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$54,000 Cell Phone Bill
Misadventures in fine print
(old news - 09:07PM Wednesday Dec 26 2007)
tags: prices · bandwidth · world · Oddities
Tipped by h4x0r3d See Profile

Just last week a Canadian man thought he could use his mobile phone as a modem and received a whopping $85,000 phone bill for failing to read the fine print (or because the company failed to make their charges easily understood). This week it's a factory worker in the UK getting hammered by tethering surcharges, resulting in a $54,000 bill.
Ian signed up for a Vodafone Anytime 800 contract and added a [$15] inclusive internet deal to let him use his phone for surfing the net. But his first bill had hundreds of extra charges for online use - some at [$35] a minute. He said: "My mate told me how to wire my mobile to my laptop as a modem. It meant I could download faster than on the handset and get a proper internet connection in my flat. "I probably downloaded 20 or 30 TV shows and four albums. I assumed it'd be OK, but they cut me off. I rang up and they said I owed them nearly [$60,000].
His $82 mobile phone plan didn't include unlimited web use and comes with a 120MB monthly cap. "We will try to come to some sympathetic arrangement," says Vodafone -- "and we hope he won't make the same mistake again."

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Forums » $54,000 Cell Phone Bill
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Oleg
Bellsouth Fastaccess
Premium
join:2003-12-08
Birmingham, AL


edit:
December 26th, @09:15PM

Re: $54,000 Cell Phone Bill

WOW another Dial-Up user
He must be out in the woods,but still he could of just gone with ISDN i never ever even would think about using my cellphone as Dial-Up modem unless it's real emergency.

hurleyp

join:2000-06-20
Ottawa, ON

Re: $54,000 Cell Phone Bill

Sheesh! I wonder how long it will take for someone to break the $100K barrier?
--
"I reject your reality and substitute my own."
zahir

join:2007-09-28

Re: $54,000 Cell Phone Bill

said by hurleyp See Profile :

Sheesh! I wonder how long it will take for someone to break the $100K barrier?
Err...lets just wait...maybe next week
JoelC707

join:2002-07-09
Tucson, AZ
clubs:

When you have absolutely nothing else to turn to it can be useful. For example Nextel offers the same ability but instead of having a usage cap it just utilizes your cell minutes (you pay $15 a month for the data plan that has this option though). I used it many times in 2004 to 2006 but haven't used it recently. In every case I used it, it was because I was unable to connect via any other means (or those methods were more expensive).

In 04 I used it in Texas and even though we had a landline I never could find any local numbers for Bellsouth or Mindspring/Earthlink so I used my cell then. In Florida after Hurricane Wilma I was down there with my dad and neighbors helping clean up and we were living out of our trucks in a Walmart parking lot due to all the hotels were full, I used my cell then to keep in touch. I've also used it while on the road (another person driving) and needed to check on something or I was bored and wanted to find something to entertain myself with (and the driver and other passengers as well, hey as long as it isn't something the other driver has to see it is fine).

I'll admit the speeds were less than stellar though. I saw speeds on par with a 28.8 or 33.6 modem on average though in theory it could go up to 64K I think. I've since switched over to the Sprint side of the house. I now have a better phone that supports EVDO and can download at broadband like speeds. I've never been able to do a speed test but it loads web pages just as fast as my 8 meg Comcast connection so it's good enough for me. Plus the new phone supports bluetooth and USB so I can more easily use it as a modem tho I don't have that feature enabled yet.

entropy1
Premium
join:2002-09-25

Re: $54,000 Cell Phone Bill

Nextel is part of Sprint now and Sprint has an unlimited PAM plan that's reasonable.
patcat88

join:2002-04-05
Jamaica, NY

said by Oleg See Profile :

WOW another Dial-Up user
He must be out in the woods,but still he could of just gone with ISDN i never ever even would think about using my cellphone as Dial-Up modem unless it's real emergency.
ISDN has been discontinued/grandfathered and detariffed in alot of areas. The detariffing means the state/govt doesn't see it as a service anymore, and can not regulate it, also it means it is not universally avaible/provider of last resort as POTS is anymore.

