How to avoid a $62,000 cell phone bill

Fri Apr 24, 2009 6:16PM EDT

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It's an old story, but here we go again: One caller into a CNN TV show sounded like a man on his very last legs as he explained how a trip to Mexico turned abruptly expensive. No, "Alberto" wasn't kidnapped and held for ransom by a drug cartel. He was the victim of his cell phone carrier, who slapped him with a $62,000 bill after he downloaded a copy of Wall-E to his laptop via his cellular data card.

Alberto's not alone: Tales of multi-thousand-dollar cell phone bills are legion (I've written about several of them here), but looking through the cases you'll see a few common themes over and over again. Want to avoid getting slapped with a bill that's higher than the price of a new car? Here's some advice that every cell phone customer should keep in mind.

> International roaming is often the enemy in cases like this. Neither standard voice nor data plans cover calls when you're out of the country, and yes that includes Mexico and Canada. I've even heard of one case where a caller got a mega-bill while standing on a boat docked in Miami but which was deemed "international" until he could prove he was still in U.S. territory. International roaming rates are exorbitant and are billed by the minute (usually over a dollar/minute) or the kilobyte, so your best bet when leaving the country is to leave your cell phone at home if you can -- or call your phone carrier to ensure that international roaming is disabled so you won't be billed for accidental calls or automatic data pings like the iPhone performs.

> If you need connectivity overseas, make sure you understand the rate you're paying. $1.29 a minute is easily understandable but $0.0195 per KB doesn't mean much to many data users. That tiny number adds up quickly. Case in point: Downloading a single, simple web page like this one will run you about eight dollars. Now imagine downloading a one-gigabyte movie and you'll understand how these five-figure bills happen. Leave your data card behind!

> One strategy many travelers undertake is to buy a prepaid SIM card they can use overseas or get a cheap phone if they don't already have one that's compatible. In Europe, pay-as-you-go plans can be had that offer calls for about 30 cents a minute. If you don't have a GSM phone, you can get one at any cell phone shop for $30 or less. None of these plans require long-term contracts. You just pay for the minutes you use.

> The other major issue with big bills is going over your plan's data cap or allotment of minutes. Data's the biggie: Most wireless data plans top out at 5GB, after which you pay by the KB. The rates aren't as egregious as they are for international use, but downloading that 1GB movie after you've exhausted your 5GB of data will still run you an extra $500. Carriers allow you to check your data usage online, so make liberal use of that feature if you think you might be getting close to the cap.

> Text messages cost money, too, so think before you SMS. A Philadelphia man racked up a $26,000 bill just for texting last month... of course, he was trying to land a spot in Guinness World Records, so really he had it coming.

Comments on How to avoid a $62,000 cell phone bill

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  • 1 Posted by rogueist on Thu Sep 3, 2009 8:49PM EDT Report Abuse

    The cellphone company eventually revised the bill to reflect the actual true "cost" of the transaction, and billed him $17,000 in the end. That means that all phone "plans" are billing you at 347% of the actual rate they pay. And since a recent study shows that people dont even use 1/2 of the plans they pay for, you are paying 694% of what the cellphone companies are paying to actually make your calls. What does that mean? Joe Average paying about $50 a month actually only incurs a cost of about $7.10 to $7.20 a month. The rest is nearly pure profit for the phone companies. Now we have proof that we are being ripped off for our cellphone services every month.

  • 2 Posted by goldfingerone2001 on Thu Sep 3, 2009 4:11PM EDT Report Abuse

    I use the evdo wireless card from Verizon on my laptop. You can check your usage online – but it usually is hours behind what your actual usage is. A quick tip to be up to date of actual usage to avoid going over the 5GB limit, reset the “log” that appears on the top row of the access manager from the date verizon resets your monthly usage to 5GB limit .everytime you log out , the access manager log records exactly how many Mbs used for that session and totals until you reset it again.

  • 3 Posted by redmced on Thu Sep 3, 2009 8:34PM EDT Report Abuse

    Well i somehow sprint managed to charge me 1200 dollars for regular texting even though i had unlimited texting, my account is still screwed up from almost a year ago because of that.

  • 4 Posted by ramon461 on Thu Sep 3, 2009 8:27PM EDT Report Abuse

    How to avoid a $62,000 cell phone bill: Don't use one. If you must use one, try using common sense. I laugh at these idiots that run up these huge bills. My landline is about $25 a month.

  • 5 Posted by ramon461 on Thu Sep 3, 2009 8:27PM EDT Report Abuse

    redmced, even "unlimited" texting will cost you money, because they'll charge you for the data charge, or whatever. No 5 cents per message, but it's not free. Text messaging is stupid.

  • 6 Posted by monko12105 on Thu Sep 3, 2009 7:25PM EDT Report Abuse

    There shouldn't be international roaming. It doesn't cost them anything more at all and yet they give us thousand-plus dollar phone bills

  • 8 Posted by andrade@rogers.com on Thu Sep 3, 2009 2:53PM EDT Report Abuse

    As a believer in free enterprise I usually resent government intervention. But I am happy to make an exception to fight this high tech version of piracy. Cell phone carriers are regulated enterprises which have licensed bandwidth from their respective governments. These national regulators (FCC in the USA, CRTC in Canada, etc) should set limits to roaming charges. Imposing a 300% surcharge limit to what the customer would have been charged on home territory would more than compensate the foreign carrier. Of course the FCC doesn't have authority over China Mobile, etc; but faced with the choice of being paid a regulated amount or earning no roaming fees I suspect I know what carriers will do. Or you can do what I do when abroad: make most phone calls from wifi networks whenever possible using skype on your lap top or cell phone. Same deal when surfing.

  • 9 Posted by kb7rky on Thu Sep 3, 2009 4:48PM EDT Report Abuse

    Cell phone plans are nothing more than legalized robbery...and people are still gullible enough to fall for them every single time.

  • 10 Posted by rhendizadeh on Thu Sep 3, 2009 8:38PM EDT Report Abuse

    that is just a bull ----- . so just don't answear ifyou don't the number and claim that it was a gimmick

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