Verizon Wireless and at&t say they are changing their contract policies, and will allow customers to make changes to their calling plans without automatically extending their contracts. at&t also announced it would reduce the fees consumers pay for breaking their long-term contracts. The moves come as Congress is debating legislation that require wireless companies to prorate the fees they charge customers to cancel their cellphone contracts.
The bill would also force companies to allow customers to make changes to their calling plans without automatically extending their contracts. at&t says it will replace its $175 cancellation fee with a prorated system allowing customers to pay less if they are near the end of their contract. at&t also says that it will allow customers to make changes to their calling plans without having to extend their two-year contracts with the company.
Verizon Wireless has prorated cancellation fees for nearly a year, but last week it also began to let customers change their calling plans without extending their contracts by a year or two.
Contracts obviously makes sense for carriers as they smooth out revenue, lock in customers and allow discounts on phones. But a move away from that model seems to be likely, at least in part. The iPhone pioneered a new model where consumers pay for their phones without subsidy. In Europe consumers already can buy phones without being locked into service with any particular carrier at all. So it seems likely that consumer pressure will create demand for no-contract service, if not for bigger changes such as unlocked phones.
No comments:
Post a Comment