UKER

@globix.net
ISDN is no longer available in the UK for residential customers and possibly business customers as well.

PhoenixDown
-- Ron Paul 2008 --
Premium
join:2003-06-08
Fresh Meadows, NY
clubs:

Fraud Alert

Every time I see an issue like this, I ask the same question: Why wasn't this caught by their fraud department and the customer notified before it reached the 54k mark?

TK Junk Mail
Go ahead, make my day
Premium
join:2002-03-03
Margate City, NJ
clubs:
·Comcast

Re: Fraud Alert

said by PhoenixDown See Profile :

Every time I see an issue like this, I ask the same question: Why wasn't this caught by their fraud department and the customer notified before it reached the 54k mark?
Because he ran it up so fast that the accounting systems didn't catch it quick enough.
Vodafone added last night: "The intensity of Ian's downloading was such that by the time our systems flagged anything up he had already racked up a massive bill.

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Joe12345678

join:2003-07-22
Des Plaines, IL

Re: Fraud Alert

why is not a data cap on the pay buy the bite plan and if you hit it they give you a call to ask if is ok with you to keep billing you at that rate.

TK Junk Mail
Go ahead, make my day
Premium
join:2002-03-03
Margate City, NJ
clubs:
·Comcast

Re: Fraud Alert

said by Joe12345678 See Profile :

why is not a data cap on the pay buy the bite plan and if you hit it they give you a call to ask if is ok with you to keep billing you at that rate.
Because they don't have any REAL TIME systems in place to do that for cell phone systems unlike some cable systems that automatically send a config file to a cable modem when a cap is exceeded. Cellphone billing is almost always a backroom daily or weekly batch process. And in a day you can run up a massive bill very quickly. And they did call him as soon as the batch system processed his call records.

If these kinds of occurrences become more frequent, I'd bet all cellphone companies will implement REAL TIME systems similar to those cable companies with hard caps.
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Ignite
Premium,VIP
join:2004-03-18
UK
clubs:
·BlueYonder Interne..
·Be There
·UK Online

Re: Fraud Alert

said by TK Junk Mail See Profile :

said by Joe12345678 See Profile :

why is not a data cap on the pay buy the bite plan and if you hit it they give you a call to ask if is ok with you to keep billing you at that rate.
Because they don't have any REAL TIME systems in place to do that for cell phone systems unlike some cable systems that automatically send a config file to a cable modem when a cap is exceeded. Cellphone billing is almost always a backroom daily or weekly batch process. And in a day you can run up a massive bill very quickly. And they did call him as soon as the batch system processed his call records.

If these kinds of occurrences become more frequent, I'd bet all cellphone companies will implement REAL TIME systems similar to those cable companies with hard caps.
My cell operator has real time billing systems. Recently had an exceptionally high month of use and part way through it they informed me I'd hit my credit limit and asked me to either make a payment or be restricted...
jvanbrecht

join:2007-01-08
Bowie, MD

All cell phone providers have realtime updates. Go use your phone on the internet and make a call, then 5 min later go hit up the carriers web site and view your up to date bill, it will list what you did 5 min prior. There is no issue with capping a cellphone either, as the plan is provisioned on the carrier side and requires no customer interaction or equipment other then his cellphone. Unlike cable, which by the way is no longer provisioned on the CPE (yes there is a config, no you can no longer remove the cap as that is done on the back end, and has been for the last 5 years).
After the cap is reached, the provisioning gets deactivated until the customer calls in. Not very hard.

The reason they do not, is financial, for the most part they make a good amount of money based on incidental overuse, and there is no reason for them to want this to stop. The last paragraph is me with my tinfoil hat, the rest is all real.
AquaBlaze
Premium
join:2004-02-02
Encino, CA

said by TK Junk Mail See Profile :

Because he ran it up so fast that the accounting systems didn't catch it quick enough.
It should be automated, or have a better implimentation. It should be pretty easy for a computer to detect a $60-80 monthly user somehow skyrocketing over $1k, disconnect & send an automated "do you really want a $1k+ bill?" notice, and just nip these ludicrous cell bills in the bud.

