You Mean Cell Phones Aren't Free?
from the something-for-nothing dept
Business Week's got a slightly odd story that's basically complaining about the cost of replacing a broken cell phone. It tells the story of a New York woman whose phone died, and her carrier wouldn't replace it for free because they said she'd damaged it, which she disputes. In any case, she didn't want to accept any of the options the operator gave her: get a new phone at a cheap price by renewing her contract for two years, paying $175 to break her contract and switch to another provider or just pay full retail price for another phone. Her tale is then followed with somebody from a consumer group complaining about high replacement costs -- then about the high early-termination fees carriers stipulate in their contracts. While long-term contracts with high ETFs aren't much fun, they do allow operators to recoup the handset subsidies that make phones so cheap to begin with. For a supposed consumer advocate to complain about expensive handsets, and then about contracts and ETFs, is more than a little misguided. Operators have for some time been complaining about the high cost of subsidies, so doing away with them at the expense of high ETFs might be a trade they'd be willing to make. But that gets back to the original complaint -- that phones cost too much for consumers. While operators deserve plenty of scorn, this is one case where these consumer advocates are trying to have their cake and eat it too.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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Re: by JJ
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cell are mad expensive
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Early Termination Fees Should Be Pro Rated
The reality is that cell phone companies use subsidies as an excuse to lock customers into long term contracts. In addition, the cell companies demand "early termination" fees that are un-realated to their actual damages. It is in the best long term interest of consumers that these practices be reined in by proper regulation of public utilities companies.
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Re: Early Termination Fees Should Be Pro Rated
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Re: Re: Early Termination Fees Should Be Pro Rated
oh wait profit maximization. nevermind.
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"they said she'd damaged it, which she disputes". uh-huh. " she didn't want to accept any of the options the operator gave her" uh-huh.
I'll guess there's a good chance the truth is she did something to damage the phone, she didn't want a lesser phone as a replacement and she wanted it for free.
Cell phones are fragile, even the best of them. Drop it, get it wet, etc., yeah, it'll stop working. But amazingly, the owner always claims, "not my fault".
Hey, if you're not good at taking care of things, buy insurance.
Older re-furbished phones are cheap. If it's network compatible, they'll program it for free a small fee. Nope, probably won't have all the bells and whistles.
Deal with it. I've heard the gloating "I wrecked my phone but made them give me a new one/filed an insurance claim" stories too often.
Get over it. Cell phones aren't covered by The Bill of Rights.
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ETF's and Cell phone Costs
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Switching Companies
That's like buying a PC that only works with AOL internet. (Yes, I do remember the free PC deals a few years back.)
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Insurance deductable
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This is a CDMA problem
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In India, and many other similar markets, operators provide services, and people buy cell phones from any shop they want (could be Walmart in US). The result is, handset prices are very cheap(you can get one for INR 3K = USD 80 approx. ). Operators compete to provide lowest cost services, phone manufacturers compete to provide lowest cost handsets. Operators get more customers, phone manufacturers get more numbers( and are able to launch new phones quickly) and Customers gets cheap price. Only thing that loses is pure shamless brutal profiteering.
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I can understand her point
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Re: I can understand her point
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Create Demand by Giving It Away
Ask this - would you take more care with something that cost you $300.00 or $30.00?
While I do think people are dumb as hell when it comes to cell phones (I can't even convince my wife that we don't need the damn things) and they don't understand the basic economics of the transaction they sign into, the companies haven't helped matters any by hiding the real cost, locking phones, etc. Last time I checked, I didn't need to buy a special phone to plug into my wall and use the phone service at my home, why can't I just buy a compatible phone from anywhere and use that?
Oh that's right, because the phones are locked.
and dont' even get me started on the proprietary data services that don't let you do anything unless it goes through their servers. . .
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No Contract! No EFT!
25c a minute but then I don't yak all day on it, and it only cost me $10 at Worst Buy.
A crappy Nokia Shorty but it does what I need.
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Re: No Contract! No EFT!
If more people looked at it this way the industry would be forced to change. Unfortunately there are too many people who think a monthly cell bill under $100 is "great" and couldn't exist without text messaging.
Barum was right.
