AT&T's Smartphone Plans Overhaul and Wireless Contracts

AT&T has recently announced major changes for its smartphone plans. The carrier has decided to dissolve its unlimited data plan and now offer two-tiered data plan pricing. Since changes in plans allow consumers to terminate their wireless contract without any fees, some consumers are wondering if this will be the case with these new plans.

But before we answer that, here's a brief over view of AT&T's new two-tiered data plans.

DataPlus plan: offers smartphone customers 200 megabytes of data for $15 a month. An additional 200MB of data for $15 until the end of that billing cycle is offered if customers exceed 200MB in a monthly billing cycle.

DataPro plan: 2 gigabytes of data for $25 a month. An additional 1GB of data for $10 will be offered to those who exceed 2GB during a billing cycle.

Now to the important question. Will these new plan allow one to cancel your current mobile phone contract without paying any fees?

Unfortunately, the answer is no. Why? Well, these changes do not require existing customers to switch to the new tiered data service plans. Consumers can keep your existing unlimited data plan so no material changes has affected the terms of your contract.

Only a material change such as an increase in charges can allow a consumer to terminate a contract without incurring an early termination fee.

That's it for this post. Stand by for more news and updates on wireless contracts for mobile phones.

Terminating a Wireless Contract to get the iPhone 4G

The release of a new iPhone always triggers a consumer migration from other carriers to AT&T. Consumers find all sorts of ways to abandon their contract just to get Apple's prized smartphone. This years iPhone 4 is expected to be no different. Here are some points that you might want to consider before terminating your mobile phone wireless contract to get the iPhone 4.

First you need to think about the ETF or early termination fee of your carrier.

Verizon too has two tiers of ETFs, $350 for smartphones, and $175 for feature phones.

Sprint's ETF starts at $200 and goes down by $10 every month beginning after the first four months.

T-Mobile ETF is $200.

Then you need to consider one you have terminated you contract. What to do with your old phone. Well, there are plenty of options.

First you can get some of your money back by selling it on Craigslist or eBay.

You can also donate your old handset to charity, or one of the many programs that delivers old or unwanted handsets to members of the military, or people in developing countries. You can also donate it as a cell phone for seniors.

That's it for this post and good luck with ditching your old wireless contract for the new iPhone 4. Tune in to this blog for more on wireless contracts news and updates.

Class Action Suit Against Verizon Wireless Now Allowed

Here's some good news for consumers who have some wireless contract grievances against the nation's largest carrier. Last month, a federal appeals court has ruled that Verizon Wireless customers can resolve disputes over alleged fraudulent cell phone charges on wireless contracts as a class.

The former ruling only allowed consumers to dispute fraudulent cell phone charges on wireless contracts individually through arbitration.

Verizon's wireless contract states that disputes should only be arbitrated individually. However, various consumer advocates say this can unreasonably favor companies since it makes arbitrations, especially small claims, very expensive.

This decision made by the U.S. Third Circuit Court of Appeals in Philadelphia is more consumer friendly towards those who wish to dispute any wireless contract problems a s a class.

That's it for this wireless contract update on class action suits. Tune in next time for more on the latest happenings in the world of cell phone contracts.

The FCC's Advice on On ETFs of Wireless Contracts

The recent increase in early termination fees more mobile phone contracts of AT&T and Verizon Wireless has moved the Federal Communications Commission to issue advice addressed to cell phone consumers. The FCC has released a set of guidelines to help educate consumers on early termination fees.

The FCC hopes that this set of guidelines will ensure that consumers make informed decisions and avoid any extra charges when purchasing a contract mobile phone.

