Here is a statement from Verizon Wireless contract on contract-extension:

Except as explicitly permitted by this agreement, you're agreeing to maintain service with us for your minimum term. (Periods of suspension of service don't count towards fulfillment of your minimum term.) After that, you'll become a month-to-month customer under this agreement. AN EARLY TERMINATION FEE WILL APPLY IF YOU CHOOSE TO END YOUR SERVICE BEFORE BECOMING A MONTH-TO-MONTH CUSTOMER, OR IF WE TERMINATE IT EARLY FOR GOOD CAUSE. FOR SERVICE ACTIVATED PRIOR TO 11/16/06, THE EARLY TERMINATION FEE IS $175 PER WIRELESS PHONE NUMBER. FOR SERVICE ACTIVATED ON OR AFTER 11/16/06, OR FOR LINES OF SERVICE WITH MINIMUM TERMS EXTENDED ON OR AFTER 11/16/06, THE EARLY TERMINATION FEE IS $175, WHICH WILL BE REDUCED BY $5 FOR EACH FULL MONTH TOWARD YOUR MINIMUM TERM THAT YOU COMPLETE. (The Early Termination Fee applies only to the extent permitted by law. If you buy your wireless phone from an authorized agent or third-party vendor, you should check to see if they charge a separate termination fee.) If you terminate your service as of the end of your minimum term, you won't be responsible for any remaining part of your monthly billing cycle. Otherwise, all terminations by you during a monthly billing cycle become effective on the last day of that billing cycle. You'll remain responsible for all fees and charges incurred until then and won't be entitled to any partial month credits or refunds. You may be able to take, or "port," your current wireless phone number to another service provider. If you request your new service provider to port a number from us, and we receive your request from that new service provider, we'll treat it as notice from you to terminate our service for that number upon successful completion of porting. After the porting is completed, you won't be able to use our service for that number. You'll remain responsible for any Early Termination Fee, and for all fees and charges through the end of that billing cycle, just like any other termination. If you're porting a phone number to us from another company, we may not be able to provide you some services, such as 911 location services, immediately.

Some experts see the loosening up of wireless contracts as peace offerings so Congress will not see a need for regulating the business of wireless cell phone companies. Well, only time will tell if lawmakers will agree with that notion. Many consumers have filed more complaints with Better Business Bureau about the wireless industry so maybe the recent changes are a move in the right direction. As a wireless customer, I have to agree with that.

Wireless Carrier Contract Policy Change

Wireless carrier's contracts or terms and conditions do not change very often. However, due to unseen circumstances or changes in the wireless industry, the top wireless carriers have decided to make adjustments on their contracts.

A good example would be the Verizon Wireless policy change that was made on the month of March of last year. The wireless giant became the first cellular carrier to pro rate its termination fees over the life of the contract in the history of the wireless industry.

And a month ago, another wireless industry giant followed Verizon Wireless policy change. AT&T another leading wireless carrier also announced that it will no longer charge customers a flat termination fee if they cancel their service before their contract is up. This new contract policy will be implemented into in early 2008.

AT&T will pro rate the fee depending on how many months the customer has left on their contract. The company has also made the decision not to require customers to renew contracts when making changes to their wireless service plans.

The wireless sales and marketing division of AT&T explained that the policy change was done to accommodate the demand of consumers. They have acknowledge that wireless consumers dislike one-size-fits-all approaches and thus they have made changes to remedy the problem.

Wireless customers have long been complaining about contract termination fees and upgrade fees. They have to pay anywhere from $175 to $250 to cancel a contract before its expiration date which is obviously a burden to those who have tight budgets.

They view as measures designed to retain customers and prevent them from seeking better deals elsewhere. Industry representatives expressed that fees are necessary to subsidize the costs of handsets.

Hopefully, the contract policy change made by AT&T will encourage similar adjustments from other wireless carriers. Perhaps they will also consider the difficulties posed by ontract termination fees and upgrade fees to their loyal customers.

Wireless Binding Contract Length and Freebies

Wireless carriers often offer long term contracts to their customers. They are commonly 1 or two years long. Some carriers do not require their customers contracts as needed to get their services. They may offer rebates in the place of contracts to persuade potential customers. The range of rebates for a two year agreement is usually between $30 to $330. If you get a one year contract then you may be able to get greater rebates.

If you sign a contract with some carriers, then you may be able to get some freebies. For instance, AT&T subscribers have the option of a dozen free phones to choose from. Just another promotion technique to draw customers.

If you want to go with Verizon Wireless, then you have to accept the mandatory one year minimum contract. You can also benefit from being able to choose between four free phones and substantial rebate discounts, if you sign a two year contract with Verizon.

You can also sign with Sprint for a two year contract and purchase online and gaining the option of only one free phone. Sprint has very expensive phones so it may not be good for them to offer more.

Wireless carrier, T-Mobile requires customers to sign a two year contract if they want to avail of their “My Faves” packages. Unfortunately, customers cannot benefit from the insignificant differences in the cell phone rebates between one or two year contracts.

You should not go with ALLTEL if you have a thing for free phones. This carrier does not offer any free phones as contract bait. But then again, free phones are technically not really free. Fortunately, this carrier offer three phones with their two year contract that will cost customers only a few bucks due to the discounts and rebates.

Unlimited Nights Time Frame of Top Wireless Carriers

The top wireless carriers offer unlimited night minutes to attract and gain more customers. This offer is indeed tempting because a caller can make unlimited calls during this period. However, there is still a need to exercise care when using this feature because every carrier has a different time frame for nights that is stated in their contract.

The last thing you want is to be charged for a call that you thought to be within the nights period. You should read the time frame for nights on the contract or terms and conditions of your carrier before you start making calls. Let me give some information on the nights time frame of various wireless carriers as stated on their contract.


You can avail of AT&'s unlimited nights minutes at 9 p.m. You can choose the option of changing that to 7p.m. by spending $9 more per month.


If you bought the "Power Pack" wireless plan of Sprint, then you should know that you can avail of unlimited nights starting at 7 p.m. You can make "night" an hour earlier or 6 p.m. by paying an extra $5 every month.


T-Mobile's unlimited nights begin at 9 p.m. and cannot be lowered by paying an extra fee.



Alltel’s “National Freedom” plan offers nights beginning at 9p.m., but its “Smart Choice Packs” have nights beginning at 7p.m.


Your unlimited nighttime minutes will commence at 9p.m. if you have purchased 450 minutes from US Cellular. You can avail of unlimited nights and weekends two hours earlier if you buy 900 minutes.



Verizon Wireless offer unlimited night minutes from 9 p.m. and no offers are made to extend this period.


Just by looking at these offers, it's clear that Sprint has the best nights policy because a subscriber can enjoy limited nights as early as 7 p.m with out paying any extra fee. This means that if you do most of your calls from 7 p.m. then Sprint may be the the best choice for you.