Clark Howard's Tips

March 28, 2008

People love their cell phones, but hate their cell phone providers. The Better Business Bureau now reports that the cell phone business has received more complaints than any other industry for 3 consecutive years.

There are now 22 states with bills in various stages of consideration or adoption all seeking to establish a cell phone users' bill of rights. The response of the cell carriers has been to spend millions to fund lobbyists who are trying to get rules bent in the industry's favor. Why not just fix the bad business model instead?

We're not talking about dropped calls here; we're talking about those rotten 2-year contracts. Clark is hard-pressed to find another country in the world that does these contracts.

For the longest time, the cell carriers argued that contracts were necessary because they helped subsidize the cost of cell phones. But this explanation turned out to be bogus; iPhone customers had to pay full market price for their phones, and then they were still forced into a contract! Clark has long thought consumers should be offered the choice to either buy a phone at market value with no carrier strings attached, or sign the 2-year contract with one carrier and get a free phone.

Meanwhile, all of the carriers are in cahoots with crooks. If you're not on an unlimited text messaging plan, they get paid every time you receive an unwanted spam text message. They're also ripping off teens (and their parents) by billing on behalf of third party carriers that offer ring tones and other premium services.

Why is there no movement in Washington, D.C., on the issue of a cell phone users' bill of rights? Simply put, the members of the U.S. House and Senate are in their Capitol Hill bubble. The cell industry is trying to get a preemption law that will make it illegal for any state to pass a rule governing the industry. Sounds like they're taking a cue from the airlines who managed to get New York's air passenger bill of rights overturned!

Consumer advice courtesy of