Tuesday, January 05, 2010
Laughing with European carriers
I spent some time in Europe around Christmas, joining our team in Pavia and visiting family.
With the need of being always connected (my BlackBerry not being enough, apparently), I decided to buy a USB Modem Stick for 3G Mobile Broadband. They are very popular in Europe (in Italy, in particular, I have to say). You plug it in the USB port of your laptop and you have Internet access up to 7.2Mb (which is way more than my DSL at home...).
I did some comparative shopping online and, as usual, I ended up choosing a Wind one. They have the best pricing for someone which lives abroad. The box said "39 euros with 40 euros of traffic". Nice, they are giving me one euro!! Plus, they have a data plan for 12.5 euro cents every 15 minutes, unlimited traffic, on a prepaid card. What not to like?
I spent the 39 euros happily to get the box. The price was tax included: I am so used to paying 9.25% more than the listed price, that I look like an idiot when I buy stuff in Europe. Plus, I can't recognize Euro coins because I left Italy when we had Lira, so I look like a total idiot when I am carefully looking the coins. They do not get it I am a foreigner because my Italian is still pretty current ;-) They just think I am dumb, which fits with what came later.
I got to my hotel, opened up the box, followed the instructions to put the SIM card in the stick (not easy, a bit of geekness needed) and plugged it in my Mac. The installation program came up on screen (very nice, no CD needed, read directly from the stick: optimal because I do not have a CD reader...), two clicks and a "Connect" button showed up. I got excited and clicked. A few seconds and booom, I was on, HSDPA: everything superfast. My Mac started downloading emails, I opened a few web site, then everything stopped.
Oopss, what happened?
I decided to read the fine print (I told you, I am an idiot, that is what you are supposed to do first). It said I had 10 euros of traffic on the card, plus they were going to give me 5 euros every month for six months (for a total of 40 euros). Got it. Then I started wondering what kind of data plan was I using a few seconds before, while connected... I read a bit more and it said the standard plan was 0.3 euro cent per KB. And that I needed to send an SMS to activate the 12.5 euro cent per 15 minutes plan.
Ouch, I thought. A quick look at the log and it said I downloaded 3MB in 85 seconds. Quick math: at 0.3 cent per KB, 3MB... 10 euros gone. I was out of luck, not even money to send the SMS and request the activation of the time-based billing.
What???? You sell me a stick for ultra-fast download with a laptop and it comes with a per-kilobyte billing?? And I have to send an SMS with a card inside a stick (how do I do it?), with text "EASY SI" and wait 24 hours? Easy what? You took 10 euros out of my pocket in 85 seconds!!
What does a raged customer do in the US? S/he calls customer service. So did I, using my cellphone. American ingenuity.
A nice lady answered, Aurelia. I asked a few questions about my balance being zero euros. She checked and told me she had no idea where my 10 euros went, but she confirmed my balance was 0. I told her I was connected for a moment and she told me she had no idea, because they do not get traffic data until the next day (ooops, so much for real-time traffic inspection and billing). I mentioned my theory, that in 85 seconds I went through 10 euros.
She started laughing. I mean, not smiling. She could not stop. While she was laughing, she tried to apologize about it. But she could not stop.
I asked her if I was the first one. She said, the first one to do it in 85 seconds.
She was cracking up. I broke the Italian record for blowing 10 euros on a stick. I guess most of other users do it in a few minutes. I was quicker. The Usain Bolt of USB modem sticks.
I asked Aurelia if I won anything for breaking the record, like getting my 10 euros back. She became serious all of a sudden. "Nope, there is nothing I can do about it". She did not add "you idiot" because she was really nice. I told her "in the US, the customer service representative would apologize to me, give me back the 10 euros, then add another 10 euros as an apology". She was puzzled and did not know what to say. I thanked her for being nice and told her goodbye.
I was 10 euros lighter but it was worth it. I would pay 10 euros for a good laugh any day. Going to the movies is more expensive.
I have my card in my laptop right now. I have 27 euros on it because I had to top it with 25 euros to be able to use it (at zero euros, you can't do anything. Nice trick, with the 10 euros I would have gone by forever), plus they gave me the first 5 euros free for the first month (after sending another SMS). I spent 3 euros using it every single day for two weeks to check email, browse and Skype with people around the world (in Italy as well, since it is cheaper than calling from my Wind cell phone ;-) I am a truly happy user. No monthly bill, and I will be back in Italy a few times this year. The money will last me the full year for sure, probably even a couple of years...
Still, I have that nagging feeling that someone in marketing at Wind tried to rob me of 10 euros. And managed to do it. With a smile. Demonstrating I am an idiot.
Call me stupid, but I feel customer service comes first. If you are in a competitive market, with everyone around you trying to make you a pipe, you have to be extra-careful in managing your customers. You have to make them happy (not laugh). You have to convince them you are the best, that they really care about you. You have to make them love your brand, your logo, your customer service people.
If you don't, people will leave you for someone else as soon as there is a better offer. It is business 101. Carriers must learn it fast. There is no walled garden anymore.
In the new world of wireless, customers have the last laugh...
Posted by Fabrizio Capobianco at 01:38
14 Comments:
Russell Beattie said...
Back when I lived in Spain, when GPRS was first being introduced, I was using a pre-pay SIM, and thus had to charge it to use data in 20MB chunks, otherwise it was 2.5 Euro-cents per kilobyte.
