Verizon increases SMS rates -- customers now free of their contracts

It looks like Verizon Wireless is following in Sprint's SMS footsteps, announcing a planned hike in text messaging rates for those not currently subscribed to a messaging package. The hike, which will take effect March 1st, will bump the cost of sending a text message to the U.S., Puerto Rico, Canada and Mexico from $0.10 to $0.15 per message, with the price for international text messages remaining at $0.25 per message. The cost of receiving a message from customers of foreign wireless carriers, however, will increase to $0.15 whether you subscribe to a messaging package or not. If this all sounds a little familiar, it's because when Sprint did the same thing late last year, it didn't take long for people to figure out that the rate hikes amounted to a so-called "material change" to their contracts, meaning they could bail on it without paying an Early Termination Fee (EFT). So if you've been sticking to Verizon but secretly fancying another carrier, this looks like it may be your only chance to take the plunge without also taking a hit. In related news, Sprint looks to be planning a price hike of another sort, with a pair of tipsters relaying the news to us that the cost for Sprint's directory assistance service will be going up from $1.49 to $1.79 on February 1st, although whether that's enough to constitute a material change to the contract or not remains to be seen.

[Thanks, Max, Tina, and Jonathan]

[Dantidote @ Jan 12th 2007 3:29PM]

iPhone here i come!

[Venitronics @ Jan 12th 2007 3:34PM]

Exactly my thought!

[joel johnson @ Jan 12th 2007 3:34PM]

Cingular is also raising their rates to $0.15 for those not on a message plan. Note: Currently with cingular you can get an unlimited message plan or an unlimited data plan, but not both.

[Joseph @ Jan 12th 2007 3:36PM]

take that verizon fanboyos...



Disclaimer ::JOKE::

[William @ Jan 12th 2007 3:37PM]

Can we bail in anticipation of the rate hike? That is, can I claim the rate hike as reason for canceling and avoid early termination fees or must I wait until March 1?

[turbopro @ Jan 12th 2007 3:38PM]

SO does that mean we can back out today? or do we have to wait till march 1st?

[Frankenstein Black @ Jan 12th 2007 3:39PM]

SWEEEEET! No contract termination fee?! Come on over to iPhone country!
http://www.engadget.com/2007/01/12/cingular-to-become-atandt-on-monday/
CINGY WILL SHOW YOU THE (iPHONE, SIM PHONE SWAPPING, GSM/UMTS/HSDPA, GLOBAL ROAMING) LOVE. AND GUESS WHAT?
NO PHONE GIMPING!!!

[Gil @ Jan 12th 2007 3:39PM]

Huge rates!

It costs me (Europe) 0.07$ per message and 0.15 international with no tax for receiving. Why do you stand such rates?

[Venkat @ Jan 12th 2007 4:02PM]

Mr. Gil,
You cannot make direct comparison. People in India pay 0.02$.

[Matt @ Jan 12th 2007 4:35PM]

Because the Telco situation is abysmal in the US. Multi-year contracts, phones locked to carriers, anti-competitive/monopolistic behavior, poor coverage, and providers (along with their subscribers) constantly being bought and sold are just a few of the things that we endure here in the states.

[jabbawack @ Jan 13th 2007 10:06AM]

Right, it's quite absurd that you have to pay to RECEIVE messages, it doesn't make sense. Here in Italy I have a plane so I can send sms to 4 numbers at 1 cent and to all the others at 9 cents (don't know about international)

[Mr C @ Jan 12th 2007 3:43PM]

Great Timing.
Hello iPhone!

[apeguero @ Jan 12th 2007 3:44PM]

People, people, people, call 1-800-FREE411 (373-3411) for free 411. Don't pay that $1.79 when you can get the same for free! Remember when 411 was like .35cents? Wow! $1.79. That's abuse in my book.

[mark @ Jan 12th 2007 3:47PM]

Actually according to customer service the cingular smartphone plan provides for unlimited data and text messaging for 19.99. Pretty sweet deal with a blackjack!

[bobby @ Jan 12th 2007 4:02PM]

Cingular on 1/27/07 will be doing the same with its SMS from .10 to .15. Some people have reported that they have gotten out of the contract already.

[Andy D @ Jan 12th 2007 4:03PM]

Oh boy this is exactly what I wanted to happen!!! Nice! :)

[Andy D @ Jan 12th 2007 4:04PM]

And what I mean a rate hike of some sort so I can get out of my contract - Cingular here I come

[Aru @ Jan 12th 2007 4:09PM]

That's a pity. I've always been impressed with Verizon's service (really good network), and like their phone offerings. I don't see a reason for changing text rates other than pure greed.

The contract break thing only applies if you don't subscribe to a text plan, correct?

Not planning on switching anytime soon, but knowledge is power.

[Adam @ Jan 12th 2007 4:10PM]

would it be possible to bail on the contract but keep verizon as a carrier? I like verizon, but would love to not be stuck in a contract.

[Jason @ Jan 12th 2007 4:11PM]

So is there a timeframe that we have to cancel in? I want to get out of my contract in June, is that within the time I can cancel my contract?

