Consumers Union Demands Details on ETF Rebates, Open Networks
Consumers Union started a campaign this week demanding that wireless carriers provide details on promises to rebate early termination fees and open their networks to other devices. CTIA President Steve Largent responded with a letter to CU President Jim Gest saying increased regulation would do little to help consumers and asking for CU support on critical issues faced by carriers.
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“It’s time for wireless phone companies to provide concrete plans and details on promises they have made recently on early termination fees and network openness,” CU said. “Last year, T-Mobile, Sprint, Verizon and AT&T all announced they would pro-rate early termination fees in the coming months… Among the largest carriers, only Verizon has actually reduced its cost to cancel service.” CU noted that Verizon has reduced the ETF by just $5 a month, so a customer leaving a few weeks before the end of a two-year contract still must pay a $60 penalty.
CU said AT&T and Verizon Wireless have promised to open their networks, but the meaning of the promise remains unclear. The group said Verizon Wireless has made clear that devices must be tested in the company’s lab before being used on its network. “We look forward to details on how Verizon’s device and application ‘certification process’ will work when the lab opens its doors,” CU said. “Just how ‘open’ is Verizon’s network really going to be if all devices and applications still have to be certified by a lab owned and operated by Verizon? Will they let applications that compete with their core business thrive? We'll have to wait for specifics.”
“These companies have an obligation to tell consumers how they plan to make good on these promises, in unambiguous, detailed terms. We have more than a few reasons to be skeptical,” Chris Murray, CU senior counsel, said in a written statement.
Largent said on CTIA’s blog he had sent CU a letter seeking to work together on shared concerns. “A few days ago, the folks at Consumers Union began circulating an e-mail to their members and supporters asking them to share negative experiences about their wireless service,” he wrote. “Now Consumers Union is free to ask their membership whatever they like -- and I'm under no illusions about convincing them to ask their membership about positive wireless experiences -- but I think it’s important to accurately convey how the industry continues to respond to consumer demands and the value consumers are receiving from wireless.”
Largent said consumers should share industry concerns about taxes and government fees that subscribers must pay each month and on hurdles that the industry faces in siting towers to improve customer service. “I truly believe that a joining of forces on these issues can help make a real difference for wireless consumers across the country and I hope Consumers Union will consider partnering with us to address them.”