I mean, credit agencies operate similarly. If all you ever buy monthly is $300-400 in burgers and gas, suddenly dropping $10k at Home Depot would incur a similar automated shut-off.

RARPSL

join:1999-12-08
Suffern, NY

Re: Fraud Alert

said by AquaBlaze See Profile :

I mean, credit agencies operate similarly. If all you ever buy monthly is $300-400 in burgers and gas, suddenly dropping $10k at Home Depot would incur a similar automated shut-off.
There is a major difference in the credit card set-up. Every time you use your card, it is approved (to insure you do not go over the card limit). Thus there is active real-time tracking of the card usage and an alert can be triggered if the usage pattern changes even though the limit has not yet been reached. With Cell Phones, you have no "allowed to make another call" check but only an "not-allowed to make a call" check. The latter catches attempts to use a lost phone and disconnected account situations so active phones can make unlimited calls. Account Limits do not apply except for Pay-as-you-Go phones/accounts where an attempt to use the phone first checks if you have a credit left in your pre-paid account.

whatevrzclvr

join:2005-11-16
Rancho Cucamonga, CA
·Vonage
·DSL EXTREME
·Verizon Online DSL
·Charter Pipeline

Seriously! You would think that brand new accounts (I'm assuming he's brand new) would be monitored a little more closely.

Even if it's 100% customer error there was obviously a breakdown in communication. This isn't an insurance policy where you need to understand every word of an 18 page policy it's a cell phone and the terms should be clear enough that everyone understands (and I work in insurance, I don't understand every word of our policy). I'm sure that there are thousands of others who, though not to extreme, are surprised by their first bill.

This could be a PR nightmare or opportunity for Vodafone. It would be in everyone's best interest for Vodafone (or any wireless carrier) to take ownership of these things before they get out of hand. I wish him luck!
brawney
Premium
join:2002-03-02
Frederick, MD
·Verizon Online DSL


edit:
December 26th, @09:55PM

Re: Fraud Alert

said by whatevrzclvr See Profile :

This could be a PR nightmare or opportunity for Vodafone. It would be in everyone's best interest for Vodafone (or any wireless carrier) to take ownership of these things before they get out of hand. I wish him luck!
I agree. They need to make right on this. I know these users are clueless and are technically at fault, but this is so extreme that the company needs to cover the bill when this happens. The customer gets one chance to screw up like this. If they do it again then they have to pay the bill (or some percentage of the bill, then be terminated).
fiberguy
My views are my own.
Premium
join:2005-05-20

Re: Fraud Alert

How many people need to screw up before either:

1) People use and abuse it... knowingly.

2) People learn to read about their services and stop being idiots.

That picture of him holding up his bill makes me laugh.. if he's smart enough to figure out how to hook up and teather his computer then he should be smart enough to read.

In other words - he didn't read a thing... he just 'did'... Maybe he has a mortgage he can tap into.
neufuse

join:2006-12-06
Indiana, PA
·Comcast
·Verizon Online DSL

idiots...

I am getting so sick of these idiots that don't read their contract and take out plans not even knowing what they are getting and then complaining about oh boo hoo I got overcharged blah blah blah... it's their own fault they didn't understand their contract.... they took it out, they are responsible for it... yes there should be a stop limit you can hit billing wise but still these people are so stupid
patcat88

join:2002-04-05
Jamaica, NY

Re: idiots...

said by neufuse See Profile :

I am getting so sick of these idiots that don't read their contract and take out plans not even knowing what they are getting and then complaining about oh boo hoo I got overcharged blah blah blah... it's their own fault they didn't understand their contract.... they took it out, they are responsible for it... yes there should be a stop limit you can hit billing wise but still these people are so stupid
Solution would be that they have to fill out a grade/high school style written test about their contract and get a minimum score before they will be given service.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·Cox HSI
·AT&T Southwest


edit:
December 26th, @11:54PM

It's still retarded that the terms of these contracts can be that outrageous as to run up such a bill. Even if he downloaded 500GB the bill should never even be that high, ever. I mean, $35 a minute? No matter how fast his phone could download, there's NO WAY it should be able to get anywhere close to $35 a minute in fees.

