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Revision as of 00:14, 1 February 2006 editJohn Broughton (talk | contribs)Extended confirmed users, New page reviewers, Pending changes reviewers, Rollbackers35,691 edits Added information on company and Wirefly complaints← Previous edit Revision as of 22:26, 17 February 2006 edit undo12.28.190.6 (talk) added additional details about rebate submission windowNext edit →
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'''InPhonic Inc''' (]: INPC) is a company that sells wireless services and devices ], both through its e-commerce site Wirefly and through private labeled websites it creates and manages for online ]ers. Partners include brands such as ], Cognigen, and AOLMobile.com and others, which sell ]s and cell phone service plans from major carriers like ], ], ], and others. InPhonic recently sold its ], or MVNO, called Liberty Wireless. '''InPhonic Inc''' (]: INPC) is a company that sells wireless services and devices ], both through its e-commerce site Wirefly and through private labeled websites it creates and manages for online ]ers. Partners include brands such as ], Cognigen, and AOLMobile.com and others, which sell ]s and cell phone service plans from major carriers like ], ], ], and others. In 2005, InPhonic sold its ], or MVNO, called Liberty Wireless.


The wireless company, founded and headed by David Steinberg, went public in November 2004. The board of directors includes such notable names as would-be VP ] and ] (formerly of ] and ]). ] listed InPhonic as one of its Top 25 companies in 2004. The wireless company, founded and headed by David Steinberg, went public in November 2004. The board of directors includes such notable names as would-be VP ] and ] (formerly of ] and ]). ] listed InPhonic as the #1 company of 2004.


The company is headquartered in ] and maintains technology and operations centers in ], ] and ]. The company is headquartered in ] and maintains technology and operations centers in ], ] and ].


In addition to Wirefly, InPhonic operates some 6,000 other private label cell phone sales Web sites, according to company spokesman Tripp Donnelly. The firm said in early 2006 that it was the largest third-party online cell phone retailer in the US, accounting for one-third of the market, and that it sold 850,000 cell phones in 2005. The company's Wirefly site has received a number of Internet awards, including ]'s Best of the Web for 2004. In addition to Wirefly, InPhonic operates some 6,000 other private label cell phone sales Web sites, according to company spokesman Tripp Donnelly. The firm said in early 2006 that it was the largest third-party online cell phone retailer in the US, accounting for one-third of the market, and that it sold 850,000 cell phones in 2005 alone. The company's Wirefly site has received a number of Internet awards, including ]'s Best of the Web for 2004.


==Wireless Activations Business Model==
==Complaints about Wirefly==


Wirefly.com became popular for its aggressive pricing strategy, which includes "free cell phones after rebate" or discounts worth several hundred dollars. The terms of the rebates however require the customer to wait 180 days after activation, but no more than 210 days, to file the rebate. This unusual rebate model stems from the fact that the carriers will not pay a commission on a customer who does not maintain service for six months. This strict requirement has fueled outrage among a small but very vocal group of customers who are calling for the regulation of rebate incentives by electronics manufacturers and retailers.
"Free" cell phone purchases at Wirefly.com include an unusual requirement to get the rebate: the rebate application can't be filed until 180 days after purchase. Submitting the rebate application either before 180 days or after 210 days means that the purchaser is no longer eligible for a rebate. After (properly) submitting the rebate request, the rebate then takes another 10 to 12 weeks to arrive.


Between 2003 and 2005, 1,500 people filed complaints about InPhonic with the ] charging that the company had falsly denied their rebate claims worth up to several hundred dollars in some cases. As a result, in November 2005, InPhonic's BBB membership was revoked.
There have been numerous complaints that Wirefly isn't following even its own already-unusual rules. Consumers accuse the firm of deliberately frustrating their attempts to get rebates; the company responds that complainers are a loud minority of its customers.

InPhonics is one of the most complained-about companies at the Washington, D.C., ]. More than 1,400 people filed complaints about InPhonics in the 2003-2005 period. In November 2005, InPhonic's BBB membership was revoked.




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Revision as of 22:26, 17 February 2006

InPhonic Inc (NASDAQ: INPC) is a company that sells wireless services and devices online, both through its e-commerce site Wirefly and through private labeled websites it creates and manages for online retailers. Partners include brands such as Radio Shack, Cognigen, and AOLMobile.com and others, which sell wireless phones and cell phone service plans from major carriers like Verizon Wireless, Cingular, T-Mobile, and others. In 2005, InPhonic sold its mobile virtual network operator, or MVNO, called Liberty Wireless.

The wireless company, founded and headed by David Steinberg, went public in November 2004. The board of directors includes such notable names as would-be VP Jack Kemp and John Sculley (formerly of Pepsi Co and Apple). Inc Magazine listed InPhonic as the #1 company of 2004.

The company is headquartered in Washington, D.C. and maintains technology and operations centers in Largo, Maryland, Long Island City, New York and Reston, Virginia.

In addition to Wirefly, InPhonic operates some 6,000 other private label cell phone sales Web sites, according to company spokesman Tripp Donnelly. The firm said in early 2006 that it was the largest third-party online cell phone retailer in the US, accounting for one-third of the market, and that it sold 850,000 cell phones in 2005 alone. The company's Wirefly site has received a number of Internet awards, including Forbes magazine's Best of the Web for 2004.

Wireless Activations Business Model

Wirefly.com became popular for its aggressive pricing strategy, which includes "free cell phones after rebate" or discounts worth several hundred dollars. The terms of the rebates however require the customer to wait 180 days after activation, but no more than 210 days, to file the rebate. This unusual rebate model stems from the fact that the carriers will not pay a commission on a customer who does not maintain service for six months. This strict requirement has fueled outrage among a small but very vocal group of customers who are calling for the regulation of rebate incentives by electronics manufacturers and retailers.

Between 2003 and 2005, 1,500 people filed complaints about InPhonic with the Better Business Bureau charging that the company had falsly denied their rebate claims worth up to several hundred dollars in some cases. As a result, in November 2005, InPhonic's BBB membership was revoked.


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