How Cell Phone companies are fleecing us?

Many of you are aware that come November 24, 2003 and we will be free from the shackles of phone companies, who in my opinion have run rough shod over consumers for the longest time. Given that most of these guys are on very thin ice, and are over-leveraged, they are trying to get consumers pay for the number portability. A recent study by Center for Public Integrity shows that the 10 largest wireless carriers have taken in $629 million from the consumers.

bq. The study surveyed the 10 largest wireless carriers and found that nine of them have been charging their customers recovery fees ranging from 5 cents to $1.75 per month. AT&T was charging the highest amount, though only to about one-third of its customers, while T-Mobile charged no recovery fee. In all, CPI estimates the cost to wireless customers for number portability as $629 million thus far. CPI found a wide variance in carriers’ estimated costs to implement number portability, ranging from $100 million for Nextel to $60 million for Verizon. The study found that several carriers are including customer retention and acquisition costs and other marketing costs in those amounts, including Cingular.

Well this is truly shocking and once again proof of the phone companies’ greed. I think we are all justified our wireless infidelity. What really is disgusting is that the Federal Communications Commission is well aware of this little scam.

bq. “In other words, Cingular and some other wireless companies have folded some of their marketing costs into their budget for implementing number portability, and are then passing those costs on to their customers,” the study said.