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Cellular Phone Forum / General / General Topics / May 2004

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Sprint lamely plays "Its costly" card.

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R?bert M. - 28 May 2004 11:55 GMT
Anytime Industry is asked to play nice they may play the "It's so
costly" card.

I'm old enough to remember 1993 when disaster was promised if the
"Family Leave Act" was passed by Congress, Bush senior had vetoed it 3
times, it was the first official act President Clinton did, sign it into
law! "It's so costly" they complained. The disaster never happened, the
layoffs never happened. The biggest peacetime boom happened, helped by
the Clinton Tax Reform of 1993, which also was attacked "It's so costly".

Well now California has passed a very reasonable "Consumer Bill of
Rights" for the Telecommunication Industry, following FOUR years of
negotiating with the Industry.

And Lauer of SprintPCS instead of taking the High Road and issuing a
statement like "We already do much of this, and certainly being fair to
the consumer is something we always want to do, so we'll quickly come
into compliance ahead of required dates where necessary"

NOPE - He lamely plays the "It's so costly" card, demonstrating that
SprintPCS isn't interested in playing fair.

http://biz.yahoo.com/prnews/040527/cgth046_1.html

Lauer took the low road:

"We're disappointed that a majority of the California PUC has chosen to
move ahead with a costly and unnecessary regulatory scheme at this time."

The Industry's continued customer unfriendly tactics HAVE made this
necessary !!! Lauer, look in the mirror, if you really don't like the
new rules, you have only yourself to blame, you didn't even follow the
Wireless Industry's own weak, toothless "Consumer Code".

I look forward to the California Bill going National.

The Moving Industry went through a similar set of having to accept rules
in order to curb abuses. And it required Federal action in the form of
the Household Good Transportation Act that was passed in 1980.
Scott Nelson - Wash DC - 28 May 2004 12:46 GMT
Other than 30 days instead of 15 days new contract termination clause, I
wonder what he is considering "costly"?

Scotty

> Anytime Industry is asked to play nice they may play the "It's so
> costly" card.
[quoted text clipped - 35 lines]
> in order to curb abuses. And it required Federal action in the form of
> the Household Good Transportation Act that was passed in 1980.
R?bert M. - 28 May 2004 13:01 GMT
> Other than 30 days instead of 15 days new contract termination clause, I
> wonder what he is considering "costly"?
>
> Scotty

Exactly!  I would expect a bimodal distribution in returns anyway, with
many in the first few days (folks go home and find no coverage indoors),
and many at the end of the 14 days - and those likely would for the most
part get displaced toward 30 days while folks decide if they can live
with the dropped calls or whatever issue causes them to decide against
service. Indeed with 30 days instead of 14, some folks might bite the
bullet and decide "I can live with it", so returns may not increase at
all. And either way 3,14,30 days, a returned phone can not be resold as
new. So I for one don't see moving to 30 days as a cost.

Any SprintPCS store employees care to offer their thoughts here?

> > Anytime Industry is asked to play nice they may play the "It's so
> > costly" card.
[quoted text clipped - 35 lines]
> > in order to curb abuses. And it required Federal action in the form of
> > the Household Good Transportation Act that was passed in 1980.
John S. - 28 May 2004 13:46 GMT
>Other than 30 days instead of 15 days new contract termination clause, I
>wonder what he is considering "costly"?

Probably all the paperwork that has to be filed with the state to show that
they are in compliance.

Keep in mind that new regulations also require new agancies (more taxes) and
means to show these agencies that the company is in compliance.

--
John S.
e-mail responses to - john at kiana dot net
R?bert M. - 28 May 2004 14:53 GMT
> >Other than 30 days instead of 15 days new contract termination clause, I
> >wonder what he is considering "costly"?
[quoted text clipped - 4 lines]
> Keep in mind that new regulations also require new agancies (more taxes) and
> means to show these agencies that the company is in compliance.

Nice try. The California Public Utilities Commission is already on the
ground.
Scott Stephenson - 29 May 2004 23:41 GMT
> > >Other than 30 days instead of 15 days new contract termination clause, I
> > >wonder what he is considering "costly"?
[quoted text clipped - 7 lines]
> Nice try. The California Public Utilities Commission is already on the
> ground.

With a fully staffed Cellualr Compliance group?  I think not.
Nebby - 28 May 2004 15:38 GMT
>> Other than 30 days instead of 15 days new
>> contract termination clause, I
>> wonder what he is considering "costly"?