-Jason

[Ian @ Jan 12th 2007 4:13PM]

sounds alright, i guess, although this means that ill have to subscribe to an sms plan when i go to Verizon in may (best coverage in my area)

[Kevin @ Jan 12th 2007 4:14PM]

Hmmm... There has been quite a bit of discussion on this at the Consumerist w/ the Cingular txt rate hike that just happened. Looks like Cingy isn't letting people out of their contracts due to this... not sure how things will be any different for Verizon customers. See Cingular's reaction to the Consumerist reporting below:

http://consumerist.com/consumer/cancellations/cingular-responds-223412.php

[Chris @ Jan 12th 2007 4:21PM]

There are a few questions about this already gathered, so could someone who knows how this works write up a FAQ or something with details on how to do this?

Personally, I bought a Motorola Q only a month and a half ago, and would love to be able to go to just a pay month-to-month basis until the iPhone comes out and then bail on Verizon.
1. Is this possible?
2. How do I go about cancelling my contract?
3. Would I have to leave Verizon immediately when I do?
4. Are you excluded if you have a messaging package (I would imagine not if they are now charging more for seperate carrier messages - was this always the case that they weren't included?)
5. If you got a sweet deal on a phone (Like the Q) will there be a problem for cancelling your service, will I have to pay more for my phone?

Thanks in advance if anyone can help us out!

[apeguero @ Jan 12th 2007 4:34PM]

Damn Chris. You took the words right out of my mouth. I was just about to suggest people that want the iPhone, bail out and go into a plan with a company like Virgin. Then, when iPhone comes out, they can get in on Cingular, or AT&T, or Cingular or at&t, or SBC, or Cellular One, or baby bell, or whatever it's called then, and qualify for the discount...

[jlfeldes @ Jan 12th 2007 4:31PM]

Can i get out of verizon today or do i have to wait till 3/1/07

[Brandon Bloom @ Jan 12th 2007 4:31PM]

This is definitely price fixing. As I understand it, text messages travel over the voice lines. There is no way in hell a text message amounts to even one seconds worth of voice data. How do we fight back?

[alex @ Jan 13th 2007 1:42PM]

that is incorrect. txt uses data, EVDO or the RTT

[jonathanH @ Jan 12th 2007 4:32PM]

Note that the price listed for the iPhone at launch includes a 2 year contract. If you have already signed a contract with Cingular (like say you sign with them now because you escaped Verizon) then you get no discount. That puts the minimum price for an iPhone at 800-1000 dollars out of pocket. That 200 dollars extra could be close to the early termination fee, I'm not sure.

Basically, just getting out of Verizon now might not save you any money if you want the iPhone later.

[jlfeldes @ Jan 12th 2007 4:39PM]

Can i get out of my verizon contract today?? or do i have to wait till March 1st

[Jeff Foster @ Jan 12th 2007 4:49PM]

Sprint's also increasing their Equipment Protection Plan (phone insurance) from $6 a month to $7 a month, starting Feb '07

It also seems like their equipment Protection Program had a $35 deductible for replacements (New phone would cost $35) and after the rate hike, it's $50. (i can't verify $35, but that's what it was last time it mattered to me.)

Seems like more technology, use, subscribers, etc would drive prices DOWN, but apparently not.

[meekzzz @ Jan 12th 2007 4:56PM]

can i opt out of a text plan today and be subject to the contract change?

[Phil @ Jan 12th 2007 5:02PM]

Looks like point 7 on the CTIA agreement would have you covered regardless of whether is ala carte messaging or not. _IF_ the sms rate is specified in the current contract and the rate is changed and that materially adversely affects you, you would have a case you could make in which case you have not less than 14 days to opt out.

That you would do so immediately without knowing a hell of a lot more about pending legal challenges, costs, rate plans & pricing etc, device performance etc seems non-sensical.

[tubby17 @ Jan 12th 2007 5:09PM]

Here's what I was told just now by a Verizon rep (take it for what it's worth):

1) You can only cancel your service (as opposed to your contract). You can't go from a contract to month-to-month. So if you don't have something else lined-up right away, this may not be for you.

2) The only folks to whom this price increase represents a breach are those who a) do NOT have a text message plan, and b) have nevertheless sent or recieved text messages in the past (i.e., paid the $.10 rate).

Again, this is only one rep's information. YMMV.

[Leonard Nimrod @ Jan 12th 2007 8:07PM]

SO change your unlimited plan to a per-messgae plan, then send one message and then cancel your service.

If you are going to move to Cingular for the iPhone, that is fine. You can surely sue this "contract change" 6 months from now. You aren't required by law to act immediately on this alteration.

[Dolomite @ Jan 12th 2007 5:16PM]

FSCK OFF Verizon... Can you hear ME now?

[Jim @ Jan 12th 2007 5:29PM]

I just called Verizon and the rate increase does NOT constitute a contract breakage on their part. YMMV
I do not have a messaging plan.
I was going to try and leverage them to upgrade two phones on our plan early had it been a contract breaker.

