Cellular Phone Industry Challenges

The CAN-De Fund recognizes and provides solutions to these business challenges.

Up to 40% of potential cellular phone customers in the U.S. do not qualify for service without a deposit.
Many prospective customers are wary of signing a contract and committing themselves to one or more years of phone service.
Reps advertise free activations which the customer pays up front and is later reimbursed. The reimbursement process may take weeks or months, causing customer frustration and a feeling of product misrepresentation.
Currently, co-op dollars (ranging from $10 - $35) are granted to dealers based on activations for the sole purpose of advertising. These monies are paid 60 to 90 days after substantial paperwork has been completed and filed by the dealer based on proof of performance through invoices; if advertising mistakes occurred, the carrier will not pay.
Advertised mail-in rebates offered to lure customers to stores may take at least 8-10 weeks to receive after being sent; these rebates are only granted if the required paperwork has are no mistakes or if it was not lost in the mail.
Customers prefer to port their same mobile number from one company to another customer when they are not satisfied with their current carrier. Customers are still bound by contract and may be charged a penalty fee ranging from $150 - $250, regardless of their valid reasons for dissatisfaction.
Changes within the industry are extremely slow and may be affected by mergers. Although national ad and TV campaigns are immediate, customers may see no consistency between TV advertisements and dealer location offers. This inconsistency impacts the dealers' business and creates confusion for the customer. Changes can take up to a year due to the slow appropriation of funds to dealers from the carriers.