TheOtherView
New cell phone law will not ensure better plans

The long-awaited federal regulation allowing consumers to switch cell phone providers but keep the same phone number finally took effect on Monday. While the law is still in its infancy, the concept of number portability has been a long time coming.

In the wireless industry’s 20-year history, cell phone companies have fought with the Federal Communications Commission over number portability because it would increase competition. Before the law was passed, companies could basically hold a phone number hostage. This forced customers to stay with their original provider or face the aggravation of switching providers and phone numbers. The headaches associated with changing a number were minimal for some, but for others, especially those who relied on cell phones for business purposes, changing providers was not a possibility. To those people, a new phone number would mean reprinting business cards, notifying all colleagues and customers of the switch and could also mean a loss of business if someone was unaware of the switch.

For approximately 154 million cell phone users nationwide, the new law will force wireless providers to offer better plans, lower prices and more flexible contracts. As a result, the FCC is expecting 21 percent of cell phone users to switch providers within the next year as a result of the new law.

While the new law may seem like the best thing to happen to cell phones since the invention of camera phones, there are some underlying issues many consumers may not recognize. Many may switch companies because another company has a better deal. However, the new plan could be more costly in the end. Most providers require customers to sign a contract when they begin using the company’s service. These contracts can range anywhere from a month to five years. Canceling a contract with some companies can cost more than a person would save with the switch. The cost of a new phone is also a factor. The wireless industry has collectively agreed that allowing customers to keep the same phone would be too difficult and costly, therefore every time someone switches providers, they must also switch phones.

In the end, having the ability to switch cell phone providers may be a convenience, but it is not a guaranteed way to save money.

This is a Staff Editorial from The Lantern at Ohio State University.
This editorial was distributed by U-Wire.