Editor’s Note: In order to provide you with the most comprehensive consumer information available, we have decided to change the publication schedule of TRACNotes. Instead of a weekly edition, we will now be publishing on a bi-monthly basis. This change will enable us to provide more in-depth content to help you, the TRACNotes reader, continue to get the best tips, news, and analysis about the consumer communications marketplace. Should you have any questions about this change, please e-mail the editor at trac@trac.org.
Major Carriers Jump on Unlimited Wireless, But Is It Worth It? - The past few weeks have been a good one for wireless consumers who can’t seem to get off the phone. Three of the four major national wireless carriers -- Verizon Wireless, AT&T Mobility, and T-Mobile – unveiled unlimited wireless voice calling plans for $99.99 per month. Sprint-Nextel is testing unlimited voice in four cities and may go national very soon in response to the other three carriers’ announcements. This shift in the wireless market reflects both the falling cost of making wireless calls and the perceived desire of consumers to have calling plans where they don’t have to worry about going over their allotted plan minutes. This follows a similar trend to what happened over the past decade in the landline voice industry, where metered long distance plans were gradually replaced by all-you-can-eat bundles of local and long distance service. While many consumers gravitated to those bundled landline plans, TRAC’s research indicates that the typical phone user can still save money by sticking with a metered long distance plan coupled with a standard, unlimited local plan. Similar math applies to the new unlimited wireless plans. The great majority of users do not make enough wireless calls in a month to need an unlimited voice plan. In addition, none of the companies have announced that subscribers will be able to share minutes on these plans, making them suited mostly to the power-user as opposed to the great many subscribers who share their minutes on so-called “family” plans. Another type of user who may benefit from the unlimited wireless plans are individuals who are already spending in excess of $100 combined on their landline, long distance, and wireless services. Such users, who may already be investigating ditching their landline phones anyway, could potentially save by going to an unlimited wireless voice plan. An additional point to keep in mind is that only T-Mobile is offering unlimited text-messages as a part of the unlimited voice package. Verizon Wireless and AT&T Mobility are both charging an extra fee for unlimited text messages on top of unlimited voice. To read about the Verizon Wireless, AT&T Mobility, and T-Mobile announcements, click here, here, and here, respectively.
More AT&T Rate Increases Take Effect - Another round of rate increases for “legacy” AT&T long distance plans is on the way. Effective March 1, the following plans’ monthly recurring fees increased:
- One Rate 7¢ Plus – Increases from $4.95 to $5.95
- One Rate 5¢ - Increases from $7.95 to $8.95 for customers also subscribed to AT&T as their local toll carrier and have opted for online billing.
- AT&T Select Saver – Increases from $3.75 to $4.99
- AT&T One Rate 7¢ Global Plan – Increases from $4.95 to $5.95
Consumers on these plans may want to compare the new cost of their monthly long distance service to other options, both with landline long distance carriers and over other platforms such as cell phones, Skype, and prepaid calling cards. While the cost of these alternative technologies may not end up saving money versus the AT&T plans, it’s generally smart for consumers to do a communications “check-up” at least once every six months regardless. These rate increases could be just the incentive needed to get out those bills and run the numbers. The money you save could be yours!
For more information on the AT&T fee increases, click here.
WEB WATCH
Digital Dictionary Helps Parents Decode Teen ‘Net Language - Parents of net-savvy teens can be excused for sometimes thinking that their kids are speaking a different language. Thanks to the explosion of text-messaging on cell phones, instant messaging, and online forums such as MySpace and Facebook, a unique short-hand language has evolved. For parent who aren’t up on what “abend” or “pachs” mean (“absent by enforced net deprivation” and “parents are coming home soon,” respectively), this teen slang can quickly make it tough to keep up with what your teens are talking to their friends about online. Fortunately, there are a number of online dictionaries that will translate this language (commonly known as “Leet speak,” or “netspeak”) into proper English. One particularly comprehensive tool can be found at NoSlang.com. "It's really useful," said NoSlang.com founder Ryan Jones, "you can just copy and paste from somebody's LiveJournal and find out what the heck they're talking about. It's also a great way for parents help protect their kids by learning their language. Not many parents know to look for warning signs like paw, p911, or pir.” While teens have always had a language all their own (“Far out, man!”), the relative anonymity of much online conversation makes it even more important for parents to keep track of their kids’ activities online. In addition to NoSlang.com another good “Leet speak” translator can be found by clicking here. There is also a great beginner’s guide to “Leet speak” here.
TRAC IN THE NEWS
Don’t Lose Your Number During Porting Process - Consumers switching phone providers should be sure to follow the established procedure for porting (industry-speak for transferring from one carrier to another) their numbers, said TRAC Research Director John Breyault in the February 16 edition of The New York Times. Subscribers who cancel their service before a port takes effect run the risk of losing their phone numbers permanently if the subscriber’s previous carrier returns their number to the national number pool before the new carrier requests the port. “It’s a significant issue, and consumers are not being educated about how the system works,” said Breyault. Some consumers may try to “help” the process along by cancelling their service subscriptions once they sign up for new service from someone else. While this may save a few dollars in service charges, the savings likely won’t make up for the time and aggravation of having to get in touch with all of your contacts to notify them of a new number. To read the full New York Times article, click here.
Unlimited Wireless Voice Plans Mostly for Heavy Users, Says TRAC - The launch of an unlimited wireless voice plan by Verizon Wireless will likely benefit power users of wireless services most, said TRAC in a recent Newsday article. While the plans will appeal mostly to heavy users, some who have considered cutting their landlines may be able to use the new plans to as a substitute, said TRAC Research Director John Breyault. To read the full Newsday article, click here.
Small Business Owners Often Faced With Confusing Bills - Small business owners are frequently offered new phone plans that promise to save them money on their monthly bills. TRAC cautions these entrepreneurs to be sure and pay close attention to any contracts they are offered before they sign them. Be especially wary of third-party contractors that carriers sometimes hire to market their plans to business owners. These contractors are often paid on commission and therefore may have an incentive to not offer complete details when they are selling service. For the small business owner who just wants reliable phone service at an affordable price, getting caught by unexpected bills can be especially frustrating. "It's confusing to a consumer, particularly to a small business owner who just wants the phone to work," said TRAC Research Director John Breyault in a recent edition of the Jacksonville Times-Union. To read that article and learn about one unfortunate small business owner who got caught in such an incident, 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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