> Probably all the paperwork that has to be filed with > the state to show that
they are in compliance.

That would be getting off very easy. Verizon, pulling the same marketing tricks
as SprintPCS (National Coverage pretense), just reached a settlement that may
cost them over $1 billion dollars.

<http://story.news.yahoo.com/news?tmpl=story&ncid=1293&e=8&u=/ap/20040528/
ap_on_bi_ge/verizon_wireless_lawsuit&sid=95573418>

"SAN DIEGO - A California judge has approved a settlement of a class-action
lawsuit that accuses Verizon Wireless of failing to disclose billing practices
and service restrictions for millions of customers, attorneys said Thursday.
The nation's largest wireless carrier agreed to give current and former
customers two vouchers. One offers a choice of up to $30 off a new or renewed
contract, a $24 credit on an existing contract, 1,500 text messages over six
months, $15 off Verizon merchandise, or a 120-minute long-distance calling
card. "
Donald Newcomb - 29 May 2004 06:20 GMT
> The nation's largest wireless carrier agreed to give current and former
> customers two vouchers.

Did it say what the lawyers for the class got? Often these class actions are
just covers for the lawyers to get rich while the class members get nothing
of value. Worthless cupons that require you buy something you don't
otherwise want. Do the lawyers get paid in cupons? Heck no! They get cold,
hard cash.

Signature

Donald R. Newcomb
DRNewcomb (at) attglobal (dot) net

R?bert M. - 30 May 2004 22:43 GMT
> > The nation's largest wireless carrier agreed to give current and former
> > customers two vouchers.
[quoted text clipped - 4 lines]
> otherwise want. Do the lawyers get paid in cupons? Heck no! They get cold,
> hard cash.

Sorry, your rant against lawyers is not applicable here.
Scott Stephenson - 30 May 2004 00:11 GMT
> >> Other than 30 days instead of 15 days new
> >> contract termination clause, I
[quoted text clipped - 6 lines]
> as SprintPCS (National Coverage pretense), just reached a settlement that may
> cost them over $1 billion dollars.

Pretty soon, you'll be advocating a government program to monitor public
restroom toilet flushing.  After all, the poeple that are too lazy or stupid
to read their Service Agreement and do some research on the industry are
probably the same ones that don't flush.
Scott Stephenson - 29 May 2004 05:24 GMT
> Other than 30 days instead of 15 days new contract termination clause, I
> wonder what he is considering "costly"?

Possibly the mountain of paperwork that will be required by the state to
measure compliance, along with the time in manhours to fill it out.  Or
maybe the filing fees for this paperwork, which will not resemble the $25-30
that is required for the simplest of typical state filings.  Or, it may be
the printing costs of the new Service Agreements, which will now require
many sheets of paper to accomodate the new required font size.

Or maybe they are just trying to out-do Florida, who has banned AT&T from
any attempt to inform customers of different plans and pricing (that might
save the customer money) when the customer is calling about a 'billing'
issue.  Seems they had a problem with double billing one month, and even
though they had already corrected over half of the overcharges on their own,
some very poorly written regulations were put into place that covered not
only these customers, but all customers.  According to the regulation, if
the customer calls AT&T and says there is a problem with their bill because
they are paying too much for service, AT&T is prohibited from offering any
other plan, because the customer has called about a 'billing' issue.

And people complain about the cellular companies?
John S. - 29 May 2004 13:19 GMT
>And people complain about the cellular companies?

:-)

There is absolutly no comparison between the Angels that the cellular companies
are and the legislative devils in the various state and federal government
agencies.

--
John S.
e-mail responses to - john at kiana dot net
Scott Stephenson - 30 May 2004 00:28 GMT
> >And people complain about the cellular companies?
>
[quoted text clipped - 5 lines]
>
> --

Something to ponder- how many extra minutes could you get from your carrier
with all of the taxes and Regulatory Fees?  In my case, I could more than
double my minutes and free long distance as well.  And when the new
"California Cellular Regulatory Charge" starts appearing on everyone's bills
(whether as a seperate charge or an addition to your rate plan), you'll end
up with even less service for your dollar.

One other thing to think about- where is there a law on the books that
allows one state to dictate the content of a website designed and ran from
another state?
John S. - 30 May 2004 13:56 GMT
>One other thing to think about- where is there a law on the books that
>allows one state to dictate the content of a website designed and ran from
>another state?

