Cellphone Contracts: Is There an Out?

ANCHOR LEAD IN:
Source: Information Economy Report 2006
CELL PHONES HAVE BECOME AN INDISPENSIBLE PART OF MODERN LIFE - IN FACT, ABOUT THREE-QUARTERS OF AMERICANS NOW USE MOBILE PHONES. BUT WHEN YOU WANT TO DITCH YOUR CELL PHONE, IT CAN BE PRETTY DARN HARD - AND EXPENSIVE! IN TODAY'S HEADS UP - TIPS FOR HOW TO AVOID THOSE NASTY CHARGES WHEN YOU'RE READY TO MOVE ON.

TRACK ONE Length: 06
KELLI SORRELS (sor-ells) TRAVELS TO EUROPE A LOT FOR BUSINESS. UNFORTUNATELY HER CELL PHONE PROVIDER DOESN'T TRAVEL WITH HER.

SOT
KEY @: 07 Kelli Sorrells, Wants to change her cell phone carrier
"I get over there, get off of the plane. At the airport…turn on my phone.
Nothing. Did not work at all."

TRACK TWO Length: 05
SORRELS' WANTS OUT OF HER CONTRACT…BUT DUMPING HER PLAN WILL COST HER DEARLY.

SOT
KEY @ : 22 Kelli Sorrells, Wants to change her cell phone carrier
"The contract claims that the termination fee is $175. I'm not paying that."

TRACK THREE Length: 04
EXPERTS SAY, WHILE IT CAN BE TOUGH TO GET OUT, THERE ARE LOOPHOLES.

SOT
KEY @ : 33 Aleksandra Todorova, Smartmoney.com
"The first loophole is basically...it's in your contract. It allows you to get out if the phone company changes anything in your contract."

TRACK FOUR Length: 08
FOR EXAMPLE…IF YOU GET AN INCREASE IN FEES FOR TEXT MESSAGES, EQUIPMENT REPLACEMENT, OR UNLIMITED MOBILE-TO-MOBILE CALLS…YOU MAY HAVE AN OUT!

SOT
KEY @ : 49 Aleksandra Todorova, Smartmoney.com
"As soon as you get that letter, call them, ask them that you want to leave. Tell them you know that by the terms of your contract that is your legal right."

TRACK FIVE Length: 09
YOU USUALLY ONLY HAVE A 30-DAY WINDOW TO NOTIFY YOUR PROVIDER, SO PAY CLOSE ATTENTION TO CELL PHONE NOTICES. ANOTHER LOOPHOLE? MANY PROVIDERS ALLOW YOU
TO …

SOT
NO KEY
"Swap out of your contract, have someone assume it for you."

TRACK SIX Length: 10
A GROWING NUMBER OF WEB SITES HELP CUSTOMERS GET RID OF THEIR CELL PHONE CONTRACTS FOR A SMALL FEE. YOU CAN DUMP PLANS AND PHONES…AND THE PERSON WHO TAKES OVER GETS A SHORTER CONTRACT…

SOT
KEY @ : 1:21 Aleksandra Todorova, Smartmoney.com
"They allow you to just post something like a classified ad, where you will say this is the phone that I have, this is the provider, this is what's left on my cellphone contract."

TRACK SEVEN Length: 10
FROM THERE, YOU AND YOUR BUYER DEAL DIRECTLY WITH THE CELL PHONE CARRIER. BOTH THESE LOOPHOLES TAKE SOME CUSTOMER EFFORT, BUT MAY BE THE ONLY OPTION WHEN YOU'RE DESPERATE TO DITCH YOUR PLAN…LIKE KELLI IS.

SOT
NO KEY
"I'm not asking for anything outrageous. I just want out."

ANCHOR TAG:
TODOROVA (TOE-dah-ROE-vah) SAYS THERE'S ONE OTHER PIECE OF GOOD NEWS. VERIZON RECENTLY INTRODUCED A NEW TYPE OF EARLY TERMINATION FEE STRUCTURE WHERE THE LONGER YOU'VE BEEN A CUSTOMER, THE LOWER YOUR TERMINATION FEE WILL BE. SHE SAYS INDUSTRY ANALYSTS ARE HOPEFUL THAT OTHER CARRIERS WILL FOLLOW.

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Aleksandra Todarova
Reporter, Smartmoney.com
212-373-9182
atodarova@smartmoney.com
Aleksandra Todorova has covered personal finance since joining SmartMoney.com in 2003. Her areas of expertise include credit cards, debt management, college planning, student loans, retirement planning, travel and mutual funds. Before joining SmartMoney.com, she covered the public-relations industry for PR Week and freelanced for several New York-based weekly newspapers. Aleksandra holds a master's degree in journalism from New York University, and a bachelor's degree from the American University in Bulgaria.

Cellphone use information:
According to Information Economy Report 2006, a United Nation's report released in November:
* 2.17 billion people around the world were using cellular communication at the end of the year, 23.5 percent more than last year.
* In the United States 70 percent of the people have a cell phone
Source: www.kommersant.com