TRAC Applauds FCC Action to Ban Exclusive-Service Agreements - On Wednesday, the Federal Communications Commission voted unanimously to ban cable companies from entering into exclusive agreements for providing video services with owners of multi-dwelling units or MDUs. (e.g. apartment buildings, condominiums, etc.) This action was a victory for consumers because it will require that competitive video providers be allowed equal access to MDU’s. Since video, broadband, and telephone services are increasingly delivered over the same wires, the decision also sets the stage for more competition for the delivery of these services. TRAC believes that this issue is especially important for seniors, people of color, and low-income consumers since these groups disproportionately inhabit multi-dwelling units. The General Accounting Office found that in cities where a cable overbuilder operates, the incumbent cable company’s service prices are between 15% and 41% lower than in cities where no such competition exists. “Consumers in single-family homes are increasingly enjoying the benefits of competition between multiple video, broadband, and voice delivery platforms. Today’s decision expands these benefits to consumers in apartments, condominiums, and other multi-dwelling units,” said TRAC Research Associate John Breyault. “Broadband competition allows consumers to more affordably access low-cost Internet-based Voice over Internet Protocol services as well as competing calling services offered by telecommunications and cable companies,” said Breyault.
Confused About International Roaming? - Many American cellular phone users planning to travel abroad wonder whether their cell phones will work while they are overseas. Unfortunately, the world of international roaming often seems intentionally designed to confuse consumers. For example, customers of Verizon Wireless and Sprint-Nextel will likely find that their phones will not work at all in most countries since they work on the CDMA and PCS/iDEN standards, respectively, and most of the rest of the world operates on the GSM standard. T-Mobile and AT&T Mobility customers are in more luck since both companies’ networks operate on the GSM standard. Beyond operational worries, pricing is also likely to be an expensive headache. International roaming (i.e. using an unmodified U.S. cell phone to make calls overseas) is likely to cost $1.50-$2.00 per minute or more, depending on location. In many instances, customers can buy a replacement SIM card (the card in all GSM phones that holds network and customer information) in their destination country and use a prepaid service. Many U.S. carriers also offer overseas phone rental options and special roaming rates to customers that purchase international plans. Unfortunately, the end result of all these options is likely to be consumer confusion. However, the always useful Consumerist.com blog is ready with an easy-to-understand consumer guide to international roaming. The guide includes recommendations for the cheapest roaming options, depending on type of travel (infrequent, frequent, multiple countries, etc.), lists of U.S. phone models that will work in Japan and the pro’s and con’s of various international roaming options. To read the full guide, click here.
Premium Text-Messaging Fees and What to Do About Them - While the explosion in services selling ringtones, games, wallpapers, and other content via mobile phones is often seen by marketers as the “next big thing,” the costs to use them often leave consumers scratching their heads. In particular so-called “premium” text-messaging services have been making news lately. These services charge a monthly fee to consumers, typically in exchange for regular delivery of mobile content such as games, music, etc. Unfortunately, these services are often only loosely controlled by the wireless carriers and have been known to be somewhat unscrupulous when it comes to signing up customers. For example, consumers purchasing handsets with a “new” phone number may find that that number is actually an old number that was “recycled” (i.e. used by another subscriber previously). That user could have signed up for a premium messaging service, which continues to send content to (and bill) the account. Another way that consumers can inadvertently sign up for such services is when they fill out sweepstakes entries or questionnaires that ask for cell phone numbers. In the fine print of many of these forms are agreements to join “linked text messaging services,” that are in fact “premium services,” and many are quite costly. Charges of $5-$10 per month are not uncommon. Consumers who feel that they have been billed for such premium services in error should contact their service providers. Reports we have read suggest that carriers are generally flexible when it comes to getting such charges removed when customers can prove that they didn’t subscribe. In addition, consumers should be sure to read all the fine print before entering a sweepstakes or participating in television or radio contests that require votes to be texted in. To read more about premium text messaging fees, see Bob Sullivan’s excellent postings on the issue at MSNBC’s Red Tap Chronicles blog.
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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