Gathering storm

“I think I feel a change in the winds,” said Mr. Gibbs to Captain Jack Sparrow.
Ditto for the wireless industry.
Wireless carriers and their lobbying organization, CTIA, have a steep challenge ahead of them as sentiment for the status quo in wireless comes under fire.
-Locked handsets: Under fire.
-Early termination fees: Under fire
-Two-year contracts: Under fire
-Legislation that would launch a wireless users’ bill of rights: Under way. (Talk about your bad publicity: We’re so rotten to our customers that Congress needs to step in.)
Despite its short-lived gaffe in lowering iPhone prices too quickly, much to the chagrin of its loyal fans, Apple is leading carrier partner AT&T Mobility in iPhone sales by an 8:1 margin. (And no one is complaining that Apple is a proprietary system even as those same groups scream for carriers to open up access on their networks-a double standard indeed.)
Either wireless carriers and CTIA can educate Congress and their customers about why handsets are locked, why they charge ETFs and why they need two years to offset the subsidies they gave customers to lure them to become customers in the first place-or they can change their practices.
Let’s take a closer look: Consumers today can already buy handsets without two-year contracts. Start publicizing that. Consumers can get their handsets unlocked to take them to a competitor-but not everything (and in some cases nothing beyond voice) is going to work. This is America and different carriers chose different technologies. Publicize that. Follow Verizon Wireless’ example in pro-rating early termination fees. It’s good business. Besides, your customers are likely more locked into your network based on their circle of free in-network calling and family plans more so than any contract.
Acquiesce on those things or face state-by-state regulation-50 different sets of rules in 50 states-which will be more costly than any cost per customer acquisition.