Here’s a silly question. How many of you out there are confused by your phone bills?
Okay, I can hear the laughter out there now, but let me ask you, why do you think they’re so confusing? Certainly they don’t have to be. Most people simply dismiss this fact and say, “Everyone has to deal with it” (That’s right, but not everybody does, more on that later)
If you were to ask a telephone company exec (and trust me, because I used to be one) why do you make the bills so confusing, a pat answer might be that “the complexity of your bill is directly in alignment with the various features, add-ons, ancilary charges and most agregiously – those darn taxes we HAVE to charge you from the goverment!” Not bad as I think that is what I was asked years ago in an interview.
According to a recent study by Gartner Group, a leading information technology research and advisory company, when it comes to telephone and data bills, an estimated $13 billion in overcharges will be generated in the next 12 months and less than 2% of these telephone billing errors will ever be identified.
Take for instance the new Motorola phone that Verizon is rolling out called the Droid running Google’s Android operating system. Many industry pundits have labeled it everything from the next best thing in smartphones to an outright iPhone killer. It will cost subscribers a competitive $199 for the phone if you sign a 2-year contract, and add a MANDATORY $30 unlimited data plan. In my mind, unlimited means just that, “all you can eat”, but in Verizon’s vernacular unlimited means a cap of 5 GB or 5,120 MB per month.
The ability for you to “tether” an external device like a laptop is an aspect of your smart phone that some people have started to use to be able to be connected where Wi-Fi might not be available. If you’d like to use that feature, guess what? Verizon’s going to charge you more, add an additional $30 more PLUS the required $30 before ABOVE your “normal” wireless plan AND still with the extra $30 (which they call unlimited) is capped at 10GB per month.
In addition to that, Verizon isn’t stopping there with the upcharges. It also announced that as of November 15 the early termination fee will be double just for high-end devices like smartphones (read- the Droid phone). Users who cancel out of the agreement before the two years are up can expect a $350 bill.
Head spinning yet? Well hang on. On your $30 “unlimited” 5GB maximum usage plan, it’s okay for any traffic just as long as it doesn’t come from a Microsoft Exchange server, because that will cost you $45 per month instead.
Also on the third Friday of each month with an “r” in it, your data plan only works 3/4 of the time but you can use it as much as you like – okay, I just made that one up but I couldn’t resist.
This is just policy for ONE phone, think about your organization with hundreds of wireless devices. We see companies that have “rogue” phones that add and change aspects of their data plan and make it a nightmare to manage. Additionally, companies also leave language in your contracts that allow them to change these terms at ANY time. If you’re concerned about managing your telecom costs, this is where an audit can identify and help reel in your costs, because believe me the phone companies aren’t going to help make it any easier for you ANYTIME soon.
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[...] Last week I mentioned that Verizon has decided to not only create unnecessary complexity for their customers by changing their service offerings by doubling early-termination fees, and complicating their data plans. It seems that New York Times Technology columnist David Pogue also agrees. [...]