Sprint Pro-rated ETF Policy Now Official!

Sprint has finally made it official. In my previous post, I blogged about Sprint's plans to finally pro-rate its ETF or early termination fee. A few days ago, Sprint released an announcement containing the details of its new wireless contract policy on pro-rated ETF or early termination fee.

Sprint's announcement contained the details and benefits that are included in its new contract policy on pro-rated ETF. Sprint's new ETF policy is basically designed to give customers who have signed wireless contracts more freedom. By pro-rating its ETF or early termination fee, Sprint is making it easier for customers to make changes or opt out of their wireless c0ntract.

Sprint's old ETF policy charges customers who want to get out of their contracts a flat early termination fee of $200. The carrier's new wireless contract policy allows subscribers to pay a reduced fee based on how long they have remained faithful to their wireless contract.

Starting on November 2 Sprint subscribers with new or renewed contracts will have a $200 ETF for the first six months. Then Sprints ETF will be reduced by by $10 for the succeeding months that the customer stayed with the wireless contract. The old early termination fee will only apply for customers who want to get out of a wireless contract for the fir six months.

Subscribers who stay faithful to Sprint's wireless contract after six months will have the benefit of paying a reduced early termination fee based on the new pro-rated ETF wireless contract policy. The new Sprint pro-rated ETF policy will charge only $100 for customers who have stayed on a contract for 15 months. The pro-rated early termination fee policy allows a fee of as low as $50.

However, this new Sprint ETF policy does not apply for old wireless contracts that were signed before Nov. 2. Subscribers have signed a Sprint Wireless contract will be under the old ETF policy that demands a flat amount. Old wireless contracts will not benefit from the pro-rated early termination fee of Sprint's new wireless contract policy.

Sprint also announced other initiatives and programs designed to improve the customer experience in their announcement for the new pro-rated ETF policy. These new Sprint programs include one-on-one interaction between subscribers and sales representatives and detailed summaries that explains transactions.

Wireless Contract Update: Sprint to Prorate Early Termination Fee

Here's some great news for all Sprint subscribers. According to an AP article, Sprint is planning to follow other mobile phone carrier's with pro-rated Early Termination Feesor ETF's.

Now ETF's are probably the most controversial aspect of mobile phone contracts because they prevent customers from moving to another carrier before their existing contracts expired. In the past, national and regional US carriers used to charge a flat rate of around $150 to customers who want to get out of a contract before it expired.

Carriers impose this wireless contract policy to recover the cost of subsidized cell phones and to reduce the expense spent on signing up new customers. Of course, subscribers and consumers are no fans of ETF's because it restricts their freedom to move to other carriers and the fee is quite expensive for those who have multiple handsets or phone lines.

Fortunately, many of these carriers have decided to prorate the Early Termination Fees that bind their customers to their existing wireless contracts. And Sprint seems to be on the verge of deciding to prorate its Early Termination Fee. But what is a prorated ETF anyway?

A contract with a prorated ETF will charge a reduced reduce the fee based on each month a subscriber stays with the plan. This means that a subscriber who has stayed with a contract for 14 months will pay less than a customer who wants to opt out of a contract after three months. The less number of months remaining in a contract, the lower the Early Termination Fee.

Sprint's plans to reduce their ETF charges was revealed by CEO Dan Hesse during an an interview. Hesse indicated that the wireless carrier will be able to implement a prorated early termination fee system as early as December.

Sprint CEO Dan Hesse explained that a new billing software should first be put in place before the prorated early termination fee system can operate. Customers will be able to benefit from Once is has the new software in place, it will deduct a small amount of money from the $200 ETF for each month that a subscriber stays with the plan.

I thin that this is a great update. One that many Sprint subscribers have been hoping for and they won't have to wait long. Sprint has been facing a lot of disputes and lawsuits based on ETF and perhaps this decision will provide a solution. Tune in to this blog for more information on wireless contract policies.

US Carriers Respond to Rising Text Messaging Rates Concerns

Here's an update to the concerns over the rising rates of Text Massaging that are being charged by Wireless carriers.

