WKRN, Nashville, Tennessee News, Weather, and Sports |Gov't looks to regulate cell phone industry

Gov't looks to regulate cell phone industry

NASHVILLE, Tenn. - Almost everyone has a cell phone and almost all cell phone users have, at one point, been frustrated about their service, contract or bill.

Over the last decade, the price of cell phones has dropped and so has the cost of service.

Despite that, the cell phone industry remains a billion dollar business and at the end of the day, it's the cell phone companies winning big with consumers having little say.

Business owner Victor Ashurov knows all to well of the "small print" cell phone contracts have and how fast a bill can add up.

"We went over the minutes and each extra minute is like 45 cents.  If you add it up, they're trying to charge me $385 extra," he told News 2.

According to the Better Business Bureau, one of the biggest problems is the cell phone contract.

"A contract is always written in the favor of the person who writes the contract," said spokesperson Kathleen Calligan.  "Consumers have no idea what is behind the contract they're signing."

Ashurov said he didn't know about the 45 cent per minute overage charges he'd incur but admits he didn't read the contract.

George Hanna owns Gold Star Communications, which has sells cellular plans, phones and accessories and has several area locations.

He told News 2 its contracts' fine print that is turning more and more people away from the major carriers and opting for pay as you go plans.

"People loose their job and they can't afford to pay the phone bill, now they have to come up with the phone bill plus the penalty," Hanna explained, adding that sometimes the penalties can be as much as $500.

According to the BBB, customers aren't the only ones frustrated with cell companies.

Many European and Asian countries have stepped in to regulate their cellular industries and now the U.S. is taking note.

"Government is very interested in more regulation for this industry," said Calligan.

Tactics used to get you to spend more money have the interest of lawmakers.

Voicemail, for example, is a way for customers to use more minutes, increasing their bill.

Despite the government's increased interest, consumer advocates say it's time consumers fight back and demand change.