Mobile phone firms urged to clarify 'unlimited' data offers
Ombudsman says companies should step in to prevent consumers accruing big bills from downloading on their phones
'Unlimited' mobile phone downloads do sometimes have a limit attached. Photograph: Robert Galbraith/Reuters
Mobile phone companies are being urged to take action to prevent consumers running up huge bills for downloading and streaming music, films or games to their phones.
Many offer "unlimited" data downloads, but some cite a "fair usage" policy that effectively caps the amount a customer can download. Customers are often caught out when they exceed this policy.
The communications ombudsman, Lewis Shand Smith, said operators should be clearer about what was meant by the word "unlimited" in advertisements, inform consumers when they are approaching their limit, and advise people on the amount of data being downloaded.
Shand Smith said: "This is an emerging problem which we think could cause real consumer detriment – we want mobile phone companies to take action before it becomes more prevalent.
"Some mobile phone packages offer 'unlimited' downloads and consumers may believe that their mobile phone bill won't go above a certain amount. Consumers may fail to realise is that there is a small asterisk next to the word 'unlimited' which refers to small print stating that there is in fact a limit which, if exceeded, will incur further charges."
Fair usage policies vary between operators and call plans. T-Mobile and Orange allow customers on monthly tariffs to download 500MB of data a month, but Three has no limit.
The Advertising Standards Authority has looked into the matter and decided it is acceptable to use the term "unlimited", as long as the customer is made aware of the limits and that it does not affect the typical user, the ombudsman added.
In May, communications regulator Ofcom said it wanted to hear from consumers who have received an unexpectedly high mobile, landline or broadband bill in the past 12 months.
Research from the regulator shows that 6% of UK consumers received an unexpectedly high mobile phone bill during the past year, with just under one-fifth of those receiving a bill of at least £100 more than expected.
The average "bill shock" was between £31 and £50 for mobile phone services, Ofcom said. Among the top five common reasons for unexpectedly high mobile bills were customers exceeding their inclusive bundles and using mobile phones abroad.
From July 2012, mobile phone companies will be forced by the EU to cap the amount they charge for overseas data roaming, at 80p (€0.90) per megabyte.
At present, data roaming costs vary hugely. O2, for example, charges £3.07/MB when roaming in Europe and £6/MB for the rest of the world, while Vodafone charges £1/MB up to 5MB, then £5 for every additional megabyte after that in Europe.
Shand Smith said UK consumers must make reasonable efforts to understand the limits of the package they are on and take steps to understand the terms and conditions of what they are buying, before they sign up to a fixed contract.
"If a welcome letter, which clearly explains the limit, isn't read or is ignored, there is nothing we can do to help. Where the information provided by the company is missing, insufficient or misleading, the ombudsman can get involved," he said.
Mark King
guardian.co.uk, Friday 18 November 2011 11.19 GMT
© 2011 Guardian News and Media Limited or its affiliated companies. All rights reserved.
Mobile phone firms urged to clarify 'unlimited' data offers | Money | guardian.co.uk
Ombudsman says companies should step in to prevent consumers accruing big bills from downloading on their phones
'Unlimited' mobile phone downloads do sometimes have a limit attached. Photograph: Robert Galbraith/Reuters
Mobile phone companies are being urged to take action to prevent consumers running up huge bills for downloading and streaming music, films or games to their phones.
Many offer "unlimited" data downloads, but some cite a "fair usage" policy that effectively caps the amount a customer can download. Customers are often caught out when they exceed this policy.
The communications ombudsman, Lewis Shand Smith, said operators should be clearer about what was meant by the word "unlimited" in advertisements, inform consumers when they are approaching their limit, and advise people on the amount of data being downloaded.
Shand Smith said: "This is an emerging problem which we think could cause real consumer detriment – we want mobile phone companies to take action before it becomes more prevalent.
"Some mobile phone packages offer 'unlimited' downloads and consumers may believe that their mobile phone bill won't go above a certain amount. Consumers may fail to realise is that there is a small asterisk next to the word 'unlimited' which refers to small print stating that there is in fact a limit which, if exceeded, will incur further charges."
Fair usage policies vary between operators and call plans. T-Mobile and Orange allow customers on monthly tariffs to download 500MB of data a month, but Three has no limit.
The Advertising Standards Authority has looked into the matter and decided it is acceptable to use the term "unlimited", as long as the customer is made aware of the limits and that it does not affect the typical user, the ombudsman added.
In May, communications regulator Ofcom said it wanted to hear from consumers who have received an unexpectedly high mobile, landline or broadband bill in the past 12 months.
Research from the regulator shows that 6% of UK consumers received an unexpectedly high mobile phone bill during the past year, with just under one-fifth of those receiving a bill of at least £100 more than expected.
The average "bill shock" was between £31 and £50 for mobile phone services, Ofcom said. Among the top five common reasons for unexpectedly high mobile bills were customers exceeding their inclusive bundles and using mobile phones abroad.
From July 2012, mobile phone companies will be forced by the EU to cap the amount they charge for overseas data roaming, at 80p (€0.90) per megabyte.
At present, data roaming costs vary hugely. O2, for example, charges £3.07/MB when roaming in Europe and £6/MB for the rest of the world, while Vodafone charges £1/MB up to 5MB, then £5 for every additional megabyte after that in Europe.
Shand Smith said UK consumers must make reasonable efforts to understand the limits of the package they are on and take steps to understand the terms and conditions of what they are buying, before they sign up to a fixed contract.
"If a welcome letter, which clearly explains the limit, isn't read or is ignored, there is nothing we can do to help. Where the information provided by the company is missing, insufficient or misleading, the ombudsman can get involved," he said.
Mark King
guardian.co.uk, Friday 18 November 2011 11.19 GMT
© 2011 Guardian News and Media Limited or its affiliated companies. All rights reserved.
Mobile phone firms urged to clarify 'unlimited' data offers | Money | guardian.co.uk
