April 26, 2024

Raw data: Bill Shock Without Leaving Home

BERLIN — Most mobile operators no longer sell unlimited wireless Internet to consumers, instead marketing plans that link download limits and surfing speeds to price. But while operators have abandoned unlimited offers, which were costing them money, many are still using the marketing language of “all you can eat” and “flat rate.”

The result has been an increase in consumer bill shock in Europe and the United States, according to industry experts, as consumers conditioned to unlimited calling, texting and Internet adjust to the new reality. Bill shock has plagued the mobile industry since its inception, mostly because the terms for services like roaming were opaque and poorly understood.

But now, some consumers are getting big bills even when they don’t leave the country, by exceeding limits on voice, texting or Internet data on their new plans.

“Operators are moving from all-you-can-eat tariff plans, and subscribers don’t understand this,” said Doug Suriano, the chief technology officer at Tekelec, a company in Morrisville, North Carolina, that makes billing software used by 300 operators. “They have not been used to paying attention to limits.”

Bill shock has returned with a vengeance in America and Britain, where a spate of complaints has raised the call for operators to better warn consumers about the limits of new plans. A 2010 study by the U.S. Federal Communications Commission found that one in six Americans had experienced bill shock, and in 23 percent of those cases, the bills were more than $100.

In the United States, mobile operators agreed in October to begin a series of automatic warnings next year, which will probably be text messages, when customers approach the limits of voice, text, Internet and roaming packages. The F.C.C. extracted the agreement, which is voluntary, only after threatening operators with binding rules.

In Europe, consumers may know the number of megabytes or gigabytes in their data plans, but they have no intuitive sense of how much they are consuming, said John Phelan, a spokesman for the European Consumers’ Organization, an advocacy group in Brussels.

“Data download rates are like a secret arithmetic to most consumers,” Mr. Phelan said.

In Britain, the communications ombudsman, a quasi-public agency that arbitrates consumer telecommunication complaints, criticized wireless operators in November for continuing to advertise “unlimited” plans that did not adequately spell out their limits and the costs of overruns.

The U.K. Advertising Standards Authority, a government oversight panel, ruled this year that operators could continue using the term “unlimited” in advertising as long as consumers were warned in fine print that “unlimited,” in effect, was not unlimited. The ombudsman’s office, in Warrington, England, has received many complaints about confusing plans, said the chief ombudsman, Lewis Shand Smith.

“We felt we ought to speak out,” Mr. Shand Smith said during an interview. “It would be simpler to bar companies from using this deceptive marketing language, but the advertising standards authority has authorized this practice as legal.”

If operators don’t eliminate confusing tariff language, Mr. Shand Smith said, the British telecommunications regulator, Ofcom, might step in and require operators to send out text warnings to consumers who were approaching the limits of their domestic voice, text and data plans. Since 2009, operators in the 27-nation European Union have been required to warn customers when they near the limits of mobile roaming packages. In 2009, a new E.U. law limited maximum monthly roaming charges to €50, or $67. But there are still no national requirements on E.U. operators to alert customers who are nearing the limits of domestic voice and data plans, where roaming is not an issue.

“Ofcom is definitely looking at this,” Mr. Shand Smith said. A spokeswoman for Ofcom said the agency planned to make recommendations at the end of January. She declined to say whether one of the options being considered was a domestic warning rule for consumers.

A system of domestic warnings in Britain on voice, text and Internet is long overdue, said Jon Barrow, a principal researcher at Which?, a London consumer reporting magazine and Web site that has lobbied Ofcom for better notifications. In Britain, banks routinely call customers when they observe unusually high spending activity on an account, Mr. Barrow said. But with most mobile carriers, he said, if you go over a limit, there is no warning, just a big bill.

Britons are better protected from bill shock when they leave Britain and travel in the rest of the European Union, where laws on roaming are in effect. Since 2007, the Union has enforced retail price caps on voice and text roaming, and a wholesale cap on data roaming charges.

But the risk of roaming bill shock is still great for non-E.U. citizens, especially Americans and Canadians, and for E.U. residents traveling outside the European Union, according to a study released in May by the Organization for Economic Cooperation and Development in Paris.

The O.E.C.D. ranked roaming costs by nation of consumer, adjusting for national differences in earning and cost of living. The result is that consumers from the United States, Canada, Israel, Japan, Chile and Mexico paid the highest roaming charges when abroad, with prices ranging from $14 to $25 for each megabyte of data downloaded. Residents of Greece, Iceland, Luxembourg, Finland and Norway paid the lowest charges, roughly $5 per downloaded megabyte.

“These prices are still a multiple of what people pay domestically for data downloads and we see no reason why they should be so high,” said Agustín Díaz-Pinés, a policy analyst at the O.E.C.D. in Paris. “Bill shock is still a big issue for most people traveling abroad.”