[Dave @ Jan 12th 2007 5:40PM]

You poor Americans, I can't believe the rates of your contracts. In Sweden we pay about 6 cents/message on a prepaid card. If you have a contract they're often included. Bear in mind that pretty much everything else is cheaper in the U.S. ;technology, clothes, food. The housing might be the same or a bit more expensive, but the salaries are generally higher and the taxes far lower.

Something is wrong with your calling prices.

[Mike @ Jan 19th 2007 5:30PM]

I'd rather pay a little more for calling prices and live in America.
Quite a deal, I would say.

[nilofc @ Aug 14th 2008 2:57PM]

Yeah. But then again, that is Sweden...not the U.S.

[James Smith @ Jan 12th 2007 6:03PM]

I wanna leave Cingular sooo bad they are horrible! Can I do it with this txt msg rate hike?

[Jakob @ Jan 12th 2007 6:05PM]

Hey! Here in Denmark we average pay about $0,03 for one SMS. And we can get a "package" down to $10, who include 5.000 SMS. For about $15, you can send so many sms as you want. Why is it so expensive to send sms in America? Almost all in Denmark use it (SMS)

Sorry bad english

[Jakob @ Jan 12th 2007 6:05PM]

And we doesn't pay to recieve a message, and calling is normally from $0,041/minute to $0,115/minute.

[Jason @ Jan 12th 2007 6:14PM]

No. It is extremely unlikely that you will be able to leave Cingular on the text message hike, because their contract really doesn't specify text messaging as a service nor does it mention any fixed price or anything. They will throw it back in your face as a "feature" of your phone that you "optionally" use. They might even offer to block incoming messages if you propose the situation of unwanted messages being received, then loop back around to the feature spiel after you tell them you want the option to send and receive messages, canceling that option. It's a no win battle. Even if you do get some nice representative that says they will put a note in your file, it will most likely be shot down later by a supervisor and you will get caught in the same loop as before.

Cingular not once offered me anything for my grievance on this and treated me as a hostile customer who was trying to take advantage of them. This is though I have been a loyal customer since AT&T. I should have signed up with T-Mobile, but I was stupid and now I'm paying for it. The best bet is to ride your contract out and not sign up with them again. Never, ever sign a 2 year contract with anyone. It just gives them the ability to treat you like crap for that time while they hide behind their loopholes and lawyers.

One other option you can try is the arbitration agreement, which is discussed at fatwallet.com, though it seems a little vague. http://www.fatwallet.com/forums/messageview.php?start=480&catid=18&threadid=681351

[JR @ Jan 12th 2007 6:59PM]

Out of curiosity, if you bought a phone today could you cancel tomorrow? I know it's immoral, but hey! (For Cingular too?)

[James Smith @ Jan 12th 2007 7:12PM]

I just tried canceling my contracts with Cingular and they gave me the run-around. At first they argued that pay-per-use SMS is an optional feature and my arguement was that when you buy a phone under contract, by default you get SMS @ $0.10 per msg. I also pointed out that if they change airtime rate plans, yours will remain the same regardless because that's what you agreed to. If they changed your airtime without you agreeing that would violate the contract, the same should go for SMS. I want what I agreed to, 10 cents a msg and by them changing it they violated my contract. He finally went on about how in the contract it says they can change any services, prices or features whenever they feel like it. But my point was that defeats the purpose of a contract. I'm not gonna give up on this, I think I'm gonna contact the FCC or a local elected official.

[Muttman @ Jan 12th 2007 7:55PM]

James, call them back and educate them that that point is only relevant w new pricing. if you sign a contract for x amount of dollars per minute or whatever, and they cant change YOUR pricing until your contract is up. by paying your next bill that constitutes you agreeing to the changes. but if you dont, they have to allow you to get out of your contract WITHOU PENALTY. refer them to the CTIA. Where talking about a material change to your contract. think about the logic. if they could indeed change pricing whenever they pleased, then all companies would draw you in w one rate and raise it after that to a higher rate and the consumer couldnt do anything? I DONT THINK SO!

[tc @ Jan 12th 2007 7:22PM]

Is this a limited time offer or will it change from that day forward?

[trendless @ Jan 12th 2007 9:59PM]

Anyone know if there's a similar law in Canada?

[keith @ Jan 12th 2007 11:15PM]

FYI - This does NOT work.

I just got off the phone with Verizon. They are NOT considering the txt messaging hike a change in your cell phone plan. They are considering it an extra service outside of your phone plan. As such, it doesn't fall under the clause in the Customer Service agreement allowing you to break contract w/o the early termination fee. At first, I thought the customer service rep was going to let me cancel. Then, she put me on hold for 20 minutes to talk to her supervisor. Ohwell, it was worth a shot.

[Kevan R (SLC) @ Jan 13th 2007 2:48AM]

Actually, it does work. I need a new phone, but my contract is not up until June. Customer service WILL NOT HELP YOU. You need to talk to the loyalty department. I told them that I was willing to re-up for another two years if they would give me new phones, or I was walking. My new phones are waiting for me at the store. My online account reflects it and everything.