Carriers used to make a killing on text messaging where the data sent was practically nothing compared to what they would charge.
Now the carriers make a killing on 'roaming data charges'.
One of these days, a consumer on the end of a $1,000 negotiated final bill will sue to find out how much the cell phone carrier is actually paying to their roaming partners.
But that would never happen, as the carrier would drop all monetary charges or at least claim 'top secret, hush hush business practices'.
So if you leave the country to go on vacation.... Leave your phone at home and buy a local cell phone for a pittance. No contract and no worries that your phone, by either yourself/kid or programming error, will make your time hell when you get back home.
A B.C. dad is accusing Rogers of price gouging, after his 11-year-old son mistakenly racked up $22,000 worth of data charges on his father’s phone, during a family trip to Mexico.
“When I heard $22,000 and my son happened to hear $22,000, he went into a fetal position and was crying. It was just mind boggling for him,” said Matt Buie, who has an account with Fido, which is owned by Rogers.
Buie is a financial planner from Burnaby, who said he is paranoid about roaming charges. Before his family went on vacation in January, he said Apple store representatives advised him to switch his iPhone to ‘airplane mode’ to prevent roaming.
However, in Mexico, his son got a sunburn and was allowed to spend time playing video games in the family's hotel room over the course of three days. He had games installed on the phone, but also streamed several hours of video.
12 hours of streaming Youtube at a total of 700MB's
“It’s simply a way for these companies to make significant amounts of money,” said Buie, who said he didn't buy a package because he didn't plan to use any data on vacation.
He said what upsets him most is Fido didn’t send a message to his phone until three days of charges had piled up. If he were a Telus customer, its system would have cut off data access when the bill reached $200.
“I would rather be cut off,” said Buie. “If Fido was just reasonable about it, I would pay the amount and that would be the end of it.”
Rogers cuts bill
Janet Lo of the Public Interest Advocacy Centre said she believes carriers use the threat of bill shock to push customers to buy data roaming packages before they go on vacation.
Buie said he is willing to pay $200, equivalent to the cutoff point for Telus customers. He said Fido has now agreed to slash the bill to $500.
In the U.S., certain Telco's are abandoning their DSL lines, in order to make massive profits on cellular data plans. why bother providing a product at a good rate when you can gouge the hell out of people who have no other choice in their Internet access paths.
While at the same time blocking towns from wiring their own high speed Internet services, by bribing(lobbying) the hell out of asshole politicians who love to fuck over the end user.