BUCKS WATCH
Verizon Local Customers in Ohio Could See Big Fee Increases - The Ohio Consumers’ Counsel this week warned local telephone users in Ohio to be on the lookout for impending fee increases from Verizon on several popular calling features. The increases include:
- Call Forwarding – Increases by $1.25 to $2.00 per month
- Caller ID w/ Name and Number – Increases $2.30 to $9.25 per month
- Three-Way Calling – Increases 75¢ to $3.50 per month
- "Big Deal” calling features packages – Increases by $3 more per month
Verizon local telephone service subscribers in Ohio should review their local phone bills to see if they are being charged for any of these services. Consumers who find that they rarely use these optional calling features should consider getting them removed from their accounts to avoid the higher fees. Fee increases like this are a good illustration of why it is important for all consumers to periodically reevaluate their communications needs. Be sure to not only compare the plans available from the carrier you are currently subscribed to, but also plans offered by other local service providers. In many areas of the country, there is likely to be a competing local exchange carrier that may be able to beat the deal that you are getting from your current carrier on basic service and the cost of additional service enhancements such as Caller ID and Call Waiting. For more information on the Ohio fee increases, click here.
WIRELESS WATCH
Remember to Factor In Activation and Upgrade Fees When Shopping – When shopping for a new wireless phone, remember to consider the costs that carriers charge to activate new accounts and upgrade existing subscribers. Most carriers make a big deal of advertising low-priced handsets, but few do a good job of highlighting the additional fees and charges that can make these cut-rate phone not such a good deal. For example, Cingular and Nextel both charge “phone upgrade fees” to existing subscribers who want to upgrade their service plans. Consumers should remember to distinguish between “activation fees,” which are generally only charged on new account, and “phone upgrade fees,” which apply to existing subscribers who activate a new handset. Here is a breakdown of these fees for the five major national carriers:
- AllTel – A $25 activation fee applies on all new post-paid accounts. An upgrade fee may also apply when additional lines of service are added to the account.
- Cingular – A $36 activation fee applies on all new accounts unless the new subscriber is signing up for a FamilyTalk plan, in which case the fee is $26 per phone activated. Note that most FamilyTalk plans include at least two lines of service, so new subscribers should expect at least $52 in activation fees. An $18 Upgrade Fee applies on all accounts, unless the subscriber is upgrading from a former AT&T Wireless phone, in which case Cingular will waive the Upgrade Fee.
- Sprint/Nextel – A $36 activation fee applies to new service activations, certain plan changes, and handset upgrades.
- T-Mobile – A $35 activation fee applies to all new service plans. While a separate upgrade fee is not charged, T-Mobile does base its handset upgrade pricing on the length of time the subscriber has been with their current rate plan and the length of time since the last handset upgrade. T-Mobile recommends that subscribers on one and two-year contracts wait 11 and 22 months, respectively, before upgrading their handsets in order to get the best price on their upgrade.
- Verizon Wireless – A $35 activation fee applies on all new lines of service. Upgrade fees do not apply
When shopping for a new phone or upgrading to a newer handset, be sure to add all applicable activation fees and upgrade fees to the sticker price of a new handset and be sure to ask the sales representative if it’s possible for them to waive the fees. For more information on phone upgrade fee, check out MSNBC.com columnist Bob Sullivan’s article on the subject by clicking here.
TRAC AND YOU
Reader Responds With High-Tech Communications Options – In last week’s edition of TRACNotes, we asked readers to send in their stories of how their have changed the way they communicate. A reader from Orlando wrote in with several of his high-tech options for saving on communications bills:
Q: How Have You Changed the Way You Communicate?
A: Skype as an intercom. Keeps a phone line open, and it's easier to click and keep your hands free.
TRAC Says: This is a great way for business partners, especially those in different locations, to keep in touch for voice communication. The only drawback to Skype is that it generally requires a microphone and headset attached to a computer to communicate. However, for companies whose employees rarely need an outside line, Skype may make sense as a way for co-workers to communicate within the office or between offices.
A: Follow-me cell phone device to transfer your cell calls to your home number, eliminating minute charges for local calls.
TRAC Says: Cingular’s FastForward service may be a money-saving option for consumers who receive most of their incoming calls on their wireless phones and don’t want to use airtime minutes while they are close to a home or office landline phone. While the service costs $2.99 per month, it could still be useful for wireless subscribers who find that the calls they are taking on the cell phone while at home or in the office are causing them to incur overage charges. For more information on FastForward, click here.
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
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