One prevalent issue among prepaid cellular providers is of traffickers. We’ve discussed this at length on Prepaid Reviews, but for a two-sentence re-hash: Many prepaid providers subsidize boxed handsets, like the ones you’d find at Wal-Mart, so more customers can buy the phones. The companies hope to make the money back when the customer purchases minutes, but that plan is thwarted by traffickers who purchase subsidized handsets in bulk, unlock them, and then sell them at a market rate. Prepaid companies lose big, and so they’ve helped propose the Wireless Prepaid Access Enforcement Act of 2009. There’s a lot to it, and Jennifer Granick of Electronic Frontier Foundation has the analysis.

Posted in Consumer Issues on October 28th, 2009
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User caki on Howard Forums posts a reminder that we could all use. His AT&T MediaNet features expired on the 20th of September. So on that morning he went to refill, only to find everything wiped out. AT&T customer service gave him a “one time” restore, but was reminded that users must refill before the listed date. So when you see the expiration date on your prepaid wireless account, make sure to top up at least a day before that. Otherwise, your account might get wiped.

Posted in Consumer Issues on October 7th, 2009
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If you look through the user reviews on our pay as you go cell phone providers, you might notice a theme of discontent. The reviews are usually well balanced between positive and negative in general, but there is a specific type of negative comment I’ve seen a lot of lately. Some people claim that a prepaid carrier owes them money for one reason or another — minutes balance not transferring is the No. 1 complaint, specifically. If you think you’ve ben wronged by a prepaid carrier and that they owe you money, you can send your dispute to the FCC. It’s a much better and responsive process than the Better Business Bureau.

Posted in Consumer Issues on September 25th, 2009
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T-Mobile currently has a promotion running, Mobile Makeover, which alleges to find you the best deal on a mobile service plan, based on your needs, regardless of carrier. It’s supposed to be them playing the good guys, turning away customers if they can find better deals elsewhere, rather than trying to make the sale at all costs. For the service they partner with BillShrink.com, a site which compares cellular plans across carriers. The only problem is that BillShrink only compares major carriers. Consumer Reports tackles the issue, noting that oftentimes prepaid carriers have cheaper plans than their postpaid counterparts.

Posted in Consumer Issues on September 21st, 2009
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The National Do Not Call Registry has saved many a headache for regular Joes. Opened in 2003, it allows consumers to enter their number on a registry which will preclude it from telemarketing autodialers. People can register their cell phones, but under federal regulation they need not: “FCC regulations prohibit telemarketers from using automated dialers to call cell phone numbers.” There have been rumors lately which suggest a reversal of this policy, much to the chagrin of almost everyone outside the telemarketing industry. Thankfully, the rumor appears to be bunk. The FCC has put it to rest, assuring citizens that the law will not allow autodialers to call their cell phones. This leaves only the rogues to deal with.

Posted in Consumer Issues on September 18th, 2009
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One question which has plagued prepaid wireless recently is of what to do with 911. Not just the service — though we’ve heard a few instances where 911 didn’t work from a prepaid phone — but of how to pay the tax. Postpaid cellular users pay a monthly 911 fee to cover operational costs. So why don’t prepaid users? Because there’s no easy way to implement it. There is no monthly bill, so there’s no chance to add on the charge. Still, a solution might be on the way. Jeff Robertson of the 911 Industry Alliance says that point of sale charges may be the way to go. Of course, he’s facing significant opposition.

Posted in Consumer Issues on July 20th, 2009
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We’ve been hearing a lot about the growth of prepaid wireless lately. Whether it’s T-Mobile adding more prepaid customers than postpaid or MetroPCS adding hordes of subscribers, it seems to be at the forefront of the cellular conversation. How long will it stay there? Some think it’s here to stay — that customers will in the long run prefer not to have a contract. Others, though, think emerging technologies, like mobile Voice over Internet Protocol (VoIP), will marginalize prepaid service.

