WIRELESS WATCH
Thirteen Percent of Wireless Users Plan to Switch Carriers, Says Study - According to a new study from Harris Interactive, Inc. thirteen percent of wireless users have switched carriers in the past year and another thirteen percent are planning to do so in the year to come. Customer satisfaction with wireless carriers continues to plague the industry. Only one in four (24%) U.S. adult wireless users is highly satisfied with their wireless service provider. In contrast, 45 percent of U.S. adults are as satisfied with their wireline (landline) telephone provider and 42 percent with their Internet service provider. More than two in five (44%) U.S. adult wireless users who have switched providers report the primary reason they left their previous provider was for a better price on a monthly service plan. One in five (22%) cite improved reliability as the primary reason for switching and 12 percent switched because of a promotion or sale offered by a new provider. Promotions such as offering free phones and reduced prices continue to induce users to sign up for longer service plans with fifty-four percent of users being on two-year plans versus thirty-five percent on one-year plans and eleven percent on prepaid plans. TRAC recommends that users switching to a new carrier sign up for a one year plan at first. While consumers who do this may miss out on a promotion, the cost of having to break a contract because of substandard service outweighs this loss. Subscribers who find that they are highly satisfied with their carrier can always go back to their carrier later and offer to sign a two-year contract in exchange for a perk such as extra minutes or a new phone. For more information on the Harris Interactive survey, click herei.
SCAM WATCH
Questions to Ask Charity Telemarketers - Every year, millions of Americans give to charitable causes. Unfortunately, scam artists make it a habit to prey on this generosity by running phony charity scams, often conducted over the phone. There are some common sense ways for consumers to protect themselves from these scams. Be wary of appeals that tug at your heart strings, especially pleas involving patriotism and current events. These sorts of scams invariably appear in the wake of natural disasters such as this summer's devastating Florida hurricanes. Ask what percentage of the donation is used to support the causes described in the solicitation, and what percentage is used for administrative costs. Some legal companies work on behalf of charities, but take fifty percent or more of donations for "administrative costs." Scammers often claim to be supporting a local charity. Consumers should ask the caller for the name of their company and then call the charity to verify that they are using that company before giving any money. Don't provide a credit card or bank account number until you have verified the legitimacy of the organization. Scammers often target the elderly, so consumers should discuss their planned donation beforehand with a trusted friend or family member. Finally, don't let the scammers get pushy or angry if you ask questions about their organization. The most powerful weapon against these scams is the easiest one to use - hang up. For more information on protecting yourself from charity scams, click hereii.
TRAC IN THE NEWS
TRAC Featured on KARE TV - TRAC Chairman Samuel Simon was featured recently on a segment on cell phones broadcast on KARE TV-Minneapolis. Simon commented on recent efforts by AT&T to get the FCC to classify their calling card service as an "enhanced service" -- and therefore exempt from many taxes and regulations - since a recorded advertisement is played whenever a customer uses their cards. "It isn't an information service, it's (about) how to make a long-distance call. And that's what the FCC's going to decide," said Simon, arguing against AT&T's plan. "I'd love to not have to pay taxes. I tell you what - if I don't pay taxes I can lower my cost to you on my product. But I tell you, if I have to pay taxes I'm going to have to charge you for it." To see streaming video of the segment, click hereiii.
Wireless Merger Should Benefit AT&T Wireless Subscribers Says Simon - A recent article in the Buffalo News on the effects of the Cingular and AT&T Wireless merger on consumers gave some encouraging news to existing AT&T Wireless subscribers. Perhaps the most immediate benefit will be felt by subscribers at AT&T Wireless, which frequently ranked near last place among the majors in call quality, said Samuel A. Simon, chairman of TRAC. While this merger may not drive up prices by reducing competition, "it's the next merger I worry about," added Simon. To read the full article, click hereiv.
INTERESTING LINKS
FCC Main Page: http://www.fcc.org
FCC Complaint Form - http://svartifoss2.fcc.gov/cib/fcc475.cfm
List of State Regulatory Commissions: http://www.naruc.org/displaycommon.cfm?an=15
What do you think? Got a tip you want to share? Nominate your "Scam of the Week" and your "Tip of the Week" - If we select your submission, we'll give you a one-year free membership in TRAC and acknowledge your contribution by name in TRACNotes. Send an e-mail to trac@trac.org to submit your ideas!
TRACNotes is distributed to TRAC members and those who have signed up on the TRAC website "Newscenter." If you do not want to receive TRACNotes, simply click herev and let us know. You won't receive these in the future. We hope you choose to remain a part of our network, and that you find TRACNotes helpful. Our goal is to provide you with useful information about what is happening in the telecommunications marketplace for consumers and to keep you up to date on TRAC's policy advocacy. If you like what you see, please consider becoming a member of TRAC by clicking herevi.
©2004 Telecommunications Research and Action Center. TRAC grants unlimited rights to reproduce TRACNotes or any information contained in it provided attribution is given as follows: "Source: Telecommunications Research and Action Center. http://www.trac.org"
Endnotes
