Yes, all cellphone contracts must die

Summary: Not only do I applaud the judicial decision that has led T-Mobile Germany to sell iPhones without a lock to the T-Mobile network- but I wish for all that and more with all cellphone services and plans here in the U.S.

Not only do I applaud the judicial decision that has led T-Mobile Germany to sell iPhones without a lock to the T-Mobile network- but I wish for all that and more with all cellphone services and plans here in the U.S.

Glory be that we live in a world where cell phones are not tethered to carriers by technology and contract.

You should be able to buy your cell phone and then choose any carrier you want. And to switch any time you want as well.

And once you choose your carrier, they should have no right to ask for a deposit, or for you to sign a contract of any length.

Face it, the only real reason for these damn two-year contracts is that the carriers want to tie you down in case their customer or tech "support" fails you and you want to walk.

The point is that carriers need to care about you, the customer, as much if not more than the damn institutional investors they are te trying to please. But since they don't -and they know it- they tie you down by contract and fiat.

That isn't right.

Topics: Mobility, Hardware

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62 comments
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  • Go prepaid

    Nearly every carrier offers them. If things were as bad as you say, the prepaid market would have really taken off.

    Not everyone operates their cust service operations like Sprint. ATT and Verizon are fighting for customers.

    Both pro-rate your termination fees and allow you to return the product for a full refund within the first few weeks.

    Asking for a deposit is not unreasonable--especially for those with a poor credit history.
    otaddy
    • On Deposits

      I don't have a poor credit rating yet when ever I try to sign up for Cell Phone they want a $600 deposit. I could go to the bank tomorrow and get a $20,000 unsecured line of credit but I have to pay a stinking deposit for Cell Phone. If my wife goes in she doesn't have to have deposit though and she doesn't even work. Needless to say I don't have a Cell Phone.
      voska
      • Which carrier does this?

        Did you ask them why? This doesnt make sense to me either. They must see something in your credit report that raises a red flag.

        Why dont you have a cell phone? Some of the pre-paid plans are quite good.
        otaddy
        • Cingular does this (eom)

          nt
          kckn4fun
          • You mean AT&T

            <nt>
            otaddy
    • Prepaid sucks

      Unfortunately, prepaid service is just as bad. The phones are featureless. The costs are higher. Who would want to?
      kckn4fun
      • Not necessarily

        I've seen plans from ATT and Verizon from $0.15 down to $0.02 per minute. Both include voice mail in their plans with options to add picture and text messaging and mobile web access. They are not PDA's but they are not featureless.

        It can cost more, depending on your usage patterns but the tradeoff is you have no activation fee and no contract.
        otaddy
    • They're all prepaid.

      Have you looked at your bill? You're paying a month in advance for the service. Prepaid. The only thing you pay for after the fact is any additional charges, like directory assistance, overages, etc...

      Essentially, they're all prepaid phone plans.
      Dr. John
      • True, but in that case you have a contract

        The prepay plans we are discussing have no contract and you can cancel at anytime.
        otaddy
    • ever tried prepaid?

      It is MUCH more expensive than a monthly rate. The phones arent as nice (that is changing some, but not as much) and the one company i know that doesn't do contracts (Cricket) has next to no coverage. Sigh...
      ivanotter
      • Yes I have

        and my Brother in law has used it for years since it fits his needs and he doesnt want to sign a contract.

        Of course you get a better rate when you sign a contract but the new pre-paid plans arent all bad either.

        All the big carriers have pre-paid plans so youre not stuck with Cricket's small coverage area.
        otaddy
        • you seem to have missed...

          What I was saying. I said that was worth it. I have LOOKED at all the prepaid. It is far more expensive, considering my primary phone is my cell. Not a luxury Item, it is literally how work, family, and friends contact me. No prepay that I can find in this area can give me the minutes i use for anything cheaper. Problem is, I am locked in a contract with Sprint. As you well know, Sprints customer service has been in the dregs for a while now, and they are bleeding customers. With the experiences I have had, not surprised. But it is still cheaper for me to use them then go prepay.
          ivanotter
          • Fair enough

            I did say that depending on your usage, prepay might not be the best option, it's a tradeoff, you avoid the contract on average will pay more. For you its not a good tradeoff, for others it is.

            Yes, Sprint is doing their best to ruin their reputation and I suspect you'll be one of the many who wont renew.

            Note that Verizon and ATT prorate their cancellation fees so it makes it a bit easier to cancel with them.
            otaddy
    • Prepaid?

      Are you stoned? I think you are!

      prepaid rates are RIDICULOUS! And contain time limits or expirations to the minutes prepaid... Usually 60 days.

      The prepaid market flounders because of the prices! That's no accident. They force users to contracts for higher profits... Only the most un-credit worthy cell phone user ops for prepaid, or worse yet, a ghost wandering in the shadows.
      RS9
    • Well Tmobile..

      After the contract is up, you can continue on a month by month basis. And the contract is used to subsidize the cost of the phone.
      mrOSX
  • RE: Yes, all cellphone contracts must die

    I appreciate the sentiment but pretty far off-base.

    Most cell phone companies require a set commitment to offset the subsidy they absorb on heavily discounted handset prices. Do you really think all those free camera phones and cheap Blackberry's really don't cost the cell phone company? They can offer those discounts by locking in a set time period when they know they'll get service plan revenue. You always have the right to terminate your contract, but don't be surprised if the cell phone company uses the early term fee to recoup the discount given to you. Having said that, I think it's only fair to pro-rate the early termination penalty based on how many months of service charges was paid for.

    As for deposits, I also think it's fair to make someone with sketchy credit and a record of not paying their bills for some security. Wouldn't you if it was you?
    jachase
    • Not true.

      "Most cell phone companies require a set commitment to offset the subsidy they absorb on heavily discounted handset prices"

      In Europe they did not have this problem for at least ten years. You can buy a phone anywhere and choose any carrier. This is competition.

      North America simply has less competition therefore we get these long-term / lock-in deals pushed down our throat. Not all is better in North America.
      nizuse
      • Yes it is true

        In Europe you buy your own phone so no subsidy is needed, you pay upfront for your equipment.

        Where I live, there are 5 service providers. How many more should there be? All offer contract and prepaid plans so nothing is pushed down your throat.

        True not all is better here, but its not that bad either.
        otaddy
        • So it is true

          that in Europe you have the choice to buy a phone where you want.

          I didn't make a comment on the price issue. You did.
          nizuse
          • That's what I said

            What price issue did I bring up? I merely pointed out that you pay up front for your phone, while with a contract it is rolled into the cost of the plan.

            If you dont want to sign a contract you can go to most stores and buy a phone and sign up for prepaid service.
            otaddy