T-Mobile US is looking to settle a lawsuit filed against it by the Federal Trade Commission that alleges the carrier netted hundreds of millions of dollars by knowingly charging customers for purported "premium" SMS subscriptions that, in many cases, were "bogus charges" subscribers never authorized.
AT&T Mobility agreed to pay a $105 million penalty to settle an investigation by the FCC, which concluded the carrier billed customers millions of dollars in unauthorized third-party subscriptions and premium text messaging services. The FCC said the settlement is the largest enforcement action in its history.
A new startup called Business Texter is aiming to shake up the text-message-based marketing world with an artificial intelligence platform and automation program to lower costs for businesses that want to use texting to reach their customers. The company is also actively talking with carriers and MVNOs to get them to use its services.
T-Mobile US CEO John Legere fired back at the Federal Trade Commission, accusing the agency of "sensationalizing" a lawsuit it filed against the carrier for allegedly charging customers hundreds of millions of dollars for purported "premium" SMS subscriptions that, in many cases, customers never authorized.
The Federal Trade Commission is alleging that T-Mobile US made "hundreds of millions of dollars" by knowingly charging customers for purported "premium" SMS subscriptions that, in many cases, were "bogus charges" customers never authorized. T-Mobile said the complaint is "unfounded and without merit."
Frontier Communications may not be a wireless operator, but the telco has launched a new service that allows its business customers to send and receive text messages using their existing phone numbers via a partnership with Zipwhip.
T-Mobile US launched a new program to proactively reach out to customers who were billed for premium SMS messages they received from third-party services to give them the opportunity to request a refund for any unauthorized charges.
Operators are hedging their bets when it comes to over the top (OTT) messaging, embracing specialised OTT companies on the one hand, while on the other continuing to develop their own OTT messaging strategies.
According to initial figures from France's mobile operators, the new year brought further evidence that SMS usage in the country is being increasingly cannibalised by alternative services such as MMS or picture messages and over-the-top messaging apps.
AT&T Mobility, Sprint and T-Mobile US entered into an agreement with 45 states to stop billing customers for premium SMS messages they receive. Verizon Wireless is not part of the settlement but said that it too will discontinue the practice.