Alex Zaharov-Reutt
Monday, 21 July 2008 20:19
Opinion and Analysis
Page 1 of 2
Whether you’re using a shiny new iPhone 3G or other smartphone, the
ACCC has put out a warning to users not to be misled over the
“significant cost” of excess data usage charges. It’s a timely warning,
but you can be certain that horror stories of massive data charge bills
will inevitably surface anyway!
The Australian Competition and Consumer Commission, the ACCC, has put out a
warning to smartphone users to make sure they’re fully aware of excess data charges associated with their mobile and data accounts.
Sadly it doesn’t look like the ACCC can actually do anything to lower data charges, which in most cases are ridiculously high compared with fixed data charges through ADSL or cable connections, despite moves by 3 Mobile, Optus and Vodafone to offer data pricing far cheaper than that from Telstra, Australia’s dominant telco.
Graeme Samuel, the ACCC’s Chairman, can only say that the ACCC will “remain vigilant in this new area and where it receives concern over inadequate disclosure of terms and conditions of data use, will act quickly."
Which means that you will likely be on your own and up for a large bill if you find that you, or your children, have racked up massive charges because you or the kids didn’t understand the excess data charges involved.
Now it has to be said that most readers of iTWire will understand these issues and will be very, very aware of them indeed. But the vast majority of non-tech savvy consumers out there probably don’t understand these charges, and certainly wouldn’t understand just why they are so damned high.
But they are: mobile networks are expensive to build and maintain, and it takes time and competitive pressure for mobile data charges to fall.
Smartphones such as the iPhone are doing the most on a worldwide basis to practically “force” telecommunications companies to be far more reasonable in their data pricing, although the iPhone 3G isn’t the only smartphone on the market that can chew through mobile data.
Plenty of other phones, be it the Nokia N95, Windows Mobile devices or a host of other smartphones can all view YouTube videos, access Google Maps, browse the web, do email, download software, music, videos and more. So don’t think you’re safe just because you don’t have an iPhone!
Consumers can also use many mobile phone models connected to their computers as “wireless broadband modems” – there have been cases overseas of bills of tens of thousands of dollars racked up by downloading large files onto their computers through the mobile phone connection, and this is another danger area for consumers.
Continued on page 2.