Sprint surcharges while stock sinks - No monthly fee, San Diego Pioneer Plan adds charges

My wireless phone plan, from 1997, has no monthly charges. That is why I jumped at it and have held on to it. I accepted the terms of the Pioneer Plan and I have kept my end of the contract, for all these years, along with thousands of other San Diegans. I wish I could say the same for Sprint.

Unlike Britney Spears, Michael Shames WILL be appearing on the Dr. Phil show

Britney Spears has declined to appear on the Dr. Phil show, but recently UCAN's Executive Director, Michael Shames, was drafted to help Dr. Phil explain to his viewers why it is not necessary to use violence when dealing with large utilities. 

The program airs on Thursday, January 31, and you can read the preview for "vigilante justice" here.

Dr. Phil's patient will be a 75-year old granny named Mona Shaw. Shaw received national notoriety and an almost cult-following after she visited a Comcast office on August 13, and smashed up the company's equipment with a hammer.

Hopefully, Michael will have the opportunity to show Mrs. Shaw how to properly complain to a large, uncaring utility with bad customer service.  His organization, UCAN, specializes in resolving difficult utility complaints on behalf of its 33,000 members.

Hurry! SPRINT / NEXTEL customers continue to get Early Termination Fees waived.

It's a great day when you can turn the tables on your cell phone carrier. Thousands of visits to my post on January 2, have resulted in hundreds of thousands of dollars in waived Early Termination Fees (ETFs). Don't be left out, you have less than a week to use the MATERIAL CHANGE clause in your contract to avoid the dreaded ETF. Your window to cancel expires January 31. When talking to Sprint or Nextel, remember to stick to fact that there was a MATERIAL CHANGE in the contract when Sprint added the Administrative Charge and the Regulatory Charge.

Most of all stay calm, but relentless, when you stick it to the man. Keep your comments coming.

Worth noting - You can download our Cell Phone Buyer's guide (only four pages) and we guarantee you'll never get ripped off on a mobile phone deal again!

Cell Phone Companies Changing Contract Terms

Recently, the four largest Cell phone companies announced a few changes to your cell phone contract. These changes are either taking place or will take place some time in 2008.

Verizon Wireless on October 1, 2007 announced that Customers will have the option to change their voice and data calling plans, specifically selecting current Wireless plans with different minute allowances or text messaging of data use options without changing the end date of the customer’s contract. A new addition to what Verizon calls its “Worry Free Guarantee.” The policy went into effect on October 7, 2007.

Verizon Wireless also recently released a statement regarding their use of YOUR Customer Proprietary Network Information (CPNI). The statement allows Verizon Wireless to share your CPNI with their affiliates, partners and agents unless the customer specifically OPTS-OUT. Check out ucansue’s blogfor more information.

AT&T Mobility announced that beginning in November 2007 (no specific date listed) customers
who change to any one of the company's standard wireless calling plans during the course of their contract will no longer be required to extend their current contract or enter into a new one.

Additionally, beginning early in 2008 AT&T will no longer charge a flat rate early termination fee, instead the fee will be lowered throughout the term of the contract. This early-termination policy will ONLY apply to new and renewing wireless customers who sign one- or two-year service agreements. AT&T states it will release more information on this change.

Sprint Nextel announced that beginning Nov. 12, 2007 customers will be able to change their rate plans without having to renew their contracts.

In addition, Sprint plans to implement a new prorated early termination fee (ETF) policy in 2008. Sprint will announce
information and details of that policy next year.

Lastly, T-Mobile announced that under new company guidelines, the early termination fee will decline during the course of a customer’s contract with T-Mobile. The policy change will be finalized and introduced in early 2008. The new policy will apply to new customers as well as current customers renewing contracts.

So watch for announcements from you’re respective cell phone company and if you’re thinking of entering into a new cell phone contract, remember that changes are on the way and you should make sure that these changes will be a part of your new contract.

AT&T changing your contract terms and will start prorating ETFs and stop extending contracts...maybe

AT&T says in November it will stop extending your contract when you change phone plans and early next year if you enter into a new contract, or sign up for AT&T services AT&T will prorate its Early Termination Fee (ETF), but what isn’t AT&T saying in this announcement and who exactly will see these benefits.

