Wireless price war to benefit cell-phone addicts

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ConsumerMan

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One in seven consumers surveyed by Consumer Reports last year said they were seriously considering switching cell phone carriers, but the termination fee discouraged them from doing so. Such mandatory service contracts are one of the top concerns for cell phone users, the survey reported. The contracts have been the center of several lawsuits against the cell phone industry by consumer activist groups.

In some circumstances, people can argue their way out of a contract, such as if they are moving to an area where there is no coverage by that company, said Neill. His group, UCAN, offers an online guide to canceling their phone contract.

Or, for $15 to $20, people can go to celltraderusa.com or cellswapper.com and sell their existing contract to other people who want short-term contracts with no activation fees. The new users take over the account with permission of the cell phone carrier.

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You’ll pay a $35 activation fee to sign up with your new service provider. If you have bad credit, you may pay a big deposit of $100 or more to sign onto a plan.

You will probably cover two bills during the month if charges overlap between the carrier you’re joining and the one you’re leaving. “It’s not easy to figure out when you can port from one company to the other and not double up your payments,” said Neill. You may want to call to verify your contract and billing dates, he said. Most companies will not prorate in the last billing cycle.

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Verizon, AT&T and T-Mobile in price war

You’ll also probably need to get a new phone. Even if you love your cell phone, chances are it won’t work with your new wireless provider. Sprint and Verizon use the same technology standards for their phones, as does AT&T and T-Mobile. But most often, wireless companies will “lock” the phones, so they do not work on other carrier’s networks regardless of the standards used.

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