Companies which allow users to break long-term cell contracts
I just read an article in the WSJ about companies that have sprouted up to take advantage of a loophole to help customers get out of their cellphone contracts.
It is a pretty interesting idea since cell phone companies do everything in their power to lock you in to long-term contracts now due to the increasingly low switching costs in teh cell phone space. This product is one which I know I would have taken advantage of when I first moved to Chicago and my old cell phone service didnt work in my house. It works like this:
" The Web sites make use of a cellphone-contract loophole that’s available to nearly all customers with long-term plans: Companies allow people to get out of contracts if they transfer the remaining time to someone else, once the provider approves the new customer through a credit check. As for the contract buyers, they can avoid a registration fee, get a shorter contract than if they had signed with a cellphone company, and sometimes get a free phone and accessories from the unhappy customer. The sites charge fees ranging from $14.99 to $50 — well below the usual termination fees. "
The article references celltradeusa.com and wisecracker.com as the two main players that currently exist in the market.
More info at:
And you can take your number with you when you change providers :).
Hi Chris,
Just space hopping so thought I would say helloo,
Hugs
Sarah xx
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