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Wireless Industry Responds To FCC Iquiry On Insane Bills
Will they ultimately volunteer to mimic new EU bill cap model?
by Karl Bode Friday 14-May-2010 tags: prices · business · consumers · wireless
As we noted earlier this week, the FCC has launched in inquiry into why we continually see story after story (some involving smart individuals) suddenly facing ridiculous wireless broadband bills of $10,000, $20,000 or higher.

Of course it's a multi-sided situation, involving a combination of lazy or confused customers and complicated (and often amoral) billing practices that create bills that don't even remotely reflect the real cost of the provided service. It's clear that consumers could pay closer attention to their contract. It's also clear that carriers could do a much better job educating/alerting customers when bills get out of hand.

One of the proposals being looked at by the FCC mirrors a recent new European Union rule. It requires that carriers allow users to cap the maximum amount they'd like to spend each month. Users are then notified at 85% of total usage, then the account is temporarily suspended when the limit is reached. If the user doesn't pick a cap, a cap of $68 a month (data only) is automatically set for them.

Wireless carriers obviously don't want new FCC rules on this front, so the wireless industry very quickly worked to bring attention to the usage and billing tools they already offer (though it's clear they aren't working for many). The wireless industry's chief lobbying organization, the CTIA, issued a statement saying they were "looking forward to educating the commission" on all the existing tools they give users to check their balances and usage.

Click for full size
The CTIA blog also posted a list of carrier codes that allow users to check their balances:

AT&T

• *BAL# (*225#) and “Send” = Check your balance
• *MIN# (*646#) and “Send” = Check your minutes
• *DATA# (*3282#) and “Send” = Check remaining data usage (including text, pictures/videos and Internet)
• *NEW# (*639#) and “Send” = Check your upgrade eligibility
• *PAY (*729) and “Send” = Make a payment

SouthernLINC Wireless

• #BAL and “Send” = Check your balance (prepaid customers)
• #ADD and “Send” = Add talk time (prepaid customers)
• #MIN and "Send" = Check your minutes in the current billing period (contract/postpaid customers)
• #PAY and "Send" = Make a payment (contract/postpaid customers)

The industry strives to serve and provide all of our 285 million customers with the necessary tools to have a positive experience.
-CTIA
Sprint Nextel

• *2 and “Send” = Check your usage, balance and to find your nearest Sprint store
• *3 and “Send” = Make a payment
• *4 and “Send” = Check your minutes

T-Mobile

• #MSG# (#674#) and “Send” = Check how many text messages sent and received and how many remaining
• #MIN# (#646#) and “Send” = Check your minutes used and when your billing period ends
• #BAL# (#225#) and “Send” = Check your current balance and date last payment was received

U.S. Cellular

• #BAL (#225) and “Send” = Check unbilled minutes, mobile to mobile minutes and text messages

Verizon Wireless

• #BAL and “Send” = Check your balance
• #MIN and “Send” = Check your minutes
• #PMT and “Send” = Make a payment
• #DATA and “Send” = Check text and picture count and data usage
• *611 and “Send” = Access account information


Again though, many consumers simply don't understand what a gigabyte or megabyte of data even is -- so they may need additional help, be that simpler billing models or systems that better alert users before a bill goes apocalyptic. Of course none of the carriers want to lose their right to rip off confused customers by charging them ridiculous amounts of money for services rendered -- so they so far haven't volunteered to embrace the EU proposal of allowing users to cap usage. Those voluntary changes might arrive down the line should they think the FCC is truly interested in passing regulation.

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dabigman

join:2002-07-16
Brooklyn, NY

Need this European Union rule here.

Wireless companies are praying on us. Yes, we should read the contracts we sign, but this is ridiculous. How long beofre ISPs start charging for usage overages?

i1me2ao
Premium
join:2001-03-03
TEXAS

Re: Need this European Union rule here.

no one can read the contracts. i have seen countless lawyers on tv explaining this. so how and the hell am i suppose to read it if lawyers cant understand the dam thing.
--
calling a illegal alien undocumented is like calling a drug dealer a undocumented pharmacist
chronoss2009
Premium
join:2008-09-23
kudos:2
well your stupid hten arent you , do yo still have the services?
if as i said you all just QUIT using these htings that are capped, thorttled , userbase billed and OVER billing gouged hten they will be FORCED to compete with lower pricing

ESPECIALLY NOW that they have millions of you and are used ot that cash
imagine if next month 20 million people canceled internet in north america
another 30 million dropped cell phone uses
thats HUGE bucks and they cant keep raising rates
they are at limit now
anymore and poof it just drops more people off
and as the massive margins drop there NOT UPGRADE the network schemes to make shareholders RICHis gonna fail.