A few weeks ago, I made a post about Sen. Herb Kohl, chair of the antitrust subcommittee sending a letter to the four major U.S. wireless network providers. The letter conveyed the senator's and consumer's concerns about the doubling of the rates for sending text messages even though the cost involved with sending them remained constant. The letter was sent ot the offices of AT&T, Sprint, T-Mobile and Verizon Wireless.

Now, these carriers have expressed their response to Sen. Kohl's letter on the doubling of the rates for sending text messages. According to an RCRWireless article, AT&T, Sprint, T-Mobile and Verizon Wireless have denied that anything illegal was involved in the doubling of the rates for sending text messages.

According to the carriers, they have offered competitive bulk texting plans that have actually made the costs of sending text messages more affordable for mobile phone to consumers. They also would like to express that thay have suffered an increase in antitrust class-action lawsuits due to the congressional questions about the rising text messaging charges.

T-Mobile's representative defended his company by declaring that charges for text messages charged by the carrier has even dropped by half. He also expressed that the concerns over the rising cost of text messaging are exaggerated and untrue. Sprint and AT&T have also released public responses to Sen. Kohl's letter. Interestingly, Verizon Wireless requested that its response remain confidential.

The wireless carriers want to make an effective response to the inquiry because a number of class-action lawsuits have been filed against them citing Sen. Kohl's letter as the foundation for the complaints. They want to clear up this problem as soon as possible since text messaging is a major part of their revenues.

Well, I expected the major US carriers to respond effectively to this inquiry. Text messaging has steadily grown in popularityover the years so they have to take it seriously. Of course, the antitrust class-action lawsuits that have been filed against them also needs to be taken seriously. Tune in to this blog for more updates on this wireless contract issue and other related news.

Sprint's ETF Lawsuit Loss Could Shake the Industry!

It been a few weeks since I've made a post here. The wireless contract scene has been quite so There wasn't anything to write about. But that's not the case right now. I've just found out that Sprint lost a lawsuit on its ETF wireless contract policy. Let's explore the details of this story.

Apparently, Sprint's early termination fees has violated a state law according to a California state judge when he ruled against the company. The members of the class who sued Sprint for it's ETF were awarded a total of $73 million in reparation for the fees.

The judge's tentative ruling says that Sprint will have to pay $18.3 million to customers who sued over the fees. Sprint should also credit $54.8 million to those who were charged but did not pay the fee. Well, Sprint seems to be in a bind now but the company does have two weeks to contest the ruling.

Not on to the bigger picture. The judge is also considering other lawsuits against telecommunications companies over mobile phone contract policies covering early termination fees. And recently, Verizon Wireless agreed to pay $21 million to settle an identical lawsuit. Overall, things are not looking well for mobile phone carriers.

FCC representatives refused to release any comment on this pivotal court decision however they did indicate that it will not affect the agency's plans on ETF. Currently, the FCC is dealing with lobbying over how best to handle the ETF policies in the wireless contracts of carriers.

The FCC has been asked by various Telecommunications companies to regulate the fees. They want the agency to protect them from class action lawsuits in state courts. The FCC has released information on a plan in which the cancellation fees would be reduced over the life of the contract.

Customers and consumer groups have continually assailed the ETF policies in the mobile phone contracts of cell phone carriers. Perhaps this important decision will fuel the efforts to regulate this troubl;e some fee. Tune in to this blog for more wireless contracts info, news and updates.

Sprint May Change Wireless Contract to Limit Data Usage

Here's some bad wireless contract news for Sprint Data subscribers.

According to sources at the Sprintusers. com forum, Sprint will be updating its Terms Of Service or wireless contract in mid-July and will be capping its mobile broadband data usage at 5GB. A sad bit of news for subscribers who enjoyed the unlimited services of "best data" carrier.

Here's the statement that conveyed the decision:

Sprint reserves the right to limit throughput speeds or amount of data transferred and to deny, terminate, modify, or suspend service if usage exceeds 5GB per month in total or 300MB/month while off-network roaming. Check your subscriber agreement rights on Sprint.com

Before this disheartening announcement, Sprint was praised for offered truly unlimited mobile broadband. Remember that once the new Terms Of Service or Cwireless contract policy becomes active, users who go over the 5GB cap, or a 300MB roaming cap will incur extra fees. This policy will be applied to both network cards as well as tethering mobile phones to laptops.

