more on Locked In a Cell: How Cell Phone Early Termination Fees Hurt Consumers

[David Farber <dave () farber net>]

Begin forwarded message:

From: "Kobrin, Steve" <kobrins () wharton upenn edu>
Date: October 10, 2005 5:10:48 PM EDT
To: dave () farber net
Subject: RE: [IP] more on Locked In a Cell: How Cell Phone Early  
Termination Fees Hurt Consumers


There is another dimension to this problem.  I signed a two year
contract with Verizon last October and took advantage of a discount on
the phone.  Last month I wanted to trade-up, to purchase Verizon's new
international phone.  Even though I was willing to extend my contract
for another two years, Verizon would not do it.  My only choice was to
purchase the phone at list, which in this case is over $500.  While I do
not think I am being taken advantage of, it seems to me that it would be
in Verizon's interest to let me trade up and extend my contract.  I have
to assume that, given the price of international calls, the service
would be more profitable than my current domestic contract.

Steve

-----Original Message-----
From: David Farber [mailto:dave () farber net]
Sent: Monday, October 10, 2005 5:01 PM
To: Ip Ip
Subject: [IP] more on Locked In a Cell: How Cell Phone Early Termination
Fees Hurt Consumers



Begin forwarded message:

From: Gerry Faulhaber <gerry-faulhaber () mchsi com>
Date: October 10, 2005 2:12:10 PM EDT
To: dave () farber net
Subject: Re: [IP] more on Locked In a Cell: How Cell Phone Early
Termination Fees Hurt Consumers


Dave [for IP]--

Could we hear from an IPer who is either with Verizon Wireless/
Cingular/Sprint or who has direct experience with real world data?
Are there differences across carriers?  (Normally, if there's an
anticompetitive practice going on, I would expect this to become a
dimension of competition)

Gerry

----- Original Message ----- From: "David Farber" <dave () farber net>
To: "Ip Ip" <ip () v2 listbox com>
Sent: Monday, October 10, 2005 10:47 AM
Subject: [IP] more on Locked In a Cell: How Cell Phone Early
Termination Fees Hurt Consumers




> [My experience with Cell Companies is not what Gerry describes. I
> always supply the phone since I am not happy with the cell phones
> sold in the USA. Yet I am tied up with 1 or 2 year contracts with
> $175 cancellation agreements. Why?? djf]
>
> Begin forwarded message:
>
> From: Gerry Faulhaber <gerry-faulhaber () mchsi com>
> Date: October 9, 2005 1:13:21 PM EDT
> To: dave () farber net
> Subject: Re: [IP] Locked In a Cell: How Cell Phone Early
> Termination  Fees Hurt Consumers
>
>
> Dave [for IP]--
>
> Re: cell phone contracts.  I think the way this works is that you
> can  get a cellphone at a below-market price from your service
> provider in  return for a one- or two-year contract, OR you can buy
> your phone  elsewhere and get the service without a contract (or
> maybe a contract  of shorter duration).  So this is a trade-off,
> you get a price break  on your instrument in return for a longer
> contract.  But you don't  have to take this; you can still avoid
> the lengthy contract by buying  your own phone at a market price.
>
> Why is this a problem?  If you don't like the long contract, then
> don't take the price break on the phone.  Seems to me a perfectly
> legit deal.
>
> The practice of automatic contract renewal I think is sleazy, but
> it  is very widespread.  Even Consumer Reports automatically re-ups
> my subscription on my credit card every year, and CR is a very
> legit  outfit.
>
> Now let's be honest here.  If you sign a contract to get the
> cheaper phone, then as soon as you actually have the phone you want
> to get  out of the contract, and this seems to be what this is all
> about.   "Gimme the cheap phone, then I'll whine about how I'm
> being exploited  by a long-term contract".  Pretty cheesy.
>
> Professor Gerald R. Faulhaber
> Business and Public Policy Dept.
> Wharton School, University of Pennsylvania
> Philadelphia, PA 19104
>
> ----- Original Message ----- From: "David Farber" <dave () farber net>
> To: "Ip Ip" <ip () v2 listbox com>
> Sent: Saturday, October 08, 2005 10:05 PM
> Subject: [IP] Locked In a Cell: How Cell Phone Early Termination
> Fees Hurt Consumers
>
>
>
>
>
> > Begin forwarded message:
> >
> > From: Monty Solomon <monty () roscom com>
> > Date: October 5, 2005 3:00:50 AM EDT
> > To: undisclosed-recipient:;
> > Subject: Locked In a Cell: How Cell Phone Early Termination Fees
> > Hurt Consumers
> >
> >
> >
> >
> > Locked In a Cell: How Cell Phone Early Termination Fees Hurt
> > Consumers
> > August 2005
> >
> > Executive Summary
> > http://masspirg.org/MA.asp?id2=18535
> >
> > Press Release
> > http://masspirg.org/MA.asp?id2=18541
> >
> > Full Report
> > http://masspirg.org/reports/lockedinacell05.pdf
> >
> >
> >
> >
> >
> >
> > -------------------------------------
> > You are subscribed as gerry-faulhaber () mchsi com
> > To manage your subscription, go to
> >  http://v2.listbox.com/member/?listname=ip
> >
> > Archives at: http://www.interesting-people.org/archives/
> > interesting- people/
>
>
>
> -------------------------------------
> You are subscribed as gerry-faulhaber () mchsi com
> To manage your subscription, go to
>  http://v2.listbox.com/member/?listname=ip
>
> Archives at: http://www.interesting-people.org/archives/interesting-
> people/



-------------------------------------
You are subscribed as KobrinS () wharton upenn edu
To manage your subscription, go to
  http://v2.listbox.com/member/?listname=ip

Archives at:
http://www.interesting-people.org/archives/interesting-people/


-------------------------------------
You are subscribed as lists-ip () insecure org
To manage your subscription, go to
 http://v2.listbox.com/member/?listname=ip

Archives at: http://www.interesting-people.org/archives/interesting-people/