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Edition: U.S. Article Comments (5) Save Email Print Reprints Most Popular Most Shared "Avatar" wows early movie reviewers 10 Dec 2009 Russian nuclear missile test fails, visible in Norway | Video 10 Dec 2009 "Avatar" sets audiences on epic, visual ride 10 Dec 2009 UPDATE 1-ABC to tap Stephanopoulos as co-anchor of 'GMA' 09 Dec 2009 UPDATE 1-Boeing says Dreamliner could fly on Dec 15 10 Dec 2009 "Avatar" wows early movie reviewers 10 Dec 2009 Now or never for Big Oil in Iraq 10 Dec 2009 Scientists find way to block fearful memories 09 Dec 2009 Firms including Google to build Asia undersea cable 10 Dec 2009 Big brands recruiting "Consumer Kids" to sell wares 28 Jan 2009 U.S. wireless users satisfied, FCC should help more: GAO WASHINGTON Thu Dec 10, 2009 4:21pm EST Related News UPDATE 2-U.S. FCC asks Verizon Wireless to explain fees Fri, Dec 4 2009 Fed bars ATM card overdraft fees absent opt-in Thu, Nov 12 2009 UPDATE 4-Key U.S. lawmaker backs FCC on eve of Web rule Wed, Oct 21 2009 WASHINGTON (Reuters) - Most customers are generally satisfied with their wireless telephone service, but many are frustrated with fees associated with ending their contract to switch carriers, according to a congressional study released on Thursday. The study by the Government Accountability Office also found that the Federal Communications Commission needs to improve how it processes customers' complaints. The GAO report, which was requested by U.S. Representative Ed Markey, found that 42 percent of wireless customers who wanted to switch their service during their contract did not because of an early-termination fee. The GAO said the number of U.S. subscribers has increased to about 270 million in 2008 from about 3.5 million in 1989. Verizon Wireless, AT&T Inc, Sprint-Nextel Inc and Deutsche Telekom AG's T-Mobile serve more than 85 percent of the U.S. wireless subscribers. Verizon Wireless is a joint venture of Verizon Communications Inc and Vodafone Group Plc. Markey, a Democrat who chairs the House Energy and Commerce subcommittee on telecommunications and the Internet, said early termination fees charged by the carriers raise consumer protection and competition concerns. "In the digital age, where technology can change overnight, consumers should not be chained to their wireless provider for years through exorbitant early termination fees," Markey said. Last week the FCC launched an inquiry into why Verizon Wireless doubled fees to $350 for terminating contracts linked to some smartphones, which are often offered to customers at a reduced cost if a contract is signed. A company spokesman has said that customers can choose to avoid paying an early termination fee by buying a mobile phone at full price. The inquiry into Verizon's fees is part of a broader consumer protection inquiry the FCC launched in August into the disclosure of fees and charges associated with advertisements, point-of-sale and bundling. In its report the GAO said it found about 84 percent of users are very or somewhat satisfied with their wireless phone service. However, concerns have increased about billing, customer service and contract terms while most were satisfied with the quality of the call. It also raised questions about the FCC's ability to effectively process tens of thousands of public complaints each year. The FCC has largely refrained from regulating wireless phone service in order to promote competition, it said. "FCC monitors wireless consumer complaints, but such efforts are limited," the GAO report stated, adding that the agency may not be aware of trends or emerging issues and whether new rules are needed. The GAO recommended that the FCC improve its complaint processing system and also work more closely with state utility regulators. The GAO said the FCC has the authority to regulate wireless phone rates and new entrees, while states are preempted from doing so. However, states may regulate the other terms and conditions of wireless phone service, the GAO said. "Consumers are being forced to pay huge fees that the phone companies just can't justify," said Chris Riley, policy counsel at Free Press, a public interest group. "The FCC must act and put a stop to this anti-consumer practice that threatens innovation and competition in the mobile marketplace." (Reporting by John Poirier; Editing by Steve Orlofsky) Comments See All Comments (5) | Post Comment Dec 10, 2009 Like Don Henley says in one of his songs “i can get you any kind of results you want, what is it worth to you.” Companys can pick and choose from data and present it to the public or whoever they like and make the information work in there favor. acman2k5 Report As Abusive Dec 10, 2009 What??? “Consumers are being forced to pay huge fees that the phone companies just can’t justify”. AT&T pays Apple ~$600 per phone but sells it for $200. The $400 subsidy cost is built into the (2-year) service fee. If the consumer would RATHER pay $600 for the phone up-front, they wouldn’t have to pay the termination fee. But consumers don’t like that option — they want the subsidy. jcvoda Report As Abusive Dec 11, 2009 We have been Verizon customers, before Verizon was Verizon. They have great customer service people, you can easily contact tech support if you need them. I would highly recommend them. After having AT&T for home service; there would not be enough money in the world to even consider them. Report As Abusive Dec 11, 2009 My concern is for both the exorbitant termination fees AND for what happens when you use their services for your laptop (mobile broadband). There should not be a cap of 5g as that will only last the normal pc online user about 2/3rd of a month if that. I don’t like being limited to just checking a few items online and email in order to stay within the 5g limitation! Can you do something to make them remove or at least increase the cap to say 10 or 15g? Then at least we’d be getting our money’s worth. Report As Abusive Dec 11, 2009 One more thing … these phone giants who have mobile broadband are telling people and selling them on the concept of unlimited broadband when in fact it’s very limited. The salesman said, “Oh 5g will be more than enough.” I took him at his word but found out later that it’s not NEARLY ENOUGH! While I love high speed internet (and apparently that’s the ONLY way I can get it out where I live (for now), I think I’m terminating service before my 30 days are up. Verizon agreement says there is no penalty if you bring back the usb modem and all software/hardware that came with it. Report As Abusive See All Comments (5) Add a Comment More from Reuters Obama will not rush Afghan troop drawdown OSLO (Reuters) - There will be no "precipitous drawdown" of U.S. forces in Afghanistan and U.S. troops could still be in the country for years to come, President Barack Obama said on Thursday. Nikkei up on yen retreat, China data boosts mood | Video Obama plans TARP aid for small businesses: report U.S. apartment occupancy, rent to stay weak in '10: report Goldman top executives to take bonuses in stock Pay czar poised for next wave of rulings » More Top News Now or never for Big Oil The pressure's on for oil giants looking to secure rare access to cheap Middle East reserves as Iraq gears up to auction off some of the world's largest untapped oilfields. Full Article Iraq nears deals amid power woes Iraq's oil service sector set to boom Energy G7 glass half empty Recovering from a punishing global recession has forced the world's richest nations to pay dearly, prompting subdued growth prospects and delayed sighs of relief. Full Article Is this the beginning of a depression? Tempering U.S. deficit is a good idea Global markets © Copyright 2009 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal ECVJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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