Sad as it may seem this decision is not out of line with other carriers. AT&T and Verizon Wireless also impose the same limitations to subscribers. I guess, it's in Sprint's interest to place the cap on mobile broadband data usage. However, these means that many Sprint subscribers will migrate to other carriers. I thought Sprint was trying to keep their subscribers from migrating to other networks.

Some experts say that the CAP could be rolled out in advance of the QChat introduction. Sprint may have a vested interested in cleaning up their network throughput because QChat will replace the older iDen Direct Connect and requires EVDO Rev A. The impact of the data cap on the widely anticipated WIMAX rollout is an object of interest for those in the know.

Anyway, this is being seen by some as a good opportunity to cancel their Sprint wireless contract due to a material change in the policy. Disappointed subscribers have the normal 30 day window to cancel without paying the ETF or early termination fee fee. If you have been waiting for a good opportunity of getting out of a Sprint wireless contract then this maybe your chance.

More Class Action Suits Filed against Sprint and T-Mobile

Here we go again. This certainly seems to be the year of class action suits against mobile phone carriers. New just a few days ago. Both of these companies have already been hit with class actions suits this year, and the new complaints are sure to bring new problems.

Let us begin with the complaint against Sprint. This is the third class action suit filed against the wireless network this year. The first complaint filed against the company was based on complaints that Sprint illegally extended the wireless contracts of customers after they made minor changes to their service. In the second complaint, Sprint was accused of misleading consumers by improperly charging roaming fees in connection with two “fair and flexible” plans.

The third complaint against the carrier this year is also on roaming charges. The complaint that subscribers were charged for roaming charges after being told they would not incur such fees under a major calling plan were filed in Florida and in North Carolina. The suit states that,

Sprint knew or reasonably should have known that these representations were materially false, deceptive or misleading because it not only routinely charged PCS Free and Clear Plan customers roaming rates for calls made and received ‘on the network,’ Sprint even charged these customers roaming rates for calls in their home cities where the plan was sold and where Sprint purportedly provided comprehensive network coverage. In fact, Sprint not only charged its customers roaming charges for calls made on the Nationwide Sprint PCS Network, it even charged them roaming charges for calls received on the Nationwide Sprint PCS Network.”

Roaming charges are certainly controversial. People have questioned how carriers were calculating these charges and it often results in class action suits or wireless contract disputes. This recent complaint against Sprint accused the company of charging customers even if they were making calls in the location where they purchased their plans. Customers claim that they were even charged for roaming even if they only received the calls.

Let us take a look at the company's s wireless contract. Maybe we can get some info on how the carrier charges customers for roaming. Here is the statement from the wireless contract of Sprint.

"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.).

Interestingly, the terms and conditions of Sprint affirms that customers may pick up roaming coverage within and outside of their coverage areas. however, the customers claim that they were told that they will not incur these fees because they were under a major wireless plans. I guess we'll have to leave it to the authorities to figure this mess out.

Let us move on the complaint against T-Mobile. The wireless company also faces a class action suit filed in California federal court. The complaint accuses the company of not providing enough information on an “upgrade fee” that are applied on current subscribers who want to get new mobile devices.

T-Mobile’s use of wireless contract clauses that impose mandatory arbitration and waive the right to participate in class action suits was also attacked. here is a sample of this type of clause taken form T-Mobile's terms and conditions:

CLASS ACTION WAIVER. WHETHER IN COURT, SMALL CLAIMS COURT, OR ARBITRATION YOU AND WE MAY ONLY BRING CLAIMS AGAINST EACH OTHER IN AN INDIVIDUAL CAPACITY AND NOT AS A CLASS REPRESENTATIVE OR A CLASS MEMBER IN A CLASS OR REPRESENTATIVE ACTION. NOTWITHSTANDING SEC. 22, IF A COURT OR ARBITRATOR DETERMINES IN A CLAIM BETWEEN YOU AND US THAT YOUR WAIVER OF ANY ABILITY TO PARTICIPATE IN CLASS OR REPRESENTATIVE ACTIONS IS UNENFORCEABLE UNDER APPLICABLE LAW, THE ARBITRATION AGREEMENT WILL NOT APPLY, AND YOU AND WE AGREE THAT SUCH CLAIMS WILL BE RESOLVED BY A COURT OF APPROPRIATE JURISDICTION, OTHER THAN A SMALL CLAIMS COURT.

