Wednesday, July 2, 2008

Corporate greed and stupidity

I've lost my T-Mobile SIM card during a trip to Montreal last weekend. I took the card out because once a T-Mobile phone switches to international roaming, T-Mobile starts charging steep fees (e.g., $1.49/min in Mexico and $0.49/min in Canada) for each call until your phone switches back to T-Mobile's network. The problem lies with their outrageous definition of "each call": it literally includes all outgoing and incoming calls - even the ones that you don't answer! To make matters worse, T-Mobile doesn't make this information available in their Terms of Service or via their customer service representatives. I've found out about this only after I've received my phone bill following my trip to Mexico earlier this year.

But back to the SIM card. I thought it wouldn't be a big deal since my phone book is stored in the phone itself and T-Mobile currently sells a prepaid SIM card on their website for $6.99. So I went to a T-Mobile store and they informed me that a replacement SIM would cost $19.99 plus tax ($1). I asked if they could provide me with a discount for being a customer for several years but they told me to call customer service. So that's what I did. The rep quoted me the same price and here's the dialog that followed:

Me: This is very high price, especially compared to what T-Mobile sells the prepaid SIMs for. Could you give me a discount for being a loyal customer?
Rep: We don't offer discounts on SIMs, only on service and handsets.
Me: Btw, what is the difference between the two types of cards other than a label?
Rep: You would have to select a new phone number to use a prepaid card.
Me: I feel like I'm being strong armed into being severely overcharged. Since I'm out of contract, it appears that it would actually be cheaper for me to switch providers: I'd get a new phone plus a SIM card for free with a new contract and retain my phone number in the process.
Rep: It is certainly your option.
Me: OK, then I would like to cancel my service.
Rep (laughing): Why didn't you say that you wanted to cancel in the beginning?
Me: That's because I didn't want to do that. I just wanted to get a replacement SIM card at a reasonable price.
Rep: OK, let me pull you account info.
Rep (a few seconds later): We might be able to give you a card for free, let me send a quick email to my supervisor.
Me: That would be great.
Rep (after a few more seconds): My supervisor approved the request, so we are going to send you a card for free.

I understand that it's probably not the reps fault: they are just low-level employees reading from scripts but what kind of idiot would come up with the scripts that would lead to a scenario like this? Basically, the company refuses to play nice and deal with a customer unless that customer has heavy leverage. What happened to the "service" and "customer is always right"? When did these ideas get replaced by greed and stupidity? It surely didn't happen often in the US just ten years ago but now it happens almost every time you have to deal with a corporation.

You might be wondering why don't I switch to a different provider. Well, it's because I have a very good calling plan that meets all of my needs and costs only $30 a month. I've signed up for this plan about six years ago and I have yet to see a better plan at this price point from any provider in the US. Isn't it strange to see when the price of all computer and communications technologies is falling every year? Also, the cell phone industry in the US have consistently received very bad customer service ratings across the board, so switching would be like jumping out of the frying pan and into the fire. This is a very good example where voting with your money doesn't work and where market has failed to come up with the best solution for the consumers.