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iPhone + AT&T = Dead Trees & Giant Fees

The first invoices for the iPhone have been delivered, and one thing is for certain, AT&T loves paper!

For most iPhone customers, the only thing they're concerned about (if anything) is the call and text log. "Who did I call, who called me and did I go over my minutes?" As expected, the invoices included that information, but they also included a lot more.

The iPhone comes with an unlimited data plan (it's required by AT&T) and by default, the iPhone is set to check email every few minutes. Part of the appeal of the iPhone is its "always on" service, so reporting every connection that occurs in a month for a seemingly "always on" service would be ridiculously long and unnecessary. Unfortunately, for both consumers and trees, AT&T believes that ridiculous is a good option.

My iPhone bill from AT&T was 51 pages long. It listed every single time it automatically checked for new email messages, the amount of data transferred, the exact time of the connection, etc... Only the nerdiest of the nerds would find this information important and necessary. This type of report should only be available online or by the request of the customer. Especially since the argument of "what if they don't have a computer and Internet access?" is moot with iPhone owners -- all of which must own a computer with Internet access just to activate the phone.

The AT&T iPhone invoices are not only an environmental waste, they're also a waste of money for the company. Tripling and quadrupling the amount of paper that's sent to the customer costs AT&T ink, paper and postage. I have no idea how much money they're losing with this practice, but I have to imagine that it's enough to be noticeable to their accountants.

Fortunately, AT&T has a built-in invoicing subsidy plan called roaming. Every mobile phone owner realizes that traveling to other countries (or domestic rural areas) can incur roaming fees. In fact, when you make a call outside of the local network, the phone usually states that it's in roaming. But what happens when you aren't making any calls and you're phone is designed to be "always on" and frequently checks for new email messages without any user intervention? What happens is that you get charged by the same people who come up with the pricing for popcorn and coke at a movie theater — and you get charged relentlessly.

Stasia Holdren, our VP of Business Development and our Google AdWords guru, recently taught a one-day AdWords seminar in Vancouver, Canada. Although the city is relatively close to Seattle and is a larger metropolitan city, she was technically on an International roaming connection. She was mindful of that and only made calls from her phone when she had to. Unfortunately, her iPhone had other ideas. Since her phone was set to check email every few minutes, she was charged giant roaming fees for every new connection made, along with the time and data of each connection. She racked up a $600 bill from AT&T in just two days, and that was in Canada!

For those who thought AT&T got a raw deal from Apple with the iPhone, they didn't. The idea of a device that makes connections in the background is very desirable, especially when their customers are likely to travel to other countries and will have no clue of the charges they're racking up. With that kind of fleecing and an inability for their ripped off customers to leave and use the phone on another network, paying for trees, ink and postage becomes the least of their worries.

posted by /
Jon Henshaw

posted on /
08/13/2007

comments /
36


Spawn of Satan. I knew it...no iPhone for me.

Aaron
08/13/07
11:08 am


Heh, it's more like no more traveling for you! That or turn off the automatic email check. Otherwise, with exception to the paper invoice from hell, it's all good.

Jon Henshaw
08/13/07
11:11 am


Whoa, that really is disturbing. I have become pretty obsessive about cutting down on the amount of paper I use for the environment, and AT&T is sending out 51 page invoices? Now I'm going to have to switch to 1 ply. Darn. (joking)

Nathan
08/14/07
02:29 pm


You and Sheryl Crow ;)

Jon Henshaw
08/14/07
02:36 pm


I kinda feel sorry for everyone who's experienced this, but at the same time its pretty obvious. Its not like the iPhone forces you to check your email constantly, and Yahoo offers a free push email service to iPhone owners. Just use that or change your settings when you go out of the country? As for the 51 page invoice... thats just stupid at&t.

Mark Smith
08/15/07
03:18 pm


The good thing is that you can request that they don't send you a paper statement online at https://www.wireless.att.com/.

Jon Henshaw
08/15/07
05:37 pm


I'm sure that some environmental group is gonna get on AT&T's case about those monster-sized bills. Perhaps they'd better switch to recycled paper? I'm also not surprised with the iPhone cost. That's what you get when you use a phone that tries to be a portable computer!

Mark
08/16/07
02:29 pm


I turned off paper billing years ago.

Sam
08/16/07
11:19 pm


"Although the city is relatively close to Seattle and is a larger metropolitan city, she was technically on an International roaming connection." Technically...because it's a different country. Relatively close...hundreds of miles away (four hours by car)

Glenn Fleishman
08/16/07
11:57 pm


Or it may simply be that she was switched over to the Canadian Telco Rogers Wireless which has ....... ready ..... the worst data rates in the world bar none. No, thats not made up, Canada has the WORST data rates in the world by far. She probably was charged Rogers rate, which are around 25 dollars for ONE MB.

jo
08/17/07
12:19 am


BTW, you can sign up for AT&T to deliver your invoices via email instead of paper. At least that eleminates the dead tree problem.

