[comp.dcom.telecom] Cellular Sleaze

Jack.Winslade@f2.n285.z1.fidonet.org (Jack Winslade) (11/11/90)

I'm writing this primarily to the rep's of the various cellular
operators I've seen in this conference lately, although I would like
to share the comments with all.

In article <14280@accuvax.nwu.edu>, (Douglas Scott Reuben) writes:

>Wouldn't they make more money in the long run by encouraging the cell
>phone to be used as often as possible, rather than tacking on charges
>that tend discourage use?

In article <2.273BB2E3@iugate.UUCP> (Jim Rees) writes:

> But the people who set cell phone rates don't have much incentive 
> to lower rates, especially when they enjoy a duopoly ... companies 
> are so sleazy that I would rather not have to deal with them.

Not are they only getting the same reputation (here) as AOS services
and COCOT owners, but in the consumer world, they are being put in the
same class (spelled sleezoid) as streetcorner 'credit' car lots and
late-night 'infomercials'.  (Cellular operators, are you still
listening ??)

Contrary to what industry people may think, consumers ARE noticing
such things as:

o Nonuniform rate structures.  Some people seem to get reasonable
  rates, others (more like the norm) pay through the nose.  Often
  times Mr. Joe Consumer pays more than businesses do, kind of the
  reverse of hard-wired telco pricing.  Rates vary considerably
  even for the same service from the same vendor.  It's often times
  'who you know' that will get you a good rate.

o Unbundling of charges and nickle-diming.  Contrary to the fact that
  yes, it may USE certain resources, since day one, it's been
  CUSTOMARY in the telephone industry NOT to charge for such things
  as busy signals, no-answers, call setup time, etc.  People do not
  mind paying a fair price for services rendered, but they do object
  to such drek as double airtime for 3-way calls, airtime for 
  forwarded calls, extortive (and double-billing of) roamer charges.

o Mass-marketing and kickback schemes using almost any dealer who
  has a pulse.  One Omaha tire dealership now throws in a <quote>
  free <end quote> cellular phone with the purchase of four new
  tires.  Of course they do not mention the service commitment and
  non-bargain airtime pricing until they have to.  This does not do
  any good for the image of the industry.

The bottom line is that if the cellular industry does not clean up its
act voluntarily, consumers will start demanding that the industry will
become regulated to one degree or another.  I don't think any of the
cellular operators want that.
 
Good Day!       JSW

[1:285/666@fidonet] DRBBS Technical BBS, Omaha (1:285/666)

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Jack.Winslade@f2.n285.z1.fidonet.org


[Moderator's Note: On the other hand, telcos have never had uniform
local rates; they have recently been unbundling their charges with the
'nickle and dime' approach; and they have been pushing their new
feature services heavily -- to the extent that in Chicago at least,
about half the time there is no installation fee for any of the Custom
Calling features, just to get people signed up as quickly as possible.
With telco also, what you know detirmines many times what you pay.
 
So why should the cellular companies be different?  And unlike the
telco, where they come one to a community with little or no choice in
the matter for John Consumer, at least the cell operators come in twos
and the consumer has 'twice as much' choice among them. I'd look for
the day to come when telco begins charging for incomplete call
attempts just like some of the cell guys do now, saying it uses up
resources to attempt to make the connection, etc.  PAT]