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Group Accuse Carriers of Overcharging Government Customers in CA

December 8, 2015 - Written By Alexander Maxham

All four of the nationwide US carriers – that includes T-Mobile, AT&T, Verizon and Sprint – are accused of having overcharged governmental customers in California by over $100 million over the past few years. Now over 40 California government organizations have joined together to create a lawsuit aimed at the four carriers. Allegedly, the carriers “have ignored two cost-saving requirements included in the master contracts under which California state and local government customers purchased wireless services”. What this means is that carriers are forced to inform government customers which of their rate plans would result in the lowest cost possible. The carriers failed to do so, according to this group. These rate optimization reports are documents that analyze individual usage patterns quarterly, to find the best rate plan for each user. The group claims that this report reduces the cost by about 20-30% over the life of the contract.

Complaints of this lawsuit include Los Angeles County, the City of Long Beach, San Diego Unified School District and the Regents of the University of California. The lawsuit was filed on Tuesday with the Sacramento County Superior Court. OnTheGo Wireless provides the rate plan optimization services in question here and was brought by that company.

Obviously representatives at these carriers have not responded to any questions regarding the lawsuit. As is normal with these lawsuits. Considering they are not allowed to say anything specific about the case. These lawsuits normally take a few months to years to go through the system. And it’s likely that those governmental customers that were overcharged will see only a fraction of what was overcharged to them. This does include all four carriers, so this could be a case where the company that was in charge of generating the reports to show the cheapest rate plan for the customers, is at fault.

Governmental customers include those that work for the city, state and federal government. And in this case, it appears to be mostly in Southern California, in the Los Angeles and San Diego area. As soon as more info is available on this case, we’ll be sure to share it with everyone.