Citizens Utility Board Urges Consumers, Companies to Cut Cell Phone Rates

Following Verizon Wireless' announcement in October that it would refund customers $53 million in unnecessary charges, the Citizens Utility Board (CUB) has come out with a report assessing Illinois' wireless industry.

The study found that cell phone users could save around $360 a year by identifying billing errors, cutting down on the number of available minutes, and not paying extra for cell phone insurance or roadside assistance.

Bryan McDaniel, a senior policy analyst with CUB, said high wireless rates are costing Champaign residents more than $13 million a year. Across the state he said it is much higher at just under a billion dollars. McDaniel said trimming cell phone bills could help the state's sluggish economy, as businesses struggle to stay afloat.

"If we didn't give that $13 million to the cell phone companies, and instead to local businesses and mom and pop shops, that'd be a good thing for our economy," McDaniel said. "Unfortunately every month, we're throwing away money to these cell phone companies when we don't need to be."

According to the report, the wireless industry should start providing more flexible plans, so that people are not deadlocked into paying extra for features that they do not want.

"Allow people to have 150 minute plans," McDaniel said. "I can't tell you the number of seniors I've talked to who just want a simple 100 minute plan that they can't get anymore."

McDaniel added that consumers also have a responsibility to trim their cell phone rates. He explained that they can visit Cellphone Saver, a free online service that allows users to upload an online copy of their wireless bills - AT&T, Verizon, Sprint, T-Mobile, and U.S. Cellular. Within a few seconds, the website spits out an analysis showing consumers how to cut their costs. The study used the web service to track data from August 2009 though July 2010.

(Photo courtesy of Major Clanger/flickr)