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Home > Plugged In > Archives > 2008 > February > 28 > Entry
Congress looks at subsidized mobile-phone deals
Congressman Ed Markey, the Democratic chairman of the committee that deals with the Internet and telecommunications, has the right idea.
He’s floating a bill that would require wireless carriers to offer an option to customers to buy an unsubsidized handset without a service contract, CNET says.
The proposal also would make carriers disclose more detailed information about their coverage area and simpler explanations of their rate plans.
Good luck, Ed. I’m pulling for you.
If he’s successful, the company that stands to lose the most is AT&T. It requires a 2-year service agreement with the purchase of a new Apple iPhone. Some say the subsidy on the price of the phone is $400.
That might be worth it for some people. But I’ll bet there are others who hate signing a service agreement. I think it’s time to dump them. The consumer loses out because it delays competition until the contract runs out. These carriers are established now. They don’t need these locked-in deals anymore.
Comments
Commenting is now closed for this entry.
By Winston Crosbie
March 4, 2008 3:04 PM | Link to this
I agree and support Congressman Ed Markey idea, this should have happened a long time ago. The service providers of cell phones should be treated the same as any regular land line company. With no contracts and no strings attached, we might even see more competition among the service providers. I say Amen! To the congressman, I say good luck getting it passed.