If you've ever been to the Hawaiian Islands, then you've probably seen plantation signs that read "KAPU--violators will be prosecuted." For those of you that have ever participated on Apple discussion forums you may have read their TOS and the warning is similar. While you may end up in jail for trespassing in Hawaii, you may get booted or even banned from Apple forums for discussing anything that bruises Apple. Some former posters elected to "rant and rave" against Apple for not resolving the iPhone Phantom Data Usage. A few posters even brought up possible "Class Action lawsuits against Apple and AT&T" and these posts were promptly removed, with offending posters receiving warnings from Apple moderators, but the email notice with their comments still landed in my Inbox.
Because Apple and AT&T haven't been forthcoming about the issues of the iPhone and billing of data usage, you can reasonably expect some backlash. AT&T won't comment on individual FCC cases or complaints that they have received but the good news is that individuals that lodged them will.
So for those wondering about the issues, I've attempted to assemble an update.
* The iPhone OS 4.2 fixed 40+ security and other issues. Several users report since downloading the update that their logged data usage closely matches what AT&T reports and bills. There is a reporting/billing lag from when users see billed data usage. These same users are using DataMan (an app to geo-track data usage) and report that DataMan and AT&T reports are very close.
* The bad news is the OS 4.2.1 updates only apply to iPhone models 3G, 3GS and 4 iPhones. Older iPhone users are seemingly forced to forklift.
The other bad news is iPhone users still don't know what data usage if any is being used by the apps and charged against their accounts--this seems to be another bone of contention.
* A WSJ Investigation finds that iPhone and Android apps are breaching the privacy of smartphone users: Your Apps Are Watching You, and this is something else that users commented as "adds insult to the injury especially if we have to pay for the data costs."
* AT&T was recently named America's Worst Wireless Carrier
* Apple provides How to opt out of interest-based ads from the iAd network but does not provide specifics on App and iPhone behaviors--meaning when do the Apps or iPhone rack up data usage users pay for? Just bump your iPhone in your pocket to find out! The direct OPT Out link is here: (iPhone OS 4 users only) But note what a user discovered about this process: "Opting out of iAds opts you out of the targeted ads. Unfortunately it doesn't opt you out of the data collection or the data's transmission to Apple. You just won't see the ads --you'll see generic ones instead."
* Apple’s iPhone utility has an upgrade to 3.2, and click here for Apple iPhone Enterprise Support.
Some key user comments that I mined from discussion forums:
"As it stands now, my iPhone is crippled.... I can no longer enjoy the use of my phone."
"You'd think companies would be smarter than they act with so many people talking."
"I called AT&T for credit, which they honored without issue." (phantom data usage)
"I just want to be able to use my iPhone, which right now I cannot due to this data push. As a loyal Apple customer I find this whole situation very frustrating."
"I have:
--turned off Location Services
--turned off Notifications across the board
--went to OO.APPLE.COM to do the opt-out
--deleted all cookies and will not accept cookies
--disabled javascript
--removed all of my contacts
--turned off push on my email account
--deleted all "databases" from Safari settings
--deleted all backups from iTunes
--chose to "Reset Warnings" in iTunes and then performed a Sync and declined to send any information to Apple and checked "don't ask me again"."
"...and these are smart phones?”"
# # #
Now, the WSJ reported, "At a tech conference in June, he [Steve Jobs, CEO Apple] complained about apps "that want to take a lot of your personal data and suck it up." Being that I do love my Apple gear doesn't mean that I'm sold out to the idea that Apple is perfect--far from it. I think Mr. Jobs needs a dose of reality because with iAds’ thinking, his iPhone OS takes my personal data including my contacts and uses them for Apple's marketing benefit and all the while I pay for the opportunity?
Two new class-action lawsuits were filed in late December against Apple and app makers stemming over privacy concerns and accusing the companies of violating the wiretapping Act; one suit
alleges that Apple Inc.'s Unique Device Identifier (UDID) permits advertisers to secretly track which applications users download and how frequently they use those applications. Unlike cookies, there is no way for a user to turn off or block the UDID. These privacy invasions violate federal and state law. Apple knew about the invasions. Rather than disclosing to iPad and iPhone users that advertisers could find out this information, Apple did not inform or obtain consent from its customers. The lawsuit names Apple as a defendant, along with the makers of several popular applications. Consumers seek injunctive relief ordering Apple to stop these privacy invasions, along with money damages. The firm and its client allege that Apple and the application makers helped advertisers secretly create detailed profiles of iPhone users without their knowledge or consent. Apple and the applications makers allegedly mined data from the consumers' use of their iPhones, including browsing habits, location, and shopping habits. This invasion is possible because Apple assigns a unique identifier to each iPhone, which allows advertisers to correlate data to specific individual end users.
Apple seems to ignore the users with the issues of phantom data usage. Then, they seem to exploit the user information and privacy as reported in the WSJ that Apple and app makers mine "contacts" in the iPhone. Then, the fact that customers go to great pains to disable every possible use of bandwidth seems counterproductive and it's telling that user experience isn't typical of what Apple delivers. Because Apple and AT&T have not been open about the issues I think the issues will elevate themselves and there will be some distortion.
With over 50 million iPhones sold worldwide, one has to wonder if this population is willing to ignore issues like these along with poor cellular services. With Verizon bringing Apple aboard with their iPhone CDMA version there's been speculation about the diminution of AT&T's subscriber base. Now, within the many discussion threads in the US and abroad, iPhones are not the only ones with questionable data usage. Windows Phone 7 has reportedly similar issues.
It seems to me Mr. Jobs either learned this marketing trick or taught AT&T how to have someone else pay for marketing to themselves or collecting their marketing information at their expense. Whether or not the phantom data usage is solved (some users say it is not) I think Apple has opened up a can of worms. The carrier's blind appetite to gain subscribers by offering the latest smartphone may end being more of a liability if the smartphones' data usage can't be reined within reasonable and accurate data usage. Instead of jacking up the subscribers on premium services like unlimited data plans and then ending up with poor customer service ratings because of lack of bandwidth, the carriers may need to rethink their positions. Customers really can't be expected to be in control of what they don't know or can't see. I still can't fathom that I used 18MB last month and I do know how to pinch pennies and bandwidth. Can customers expect a "truth in data usage" statement from Apple? It doesn't appear likely to happen willingly on Apple’s part.
Archives
Corking the iPhone
Aug 15, 2010
Cellular Bills: Who Pays For Marketing to You?
Aug 23, 2010
iPhone: Reconciling the Data Usage
Oct 10, 2010
AT&T or Apple: Whose Problem Is iPhone Phantom Data Usage?
Oct 14, 2010
iPhone Data Usage: Fighting the Man
Oct 18, 2010
Phone Phantom Data Usage Goes Global
Nov 29, 2010
