Fears expressed over misleading unlimited mobile broadband deals

Monday, November 21st 2011
The Communications Ombudsman has warned consumers could face unexpectedly high bills by exceeding their data allowance.
Fears expressed over misleading unlimited mobile broadband deals
Many consumers are being misled by so-called unlimited mobile broadband plans that fail to live up to the name, according to the Communications Ombudsman.

The organisation, which exists to help consumers resolve disputes, argued that mobile service providers are failing to do enough to protect customers against receiving unexpectedly high bills after exceeding their data allowances.

A statement from the Ombudsman claimed the average mobile broadband user now downloads and streams more content than ever before due to technological advances.

"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," it explained.

In order to tackle the issue, the Ombudsman is raising awareness by speaking to the media and is also urging network operators to take its advice on being "very clear" about any caps on usage allowances that are in place on their price plans.

Mobile carriers must take "quick and effective action to stop large unexpected charges building up and to take steps to tell customers before they exceed their limit", it stressed.

Network operator 3 Mobile has given its backing to the Ombudsman's comments, having taken the decision in July 2010 to stop advertising 'unlimited' tariffs with usage limits in place.

Guy Middleton, head of corporate affairs at 3 Mobile, argued the word 'unlimited' has been "devalued" by telecoms companies, pointing out some of its rivals have even offered three different sizes of unlimited package.

"Most 'unlimited' offers don't deserve the name," he remarked.

Carriers should not be allowed a "free pass" to refer to mobile broadband deals in this way unless they mean it, Mr Middleton stated.

However, existing advertising regulations allow service providers to continue advertising price plans in this way, as long as the allowance covers the usage of the typical customer.

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