Companies that upgraded will have to LURE people back wiht lower rates and UNLIMITED net.

USE YOUR POWER
QUIT WHINING

Thomas9

@pacbell.net

approval from:
Bubba Rock See Profile

Re: Need this European Union rule here.

I am not quite sure who is being stupid here. If I cancel my wireless service, all that has happened, is that I will no longer have any wireless service, which would make me unemployed, since I rely on it for my job. All the damage, that I did to the phone company is $50 per month. I don't think the phone company would care too much. If I had the power to cancle the service of 20 milion people, then that would be a different story, but unfortunately I do not have that power. This is where the governement has to come in. In a perfect market with plenty of competition, the government may not have to regulate, but when there is only minimal competition, regulation is essential.

SLD
Premium
join:2002-04-17
San Francisco, CA
said by chronoss2009:

well your stupid hten arent you
•htings
•userbase
•hten
•north america
•thats HUGE bucks
•there NOT UPGRADE the network schemes
•RICHis gonna fail.
Hmmm....

Transmaster
Don't Blame Me I Voted For Bill and Opus

join:2001-06-20
Cheyenne, WY

Re: Need this European Union rule here.

said by SLD:

said by chronoss2009:

well your stupid hten arent you
•htings
•userbase
•hten
•north america
•thats HUGE bucks
•there NOT UPGRADE the network schemes
•RICHis gonna fail.
Hmmm....
This is what happens when you get used to using the microscopic key boards on smart phones.
--
I am quite sure now that often, very often, in matters concerning religion and politics a man's reasoning powers are not above the monkey's.
- Mark Twain in Eruption
old_wiz_60

join:2005-06-03
Bedford, MA
Reviews:
·Verizon FiOS
Rates are nowhere near any limit right now. If anything, rates will continue to increase.

There's no way any significant number of people will stop using their cell phones/internet; it is too deeply ingrained. Way too many people have simply disconnected their landlines and gone cell only.
gorehound

join:2009-06-19
Portland, ME
most of us would have no issues with their phones but to some a cell phone might be hard to use.or maybe to some they do not understand to check their balance.
not all of us are really smart and bright and quick it is a big world out there.
no one should have to get a bill in the thousands of dollars like i have read.there should be a way to cap your account.

i1me2ao
Premium
join:2001-03-03
TEXAS

Re: Need this European Union rule here.

hey if visa can call me when i went 10 cents over the limit the dam phone company should a t least text me when my bill hits triple digits. f&^*(*(ing verizon texts me three times a month before bill is due to tell me i need to pay bill..
--
calling a illegal alien undocumented is like calling a drug dealer a undocumented pharmacist
talz13

join:2006-03-15
Avon, OH

Re: Need this European Union rule here.

said by i1me2ao:

hey if visa can call me when i went 10 cents over the limit the dam phone company should a t least text me when my bill hits triple digits. f&^*(*(ing verizon texts me three times a month before bill is due to tell me i need to pay bill..
I completely agree. My GF's family plan on Verizon was going over on minutes the last couple months, and I could not, for the life of me, find a way to set up any kind of alert that you were approaching the limit or are over your minutes for the month. There was some kind of service that they offer for that, but it said that it would notify the customer "a few times a year". What good is that?!?

battleop

join:2005-09-28
00000
The problem is that when you travel to another country the telephone company in that country isn't updating your phone company in real time on your usage. They charge you an insane amount of money for your data usage but it may be sometime before the charges are sent to your country. Due to roaming agreements in these countries your carrier has to pay up or the shady 3rd world phone company will likely terminate the agreement and service for the rest of your provider's customers.

heat84
Bit Torrent Apologist

join:2004-03-11
Fort Lauderdale, FL

2 edits
said by dabigman:

Wireless companies are praying on us. Yes, we should read the contracts we sign, but this is ridiculous. How long beofre ISPs start charging for usage overages?
You mean preying.
said by i1me2ao:

no one can read the contracts. i have seen countless lawyers on tv explaining this. so how and the hell am i suppose to read it if lawyers cant understand the dam thing.
You mean damned.
--
Bit Torrent is my DVR.
sedu

join:2002-01-10
Freeland, MD

Price of Unlimited Data Plan Should be the Cap

Answer is very simple. Data charges should be capped at whatever the price of unlimited data is for the respective carrier.

Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
join:2002-03-03
USA
kudos:4

Re: Price of Unlimited Data Plan Should be the Cap

said by sedu:

Answer is very simple. Data charges should be capped at whatever the price of unlimited data is for the respective carrier.
What about cell carriers that don't have an unlimited plan?
--
Are you happy with your rep in Washington, DC?
talz13

join:2006-03-15
Avon, OH

Re: Price of Unlimited Data Plan Should be the Cap

said by Romney2012:

said by sedu:

Answer is very simple. Data charges should be capped at whatever the price of unlimited data is for the respective carrier.
What about cell carriers that don't have an unlimited plan?
Then, at the point you cross over the usage amount you are paying for, you can pay for the next increment of data usage. If they have a 25MB plan, a 250MB plan, and a 5GB plan, then those are what you should pay for. Bam, max overage charge you could get would be at most $50/month (I'm just assuming that that's the most a company can charge for 5GB data plan, no, I didn't actually go check each carrier)

And if they REALLY don't want people going over that 5GB, then start dropping the customers or disabling the data service that they are "using too much"

Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
join:2002-03-03
USA
kudos:4

3 edits

Roaming outside US would still be a problem

Roaming charges from foreign countries(often the most outrageous of the overcharges) would appear to NOT be addressed by EU like rules due to charges not coming in real time and often weeks later.

Any one know how the EU handles roaming charges from countries not part of the EU?

So far, I see nothing in the EU rules that deals with massive charges for when an EU cell user leaves the EU and roams in countries outside the EU.
»www.euractiv.com/en/infosociety/···s-299561
The ceiling only affects European customers travelling in other EU countries and not those travelling outside the bloc.
--
Are you happy with your rep in Washington, DC?

NOCMan
MacChatter
Premium
join:2004-09-30
Colorado Springs, CO

No Protections from Megacharges

None of that protects customers from 20,000 dollar bills from using international data.

MovieLover76

join:2009-09-11
kudos:1

Re: No Protections from Megacharges

maybe if they didn't lock down our phone and let us put in a prepaid sim card overseas those problems wouldn't be so bad?

Crazy idea I know

FBGuy
yippee ki yay
Premium
join:2005-03-19
Reviews:
·Comcast
·T-Mobile US
·AT&T U-Verse

Re: No Protections from Megacharges

said by MovieLover76:

maybe if they didn't lock down our phone and let us put in a prepaid sim card overseas those problems wouldn't be so bad?

Crazy idea I know
that is the price you pay for a discounted phone. stop buying the phone at the lower price(by signing the 2yr contract) and you will/should get an unlocked phone. Another protip: don't buy the phone from the carrier.
--
sbcglobal.net speedtest result 11/11/09 - 5256kbps
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

Re: No Protections from Megacharges

said by FBGuy:

said by MovieLover76:

maybe if they didn't lock down our phone and let us put in a prepaid sim card overseas those problems wouldn't be so bad?

Crazy idea I know
that is the price you pay for a discounted phone. stop buying the phone at the lower price(by signing the 2yr contract) and you will/should get an unlocked phone. Another protip: don't buy the phone from the carrier.
Even if you pay full-price for a phone you pay the same "subsidized" price as people on contract. It's an illegal extortion game played by the carriers that the FCC is to spineless to stop.

FBGuy
yippee ki yay
Premium
join:2005-03-19
Reviews:
·Comcast
·T-Mobile US
·AT&T U-Verse

Re: No Protections from Megacharges

said by sonicmerlin:

said by FBGuy:

said by MovieLover76:

maybe if they didn't lock down our phone and let us put in a prepaid sim card overseas those problems wouldn't be so bad?

Crazy idea I know
that is the price you pay for a discounted phone. stop buying the phone at the lower price(by signing the 2yr contract) and you will/should get an unlocked phone. Another protip: don't buy the phone from the carrier.
Even if you pay full-price for a phone you pay the same "subsidized" price as people on contract. It's an illegal extortion game played by the carriers that the FCC is to spineless to stop.
Not with t-mobile you don't. But your right. the monthly fee should be significantly less if you bring your own device to a carrier.
--
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MovieLover76

join:2009-09-11
kudos:1
Reviews:
·Verizon FiOS
·DIRECTV
·Optimum Online
·Cablevision
It's very hard and way too confusing to get a unlocked phone in the US.
If your not with T-mobile or AT&T, it's a real pain and don't dream of going into a store for support with a unlocked phone they didn't sell you, they will pass the buck immediately
The cards are stacked against US consumers in every way possible to make using unlocked phone difficult
And that's how US carriers want it.

