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TRACNotes

Vol. 4  # 43 -- October 27, 2006
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BUCKS WATCH


Last Chance for Sprint Customers to Get Out of Contracts Early – Sprint subscribers who want to get out of their wireless service contracts without paying an early termination fee have until the clocks strike midnight on Halloween to make their escape. A little known loophole in most wireless service contracts allows customers a 30-day window to end a service contract early without penalty after a carrier makes a change in a plan that affects a subscriber’s prices. In the case of Sprint, earlier this month the carrier announced that it would be raising the price it charges for text-messaging, triggering this contract clause. Note however that the loophole only applies to users who do not currently have a text-messaging plan, who send or receive at least one text message a month, and who have not yet paid their October bill (which signals that they agree to the increase). For additional information on this change, click here.


WASHINGTON WATCH


Weisbaum Calls For More Consumer Education - Earlier this month, the National Consumers League honored consumer reporter Herb Weisbaum with the Trumpeter Award, the organization’s highest honor. Weisbaum gave a stirring acceptance speech in which he called for a greater emphasis on consumer education in schools and in the media. Weisbaum was also critical of a corporate culture in America that seems to have lost its focus on customer service, especially in the technology industry. “All too often, customer service is an after-thought, if it’s thought of at all,” said Weisbaum. “The attitude seems to be helping a customer figure out how to use your product is just a waste of money.” Weisbaum also brought attention to the lack of attention that consumer fraud is getting from law enforcement, particularly as it relates to Internet fraud. “Rob a bank and get away with $5,000 and you’ll have the FBI on your case in a matter of minutes. Con dozens of senior citizens out of hundreds of thousands of dollars and there’s a good chance no one will even investigate,” said Weisbaum. He also noted that consumer groups need to look at new ways of educating consumers about the dangers they face from the new generation of cyber-thiefs. “Despite all the brochures, and tip sheets, new releases, press conferences and consumer stories, despite years and years of repeating the same warnings over and over again the message is not getting out,” Weisbaum cautioned. Despite the dire warnings, Weisbaum concluded with a note of optimism. “I’m a realist, but I’m also an optimist that things will get better. The battle will be won with small steps, but it can be won.” To read more about the Trumpeter Awards, click here. Herb Weisbaum also runs a great consumer tips site at www.ConsumerMan.com that we highly recommend.


WIRELESS WATCH


What To Know About the CTIA Consumer Code - Although there is no national telecommunications consumer protection law, the wireless industry has taken some action to promote some rules of the road for its members. All of the major U.S. wireless carriers have adopted the Cellular Telecommunications and Internet Association’s (CTIA) “Consumer Code for Wireless Service.” Aimed to, among other things, help inform wireless consumers of the services available to them, the code contains ten requirements that its signatories voluntarily accepted to fulfill. Companies who are part of the code must make known to costumers their rates and terms of service, have maps that show consumers where a company’s services are available, provide contracts and confirm changes in service to costumers, allow trial periods for their services, and provide specific details in their advertising. Wireless companies must also differentiate between carrier charges and taxes on billing statements, allow consumers to terminate service after changes to contract terms, provide a toll-free costumer service number that is displayed clearly by companies, respond promptly to consumer complaints and inquiries from government agencies, and follow laws and policies regarding customer privacy. To see the full version of the CTIA code, click here.


New Software Could Help Save Money on Ringtones - One of the fastest-growing segments of the wireless industry is mobile data and one of the biggest chunks of the wireless data market is ringtones. Ringtones, especially the so-called “master” tones that are played in near-stereo quality, are one of the hottest ways for wireless users to set themselves out from the crowd. Unfortunately, these fashion statements come at a significant price – generally around $2.50 per ringtone download. Many style-conscious consumers change their ringtones frequently, so the price of cool can quickly get out of hand. Fortunately, two companies have recognized this and are offering an alternative to high-priced ringtones. Xingtone and Ringtone Media Studio both offer software that can easily take any conventional audio file off a PC or CD, edit it to play well on a cell phone, and deliver the edited clip to a phone in a format suitable for ringtone usage. Both products are available for $19.95 for unlimited usage on a single phone. Sending customized ringtones to additional phones costs extra. Data charges may also be incurred from the subscribers’ carrier. While $19.95 may seem a bit pricey, the software is good for unlimited use. At $2.50 a pop to get ringtones directly from a carrier, spending $19.95 could be a bargain for ringtone-happy consumers. For more information on Xingtone, click here. To read more about Ringtone Media Studio, 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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