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You are here: Home / Economics / Free Markets Solve Everything / Today in Wild West Cell Providers

Today in Wild West Cell Providers

by $8 blue check mistermix|  October 17, 20117:19 am| 24 Comments

This post is in: Free Markets Solve Everything

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After 18 months of negotiation, wireless providers will be required to send alerts when customers are exceeding their monthly limits:

A 2010 study by the F.C.C. found that one in six mobile device users had experienced bill shock, with 23 percent of those users facing unexpected charges of $100 or more. Aseparate F.C.C. report noted that 20 percent of the bill shock complaints it received during the first half of 2010 were for $1,000 or more in overage charges. Expensive charges can also be incurred for roaming, when a user travels out of a company’s defined area of coverage or, as often occurs, when traveling overseas.

One person had an $18,000 bill when his promotional no-limit plan expired without warning.  Of course, the alternative of simply capping wireless rates at some maximum would stifle innovation and cause the four company free market in wireless telecom to collapse.

If you’re a Verizon Wireless subscriber, you’ll need to opt out of their new monitoring and tracking program, otherwise they’ll track the URLs you visit on your browser, the apps that you run and your location, and sell it to whomever they choose.

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Reader Interactions

24Comments

  1. 1.

    Raven (formerly stuckinred)

    October 17, 2011 at 7:33 am

    I was amazed Verizon actually sent me an email telling me they wanted to do that! Many people will probably just ignore it.

  2. 2.

    arguingwithsignposts

    October 17, 2011 at 7:36 am

    @Raven (formerly stuckinred): I got the e-mail a day after reading about it on Twitter and tech sites and opting out. You’re right. Most people will ignore it. Hope your foot’s feeling better.

    ETA: “After 18 months of negotiation,” WTF? If any further example is needed for regulation, here it is.

  3. 3.

    Raven (formerly stuckinred)

    October 17, 2011 at 7:39 am

    Harry Belafonte coming up on Mornin Joe, that should be interesting.

  4. 4.

    Raven (formerly stuckinred)

    October 17, 2011 at 7:40 am

    @arguingwithsignposts: May have to have it xrayed I guess, it’s deep purple bbut does’t hurt that much.

    thx

  5. 5.

    Mark S.

    October 17, 2011 at 7:47 am

    @Raven (formerly stuckinred):

    I wonder if he’ll have anything to say about Hermann Cain.

  6. 6.

    Raven (formerly stuckinred)

    October 17, 2011 at 7:53 am

    @Mark S.: He doesn’t usually hold back. I suppose it depends on why he’s invited, I suspect it’s about the MLK Memorial Dedication and they might stick to that.

  7. 7.

    Samara Morgan

    October 17, 2011 at 7:55 am

    frictionless sharing!
    its whats for dinner.

  8. 8.

    jeffreyw

    October 17, 2011 at 7:56 am

    I clicked through all those links and told them no in all three places. That 2d para stayed well hidden until I thought to click on the header and found the radio button. Sneaky bastards. I have a phone number for my Mifi hotspot, that’s how they bill for the usage plan, but it isn’t a phone. It’s a 3g modem/wifi hotspot.

  9. 9.

    Raven (formerly stuckinred)

    October 17, 2011 at 7:57 am

    @jeffreyw: Yea, my iPad has a phone number too.

  10. 10.

    magurakurin

    October 17, 2011 at 8:01 am

    People here in Japan have gotten giant bills like that after their kids went wild on Internet use or they themselves did. I don’t know of any law that has been passed, but that doesn’t mean there isn’t. I did, however, find out that my cell phone company, AU, now has a deal with the Internet usage on their smart phones that made a lot of sense to me. You can get unlimited usage for 5000 yen a month or you can choose a cheaper plan for 2800 or something that gives you a set amount of “packet” downloads. If you go over your limit the max they will charge is 5900. So, basically they switch you to the unlimited plan when you go over and charge you an extra 10 bucks. It seemed smart to me. Charging people 18grand for a monthly bill really isn’t a good long term business model in my mind. I don’t know if my companies plan is the result of legislation or not.

  11. 11.

    Raven (formerly stuckinred)

    October 17, 2011 at 8:04 am

    I have read that verizon is going to offer a family data plan but haven’t seen it yet. We are considering iPhones when our V contract expires in December but aren’t too sure about Sprint or ATT.

