Does a No-Contract Cell Phone Service for Seniors Really Exist? Yes, and It is Even Better Than You Think

Last week we caught up with CEO of Consumer Cellular John Marick, who talked about the company's now-nationwide service offering: no contract cell phone service intended for the low-usage cell phone user, such as seniors. The firm went from being a small cell phone service reseller in the Northwest to becoming a national provider. The following points are key to their offering:

• Exclusive wireless provider for AARP members. Following their success with the AAA automotive club business, in September, 2008, Consumer Cellular became a preferred provider for the AARP membership, giving them access to AARP’s more than 40 million senior members in the 50+ age bracket. The offering included AARP discounts on service and accessories. Now, no surprise, 80% of the reseller’s customers fall into that age range.
• No contract cell phone service, with emphasis on the "service." CEO Marick is proud of the firm’s service orientation, saying that the company's goal was to "make a product that people were satisfied with." Their focus is on service—and they are willing to be called. This would seem obvious in other industries, but in the wireless business, with contract-based providers like Verizon and AT&T, users are oddly penalized with early termination charges.*
• Ability to reset plans before the end of the month. Rates run from $9.50 per month for non-users who carry the phone for emergencies, up to $57 per month for 1600 minutes. Up until the end of the billing cycle, users can change plans if their usage goes over the estimated amount. Above the limits, the firm charges 10¢ per minute. If usage goes way over, the customer service staff contacts the customer and encourages him or her to find another plan.
• Senior-friendly and hearing aid-compatible phones. Marick indicates that the Nokia and Motorola phones will be augmented by new models that are similar to their best-selling Nokia 6085, with bigger buttons and bigger screens. This includes making sure the handsets are hearing aid-compatible with good ring tones—and working with manufacturers to provide even more senior-friendly handsets in the future.
• Baby-boomer ready. "We are trying to balance the needs of the marketplace today, but also plan for the future, says Marick. This means thinking about phones that baby boomers will want that can support them as they age, perhaps incorporating touch screens, voice activation, and ease of use. On Consumer Cellular's radar, phones with additional services like content, e-mail, and other apps. Continues Marick: "as baby boomers get into the 65+ category, people will not be afraid of technology—they will want a product that will be useful to them as they age."

Author's note: * However, according to Consumer Reports, you should know that the large carriers are changing their practices: "In apparent response to the legal and regulatory action, all the carriers have stopped automatically extending contracts when consumers make changes to their service plan. And now all but Alltel reduce early-termination fees of $175 to $200 as the contract term progresses."

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