Posted in Consumer Issues on April 21st, 2009
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When a survey makes a radical claim, it’s best to take it with a grain of salt. Case in point: after we found a survey which claimed that 17 percent of cell users switched from postpaid to prepaid, said survey’s methodologies were subsequently questioned. So when a new survey says that cell phone users are paying an average of $3 per minute, I’m quite skeptical. It means that a lot of people aren’t using close to all the voice minutes on their plan.

Posted in Consumer Issues on April 15th, 2009
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For years the FCC has been trying to get cellular carriers to become e911 compliant. With a larger and larger percentage of emergency calls coming from cell phones, it’s important that the call get routed to the proper 911 center, and that the first responders can locate the phone using cell towers. We saw an example of this in Ohio last week, after a Miamisburg man’s house and business caught fire. He called 911, which routed him to the local police department, which wasn’t open and which had a recording prompting people to call 911 for emergencies. Clearly, this is not the best way to operate an emergency service. Had the man’s phone been 911 compliant, help would have gotten to him before his “home was fully engulfed and a near total loss.”

Posted in Consumer Issues on April 13th, 2009
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A recent survey, which we discussed Monday, found that many Americans are switching to prepaid services from their postpaid deals. Specifically, they found that 17 percent of contract cell phone users have switched to prepaid within the past six month. That seems like a pretty significant number, so it came as a surprise to see this headline come up in an alert: No Huge Shift to Prepaid Wireless Foresen due to the Recession. Hm. What could he mean by that, in the face of the data presented?

Posted in Consumer Issues on March 26th, 2009
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Once it became clear that America was in the throes of recession, public opinion began to shift regarding prepaid wireless. Once the black sheep of calling options, usually reserved for the very young or the credit challenged, people are now viewing it as a way to cut back on cell phone costs. Since many companies offer unlimited calling for far less than contract carriers and others offer pay-per-minute plans, consumers can find value in these prepaid options. According to a survey by the New Millennium Research Council, the shift is already beginning. They found that 19 percent of consumers with a cell phone have cut service in the last six month. This includes switching from their contract to prepaid.

Posted in Consumer Issues on March 23rd, 2009
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One topic we’ve seen a lot of in the past year or so has been the issue of 911 fees for prepaid cell users. In fact, just last week we discussed how e911 services aren’t totally effective yet. This week we open with a story about 911 fees, which aren’t assessed to prepaid users, but which there is a growing cry to impose. The Thibodaux Daily Comet has a story about how a few local parishes are looking to add a new fee for every purchase of a new prepaid wireless refill card.

Posted in Consumer Issues on March 2nd, 2009
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A big issue these days is for phones to be e911 compatible. The FCC has mandated that all carriers be in 100 percent compliance by September 11, 2011, invoking a national tragedy to make their point. It does make sense in a symbolic way, though, as the idea behind full compliance is that all cell phones can be tracked and found by first responders. It still looks like about 25 percent of phones still aren’t compliant. There’s still over two years until the date, though, so presumably it will be done by then.

Posted in Consumer Issues on February 25th, 2009
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Yes, legislators are at it again, trying to come up with registries for those who purchase prepaid cell phones. This time it’s in Missouri, where Rep. Ed Wildberger wants to see anyone who buys six or more prepaid phones placed into a registry to be used by the Missouri State Highway Patrol. We’ve seen similar proposals by other states, though none have been able to make it work on a practical level. It appears, though, that this bill is the best of the crop.

Posted in Consumer Issues on February 16th, 2009
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A number of states currently have laws requiring a hands-free device while driving. These states believe that accidents can be reduced by minimizing distraction. A hands-free device allows the driver to keep both hands on the wheel (though from experience most people drive with one hand anyway). Now the USA National Safety Council wants a nationwide ban on cell phones while driving. This probably won’t be met with much support, but there is plenty of evidence for such a measure.

Posted in Consumer Issues on January 13th, 2009
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Expanding on the discussion we’ve had here regarding kids and cell phones, I was wondering if there should be some kind of restriction on advertising cell phones to kids — kind of like the restrictions on advertising alcohol and cigarettes. The idea comes from this article, which mentions the French government’s efforts to ban the advertising of cell phones to kids. Knowing what most of us know about the United States, such a law probably would never find its way out of committee in Congress. However, the question is, should it?

