Tuesday, March 5, 2013

Verizon Tightens Its Hold on the Consumer


Whether you want to buy a used phone as an upgrade to your existing account or simply replace a broken one, it is getting more and more difficult if you are provided service by Verizon. It seems that Verizon has taken steps that are not in the best interest of their customers, almost forcing them to buy brand new phones rather than reactivating used ones.

It is no doubt that cell phones are BIG business and it seems that Verizon might be making some attempts to make it even larger and more profitable for them. Keep in mind that when you "sign up" for service from one of the major carriers you usually sign a 2 year contract. Not too long ago it was only one year. You are also charged an early termination fee if you should happen to break that agreement. The new trend that seems to be employed, most notably by Verizon, is to retire your cell phone once your agreement is up and you choose to move on or upgrade.

So what does "retire" mean? How do you retire an old phone and why should anyone care? First of all, "retire" means disabling the ESN (electronic serial number) that identifies that phone. This means that once the phone has been disabled, it can no longer be re-activated. So again, you might ask, "What's the big deal"? Well, the reasons are two fold.

1. First, and most importantly, that phone is your property. If you should decide to change carriers after your term is up or upgrade to a new phone, you should be able to do what you want with it. It is somewhat similar to your car. Once your payments are up, does the finance company deactivate the VIN thus rendering your automobile useless? Of course not. So how does a large carrier, like Verizon, get away with it? Technology changes so fast that the laws cannot keep up with it. Eventually, a young, new and energetic lawyer will initiate a class action lawsuit that will force the courts to examine the issue. That is similar to what is going on now regarding the early termination fees that the carriers charge for breaking contract. There is Governmental movement to ban the practice. But again, let's not gloss over the ownership rights of the phone. You bought it, that gives you ownership. Ownership grants you the right to do what you want with the phone (within legal boundaries). To have a carrier render the ESN useless could be construed to be nothing less than stealing the phone from you. You are probably thinking, "Why would they do this? How could they benefit from this?" The answer is simple. Revenue. If you cannot reactivate a used Verizon cell phone and you have more time on your contract, then you must buy a brand new one. So the next time you drop your phone one too many times or get it wet and it doesn't work anymore, the likelihood that you will be able to go online and buy a used Verizon cell phone will be slim to none. Get ready to shell out several hundred dollars for a "run-of-the-mill" cell phone. So now you own a useless phone which brings us to the second reason why you should care.

2. The second reason you should care centers around the environment. If you have 1 million Verizon cell phone users over the course of say five years have their cell phone ESN's retired, then what do you think might happen to them? I would venture to say they would not end up at a recycling plant! I doubt anyone will take time out of their day and spend a fortune in gas to drive to a recycling plant to dispose of one or two phones; it just isn't going to happen. They are more likely to find their way into your household garbage which will find its way into our landfills. The problem? Cell phones are highly toxic and enough of them could do serious and irreparable damage to the environment. It is irresponsible for a company of that magnitude to inadvertently encourage people to dump their useless cell phones into the environment, all in the name of the dollar!

That is the fundamental reason behind the creation of cell phone buyback companies, such as SellMyOldCellPhone.com, to help recycle used cell phones and keep them out of the landfills. So that when people broke their phones, they could purchase a lesser expensive alternative used cell phone. Some people simply want to upgrade, but before buying the new one, they want to try a used one first to see if they like it. When carriers render the ESN useless, they cannot do that. People are forced to buy brand new phones. Old useless cell phones end up in the garbage, polluting our environment.

What can you do about it? The best thing to do is just be aware of this. Knowledge is power and power enables people to make change.

1. First and foremost, when you call an agent on the phone or visit one at a local store, do not be surprised when the first thing they tell you is, "It can't be activated." Do not settle for that as an answer. Some agents simply do not know what they are doing. I have encountered that problem numerous times. Insist on another agent until you get one who can handle the problem or request to speak to a supervisor. The ones who may lack knowledge are followed by the ones who were trained to "sell, sell, sell." You can't make a commission if you don't sell service, accessories, or a phone and a store cannot make money if they don't sell service and phones.

2. Do not hesitate one minute to write a letter to the company threatening to cut off your service and go with another carrier. You might think, "Big deal, no one is going to listen to one letter," but you would be surprised what happens when they start getting a stream of letters all threatening to cancel service. Sprint had the worst customer service record of all the carriers for several years recently and eventually culminated into a huge financial loss, thus forcing them to change their practices. They had what appeared to be the highest exit rate in their history. Also, don't be afraid to follow through with your threat. They are a cell phone service provider, not a home or auto loan. There are no legal repercussions. Look for companies that do not engage in these practices. A lot of small, local cell phone carriers (like Pocket PC and Cricket) have these practices. They are month to month with no termination fees.

3. Finally, if you choose to sell your cell phone to a buyback company, such as SellMyOldCellPhone.com, let the carrier know that they must "release" the ESN for reactivation. All release means is that they remove your name from the phone and make it available for re-use. Do not settle for any excuses as to why that cannot be done. You are the customer and the phone is yours as long as you have met your obligations (which might be changing soon, regarding the termination fees).

We let these large companies dictate to us how the rules work, when in reality, without our money, they have no rules. We are all guilty of just accepting what we are told by these giants, but sometime we need to remind them who pays the bills!




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