TRACNotes
Vol. 3 # 29 --
July 22, 2005
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BUCKS WATCH
NCL Study Finds Consumers Confused About Bundles, Phone Bills - A new study released this week by the National Consumers League finds that consumers are interested in bundled service packages of local, long distance, and wireless telephone service and high-speed Internet, but often find it hard to comparison shop. Advertisements for these services often fail to give them an accurate picture of what these services entail and the costs involved. Additionally, the study noted that 26% of respondents find their phone bills difficult to understand. The study, a survey of 1,000 adults conducted by market research firm Harris Interactive, found that consumers tend to be more satisfied with their telecommunications services when they feel that they have a choice of providers, including landline telephone, wireless, and Internet service. Cable television, for which few consumers have a choice of providers, rated lowest in terms of satisfaction with quality and value. The study also found that when consumers have the ability to switch providers for their telecommunications services, they take often take advantage of the opportunity. Three-quarters of those with long-distance service switched their long distance carriers (76%) and nearly half (45%) of those with local service have switched their local service providers, noted the study. Similarly, nearly half (47%) of those with wireless service said they had switched providers. According to the survey, consumers spend an average of $70 for telephone, $51 for television and $28 for Internet. For more information on the NCL study, click herei . NCL has also launched a new online communications consumer guide at http://nclnet.org/communications/.
WIRELESS WATCH
Ex-AT&T Wireless Subscribers Having Difficulties with Handset Replacement - Former AT&T Wireless subscribers are continuing to pay for the growing pains associated with the Cingular-AT&T Wireless merger, according to recent reports. Our research noted several instances where former AT&T Wireless subscribers who wanted to replace a damaged or defective handset were told that in order to do so they would need to switch to a new Cingular rate plan since Cingular could not replace their AT&T phones. This is strange; especially coming from users of AT&T’s GSM handsets, since Cingular’s network also runs on GSM technology. To make matters worse, we found several instances where subscribers were apparently told that in order to replace their AT&T-issued handset with a Cingular-branded model they would have to switch to a more expensive Cingular plan to get the same number of minutes they received on their current plans begun with AT&T Wireless. All this to replace one handset. A possible alternative for subscribers in this situation may be to check out eBay. A recent check of the online auction site showed numerous unlocked AT&T Wireless phones up for bid. Winning bidders can then take the undamaged SIM card out of their unusable handset and put it in the new handset. Caution should be taken when bidding on these phones, however, since Cingular cannot guarantee that such phones will function correctly. There are also a number of third party companies that advertise cell phone unlocking services, but we cannot recommend any of them. However, when compared against the cost of paying for service for an unusable phone, paying for a more expensive plan, or being charged $150 or more to terminate a service contract early, the potential cost savings of trying out an unlocked phone may be worth the risk.
TRAC AND YOU
Former AT&T Wireless Subscribers, What Do You Think of Cingular? - Over the next twelve months, several major telecommunications industry mergers are expected to be approved. The Sprint-Nextel, SBC-AT&T, and Verizon-MCI mergers promise to change the telecommunications landscape dramatically and will likely affect many subscribers. Recent news reports have noted that many former AT&T Wireless (now Cingular) subscribers are considering switching to other wireless carriers due to issues Cingular has experienced in integrating AT&T Wireless’s network. TRAC is concerned about these difficulties since they may be a foretaste of what Nextel, AT&T, and MCI subscribers experience as their carriers are absorbed in their respective mergers. If you’re a former AT&T Wireless subscriber who has remained with Cingular, we want to hear from you. Are you satisfied with the service you’re receiving from Cingular? Are you considering switching to another carrier? If so, why? If you were an AT&T Wireless subscriber and have recently switched, let us know what made you decide to leave Cingular. E-mail your comments to trac@trac.org. We’ll choose the best e-mails and discuss them in a future issue of TRACNotes.
INTERESTING LINKS
FCC Main Page: http://www.fcc.gov
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!
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