The report also found that consumers have paid $4.6 billion over the last 3 years due to the penalties-- that's $2.5 billion in actual penalties paid and $2.1 billion in lost benefits from consumers who either couldn't afford the penalty or didn't think it was worth paying.

The cell phone industry is highly concentrated. After the recent Nextel/Sprint merger, just four firms control 80% of the market. The report shows how this oligopoly traps its customers by locking them into their 2-year plans with punitive ETF penalties-- you need to pay $150-240 to get out. Worse, when you complain, you are often told "OK we'll fix that or upgrade you, but only if you extend another 2 years. Or, you can pay the penalty."

We've recently filed comments against a petition by the cell phone industry to eliminate state laws regulating these unfair penalties. We've also filed comments on a proposed FCC Truth In Billing rule. These are discussed here. In March, MASSPIRG released a major report on cell phone bills of rights, "Can You Hear Us Now?"

Consumers need strong truth in billing rights and they need to be rid of the burden of ETFs-- which allow the cell phone companies to treat us with impunity. And of course, dealing with the companies is like dealing with space aliens. I can relate. I'm trying to resolve a billing dispute (over my minutes? NOT) with my own cell phone company-- it claims that I am not on the plan that the store where I bought the plan and I both know is the plan I am on-- even the store can't get it resolved. I'll send them a copy of "Locked In A Cell."