In what almost seemed like a staged publicity stunt, Verizon Wireless quickly rescinded their plans for a new $2 fee for most bill payment options. An employee leaked an internal memo describing the new fee, and within twenty-four hours, the wireless company both confirmed and then rescinded the fee, citing their policy of listening to their customers. The timing was convenient; Verizon Wireless had been suffering from a number of mobile service outages that had customers complaining about the company.

It seemed to me there was more outrage about the service interruptions than the $2 fee. The fee was addressed within 24 hours while the service outages were never properly addressed. Would a company stoop to creating its own fake conflict in order to distract customers from other problems?

Real customer outrage is powerful, however. Bank of America’s $5 monthly debit card fee was in the works when massive consumer feedback was successful in convincing the company to reconsider its plans, and find revenue from consumers elsewhere.

There are issues more important than these small fees. While fees here and there can have a snowball effect, both over time and across other companies happy to charge the same fees once success is apparent, the bigger issues often don’t get as much attention. Wells Fargo’s change of policy to include mandatory binding arbitration is a much bigger problem for consumers than a fee, but since it isn’t immediately apparent how this could affect customers, people stay silent. Customers who have trouble with the bank will be prevented from availing themselves of a court process that includes discovery and appeals.

Most of the time, binding arbitration clauses won’t have any immediate effect on customers’ wallets unlike monthly fees, but the consequences could be worse. With enough outrage, Wells Fargo would likely change these plans, but the issue is not getting enough attention.

Here are some of this week’s most interesting articles in addition to a few articles I’ve published elsewhere. Read the full article →

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I have been looking forward to replacing my Blackberry 8830 World Edition for several months now. The phone, even with ample extended memory, is sluggish and does not have the same capabilities other modern phones have.

With the release of the Motorola Droid, I decided this was a good opportunity to upgrade. On my way home from work on Friday I stopped by the Verizon Wireless store, confirmed I was happy with the phone, and walked out of the store with my purchase including some accessories.

It was an expensive evening, but I’m happy with the purchase so far. The good news is I’ll be paying less per month for a while. But here’s a breakdown of what it would cost to own a Motorola Droid on Verizon Wireless.

The first thing you will notice is the price of the phone. If you start or re-start a two-year contract with Verizon Wireless, the phone costs $299.99 with a $100 rebate available. If you buy the phone in person, you will have to send in your receipt to receive the rebate in the form of a debit card, but if you buy the phone online, the rebate is instant. I also had my “New Every Two” rebate, reducing my cost by $50.

The phone comes with a regular charger but if you want a car charger, Verizon sells the necessary micro USB charger for $29.99 in the store but you can find less expensive options are available on Amazon.com. Verizon also wants you to buy a multimedia docking station. I did not find this necessary, but I did buy the car mount, $29.99 at the store. The navigation features on the Droid rival the best GPS devices, and the car mount makes those features convenient.

The cheapest monthly plan at Verizon Wireless is $39.99 for unlimited nighttime and weekend minutes and 450 anytime (any other time) minutes, but any “smartphone” requires a data plan in addition to the voice plan, so you’ll pay another $29.99. At this time, using the cell phone as a computer modem is not supported on the Droid. I did have “tethering” with the BlackBerry, so I will be saving $30 per month by canceling this feature until Verizon offers it on the Droid early next year.

Verizon Wireless wants to ensure that Droid users don’t abandon the network before the end of their contract. Phones are sold at a loss by the company with the expectation that they will make back the cost of the phone, and profit, through monthly fees. Full retail price of the phone is $559.99. To protect itself further, and to encourage customers to purchase sooner rather than later, on November 15 Verizon will be doubling the early termination fee on for Droid purchasers to $350 from $175. This fee drops by $10 every month of the contract, but it is still a gutsy move when early termination fees have already been judged illegal in California.

Total cost of owning a Motorola Droid on Verizon Wireless

Assuming you don’t go over your minute allowance, here is what buying a Droid could cost you.

You’ll pay more if you want more accessories, like the multimedia dock or a Bluetooth headset. Many of the applications you can install on the phone require a small fee, and some, like the visual voicemail app, disappointingly carry a monthly charge. However, Google Voice is a good, free option, and it integrates seamlessly with the Droid. There are many other useful apps that are free.

So far I like the Droid. It is a major improvement over the BlackBerry 8830. For those who like AT&T, check out the true cost of the iPhone 3G.

Photo credit: allaboutgeorge

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