New Bill May End Two-Year Contract Policy

mobile technology

Talking about open access network, the us house of representatives will hold a hearing today for Wireless Consumer Protection bill (warning: pdf file), a proposed legislation which would force wireless carriers to offer their services even without entering into long-term contract.

As long as consumers buy mobile devices from wireless carriers which are not subsidized, they need not worry about long-term service plans. Moreover, this law mandates wireless operators to prorate early termination fees.

This is somewhat similar to the Cell Phone Consumer Empowerment Act of 2007 which also highlights prorated termination fees and flexibility to exit long-term service contracts within 30 days if the service is deemed unsatisfactory.

Let's just hope the big boys will not call its army of politicians to block this bill and prolong the outrageous rules in the industry today.

Via MoCoNews


| February 27th, 2008 | Posted in Mobile Technologies |

4 Responses to “New Bill May End Two-Year Contract Policy”

  1. PhoneBoy Says:

    I read through the proposed legislation. It said nothing about dropping 2 year contracts.

    What it DID say was that early termination fees on these contracts must be prorated. It also said you must be able to purchase equivalent service on a non-contract basis.

  2. Leo Blanco Says:

    If you read page 8/27 of the proposed bill you will see the following statement:

    that if a commercial mobile service provider offers such plans with subsidized wireless customer equipment, such provider shall offer to consumers the opportunity to purchase subsidy-free wireless customer equipment in return for the ability to secure service, without a long-term wireless service plan, at a price no higher than a comparable wireless service plan offered with subsidized wireless customer equipment;

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