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Sprint Loses ETF Lawsuit, Owes Former Customers $73 Million

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End ETF!

island-guy

Jul 29, 2008, 8:12 PM
Serves these carriers right. I understand certain administrative costs are undertaken to start new wireless contracts and they should be covered by activation fees. ETF's are a sleezy way to keep customers in bondage to wireless providers. Why don't they just follow the rest of the civilized world? In Asia, you pay more for phones but you have no BS contracts with ETF non-sense. I hope every domestic carrier gets hit with this one. 😡
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cell phones are evil

Jul 29, 2008, 8:17 PM
ATT offers this...if you buy the phone at full price then you don't sign a contract, some other carriers still offer this as well, you just gotta ask.
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arsimckhoi

Jul 29, 2008, 8:30 PM
all providers even sprint has this... customers are stupid to think industry just applies $200 etf to account randomly. if your account was renewed on accident by a newbie (i admit i may have done before) then you can always negotiate for something in return for that such as a phone a discount on a plan. I kind of hope the federal government will mandate regulatory etf. Like we say hey you want the $500 phone? it's your free... if you cancel you gotta pay us back though, deal?

You want the phone and the discount? See you gotta stay with us for 3 years then because we're a company and well we do have to make at least a little money off of everyone...

If I had the power that's how I'd negotiate...

I'd set everybody up sweet but I'...
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Roadkill

Jul 30, 2008, 4:35 AM
Not all the time on all phones, no. When I purchased my Tilt they would not sell it without a contract, and contract == ETF.

I told the rep that I didn't want a contract, was willing to pay full retail price, that I'd been an AT&T customer for 12 years, etc, etc but he said there was nothing he could do. He was required to only sell the Tilt with a 2 year contract.

Didn't really matter to me - not like I'm going to switch carriers after 12 years - but I still found it annoying.
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Mektah

Jul 30, 2008, 9:59 AM
ITs not so much about the phones as promotions and advertising. Anyone who works for a cell company knows how much money u put into advertising to attract new customers. even paying for a phone a full price a lot of the plans cell phone companies have require customer to be there for some time before the company starts to turn a profit over the initial set up costs. thats why companies have contracts. if they didnt cx's would hop from company to company after not paying there bills. Heres the thing people who say get rid of etf's are just stupid. they are the people that accept the stupid offers like 100 bonus minutes for a year, or 50.00 credit and then later want to cancel. You dont want a contract or etf, buy a prepaid cell.
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thrille

Jul 30, 2008, 10:02 AM
much agreed, nicely put
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Roadkill

Jul 30, 2008, 10:22 AM
Put down the Kool-Aid and step away from the brainwashing machine.

There are no initial setup costs. It takes 30 seconds to activate a new phone line and it's all handled by computer. There is NO REASON to require a 2-year contract on an unsubsidized new line, other than to lock in that customer because you're afraid that your service isn't good enough and that they'll leave.

I have no problem with contracts for subsidized phones, or special promotional rates, or bonus minutes, or any of that crap. But requiring a new contract when none of that applies - which all of the carriers have done - is simple greed.
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Th3Coog

Jul 30, 2008, 2:56 PM
Agreed when none if it applies, but I've NEVER seen that to be the case.
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dmack

Jul 30, 2008, 9:38 AM
I just added a line to my plan with AT&T, and I used an existing phone I already had. They said it still requires a new 2 year contract for that line, even though I didn't purchase a phone from them. They said I could purchase a new phone at discounted pricing within 6 months from the activation date for that line, but if I don't, it's still a 2 year contract.
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thatguy_overthere

Jul 29, 2008, 8:43 PM
I'm all for that. I hate that carriers subsidize phone prices. Just remember that these people signed contracts too. They need to be accountable for what they sign for. But how many of the average cell phone customers do you think actually understand how much a phone costs?

It's a bad place that the cell industry in the US put itself. Just think how many "problem" customer interactions could be avoided if the customer had to pay $500 or more pr their nice little PDA phone instead or $200 or less. Also imagine how many people would stop abusing their phones and actually take care of them.

I'm a tech at a Sprint store and i see sooooo many beat up phones that come in and most of the customers that do it just don't care because ...
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jskrenes

Jul 29, 2008, 10:08 PM
Yeah, it's a catch-22, if we end ETFs, the cost of the phones will go up by about $200. so customers will be less apt to buy new equipment if they can't get it for free or reduced cost. And in Europe, they buy their phones at full retail, but their sim cards are bought at 1-year subscriptions, so in effect you still have a 1 year contract.
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dave73

Jul 30, 2008, 3:32 AM
People thought the current ETF's are bad now. While a different topic in itself, but I don't know when the government will enact the new pro-rated ETF's, based on the retail price of the phone, and not a flat rate or pro-rated ETF that the carriers charge now. So the complainers made it worse than it already was.

As for Sprint extending contracts for every little change to plans got what they deserved. Maybe people will go after Verizon as well, as they used to extend contracts for changing calling & data plans.
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KeonIX86

Jul 30, 2008, 3:11 PM
Verizon Wireless, since October 7th, 2007, no longer extends or renews your contract unless you agreed for a 1yr or 2yr "Yearly Minutes" renewal where you get either an extra 500, 1000, or 2000 minutes according to your plan type and contract end date. That's the only way now, to extend your agreement without upgrading your phone. You can safely, since Oct 7th, 2007, be able to go up and down your pricing plan without worries, just watch the proration/partial month charges. 😎
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phonegnome

Jul 30, 2008, 3:48 PM
sprint has it where you can change to what ever plan fits your needs without extending your contract. I just did it without any hassles. 2 of my fiends did it 2 months ago with no hassles and we are all paying less than we were before.
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PhonemanJ

Jul 30, 2008, 3:11 PM
Sure, the wireless companies can end the ETFs, JUST DON'T EXPECT TO GET YOU FREE PHONES ANY LONGER!!!!!
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thereisnoway

Jul 30, 2008, 6:40 PM
most carriers currently do not make back the money on service till at least 6 months after service have been started, the money they take in on the first 6 months are there to pay for the advertising, product development, network development, etc...

most carriers also offer no contracts currently(alltel, sprint, tmo and att are the few i know of), but the phone is full retail, but most americans are too ignorant and think phones should always be free, so i am pretty sure etf will be around till the goverment saids no more.

because whichever carrier choose to go no etf by themselves will probably lose a lot of customers, not only on retention, but also activations
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tuminatr

Jul 30, 2008, 11:51 PM
come on guys If etf's go away it means no more handset subsitys NO more free phones i bet the average price would go up about $175 per phone more on pdas like blackberrys and Iphones probibly like $250 more for pda's most of the companys will do service with no contract if you buy the device at retail, or cost plus I think all the cell companys will sell you a new phone any time at retail or cost and you dont need to do a contract this is typical people enter into a contract that they did not read or make a attempt to understand and blaim the big bad company well then you should not have entered into the contract who here actually read the tearms and conditions of there cell phone contract because i know I did'nt. Also I beleave what sprint ...
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