A key U.S. Cellular executive apologized for billing problems that have left some of its Wisconsin customers frustrated and angry and said the problems won’t botch the company’s launch of the iPhone and other Apple products Friday.
Chief Marketing Officer David Kimbell said issues such as customers receiving incorrect bills and incorrect notices of past-due amounts are being ironed out as the nation’s fifth-largest wireless carrier implements a new records system.
“It has been disruptive, for sure, and particularly for a small segment of customers that had experiences that were nowhere near what we would want them to be for a company that prides itself in customer service,” Kimbell said.
“For those customers, it’s very frustrating. We are working day and night, tirelessly, to make sure we are getting it right for them,” he added.
Since it launched a new billing system in July, U.S. Cellular has received complaints that range from multiple bills issued in a short period of time to phones not being activated, or being turned off, because of company errors.
On Friday, the company will launch the iPhone and other Apple products in a move that’s expected to attract thousands of customers and phone orders in a very short period.
“We are fully confident” that the launch won’t be spoiled by the billing problems, Kimbell said, adding that customer service representatives have the tools and information they need to address any issues.
Problems costly
U.S. Cellular issued $10 million in customer credits in its recent fiscal quarter, as a result of billing system issues, and it lost 71,000 subscribers in the period.
The company needs the iPhone to remain competitive with other wireless carriers, and it must fix the billing system problems, said telecom industry analyst Jeff Kagan.
“Just offering the Apple products isn’t enough. You have to deliver the whole package, which includes billing and service,” Kagan said.
U.S. Cellular says the problems with its new system will be resolved by the end of the month and says the system was needed to replace a 15-year-old operation that lacked some of the latest capabilities.
“It will open up a lot of new opportunity that will allow us to customize and create new experiences for our customers. So we are as excited about that as much as we are pained and personally frustrated by the experiences some customers have had,” Kimbell said.
The company says it has waived late fees and taken other steps to compensate customers who have experienced problems with their bills and service.
“We are completely focused on getting this right. We are sorry that customers have had experiences that haven’t lived up to their needs or expectations,” Kimbell said.
Incorrect billing
Some customers say the apologies are meaningless if they’re not backed up with actions that resolve their disputes immediately.
“I went through a three-month ordeal that’s still not over. They were sending replacement phones that couldn’t be activated and phones that didn’t work. And they blamed everything on the transition to the new billing system,” said Tony Esposito, a freelance marketing consultant from Fond du Lac.
Esposito had a rough go-around with the company’s system. He didn’t receive any phone bills for three months, from July through October, and when a bill arrived on Oct. 8 it was for about $750 and included a past-due notice for two months of service.
His bill also contained incorrect international charges and other charges with no explanation, Esposito said, and he refuses to pay the bill until it’s straightened out.
Activation issues
Changes to price plans, or phone activations that used to take minutes, in some cases have taken days or weeks, according to a U.S. Cellular customer service representative who is not being named because it could jeopardize his job.
“To add to possible ongoing and future woes, they also did a complete change of calling plans, the third time in three years,” the customer service representative said.
Some accounts were mysteriously suspended or canceled during the launch of the billing system, according to the customer service rep, and there were entire days when the system was unavailable to employees, retail stores and customers.
“Many current customers feel U.S. Cellular better have a big ‘We’re sorry’ offering very soon, or else,” he said.
The 30-year-old company has been through a lot as well, according to Kagan.
“U.S. Cellular has stayed away from the iPhone, until now, because of Apple’s tough financial demands. They thought they could do just fine without it, but there are bigger problems for the business that come from not offering it. Kenneth Meyers has only been CEO of U.S. Cellular since June, but I have been impressed so far. Let’s hope he can repair the company and lead it to growth once again,” Kagan said.
Launch set
U.S. Cellular says it will sell the iPhone 5s, the 16 GB model, for $199.99 -a price that requires a customer to sign up for a new two-year service contract with a data plan. A $35 activation fee also is required.
The company’s stores are expected to be packed with people wanting the latest Apple products, including the new iPad Air and iPad mini with a Retina display.
The risk of losing customers from not having the iPhone is greater than the risk of losing them from billing system problems, said Terence Ow, an information technology professor at Marquette University.
Milwaukee Journal Sentinel (WI)
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