Subject: [NEXTEL-1] Nextel charges customers to receive a paper bill with call details.

From: [email-masked]
Date: Mon, 24 May 2004 07:55:54 -0400

Posted on Mon, May. 24, 2004

Cells draw static

COMPLAINTS ABOUT WIRELESS
By JIM FINKLE

The Orange County Register

SANTA ANA, Calif. - Consumer advocates are looking to the courts to deal
with what they say is an increase in the number of complaints about
cell-phone carriers.

The Foundation for Taxpayer and Consumer Rights said it's collecting the
stories of upset wireless customers and organizing them in preparation
for filing a new round of class-action lawsuits focused on alleged
overcharges and poor service.
Complaints about wireless carriers have risen even though cell phones
are increasingly popular.

As cell phones have become nearly ubiquitous, the industry's total
revenue has more than doubled, from $40 billion in 1999 to $88 billion
last year.

Meanwhile, the government has imposed few regulations on wireless
providers. Consumer groups such as the Foundation for Taxpayer and
Consumer Rights say that leaves them no recourse except the courts,
since companies aren't responding to their concerns.

The Cellular Telecommunications & Internet Association, which represents
most wireless carriers, says the industry works hard to address
complaints, and that its overall track record isn't bad considering more
than half of all Americans use cell phones.
Harvey Rosenfield, founder of the Foundation for Consumer and Taxpayer
Rights, disagrees.

"People are just outraged," he said. "There's not another issue that's
got people so angry." In October, his group filed lawsuits in Los
Angeles against two carriers.

One against Cingular Wireless claims the company misled customers about
the quality of its coverage, while imposing heavy termination fees. A
suit against Nextel complains that a new policy of charging for itemized
phone bills makes it difficult for customers to identify billing
errors.  Both companies say those lawsuits are without merit.

In September, Public Utilities Commissioner Carl Wood recommended
Cingular be fined more than $12 million for failing to let customers try
out new phones before incurring those termination fees.  The commission
has not yet acted on the proposed fine.
It makes sense that complaints would be on the rise. The number of U.S.
cell-phone users has more than doubled over the past five years,
increasing opportunities for mistakes to be made.

Typical consumer beefs about cell-phone companies are:

Termination fees: These charges are incurred when a customer cancels
service before the end of a contract, often because the customer isn't
satisfied with reception or is moving out of a company's coverage area.
Termination fees generally run from about $150 to $300 per phone.

Extras: Providers have started charging fees above monthly calling-plan
costs. For example, carriers now tack on charges to cover what they say
are costs of complying with government regulations. Nextel charges
customers to receive a paper bill with call details.

Billing: A recent Consumer Reports poll found that one out of four
people had been overcharged by at least $10 on their most recent bill.

In response to such complaints, cell-phone carriers said they'd
voluntarily start following procedures to make themselves more consumer
friendly. They include giving all customers two weeks to return new
equipment before being locked into a contract.
Carriers unveiled the plan as an alternative to more stringent rules
proposed by PUC Commissioner Wood. Citing concerns about what he says
are unreasonable cell-phone termination fees, binding contracts that
customers don't understand, and inadequate company response to
consumers' complaints, Wood is trying to persuade the full commission to
assume broad regulatory powers over cell-phone service.

In contrast, local phone companies have long had to comply with
regulations covering everything from rates and billing to discounts for
low-income customers.

Wireless companies are working hard to block passage of Wood's proposal,
partly because California is the biggest cell-phone market in the United
States. It's also influential in policy-making circles. Other states
often look to California laws and regulations as a model, whether it be
in telecommunications, health care or other areas.

Bob Hirsch, a retiree from Dana Point, Calif., says he's watched the
quality of customer service deteriorate over the past two decades. He's
been using cell phones since 1985 and switched carriers several times.

He left Verizon this year because he was unhappy with the quality of the
reception here after moving from Las Vegas. As a result, the company
billed him $175, saying his contract required him to pay regardless of
the reason for canceling.
"They were totally intractable," he said. "You signed in good faith
expecting to be able to use your phone. They refused to acknowledge
that."

After an inquiry from the Orange County Register, Verizon dropped that
charge. Without intervention, it's unusual for providers to waive those
fees, regardless of the reason, Rosenfield said.

Rosenfield's foundation isn't the only entity filing lawsuits against
cell-phone companies.

A lawsuit filed in February in Los Angeles claims AT&T Wireless used
"false and deceptive advertising" to bait customers with one plan, then
convince them to buy more expensive ones.

Another suit filed against the company last month charges it's broken
the law by refusing to prorate bills on accounts canceled in the middle
of a billing cycle.

AT&T spokesman Art Navarro declined to comment on the suits, which are
making their way through the system.
"As a matter of policy, we don't comment on pending litigation," he
said.

"But as a matter of principle, we make every effort to be open and
above-board with our customers. ... That's how we keep their business."

Quoc Nguyen, 27, of Fullerton, Calif., says he thinks the company could
do a better job taking care of customers. He says he's had problems with
AT&T but is reluctant to switch because of friends who are unhappy with
Cingular, Sprint and T-Mobile.
"If you have bad service and try to get out of your contract, they still
charge you," Nguyen said.
"It's a rip-off."

On the Net

The Foundation for Taxpayer and Consumer Rights:
www.consumerwatchdog.org

KRT PHOTO

Although wireless companies wouldn't break down the number of customers
in southern California, most say it's the fastest-growing major market
in the United States.Copyright Times Leader
http://www.timesleader.com/mld/timesleader/8713425.htm