Marc
08/17/07
12:31 am


Issue for pp'l who travel extensively like me is that ATT sells a $65 unlimited global data plan to Bberry users. iPhone users (like me) are stuck with either $20 per in'l roaming MB, or a 1-yr $25/mo plan for 20MB. Thing is, 20MB can be consumed in less than one hour. For instance, the Vancouver gal used up 10MB in 1 day = $200! My company pays for my iPhone, so I'm OK, but essentially I'll have to dust off my old GSM phone when I go on vacation!

Xavier Itzmann
08/17/07
01:14 am


I've been getting paperless (i.e. online) bills from Cingular for years, since I didn't like wasting 2-3 pages of paper pre-iPhone. No reason to blame the company for a choice the consumer can -- and should -- easily make.

Mike
08/17/07
06:19 am


I traveled to the same city, and experienced the same issue. AT&T tells me the only fix is to call customer service and disable Edge before leaving the U.S. Unfortunately, this practice also disables visual voicemail.

Mark
08/17/07
06:34 am


There must be a way for Apple to update the iPhone software so that it detects when it's in Roaming mode and automatically switches to a different set of default settings -- ie. ones where frequently scheduled email checks are disabled in favour of manual ones, etc. People could of course amend the default roaming setting to whatever they preferred (should they happen to prefer receiving a phone billl for eight trillion dollars) but a minimal connection schedule should be the Roaming default, surely?

Rick Lecoat
08/17/07
06:47 am


Regarding the ridiculously (and unnecessarily) long bills - this has been making the rounds already so you may have seen it. Justine from Justin.TV videotaped her opening her first bill (sent in a box, as it was 300 pages long). On the MacBreakWeekly podcast she mentions that the length was the result of having received (no joke) 30,000 text messages within a single billing period - she has the unlimited SMS plan, though, so the epic bill wasn't even describing any overage charges. http://www.youtube.com/watch?v=UdULhkh6yeA

Bill
08/17/07
06:48 am


So you made a mistake and now you're blaming AT&T? Man, AT&T is really taking a PR beating for carrying the iPhone. How is this different than ANY OTHER CELL PHONE CARRIER EVER? Everyone keeps using stories like this to bolster claims that ATT = 666, but they all turn out (as this one does) to be stories of the user not paying attention. Oh and everyone complaining about the environmental impact of the large bills, there's this little link under Account Profile. "Sign up for Paperless Billing" Problem solved. Sheesh.

Grover
08/17/07
07:36 am


It's apparently custom in the US to provide full bills of all activity. AT&T is not the only one. Companies got sued before I guess, and now cover their asses.

mare
08/17/07
07:39 am


I had a less dramatic form of that experience going to Toronto back in July. In my case, I knew about the crazy data roaming charges and turned off auto checking. Being paranoid, I also set up my laptop to serve WiFi so that iPhone would pick that over EDGE. Of course, I wasn't near the laptop all the time, and lo and behold, I had about $10 data roaming charges even though I had never used Safari or Mail over EDGE. My best guess is that the Weather and Stock apps are updating even when not accessed. $10 isn't a big deal, but still, it should be easier to just turn off EDGE. As I found out after the trip, you can actually call AT&T to temporarily turn off the data plan. I certainly plan to do that before my next international trip (unless a software upgrade allows it to be done from iPhone directly, of course).

Daveed
08/17/07
09:07 am


[...] More from Nashville. [...]


How much data was downloaded? I think without international traveller turned on, it costs about $20 per megabyte - that sounds like 30MB of mail checking. I'm not defending AT&T, but international data plan gives you 20MB international downloading at $24.99/month plus $5 megabyte afterwards -- yes, it's a rip off -- as blackberrys have unlimited at around the same prices - but that at least it would be cheaper than $600! 30MB still sounds like a lot of mail checking over 2 days! - are you sure about that?

Ted
08/17/07
09:36 am


"That’s what you get when you use a phone that tries to be a portable computer!" .... what? Is the Blackberry not in the same general gadget space as the iPhone? The issue here is that we need to be aware of the litle nasties that AT&T's marketing mavens have dreamed up. When out of your country turn off email pinging, text messaging etc. use a free or cheap wi-fi connection to get and send..... just say NO more ofen than not to AT&T.

vanni
08/17/07
10:22 am


Actually by default the iPhone is set to only check manually, so she must have set it to the automatic checking herself....

Mr Howard
08/17/07
10:27 am


#3 Nathan: being obsessive about paper usage is signing in on the day you get your phone and enrolling in AT&T's paperless billing program. Worked for me. Most people don't think of it, but they should.

