TracFone Wireless
From Wikipedia, the free encyclopedia
TracFone Wireless or TracFone is a wireless provider, subsidiary of América Móvil, that provides prepaid wireless service in the United States.
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[edit] Service
TracFone provides two types of services. The standard TracFone service and a service under a secondary brand, Net 10.
[edit] TracFone
The service allows a customer to buy airtime units to use on selected phones by Nokia, LG 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 Wireless, T-Mobile, US Cellular, and Verizon Wireless networks, among others (such as Sprint and Alltel).
TracFone requires the customer to "activate" a cell phone prior to use. Activation consists of calling into the TracFone Hotline number or going onto the TracFone website and entering programing code directly into the phone or by using the OTA feature (Thru Radio Waves provided by the customer local tower). The customer redeems units by entering a validation code directly into the cell phone or by using the OTA feature (Over the Air) on the prepaid menu, also know as the Redeem Airtime option. 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 Motorola C139 models to open the received message. 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. [1]
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. With GSM phones if the number is lost the customer will need to be sent a new SIM card (this is free of charge but the customer will have to wait 3-5 days).
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 90 (previously 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 could refer their friends to TracFone in order to get free airtime units. Moreover, TracFone has attracted some customers by promoting price-comparison, as well as its pre-pay service structure.
Note: The Refer-A-Friend program was pulled on 9/30/06, to be improved [1], this program continues to be unavailable.
[edit] Net 10
Net10 Wireless or simply Net10, a mobile virtual network operator, is a wireless offering prepaid GSM wireless service in the United States. Net10 uses Cingular, T-Mobile and other GSM carriers. The service allows a customer to buy air time units to use on the mobile phone at 10 cents/minute in increments of 150 ($15), 300 ($30), and 600 ($60) minute prepaid cards. The minutes expire rather fast for a prepaid, and it forces the user to "top off" more. This is used to offset the low per minute rate. The service is provided by TracFone Wireless, which is a subsidiary of wireless provider América Móvil.
[edit] TracFone Customer Service Issues and Other Problems
In contrast to the popularity of the TracFone service, there have also been some complaints regarding TracFone's customer service practices, 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, Belize and the Philippines. TracFone's main goal is to perform a one call resolution.
On 2/9/07, a preliminary settlement in a class-action lawsuit against TracFone was approved in the Boone (County) Circuit Court in Kentucky[3]. There is a case settlement Web site that certain TracFone owners can use to file a claim to receive a portion of the settlement.
[edit] Bulk-Buying Loophole and TracFone Legal Actions
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. Despite the lock on the handset, the transferable calling credits and battery are often worth twice the purchase price of the phone itself.
In February 2006, TracFone began suing one large bulk reseller, Sol Wireless Group, on the basis of a claimed DMCA violation [4]. The lawsuit was later settled, and Sol Wireless Group was ordered by the U.S. Federal District Court in Miami to not perform any further "unlocking" of TracFone cell phones [5].
In December 2006, TracFone filed a lawsuit against the United States Copyright Office and others, to protest a decision by the Copyright Office to allow United States consumers to "unlock" their cell phones[6].
[edit] TracFone-Related Terrorism Allegations
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 [7].
[edit] External links
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| Major network operators | |
| Alltel · AT&T Mobility (Cingular) · Sprint Nextel · T-Mobile · Verizon Wireless | |
| Minor and regional network operators | |
| Cellular One · Cellular South · Centennial Wireless · Cincinnati Bell Wireless · Cricket Communications · Edge Wireless · MetroPCS · nTelos · Revol · SouthernLINC Wireless · SunCom · U.S. Cellular · Unicel | |
| Mobile virtual network operator | |
| 7-Eleven Speak Out Wireless · Amp'd Mobile · BeyondMobile · Boost Mobile · Disney Mobile · Hawaiian Telcom · Helio · Jitterbug Wireless · Jump Mobile · Kajeet · Net10 Wireless · Qwest Wireless · TracFone · Virgin Mobile · XE Mobile | |
