Legislation introduced by Sen. Klobuchar aims to end high termination fees and unexpected dead zones. Critics say it is overregulation.
As if having four carriers in town, T-Mobile, ATT, Sprint/Nextel, Verizon as well as resellers like Virgin, isn't enough competition to drive fees and coverage down and up respectively, Amy Klobuchar, assuming all more-pressing issues have been solved, is sticking her ignorant nose into the wireless business. It's not like we have an evil monopoly going here.
Why are there termination fees? Because if you haven't noticed, Amy, a cellular phone, even a very basic one, has an acquisition cost of a couple hundred dollars to the carrier. There is no free lunch and there is no "free" phone.
The carriers subsidize the handset in exchange for a one or two-year contract. Correct me if I am wrong, but I am pretty sure everybody knows this.
That is how carriers have made it possible for virtually everyone that wants one to have one nowadays.
If you don't like your carrier after you have fulfilled your contract, you can switch and even take your number with you. You can sell your old phone on eBay, sign a new contract, and get another "free" phone.
So, Amy, what will be the result of your ill-advised and asinine proposal (assuming it has a chance)?
Termination fees will be traded for higher activation fees and monthly access fees and equipment costs. Much higher equipment costs.
The Cell Phone Consumer Empowerment Act? Even the title sounds asinine.
Update: more from Kermit here.