Posted in Consumer Issues on January 12th, 2009
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Happy New Year everyone. Hopefully next week will bring us some news in the world of prepaid wireless. For now, we’re going to continue discussing issues related to the industry. Today we’ll look at the issue of smartphone vs. prepaid. They’re on two different ends of the spectrum. Prepaid is considered a low-cost alternative to contract cell phone service, while smartphones not only require a contract (for the most part), but a data plan which can add $30 to your monthly bill. So if the economy is headed downward still, will the reaction by consumers be to slow the smartphone trend in favor of the cheaper prepaid option?

Posted in Consumer Issues on January 2nd, 2009
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Nope. Still nothing going on the prepaid side of things. So let’s end the year with one of those boogeyman posts. Caught this one on Engadget Mobile. The scientists at the European Research Institute for Electronic Components have studied multiple effects of radiation on red blood cells. This comes from low-level radiation, meaning that your cell phone probably gives off this level. So what do you have to be scared about this time? Your hemoglobin can leak, leading to kidney damage and heart disease. Scurry.

Posted in Consumer Issues on December 31st, 2008
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As if you needed to read that title to know that your wireless carrier is making boatloads off SMS charges. Apparently, though, some people think that the rise in text messaging costs over the past two years has been “business as usual.” The demand has increased, so that means higher prices right? Not so fast. Randall Stross of the New York Times walks us through text messaging, focusing on the insane profits wireless companies reap from the poor consumer.

Posted in Consumer Issues on December 30th, 2008
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In these tough economic times — see, you can start any article off with that line nowadays — families are looking to cut costs wherever they can. We’ve mentioned, on multiple occasions, how prepaid wireless can help a family reduce their spending on communications costs. Another measure they can take is to use cell phones only and ditch the now-redundant landline. It seems many are taking that step. According to an AP report, landline only households have grown to 18 percent. This is in addition to the 13 percent of households which have landlines, but place and receive the majority of their calls via cell phones.

Posted in Consumer Issues on December 18th, 2008
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Do you talk on the phone while you drive? We’ve touched on this topic plenty of times on Prepaid Reviews, always coming down on the side of safety. Hey, I’m a former handset-to-the-ear-while-driving guy, and I only stopped after a near-accident. I got lucky. Many do not. Some have argued that it’s no different than talking to a passenger. A recent survey, though, claims that driving while on a phone is more dangerous than talking to a passenger.

Posted in Consumer Issues on December 2nd, 2008
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Prepaid and the economy. It’s a meme you’ll hear around these parts in the coming year for sure. Think about it. With rough economic times forecasted for our immediate future, why commit to a two-year cell phone contract, where you’ll likely pay for more than you use? With prepaid, you don’t commit and only pay for minutes you actually end up using. A recent survey, though, suggests that people aren’t that willing to change their spending habits when it comes to mobile phones. While 86 percent of respondents said they’d eat out less, just 32 percent said they’d spend less on mobile phone service. It seems like a missed opportunity.

Posted in Consumer Issues on November 21st, 2008
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Just this past Friday, we discussed how the best way to start saving on your cell phone bill is to go prepaid. This is something we’ve been talking about for a while, given the state of the economy. The prepaid movement seems to be coming around, with T-Mobile adding more prepaid than postpaid subscribers in the third quarter. Now we get word that Boost Mobile predicts that prepaid grow more than postpaid in 2009. Now wouldn’t that be something?

Posted in Consumer Issues on November 17th, 2008
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The story dominating the Internet for the next year, at least, will be the state of the U.S. economy. Things look gloomy now, and people are looking for ways to save money. We’ve talked earlier this year about prepaid and the American economy, and I even wrote an article for Discuss Wireless on the issue. the Telecommunications Research & Action Center (TRAC) has issued a list of ways to cut on your phone bill. We’ll look at the five items. Unsurprisingly, it starts with prepaid.

