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The French are looking to make contracts a max of 12 months; disclose how much goes towards the handset

December 8, 2010 by Stefan Constantinescu - 2 Comments

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French telecoms regulator Arcep is looking at making the nation more competitive in the mobile arena and to protect consumers from operators who, like any other corporation that issues shares, are looking to maximize profits. Back in 2008 Arcep decreed that operators can offer consumers contracts that last a maximum of 24 months. Now they’re looking to set into law only two options: 6 or 12 months. That’s one of the 30 suggestions Arcep has listed for the industry. Among others are operators having to detail how much of their monthly bill goes towards paying off your handset. Imagine if this happened in the United States?

Think at what would happen if America’s four largest operators could lock you in for only 6 or 12 months and that they’d have to tell you how much of your bill goes towards your handset. People who have devices for longer than 1 year should, by law, get a discount on their bill since their device is already paid off. People who want to buy a SIM card and supply their own device (only possible with AT&T and T-Mobile since they use the GSM standard) should also have a lower bill compared to those who opt to pay for their handset over the term of their contract. People who are having trouble deciding between a smartphone or a feature phone can finally begin to appreciate the differences in monthly payments that actually go toward cellular service.

It would be a dream come true if the same rules traveled across the pond, but it isn’t going to happen. Europe already enjoys things such as free incoming calls and text messages, better service, and cheaper mobile broadband, so why then would the CFO of Verizon Wireless not hire an army of lobbyists to shoot down any potential new legislation that may be passed? Money talks.

[Via: The Connexion]

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