telecom@eecs.nwu.edu (TELECOM Moderator) (11/20/89)
I've never been in a rush to own a cellular phone. I've never had a real need for one. I have a phone glued to my ear all day, I walk three blocks to/from my apartment to my place of employment, and I don't own a car. In fact, I don't even know how to drive a car. Most of my transportation around Chicago is by taxi, and about half the cabs in Chicago have cellular phones for rent to passengers at the rate of $1 per minute. If I need to make a call enroute somewhere, I use the one in the cab. Still, the ads are tempting -- very tempting, and the prices are getting lower by the month, it seems. So when the ad for Fretters last week offered Novatel transportables for $137, and very handsome looking handheld units for about $300, I figured 'now is the time' and went to the local Fretters in Evanston to decide what to do once and for all. Like Mr. Voket (in previous message), I really wasn't certain what phone and service package would be best for me. The whole visit turned out to be a nightmare. First, the salesman tried to tell me the sale started on Friday (I was there Thursday evening.) I had to go get a copy of the [Sun Times] from the garbage bin next to the store and rip out the ad and bring it back in with me to show them plainly it said 'Thursday/Friday/Saturday'. That done, they led me to a cabinet and said there they are, look at them. I asked them to take one out of the cabinet to show me.... "Oh, we can't do that, people steal them." "How am I to decide what I want? How do I find out simple things like the weight, the type of handset, the way it feels, etc?" "Well, I will answer any questions." "You mean I have to simply take your word for all this, I am not allowed to actually touch or feel or use the instrument without putting down the money first?" "Its against our policy to allow customers to make test calls." (Me, in a somewhat louder voice) "Get the manager out here, or someone who has been trained to wait on customers." The manager appeared, we discussed it; and he apologized and got a couple different units which were on sale for me to examine. I finally decided on the Novatel unit for $177, plus a battery pack for $99. He shoved a contract under my nose, and started rattling off the various service options. The one I selected was $10 per month plus 10 cents per minute of calls in off-peak times and 65 cents per minute in other times. *Then comes the clincher, the real scam*, when he said, "Ameritech requires a $1000 <one thousand!> dollar advance payment on service. Before we go further, I have to get $1000 from you for the Ameritech part of the transaction." (me) "But the minimum service requirement is for three months. How much service do you think I could use in three months?" "Well, that is the way Ameritech has it set up on this offer." "Why no mention of it in your advertisements?" "There is not enough room to mention everything in our ads." "You would think a demand for $1000 'advance payment' would be an important thing to mention in the ads." "Well, they prefer we only discuss it with customers once they have made their selection." "So you are telling me Ameritech wants an advance payment five times greater than the phone itself is worth? And at ten dollars a month and ten cents per minute of calling, how long would it take me to use up that advance payment?" "Well, if you'll give me your credit card number, I'll see if Ameritech would be willing to accept that instead." "My credit card number, you say? What kind of a fool do you think I am, that I am going to provide you or Ameritech with a credit card number when you have just made such preposterous demands and already have me signed up on your contract, which you had me sign *before* you explained this little formality?" I tore up the contract in about twelve pieces and handed it back to him and left. The next day I called Ameritech and asked for an explanation of this. After quite a bit of mumbo-jumbo, the answer I finally got was that Ameritech was discounting those units so heavily that they were detirmined to lock in customers as long as possible. Heck, at the rate I would use the unit, they'd have me 'locked in' (or should I say suckered in) for a couple years! Not true, said the Ameritech rep: they assume the customer will use that much in 3-4 months. All I can say is if they expect someone to use that much in such a short time, then what they are essentially doing is giving away cell phones 'almost free' to people they perceive are their better customers. So if you see ads saying 'minimum service commitment to Ameritech' when you purchase at Fretters, remember that Ameritech and Fretters have some sort of very cozy deal where the telco heavily discounts the units in return for a captive (very captive!) customer. I think their ads are misleading at best. I might add the salesman and his manager at Fretters could give me NO names of anyone at Ameritech. "They don't give us their names when we call...." Patrick Townson
john@zygot.ati.com (John Higdon) (11/21/89)
In article <telecom-v09i0522m07@vector.dallas.tx.us>, telecom@eecs.nwu.edu (TELECOM Moderator) writes: > So if you see ads saying 'minimum service commitment to Ameritech' > when you purchase at Fretters, remember that Ameritech and Fretters > have some sort of very cozy deal where the telco heavily discounts the > units in return for a captive (very captive!) customer. GTE Mobilnet in San Francisco has a deal that requires a minimum commitment of one year, but it works somewhat differently. Normal service is $45/month and .45/.20/min. (peak/offpeak). If you commit to a one year (no advance payment required) contract, you get service for $39/month, same per minute charges, and all custom calling features including voice mail thrown in for free. After you sign up, you get a one-time credit of 33 minutes of on-peak airtime. There is no equipment involved with this deal. I have noticed that ads on the radio for cellular phones now have the following disclaimer: "Service activation not required, but service is available on...". I think the PUC cracked down on these deals that were tied in to service kickbacks. BTW, service on GTE Mobilnet is outstanding. They would be well advised to drop the "GTE" from their name. It would help business. I believe Cellular One (PacTel) has some similar plan, but they don't discount the monthly rate, offer the free air time or have as many custom calling features, nor is the system as large. John Higdon | P. O. Box 7648 | +1 408 723 1395 john@zygot.ati.com | San Jose, CA 95150 | M o o !
edw@dsinc.dsi.com (Edward E. Wells Jr.) (11/22/89)
I'd be damned if I'd put up with your situation. If you were hooked
into that ad and the ad mentioned nothing about that $1000 deposit,
I'd take it to court with a good lawyer. I've heard of a salesman
"puffing", but this is rediculous and you may find that you could have
a judge force them to sell you a $177 phone with no strings attached.
I'd also file with Better Business and Consumer Protection. This
may also fuel your lawsuit if you choose this path.
I'd like to hear that you got yourself a $177 phone (with no service
commitments). Crap like this angers me also.
=========================================================================
Edward E. Wells Jr., President Voice: (215)-943-6061
Wells Computer Systems Corp., Box 343, Levittown, Pa. 19058
{alba2l,dsinc,francis,hotps,mdi386,pebco}!wells!edw
Specializing in Unix/Xenix development, prototype systems development,
firmware/hardware programming, operating systems, software drivers,
communication systems, and specialized database designs since 1979.
[Moderator's Note: Well, the ad *did* mention 'activation through
Ameritech is required'. It just did not say to what extent the
activation would go. Legally, they are probably off the hook.
Ameritech has smart mouthpieces working for them, you know, as does
Fretters, I'm sure. PT]