I know, I know, we all cringe when we get that notice or read that news article that our cell phone company has changed one of the terms of the contract the Company had us sign when we signed up. Well AT&T is making changes again but these two you might like:

 

According to AT&T’s press release:

“Beginning in November, customers who change to any one of the company's standard wireless calling plans during the course of their contract will no longer be required to extend their current contract or enter into a new one.”

We assume this means that if your current plan for example is “Nation 2000 w/ Rollover Minutes” and you wanted to switch to “Nation 1350 w/ Rollover Minutes” that you would be allowed to make that change without extending the length of your contract.

Now does this mean you could change from an Individual Plan to a Family Plan or a Data Plan that is not as clear. The best thing for you to do is ask, if you want to make a change to your plan ask whoever you talk to whether an in store agent or a customer service represent ask them how it will affect your plan and it never hurts to have them put it in writing or an email.

And what about upgrading equipment, most people are likely to change phones before they change plans, yet AT&T’s statement is mysteriously quiet about equipment upgrades.

The second change to your plan according to the press release:

“…those customers who choose to exit their contract early will no longer be required to pay a flat early termination fee. Instead, that fee will be progressively lowered during the term of the contract. Beginning early in 2008, this early-termination policy will apply to new and renewing wireless customers who sign one- or two-year service agreements. More details will be forthcoming at that time.”

What does this mean? Well for one your current AT&T contract will not be progressively lowered, commonly referred to as prorated.” No your current contract will have to run its course and if you enter into a new one in 2008 then the early-termination fee will prorate.

So if you were considering switching to AT&T you might want to consider waiting until 2008. But you may also want to wait until AT&T makes further announcement because:

1. They have not said if they will raise the ETF.

2. They have not said what proration rate will be.

And

3. They have not said if they will also decide to change your contract and go back to the flat rate ETF if you will be allowed to terminate your agreement without paying an ETF provided you give notice of termination to AT&T within 30 days after the first bill reflecting the change.

In the Press Release, Paul Roth, President of Sales and Marketing for the company's wireless unit stated: "AT&T leads the wireless industry in the flexibility, friendliness and fairness of its practices, and the new policies we have announced today are the most recent examples of that leadership. Customers have told us they do not like one-size-fits-all approaches. They are right, and that is why we have made these important changes."

I am going to have to disagree with Mr. Roth I do not believe these two new policies are examples of AT&T’s leadership in having flexible, friendly, and fair practices. Nor do I believe they made these changes because the customers wanted them.

Lets look at the evidence.

First, Verizon Wireless has been prorating their ETF now for quite awhile. Guess we will have to call you #2 on that one AT&T

Second, Alltel (ok so they are like number 5 in the industry but still) has allowed customers to change phones or plans without having to extend their contract for a long time. Sprint-Nextel was recently sued by the Minnesota Attorney General over the practice, and Verizon well they beat AT&T to the punch again and announced way back on October 1 that starting on October 7 Verizon would allow customers to change plans without extending their contract.

Third, AT&T is making changes only after the introduction of the Cell Phone Consumer Empowerment Act in the U.S. Senate (an act AT&T opposes by the way). Which would require among other things that the Wireless providers prorate ETFs and provides point-of-sale notice and gives the customer 30 days to cancel when they extend contracts. See

Fourth, T-Mobile is also facing a lawsuit over non-prorated ETFs and SIM-locked handsets.

Is AT&T leading the way or did it just seeing the writing on the wall? My guess is the latter since both times their announcements followed the actions of some of the other wireless providers.

So watch for new announcements and decide for yourself whether these new policies are consumer friendly enough to make you want to switch or sign up with AT&T or any of the other wireless providers.

AND DON’T FORGET TO READ YOUR CONTRACT.

 

Unlock your iPhone legally under the DMCA and switch to T-Mobile or another GSM wireless network

(you can also see my 350223 [at] video [dot] fox6 [dot] com">local news interview on Iphone hacks, open networks, and cancelling your cell phone contract. Please share your thoughts on cracking the Iphone.)