That's simply crazy.

aaron8301
I can't get myself to go away.

join:2005-01-03
Clarkston, WA
·CableOne

Re: idiots...

said by KrK See Profile :

I mean, $35 a minute? No matter how fast his phone could download, there's NO WAY it should be able to get anywhere close to $35 a minute in fees.
I completely agree. I don't even think I've ever heard of a "call girl" charging that much for 60 seconds of "service", let alone a wireless provider!

atTT

@ameritech.net
have u ever read a contract? after a few pages i bet you will get bored/tired ans stop reading.

ipzedge2

@pacbell.net

thumbs down from:
Cabal See Profile

soon all this will end

I can't want until people can get around this kind of
rip off

ipzedge2

@pacbell.net

thumbs down from:
Cabal See Profile

this spring all this kind of rip off will stop
mhy

join:2000-08-25
Los Angeles, CA

Re: soon all this will end

Why is that? What happens?

ipzedge2

@pacbell.net

Re: soon all this will end

a company the has invented a new way of broadcasting cheep and fast internet one tower will reach 30 miles and the cost
for 1.5mb will be under $20 a month no contracts free hardward.
JimmySask

join:2004-06-24
Regina, SK

Re: soon all this will end

It isn't really new. The company I work for has been doing it for about 3 years now. It's not $20/mo though - and it won't be until there are enough subscribers on the service to cover the cost of it. Also, for a system like this, there is hardware outlay costs for the customer, or for the company, typically in the hundreds of dollars. It is essentially a satellite dish and a docsis modem.
--
I do whatever my Rice Krispies tell me too....

AnonProxy
Proxy of Anon
Premium
join:2001-05-12
ß
to start making people pay for their stupidity.
If you don't know that you can't do what you are doing, then don't buy or use the technology.

This is not a fine print issue.
sven_kirk3

join:2002-07-23
Mableton, GA

Got caught trying to cheat the system and trying to get something for free.

My mate told me how to wire my mobile to my laptop as a modem. It meant I could download faster than on the handset and get a proper internet connection in my flat. He didn't say free did he? If so, I got a nice bridge to sell you.

I assumed it'd be OK, but they cut me off Yet we would be screaming for privacy rights violations if they did.FTA
Vodafone added: "The intensity of Ian's downloading was such that by the time our systems flagged anything up he had already racked up a massive bill.


I probably downloaded 20 or 30 TV shows and four albums Woo hoo! I'll just further incriminate myself further, of possible, illegal actions. (Because my buddy said it wasn't illegal)

If you can not read AND understand your contract you signed, too bad.

BTW they do offer a internet access for pcs »www.vodafone.com.au/Business/Bus···ndex.htm
The plan sucks, but it exists.
BF69

join:2004-07-28
Camden, TN

"I probably downloaded 20 or 30 TV shows and four albums. I assumed it'd be OK,"

He was probably downloading those things illegally to boot. Of course he probably thinks that's ok too.

I swear about 75% f the people that get online today shouldn't be allowed to.
stridr69

join:2003-05-19
San Luis Obispo, CA

"His $82 mobile phone plan didn't include unlimited web use and comes with a 120MB monthly cap."
Only 120MB??!! I'd bust that in less than 1 day with my Sprint PowerVision plan-NFL TV anyone?

"Ian signed up for a Vodafone Anytime 800 contract and added a [$15] inclusive internet deal to let him use his phone for surfing the net." Well, $15.00 a month isn't bad-it's what I pay for Sprint's PowerVision. I also pay $19.00 a month for T-Mobile's data package(un-limited access, HotSpot access). And I can tether my T-Mobile MDA to my laptop and not pay a surcharge-granted it's only at "EDGE" speed, but better than nothing.

Ian, it seems to me your flatmate sent you "down the river".
Need to read your contract, dude. Looks like an appearance at "The Olde Bailey" for you, eh?

pfak
Premium
join:2002-12-29
Canada

Re: Wow!!!

Did you bother to read your cellphone contract?

i5050MbSoon
Formerly TwoKDialup
Premium
join:2002-06-07
Coloma, MI
So Ian downloaded 30 TV shows which works out to $1,800 per show. How can any company justify rates like that?

