Senators intro wireless consumer protection bill, industry complains

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brescoach @ Sep 19th 2007 8:29AM

This is a bunch of crap. You do away with termination fees (or cap them) and you'll be paying close to full price for a new handset when you decide to re-up or go with a different company.

Phones cost money. Towers cost money. Running a business day to day costs money. Carriers actually don't make much money during the first year of having you as a customer. Sometimes they lose money on you. They make the bulk during the last 3-6 months of your contract during a 24 month period.

Effectively, this would hurt the smaller service providers more than the bigger ones. Smaller companies pay more for handsets (because they aren't buying 500,000 of them at a time), and typically have to charge more up front than nationwide carriers. That cost gap will now grow larger.

Just a bad idea from start to finish. This will hurt customers more than help them in the long run.

Neutral

Mehool @ Sep 20th 2007 1:42AM

I agree 100%. I actually have no problem signing a 2 year with Verizon, and thats just what I did a month ago after nearing the end of my first contract. Any issues I have had with them have been resolved, I don't feel a need for the govt to put the pinch on the cell carriers.

I see the reasoning behind the Early Termination Fees -- if you don't like the ETF's then don't expect to get your phone subsidized, and don't sign a contract. Go prepaid.

I hope this legislation falls through.

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