All the wireless contracts I've read has their own version of these clauses but a federal circuit court in San Francisco ruled that T-Mobile’s terms and conditions are unenforceable. I guess we'll have to see the lawyers of both parties duke it out. Perhaps the new consumer bills being drafted in congress will provide a way to solve these disputes.

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.

Second Class Action Suit Filed Against Sprint Nextel

It seems that 2008 is not a good year for Sprint Nextel.

A few days ago, the major wireless network was just hit with another class action suit. The first complaint the company received involves customers accusing the network of deceiving customers by illegally extending their wireless contracts after they made minor changes to their service. This time, Sprint Nextel is being accused of misleading consumers by improperly charging roaming fees in connection with two “fair and flexible” plans.

Well, Sprint is not the only carrier that has been hit with class action suits this year. A few months ago, Verizon Wireless was sued for charging unjust early termination fees while T-Mobile was accused charging customers for receiving unwanted text messages. Consumer Rights groups and other activists have been on the offensive to condemn some of the less consumer-friendly policies of wireless contracts.

However, the year has been very tough for Sprint Nextel. The major adjustments began last year when the company appointed Dan Hesse as the new CEO to curb the significant subscriber losses that has hit the company. The uncertainty about the WiMAX plans also brought negative effects to the company and decreased its stock value. There were also rumors of a lay-off involving thousands of employees as a result of the company trying to keep up with their rivals.

Last week, Sprint Nextel also announced that they have decided to consolidate the company's operational headquarters and corporate headquarters at its Overland Park, Kan., campus. They are abandoning their traditional campus in Reston, Va. The reasons for this decision involves
improving operational performance, cutting travel expenses and optimizing the real estate assets of the company.

Anyway, the point is that Sprint Nextel does not really want to hit more bumps as the company is trying to recover from its losses suffered at the final quarter of last year. The class action suits that they are facing will slow them down. Let's take a look at some of the details of this new lawsuit.

Here is a statement from the 20-page suit filed in the U.S. district court in Charlotte, N.C.

“All roaming fees assessed to [Myra] Johnson were wrongful because defendant Sprint did not know and/or failed to ascertain her physical location at the time the calls were place or received to determine whether roaming charges could be properly assessed against her, which is a breach of the terms of the contract,”

And hereis the Roaming statement in Sprint Nextel's wireless contract,

"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.).

However, the allegations against Sprint is related to their billing process. The complaints is on the company's ability to determine the location of the caller and thus they may be charging them unfairly. The roaming policy does state that roaming coverage may be picked up even within the network so customers have to be wary when they make roaming calls.

When asked to comment about this latest class action suit, Sprint Nextel representatives responded that, “We’re still reviewing the complaint, so we can’t comment on the specific claims. We take great care to ensure that our customers understand the scope of service offered through their plans with Sprint.”

I hope Sprint can sort out these suits that were filed against them. they have been suffering a lot of losses and they can ill afford any wireless contract disputes or any major problems.

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.

Sprint is the Next Target of Class Action Suit

The Class Action Suit menace has struck again.

In this early part of the year, major wireless carriers have been hit with class actions suits for a variety of reasons. Verizon Wireless was sued over the unjust early termination fees they charge in exchange for freedom from their wireless contract. Some consumers also filed a class action suit against T-Mobile for being charged with receiving unwanted text messages. This week the victim is Sprint Nextel Corp according to this RCR News article.

The complaint against Sprint Nextel Corp. stems from allegations that they are defrauding their wireless consumers. The complainants assert that the wireless network has misled and deceived them by extending their wireless contracts without their consent.

This statement from the plaintiffs in the 23-page complaint that was filed in Illinois federal court will explain,

“Defendants have misled and deceived consumers by extending consumers’ contracts for up to two years without providing adequate notice or obtaining meaningful consent to a contract extension when consumers made small changes to their telephone service, such as adding extra minutes or purchasing a new telephone; when they responded to solicitations by defendants for additional products and services; and when the consumer received ‘courtesy discounts’.”