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Uhn uh
Ok, so if they know the phone is going to last a year, why not recall the sucker or at least give us the option of another phone, even if I have to sign up for another year. I'm not going to switch service because for my area this particular company has the best service.
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Re: Uhn uh
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Cell phones ARE cheap
With most phone companies offerring free phones every time you extend the contract, I don't know anyone who doesn't get a new phone every two years to begin with (whether they switch carriers or not). And I know that I personally have 3 cell phones at home collecting dust (Moto T730, V60, and StarTac) that could be used if something broke. Who doesn't these days?
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History lesson
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The Problem Is Phones Are Locked
It's been more than twenty years since the local Bell operating company has been allowed to provide a phone with a new phone line install. Used to be the Bell company was the only source for your home phone. When the breakup came, and Bell companies were prohibited from providing phones, a whole new market for phone providers opened.
The same thing has to happen with cell phones. Prohibit providers from locking the phones and offer the phones on the open market. With the Wal-marts of the world selling unlocked phones, your cell will become a true throw-away.
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Re: The Problem Is Phones Are Locked
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Pay As You Go
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Ya! More power to the man!
Get the picture? Frankly, I prefer to rely on my own intelligence. I've thought about my cell phone costs and find them reasonable. As always, if you don't like a particular product or company's business model, DON'T FUCKING BUY IT! If you do, don't fucking complain. There is no mystery about the early termination fees. You know what you're getting into.
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ETF's
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cell phones not free
If you do not like the terms of the contract, don't sign it, do without.
waa!
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Consumers are the problem
It also might be noted the the carriers don't make the phones, they do just provide the service. Last time my TV broke I didn't call the cable company and demand a free TV to replace it with. I also didn't run down to their office and yell about changing to Directv if they didn't give it to me. After all I'm pay them $150/month, shouldn't I get a free TV.
Be a smart!
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Re: Consumers are the problem
Bad Analogy: Change to TV to Digital Cable Box, then we might have something.
Sure your cable company doesn't make thier own cable boxes, but they are provided by the cable company. You can't use your digital cable without the cable box. So if you cable box stops working and you can't watch TV, of course you are going to call the cable company.
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Re: Re: Consumers are the problem
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Toilet Water
Like most people I have stopped expecting things for free but you would think that they would be at least a little kinder and understanding, simply from a customer service stand point. I mean of course I don't expect them to give you a free cell phone every other day, this would get abused more then a young boy at Neverland ranch. We all know someone that throws them when they get pissed or simply get's drunk and drops it in the toilet or leaves it at a bar. The thing is though it really wouldn't be that hard to keep a record of repairs/replacements. If you see a trend growing then you charge. Perhaps then when you're contract ended you wouldn't be in such a rush to find better service.
It seems a lot of people are pissed at cell phone companies and this article seems to cover a number of issues. A cell phone is a pretty personal thing between what you have stored in it and what you've done to it, and yes you can get one cheap on e-bay or stealitback.com but of course you run the chance of it being already dropped in a toilet and not knowing it. Good luck...
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They still lock you in!!
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Don't get a cellphone!
yeah, thats just crazy enough to save you 50 bucks a month! my god, thats 600 bucks per year! way more than a landline phone in your home!
seriously, if you cant afford a cellphone, then you really don't need one. end of story. however, I do agree that you shouldn't have to sign a contract to get services from a provider. what are we, hollywood actors?
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Not exactly as it seems..
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Re: Not exactly as it seems..
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Where do you live? In Orlando, FL bellsouth (the only locals in my area) charges over $50 for a "basic" landline per month. Sure, theres VOIP (which I use) but thats an additional $30 over the $55 I pay for cable and it still doesn't provide the features of either the landline or cellphone. Luckly, work provides a cellphone so I get better 911 service than both voip and landline.
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Re: Re:
I live in Michigan.
That does sound expensive. you can buy a telephone for 5 dollars for your home and whatnot for services, or you can spend 80 to 800 dollars on a cellphone and the same servicce charge, maybe with a discount for signing a contract for a year or two, which would cost you an arm and a left ass-cheek to break.
the prices may end up pretty close, but the truth is that nobody really NEEDS a phone at all, especially a cellphone. to say "having a phone is convenient" is an understatement, but should it really cost as much as t does? I think not.
