Users don’t believe that their actual data usage matches a true representation of what they’re being billed.
Going up against the Man can either be entertaining or frustrating depending upon your outlook on telecommunications carriers. The phantom data usage remains an issue, as I wrote about previously: AT&T or Apple: Whose Problem Is iPhone Phantom Data Usage?
iPhone users are encouraging one another to file FCC complaints against AT&T for the phantom data usage. Primarily, users don’t believe that their actual data usage matches a true representation of what they’re being billed. Secondly, the word on the street after AT&T made its policy change about data usage billing at the end of May is what really prompted users to review their data usage by accessing their online AT&T reports. Thirdly, from June until present, both AT&T and Apple staff have failed to adequately address the phantom data usage that customers are citing. Instead, customers were given varying reasons and at various times--meaning the story changed, as did the theory for the root cause of the data usage.
Possible causes for the phantom data usage cited in the past:
* Your iPhone Apps are updating
* Airplane mode is on or off
* WiFi is on or off
* Turn your iPhone off at night
* Your iPhone is updated with the latest iPhone OS
* Your iPhone needs to be rebooted
* You agreed to send data to Apple for customer improvement
* Your web surfing and email usage
* Email hourglass icon continues to spin after receiving/sending email is finished
* Safari web browser hourglass continues to spin after page is loaded
* AT&T does an update to its billing system in early morning hours
* It's an Apple issue; or, It's an AT&T issue
What I'd call a classic and expected response from AT&T concerning phantom data usage is in a letter dated September 2, 2010, which a customer received after posting an online FCC carrier complaint. The letter refers to AT&T Terms of Service (ToS). Note two key reasons that AT&T states to the customer as contributing to phantom data usage: "Overhead data" and "Many devices including iPhone transmit and receive data without user intervention"
In an earlier response in July 2010, AT&T told Gizmodo that,
This is a routine update of your daily data activity on your device to ensure the accuracy of your data billing. Customers are not charged for data usage, given that no data session is generated. It's not uncommon for devices that are "always on", like iPhone, to process data event records for billing purposes after a certain amount of inactivity or after long periods of time. It's also separate from how our system lets you monitor your data consumption.
So the response to the FCC complaint is in a letter from AT&T dated September 2, 2010. AT&T tells Gizmodo that customers aren’t charged data usage for this reporting data but later state in response to the FCC complaint that, "overhead data" is charged to users data plans. Is overhead data something else?
But the fear that every iPhone user has is AT&T's disclaimer: "Many devices including iPhone transmit and receive data without user intervention." This I believe is AT&T saying it's the iPhone or other manufacturer's fault, not AT&T's, we're just the carrier. iPhone OS and apps do not normally update themselves without the user okaying the update using their iTunes password. Then, how is Verizon's phantom data usage without user intervention any different?
Several weeks ago the WSJ prompted a survey: Would you switch to Verizon's iPhone? with a flurry of comments that followed. In another separate incident involving Verizon’s overbilling users for data usage without user intervention, Verizon owned up after getting hit by the FCC complaint seemingly initiated by a reporter and after the news of her kids’ data usage bills. CNET interviewed Verizon's new President and COO Lowell McAdam and when asked about the data usage over billing issue he said, "We know the billing relationship we have with our customers is a sacred trust."
For iPhone 3GS and 4 users, my suggestion is download the .99 cent app DataMan Monitor & Geotag Your Data Usage. DataMan helps in managing your data usage in real time to prevent overage charges on your iPhone bill. The really cool feature is that DataMan allows you to set the billing start date to match your billing cycle. It's a simple user adjustment found under Settings in DataMan. This useful app monitors your cellular and Wi-Fi data usage in the background, keeping a log of your activities. To help manage data consumption, you'll receive real-time alerts when you exceed your usage thresholds. There are 4 levels of alert thresholds that you can customize to prevent additional charges. Another useful feature is that DataMan geotags your data activities so you can browse your daily data activities on a map. You can zoom in on the map to see the time and usage amount for certain places. This feature I believe may help isolate phantom data usage. AT&T admits that, "many devices including iPhone transmit and receive data without user intervention." External environmental triggers I believe may be contributing causes and one of those is driving by a cell tower. Again, it's just a theory.
AT&T can expect some market erosion since Verizon is offering iPads, will soon offer an iPhone and because customers will have a choice in where to buy their iPads (including with AT&T) with iPhones soon to follow. Years ago, Sprint endured a billing nightmare but AT&T’s billing nightmare is only beginning and customers think it's profit motivated. One thing is certain about metered Internet or data usage--customers will demand verifiable and accurate billing, otherwise the carrier will lose credibility and find itself fending off FCC complaints. Users and user companies must also understand the reality of each carrier's Terms of Service; just like the tariffs the ToS are living, breathing documents that change at will of the carrier.
