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Vodafone UK Dumps Unlimited Mobile Broadband, Overcharges ‘Pay Monthly’ Customers Who Already Pay Plenty

Coming this June, Vodafone will introduce an Internet Overcharging scheme for its “pay monthly” mobile customers, dropping “unlimited” smartphone broadband service in the United Kingdom.

From a post on the company’s support forum:

We are planning to introduce Out Of Bundle charging for Pay Monthly customers from 1st June 2010. The reason we’re introducing these charges is to make it fairer for everyone, and to protect our network from data abuse. We’re introducing a real-time notifications service to be completely transparent about these charges and keep customers in control of their spend. No Out Of Bundle charges will happen this month but they will take effect from 1st June. The messages you’ve received this month were sent in error and no more will be sent out from today.

The charging will be as follows:

Monthly bundle customers will pay £5/$7.43 for every 500MB after the first 500MB
Customers without a monthly bundle will pay 50p/$0.74 for every 10MB after the first 25MB

Whilst you’ve all previously been used to there not being any Out Of Bundle charging, the current information available online is clear in explaining that we could introduce such charging at any time. The Vodafone Mobile Internet costs page does state:

We’ll keep an eye on things and let you know your options if it looks like you’ll go over your 500MB Flexi or Value Pack limit.

Our Pay Monthly Terms and Conditions already state that we reserve the right to charge for any usage beyond the Fair Usage limit.

At the same time Vodafone wants to punish customers for using their phones too much, the company continues to heavily market the very phones capable of  “data abuse.”

In addition to the iPhone, Vodafone now also sells a handful of Android phones — both of which are designed for their data service capabilities.

For consumers who believed Vodafone’s marketing and bought an iPhone or Android phone with an unlimited data plan, the rug is about to be pulled out.  Come June, those exceeding Vodafone’s arbitrary data allowances will begin receiving SMS text messages warning them their bills are about to rocket sky-high from excessive usage charges.

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  • Scott: I was a system administrator for a ISP and know how lucrative they are from running one before all the deregulation that made for a hostile working re...
  • txpatriot: OMG -- isn't this just a repeat of the "havoc" created when families shared a pool of voice minutes? Remember how badly THAT turned out?...
  • txpatriot: Scott, whether such charges amount to "overcharging" is subject to debate, but to say the Chairman "endorsed overcharging" is misleading at best, and ...
  • Scott: I have little sympathy for them when politicians on one hand take the corporations money for their re-election campaigns and in turn push for deregula...
  • Andrew Madigan: I doubt Verizon will expand FiOS just even if the marketing agreement is blocked. However those cities (and any other local government) should have an...
  • Scott: What else would you call charging extra fee's on top of a monthly subscription for usage that's already built-in to the cost of service? Landline b...
  • Andrew: There should be a law against this. This just reeks of corruption! How do they get away with this!? "The chairman’s comments came during an int...
  • txpatriot: Internet "overcharging" schemes? No, that's not a loaded headline at all . . ....
  • Rob: Wow, it could be worse. I'm a Time Warner subscriber. They are a decent ISP. I'm so glad I don't live in the Comcast monopoly....
  • Rob: Of course they have a good reason for usage caps. A usage cap is nothing more than a huge price increase for broadband service. So Crapcast gets to ...
  • Bev: This $20 is not a collections fee. It is nothing more than a rip off to consumers who are behind. They might label it as a collection fee, but if a ca...
  • Barb Goertzen: This is the second time Shaw discontinued CBC in Brooks, AB (where we have no other radio CBC radio reception). In 2009 CRTC suggested Shaw ensure ou...

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