I am not sure what you are getting at here but web sites are not regulated in
any way, near as I can tell.

Now, if you are refering to a cellular companies web site - I don't know of any
of them that post their contracts and so the content being 10pt text is not
relevent.

--
John S.
e-mail responses to - john at kiana dot net
Scott Stephenson - 30 May 2004 15:46 GMT
> >One other thing to think about- where is there a law on the books that
> >allows one state to dictate the content of a website designed and ran from
[quoted text clipped - 8 lines]
>
> --

Actually, I was referring to the section of the new regulations that require
ths companies to add information to their websites.  I think this might have
stepped over the line- the websites, while viewable in California, are
designed or housed in California.

If it were my website, the following disclaimer would appear instead:

"Due to new regulations instituted by the California PUC, the information
contained on this website has been deemed to be sufficient for only 49 out
of the 50 United States, with California being the lone exception.
Therefore, we must ask that any resident of the State of California refrain
from utilizing the information contained herein.  We apologize for the
inconvenience, and we do not have the same belief as your State Government.
We understand that you are no less intelligent than the rest of the country.
Please direct all communications concerning the inability to use the
information on this website directly to the California PUC."

I know- not very customer friendly, and will never happen.  But an action
like this might get the type of attention needed to put an end to these
frivolous regulations.
Joel Kolstad - 30 May 2004 21:54 GMT
> Or maybe they are just trying to out-do Florida, who has banned AT&T from
> any attempt to inform customers of different plans and pricing (that might
> save the customer money) when the customer is calling about a 'billing'
> issue.

Let me guess... this happened after people called the state and complained
that they were constantly being given sales pitches when inquiring about
billing problems?  While AT&T may construe it as "informing the customer of
different plans and pricing (that might save the customer money)," I
guarantee you that in general AT&T wasn't doing it unless they felt they
could make money off of the practice.  Hence I think it's entirely
reasonable that the state regulates this.  After all, if a customer is
looking to save money, do you really think they'll have a problem figuring
out who to call at AT&T?

> According to the
> regulation, if the customer calls AT&T and says there is a problem with
> their bill because they are paying too much for service, AT&T is
> prohibited from offering any other plan, because the customer has called
> about a 'billing' issue.

There isn't a "problem" with their bill if the customer, say, went over
their "usual" minutes allowance and, say, is being charged by the minute.
I'm sure the intent of the Florida law was in no way whatsoever intended to
stop a customer service representative from saying, "Your bill is $50 higher
than usual this month because you exceeded your 400 'any time' minutes by
120 minutes which your plans bills you at $.40 per minute."  PERIOD.
There's no need to add on, "Of course, if you upgraded your plan to the
$55/month plan, you'd have 200 additional minutes and this won't happen
again..., blah, blah" -- people alredy know this!  Or if they don't, they
can certainly _ask_.

> And people complain about the cellular companies?

Show me ANYONE who has complained about first not being aware that there
were alternative plans available and then how fortunate they were when some
company representative informed them of such plans.  This is VERY DIFFERENT
than people who (1) don't understand their plans and end up getting charged
more than they expected, (2) understand the plan but don't keep close tabs
on their usage and then get annoyed when they go over, and (3) understand
the plan but think it's too expensive in any form whatsoever but still keep
it anyway and just like to whine about it. :-)
Scott Stephenson - 30 May 2004 22:09 GMT
> > Or maybe they are just trying to out-do Florida, who has banned AT&T from
> > any attempt to inform customers of different plans and pricing (that might
[quoted text clipped - 10 lines]
> looking to save money, do you really think they'll have a problem figuring
> out who to call at AT&T?

Actually, it came out of complaints only from people trying to get the
double billing corrected- they were being offered alternatives during the
call.  I agree that in that instance, no sales pitch is the proper way to
go.  But to say any call about a billing issue? And while I agree with some
points, why would they be singled out?  After all, this is common practice
in any industry.  Why are some getting a competitive advantage over another,
when even the State acknowledges that AT&T was proactively working to
correct the initial problem?

> > According to the
> > regulation, if the customer calls AT&T and says there is a problem with
[quoted text clipped - 12 lines]
> again..., blah, blah" -- people alredy know this!  Or if they don't, they
> can certainly _ask_.

Not talking about AT&T Wireless in this- its AT&T that got slapped with
this.

