[comp.dcom.telecom] Those Cellular Phone Deals

John Higdon <john@zygot.ati.com> (08/21/90)

Somewhere the question was raised about those "deals" on cellular
phones that are tied in to activation with a carrier who provides
kickbacks to the dealers. In California, it is no longer legal to
market cellular phones and require activation as a condition of sale.

But those "great" deals still abound. How do they do it? Your
investigative reporter has just finished some undercover work and
here's the scoop:

You walk into Jack's Souper Sellular, where he is offering the
Gouchygama handheld phone for $499 (ad quote, "Cellular activation not
required..."). You ask to look at the Gouchygama and he produces the
dummy demo model. At the same time, he produces a Cellular One (or GTE
Mobilnet) service and credit application form. From that point, one of
two things happens if you decide to buy.

CASE 1: You start filling out the application. At that point, he goes
to the back room to get your phone. He appears periodically to see how
you are coming on the application. "Oh, that's right. I need to get
your Gouchygama. I'll be right back." Magically, when you have
finished with the application, he produces the phone, programmed with
your new number. You pay and leave.

CASE 2: You say, "Actually, I just want the phone with no activation."
He says, "Let me go in back and check stock." Moments later, he
appears with the sad news that he is out of stock. Yes, he'll take
your order, but it could be some time before he gets any more. Don't
call him, he'll call you. You ask to see something else. Isn't it the
damnedest thing? He is out of stock on almost every model!

And that (with variations), friends, is how cellular phones are sold
in California.


        John Higdon         |   P. O. Box 7648   |   +1 408 723 1395
    john@zygot.ati.com      | San Jose, CA 95150 |       M o o !