Here are the Federal Communications Commission guidelines on early termination fees:

• When signing up for a new cell-phone service, make sure you are fully aware of any “early termination fees” (ETFs) that may be associated with the contract you are signing. The salesperson may not mention an ETF, so be sure to ask.
• Ask how much the early termination fee will be and how it is prorated. Prorating means that the amount of the ETF you are responsible for decreases month by month. But different carriers prorate different plans in different ways. For example, one $240 ETF might decrease by a steady $10 a month over two years, while another high ETF might drop by only $5 a month until the last four months.
• Ask if it would be possible to buy a handset at full price and avoid an ETF.
• Think before you make any changes in your contract, such as buying a new phone or more minutes that your carrier might offer. This could trigger a new two-year contract with another ETF.
• Ask about the trial period during which you can cancel the service without an ETF penalty. This is typically 14 to 30 days. Also ask whether you will get your first bill before the trial period is up – and if not, whether you can find out about your costs during the trial period in another way.
• If you use your phone sparingly, consider avoiding the whole ETF issue by buying a pre-paid phone. These phones do not involve a contract.

That's it. Hopefully, these guidelines will lessen the number of mobile phone contract disputes. However, I'd prefer to have the FCC impose stricter policies tha would prevent carriers from implementing fees that are unfair towards consumers.

AT&T to Increase ETF for Smartphone Wireless Contracts

AT&T has become the second major US carrier to increase its ETF in the last several months. Verizon decided to increase its charge for early contract termination for mobile phone contracts last November. Now, AT&T is set to ramp up its early termination fee next month.

The folks at WSJ blew the whistle in this upcoming change in AT&T wireless contract policy. The carrier plans to almost double the fee for terminating a contract for its smartphones and laptops. New contracts signed for smartphones and laptops next month will carry a hefty $325 which will fall by $10 for each month a customer stays in his/her contract. The previous fee was set at $175.

On the other hand, AT&T decreased the fee for its feature phones. Perhaps increasing the fee for these devices will be too much.

The early termination fee for AT&T feature cell phones will be $150 and will fall by $4 for each month a customer stays in his/her contract. The previous fee was also set at $175.

This decision is sure to catch the ire of the FCC. The commission recently questioned carriers about their practices and stated that competition has "dramatically eroded and is seriously endangered by continuing consolidation and concentration in our wireless markets."

Well, see how the market reacts to this new development. Tune in to this blog for more news and updates on US wireless contracts for mobile phones and other devices.

ETFs Effective in Preventing Consumers from Switching Carriers

If you've followed this blog, then you'll be familiar with ETF or early termination fees. This penalty is charged to consumers who want to opt out of a wireless contract before its expires.

I recently read a stud showing that a significant number of consumers who are dissatisfied with their carriers chose not to switch to another service provider to avoid paying the heavy early termination fee.

The Government Accountability Office (GAO) recently made a study on cell phone complaints and the ways that the Federal Communications Commission (FCC) deals with those complaints. One of the interesting findings of this GAO study show that 42 percent of consumers who wanted to switch carriers decided not to because they did not want to pay an early termination fee.

The research also show that ETF or early termination fees is one of the one key reasons for consumer dissatisfaction.

This illustrates the restrictive aspects of charging these fees. A representative said that, consumers should not be chained to their wireless provider for years through exorbitant early termination fees.

And I agree with him. Thankfully, congress has responded with legislation like the "Cell Phone Early Termination Fees (EFT) bill" to protect consumers from the unfriendly fees from wireless contracts.

That's it for this post on the crippling effects of wireless contracts. Stay tuned for more on this and other related topics.

AT&T Wireless Contract Customers Decreasing?

We've recently posted a report showing that prepaid services are starting to dominate the wireless phone industry. Well, here's another clue indicating that wireless contract customers are in decline. According to AT&T's 1st quarter report, the carrier only signed 513,000 new wireless contract--or postpaid--subscribers.

While half-a million subscribers may seem to be a huge number, this figure is down 43 percent from AT&T's new contract customers from the previous year. The carrier expected to add around 600,000 contract customers.

This trend indicates that new customers will likely sign up for prepaid service rather than contract services going forward. However, the impact of this trend may not be as alarming as it seems.

Consumers that sign wireless contracts are valuable to carriers because they pay more. A decrease in their number may seem to be bad for business. However, contract customers are expected to continue to spend more each month on service so the impact of the loss in growth will not be significant.

AT&T will also make adjustments to its prepaid offering in an attempt to take advantage of this new wireless phone service trend.

That's for this wireless contract update. Stay Tuned for more news and updates on this topic.