Media Release
11 December 2002
A great Christmas gift idea: but how much will it cost you?
Telecommunications Industry Ombudsman, John Pinnock, is advising
parents to inquire about on-going or lifetime costs before buying
telecommunications products as Christmas gifts for their children.
"Mobile phones make great gifts for teenagers - and with the deals
they have around at the moment, they're affordable as well," Mr
Pinnock said. "But often it's not the gift that ends up placing
stress on your budget, it's the on-going costs that go along with
it.
"When you sign up to a contract for a mobile phone, for example,
you become obligated to pay the minimum monthly fee plus any additional
call costs for the term of the contract (which can be anywhere from
two to three years).
"Unfortunately, your monthly mobile bill will rarely be the same
as the minimum fee you signed up for - in fact depending on how
your teenager uses the phone, the bills can be crippling."
Mr Pinnock said even the gift of a personal computer, or lap-top,
could present on-going difficulties for parents and families.
"An increasing number of families now have the Internet at home,
and as many of the computers sold today have in-built modems, getting
connected might seem a pretty simple matter," he said.
"But there are a couple of factors you need to consider before
you can get connected, including cost, useability and convenience."
Mr Pinnock advised consumers to compare prices, bearing in mind
individual usage requirements.
"A dial-up connection is cheapest but it is slower and unless
you get a second phone line, it can prevent use of the home phone,"
he said.
"On the other hand, with an ADSL or Cable connection, although
you pay more for the service, you won't pay for phone calls. You
will, however, need to pay for excess usage above your plan limit
and this can be costly if you don't select the right plan."
Mr Pinnock said the most important thing for parents to remember
when purchasing a mobile phone or signing up to the Internet on
behalf of their teenager is that they, not their son or daughter,
will be liable for any charges.
"If your child is under 18 years of age, it is unlikely that they
can be held liable at law for any charges incurred on their phone
or Internet account. You, as the principal, will have to pay,
if they can't or won't."
Contact
TIO Public Affairs
Tel: 03 8600 8700
Email: tio@tio.com.au
TIPS FOR CONSUMERS
MOBILE PHONES
Children cannot enter into mobile phone contracts,
so when you sign up to a monthly contract "on behalf of" your
teenager, you are in fact signing as the principal. The telephone
service provider will hold you liable, not your son or daughter,
for any excess charges. It's not safe to assume, either, that
you will always be able to transfer the contract into your son
or daughter's name when they turn 18.
Consider all the mobile phone options before signing
any kind of contract. There are a range of pre-paid products on
the market that may be of assistance to you in limiting the number
and length of calls made by your son or daughter.
Consider asking your provider to bar access to premium
rate (190x) and international numbers from the mobile.
Consider insuring the handset, especially if
you are on a lengthy contract.
Make sure the handset is protected by a PIN to
prevent anyone other than your son or daughter from using the
phone. It is not uncommon for mobile phone bills to be unusually
high following a party or other event where the phone has been
left unattended for a period of time.
INTERNET
Check out the various connection options for your home,
ie has cable been laid in your street? Can you utilise ADSL?
Compare the prices of the available technologies
bearing in mind your usage requirements. Broadband connections
will incur a fee for installation and you may be required to sign
on to a monthly plan. All connections types incur monthly access
fees. A dial-up connection is cheapest but it is slower.
Bear in mind that many broadband providers have recently imposed
"download limits" to regulate usage. Fees can
be charged for excess usage. Many Internet plans are now also
subject to Acceptable Use Policies which effectively limit the
amount of usage allowed under the plan.
If you have a dial-up connection, consider asking your telephone
service provider to bar access to long distance, international
and premium rate numbers. This will stop you incurring
unexpected charges on your Internet phone account. Of course this
is not so easy to do if your Internet line is also your home phone
line.
Enquire as to whether your chosen provider has a fully
staffed help desk to assist you with any log-on or access
difficulties.
For further media information, please contact TIO Public Affairs on 03 8600 8738 or 0403 601 532.
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