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[IP] more on Locked In a Cell: How Cell Phone Early Terminati on Fees Hurt Consumers





Begin forwarded message:

From: "Aleecia M. McDonald" <aleecia@xxxxxxxxxxx>
Date: October 14, 2005 12:45:45 PM EDT
To: dave@xxxxxxxxxx
Subject: Re: [IP] more on Locked In a Cell: How Cell Phone Early Terminati on Fees Hurt Consumers


Hi Professor Farber,

This may be of general interest for IP.
Transcribed from the October 17th issue of Newsweek, p 74, by Linda Stern:

"All those new cell-phone deal look great, but ... too bad you're saddled with your old plan for another 23 months. If it weren't for those ridiculously high early-termination fees---they average $170--- almost half of all cell-phone users would switch, a consumer group said recently. But the big cell-phone companies forgot to close one loophole. They'll let you transfer your plan to someone else without penalty or cost. A new Web-based company, celltradeusa.com, presents a forum for those trades. You can list your plan free, to gauge interest, but you'll have to pay $20 to connect with potential buyers. Then it's up to you to cut the best deal, contact your carrier and sign over the plan. With some 2,000 users logging on to Celltrade, somebody's gotta want what you have."

    Aleecia


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