Verizon, AT&T, T-Mobile and Sprint Face $100 Million Lawsuit for Overcharging Governmental Customers

by Istvan Fekete on December 10, 2015

cellphone-billMore than 40 California government organizations have announced they have joined a lawsuit alleging Verizon, AT&T, T-Mobile, and Sprint overcharged governmental customers by more than $100 million.

The country’s four biggest carriers are “alleged to have ignored two cost-saving requirements included in the master contracts under which California state and local government customers purchased wireless services,” the group says. The master contracts require the carriers to determine and report which rate plan selections would result in the lowest cost and to provide wireless services at the “lowest available cost.”

Apparently, the aforementioned carriers didn’t provide rate plan optimization reports. These are computerized services that analyze individual usage patterns quarterly and identify the least expensive service or rate plan for each phone or user.

Such reports are pretty handy, because selecting the plan that best matches usage patterns reduces costs by up to 30% over the term of a contract.
Besides failing to provide rate plan optimization reports, the nation’s biggest carriers did not bill government customers according to the most cost effective rate plans, thus failing to provide wireless services at the “lowest available cost,” the lawsuit documentation reads.

The action was brought by OnTheGo Wireless, a rate plan analysis firm. The lawsuit was filed in the Sacramento County Superior Court, and complainants include Los Angeles County, the City of Long Beach, San Diego Unified School District, and the Regents of the University of California.

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Written by: Istvan Fekete. Follow by: RSS, Twitter, Facebook, or YouTube.

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