  12. 12.

    Skepticat

    October 17, 2011 at 8:05 am

    I opted out with Verizon immediately, but they made the process onerous.

  13. 13.

    Peter

    October 17, 2011 at 8:06 am

    Even ignoring such silly concerns as fairness and warning, it blows my mind that cell companies are allowed to so egregiously overcharge for their services. Are they really going to argue that the cost ofthem providing a month’s unlimited data and phone usage is anywhere near 18000 dollars? If they are, that means that with a three-month promotional plan, they’re going down 44K, in the hopes of locking the customer into a 100 a month tops monthly bill? Doesn’t pass the laugh test.

  14. 14.

    amk

    October 17, 2011 at 8:12 am

    Another Obama admin move that will get him branded as ‘corporatist in bed with wallstreet’ by the pl & firebaggers?

    OT- Is the formatting in this post all effed up ?

  15. 15.

    boss bitch

    October 17, 2011 at 8:30 am

    @Raven (formerly stuckinred):

    . I suppose it depends on why he’s invited, I suspect it’s about the MLK Memorial Dedication and they might stick to that.

    MLK,Jr. was Black so either ‘disappointment in Obama’ or ‘what do you think of Herman Cain?’ topics will come up.

  16. 16.

    batgirl

    October 17, 2011 at 8:35 am

    @Raven (formerly stuckinred)

    He’s got a new autobiography out so he’s making the rounds promoting it.

  17. 17.

    HeartlandLiberal

    October 17, 2011 at 8:44 am

    My first thought after reading this was to email the link to my former colleagues in IT, and to the compliance coordinator (Athletics at a major mid-western university).

    A lot of the high profile coaches use Verizon. How special to know that info on their phone calls to recruits will part of Verizon selling their stuff to any and everyone.

    It appears that not only is privacy dead in this nation, but any since of ethical business behavior is pretty much DOA, too.

    If anyone at Sprint has half a brain, this would be a golden opportunity for advertising to attract customers, by promising NOT to do this kind of thing.

  18. 18.

    Walker

    October 17, 2011 at 9:09 am

    Cell networks are the new railroads. Robber barons living off unregulated monopolies, and using different “gauges” (network formats) to prevent customers from switching.

  19. 19.

    EdTheRed

    October 17, 2011 at 9:45 am

    Hmmm, when I log into that Verizon Wireless page to opt out, under “Location Privacy Settings,” all I get is a message saying:

    There are no services available. A location service must be downloaded on the handset to be listed here.

    Ummm, yeah, so what does that have to do with them selling the websites I visit? And how can I opt out of *that*?

  20. 20.

    burnspbesq

    October 17, 2011 at 10:31 am

    Wait a sec.

    How does a promotional feature “expire without warning?” Answer: it doesn’t. The service agreement specifies when promotional features expire, and as a general rule people should know and understand the contracts they sign.

    If you want to argue that there should have been a reminder, argue away, and I will probably agree. That case can be made without making shit up, ignoring the actual facts however.

  21. 21.

    dcdl

    October 17, 2011 at 11:40 am

    Thanks for the heads up about Verizon.

  22. 22.

    gaz

    October 17, 2011 at 1:28 pm

    Go prepaid. It’s less expensive, flat rate, no surprises, no obligations.

    Straight Talk for example: $45/mo unlimited voice, text, internet. Flat rate, month to month, no contract.

    There are around half a dozen of these providers. Anybody who is paying on a contract for their phone (and not getting a flat rate/unmetered service) IS PAYING TOO MUCH. It’s that simple. The numbers do not lie. See for yourself.

  23. 23.

    John Weiss

    October 17, 2011 at 2:01 pm

    Who the hell needs a cell phone? I don’t and never have.

  24. 24.

    Catpause

    October 17, 2011 at 5:30 pm

    FYI, kiddo’s, ATT is already doing this for their data service. Funny thing about that. Being either obsessive or compulsive (I don’t know which!) I regularly reset my data counter on my phone each month on the first day of my billing cycle. Last month I got a notice that I had exceeded my data allowance. My phone showed I still had 25% of my data left. 25% difference!
    Poor ATT. Math is hard! I feel sorry for folks with devices that don’t keep track of data I/0. I also anticipate the next iOS update to kill my data counter.

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