Subject: [NEXTEL-1] CONSUMER WATCH: Radio Shack Another reader reports an old phone, new box

From: [email-masked]
Date: Mon, 12 Apr 2004 02:59:12 -0400

CONSUMER WATCH: Radio Shack Another reader reports an old phone, new box

IRIS TAYLOR
POINT OF VIEW Apr 11, 2004

Readers of my March 21 column, "How to find a bare-bones cellular plan,"
e-mailed me about three cheap cellular plans that I did not include.

Also, Dianne Barba of Richmond said in response to my March 28 column,
"Used cell phone was sold as new," that she and her husband purchased a
used phone, sold as new, at a Radio Shack just as did the Powhatan
couple who complained about it to The Times-Dispatch.

In that column, Radio Shack's district manager said it was not a policy
to sell used phones as new. He said a used phone had accidentally, not
deliberately, been placed in a box and sold as new to the Powhatan
couple at Chesterfield Towne Center in Midlothian.

Said Barba, "At the end of January, we went to the Radio Shack located
at Merchants Walk on Broad Street. We purchased a two-year cell phone
agreement through them with Verizon with three phones. One phone would
not hold a charge, another phone already had 36 numbers programmed in,
and had a ding on the outside of the flip cover.

"We were assured that both phones were new, but we successfully argued
that none of the numbers that had been programmed in were familiar to us
and we were given two new phones."

Radio Shack's district manager was on vacation and could not be reached
for comment. The manager of the Merchants Walk store was not working
there when Barba bought her phones. But, he reiterated that it's not
Radio Shack policy to sell used phones as new.

He said the policy is to put a two-year warranty on returned phones and
inform customers who are then sold those phones that they are not new.
. . .
Ken Simms of Richmond wrote about a different, but related,
used-cell-phone issue.

He got a new cell phone through his employer from a Verizon
representative. It had a glitch and was replaced. The re- placement
phone, also new, had a malfunction and after "a lengthy discussion" was
replaced, too, but with a warning "that if I had any further problems, I
could not get another phone under the one-year warranty."

Simms said he was told Verizon's policy was to replace with a
refurbished phone 15 days after purchase. "I couldn't believe it.
"Like me, most people would assume their new phone would be replaced
with a new phone," he said, "especially since it has a one-year
warranty" and he had not received one that worked correctly.

Verizon Wireless spokesman John Johnson in Maryland clarified the
company's policy: "It is not a Verizon Wireless policy after the 15-day
money-back guarantee period expires to replace the phone with a
refurbished model," he said. "In fact, there was probably confusion at
the store that Mr. Simms visited. We've taken steps to clarify the
policy with our stores," said Johnson. "If your phone is malfunctioning
for any reason, we will replace it with a new phone within the first 30
days.

"After that period, "Johnson said, "we will replace a malfunctioning
phone with what's called a factory refurbished unit. A refurbished phone
does not mean one with any cosmetic or hardware blemishes. It only means
a phone that has had a software problem which has been corrected."

The reason for this procedure? "So we always have an inventory of known
good devices that we can give to our customers if they have a defect,"
said Johnson. "I think this is pretty standard policy throughout the
industry."

Carole Danielson, a Federal Trade Commission senior investigator, said
retailers can have any policy they want as long as they disclose it to
you, either posted or in the contract or warranty. She added, "there's
nothing illegal about using refurbished parts or refurbished phones as
long as it's disclosed up front."
. . .
Here, now, are the bare-bones cellular plans that readers told me about:
One, the "Alltel Safety Plan" sounded good at $13.46 a month after taxes
and surcharges, for 100 anytime minutes per year and 500 night/weekend
minutes.

But, Alltel spokesman Larry White in Little Rock, Ark., said that plan
is no longer offered. It was offered "in the early days of wireless," he
said. Those who still have it are allowed to keep it because they were
customers prior to when the plan was phased out.

These days, the cheapest plan at Alltel is its $24.95 per month "Local
Prepaid Wireless" service. You get 100 peak minutes and 1,000 night and
weekend minutes.

Go over those minutes and you pay 35 cents a minute. Wander outside
Alltel's coverage area and you'll pay 59 cents a minute. Add various
taxes, fees and surcharges each month. Also, there's a $35 activation
fee; you pay $200 if you terminate your service after 15 days; and, you
have to buy a phone, which ranges at www.alltel.com from 99 cents if you
sign a two-year contract to $500 for a souped-up model.

Ntelos has what looks like an inexpensive prepaid (no contract) cellular
plan called "nStant Minutes." The sign-up package, including the phone,
costs $129. That gets you a Motorola 120e phone and 60 minutes talk
time, plus activation. Then, for $10 each 31 days, you buy another 40
minutes - more, if you need it. You'll be charged 25 cents for phone
calls placed from 7 a.m. to 9 p.m., then 10 cents a minute from 9 p.m.
to 7 a.m.

Here's where you can get into trouble: Get caught roaming and you'll pay
79 cents a minute. You'll pay $1.25 every time you dial 411. Call long
distance and you'll pay 15 cents per minute on top of the basic 25
cents.
Another reader told me about Virgin Mobile, which uses the Sprint
Nationwide PCS Network.

Buy a phone online priced from $70-$150, or type in your ZIP code and
find a Rite Aid, Wal-Mart, Walgreen's, Sam's Club, Sprint PCS, some
7-Elevens, Best Buy, CompUSA, VCU bookstore or Target where you can buy
one.

The West Broad at Libby Avenue Target store sold Virgin Mobile phones
priced from $59-$139 the day I called, and minute cards. Activate for
free. No contract is involved.

Then, each day, no matter what time of day, no matter where you call in
the United States (there is no roaming), talk the first 10 minutes for
25 cents a minute, then 10 cents each minute afterward. Every three
months, you can top up your minutes for $20-$50. Calls to 411 cost
$1.50, plus the 25 cents or 10 cents per minute air time.

Trouble: If you wander outside the Sprint/Virgin Mobile coverage area,
your phone won't work, except for text-messaging. So, before saying yes,
plug in your ZIP code on the Virgin Mobile Web site and see if there's
coverage where you need it.
A cheaply priced plan is worth nothing if you can't place a call,
especially an emergency call. I plugged in my ZIP code and got this
message: "Based on the information you entered, we know that we provide
coverage close to your area, but we're not sure if we cover your exact
location."

Finally, before signing a cellular agreement, read the cellular "terms
and conditions" and "explanation of fees and services" There might be
surprises not explained verbally that could hit you hard in the
pocketbook.

Consumer Watch appears weekly except for the first Sunday of the month,
when The Times-Dispatch publishes the Small Business column. If you have
consumer concerns, call Iris Taylor at (804) 649-6349 or write to her
c/o Richmond Times-Dispatch Business News Department, P.O. Box 85333,
Richmond, VA 23293. Her e-mail address is [email-masked]

http://www.timesdispatch.com/servlet/Satellite?pagename=RTD%2FMGArticle%2FRTD_BasicArticle&c=MGArticle&cid=1031774805439&path=!business!columnists&s=1045855934868

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