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October 2, 2017

T-Mobile Advertises: Ditch Verizon, Keep Your Phone ???

Filed under: Retail,Telephone — Edgar (aka MrConsumer) @ 5:43 am

Over the past few months, T-Mobile has been advertising that you can bring your Verizon cellphone to T-Mobile if you switch to them. Here’s one commercial with the offer:

If you know anything about how cellphones transmit your calls and data, their offer might sound impossible because the two companies use two different and incompatible technologies to accomplish those tasks. Verizon uses CDMA and T-Mobile relies on GSM radio waves to work.

So how can T-Mobile make this claim?

*MOUSE PRINT:

Ditch Verizon, Keep Your Phone

Certain phones are dual-network capable. They have both technologies built-in so they can work on either network. But the number of Verizon-branded phones that can be brought from that CDMA provider to a GSM provider is very limited — Google Pixel and iPhone 6S or newer only — as noted in the fine print of the T-Mobile ad.

Apple iPhones account for only about one-third of the market and newer models can be used on both Verizon and T-Mobile. But market-leading Android phones generally cannot. AT&T phones, incidentally, are generally interchangeable with T-Mobile phones because they are both on the GSM system.

So, if you think you can take your old Verizon phone to T-Mobile, chances are you cannot.




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January 9, 2017

T-Mobile Intros Honest Pricing

Filed under: Electronics,Humor,Telephone — Edgar (aka MrConsumer) @ 6:15 am

Last week, T-Mobile announced something novel in the postpaid cellphone industry — the price you see advertised is the price you will actually pay on your bill — all taxes and fees included! And they did this by absorbing those charges not raising their prices.

For years, it has been an obnoxious game played by cell providers, cable companies, and rental car companies to grab your attention with a seeming low price, but then jack up the bill with all sorts of junk fees and taxes. And the real costs were never fully disclosed even in the mouse print of the advertising.

To dramatize the deceptive nature of these pricing ploys, T-Mobile released this short video:



To demonstrate how fees and taxes inflate customers’ bills, TMO offers a comparison.

TMO comparison


But lest you think that T-Mobile has completely found consumer religion, plans other than T-Mobile One still play the old game.

*MOUSE PRINT:

taxes and fees extra

Nonetheless, hats off to T-Mobile for taking the first step to bringing transparent pricing to cell service.




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August 8, 2016

Comcast’s Inside Wiring Plan Excludes Most Inside Wiring!

Filed under: Electronics,Telephone,Thanks for Nothing — Edgar (aka MrConsumer) @ 5:55 am

One of the ways that telephone and cable companies try to make extra money is to pitch inside wiring plans to their customers. For about $5 a month, these plans typically promise to fix the cable or telephone wire in your home or apartment should it cause a problem with your service. Normally this would be the owner’s responsibility. Most consumer advocates say not to fall for the scare tactics and save your money because inside wiring rarely goes bad on its own.

Last week, the Washington state attorney general went one step further. He sued Comcast, a large purveyor of these inside wiring plans because of alleged deceptive tactics they used to sell these policies. The lawsuit accuses Comcast of misleading 500,000 Washington consumers and deceiving them into paying at least $73 million in subscription fees over the last five years for a near-worthless “protection plan” without clearly disclosing its significant limitations.

*MOUSE PRINT:

Here is how Comcast promoted its plan before the Washington AG began investigating. (Here is how the plan it is currently presented.)

It says in part:

“Comcast offers a comprehensive Service Protection Plan (SPP), eliminating any concerns about being charged additional fees for service calls related to inside wiring. … Hassle-free replacement and repair of defective customer inside wiring.”

When one checked the fine print terms and conditions of the Service Protection Plan as originally promoted, the introductory paragraph even reiterates the promise:

“Inside wiring covered under this plan is owned by the customer or a third party and is defined as wiring that begins at the “Demarcation Point,” which begins 12 inches outside the customer’s residence and extends to the individual phone jacks, cable and Internet outlets and extensions in the home.”

Digging deeper into the terms however, reveals the truth (emphasis added below).

*MOUSE PRINT:

Comcast fine print

Maybe 90% of the wiring inside a home is behind walls, and it is excluded! Thanks for nothing, Comcast.

Things get worse, according to the WA-AG’s complaint.

[While] Comcast claimed the SPP covers all service calls related to customer-owned equipment, it does not cover any actual repairs relating to customer equipment. It simply covers the technician visiting the customer’s house and declaring that the customer’s equipment is broken.