Jim
08/17/07
10:38 am


This is sick, and I'm not even talking about the waste of paper and ink and postage charge. Let's hear from Apple and at&t about this. It's the same as a cheap internet plan with unrealistic bandwidth limits and draconian charges for excess usage. In short: a ripoff.

blinx
08/17/07
10:42 am


> She racked up a $600 bill from AT&T in just two days, and that was in Canada! You think that's bad? We live in Canada and that's a typical bill for us if we use data without a data plan, or had a data plan and go over our 20 meg limit!

Dave Wood
08/17/07
11:31 am


Same thing happened to me in Mexico. The AT&T CSR couldn't recommend how to avoid it in the future, but she did credit my account.

Kim G
08/17/07
11:43 am


Pull the SIM card when leaving the US. It's the only solid workaround for the data charge problem. Of course then you don't have a cellphone either! (Unless you went the "smart route" and signed up for a super-cheap AT&T subsidized phone then switched to the iPhone.) Apple needs to fix this problem with a 'data roaming' warning similar to a call roaming warning.

John Faughnan
08/17/07
12:14 pm


I got a bill for $1,700.00 from AT&T. There was the activation fee that they feel entitled to for making me wait five days, there were the eighty bucks I signed up for, there were mysterious charges with unintelligible acronyms, and then there was over $1300 for data consumption, charged by the kilobyte while I was in France for two weeks. Before I left, I signed up for international service. I was given a choice: either I pay a buck and a half a minute for phone calls, or I pay five bucks a month to earn the right to pay only ninety-nine cents a minute. Outrageous, but I agreed to it. Since I go once a year to visit my stepmother, I chose the recurring plan. I budgeted for two, three hundred bucks of telephone service. I get a lot of calls because I’m a public defender. Nobody said a word about data. Nothing. And I never gave it any thought. I guess I assumed data would be unlimited like it is here. OK, maybe that wasn’t too bright for a lawyer, but how would I have imagined they’d charge by the kilobyte? It’s like going out to a bar with your friends and being charged for beer by the spoonful. When I got the bill, I was floored. I called to complain, and a sweet-sounding midwestern girl back-doored me into a different plan which lowered my bill to $611.00. An improvement, but still way too high. This is beyond absurd, or silly, or bumbling, or overwhelmed. This is downright dishonest. This is larceny. This is like car salesmen in the seventies who asked whether you wanted tires with your new car. This should be a crime. Whenever people ask to see my new toy, I show them all the cool features on my iPhone, but I tell them about the $1,700.00 bill, plus the dropped calls, plus the slow and intermittent EDGE network, and I tell them to wait until Apple’s exclusive deal with AT&T is over and they go with other carriers. I can’t wait to get back with T-Mobile, myself.

Michael Idoyaga
08/18/07
11:09 pm


WOW.. as recipient of the iPhone giveaway at BarCamp I am REALLY glad I checked out your blog and the iPhone info... and THANKS!! Jef Lawlor Media Director Honky Tonk World Media http://honkytonkworldheadquarters.com

Jef Lawlor
08/19/07
02:31 am


It could be argued (though perhaps not convincingly) that Apple's decision — to have the iPhone's default settings configured in such a way as to leave the user open to titanic bills should they neglect to make ALL the right choices re. service plan and iPhone configuration whilst abroad — was an oversight that will be corrected by firmware and software updates. What rather undermines that utopian viewpoint is the fact that Apple, unlike any other mobile phone manufacturer, receives a share of the revenues made from customers' calls and data connections. They have nothing to lose and everything to gain by this state of affairs continuing for as long as possible. Oh, wait, did I say nothing to lose? Well, apart from their customers' respect and loyalty. But why would a company want that?

Rick Lecoat
08/22/07
10:45 am


Ha! You all are beta testers anyway. Serves you right for buying a hype item when the hardware is already outdated. Why didn't you wait till December when the new model releases. Better yet, wait till other carriers are added. I personally had a problem with AT&T roaming charges in the past. I had a national plan (this was 2001) and I moved back to NYC. They failed to tell me that when I moved, my plan was automatically switched to the regional plan for my area and I racked up $400 in roaming charges while in San Fran for a week. They made sure I paid and I did. That was the LAST time i ever owned a cell phone. I just yell out the window now. :) iPhone=overhyped

Sam
08/29/07
03:42 pm


My best roaming story has nothing to do with the iPhone or AT&T, but I once ended up with a >$1000 phone bill from T-Mobile while on a business trip to Israel. $2.99/minute -- absurd. It was an effectively unavoidable situation, but given that it was a business trip and this was a personal phone that I have automatically charge my card it definitely made my jaw drop.

