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.

Ask These Questions Before you Sign a Wireless Contract

Making a decision to signing a wireless contract to avail of the services of a mobile phone is a significant action. You have to consider a lot of factors because signing a contract has serious implications. If you violate the terms of a contract, you will find yourself facing fees, penalties and other potential problems.

Let me give you some questions that will help you choose the right wireless contract that will satisfy your needs.


How much will you pay over the period of the mobile phone contract?


This is an essential question that you need to answer before you sign on the dotted line. If you found out that the amount you will have to pay over the duration of a wireless phone contract is beyond your budget then you need to make a decision. You can decide to sign up for a cheaper contract or make adjustments so that you will be able to afford the contract. I think choosing a more affordable contract is the more sensible choice.


How long will be locked into the contract?

Some wireless contracts last only for a year while others may cover a customers for up to three years. If you are feeling cautious then you should probably get a short term contract. This way you won't have to wait for long before being free from your contract. If you have a faulty device, then you won't be stuck with it for a long period of time.

There are other factors to consider when it comes to the length of a contract. For example, a long term contract will usually have cheaper activation fees and better benefits than short term contracts. They may even offer some features that are not available on contracts that last only for a shorter period of time.


How much will I pay if I want to quit my wireless contract?

After you have committed to a contract, you may encounter some problems that would encourage you to cancel your commitment. Maybe you found out that another carrier is offering a better service. There are other reasons that might compel you to cancel your wireless contract. That is why you have to know the amount that you might be charged if you want to quit your contact.

Some wireless contracts now charge a prorated early termination fee. This means that the fee you will pay for canceling your contract depends on how long you have progressed into your contract term. If you have only a few months left in your contract and you want to cancel it then you will be charged with a lesser fee. There are also some carriers who continue to charged a fixed early termination fee. Signing a contract with an early termination fee is a better option in my opinion.


Will a mobile phone be included in the contract?

I have observed that some mobile phone companies are not inclined to providing a mobile phone handset as part of their contract wireless contract. This means that the conditions of the contract and the service provider will determine if a cell phone will be included.

There are some wireless plans that offers a free mobile phone as part of the deal. However, in some of these offers, the cost of the device is included in the fees and charges over the period of the contract. You have to make sure that a phone is actually really free or if you'll have a discount as part of signing the contract.

There are just some of the questions you have to reflect on before you commit to a wireless contact. Asking questions is always a good idea if you are unsure about a product or you want to get more information. Signing a wireless contract is an important decision so it's always best to make sure that you will get good service for your money.

Some Things to Look at before You Sign a Wireless Contract

Many cell phone companies are offering attractive mobile phone plans to encourage people to hire their services. For example, a few major wireless carriers just announced that they are now offering plans that provide unlimited calling texting. However, before you can enjoy this great wireless plan benefits you must sign a wireless contract.

The benefits and promotions that go with some postpaid wireless plans are tempting but there a few things you need to look at before you sign your name on the dotted line. Keep in mind that a contract will keep you locked into a plan and carrier for at least a year so you have to choose a plan that wont give you regrets.

One of things you need to focus on before you sign a wireless contract is the trial period. Wireless carriers usually grant their customers a trial period before they commit to a certain wireless contract. You should use this time to judge if the device or the features of a wireless plan fit your lifestyle and your budget.

You should also keep an eye on the activation fee before you commit to a wireless contract. Long term contracts usually have less expensive activation fees than contracts that last only for a year. You can also generally get more discounts on a long term contract but there also some risks involved. Since the you will be stuck with a plan for a long time, you may also spend more in repairs and other expenses. You will also have to spend more time being stuck with an unwanted contract if it turns out that your lifestyle does not match your wireless plan.

Looking at your usage patterns is also a good idea before you sign on the dotted line. If you want to save money then you should make sure that the wireless plan you choose will match your usage pattern. If you sign a wireless contract that does not match your needs then you might find yourself paying a costly monthly fee. You might even discover that you don't need to sign a contract after a careful examination of your usage pattern. A prepaid wireless plan that does not require a contract might be more suitable for your calling practices.

You should also look at the the penalties or fees that are attached to a contract. The biggest fee that you can incur is probably the early termination or the penalty you incur for canceling a contract before the contract term expires. It would probably be smarter to go for a contract with a prorated termination fee so that you won't be forced to pay the full amount if you have only finished a few months of your contract term.

These are just some of the factors that you need to look into before you sign a mobile phone contract. It is always important to examine every angle before you make a decision. Asking questions is also a good idea as well as comparing the offers. I hope that this post gave you some useful info and insights. I also hope that you'll be able to sign on a wireless contract that will fit your needs.

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.