I wrote up what happened to me here:
http://www.russellbeattie.com/notebook/1003751.html
Long story short- I wacked through 70€ in a minute or so by 1) being impatient and 2) not understanding exactly how much 2.5 cents per Kb adds up to.
It may not have been 85 seconds, but I definitely win the €€€ spent contest.
:-)
-Russ
Comment Posted at 02:58
Fabrizio said...
Hi Russ,
I agree. You beat me. But 2003 was a different time. People connecting to the Internet with a phone or modem were only geeks. Now we are talking about bringing this to the mainstream.
They better get their act together, or it is going to be a carnage ;-)
fabrizio
Comment Posted at 03:13
Gabriele Barni said...
LOL "The Usain Bolt of USB modem sticks" LOL
btw in wireless services there is no "competitive market" in italy ... the costumer service in TIM ,Vodafone are also worse.
The Italian market has become a stagnant oligopoly, where no one is more in competition. I have a daily 50mb TIM tariff called "FLAT" . Yes, not 50mb/s but 50mb traffic. that's the ultimate telecom tariff for iphone users.
Comment Posted at 04:47
Alessio said...
come on!
u lived too long in US and forget how's life in Italy!!!
Customers are treat badly and their money are sucked up by carriers...
that's way most of the people think is better to f*ck the system instead of being honest...
no one even try to fix it, it's simply (sadly) like that...
:_(
Comment Posted at 04:59
Zibri said...
ROTFL!
I just read your post, and couldn't help it, I'm laughing my ass off :)
By the way, I found a way to bidirectionally exchange data using a 3G connection at NO cost. It works with any italian provider I tried (tim, wind, vodafone, tre)
If you're interested, drop me an email!
Ciao Fabrizio!
Comment Posted at 05:49
Interesting story you got here. I'd like to read a bit more concerning that matter. The only thing it would also be great to see here is some pictures of such gadgets as gps blocker.
Comment Posted at 07:37
Eric Di Benedetto said...
This is a clear illustration that social media is still underused in shaming companies to do the right thing for their customers as opposed to preying on them. Use ratings and reviews site on the web to expose such schemes. When thousands of existing and prospective customers rebel against those practices, it will help make the market more open and competitive. I am glad you had a good laugh with the charming gal on the phone, though. Auguri. Eric
Comment Posted at 07:40
www.morel.li said...
Hi Fabrizio,
I'm working in MVNO arena in Italy and I see a HUGE potential in customized customer service
Basically its impossible manage more than 30 millions customers with the same approach.
MVNO target niche and vertical market not only in the business offer but also in CRM.
Personally I use a italian bank with chat customer service. Its works for me but not for my dad.
I see 2010 the mvno year. Next time you will come in Italy I would have the right mobile broadband offer. Just for you. ;-)
ciao
alex
Comment Posted at 08:48
Fabrizio,
this might end up being one of the better 10 Euros you have spent, you have gotten an entire crowd laughing now ;-)
Michel
Comment Posted at 09:23
elisabetta ghisini said...
There is always another side to the same coin ...
My experience with Internet connection via USB drives in Italy was totally different : I bought a Vodafone one for about 60 euros and it worked perfectly for over a month, with heavy daily use.
If you want a similar service in the US, you will most likely have to sign up for a yearly contract with a carrier, which locks you into a monthly rate regardless of use.
Yes, you do get a smiling a cooperative customer service rep, but you sure pay for it!
Comment Posted at 12:17
Davide said...
Ciao Fabrizio,
I like your posts, but I think you are being too harsh against Italian carriers. I thought they were pretty bad, then I moved in the US and find out the here the carriers are even worst!
I can't buy anything like that in the US, even considering the "one-time fee" (yes, stolen but only to the distracted customer like you). In the US I can't even have a decent phone (for various reason, including the lack of credit history, because of my recent move). In fact, I had to but my phone in Italy and bring it here!
Take care!
Dav
Comment Posted at 12:35
werna said...
the prepaid service for "mobile Highspeed internet" is going better and better (here in austria) at the start they gave you 2GB for 20€ and you have it to use in one month, now you have 1 year time. I think this is ok. Off course you had to buy an USB Stick around 50€ You can get also no SIM locked for 70€. The problem with the most Mac Connect Software is that you cannot send SMS. At now i am in Sudan(Africa) and use a Zain Prepaid, it´s about 15€ for 2 GB and you have to use it in One month, also ok. And i remember my 1st (2002)experience with T-Moblie my Powerbook and my T610 from Sony, wow so cool surfing via Bluetooth with my Computer during traveling! it was fast enough, and cool and by the way the bill was 300€, nice try!
Comment Posted at 12:53
Hi,
pretty same experience you can encounter in Czech Republic by the Telefonica O2.
I think this approach to customers is specific for the Europe.
Drain`em money as much as you can, and laugh`em into the face, thats the rule.
Similar experience when you're trying to move with you number to other carrier - obfuscation, ignorance, etc...
I understand you are wondering, when you came from US :-)
JB
Comment Posted at 17:08
Excellent - a good laugh it is and I think 10 Euro is worth it for being on the "wall of shame" at the call center. Imagine the discussions around the espresso machine....
:-)
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