I'm glad I use Sprint while traveling!
BF69

join:2004-07-28
Camden, TN

Re: Sheesh!

said by i5050MbSoon See Profile :

So Ian downloaded 30 TV shows which works out to $1,800 per show. How can any company justify rates like that?

I'm glad I use Sprint while traveling!
There's no correlation between what he downloaded and the cost of his useage. Data is data to the ISP, Doesnt matter what kind of data it was. He probably didn't even pay for those shows anyways.
AquaBlaze
Premium
join:2004-02-02
Encino, CA

Re: Sheesh!

said by BF69 See Profile :

He probably didn't even pay for those shows anyways.
Er...do sites like YouTube ring a bell? Or the growing amount of video streaming sites? Just because someone's listening to music or watching video on the 'net, doesn't mean its 100% bootleg.

salterbomb

join:2003-10-18
League City, TX
·RoadRunner Cable

said by i5050MbSoon See Profile :

So Ian downloaded 30 TV shows which works out to $1,800 per show. How can any company justify rates like that?

I'm glad I use Sprint while traveling!
it's not by tv show but by amount of data. if each tv show was 400mb (and it's very easy to get it that way with HD), then it works out just fine. but it's about more than that.

it's about these MORONIC users who think they can do anything with their equipment and then turn to the internet to bail them out with sympathy. i'm sick of reading these stories like this guy and then the one before where the father was all up in tears about how a company shouldn't do this to his son. well his son is the one that caused it!

point is, read your agreements. if not then ask questions to the sales staff and get things in writing. don't just assume.

NOCMan
Verizon Fios User
Premium
join:2004-09-30
Flower Mound, TX

The user could only download at speeds less than a T1 and taking a wild guess for UK T1/E1 pricing it's probably in the range of 300-2000 dollars/pounds a month.

Data pricing on cell phones is completely out of whack and they charge it because people will pay it. It uses the same spectrum and equipment that the voice calls are on and their bandwidth charges are probably 1-2 cents per gig transferred.

I'd say get a lawyer and have them justify those prices.

Course admitting to downloading a few dozen tv shows might get you into other trouble.
--
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kruser
Premium
join:2002-06-01
Chesterfield, MO
clubs:
·AT&T Southwest

Re: It's a stupid price to pay.

said by NOCMan See Profile :

It uses the same spectrum and equipment that the voice calls are on and their bandwidth charges are probably 1-2 cents per gig transferred.
This reminds me of the days when "Touch Tone" service was introduced for phones.
If you wanted touch tone then you paid extra per month even though it actually cost the bells less due to no maintenance on the old rotary stepper relays.
Kinda like having your number unlisted. Why should that cost extra? If everyone in the country decided to go unlisted then the phone company would get a big fat check and not even have to produce and publish a phone book!
They would bring in tons!
Being unlisted should be a free option and if you want to be listed then you should have to pay .000015 cents per listing for the ink cost alone.

Sorry for ranting but some things just tick me off!

yyz420

@startek.com

Re: It's a stupid price to pay.

We still pay that crap in Ontario and Quebec...lol

AnonProxy
Proxy of Anon
Premium
join:2001-05-12
ß
The other thing that is funny is that touch tone is "faster" to connect a call, which means the potential for making money quicker makes it beneficial to the Bell's. They should have been charging more to rotary customers.

cork1958
Cork

join:2000-02-26
Fruitport, MI
·Charter Pipeline

Anybody in the world that isn't TOTALLY brain dead, knows you can't download all day long on a cell phone, period. I don't care what plan or carrier you're on.

Make him pay the whole amount. Maybe it'll wake up the rest of those brain dead morons!!
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JeepMatt
Delaware Fios
Premium
join:2001-12-28
Wilmington, DE

He's only 29?

The guy in that picture is only 29?? Jeez - he looks like he's 50!
--
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cowboyro

join:2000-10-11
Bridgeport, CT

Re: Anybody that isn't brain dead

The jerks are the ones billing by the kilobyte. Since almost all providers have an unlimited tethered plan available they should just cap the charges to the monthly cost of the plan. But no, they prefer to screw the customers, it's much easier...

entropy1
Premium
join:2002-09-25
·Comcast
·Sprint Mobile Broa..

