TracFone Wireless

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TracFone Wireless or TracFone is a wireless provider that provides prepaid wireless service. The service allows a customer to buy airtime units to use on by Nokia and Motorola pursuant to a licensing agreement. TracFone sells digital cell phone models, although analog phones were available at one time. Depending on the customer region, TracFone service works in either a GSM, TDMA, or CDMA network. TracFone does not build its own wireless network but "resells" wireless service from more than 30 providers, as a mobile virtual network operator. In the United States, TracFone operates on the Cingular, T-Mobile, US Cellular, and Verizon networks, among others

TracFone requires the customer to "activate" a cell phone prior to use. Activation consists of purchasing units of available airtime. The customer redeems units by entering a validation code directly into the cell phone. A single unit roughly equates to one minute of telephone airtime. Receiving SMS text messages is free on the Nokia 1100, 2600, 3390, Motorola V170, C155 but costs 0.3 units on newer GSM models. Sending SMS text messages costs 0.3 units on all GSM models. Sending or receiving SMS text messages costs .5 units on TDMA and CDMA phones.

Additionally, a customer is required to repeatedly purchase additional units after "activating" the phone, in order to keep the service active. The schedule of these repeated purchases will vary depending on the purchase price of airtime units. If a customer does not add airtime prior to the due date that is displayed on the handset, the service, the TracFone phone number, and any remaining units are lost. If service is reactivated within 60 days, the customer retains existing units on the handset.

The phones, airtime units, and accessories are available for purchase at various stores around the United States and online at the TracFone website. Airtime units are usually sold through cards that come in denominations of 60 (USD$19.99), 120 ($29.99), 250 ($49.99), and 400 ($79.99) airtime minutes which extend the active service by 60 days. There is also a card for 250 minutes + 1 year of active service ($99.99), and another that provides 400 minutes + 1 year active service during which period minutes from other cards are doubled (e.g. a 100 minute card provides 200 minutes service, $129.99). Under some circumstances, customers may also use special 'Promotion codes', that allow extra units on airtime purchases.

The TracFone service has enjoyed popularity among some customers, partially because of the Refer-A-Friend program, whereby existing customers can refer their friends to TracFone in order to get free airtime units. Program was pulled on 9/30/06 to be improved [1] Moreover, TracFone has attracted some customers by promoting price-comparison, as well as its pre-pay service structure.

In contrast to the popularity of the TracFone service, there have also been some complaints as well. Example complaint reports can be found at Consumer Affairs regarding the quality of the product, the limitations of the service, and the business practices of the company. [2]

Tracfone Customer Service is currently being outsourced to several companies in Latin-American countries, such as Argentina, Bolivia, Honduras, Colombia and Belize[citation needed]. Customers report that recent calls to customer service have also been routed to a call center in the Philippines.

[edit] Bulk-buying loophole and terrorism allegations

For several years Tracfone has had the problem of its heavily subsidized handsets being bought and resold in bulk. In a common practice handsets are bought in large quantities, the airtime is legally harvested by removing the SIM card and the handsets are sold to bulk resellers. The bulk reseller can sell the parts such as the battery and charger legally, but may be committing an illegal act if they manipulate the internal software and "unlock" the handset.

The practice has become so widespread that Tracfone has attempted to place additional exclusive locking software on its handsets last year, and in February 2006 Tracfone began suing one large bulk reseller, Sol Wireless Group, on the basis of a claimed DMCA violation. [3]

Despite the lock on the handset, the transferable calling credits and battery are often worth twice the purchase price.

In early August 2006, during a heightened level of fear over the UK Bombing plot and a particularly favorable promotion by Tracfone, a group of young Arab American men from Michigan who were buying TracFone phones in bulk were arrested in Ohio. A group of Palestinian-American men from Texas were arrested in Michigan a few days later, and authorities discovered nearly 1,000 cellular phones in their van. Although both groups indicated they were reselling the phones for profit, police arrested them for suspicion of terrorist activities. After determining there was no basis for suspicion of terrorism, the FBI pulled out of the cases. Local prosecutors announced that they also had no basis for terrorism charges and dropped plans to prosecute within days. [4]

[edit] See also

Other prepaid wireless service providers are:

[edit] External links


American mobile phone companies
Alltel | Centennial Wireless | Cincinnati Bell Wireless | Cingular Wireless | Cricket Communications | Dobson Cellular | Edge Wireless | MetroPCS | nTelos | Plateau Wireless | Revol | SouthernLINC Wireless | Sprint Nextel | SunCom | T-Mobile | U.S. Cellular | Unicel | Verizon Wireless | Viaero
Mobile Virtual Network Operators (MVNO)s: 7-Eleven Wireless | Amp'd Mobile | Boost Mobile | Disney Mobile | Hawaiian Telcom | Helio | Jitterbug Wireless | Jump Mobile | Mobile ESPN | Net10 Wireless | Qwest Wireless | Simple Freedom | TracFone | Virgin Mobile | XE Mobile
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