Verizon increases SMS rates -- customers now free of their contracts
By Donald Melanson 
posted January 12th 2007 3:25PM
posted January 12th 2007 3:25PM
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]
iPhone here i come!
Exactly my thought!
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)
Cingular is also raising their rates to $0.15 for those not on a message plan. Note: Currently with cingular you can get an unlimited message plan or an unlimited data plan, but not both.
Oh and this is great, it gives me even more reason to jump ship to Cingular for the iPhone. Then only problem is that the damn iPhone doesn't come out till June. I'm still jumping ship anyway though. I've been a Verizon Wireless customer since 98 and I'm finally leaving. Well worth it though. Yay for iPhone!
SO does that mean we can back out today? or do we have to wait till march 1st?
Okay one quick question.
When you say "Foreign wireless carriers" do you mean texting to any network other than Verizon or do you mean texting to someone outside of the US. The word Foreign has many different meanings.
Thanks
take that verizon fanboyos...
Disclaimer ::JOKE::
Can we bail in anticipation of the rate hike? That is, can I claim the rate hike as reason for canceling and avoid early termination fees or must I wait until March 1?
SWEEEEET! No contract termination fee?! Come on over to iPhone country!
http://www.engadget.com/2007/01/12/cingular-to-become-atandt-on-monday/
CINGY WILL SHOW YOU THE (iPHONE, SIM PHONE SWAPPING, GSM/UMTS/HSDPA, GLOBAL ROAMING) LOVE. AND GUESS WHAT?
NO PHONE GIMPING!!!
Huge rates!
It costs me (Europe) 0.07$ per message and 0.15 international with no tax for receiving. Why do you stand such rates?
Mr. Gil,
You cannot make direct comparison. People in India pay 0.02$.
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.
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)
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.
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.
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.
Great Timing.
Hello iPhone!
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.
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!
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?
that is incorrect. txt uses data, EVDO or the RTT
Oh boy this is exactly what I wanted to happen!!! Nice! :)
And what I mean a rate hike of some sort so I can get out of my contract - Cingular here I come
can i opt out of a text plan today and be subject to the contract change?
Can i get out of my verizon contract today?? or do i have to wait till March 1st
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
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
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.
I called Verizon Wireless Business Support they claim that for people who have a text messaging plan in their contract the increased fee for incoming texts from foreign carries does not constitute a "material change" to the contract because incoming texts from foreign carriers is an extra service and we could have them turn our receiving of texts off. Really pisses me off cause now im gonna have to save for the iPhone and pay to end my contract or just wait till it goes up in november.
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!
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...
Can i get out of verizon today or do i have to wait till 3/1/07
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.
Anyone know if there's a similar law in Canada?
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.
Out of curiosity, if you bought a phone today could you cancel tomorrow? I know it's immoral, but hey! (For Cingular too?)
the cingular data plan for $19.99 is not unlimited messaging. it's 200 txt with unlimited data. it's called MediaMax200
cingular might try to make people sign up for their PDA data plan, which is $39.99 (for unlim. data and no included messages). but i know the MediaMax200 plan works on the pda phones. Just add it on your own later.
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.
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.
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.
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
FSCK OFF Verizon... Can you hear ME now?
And we doesn't pay to recieve a message, and calling is normally from $0,041/minute to $0,115/minute.
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.
I'd rather pay a little more for calling prices and live in America.
Quite a deal, I would say.
Yeah. But then again, that is Sweden...not the U.S.
Is this a limited time offer or will it change from that day forward?
I wanna leave Cingular sooo bad they are horrible! Can I do it with this txt msg rate hike?
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