Cell phone deals; a lesson in frustration.

Negotiating with and canceling contracts with cell phone companies is a frustrating and challenging task. The phone companies make things worse with early termination fees (ETF) used by companies to stifle fair competition. Wireless providers justify their extortion through ETF’s by claiming to subsidize the purchase of cell phones by providing “steep” discounts at the time of purchase. The phone companies argue that the cost of the handset is  spread over the length of the contract.  The contracts ensure the return on those discounts. In reality, the ETFs are a legalized means of trapping customers into unfair contracts with excessive monthly charges. No other industry is permitted to create such anticompetitive conditions in the marketplace.

I used to be a loyal customer of AT&T since the first generation of Iphone.   It is no secret that AT&T engaged customers with amazing discounts on the condition of signing a two-year contract with luxury price plans with exorbitant monthly fees while pushing unnecessary insurance premiums to cover the “subsidized” equipment. When I lost my cell phone eight months ago, I was about one month from being eligible for an upgrade for the new Iphone that was set to be released a month later.  I considered waiting for one month to upgrade my cell phone to get the new Iphone. In the meantime, I planed to use my unlocked blackberry, which I use when I travel to my native country of Venezuela. My frustration began when I asked customer service representative to activate the blackberry under my plan and my phone number. AT&T would not allow me because I was obligated to purchase a new phone from the company. Of course this action would automatically extend the contract for another two years.  I was not agreeable and decided to finish my contract and move to another company just after my contract ended. Then I was bombarded with telephone calls and letters by collection companies trying to charge me an unjustified ETF.  This is very frustrating due to the fact that I have been a customer for more than four years and when I needed to use an unlocked cell phone for just a month the company would not allow it. This is not freedom.  This is a form of monopoly!