This is a serious charge indeed. I guess you realize that being locked in a wireless contract without your consent is a problem. You will be forced to commit to that contract for at least two years and you will have to pay a fee to opt out of the contract. But the biggest issue here is the alleged deception and fraud of customers.

Being accused of deceiving customers is costly because the competition in the mobile phone industry is intense. If customers associate Sprint with shady practices and deceptive techniques then they will do business with other wireless networks. However, Sprint has protection from class action suits. The wireless contracts they require customer to sign have statements that guard against class action suits. Sprint Nextel's terms and conditions state that,

We each agree not to pursue arbitration on a classwide basis. We each agree that any arbitration will be solely between you and us (not brought on behalf of or together with another individual's claim). If for any reason any court or arbitrator holds that this restriction is unconscionable or unenforceable, then our agreement to arbitrate doesn't apply and the dispute must be brought in court.

And another wireless contract statement from Sprint also expresses that,

TO THE EXTENT ALLOWED BY LAW, WE EACH WAIVE ANY RIGHT TO PURSUE DISPUTES ON A CLASSWIDE BASIS; THAT IS, TO EITHER JOIN A CLAIM WITH THE CLAIM OF ANY OTHER PERSON OR ENTITY, OR ASSERT A CLAIM IN A REPRESENTATIVE CAPACITY ON BEHALF OF ANYONE ELSE IN ANY LAWSUIT, ARBITRATION OR OTHER PROCEEDING.

These statements clearly indicate that Sprint has anticipated that they might be under sieged from class action suits. The complaints that have signed the contract may be bound to these conditions. However, the law will decide what will happen in the end.

So far, 2008 has not been great for mobile phone networks. Class action suits have been filed against them and they stand to lose a lot if the complainants emerge victorious. Verizon for instance may have to shell out billions in early termination fee refunds. The bad publicity these suits generate can also have negative effects on the networks.

I hope that this complaints will move them into initiating fair business practices and more customer friendly programs.

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.

Wireless Contracts and Credit Ratings part. 1

Do you have a bad credit rating?

In this modern world, an undesirable credit history can make life difficult. You will find it hard to take out a loan or be approved for a credit card application if your credit rating is terrible. Now, the effect of bad credit also extends to the mobile phone industry.

The wireless contracts of many cellphone networks have certain policies when it comes to dealing with customers with bad credit. Some contracts may ask for a considerable down payment or other kinds of penalties from a customer. Wireless phone service providers may also demand a credit check to ensure that their customers maintain good credit.

Let us take a look at the contracts of some cellphone service providers to see what they say about the credit history of potential customers. Let us begin with Alltel, one of the top mobile phone carriers.

The Credits and Deposits section of Alltel's Terms and Conditions states that,

You authorize us to ask credit-reporting agencies for credit information about you. We may, in our discretion, require you to submit a deposit as security for payment of charges. An additional deposit may be required if either the amount or number of Services is increased or your credit rating changes. Simple interest will be paid on the cash deposit for the period it is held by us and will be refunded if satisfactory credit has been established or upon termination of service. We reserve the right to apply the deposit to any amount due and unpaid. We may require a guarantee of payment by an individual or entity approved by us.

As you can clearly see by this statement, having a good credit rating is a great advantage when getting a plan from Alltel. You will need to authorize them to access your credit records before you can use their services. They may also ask you for an additional deposit if your credit rating changes or if the amount of services you use increases.

Let's check out Sprint's policy on credit rating. Their online Terms and Conditions states that,

We agree to provide you Services on the condition you have and maintain satisfactory credit according to our standards and policies. You agree to provide information we may request or complete any applications we may provide you to facilitate our review. We rely on the credit information you furnish, credit bureau reports or other data available from commercial credit reference services, and other information (such as payment history with us) to determine whether to provide or continue to provide you Services. The Services we offer you can vary based on your credit history. We may at any time, based on your credit history, withdraw or change Services, or place limits or conditions on the use of our Services. You agree to provide us updated credit information upon request. We may provide your payment history and other account billing/charge information to any credit reporting agency or industry clearinghouse.

Sprint makes it clear that unless a customer maintain a rating that satisfies their standards, they will not provide services. You have also to provide them with the required credit information so that they can decide whether they will allow you to use their services.

