Frequently Searched

Cell Phone Bill of Rights Could Raise Prices

November 13, 2014

Phoenix: During this legislative session lawmakers will consider a host of proposals aimed at protecting consumers. But a new report says one of those, the Cellphone Users Bill of Rights, will likely hurt the consumers it aims to help.

The report released today by the Goldwater Institute, Hold the Phone: Why Arizona Doesn’t Need a Wireless Consumer Bill of Rights, says the legislation will limit cell phone plan choices and raise prices. The Cellphone Users Bill of Rights would limit cell phone contracts to one year and allow customers to cancel contracts within 30 days for any reason, among other things.

Lawmakers should not be in the business of telling consumers what terms of cell phone service they can or cannot buy, said Solveig Singleton, Senior Adjunct Fellow with the Progress & Freedom Foundations Center for the Study of Digital Property and author of the report. The government doesnt dictate our gym membership or our Blockbuster contracts, and it shouldnt mandate cell phone service terms either.

Many of the provisions in the Cellphone Users Bill of Rights have already been addressed voluntarily by cell phone providers. Verizon Wireless gives consumers 30 days to cancel contracts. AT&T, Sprint, and T-Mobile have introduced more flexible contract terms, and several companies are prorating termination fees. Markets are working well in this industry. There is no reason to change course, says Singleton.

Some companies are willing to offer a lower monthly price in exchange for a two year contract. If these companies are no longer allowed to offer a two year contract, even if a customer wants one, prices may go up.

Five other states have considered similar proposals, but Minnesota is the only state to actually enact legislation. That legislation was later found unconstitutional by the U.S. Court of Appeals.

Congress began deregulating the cell phone industry in 1993, and consumers saw a 40 percent price drop in six years, along with better, more affordable equipment, and more service options. The Cellphone Users Bill of Rights would reverse the national trend towards deregulation.

Hold the Phone: Why Arizona Doesnt Need a Wireless Consumer Bill of Rights is available online or by calling (602) 462-5000.

The Goldwater Institute is a nonprofit public policy research and litigation organization whose work is made possible by the generosity of its supporters.

 

 

More on this issue

Donate Now

Help all Americans live freer, happier lives. Join the Goldwater Institute as we defend and strengthen freedom in all 50 states.

Donate Now

Since 1988, the Goldwater Institute has been in the liberty business — defending and promoting freedom, and achieving more than 400 victories in all 50 states. Donate today to help support our mission.

We Protect Your Rights

Our attorneys defend individual rights and protect those who cannot protect themselves.

Need Help? Submit a case.

Get Connected to Goldwater

Sign up for the latest news, event updates, and more.

Wait! Don’t close this yet!

We are grateful for your support of the Goldwater Institute’s efforts to advance and defend liberty throughout the United States. For over 36 years, we’ve been defending the rights of Americans to live their lives free from government interference.

And Goldwater is unique in that we direct our efforts to the 50 states where we introduce and advance innovative ideas that expand freedom. And we fight in courtrooms and capitals nationwide to defend individual liberty.

In 2024 alone, we scored over 50 policy and litigation victories defending liberty!

And that’s just the beginning.

Our plans for 2025 include:

  • Stopping pernicious DEI and other woke programs in America’s universities.
  • Ensuring that patients suffering from rare and terminal diseases have access to cutting-edge, lifesaving medical treatments, without having to first seek permission from the government.
  • Defending parental rights across the United States so that parents can send their kids to the school that best fits their needs, free from leftist indoctrination.
  • Eliminating government interference in the fundamental right of individuals to own property and use it as they see fit.
  • And much, much more

We seek to restore the presumption of liberty; that people are free to act without first asking permission from the government.

But we cannot do this without you. Will you join us as we fight to preserve and advance liberty throughout the country? As we seek new and innovative ways to defend freedom in all 50 states?

And there’s great news: Thanks to a generous Goldwater supporter, your donation today will be doubled!

So please, join us in fighting to advance liberty and score real wins for freedom from coast to coast!