Posted in Consumer Issues on November 14th, 2008
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With the economy in a state of uncertainty, many individuals and families are cutting back on costs. As we’ve talked about previously, one place where they can save monthly is on the cell phone bill. Of course, since cell phones have become ingrained in our daily lives, it’s tough to cut them out completely. Yes, this is to say that prepaid can be a solution. A recent survey shows that 76 percent of cell phone users are planning to immediately cut back. If you’re among them, you can find a deal from one of our featured pay as you go phone providers.

Posted in Consumer Issues on October 30th, 2008
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So we’re actually going to get some new competition as a result of the 700 MHz spectrum auction. Cox, a cable company with 6.2 million subscribers, will take its spectrum and build out a wireless network. They expect to be up and running in the second half of 2009, so about a year from now. Yet, that sounds a little fishy, doesn’t it? After all, doesn’t Cox need to go through the painstaking process of building out a network? Sure they do. But they have an interim plan.

Posted in Consumer Issues on October 28th, 2008
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One of the major worries of the pending Verizon-Alltel merger is that it will further sap competition in the wireless space. This is understandable, considering you’re taking the nations’ No. 2 carrier and combining it with the No. 5 carrier to create the No. 1 carrier. After official approval, Verizon will have over 80 million subscribers, surpassing AT&T, the current national leader. The Public Interest Spectrum Trust wants the FCC to think long and hard before it gives wireless carriers even more power, says the Washington Post.

Posted in Consumer Issues on October 21st, 2008
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Over the summer, we learned that Massachusetts is considering a system whereby prepaid cell users would have to register their phones. The idea is to place the burden on the retail store to keep records, which has been the main objection to the proposed legislation. That, and the fact that not everyone has access to the required ID. In any case, it appears that the British government is working on a similar plan. Could this set a precedent that seeps into the U.S.?

Posted in Consumer Issues on October 20th, 2008
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Our intent with Prepaid Reviews is simple. We want to have as much information as possible, arranged in a meaningful way, which can help you make a decision about purchasing prepaid cell phones and services. According to a recent survey, published at Cellular News, it’s working. Over 60 percent of Americans who buy mobile phones use “online product reviews and user comments” to help determine their decision. About half of that number cited blogs as a strong influencer. This is not so much a praise of such sites, really, as it is a praise of consumers who make sure they have all the relevant information at hand before making a purchase. In theory, it leads to smarter buying decisions.

Posted in Consumer Issues on September 30th, 2008
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Hey, did you know that Metro PCS and Leap Wireless were tangled up in litigation? I’m not surprised, but I didn’t know. This morning, via MarketWatch, we get word that the cases have been settled. That’s not all, though. The companies have gone from fisticuffs to pals, as they entered into a national roaming agreement which will benefit subscribers of both carriers. As if that wasn’t enough, they also exchanged a bit of spectrum.

Posted in Consumer Issues on September 29th, 2008
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When you look through our prepaid cell phone reviews, you’ll notice a section titled “Earliest Minute Expiration.” Yes, when you buy prepaid minutes, they’re not yours forever. Some might be outraged at this, arguing that this is just another way the cell carriers squeeze every last penny out of you. However, like most prepaid consumer issues, the carriers have a perfectly good explanation. We turn to Christina Tynan-Wood of InfoWorld, who spoke to Virgin Mobile about the issue.

Posted in Consumer Issues on September 26th, 2008
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At no point in the foreseeable future do I see this question going away. When should a kid get a cell phone? Clearly, there’s not a single, concrete answer. It just pains me, you know, to see a 10-year-old with a cell phone in hand. I dunno, I guess it has to do with youthful innocence or something. Anyway, Terri Gruca of WCCO in Minnesota caught up with Tim Wolfe, a Verizon Wireless rep, to ask him about when kids should have cell phones.

Posted in Consumer Issues on September 9th, 2008
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As you might know at this point, competition isn’t exactly open in the wireless communications industry. Spectrum is scarce; you can’t just go out and make a big investment in spectrum and build out a new network. There’s only so much available. The government auctioned off a good chunk of spectrum earlier this year, in what is expected by many to be the last such spectrum auction for some time. So how can a company acquire spectrum under these conditions? Via InformationWeek, we hear of a company called Spectrum Bridge. They’re a secondary market which sets up buyers and sellers of spectrum.

