Posts
Lately my blogs have been about "pet peeves". So here is another. Verizon (and other cell phone network providers) has made things so complicated to their advantage. The extra charges for data or 411 or anything can add up quickly and surprise the customer with a big bill. This leaves the customer in the unfortunate position of feeling "duped".
The memories linger. Jenna's first out of control calling as a teenager when the bill received was over $125 for her increased usage. Then the texting nightmare (pre unlimited text) when the bill was also a big surprise.
Anticipating something might go wrong with Serena's phone while in China, I checked usage. Sure enough some data charges, and text charges. International texts are 50 cents to send and 5 cents to receive. Serena dutifully knows not to use the phone while in China but what about people sending her texts - something she can't control. Sure enough there were 14 texts received.
I told the rep how being charged for received texts and not having the capability to turn this feature off was a typical way that Verizon can get more revenue without the customer being able to control usage and what they get charged! The only solution - to turn off all texts. No ability to turn off international only texts or those received.
I wonder how much revenue the phone companies get from user mistakes, or lack of knowledge of what they are doing and what the cost is. It is a business model that is inappropriate - getting charged for services without knowledge of the cost or even that a charge is being incurred. This happened to me once (I think I blogged about it also) when I accidentally signed up for a monthly text service of daily jokes.
This is one of those areas that I can expect infinite customer frustration. Cell phones are a necessity - yet I'm going to constantly fight with Verizon to get charged only for the service I want.
Subscribe to:
Post Comments (Atom)
I agree Garen. It does seem like a business model that is not entirely appropriate. The market will correct it over time, if the government does not step in to protect consumers in the meanwhile.
ReplyDeleteThe services that these pipe business models offer are still so attractive and useful to the consumer that some of the additional charges that accompany them, when considered in isolation, do not on their face appear outlandish to a large enough percentage of the consumer base. After all, there was once a time, not so long ago, when such services (texts and emails) were not even available to them. So what's a 5 cent charge here? and a 50 cent charge there?, might go the thinking. It might not add up to too much additional outlay for the average buyer, that is until they get hit with a $125 bill for increased usage, as you are all too aware.
But it does seem like the times when such additional charges are the ordinary course of business are now bygone, or about to be, and that, as with all business models, these smart phone pipe ones will soon self correct by way of a combination of current industry competition and the ever present threat of substitutes.
The bargaining power of consumers is not determinative because there are so many consumers using these devices and the services that accompany them that for every buyer ready to complain (or switch carriers) over inappropriate additional charges, there is another buyer standing in line to assume them. This seems all the more true when telecom providers provide higher value services to upgrade their business models from dumb to smart pipes models. A large enough percentage of consumers then get a sense that they are getting a pretty good bang for their buck, and so the additional charges continue to come with the territory. Hence the desirability of these smart pipe business models (for buyers and sellers), as fostered by the low cost (to suppliers principally, and buyers much less secondarily) of electronically transmitting communication over distances.
Verizon and other telecom providers are no doubt aware that their competitors are attempting to wrest their customers away through cost leadership, focus, or differentiation, thereby ultimately keeping providers like Verizon honest when it comes to getting too terribly ambitious with these additional charges. Although there is no doubt a good business expense explanation for why they are being levied in the first place.