Printed from http://www.electronista.com

Panel: Cellular companies labelling fees as 'taxes'

updated 04:20 pm EDT, Wed October 17, 2007

Cellular misnaming 'taxes'

In discussing a proposed bill to limit the severity of cellular cancellation fees, a panel of the US Senate is bringing to light serious ethical problems, Reuters reports. Among these is a practice of some unidentified companies to label charges as "taxes," when they are in fact just corporate fees. The bill -- sponsored by senators Amy Klobuchar (D-MN) and John Rockefeller (D-WV) -- is partly targeted at this concern, and would require companies to avoid the term "tax" except where the charge is mandated by government regulations.

It has further been revealed that cellular networks are frequently charging $100 to $200 for early terminations even in extenuating circumstances, such as a soldier's deployment to the Iraq War. Lawmakers would also like to bar the practice of extending contracts without consent, something which has been done by raising or lowering minutes on a user's statement.

Testifying in front of the Senate panel, Verizon Wireless CEO Lowell McAdam has called for a "light touch" in controlling the cellular industry, insisting that his company has let soldiers out of contracts without charge, and has not padded any regulatory fees. Any success Verizon has had is due to its ethical behavior, he argues. "Competitive markets," says McAdam, "punish bad behavior."



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Logitech Hyperion Fury mouse

Selecting the correct gaming mouse comes down to finding a device that balances the needs of a user with a price they can afford. Ofte ...

Life n Soul BM211 Bluetooth speaker

Bluetooth speakers aren't only for listening to some music at the park or on a long bus ride, but can also be built with tablets in mi ...

Epson PowerLite Home Cinema 2030 projector

With high-definition televisions now the standard, 4K televisions becoming the next big thing, and plasma TVs going the way of the din ...

Sponsor

toggle

Most Commented

 
toggle

Popular News