Why not just get a data card and an unlimited plan? The dorkus who sold me my new laptop said I should have just used my phone for a modem when I mentioned that I'd be using a card. It took a lot of willpower to not strangle him for his stupidity. I wonder how many other people he told that to. Why is this misinformation so predominant? People not using common sense is SOOO annoying.
netPoser

join:2003-02-06
Spring Hope, NC

Can someone do the math?

Per KB/Kb costs times the number of hours in a month would cost how much total?

Example:
On Jan. 1 at 12:01 AM I turn on my phone and start downloading "stuff"...then on Jan. 31 at 11:59 PM I turn my phone off. How much data (in GB's) could I download on their network (Edge, 3g, etc.)? Could the cost per KB/Kb add up to over $85K?

I know these idiots don't read their contracts but how do these providers justify the prices if that's the case?

I could turn every thing on in my house that uses electricity and leave it on for a month and I doubt I could come close to what a cell phone could do with data in that same time period.

And how about putting a small application on the phones next to the clock that keeps a running total of your phone bill? You could select it and view your bill in realtime or maybe a 24 hr delay. Gas pumps show you the gallons and the dollars in real-time.

I think the cell phone companies and other utility companies love to keep you in the dark about your variable monthly costs as it benefits them.

Tyrael
Premium
join:2002-07-08
Earth
"and added a [$15] inclusive internet deal to let him use his phone for surfing the net."

Even if he read the contract, if it was worded anything like this he probably thought it meant you could tether it as well.

typhoon87

join:2007-03-05
Buffalo, NY
·Verizon FIOS


edit:
December 27th, @10:29AM

Re: Am I the only one?

This guy is the Tool of the day HAH

These people are dumb browsing on mobile device, tethering to laptop, the same thing I think not.

ATT wireless lets you view your bill online that is usally within an hour or two of real time. So you see how much data you have left.

entropy1
Premium
join:2002-09-25

Re: Am I the only one?

I'm with you on that one. What a DUH.
cghh

join:2001-01-15
Milpitas, CA

said by typhoon87 See Profile :

ATT wireless lets you view your bill online that is usually within an hour or two of real time. So you see how much data you have left.
I cannot speak for at&t, but with Verizon Wireless, you can track your usage in pretty much real time, but billing is another matter. One system generates usage records (in real time), but another system takes those usage records and computes your bill based on your particular rate plan, and this billing process is done in batch mode once a month. Until this billing run is done, the cost of the usage is not known.

It's not like a credit card system, where the charges themselves are the "usage records", so the system can check against credit limits in real time.

wruckman
Ruckman.net

join:2007-10-25
Northwood, OH
·RoadRunner Cable

This kind of billing should be illegal. If I were him, I would wipe my ass with the bill and send it back to them. Why don't they cut them off at a reasonable amount of overages. Like 300$ instead of 60,000$.
--
William Ruckman
»ruckman.net
HenryNettles

join:2003-07-22
Sealy, TX
·AT&T Southwest
·AT&T DSL Service

All of you who are complaining that the victim should
have read his contract are essentially clueless. I
mean clueless, as in a blind man wondering around in a
completely dark room, while wearing mittens.

Such contracts are not meant to be intelligible to
ordinary mortals. Not even to lawyers. If you asked
12 lawyers to read a cell phone contract, you would get
at least 12 different interpretations of what it means.
Why do you think the civil courts are backed up so
badly? Lawyers arguing endlessly about what those
obfuscated contracts actually mean. And the lawyers
want it to be this way -- they make $200 an hour (and
up, way up) to go to court and argue about
unintelligible, obfuscated contracts.

And let's talk a little bit about "reasonable". In
most cases, for a contract to be enforceable, any
charges in the contract have to be "reasonable". Do
you think for one minute that a jury of 12 of his peers
are going to think $64,000 in one month is reasonable?
If I was on the jury, they would have a very, very,
very difficult time trying to convince me.
Forums » $54,000 Cell Phone Bill


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