Posted in Consumer Issues on September 8th, 2008
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Last week, J.D. Power and Associates released a semi-annual survey on the state of customer service in the wireless industry. While Verizon took home top honors, that’s not the main point of this. What caught my attention, and what surely was of note to those who leave comments on our reviews, is that wait time for customer service is up to 4.4 minutes on average. Yikes. That’s up 34 percent from last year, when the average was 3.3 minutes on hold. This cannot be good for the wireless industry’s spotty, to be kind, reputation regarding how they treat their customers.

Posted in Consumer Issues on August 18th, 2008
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It’s not like this is totally new, but there are some states looking to require ID for prepaid cellular purchases. The latest state, according to the Boston Globe, is Massachusetts. State Rep. John J. Binienda wants to impose this requirement in order to aid police investigations. He’s being met with resistance, though, and the bill could be delayed until next year.

Posted in Consumer Issues on July 30th, 2008
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After voting to impose a 50-cent 911 tax on prepaid phones and minutes in June, the Texas Commission on State Emergency Communications faced nearly immediate requests to repeal it from state legislators. Their argument is that prepaid users, for the most part, comprise those who have a lesser ability to pay this tax. While no decision has been made yet, we learned yesterday that the commission will hear additional comments on the issue.

Posted in Consumer Issues on July 29th, 2008
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As much as we love it, the state of prepaid in the U.S. isn’t at all impressive when compared with the rest of the world. Carriers here want nothing more than customers to sign on the dotted line, committing them for two years to the one service (and charging huge early termination fees in order to keep them around). They also lock down handsets to one carrier, making a switch harder. This is true in the prepaid realm as well. Things aren’t the same everywhere else, though, as Stefan from IntoMobile relates.

Posted in Consumer Issues on June 16th, 2008
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Some less than pleasing news from the State of Massachusetts. The state House Ways and Means Committee has passed a bill which will require retailers to not only procure a photo ID from anyone buying a prepaid phone, but to keep the record on file for two years. They will also be required to send a copy to the state attorney general. While some believe that this will help curb the use of prepaid phones by terrorists and drug traffickers, there are quite a few arguments positing that this will only hurt people in the long run.

Posted in Consumer Issues on June 13th, 2008
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This is such a common practice in the U.S. that I’m surprised that this hasn’t happened already. Every cell carrier — or nearly every one, at least — advertises “free” phones. Of course, there’s always a catch. Many times, you have to pay for the phone, and mail in a rebate. In addition, you have to sign a two-year contract, which is anything but free. The Oregon attorney general doesn’t seem to think this is all that fair, and has reached a settlement with U.S. Cellular that will force them to spell out their promotions.

Posted in Consumer Issues on May 27th, 2008
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Exclusive deals between carriers and handset manufacturers has been a staple of the U.S. wireless industry. Manufacturer creates hot new handset, shops it around to carriers, and picks the one that gives them the best deal. This means more money for the manufacturer, since exclusive contracts cost more. And once the contract is up, the buzz is created, meaning people on other networks are eager to buy it up. Smaller, rural carriers loathe this practice, though, and it’s tough to blame them. What manufacturer is going to give an exclusive to a company with just over a million subscribers? Well, they’ve had enough, and are asking the FCC to look into the anti-competitiveness of these deals.

Posted in Consumer Issues on May 20th, 2008
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Unless you work for a wireless carrier, it’s difficult to not support the practice of unlocking phones. It means that the phone you purchased is truly yours. You can take it to a compatible carrier of your choice, without having to pay the new carrier for yet another handset. There are just a couple of problems. First, it’s not always easy to unlock handsets — and newer phones are further complicating the issue. Second, there are only two GSM carriers in the U.S. and one in Canada. While there are a select few GSM MVNOs, options are still limited. In any case, there’s a new device on the market, called SIMable, a chip that attaches to your SIM card, rendering it unlocked.

