What isn't wrong, is that they sent letters of demand to late paying customers. They had every right to do this, even to use a debt collection agency (after a reasonable time) to recoup the loss. This is fine.
Not so sure about that being fine, as this below was also in the article.
Additionally, the company told customers mobile service was available at their premises when it wasnâ(TM)t, including in indigenous communities.
The Federal Court upheld the ACCC's claim that Excite Mobile's âoeday capâ clause was unconscionable. The clause meant any customer making more than one two minute call per day would get charged excess fees over the monthly contract charge, which it did not disclose.
Excite Mobile also included a $75 cool off fee on its contracts as well as a $195 charge for returning a damaged phone.
So you have a contract where you have no coverage or if you do have coverage making more than a 2 minute phone call will generate excess fee's and even if you want to cancel they charge you for that too.
These late payments are not the usual problem of customer not having the money but customers receiving outrageous bills over and above their contracts or not getting the service they were promised.
Mobile phone companies have for years gotten away with charging customers for free phone numbers and not including non geographic phone numbers as part of your bundled minutes. Many big companies use non geographic numbers for their customer support and billing call centres, and usually you are held in a queue paying for it.
However this is a new low even for a mobile phone company, excess charges for day time calls in excess of 2 minutes, would you pay it?
Got to admit even without a contract phone companies still find ways to stitch up their customers.
Three mobile for instance give customers free unlimited data for 30 days and even an extra 10 euro phone credit when a top up of 20 euro is made (topping up twice with 10 euro doesn't count even if the machine will not issue a 20 euro top up).
However day 31 is interesting. last month i had around 25 euro of credit. At 5:30 am i had used about 6 euro of credit on data by 5:34 am a further 12 euro and by 6:30 am my balance had gone.
The key thing to do is to buy a 30 day 500mb add on for 4.99 twice. the 2nd one will get queued. The first one will just expire with no usage and then the 2nd will kick in and probably last for 30 days. As a light user of calls and texts that would leave 5 euro for calls in month1 (typical non free usage) and in the 2nd month I would have 5 euro left but since i wouldn't have free weekend calls and free weekend texts, i'd be out of credit in a week or a fortnight anyway.
Should I be annoyed? well not really I get internet access for 20 euro a month and that is still cheap compared with the other options as landlines have line rental + internet access in the city. The only fast option here is wimaxx which is around 35 euro a month so i'm happy enough with what I have (i'd still have to pay for my mobile as well).
I'm better off than Excites' customers that were suckered into a contract which seemed on paper to be better value than the competition, but with excess usage charges after 2 minutes a day, are in practice more expensive and they have a 2 year lock on the customer
At least with my provider i am free to change at any time (my sim remains in service even with no credit for receiving calls). So far I haven't found a better deal and I will not go back to contract phones.