> > And people complain about the cellular companies?
>
[quoted text clipped - 6 lines]
> the plan but think it's too expensive in any form whatsoever but still keep
> it anyway and just like to whine about it. :-)

Again, not talking cellular here- its Ma Bell.
danny burstein - 30 May 2004 23:41 GMT
>Actually, it came out of complaints only from people trying to get the
>double billing corrected- they were being offered alternatives during the
>call.

Given the thousands, or more likely, hundreds of thousands/millions of
improper bills that AT&T sent out to former or non customers (and
cheerfully cashing the payments that ten or 20 percent of the people
sent in), I'd say this "punishment" against the company was minimal.

Also, this was not just in Florida which would have been ugly enough. It
was a nationwide practice. And it wasn't just a single batch of bills.

If, say, Moe's Towing and Telephone service sent out 100,000 fake bills
(and got a reply rate of 5%), Moe and Curly would would be enjoying their
next meals courtesy of the State.

Signature

_____________________________________________________
Knowledge may be power, but communications is the key
            dannyb@panix.com
[to foil spammers, my address has been double rot-13 encoded]

Scott Stephenson - 31 May 2004 00:56 GMT
> >Actually, it came out of complaints only from people trying to get the
> >double billing corrected- they were being offered alternatives during the
[quoted text clipped - 4 lines]
> cheerfully cashing the payments that ten or 20 percent of the people
> sent in), I'd say this "punishment" against the company was minimal.

None of what you guessed at was even close to accurate:

http://money.cnn.com/services/tickerheadlines/prn/nyw171.P2.05262004175117.07790.htm

> Also, this was not just in Florida which would have been ugly enough. It
> was a nationwide practice. And it wasn't just a single batch of bills.

Yes, it was a single batch of bills.  You might want to research a little
more.

> If, say, Moe's Towing and Telephone service sent out 100,000 fake bills
> (and got a reply rate of 5%), Moe and Curly would would be enjoying their
> next meals courtesy of the State.
danny burstein - 31 May 2004 01:07 GMT
>None of what you guessed at was even close to accurate:

>http://money.cnn.com/services/tickerheadlines/prn/nyw171.P2.05262004175117.07790.htm

How many years did Worldcom/MCI do this stuff before their whole house of
cards came atumblin down?

I'm not going to waste any more keystrokes. the facts are out there in the
complaints and settlements with a dozen (or more, by now) State PSCs and
similar groups.

Signature

_____________________________________________________
Knowledge may be power, but communications is the key
            dannyb@panix.com
[to foil spammers, my address has been double rot-13 encoded]

Scott Stephenson - 31 May 2004 01:50 GMT
> >None of what you guessed at was even close to accurate:
>
[quoted text clipped - 3 lines]
> How many years did Worldcom/MCI do this stuff before their whole house of
> cards came atumblin down?

Wasn't talking about Worlcom- the topic was AT&T.

> I'm not going to waste any more keystrokes. the facts are out there in the
> complaints and settlements with a dozen (or more, by now) State PSCs and
> similar groups.

Hmmmm- haven't seen any others.
R?bert M. - 31 May 2004 12:05 GMT
> >Actually, it came out of complaints only from people trying to get the
> >double billing corrected- they were being offered alternatives during the
[quoted text clipped - 11 lines]
> (and got a reply rate of 5%), Moe and Curly would would be enjoying their
> next meals courtesy of the State.

Are you saying a couple of Hundred Thousand each to the Republican Party
and to the Jeb Bush election campaign makes a difference?
John S. - 28 May 2004 13:44 GMT
>Anytime Industry is asked to play nice they may play the "It's so
>costly" card.

Anytime Government gets involved it is costly.

--
John S.
e-mail responses to - john at kiana dot net
R?bert M. - 28 May 2004 14:54 GMT
> >Anytime Industry is asked to play nice they may play the "It's so
> >costly" card.
>
> Anytime Government gets involved it is costly.

And getting ripped off by Cellular Carriers isn't?
Scott Stephenson - 29 May 2004 23:44 GMT
> > >Anytime Industry is asked to play nice they may play the "It's so
> > >costly" card.
> >
> > Anytime Government gets involved it is costly.
>
> And getting ripped off by Cellular Carriers isn't?

Who's getting rippied off?  Who's not getting exactly what they sign up for?
And where in the regulations were the carriers forced to change any current
business practices, axcept put their 10,000 word Service Agreements in a
larger font?

The PUC Commissioners were just helping Arnold out with  his money problems.
 
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