BUCKS WATCH
CableCards Can Help Some Cable Subscribers Save - Consumers tired of paying up to thirteen dollars per month to rent a clunky set-top box from their cable provider may want to investigate a little-used technology called CableCard. These credit-card sized devices fit in many newer digital televisions and enable consumers to access the digital channels their cable provider offers without paying high rental fees for the set-top box. Even better, cable companies rarely charge their subscribers more than two dollars per month to rent CableCards. Additionally, there is no need for an extra remote control to control a CableCard-enabled television, which is not the case with most set-top boxes. The savings with CableCards do not come without some significant limitations on your digital service, however. First, as previously mentioned, CableCards only work with newer digital televisions, so consumers with television sets more than three or four years old will likely not be able to use CableCard. Second, current versions of CableCards do not allow for two-way communication between your television and the cable company, which means that CableCard users are not currently able to use interactive features such as video-on-demand, pay-per-view, or the cable company-provided interactive program guide (though some newer digital televisions have their own program guides installed). Next-generation CableCards that allow for two-way communication are currently in development. In conclusion, digital cable subscribers who don’t want to pay the higher rental fee for set-top boxes and who can deal with fewer features can save money by opting for the CableCard over the set-top box. For more information on CableCard, click herei.
More AT&T Fee Increases on the Way in Iowa and Nevada - In last week’s editionii of TRACNotes, we discussed AT&T’s impending fee hikes in three states. This week, AT&T announced additional fee increases for local and long distance customers in two more states -- Iowa and Nevada. Starting Monday, March 14, AT&T local subscribers in Nevada will see the rates they are charged for AT&T’s Complete Maintenance plan, a bundled offer that includes inside wire maintenance and telephone equipment replacement, and AT&T Voice Mail increase by one dollar to $6.95 per month. The cost for AT&T's Voice Mail Plus service will increase by two dollars to $8.95 per month. The monthly fee for the stand-alone Inside Wire Maintenance Plan will increase by fifty cents to $4.45. AT&T long distance subscribers in Iowa will see their In-State Connection Fee (ISCF) increase by fifty cents to $2.49 per month, effective June 1, 2005. The ICSF is a discretionary fee that AT&T charges its long distance customers to help AT&T recover the costs charged by local telephone companies to carry AT&T’s in-state long distance calls over their lines. For more information on these and other AT&T rate and fee changes, click hereiii.
WIRELESS WATCH
Massachusetts Wireless Customers Fed Up With Poor Service - A new study released recently by the Massachusetts Public Interest Research Group (MASSPIRG) shows that people are fed up with poor service from their wireless telephone providers. According to MASSPIRG’s study, 68% of respondents reported having problems with their wireless phone service, including lack of coverage, dropped calls, and poor sound quality. Thirty-five percent of those surveyed said that early termination fees currently ranging from $150-$275 prevented them from switching providers. Additionally, 42% of survey respondents said that they had experienced billing problems with their provider during their contract. MASSPIRG’s study recommends a number of common-sense consumer protections, which have been incorporated into the Cell Phone Users’ Bill of Rights bill currently before the Massachusetts State House. These provisions include:
- A requirement that carriers obtain express permission from their subscribers before making their wireless phone numbers public and not charge a fee for keeping the numbers private
- A standardized, easy-to-read wireless contract along with accurate coverage maps
- Giving consumers the right to dispute billing errors with the state utility commission without the threat of discontinuation of service
- Ordering the state utility commission to monitor and report service quality data.
- A risk-free trial period during which consumers can cancel service without an early termination fee
- A prohibition of wireless telephone contracts terms in excess of one year, but with an option for renewal
The MASSPIRG study also includes a useful shopper’s guide to wireless service with a listing of all the current prices and plans from the nation’s major service providers. For more information and to download the full report, click hereiv.
New Study: 44% of U.S. Teens and Pre-Teens Have Wireless Phones - Almost half of the nation’s 10-to 18-year-olds own a mobile phone, according to a new study released this week by NOP World Technology, a market research firm. Furthermore, ownership among 12-14 year olds increased from 13% in February 2002 to 40% in December 2004. The majority (73%) of 18 year olds own cell phones as well, a 15% increase from 2002, and three-quarters (75%) of 15-17 year olds also carry cell phones, up from 42% in 2002. For more information, click herev. According to separate study from the Wireless World Forum (WWF), young mobile users in the U.S. now spend more on wireless phone products and services than any other market in the world. According to the WWF study, users under the age of 10 spend 12% of their pocket money on mobile offerings, and 10-to 14-year-olds spend 39% of their money on wireless products and services. With the explosion in popularity of wireless ring tones, games, and other so-called "premium services", parents should be sure to discuss with their children what constitutes acceptable use of their mobile phones. Young mobile phone users tend to download first and think later when it comes to pricey premium features on their phones. Your pocketbook could be the one to pay the price if out-of-control wireless use isn’t reined in from the start.
TRAC IN THE NEWS
Chicago Tribune: Bundled Plans Only Save Money for Heavy Users - TRAC’s consumer tips on buying “bundled” local and long distance plans got some welcome publicity this week thanks to a story in the Chicago Tribune. “Consumers are being sucked in by heavily promoted phone plans that seem to be a bargain but actually can be more expensive,” noted the article. “The industry secret is this: Unlike many other consumer purchases, telecom services are often cheaper when bought a la carte.” To read the full article, click herevi (free registration required). The TRAC study mentioned in the article, the TeleTips Residential Long Distance Comparison Chart, is available for purchase from TRAC for $6 ($7 by mail) by clicking herevii.
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!
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 hereviii 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 hereix.
©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
