I was reading an article the other day about an individual who purchased a Netbook. The Netbook was subsidized by AT&T, this reduced the overall cost of the Netbook to $100. Surprisingly, when the customer received their first billing cycle statement, the bill was for $5000. I think that’s a bit excessive.

One of the most infuriating things I do on a monthly basis is pay for my cell phone. It’s not an issue over using my service, it’s the fact that I have to pay for service.

Cell phone providers have a pretty good racket, they overcharge for the cell phone device, a charge for activation, they charge for minutes, they charge for insurance and they charge early termination fees; all this time you’re using a service and receiving substandard voice quality from a communications device that without warning can drop your conversation at some of the most inopportune times.

More after the jump…

Although unpopular right now, Sprint seems to have the best idea, provide everything under one umbrella and charge of fixed amount; allow people to use the service and devices that they paid for and not have to worry about the consequences of stepping outside some invisible boundary.

You might be asking what am I talking about?

First, let’s talk about the minutes. The cell phone companies charge you for the minutes. You have to choose a specific calling plan that you “think” is the plan for you. But let’s say that there’s an extraordinary event or circumstance that requires you to use your cell phone a lot more than you do normally, you go over your limit (a lot). This overage and charge is way outside your price range, way outside your budget. If you’re expecting a $75 cell phone bill and you receive a $1500 cell phone bill, I think you’re going to be a little bit perturbed and surprised; not necessarily in that order.

Should the provider contact you, should the provider send you some sort of warning or limit your service so you’re not charged some extraordinary amount of money? Yes. Yes they should… but do they? No. They continue charging you without concern for regard. From the basic philosophy of business, this is wrong. The provider is essentially robbing you at this point.

Second, so many times I talk to people who have specific talking plans. They have 1400, 2100 or 3000 minutes and above and they rarely ever use all of those minutes. These individuals have paid for that time. They paid for the opportunity to talk on their cell phone up to that amount of time. With some providers you can carry over your talking time; rolling over the minutes for the next month, and the next month, and the next month. But at some point the provider says that they’re no longer going to keep a balance of talking minutes for you and they’re going to truncate that time that you paid for. That YOU paid for.

What should the provider actually do?

Considering that the provider has already been paid for that time and you have not used that time, instead of truncating the remaining airtime, perhaps you should be credited for the airtime that you didn’t use; to be reapplied to your bill for next month?

I think it’s a good idea. Why should the provider be allowed to take your minutes [money]; minutes that you paid for and then be allowed to take them away without crediting you. I think this is another example of highway robbery.

Lastly, the early termination fees that the cell phone providers have instituted are highly criminal. For example if you have a cell phone that doesn’t work well or you have bad reception or keeps failing, or if you say we just have a bad track record of cell phone service, it should be well within your right to be able to cancel your contract with that cell phone provider to go with someone else who decides to cater to your needs.

How can it be fair for a cell phone provider to charge you for an early termination fee without providing adequate service in the first place?

The evolution of the cell phone business is going to migrate towards the traditional telco services from the 80s and 90s. When they competed for one-cost calling plans; local and long-distance calling under one umbrella- one charge.

Until then they’re going to keep piecemealing these plans to squeeze as much cash out of your pocket as they possibly can…What’s worse? The Internet service providers of the world are actually working in reverse to start charging you for tears and levels of service…

Greed is an uncontrollable animal and it cares not who it affects.

These people should be ashamed of how they do business.

Thanks for reading!

L. Henry Jr.

www.LEHSYS.com

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