Comcast also marketed the SPP as covering service calls relating to Comcast equipment and wiring outside a customer’s house. However, these issues are already covered for free by Comcast’s Customer Guarantee promises.

The Washington AG is seeking $100+ million in his lawsuit.

For its part, Comcast issued the following statement:

“The Service Protection Plan has given those Washington consumers who chose to purchase it great value by completely covering over 99 percent of their repair calls. We worked with the Attorney General’s office to address every issue they raised, and we made several improvements based on their input.”

Incidentally, it is believed that Comcast marketed its service protection plan the very same way nationally… so you probably have not heard the end of this yet.




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September 21, 2015

Upgrade iPhone Yearly Forever for $15 a Month?

Filed under: Electronics,Retail,Telephone — Edgar (aka MrConsumer) @ 6:07 am

  To promote the launch of its “iPhone Forever” plan, Sprint is only charging $15 a month for the just introduced iPhone 6S along with the privilege that lets customers get a new iPhone every year. That is less than half the monthly cost for Apple’s own upgrade plan.

Sprint Forever

This means you are basically paying $180 a year to have the latest iPhone. For people who always must have the latest phone, this could be quite the deal … except for the fine print.

*MOUSE PRINT:

iPhone Forever terms

Besides learning that this is a 22-month lease and that you are responsible for [edited] insurance, what may have looked like a given to some — that you would only pay $15 a month and get annual upgrades forever — that monthly charge is only guaranteed for the first phone. What is not stated here in the headline, but also required, is that you trade in a smartphone when you first sign up for the plan.

According to a Sprint telephone representative, one year from now if you want to trade up to the iPhone 7, you must trade in the iPhone 6S, sign a new 22 month lease, and make monthly payments of the then current rate. She said you will owe nothing on the remaining 10 months of the original lease.

Like “unlimited,” “forever” means whatever the cell companies choose to define it as.




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August 17, 2015

Say Bye-Bye to $199 iPhones at Verizon

Filed under: Electronics,Telephone — Edgar (aka MrConsumer) @ 6:14 am

  As of August 13, Verizon Wireless is no longer going to subsidize the purchase of new cellphones. That means you can kiss that $199 price for iPhone 6 or Samsung Galaxy S6 goodbye. When you get a new phone, you’ll be asked to pay around $650 for those high-end phones, but you can do so in monthly installments of about $27 to soften the blow. Other phones will be available at other prices. Current customers can apparently continue to renew their two year contracts and get subsidized phones, according to the AP.

On the bright side, elimination of subsidies also means the elimination of two-year contracts. So you are no longer bound to remain a customer for 24 months. You will, however, need to fully pay off the remaining monthly payments on your phone if you choose to leave Verizon.

Now the big question: Since you are now paying full price for the phone, are Verizon’s monthly rates for service lower than they were? Remember, depending on the plan, they did have embedded in them a roughly $20 charge to cover the cost of that $650 phone that you got for only $199.

Old plan pricing choices:

Verizon old plan phone costs

In the old system, you had three choices: pay for the phone in full ($650), pay in 24 equal installments ($27.08), or pay $199 (with a two-year contract.)

In the new system, you only have two choices: pay $650 in full or pay it off in 24 installments of $27.08:

new payment options

Besides the cost of the phone, there has always been a line charge, or a charge for the cost of the service per smartphone. The old charge was $40 per line, but if you were on “Edge,” you got a $15 monthly discount making it $25.

Data charges were separate charges also. In the old system, there were many choices with varying prices. Some examples, old/new: 3 gigs – $50/$45; 6 gigs – $70/$60.

Putting it all together, here is the old pricing for an iPhone 6 with monthly installments, on Edge, and with 3 gigs of data:

old total

Here under the new system is pricing for an iPhone 6 with monthly installments and 3 gigs of data:

new system pricing

In this scenario, you are paying $10 a month less than in the former system.

So how does this compare to the old system if you had gotten an iPhone 6 for $199 upfront with 3 gigs of data? You would have been paying $90 a month ($40 for line, $50 for data) plus the equivalent of $8.33 for the phone itself, or $98.33 per month. It is now $6.25 a month cheaper.

At least in these scenarios, the new plan is a little less money, but the rate shock of paying $650 for a phone may still be too bitter a pill to swallow for some. The problem is that you don’t have a ton of alternatives since increasingly the other carriers are also moving away with subsidized telephones.




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