Do we share some of the blame for loving our discounted phones, yes we do, but I don't see why you can't be locked into a 2 year agreement, with the price difference between the unsubsidized phone and subsidized version being the ETF and still have an unlocked phone for cases such as overseas usage.

FBGuy
yippee ki yay
Premium
join:2005-03-19
Reviews:
·Comcast
·T-Mobile US
·AT&T U-Verse

Re: No Protections from Megacharges

said by MovieLover76:

It's very hard and way too confusing to get a unlocked phone in the US.
If your not with T-mobile or AT&T, it's a real pain and don't dream of going into a store for support with a unlocked phone they didn't sell you, they will pass the buck immediately
The cards are stacked against US consumers in every way possible to make using unlocked phone difficult
And that's how US carriers want it.

Do we share some of the blame for loving our discounted phones, yes we do, but I don't see why you can't be locked into a 2 year agreement, with the price difference between the unsubsidized phone and subsidized version being the ETF and still have an unlocked phone for cases such as overseas usage.
I skip the store at all costs unless it is service related. If I have a problem with my phone I go straight to the Manufacturer. That is how product support works. I do it for my stove, washing machine, etc. No reason for me to go back to Home Depot after I have completed the transaction.
--
sbcglobal.net speedtest result 11/11/09 - 5256kbps

Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
join:2002-03-03
USA
kudos:4

For US roaming a deal should be done to limit overages

As long as you are roaming on US carriers(where presumably calling records and data records are updated quickly(usually within hours)), then a limit plan within technological capabilities should be instituted.

Verizon/Sprint and other CDMA carriers with roaming agreements could set up data sharing. Same with the GSM carriers AT&T, T-Mobile, etc.

But even then some roaming records could take a few hours to be transferred and archived in databases. What if a user blows past their limit(iPad 250 MB plan for $15 for example) before the data can be updated. Should they get off the hook?

One user had a good idea about just upping the user to the unlimited plan and not hitting them with overages. That would work on the iPad where the unlimited plan is $30. But what about vendors with NO unlimited data plans? Should they be forced to offer one? How much should the gov't interfere in contracts between customers and vendors?
--
Are you happy with your rep in Washington, DC?
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

Re: For US roaming a deal should be done to limit overages

said by Romney2012:

As long as you are roaming on US carriers(where presumably calling records and data records are updated quickly(usually within hours)), then a limit plan within technological capabilities should be instituted.

Verizon/Sprint and other CDMA carriers with roaming agreements could set up data sharing. Same with the GSM carriers AT&T, T-Mobile, etc.

But even then some roaming records could take a few hours to be transferred and archived in databases. What if a user blows past their limit(iPad 250 MB plan for $15 for example) before the data can be updated. Should they get off the hook?

One user had a good idea about just upping the user to the unlimited plan and not hitting them with overages. That would work on the iPad where the unlimited plan is $30. But what about vendors with NO unlimited data plans? Should they be forced to offer one? How much should the gov't interfere in contracts between customers and vendors?
Put in an arbitrary limit like the EU ($68). $60 sounds reasonable to me.

n2jtx

join:2001-01-13
Glen Head, NY
Reviews:
·Optimum Online

No Problem With It

I have no problem with notification at 85% and automatic account suspension when I hit my monthly limit. That would force me to take action to reactivate it for the remaining month, knowing I was going into high overage territory.

Of course the wireless carriers are against this because they have built overage costs into their business model and rely upon these charges to continue to float their businesses. Just like the banks counted on various high fees on debit card overages to fund their operations.
--
I support the right to keep and arm bears.

kpfx

join:2005-10-28
San Antonio, TX
Reviews:
·RoadRunner Cable

Why stop at data?

It really should be a standard requirement that these guys send a notice when my bill is abnormally high. Get an automated system setup to TXT, Email, or Robo-Call me when my monthly bill is something like 185% higher than normal...

Just needs to be something simple that says "Hey, you might want to check your account". Banks have been doing that for years for their customers as a guard against fraud.

But that's too easy and obvious. After seeing their resistance to self-regulate on something that simple, go follow the money trail. I'd like to see how much revenue these companies are bringing in on "overage" fees in general, and not just data.
NeoandGeo

join:2003-05-10
Harrison, TN

.

The only intelligent proper solution would be this:

When your overages match or exceed the next highest price plan, move the customer up to that, and inform them of the change.

