[RickJ]

The below is a Forwarded message from Consumer Reports:

If you own a cell phone, the giant telecom companies are likely holding you hostage right now.

They know they can charge you what they want, give you spotty service, and even prevent you from getting the latest technology, because almost all the most popular wireless handsets on the market today are shackled by "exclusivity deals" — meaning if you buy a particular phone, you can only get service from one company.

Want an iPhone? You're stuck with AT&T. Own a Blackberry Storm? You have to deal with Verizon. These exclusive contracts mean your pricey phone is virtually worthless if you try to change companies. And forget about shopping around for a better deal.

Throw off the chains of the telecom giants. Tell Congress to free your phone now!

A few years ago the telecom companies tried to keep you from taking your phone number with you when changing providers. They knew if you had that freedom, you'd walk away from bad or pricey service. But with your help we mounted a campaign to the Federal Communications Commission and Congress to let you keep your number, and the companies were forced to give in.

We want to give your cell phone that same freedom. The FCC just agreed to review these exclusivity deals, and the Department of Justice is reportedly looking into it as well. It's time Congress gets involved and makes sure that when we shop for wireless phones and service, it's in a truly competitive, free and open marketplace.

But the telecom giants are lobbying against this freedom, and we need consumers like you to put the pressure on once again.

E-mail Congress for the freedom to shop for the best deal on your phone AND your phone company.

In Asia, 80 percent of wireless phones are sold outside of a wireless carrier contract. But in the United States, you're either stuck with one company, or your phone is effectively worthless. That's not a free market, that's just un-American.

Sincerely,
Jim Guest

P.S. Know anyone else caught between the phone they want and the company they have? Forward this message so they can weigh in, too!

[tomder55]

Rick ;thanks for posting this. I was just telling my wife this week the hassle it will be to change servers when our contract is up... Specifically related to the issue of giving up a phone that I like ,and have spent considerable time adding contacts and preferences etc.

[RickJ]

I too have many frustrations. I have 2 plans (two different carriers) and 9 total phones. It stinks that I have to renew a contract to replace a phone. With general deregulation on utilities, it seems unfair that cell phone providers still have customers wrapped around their little finger.

[tomder55]

I also think the local monopoly of the cable provider should be examined. I see no reason why that should be exclusive to an area of service.

[paraclete]

Ah capitalism at it's best and I thought you had anti-trust legislation over there

[tomder55]

These are gvt approved monopolies.

[speechlesstx]

To me the whole cell phone business is an overpriced pain in the arse... but I wouldn't give it up.

Exclusivity deals are not necessarily a bad thing, you wouldn't want just any ol' Joe to open up a McDonald's down the street. In our business we have exclusive contracts with vendors and it gives us a protected territory for that product. That's not a monopoly, it's just a contract and if you don't like the deal don't enter into that contract, you still have options.

[paraclete]

To me the whole cell phone business is an overpriced pain in the arse...but I wouldn't give it up.

Exclusivity deals are not necessarily a bad thing, you wouldn't want just any ol' Joe to open up a McDonald's down the street. In our business we have exclusive contracts with vendors and it gives us a protected territory for that product. That's not a monopoly, it's just a contract and if you don't like the deal don't enter into that contract, you still have options.

Technically it's called monopolistic competition or oligopoly, it's a model more usually found in a controlled economy and you have to have a lot of money to open a McDonald's franchise so the average Joe doesn't get a look in. There is a big difference between an exclusive territory and what they do with cell phones, cell phones are a total rip off and the plans are deceptive

[tomder55]

In this case the option amts to a lot of cell phones going into the dumpster or the recycler . I am perfectly happy with my phone ;but not my service provider. It's not such a big deal in costs because I find deals where the phones come with the contract. But as I already stated ;it is a pain in the a$$ to transfer data .
If I had to buy the phone and then after that enter into the contract I would be pissed .

[excon]

But the telecom giants are lobbying against this freedom, and we need consumers like you to put the pressure on once again.

Hello:

I can't help but compare this situation with our health insurance debacle. Here, you are more than happy to call your congressman about the big, bad, old cell phone companies... But, when the health insurance companies do THE SAME THING, you support THEM against people like ME. All I do is complain about THEM, just like you're complaining about the cell phone companies.

