Newsgopher

Newsgopher searches out the latest press releases so you do not have to. We call him a gopher, but he is really a Richardson's Ground Squirrel (Spermophilus richardsonii).

In Reno, Nevada and Beaumont, Texas, AT&T has run a trial to charge DSL customers $1 per every gigabyte they exceeded their plan’s usage cap. However, they recently announced that their cap and additional usage charges were no longer being implemented. This is the second trial of usage-based broadband charges in the US, and the second to be abandoned, leaving no ISPs pushing the idea of metered broadband services at this time. Time Warner Cable also ran a trial of capped and metered internet charging in Beaumont, but abandoned its plans to extend the trial to other cities after a strong backlash from campaigners and politicians.

You can read more about the story here and here.

The interesting thing about the trial is that AT&T dropped it back on April 1st, but without making any public announcement or even telling customers. This may indicate two things: that metering internet usage is unpopular in general, and that targeting extra charges at the ‘bandwidth hogs’ is not cost-effective. Why should people in revenue assurance care either way? Because the flatter charging is, the simpler it is, and the less likelihood of error. On recent evidence, customers are pushing harder than ever for simple flat-rate tariffs, especially where they are already accustomed to getting them. Simple unmetered tariffs will suit those who feel the first goal is to ensure accuracy and please customers by making it easy for them to understand what they pay for, but may not suit those in RA who secretly want complexity because that gives them more problems and issues to untangle and makes assurance harder to do.

Bookmark and Share

Israeli revenue assurance vendor cVidya has announced a new deployment of its MoneyMap software in a North American communication provider. You can read the press release here. Neither the name of the customer nor the size of the deal is mentioned, leaving it unclear if this is a new customer or an upgrade to an existing customer.

Bookmark and Share

US communication provider AT&T has offered to settle a class action lawsuit over disputed billing by AT&T Mobility, a business which AT&T bought in 2004. The class action lawsuit covers charges that were not authorized or understood by customers, and claims that AT&T Mobility violated consumer protection laws. Disputed charges cover a variety of services, some of which date back to 1999. There were four types of contentious charges made: for data services; for international services; a ‘universal connectivity charge’; and for phone calls charged in a billing period after the call was made. However, after 10 years the settlement offered is relatively small: between USD7 and USD10 for each type of disputed service, so that if a customer was disputing all four types of charge they would receive a total of USD33 to drop their legal claim.

You can read about the story here and visit AT&T’s settlement website here.

After 10 years, I am sure AT&T would like to see an end to this dispute and avoid dragging this out in court. The business does not admit any wrongdoing, but whether it did wrong or not, the moral of the story is clear: if customers do not understand their bill or think the charges are unfair, they persist in pursuing and punishing their provider. 10 years is not a short time in the memory of a customer, even when the dispute is worth only 10 dollars. Of course, customers normally show their unhappiness by doing something less measurable but more damaging to the long-term prospects of the provider – by churning and never coming back.

Bookmark and Share

US cost and revenue management vendor TEOCO is reportedly in talks to acquire Israeli service assurance firm TTI Telecom, according to Israeli journal Globes. You can read the Globes story here. On their corporate website, TTI admitted it is in talks with a potential buyer, but did not confirm its name.

Globes said the price tag would be in the range of USD 50-60 million. TEOCO should have the financial firepower; last year TEOCO raised USD 60mn by selling a minority stake.

Bookmark and Share

Israeli software vendor cVidya has appointed Ron Halpern to the position of Executive Vice President of Global Sales. Halpern was previously a Vice President of billing giants Amdocs. Read the cVidya press release here.

Bookmark and Share

Faye Harris, formerly COO and General Manager of Vibrant Solutions, has been recruited to join the management team at TEOCO, the revenue assurance vendor. At TEOCO she takes on the role of General Manager focused on Account Management. Read more here.

Bookmark and Share