Plain, simple and fair.
chronoss2009
Premium
join:2008-09-23
kudos:2

can you see the abuse

you get moved up to a plan without consent and it costs you more
i can see that happening especially if they think you can't or wont complain
NeoandGeo

join:2003-05-10
Harrison, TN

Re: can you see the abuse

If they only moved you up when you went over the next payment tier, there would be no room to complain.

Of course there will still be some who would complain, but complaining about this solution would be futile, since it is a fair tradeoff between company and consumer.
bugabuga

join:2004-06-10
Austin, TX

There is a solution :)

It's called "Prepaid". You know, when you give money one month in advance and once your balance is 0, your phone stops working. Shocking. Marketing department will die from the idea of not being able to exceed the advertised price!

Frankly it can be a better deal than contract these days. The only problem (kinda problem) is where prepaid carriers allow to roam. But that shouldn't be a problem soon too, as they seem to be expanding the roaming coverage areas...
--
Rants about life, politics, technology
b10010011
Whats a Posting tag?

join:2004-09-07
Bellingham, WA
Reviews:
·Comcast Formerl..

Never worked for me...

Verizon
• #BAL and “Send” = Check your balance
• #MIN and “Send” = Check your minutes
• #PMT and “Send” = Make a payment
• #DATA and “Send” = Check text and picture count and data usage
• *611 and “Send” = Access account information

Has been responding "Service not available" for years now...

So far Verizons responce has been to tell me "try again later".

tshirt
Premium,MVM
join:2004-07-11
Snohomish, WA
kudos:3
Reviews:
·Comcast

1 edit

Re: Never worked for me...

I'd say it isn't fair to the provider, that someone could CHOOSE the lowest level of service, and then be let off from paying for the cost of insane levels of usage.
The abuse of such a system would drive up the bills of everyone.
The user needs to understand his/her responsiblity for the bill (probably explained more clearly then the average celphone sales guy does)
Perhaps there should be a cooling off period of a few days (such as proposed for gun sales ) between when you sign the contract and when you get to use the phone, so you can ask YOUR parents/friends/attourneys/advisors to read the contract and help you UNDERSTAND the terms.
Always remember the salesperson (usually on commission) and the provider, make money based on YOUR usage, and may be inclined to tell you the good points, but gloss over the downside of any contract.
The world is always "buyer beware".
talz13

join:2006-03-15
Avon, OH

Re: Never worked for me...

said by tshirt:

I'd say it isn't fair to the provider, that someone could CHOOSE the lowest level of service, and then be let off from paying for the cost of insane levels of usage.
The abuse of such a system would drive up the bills of everyone.
The user needs to understand his/her responsiblity for the bill (probably explained more clearly then the average celphone sales guy does)
Perhaps there should be a cooling off period of a few days (such as proposed for gun sales ) between when you sign the contract and when you get to use the phone, so you can ask YOUR parents/friends/attourneys/advisors to read the contract and help you UNDERSTAND the terms.
Always remember the salesperson (usually on commission) and the provider, make money based on YOUR usage, and may be inclined to tell you the good points, but gloss over the downside of any contract.
The world is always "buyer beware".
You're right, that is much too close to "fair" usage-based billing for the corporation's comfort. They would really prefer that you pay much more for service that you might not use, rather than pay for basic service and only pay extra on the months that you actually use the service beyond the basic level.
Ulmo

join:2005-09-22
San Jose, CA
Reviews:
·SONIC.NET

Meaningful Regulations vs. Costly Regulations

A few meaningful regulations like the above European requirement (specifically being able to put an absolute limit on how much you spend) would allow the government to prettymuch eliminate a lot of other bill-related protections, because with that simple limit in place, most other issues will take care of themselves (but not all).

Furthermore, that is the only type of limit that makes sense: hard budgets set in advance. That's what I have with my phone carrier (T-Mobile). Any other types of "tools" are prettymuch useless, and shouldn't be considered to suffice.

What, are they trying to get rid of all the middle class people in USA and send them to Europe?

fdtruuip

@rr.com

Verizon wireless sucks

The idiots at Verizon were so bold as to advertise unlimited service but had a 5 GB limit. Thank God for the NY AG! If they lie about something that is so easy to catch, imagine what they do behind our backs.

The FCC needs to act. I got a $350 bill and I am technically literate. Imagine the majority of the population that has do clue and was sold a bill of goods by VZ.

P.S. When I went over, VZ sold me a 10GB package for that month.

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