Wednesday, October 8, 2014

Cramming: Cellular Edition


We all know what it is like to be spending your entire evening studying for that test tomorrow morning, we refer this as cramming. Basically it is trying to jam as much knowledge as we can remember for about 24 hours of a single subject. Cellular carriers have been known to do something similar, but instead they try to squeeze us rocks for as much blood as their vampiric ways can drink(which is never enough). This week AT&T settled a $105 million settlement that was upheld by the FCC. This is great that there is cracking down on this matter, earlier in the year T-Mobile was in the crosshairs for similar behavior, but there really is not enough done about this issue.

<rant>I am not entirely sure, but I believe it does, that when I recently signed with AT&T after leaving T-Mobile earlier in the year I was affected by this bill cramming. As seen on this massive ad campaigns AT&T and Verizon are doing, since they both basically have the same exact offer, it is $160 a month for four per-purchased or AT&T Next phones with 10 GB of shared data per month. Went into the store, already had all four phones since we have them owned outright, went through all they hoops they send you through to change networks, keep phone numbers and set up account information. While in the store they explicitly asked if we would want to have insurance for our phones, obviously I said no since I do not think it is worth it. Two weeks go by before I decide to look at what they were really charging us, BIG mistake made there on my part. Turns out not only did they have all four lines being covered by their insurance, which is $6.99/mo per line (which not worth it on some of our phones which are $60 basic flip phones), they also had signed us up for Beats streaming service, $9.99/mo, and roadside assistance, $2.99/mo. So what went from a $160/mo bill turned into a $240 a month bill, so I quickly canceled these services. What you would think is they refund what has not been used in the billing period, so at this point it would be $40 for us, instead I get a crummy $20 rebate on the next months bill. This was my dealing with this so called bill cramming.</rant>

On to a more serious problem with this settlement, and why I think it is total garbage. The settlement is for $105 million, which is a large sum of money. What is easily forgotten is this settlement covers all AT&T customers, former or current, since 2009. Currently AT&T has about 115 million customers, so if everyone who was affect, which I probably many of these customers, will only receive about $1 a piece for these unwanted and unauthorized charges. I only was affected for one month and that cost me $80, if this problem went unnoticed for year that would have been $960 or about a months worth of groceries for a family of four. This $105 million settlement is basically a slap on the wrist to AT&T which has revenues of around $150 billion. This basically shows that the FCC is unwilling to place actually punishment on companies which conduct seedy and usually unlawful business techniques. If a mom and pop shop were to have a vending machine which just ate your money it would likely be that the authorities would eventually come and either take the machine away of force them to issue full refunds. Our major corporations should be held the same and not given special privileges which they most obviously receive.





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