Wednesday, October 31, 2007

Congress Weighs Wireless Contract Changes

Via Yahoo! News -

Aha. There's a reason both Verizon and AT&T loosened restrictions on wireless contract changes recently. The moves appear timed to precede U.S. Congressional hearings on whether to legislate more consumer-friendly practices among cell phone carriers.

The Washington Post reports that a bill introduced by Sen. Amy Klobluchar (D.-Minn.) would require wireless providers to prorate fees charged to customers who cancel cell phone contracts. Some carriers charge up to $200 to cancel wireless service before the end of a typically two-year contract. The bill also would demand that companies allow customers to make changes to their calling plans without having to sign up for a contract extension.

That last requirement is what Verizon and AT&T both addressed when they voluntarily removed the contract-extension stipulation, allowing customers to change their plans without signing a new contract. Verizon has been prorating cancellation fees for about a year, and AT&T announced it will do the same.

Could it be the carriers are making peace offerings so Congress will not see a need for regulating their business further? Yep.

We'll see if lawmakers are convinced. The recent changes are a move in the right direction, especially when you consider that consumers filed more complaints with Better Business Bureaus about the wireless industry than any other. And, the Post notes, contract-related problems were at the top of the list.

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