Vodafone warns customers of hidden catch in mobile cap plans

Vodafone Australia is warning customers to "read the fine print" before signing for capped mobile phone plans.

Vodafone said there was an increasing number of "bucket style" capped pricing plans being released recently, which lock customers into contracts.

"Some customers are still at risk of being lured into lock-in contracts through 'too good to be true' deals, or into capped call plans which contain a series of hidden catches," Vodafone said.

A spokesperson from Vodafone told ZDNet Australia  that majority of the mobile phone cap plans offered by Optus, Telstra and Hutchison either lock the customers into a contract or have hidden catches that might give the customers a "bill shock" at the end of the month.

According to Richard Sherwood, general manager mass markets at Vodafone Australia, "Lock-in contracts mean customers risk missing out on the opportunity in the future to take advantage of further lower prices and better mobile deals. Contracts also restrict the ability for consumers to change their mobile options to suit their lifestyles at different points in time".

"In addition, some new capped mobile plans on the market are destined to give customers bill-shock when they realise at the end of the month that they've been charged extra for basic services such as voicemail, text and picture messaging on top of their capped value," he added.

The Vodafone spokesperson said customers should check whether the mobile phone cap plan requires them to buy a new handset, charges all calls by the second or in 30-second blocks, includes other services such as text and pictures messages in the bundle or if the service provider penalises them for switching to other networks.

Independent research company PhoneChoice said the war for the best mobile price puts consumers in the best position to take advantage of cheaper mobile phone rates.

"Christmas has come early for mobile customers. Other recent PhoneChoice research revealed that some capped mobile plans are now so cheap that for nearly one in five households it is more cost effective to make a complete shift to some capped mobile plans rather than keeping a landline. Australian consumers are the real winners from this mobile price war," Reg Robertson, PhoneChoice spokesperson, said.

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Talkback 3 comments

    "By ZDnet staff writers&q ...Anonymous -- 20/10/04

    "By ZDnet staff writers" is a giveaway. Please stop reprinting corporate press releases under the guise of news stories.

    Capped phone plans Anonymous -- 21/06/08 (in reply to #120109266)

    I would thoroughly agree with your comments - I'm a business customer and still the customer service is so incredibly bad and don't even start me on Lara! Vodafone - get rid of her as quick as you can....

    Pot Calling the Kettle Black Hannah R -- 14/01/08

    Ha! I find it quite amusing to find Vodafone "warning users" of the hidden costs of cap plans, when they do not warn their own customers of the same traps in their own cap plans.
    I signed up for a Vodafone $79 cap plan ($79=$550 credit) around 12 months ago, and couldn't believe the amazing deal I got. I wasn't sure how much credit I would be using, but the Vodafone representative assured me that I could easily change into a lower cap if I did not need the $550 credit provided. Well I quickly ascertained that I did not require that much credit, and researched into changing into the lower cap ($49 = $310 credit) and found to do this I would have to pay an astounding $20 x months left on my contract. So in effect paying $69/month to get $310 credit. What a joke! I might as well pay the extra $10 and stay on my currrent plan, receiving $550 credit.
    It may sound like a low amount, $79/month, and it wasn't a problem when I signed up and was working full time, but now I am at Uni and struggling to make ends meet. Yet I continue to pay the $79 every month even though I don't need it.
    I find the customer service with Vodafone to be a complete joke.
    I also purchased insurance on my phone, and when the phone actually did break, was informed that it would cost upwards of $300 in excess and I would be without a phone for 10 working days+. If they had informed me of this when offering the insurance I would have never payed the extra amount per month. I ended up buying another phone pre-paid for $200 that is wonderful, no thanks to Vodafone.
    I then tried to unlock the broken phone (which will not make or receive phone calls) simply so I could use another sim card to bluetooth across all my contacts/photos/music to my current phone (on Vodafone) and was told that this would cost me $50. Unbelievable.
    I cannot wait until my 24 months with Vodafone is finished, so I never have to deal with such poor customer service ever again.

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