Sprint customers will also be required to provide updated credit information when their carriers request for it. The company may also provide credit reporting agencies or industry clearinghouses with your payment history so you have to keep up with your bills.

That's it for this post. I will tackle the credit rating policies of other wireless carriers on my next post so that my current post will not bore you. I hope that this blog post has provided valuable information and that your credit history will improve or remain immaculate.

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.

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.

Some Tips on Ending Your Wireless Contract

Do you want to get out of the clutches of your current two-year contract? Well, you can pay a termination fee to be free of it. But what if you don't have money to pay an early termination fee? I did some research online and found that there are ways that can help you squirm your way out of a wireless carrier contract without paying the termination fee.

Often the best way to get rid of a contract is too opt out of it as soon as possible. You can cancel a wireless contract with some carriers if you just signed up for service. You simply have to call customer service and inform them that you would like to cancel your plan. However, if you have used the service , then you may have to pay a prorated amount. Here is a piece from Verizon Wireless' customer agreement,

You can cancel (if you're a new customer and not assuming another customer's service) WITHIN 30 DAYS of accepting. You'll still be responsible through that date for the new service and any charges associated with it.

One of the thing's you can also do is to find someone who may be interested in purchasing your unwanted contract. You can try looking for a buyer online. Their are websites that specialize in transferring the financial responsibilities of cell contracts from one person to another. It may be possible to transfer the plan over to a recipient without paying the early termination fee as long as the recipient meets the minimum qualifications for the contract.

You could also try to register a change of address with your carrier or move to a different location to worm your way out of your contract. If you call and complain about not getting reception after you transfer to an area your cell carrier doesn't have service then perhaps you will be free from your contract. Your contract maybe null and void if your service provider can’t offer access in a given area. Look at this statement from Alltel's Terms and conditions,

A change in your service address or the location to which any Service is provided to you may constitute, at our sole discretion, termination of the Services or an increase in the prices you must pay for the Services.

It would also be a good idea to turn into news about your carrier's Terms of Service. If your Service Provider may make major changes to you plan, they may automatically void the contract and give you as much as 30 days to cancel it. As stated by Sprint Nextel's Terms and Conditions,

Except as provided below, if a change we make to the Agreement is material and has a material adverse effect on you, 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.

I'm sure there are more ways of canceling a restrictive wireless phone contract and that you can also find them. You can find a lot of good ideas online if you you do your research or asked the people you know. Another good way would be to read the contract you signed more carefully. you may find a section that would help you become free of the contract and become available to sign another that would suit you better.

Better Customer Experience form Sprint Nextel

There is now no need for Sprint customers to extend their contracts when changing their rate plans. With its new programs driven towards better customer experience, Sprint became the first wireless carrier to give customers additional contract flexibility.

Sprint Nextel is a company that offers a comprehensive range of wireless and wireline communications services. These services will bring the freedom of mobility to consumers, businesses and government users. The company prides itself in developing, engineering and deploying innovative technologies, industry-leading mobile data services; instant national and international walkie-talkie capabilities; and a global Tier 1 Internet backbone. Its two robust wireless networks serving about 54 million customers at the end of the third quarter 2007.

The company has decided to extend its Right Plan Promise policy to six months allowing customers to benefit from more contract flexibility. Customers are now able to change their rate plans without having to renew their contracts. In the next year, a new prorated early termination fee (ETF) policy will be implemented.

Of course, there are other programs that will improve customer experience such as the:

Welcome Call

A customer care representative will welcome a customer to Sprint after a he or she activates service. The representative will then thank the customer for his or her business. Any questions from the customer will be entertained by the representative to ensure the customer feels fully informed about the product and/or plan. Customers are sure to become fully educated about the Sprint products and services they purchased with this great process.

Premier Loyalty Rewards

Sprint customers will have even more enhanced experience next year because the company is planning to add new and innovative reward programs for long-time customers.

Overage Courtesy Call

In this program new customers' wireless usage during the first six months of service will be monitored. The purpose of this will be to ensure that new customers are on the right plan. They will be then notified during the first time they have incurred significant excess voice, text or data overage charges. Then a new plan will be offered to customer to help them avoid future overage charges and better meet their wireless needs.

Are you interested with Sprint's new programs? If you are, then you can check them out at their
official website.