Ben
09/06/07
11:55 pm


I don't have to travel outside the US for business but I do travel inside the US and you can rack up roaming charges between cities, too. Years ago, my old Sprint phone had a simple setting you turned on or off that was labeled something like "Always stay on Sprint network" or "Allow roaming". I left it on always on Sprint network and never had roaming changes, albeit I had pockets of no reception. That seems like a simple solution -- and I wish my iPhone had that feature now.

Brent
09/08/07
10:10 pm


We traveled to Jamaica last week on 09/08/07 through 09/15/07 with my new Apple i-Phone. Later today on 09/19/07 AT&T sent me a text message saying that my phone bill was very large and for me to call them. When I called them, I was told my bill was $2,405 that was charged last week to my phone for data that was apparently transferred to my phone unknowingly and authorized. Keep in mind that I could not make any phone calls on my phone because the service said it wouldn't connect. So I left the phone in the charging dock and used it as an alarm clock and an mp3 player. I naturally challenged the data amount used since my wife has the exact same phone and she was charged only $161 for the same time period. They said they could not investigate this and that we owed the amount. Then they said that we could settle for half payment if we made the payment today. I said I would need to think about it and he said that if I didn't decide right now that he would shut my phone off right now even though the bill is not even due until October 3rd, 2007. He then offered me a half off and said they would take $1,200 if I again settled today. Please help me I am being held hostage by these guys.

Joe
09/19/07
06:26 pm


Just as bad as Sprint! A few weeks ago I received a phone bill for $577 most of it for roaming fees. While in Iraq I paid to have my phone number reserved, however, when I came home I found the number was given away. I had to purchase a new phone and plan again. Later on I accidentally took my phone in the Jacuzzi and ruined it. I called Sprint and they cut me a deal on a new phone as long as I renewed my contract for two (2) years, which I did. I then requested insurance on the new plan. A week later I called to confirm my plan and was assured I had insurance and nights and weekends after 6pm. My phone bill was on auto pay and I never looked to see if they made the changes. Later on I had problems with my phone and I called Sprint and they said I did not have insurance. Again, I had to purchase a new phone and plan. My bad for not checking my billing statement. I got rid of auto pay as I seen potential problems in not getting a paper bill. After purchasing a new phone I did not have any issues until three months later when I get a phone bill for $577 in roaming fees. When I called Sprint they said to check to see if the phone is set on Sprint only, which it was. I was polite with the representative and explained I went from a lower plan to a higher plan, which is more expensive because Spring does not have rollover minutes and I wanted to be safe, but now I’m paying above and beyond my plan. My plan cost $57.00 that includes $12.00 in discounts. In the eight (8) years I never had roaming issues. Nonetheless, she placed me on hold then confirmed that my calls were in Sprint areas, therefore, I would not responsible for the roaming calls and would be credited $499 plus taxes, however, it would take 72 hours for the changes to take effect. I was then informed my balance would be $74.-- I told the representative I was happy with this and would call back in 72 hours to confirm the my bill and make payment. A few days later I get a text message saying my bill is excessively delinquent and I need to make payment in order to stop interruption. When I called Sprint to make payment they informed me I was responsible for all roaming fees. I explained that when I entered my last contract I checked with Sprint and they confirmed all the areas I travel to are Sprint coverage areas. I have been Sprint customer for more than eight (8) years and I’ve never had this issue until now. I was on the phone for about 1 ½ hours to no avail was I able to resolve the issue. The following day I called Sprint and the representative read the previous notes and said they could not help. After arguing with the representative I finally had enough and requested to speak to a representative. I was place on hold numerous times then the representative came back and said that they would credit my account $490 plus tax. I never spoke to a supervisor. I then asked to be transferred to billing and when the representative pulled up my account it only showed a $200 credit and in order to avoid interruption I was informed I would need to pay the balance of $377. I asked then asked to speak to a supervisor and was informed there was no supervisor on duty. I informed the representative I did not believe this because I have been in management for 22 years and there is always a supervisor present on shift. Then she said hold while I transfer you to another representative. I was on line for 15 minutes then was disconnected after being on the phone for 1 hour and 15 minutes. An hour or so later I called billing and the lady was very cordial. I asked if I could have the name of someone up the chain whom I could send a complaint. I went on and explained my problem and she gave me a name and address. Later in the evening I called again and the gentleman said it was showing a credit of $431 and a balance of $262 that’s $693 of which he stated was additional charges for the next months bill also for roaming fees. I explained my issue and he recommended I wait until tomorrow to give finance or billing time to make all the current adjustments. Then see if they can make additional adjustments for the next months roaming fees. He said it looks like there may be around $100 in credits coming but it was hard to tell. Curious I went online to see if other complaints were made to the Better Business Bureau. When I seen this sight and I had to share my event. I don’t see this ending well, however, if it does I will let you know. I recommend not having auto pay because if this were deducted from my account getting credit or reimbursement would be next to impossible.

Jeff Nordmann
09/21/07
11:29 pm


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