Posted in Consumer Issues on April 29th, 2008
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This AP article talks about Americans cutting back on any expense they can in order to make ends meet as financial times get tougher and tougher. Just because we’ve been talking about it lately: “And, she’s considering cutting off their cell phone service or moving to a prepaid plan, to reduce expenses.” I suspect a lot of people will opt to go this route. It’s unfortunate that things have come to this, but at least we do have prepaid cell options so we don’t have to go completely without a phone.

Posted in Consumer Issues on April 25th, 2008
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Apparently, throwing away your cellphone isn’t just environmentally hazardous, it’s downright wasteful. ReCellular, an electronics stability firm, is working on a going green campaign (who isn’t nowadays?) in anticipation of Earth Day. They lead with a killer stat: We discard 40,000 cellphone a day, meaning 150 million per year. I was under the impression that as a whole, we’re not really dropping cellphones into landfills too often — that most people held onto their old phones as backups (I know I do).

Posted in Consumer Issues on April 21st, 2008
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Since we were on the topic of talking while driving earlier this week, I figured this would be of some interest. Via the Wirefly blog, a list of cell phone driving laws in every state. This can be particularly useful if you’re planning an interstate trip. The last thing you want to be is someone with out of state plates violating the local cell phone laws. Think you’ll get banged with the maximum ticket? Damn straight you will.

Posted in Consumer Issues on April 18th, 2008
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Two topics we’ve long spoken of from the consumer standpoint are the practices of subsidizing and locking phones. There are various reasons given for each practice, but both come down to the carrier maintaining some amount of control over what is used on their network. Virgin Mobile CEO Dan Schulman recently spoke with Fierce Wireless, and this topic came up.

Posted in Consumer Issues on April 16th, 2008
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It might seem obvious, but a new study shows that children are distracted while on their phones, and therefore are at a far greater risk of being struck by a vehicle when crossing a street. This covers children aged 10 to 12, who were put to task through a virtual simulation. This was repeated six times with a cell phone, and six without. And, unsurprisingly, the children couldn’t walk and chew gum talk on their cell phones.

Posted in Consumer Issues on April 15th, 2008
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We’ve seen a number of states adopt stricter talking-while-driving laws lately. In my state, it has been classified as a Type A offense. That is, if an officer sees you on your phone, he can pull you over for just that. Previously, it was a secondary offense — where they could pull you over for a bum taillight and issue you a second ticket for talking on your phone. This doesn’t seem to deter many people. I see people with their handsets to their ears all the time. Clearly, the new legislation isn’t working. But what if insurance companies stepped in?

Posted in Consumer Issues on April 15th, 2008
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So it appears the economy isn’t doing too hot. Without getting into the specifics, we’re seeing a meltdown of the subprime mortgage lending practice. This has led to all sorts of messes, including the recent buyout of investment bank Bear Stearns. Virgin Mobile actually cited the country’s economic downturn when it reported its less than stellar fourth quarter sales. Not only that, but they predicted that these economic conditions would continue to hamper their efforts in 2008.

Posted in Consumer Issues on March 18th, 2008
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Caught this story over on Consumerist, and I thought I’d bring it up, since it is clearly an issue in the prepaid realm. When you buy a phone, as when you buy any product, there is a certain window in which you can return said phone. However, since it is an electronic device and the carrier stands to lose money from a return, these periods are usually rather short — 14 days most of the time. Watch out, though, for simple tricks the carriers might play during that period. They might seem generous, but it could hurt you in the long run.

Posted in Consumer Issues on March 14th, 2008
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Over last summer, I used to look for cell phone consumer issues every Friday. Yeah, we go over them throughout the course of the week, but those are usually larger issues. This is a smaller one — $5 small, but hey, 5 dollars is 5 dollars. In any case, it appears that AT&T is testing a program starting on Tuesday whereby customers who pay their bills over the phone are charged a $5 fee. This actually isn’t uncommon — I know many credit card companies that charge you to call them and pay your bill. However, just because everyone else is doing it doesn’t make it right.

Posted in Consumer Issues on March 7th, 2008
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