Article source: http://www.nytimes.com/2011/12/12/technology/12iht-rawdata12.html?partner=rss&emc=rss

Bucks: Post Your Hurricane-Related Insurance Questions

Damage from Hurricane Irene in Washington's Capitol Hill neighborhood.Jacquelyn Martin/Associated PressDamage from Hurricane Irene in Washington’s Capitol Hill neighborhood.

Hurricane Irene may not have done as much damage as feared, but in many areas the storm still left plenty of flooded basements, damaged homes and downed trees. Cars crushed by trees are generally covered under the comprehensive portion of your auto insurance policy, according to this video from the Insurance Information Institute. The institute also has published a list of toll-free numbers for contacting insurance companies.

Do you have insurance questions as a result of the hurricane? Submit them in the comments below, and we’ll do our best to get them answered by industry experts.

Article source: http://feeds.nytimes.com/click.phdo?i=843180849162231eb814c9ab41ded47d

Lessons in Longevity, From I.B.M.

Yet, not so long ago, I.B.M.’s corporate survival was at stake. In the early 1990s, it nearly ran out of money. Its mainframe business was reeling under pressure from the lower-cost technology of personal computing.

New leadership was brought in, and thousands of workers were laid off. It was part of the company’s painful journey to what might be called “post-monopoly prosperity” — that is, a new path to corporate success once a dominant product is no longer the turbocharged engine of growth and profit it once was.

“I.B.M. faced the challenge that all great companies do sooner or later — they dominate, they lose it, and then they re-create themselves or not,” observes George F. Colony, the chief executive of Forrester Research.

I.B.M. met the challenge, moved beyond the mainframe and built a business increasingly based on software and services. So as it celebrates a milestone, the company holds lessons for others.

Evolving beyond past success is a daunting task for companies in all industries. But that problem is magnified in the technology arena, where companies can quickly rise to rule a market, seemingly invincible, until a shift in the technological landscape opens the door to a new generation of corporate dynamos.

That is certainly the test that Microsoft is struggling with today, as it seeks growth beyond its lucrative stronghold in personal computer software. If they are to prosper for the long haul, Google and Apple, too, must reach beyond their dominant businesses. Each of these companies, in its way, is trying.

So, then, what broader insights are to be drawn from the I.B.M. experience?

One central message, according to industry experts, is this: Don’t walk away from your past. Build on it. The crucial building blocks, they say, are skills, technology and marketing assets that can be transferred or modified to pursue new opportunities. Those are a company’s core assets, they say, far more so than any particular product or service.

In I.B.M.’s case, the prime assets included strong, long-term customer relationships, deep scientific and research capabilities and an unmatched breadth of technical skills in hardware, software and services.

Though once a mainframe company, I.B.M. has recast itself as the supplier that can best manage and stitch together diverse technologies in modern data centers. Mainframes still have a role, and I.B.M. has invested heavily in them — $5 billion in mainframe research in the last decade — so that different kinds of software can run on them and new kinds of processors can plug into them.

But it is the technology surrounding the mainframe that really pays off for I.B.M. today. Mainframe hardware alone accounts for less than 4 percent of its revenue. But when the software, storage and services contracts linked to mainframe computers are included, the figure rises to 25 percent — and as much as 45 percent of operating profit, estimates A. M. Sacconaghi, an analyst at Sanford C. Bernstein Company.

I.B.M. has redirected its research labs and sales force to focus on services and software, retraining thousands of people, and supplementing in-house programs with acquisitions. In big, complex services contracts, from running smart-grid projects for utilities to traffic-management systems for cities, I.B.M. acts as a high-tech general contractor whose expertise spans research, software, hardware and services. These so-called Smarter Planet projects build on its legacy of broad technical skills and deep knowledge in fields like energy, transportation and health care.

AT the moment, Microsoft is the tech company that most squarely confronts the post-monopoly predicament, as I.B.M. once did. Some of the similarities are striking, right down to the long-running federal antitrust suits that both companies endured.

But unlike I.B.M. in the early 1990s, Microsoft is not a company in crisis. It is growing steadily and remains immensely profitable. It has nurtured new businesses beyond its lucrative stronghold in personal computer software: the Windows operating system and its Office programs for word processing, spreadsheets and presentations.

Microsoft has invested for nearly two decades to build up business database software and server operating systems that run larger data-serving computers in data centers. An I.B.M. executive once declared that Microsoft’s attempt to move into data center computing would be its “Vietnam,” a humbling setback. And many analysts predicted that Microsoft would be thwarted in data centers by competition from Linux, the free operating system.

Article source: http://feeds.nytimes.com/click.phdo?i=7b15f89e176f4e115e4f09f5fa20bac3