The days of soldering parts together to unlock your iPhone are over.... unless you just enjoy soldering, and in that case, as you were. For everyone else, put your soldering guns away. Today, a San Francisco-based group is claiming to have developed software that will allow users to "unlock" their AT&T iPhones so they can be used on other networks. In the US, the only other GSM carrier is T-Mobile, but that gives you one more choice than you had before.

Perhaps the most important point to make is that there is a strong argument that using the software to unlock your iPhone is legal, as long as it is for personal use. Basic American copyright law protects the software code, or firmware that runs the Iphone and locks it to AT&T's network. Additional protections exist from the always controversial Digital Millenium Copyright Act (let's just say that if a laws appeared on celebrity gossip sites, the DMCA would be front and center most days). The DMCA offers additional protection to rights holders by restricting users of copyrighted material from circumventing technological protection measures intended to restrict access to the copyrighted material. This includes accessing content even for legitimate, fair uses of content. However, in November of 2006, the Copyright Office approved 6 exceptions to the DMCA "anti-circumvention" restrictions.

While there is nuance to discuss, and attorneys will appear on both sides, one of these exceptions clearly included provisioins allowing consumers to unlock their cellphones "for the sole purpose of lawfully connecting to a wireless telephone communication network."

"For the sole purpose" is the key phrase here. It indicates that you, for your personal need to use your iphone on a communication network other than AT&T's, can circumvent protections AT&T has embedded into its phone. On the other hand, you will not likely see a bunch of unlocked phones on Ebay in a few days, since circumventing technological protection measures in order to make them available for sale would not be viewed as for the "sole purpose of lawfully connecting..."

That said, there is a key grey area that will likely decide the future of unlocking your iphone. This is the concept of whether it is legal to distribute, for free, the code that allows users to unlock there phones. There will be a great deal of disagreement on this subject, but a good argument from attorney Bart Showalter suggests that if the software is narrowly focused on busting the network lock, it would likely fit into the anti-circumvention exception to the DMCA. In other words, if the Copyright Office granted users the right to unlock their cell phone for certain reasons, it would be an illogical contradiction to then say that distributing the means (software code) to exercise those rights is illegal. At the very least there is a basic argument to be made(though some IP lawyers will scream secondary liability a la DeCSS) that anyone distributing this is certainly not directly circumventing Iphone firmware, and is simply making available software that allows users to do something that the Copyright explicitly permitted.

Either way, the unlocking of the Iphone is proof positive that consumers demand networks that allow them to use the technology and software of their choice.

Check out these links as well

T-Mobile customers can cancel their contract without penalty due to increased text message fees

Effective June 1st, T-Mobile's text message rates will increase from $0.10 to $0.15 per message. Consumer advocacy groups like UCAN maintain that such changes constitute a materially adverse affect to a wireless customer's contract, thereby allowing the customer to terminate his/her contract without penalty as provided by standard contract law and the cell phone company's terms and conditions (except Cingular). T-Mobile has acknowledged this publicly. As reported by www.consumerist.org, T-Mobile spokesman Peter Dobrow told RCR Wireless News that, " Customers may terminate their contract without incurring an ETF soon after receiving their notification of the pricing change." Read more.

Verizon increases international long distance fee, may allow customers to cancel service without penalty

Verizon customers may be able to terminate their service without penalty. The material change is effective June 24, 2007, when there will be a $0.15 per minute surcharge added for calling Mexican numbers using the dial pattern of 011+52+1+Area Code+telephone number for customers of the International Long Distance and
International Long Distance Value Plan. Read more.

Verizon administrative charge increase may give wireless customers chance to cancel contract without penalty

Effective March 15, 2007, Verizon Wireless increased its $0.40 administrative charge to $0.70 per line. Due to a clause in the Verizon Customer Agreement, customers may be able to use the fee increase to terminate their service and avoid the usual $175 cancellation fee. Read more

Text Message Price Increase: Can You Cancel?

T-Mobile said that its new rate increase on pay-per-use text messages will be regarded as a "material change to the terms and conditions of its subscribers' contracts", therefore allowing customers to cancel service without incurring early termination fees.




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