Recently I wrote a blog post about my trip to Hong Kong, Singapore and India. Before taking off, I made sure that I purchased a cell phone plan – Talk & Text Travel Pack – for all my communication needs, while away. After two days of merrily roaming the streets of Hong Kong, it dawned on me that my travel pack did not include coverage for any data usage; and my 2GB data plan did not cover my usage outside Canada. By simply checking my emails and availing of location-based services like Google Maps, I was using copious amounts of data while “roaming.”
The cost of my oversight was $1200! The fault was completely mine. I should have known better. After all, I am in the industry.
Feeling a little sheepish about the whole fiasco, I decided to do a little digging. I quickly realized that “whopping” is a relative term. The Internet is rife with horror stories pertaining to excessive bills tied to international roaming. A lady in Australia was billed $148,000 by Telstra, the local Telco, for charges that she incurred while roaming in Italy. My pains pale in comparison!
So, is there a better way for businesses to handle situations like these? Do companies have an obligation to warn customers as they make these mistakes, especially, when keeping quiet is more profitable? Should businesses operate without the right level of transparency when it comes to services that are often, not as clear-cut as a product – a car or television? Is it possible to trust a company that is not transparent in its policies and commitments? When was the last time you got a refund for a billing error that you were not aware of, from a telephone company or a supermarket? We are living in a low-trust era where Lehman Brothers, Bernie Madoff and Rajat Gupta are still fresh in our memories. Businesses that proactively engage to resolve customers’ issues, even at a cost, will have a higher chance of success. Or, would a sign outside the building like this one do?
Going back to my cell phone bill, a warning message from my service provider indicating that I was incurring unusually high data roaming charges, or even a cap on data roaming would have limited my exposure. That would have been transparent behaviour on the part of the company. My trust in them would have increased. They chose to treat it as the customer’s problem. Surely, no company can plan for all their customers’ mistakes and negligence! But then, why do Amazon and Apple warn customers when they are about to purchase an item that they have previously purchased?
Customers are increasingly connected. Opinions and reviews on social networks often carry more weight than a print or a television advertisement from a company. In a connected world, no company is immune from public opinion and its related fallout.
Transparency in business dealings would be a good starting point!
If you liked this post or had similar experiences, please comment and share using the options below
There is a solution Dax: a universal data roaming, pay as you go sim (and an app to manage it). Check out Gigsky at an app store or search engine. I use my maps, check email, or any of the normal data-related activities we do, and I do this when outside Canada for just a few dollars. It levels the playing field…
Thanks Daya! I will check out Gigsky. The point I was making is about the transparency of such terms and conditions. A simple limit beyond which an explicit ask is required, would drastically reduce unintended usage…
A very simple procedure imposed by European Union, could aviões this kindle of problems. All European Telcos must inform their costumers, When roaming, after reaching the 30€ and 50€ data usage. To continue to use data you need to send a SMS explicitly requiring that! It’s simple and easy.
Thank you for your comment! That is exactly what we need in Canada. Looks like this issue is getting a lot more air time with organizations like OpenMedia.ca taking it up against the big service providers.
That these human errors can be chopped in half by the provider – points to the sizeable cushion of discretion they hold on their captive customers. The conspiracy between heavy penalties and roaming package revenues must surely have been hatched in a marketing boardroom!!
Yes – I have an experience to share but mine is somewhat opposite. My daughter is traveling internationally zone 1 and zone 2, several different countries. When she originally left I purchased a package as well which covered some data roaming along with texting and calls. I warned Carly only to use the phone if she has to. Go to internet cafe’s if possible when out and about and better yet try to enjoy travelling without the use of technology – that brings you back home! The first month she was well within the package I bought . I did not realize however that it’s only 30 days at a time and I would have to keep calling Telus to add or change to the next zone. As a result I did not get the new plan in place until 3 weeks after the girls had entered zone 2. However what I discovered is that because she was being cautioned of the usage, the amount spent on her phone was but a fraction of the package cost. So I actually saved money by not buying the package. $100 to be exact. A package is good if you intend to use your phone just like if you were home in Toronto, but i encourage folks to enjoy traveling, not technology – when off on your next adventure. (Its important to have with you for emergencies or really important “must communicate” situations only) Thats my take! Happy travels!
Melody, Thanks for the comment! Good to have sensible kids and a mother who plans ahead…
Sorry to hear that bit of news Dax – As you state hardly unique – It is as if the operators are acting in collusion in not warning their customers about such costly situations. As much as I am an advocate of free market economics sometimes a dose of legislation is not such a bad thing.
Thanks Philip! To be fair, the cell phone service provider did reduce my bill in half after I was candid about my mistake.
The question is: what if I only realized my mistake at the end of my vacation and was billed a $100K like the lady in Australia? I almost wonder if there is a line attributed to “customer errors/others” in their revenue planning model! If it is revenue, there has to be associated sales compensation with it as well. Talk about blue birds!