# Satellite Legislation - A need for reform!



## shocky (Oct 23, 2007)

Currently that Satellite industry has very few laws that give consumers protection.

Under laws that apply to cellular phones, if you purchase a phone and suddenly they raise your rates you have the opportunity to get out of contract without an ETF. It's my belief that satellite companies should be held to the same standards. If they want to raise rates they should be forced to wait until your current contract expires or risk losing you as a customer mid-contract.

I wrote my house member (who is also a member of the subcommittee for internet & communication) and he agreed to discuss the topic at the next meeting.

I'm encouraging everyone to do the same. It's simple, it's easy and it's all online:

https://writerep.house.gov/writerep/welcome.shtml


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## Justin23 (Jan 11, 2008)

What about folks that are in contracts with cable companies (becoming more common now)....do they get let out of their contract without an ETF?


J


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## njblackberry (Dec 29, 2007)

Great - more legislation to solve a business issue.


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## Drew2k (Aug 16, 2006)

@OP: I'm not sure if you're aware that with DIRECTV, if you are in the first two years of your contract and DIRECTV raises rates, you are grandfathered in to your existing rates until you've met your contract requirements, and only then do your rates go up. So in this lite, there is no need for legislation, because by the time your rates change you have met your obligations and can walk away with no ETF.


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## shocky (Oct 23, 2007)

Justin23 said:


> What about folks that are in contracts with cable companies (becoming more common now)....do they get let out of their contract without an ETF?
> 
> J


If they increase prices while under a contract they should. This nature of contract should be for a fixed price. It's not fair that you have to pay an ETF fee and your only recourse is to pay an ETF fee to cancel (which can be over $750 ie. DirecTV).

But in this proposal it would be just like the cellular companies. You have to cancel within 30 days of the price increase. You can't decide 3 months down the road you don't want the service any more and expect no ETF.


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## shocky (Oct 23, 2007)

Drew2k said:


> @OP: I'm not sure if you're aware that with DIRECTV, if you are in the first two years of your contract and DIRECTV raises rates, you are grandfathered in to your existing rates until you've met your contract requirements, and only then do your rates go up. So in this lite, there is no need for legislation, because by the time your rates change you have met your obligations and can walk away with no ETF.


Drew2k. DirecTV has raised my rates twice since I signed up about 15 months ago. They don't follow there own rules.

Correction:

I signed up on:
10/27/2007 with a 2 year contract.

My Plus HD DVR has gone from 69.99 to 72.99 to 75.99 during this period.

I've had two price increases during this time. DirecTV can currently do whatever they want and all the consumer can do is deal with it.


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## paulman182 (Aug 4, 2006)

Drew2k said:


> @OP: I'm not sure if you're aware that with DIRECTV, if you are in the first two years of your contract and DIRECTV raises rates, you are grandfathered in to your existing rates until you've met your contract requirements, and only then do your rates go up. So in this lite, there is no need for legislation, because by the time your rates change you have met your obligations and can walk away with no ETF.


I don't believe this is true. Due to equipment additions I've extended my contract several times so I've been under contract for about three years, with another year to go, and I have certainly not been immune to rate increases.


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## kokishin (Sep 30, 2006)

Can you point to Directv documentation that supports this?



Drew2k said:


> @OP: I'm not sure if you're aware that with DIRECTV, if you are in the first two years of your contract and DIRECTV raises rates, you are grandfathered in to your existing rates until you've met your contract requirements, and only then do your rates go up. So in this lite, there is no need for legislation, because by the time your rates change you have met your obligations and can walk away with no ETF.


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## Drew2k (Aug 16, 2006)

I only know this anecdotally, from posts here and from friends and family who signed up with DIRECTV. When DIRECTV raised rates in March, they were permitted to keep their initial rate until they met their commitment, then the rates changed to what was then current.


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## chevyguy559 (Sep 19, 2008)

I'm pretty sure DirecTV only guarantees your price for a year....for example, I started with DirecTV in Nov 2008, and starting with my April bill (after the price increased on Premier to 109.99), I am getting a $5 per month credit that is a "Price Guaratee Credit" and it ends in Oct 2009


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## shocky (Oct 23, 2007)

chevyguy559 said:


> I'm pretty sure DirecTV only guarantees your price for a year....for example, I started with DirecTV in Nov 2008, and starting with my April bill (after the price increased on Premier to 109.99), I am getting a $5 per month credit that is a "Price Guaratee Credit" and it ends in Oct 2009


I called DirecTV and they told me the price guarantee is only a promotion that they run from time to time. This from the retentions/cancellation department.


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## jclewter79 (Jan 8, 2008)

Current deal for D* is 12 month price garantee with a 24 month contract. I agree with ya there Drew2k, this is the way it SHOULD but, it is not.


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## James Long (Apr 17, 2003)

It would be nice if it worked that way but it is usually only a few dollars difference. The prices don't go up much from year to year.

The introductory prices that are (occasionally) guaranteed by DirecTV are usually lower than the regular price ... which makes a price guarantee more useful. DISH generally offers $$$ off for a few months as a promotion ... although they do have some deeper discounts trying to gain customers that are being sucked in by DirecTV and cable's low introductory rates.

If I were DISH I'd advertise the cost of the packages comparing the average over the contract term. But that sort of comparison is complicated. Plus one has to actually buy advertising (and not just the "free" ads on their own system).

BTW: I hate it when government regulates something that the market should take care of itself. It just leads to less discounts and higher prices because the companies have to think ahead to what they need to charge next year. Left alone the market can sort most of this stuff out. Get the government involved when monopolies are abusing their customers ... not for nit noy price increases.


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## Shades228 (Mar 18, 2008)

DirecTV never guarantees a price however usually with price increases they will give courtesy credits for a set time for people who signed up recently.

These 2 business's have less then more in common and therefor will not be regulated the same way.


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## Ken S (Feb 13, 2007)

Drew2k said:


> I only know this anecdotally, from posts here and from friends and family who signed up with DIRECTV. When DIRECTV raised rates in March, they were permitted to keep their initial rate until they met their commitment, then the rates changed to what was then current.


Drew,

Sometimes DirecTV will do a 1-year price lock for new subscribers (generally around Christmas), but I don't recall them ever offering a 2-year price guarantee. They have the right to change any and all terms of the agreement during the term (this is what is going to eventually get them in trouble).

Another poster brought up the cable companies. At least for the few commitments I've see they generally are in place for the length of a discount they've given. So, if you are getting $50 off a month for 2 years and quit after 1 year they generally require that you pay back the $50 discount as an ETF.


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