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You don't need an expensive one. a normal land line in your home with no call waiting, no caller id, no bullshit like that, will suffice for neccessary communication.
phones aren't the only form of communication.
Generally, you are only in serious trouble if you don't show up three days in succession, in which case is generally considered a voluntary quitting.
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Why buy phones from the service providers? Legally buy an unlocked phone and use it with whatever provider you want without the "two-year" sentence.
My 2 pennies...
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Verizon still sells a $14 flat rate basic service.
Verizon Wireless Freedom Value plan is $29.95/mo, includes unlimited local, regional toll and long distance calling in the US. But NO extras. None. Zero. None.
Both exclude the usual taxes and fees, etc. but you can do the whole thing for about $50 per month.
But NO extras. A small detail that most people just can't deal with and they quickly add about $50/mo to the bill.
Phone service is like dieting. Saying you're going on a diet is easy. Doing it, that's another matter.
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Unlocked Phones
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Re:
What is priceless is being cut-off in an intersection at a yellow light and the person doing so being completely oblivious because they are talking on their cellphone. You call that safety? Cellphones are nice if you get in an accident -- but not if they are the cause of it. Cellphones cause more problems than they they fix. You can't argue that.
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Verison Early Termination Fee
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Either you signed additional service argeements or they wrongfully charged you an ETF. After completion of your original service agreement (usually 1-2 years) you become a month-to-month customer and can cancel effective the end of the current billing cycle without incurring an ETF.
http://www.verizonwireless.com/b2c/globalText?textName=CUSTOMER_AGREEMENT&jspName=footer /customerAgreement.jsp
If this happened recently, contact them for a refund or file a complaint with the NC Utility Commission.
http://www.ncuc.commerce.state.nc.us/consumer/ucconsum.htm
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Bottom line is paying attention while you drive.
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Re:
which is why I'm advocating the use of land-line phones instead of cellphones. Everyone is an idiot on the road at one point or another, and I'm not one to say "blame to trigger," but in this case there is a perfectly fine alternative -- lane line phones. There's no reason a person should be holding a phone to their face while driving.
I'd feel more comfortable knowing everyone carry a gun in their glove compartment than everyone hold a phone to their face at all times. At least that way, I've got a gun too. What am I gunna do with a cell phone, throw it at them?
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this is turning comical.
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Nobody really needs a phone at all
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CELLPHONES AAAAAAArrrrrrggggggggghhhhhhhh
I have a Virgin Cellphone and most of my experience is with them. The one downside everyone should know about. Is according to their TOS/Terms of Service you can only change your Cell Phone Number 2 or 3 times for your account. If you buy something shouldn't you have the freedom to do as you please. And if it is a matter of cost for changing the numbers, they could charge a fee after the first 2 number changes etc. I don't like a company that tries to limit your freedom on a product like that. If I buy a toaster and want to shove crayons in it, hey it is my toaster. That is a little extreme, but you get the point.
http://www.sitekreator.com/eroma
http://mywildrose.blogspot.com
Just some of my photos:
http://www.fotolia.com/partner/42484
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Get a friken pay-as-you-go phone
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Deal with It!!!!
Or, accept the price of replacing it. I pay 4.99 a month for Verizons insurance. i have a Treo 600 phone. I paid 61 dollars on ebay for the Treo 600. It is a PDA phone with every fricken OPTION i would need. Its almost as functional as my laptop.
If i break it, 50 bucks and 2 days later i have a new one. I go through about 1 phone every 3 or 4 months becuase i pout it through h***. Work, Dropping it, the Holster losing its grip, bumps into the wall, etc..
Its a 299 dollar phone through Verizon. With discount.
EBAY KIDS.. EBAY !!!!!!! 51 bucks... Come on, for a PDA.
You can pick up lesser phones, Motorola (one of the best manufacturers since 1985) all day long for 20, 30 bucks.
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Cell phone companies create the problems
Anyway - rather than give out phones valued at $200 - $300, why not make consumers pay lower fees up front. And if you want a new phone, they say - Sure - we'll switch it over. It makes sense and eliminates the overhead.
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Maybe we should look instead at what we need!
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