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Paul Merrell

News from The Associated Press - 0 views

  • (AP) -- Federal regulators are urging consumers to go through their phone bills line by line after they accused T-Mobile US of wrongly charging customers for premium services, like horoscope texts and quirky ringtones, the customers never authorized. The Federal Trade Commission announced Tuesday that it is suing T-Mobile in a federal court in Seattle with the goal of making sure every unfairly charged customer sees a full refund. The lawsuit, the first of its kind against a mobile provider, is the result of months of stalled negotiations with T-Mobile, which says it is already offering refunds. "It's wrong for a company like T-Mobile to profit from scams against its customers when there were clear warning signs the charges it was imposing were fraudulent," FTC Chair Edith Ramirez in a statement.
  • The practice is called "cramming": A third party stuffs a customer's bill with bogus charges such as $10-per-month horoscopes or updates on celebrity gossip. In this case, the FTC said, T-Mobile was working with third-party vendors being investigated by regulators and known to be the subject of numerous customer complaints. T-Mobile then made it difficult for customers to notice the added charge to their bill and pocketed up to 40 percent of the total, according to the FTC.
  • The FTC told reporters in a conference call Tuesday that it had been in negotiations with T-Mobile for months in an attempt to guarantee refunds would be provided to customers but that the two sides couldn't reach an agreement. T-Mobile appears to have been laying the groundwork to head off the federal complaint. Last November, the company announced that it would no longer allow premium text services because they were waning in popularity and not all vendors had acted responsibly. In June, it announced it would reach out to consumers to provide refunds. But the FTC says that in many cases, the refunds are only partial and T-Mobile often refers customer complaints to the third-party vendors.
Paul Merrell

AT&T Ends $39 Billion Bid for T-Mobile - NYTimes.com - 0 views

  • AT&T said on Monday afternoon that it had withdrawn its $39 billion takeover bid for T-Mobile USA, acknowledging that it could not overcome opposition from the Obama administration to creating the nation’s biggest cellphone service provider.The company said in a statement that it would continue to invest in wireless spectrum, but could not overcome resistance from both the Justice Department and the Federal Communications Commission.
  • Under the terms of the deal, AT&T will pay Deutsche Telekom $4 billion in cash and wireless spectrum as a break-up fee, and the two companies will begin a seven-year roaming agreement that will expand T-Mobile’s national coverage.
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