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WNP FEES!

Discussion in 'GENERAL Wireless Discussion' started by Gamer03, Aug 31, 2003.

  1. Gamer03

    Gamer03 Technology Aficionado
    Super Moderator Senior Member

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    According to this article that DandyDon posted from the AP:

    NEW YORK (AP) -- ..."Nextel has been charging $1.55 per month since October; Since the spring, AT&T Wireless has been charging some customers what it calls a temporary fee of $1.75. Since April, Cingular has been charging from 32 cents to $1.25 per month depending on the state. Verizon says it has not yet decided whether to levy a number portability fee. "

    ..."Nextel, which has already collected more than $200 million to cover various regulatory costs, said it has spent "more than $100 million" in preparation for portability, but has declined to quantify its expenditures. "

    ..."Verizon says it has spent about $60 million on preparations, and estimated its ongoing costs to facilitate number portability at 10 or 15 cents per subscriber per month."

    ..."Cingular's average fee of 50 cents for all regulatory-related costs approximates what Sprint collects for number portability alone."

    Neither Nextel, Cingular nor Sprint indicated any plan to stop charging for number portability.

    When will consumers stop making us pay these fees?

    I also heard that Sprint was taken to court by someone in San Diego, if I am remembering correctly?

    Will the other companies also get taken to court, since I believe it is not our responsibility to pay WNP fees?

    The San Diego article also mentioned about the lawyer seeking other companies consumers and having them post complaints and going to court?

    Please advise, and correct me if I am wrong.

    Thanks.
     
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  2. ZaphodB

    ZaphodB Signal Go Down De Hole...
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    Unfortunately for the lawyer (who must be stunad if he's taking this to court), the fine print always says that the company can assess fees on an as-needed basis. He's got no leg to stand on. Whether it's right is beside the point (after all, one would think that the costs of doing business would be rolled into the price)...

    ...now, if this is the case where Sprint were taken to court because they claimed it was a "tax or government fee" (which it isn't, since it's imposed by the carrier, not by the government), then that's different and they were forced to change the description on the bill.
     
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  3. tylerdurden

    tylerdurden Senior Member
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    News flash: even if they aren't specifically itemized on your bill, you're going to pay the fee one way or another. The consumer pays all taxes, fees, etc in the end, even if not directly.
     
  4. A999

    A999 Junior Member
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    The fee is permitted by the FCC since it is used to recover costs associated with complying with the FCC mandate. The reason Sprint is in the news on this one is that some believe they are charging more than what is needed to recover costs with compliance to the FCC WNP mandate. I have to agree that Sprint is charging quite a bit and it is suspicious.

    However, compliance with WNP will take billions of dollars (collectively across the industry) because billing systems, networks, MTSOs, and the like must all be enhanced, updated, and in some cases rebuilt. The FCC has given the ok for wireless companies to assess this fee because of the high cost of compliance. Customers, however, must be notified of the fee (usually on their bills) and how much the fee will cost. Most contracts stipulate that you cannot terminate service based on fees assessed to recover costs associated with compliance of government mandated services, such as WNP. Note however that wireless companies are not required to charge the fee. They may recover the costs of WNP through rate increases or absorb the cost through their budgets, but WNP is so expensive that it would be difficult to do.
     

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