Consuming Interests: Cheap Trick: send us your cell phone saving tips - News and tips for consumers on shopping, saving money, deals and credit

This week's Cheap Trick Thursday will be inspired by Kevin Martin, the chairman of the Federal Communications Commission.

Martin recently lead a hearing on the early termination fees charged by mobile phone service providers and made some remarks that really deserve some applause.

According to his prepared statement, Martin noted in his remarks that cell phone early termination fees, which can range from $150 to $225, are "a significant sum for a subscriber to pay who is dissatisfied with the quality of service. In practice, it can lock people into a service they really want to leave."

"I believe early termination fees can be a legitimate means of recovering legitimate costs," he said. "But they shouldn’t be abused."

Here's more:

"The hallmark of a free market is the ability of consumers to choose from a variety of services and service providers. I am concerned that early termination fees are being used not as a means of recovering legitimate costs but as a means of locking consumers into a service provider. Early termination fees shouldn’t function as a hindrance to consumers’ ability to choose, or switch to, the service or provider they want."

Right now there are a bunch of class action lawsuits on early termination fees on the state level but the chairman said not all consumers benefit from class action suits and developing 50 different sets of regulations isn't good for consumers or for business.

Martin proposed five changes to the current system that make my heart go aflutter:

1. ETFs should be tied to the cost of the handset purchased by the consumer --- "for example, a $500 phone shouldn’t have the same early termination fee as a $50 phone."

2. ETFs should be prorated over the life of the contract. (note --- both Verizon and AT&T already do this.)

3. Contracts should last a reasonable period of time.

4. If a consumer renews a contract without receiving new equipment, the ETF should not be extended.

5. Finally, consumers should be able to take the phone home and receive their first bill to make sure the service and bill are consistent with what they expected, before an early termination fee kicks in.

And didja know at least one government agency doesn't pay early termination fees, according to the Associated Press?

But ETFs are not the only billing component that irks me ... I just learned that my friend gets charged to listen to voice mail on her cell phone, and last month I exceeded the maximum number of text messages permitted monthly by my plan.

So please share, readers, any method you're using to ease the cost of using a cell phone. Do you instruct your close friends and relatives not to leave you voice mail or text messages? Do you only call your mother after 9 p.m. or before 7 a.m.? Have you used any online services to mimic cell phone features or otherwise enhance your experience?

Comments

I have sprint's simply everything plan so for $100 or so per month, I get to do everything anytime for no additional fees. I think that's what every company should eventually do so that consumers aren't worried about exceeding their maximum minutes. text. msgs, etc.

Posted by: diggy | June 17, 2008 10:37 AM

I have an educator discount- my plan is in my sister's name, she got the family plan as she is the educator and myself and my parents pay her our portion of the bill. I was not pleased when I got hit with going over my text limits either, and I'm not convinced I went over by more than 600 texts as my bill told me. It's easier to pay than fight though, which is a major complaint of mine.

Airhead, don't give up! You should challenge the bill if you don't think you really sent/received 600+ texts. --- lfk.

Posted by: airhead | June 17, 2008 11:32 AM

Metro PCS has an unlimited plan for 4 lines for $100/mo

Thanks, but this isn't an option for Maryland readers, yet ... --- lfk

Posted by: Rigo C | June 18, 2008 4:20 PM