I’ve been thinking about the lack of consumer rights in regards to cell phones. As it is right now, the communications companies have an unfair advantage over consumers. They all basically play by the same rules, so it doesn’t matter which carrier you use. When an industry fails to correct itself, then the government should step in. I do believe in minimal government interference, but consumers must be protected against cartels and unfair practices.
Most cell phones are so much more than simply a wireless phone. They’re small computers with a wide array of functions. At least, they would have a lot of functions if cellular providers didn’t cripple them with proprietary software. You should be able to freely interface your phone with a computer. This would be useful to backup your contacts, transfer your contacts to a new device and upload or download pictures and videos. You could also upload custom ringtones to your phone. Cell providers don’t want that because they charge you for those services. Verizon charges $1.99 a month for “Backup Assistant”, which saves your contacts on their server and allows you to transfer them back to your phone I’m not sure how much it costs for ringtones because you can only view the cost through the Verizon’s “Get It Now” service, which I refuse to use. The last time I bought a ringtone I believe it cost $4.95. Those two functions, contact backup and custom ringtones, can be done at home with a computer very easily. Why should you pay the provider to use a function built into your phone?
I think cell phones should not be allowed to be sold with the firmware and network locked. If you don’t like your provider, you should be able to take your phone to another company and get access to their network by installing a different SIM card. The government did some good in 2004 when it required cell phone companies to allow consumers to take their phone numbers with them when they switch providers, but that isn’t enough. I had high hopes for the iPhone, but it were undeserved. I thought Apple would’ve been the company to break the trend where phones are tied to specific networks. That of course didn’t happen and if you want to use an iPhone you will be an AT&T customer. You have no choice. According to the contract between Apple and AT&T, only AT&T is allowed to support the iPhone for 5 years. Your cell phone and which provider you use should be completely separate and independent purchases. You should be able to walk into a Verizon Wireless store, buy a phone and then walk down the street US Cellular and have that phone connected to their network without any hassles. Imagine if you bought a brand new laptop, but that laptop could only connect to the internet through AOL. That is basically what cell phone providers have been getting away with.
Cell phone providers do not need these limits on devices to stay in business. In the first quarter of 2005 Verizon Wireless produced $7.4 billion in revenue. Providers are living high on the hog by charging customers for functions that these phones were built to do. You don’t have to pay Microsoft to get a new desktop image or backup your files. You don’t even have to keep Windows on the computer. You can’t switch your software on your phone however. Forcing consumers to pay to access functions the phone is capable of is a marketing model called “value-added content provider”. Of course the consumers don’t see the value.
I think the only reason these practices are allowed to continue is because it is costly to force the providers to change. You have two options. You can try to get the government to pass laws forcing them to change. That would be virtually impossible because providers would spend millions of dollars on lobbyists to fight the bills and would bride lawmakers with legal and illegal campaign contributions. The other option would be to bring a class action lawsuit against the providers. They would spend millions on lawyers to first keep it out of court and if it ever makes it to court, they’ll spend millions more ensuring the process is costly and slow in the hopes that the case is withdrawn or dismissed. It would most likely be withdrawn because it is doubtful anyone would be able to support the costs necessary to win the case. The only hope consumers have is the extremely outside chance that FCC takes action and requires changes. Of course, that change could be short lived because the industry would immediately lobby and bribe Congress to pass a bill protecting their current marketing model.
Basically cell phone consumers are screwed. All legal methods are futile. The only option left is to violate the phone warranties and wireless contracts by using hacking software to unlock our phones.