Lloyd Overlock
never had much reason to think about his telephone. The 85-year-old Hermon resident just paid his bills and knew the service
was there if he needed it.
But Overlock,
who for five decades has been paying a monthly fee to lease his phone, found
out recently that the arrangement is a pricey, outmoded throwback to the days
of telephone industry monopoly.
"I don’t use it much; I
just sit here and wait for it to ring," he said Friday during a visit at
the cozy home he built himself and moved into back in 1952. That’s the same
year he got his telephone, a heavy, dark-gold contraption the size of a child’s
shoebox, with a solid-feeling finger dial. It hung on his kitchen wall all
those years — until last week, when his niece Roberta York was making one of
her frequent visits from her home in Millinocket.
"I said, ‘Uncle, what’s
this?’ And he said, ‘That’s for my telephone.’ That’s when I realized he was
still leasing his phone from AT&T," she said. "He got that phone
in 1952, and he’s paying $4.42 a month for it, every month."
Right away, she said, she
picked up the gold receiver and dialed the customer service number on the bill
to cancel the service. The friendly operator on the other end attempted to
dissuade her, offering her uncle a 20 percent discount off his monthly rental
fee and reminding
"She said that if
something goes wrong with that phone, they’d have a new one here the next
business day," she recalled. "I was thinking to myself, ‘If something
goes wrong with that phone, I’ll go to Wal-Mart and get one the next day.’ But
I didn’t say it." She just told the representative to cancel the lease,
and then she drove to a local dollar-discount store and bought her Uncle Lloyd
a new wall phone for $7. It plugged right in to the old connection and worked
like a charm.
"For some people, that
four dollars could mean a gallon of milk or a prescription or something to
eat," she said.
Wayne Jortner,
an attorney with the Maine Public Advocate’s Office, said Friday that Overlock’s situation is not unique. Before 1984, when a
federal court determined that AT&T’s lock on the nation’s telephone
industry constituted an illegal monopoly, most consumers were required to lease
their phones, he said. The forced restructuring of the industry included
opening up the manufacturing of telephones, and people began purchasing their
own instruments.
Now, leasing is rare. Most
people who still lease are elderly, according to Jortner,
and they keep making the monthly payments because they don’t realize they have
an alternative or perceive that alternative as being too complicated.
They also may be paying much
higher rates for phone service than they need to, as well as paying additional
service charges and fees that could be eliminated by choosing a different
service plan.
Jortner said a national settlement in 2003 against AT&T
based on its leasing program awarded $80 per phone to thousands of consumers
who had leased a telephone between 1984 and 1990.
The lease program is not
illegal, he said, but consumer advocates faulted the company for some of its
practices.
"The bottom line is,
it’s totally ridiculous to lease a phone when you can buy a better one for much
less money," Jortner said.
Attempts on Friday afternoon
to reach AT&T’s corporate headquarters in
Faye, the customer service
representative who eventually picked up, said "hundreds of thousands of
people" prefer to lease a phone, although the actual number was not
available. Charges vary depending on the telephone model and some other
options, but the basic cost of a rotary-dial phone like Overlook’s
gold-tone antique is $4.45 a month, she said. Customers are free to cancel
their lease at any time, and instructions for doing so are printed on each
month’s bill, she said.
On Friday, Overlock’s old telephone sat like a dull gold cinderblock
on the coffee table, its heavy plastic casing battered and the receiver grimy
from decades of use.
"We have five weeks to
send it back, or they’ll start billing him again with all the back
charges," she said.
According to Jortner, the mail-back requirement is nothing but "a
hurdle to customers trying to get the lease charge off their bills." The
phone itself is essentially without value, he said, but many senior citizens
will forget to put the package in the mail, or be unable to get to the post
office, or not understand that the envelope is prepaid.
Not a chance, said
Overlock, meanwhile, said he likes his new phone, a sleek,
silver touch-tone model that fills only a fraction of the space left by its
predecessor. He never has tried making a call using push-buttons instead of a
rotary dial, but figures he can get used to it.
He brightened when a test
call from a nearby cell phone filled his small home with the new phone’s shrill
ring — the first time he had heard it.
"Now, that’s quite a
phone," he said with a smile.