I'm having a hard time figuring you guys out.

excon

[speechlesstx]

technically it's called monopolistic competition or oligopoly, it's a model more usually found in a controlled economy and you have to have a lot of money to open a McDonald's franchise so the average Joe doesn't get a look in. There is a big difference between an exclusive territory and what they do with cell phones, cell phones are a total rip off and the plans are deceptive

I don't disagree that cell phone companies suck, but you have to know what you're getting into. If you don't like it don't take the contract. I think they're way overpriced, data charges are especially ridiculous. I wanted a Blackberry for the wife and I but I refuse to pay $140.00 a month to use it. I downloaded a "free" ring tone when we got our last phone and it cost me $5.00 I think in data charges. That's pathetic. And what really pi$$es me off is I can't get the most out of my phone because the carrier locks certain features. If I own the phone I should be able to connect it to my PC and add my own ringtones and such without being forced to use the carrier's "store."

On the other hand I don't care what you call it, most everyone does it one way or another. The owner or creator of the product should have the say over the distribution. Most everyone has exclusive deals, from music, to movies, fashion, stadium vendors, you name it. Are we going to tell everyone they have to sell their product everywhere?

You still have options, there is still competition. You can buy unlocked phones for instance, but it may not work right because of proprietary technology which again, the provider owns. It may be ideal for all phones to at least be unlocked when your service contract expires but again, they may not work. If you want a Blackberry you have to have Blackberry service for it all to work, and Blackberry has the right to provide their technology and network to whom they choose.

[ETWolverine]

Hello:

I can't help but compare this situation with our health insurance debacle. Here, you are more than happy to call your congressman about the big, bad, old cell phone companies... But, when the health insurance companies do THE SAME THING, you support THEM against people like ME. All I do is complain about THEM, just like you're complaining about the cell phone companies.

I'm having a hard time figuring you guys out.

excon

Here's the difference:

There are essentially 4 or five major cell service providers in the USA. Certainly fewer than 10 real players, and they are all interconnected with each other at the corporate level. That constitutes an oligopoly.

On the other hand, there are over 1300 medical insurance providers. That constitutes a free market... or it would if there was portability in the system, which there currently isn't, and which Conservatives are pushing for as part of a REAL health care reform.

But I'm sure you don't see the difference between an oligopoly and a free market system. They're all big corporations making those evil "profits", so they must all be bad guys.

Elliot

[twinkiedooter]

I have a plain jane cell phone (not a flip phone either as those break too easily) from Virgin Mobile on the pay as you go plan. It works out to about $5 a month. I don't call anybody and nobody calls me. I have some ridiculous balance of over $100 that's accumulated over the past 2+ years. It doesn't change the TV, access the internet, wash my dishes, etc. It just makes cell phone calls and text messages. I did have a Verizon family plan a few years ago that cost me a bazillion dollars a year. Yes, I certainly can do without having a cell phone jammed in my ear now while driving or walking around a store shopping. I've just learned to talk wayyyy less with a prepaid phone. Who needs all the bells and whistles anyway?

[earl237]

Excellent idea Twinkiedooter, a cheap pay as you go phone is definitely the way to go. Even some of the cheap phones gave good features like a camera and music.

[paraclete]

But I'm sure you don't see the difference between an oligopoly and a free market system. They're all big corporations making those evil "profits", so they must all be bad guys.

Elliot

Yes not everything has to be subject to the profit incentive

[spitvenom]

Could you imagine getting internet access through comcast or verizon and them saying well you need to buy this specific computer from us if you want to use our internet. People would flip out. Why isn't it the same here. The cell phone companies provide nothing more then a tube to send information. No different from the regular land line or cable TV.

Here is what I do. I am with AT&T since you can take their sim cards out (except out of the iPhone master Jobs won't allow that) and they are GSM. I go to the AT&T store get their free phone ask for the unlimited data since it is not an Iphone or blackberry they only charge you $15 bucks a month for data instead of $30 bucks because you have an Iphone or Blackberry. Then I go to tiger direct and order any unlocked GSM phone I want. Sure you pay a little more for the phone but you make it up by not having that 30 dollar charge for data. Plus tiger direct has MUCH MUCH better phones then what the cell companies will let you buy.

[excon]

Hello spit:

**greenie**. You ARE a smart guy.

excon

[tomder55]

Me . I plug the charger in... dial numbers... and hope I get a connection. Been thinking about buying one of them Jitterbugs... not because I can't seen the numbers (yet ) but my fingers are too big for the numbers on most cell phones.

[spitvenom]

Ex,
I have my moments!

[speechlesstx]

Spit, you do have a point (although you didn't get a win last Sunday), but still on the Blackberry for instance you're paying to use their Blackberry service, not just your garden variety internet access aren't you?

P.S. Kudos to your Phillies again... the Rangers are still breaking our hearts.