Verizon policy change upends data-driven iPad relationship

I knew I'd find that handy while traveling or at events such as South by Southwest Interactive, when I'm working off a laptop and need a reliable  data connection. And at data-depleting events like that, it doesn't hurt to have devices on two separate LTE networks in case one of the networks is overloaded or running slow.

The $30-a-month data fee for two gigabytes of data seemed a bit much on top of what I was already paying for phone data, but when I asked at the Verizon store as I made my purchase, I was told I could suspend my account for the months I wasn't using LTE service. That seemed like an ideal compromise. I didn't even mind paying $130 extra for an iPad model with LTE capabilities built into it. It seemed like a good investment.

All was fine for a long time. As phone and Wi-Fi networks improved, even at hotels when I traveled, I needed the iPad's data connection less and less. I kept paying $30 (plus fees, so really about $35) most months. When I had no trips or conferences coming up, I'd put the LTE plan on stasis for a few months at a time until it looked like I might need it to be active again.

Things were fine for almost four years. A few times, I went over my 2 GB-a-month limit if I was traveling and streaming video (kids and YouTube; a roaming data combination that doesn't mix well), but that typically didn't happen. One month last year, when Apple released an iOS update that disrupted my device's Wi-Fi services and caused my entire photo library and other data to be synchronized over LTE, I had a huge overage charge. But once I tracked down the source of the problem, I realized it was Apple to blame, not Verizon, which had accurately billed on a huge bummer of a data drain.

So what could end such a low-maintenance marriage of convenience? I was a happy customer. Verizon got its $35 more months than not on a device that had long aged out of the typical two-year upgrade cycle.

This year, on March 25, a few weeks after SXSW Interactive, I suspended my LTE service, putting the iPad into data dormancy. In April, I got billed the usual amount. I paid it, thinking that maybe this was for the previous month's data and that the suspension just hadn't caught up to my account yet.

Then I got billed again for $35 in May. For data I didn't even have access to use. That's when I took a closer look at my bill and did an online chat with a Verizon representative.

Something had changed. Not my account, which was the same as it ever was. Apparently Verizon had adjusted the amount of time a customer could keep their account suspended per year to 180 days. That meant I could be charged the full monthly amount even if I wasn't using data. Even if my device wasn't even connected in a way that I could use the data even if I wanted to. And the change happened with no warning.

That seemed wrong and I let the online chat rep, Kelly, know. This is part of the transcript of that conversation:

Hoping to save the account, Kelly offered me a billing alternative, one that seemed much worse:

As this was happening, I Tweeted some what was going on...

Kelly offered me a $20 account credit against the $70 I'd been overcharged (leaving me with a $10 balance I'd still need to pay off for data I never used). She gave me a contact phone number for pre-paid billing and they told me the same thing; there was nothing they could do but charge me $45 a month (plus fees), instead of $30 a month (plus fees) for the same amount of data, combined with the freedom to suspend my account whenever I wanted, something I was already able to do for four years without a 50 percent price increase.

I said no thank you even as I was being contacted via Twitter by Verizon Support.

I also got an email from a regional Verizon representative. Due to the change in company policy, there was nothing the Twitter helper or the regional rep could do; it was either pay $45 and more a month to use LTE on my iPad or cancel the account.

Then things got even more interesting. The next morning, I received a phone call from someone out of Verizon's media department. The person offered me a $30-a-month credit for six months, which would allow me to forego any fees at all to stay on the same plan and continue as a Verizon customer.

That seemed great, but also wrong. I asked if this was being offered to me because I was in the media or if this was an offer that anyone with the same billing issue could call and receive. I was told no, this was just an offer for me, not one that all Verizon LTE customers would be able to receive based on the company's policy change.

I turned down the $180 offer. I did allow them to clear that last $10 from my now-canceled LTE account to be done with the whole affair and move on with my life. I'd spent several hours dealing with a billing problem that had never been an issue in four years of service.

Now, I have an iPad that could theoretically work on another carrier, but which I may just keep in Wi-Fi at home and at work for the time being.

Like the dad that I am, I'm not even mad at Verizon. They are a business and are free to make changes in their billing practices that they feel will build their business and grow revenue. I get that. But I am disappointed.

We had a good thing going, I thought. I was using very little data each year and paying the full monthly price more often than not. I was a low-maintenance customer. At some point in the future, I was probably going to upgrade my iPad and I likely would have opted to go with the same plan with the same carrier.

That's not something I'll consider now, even if the policy were to revert to the way it was. I don't trust the company's data plans anymore, nor did I appreciate getting hit with a billing change with no notice.

It's often the little things, the corner cutting that may add a few dollars to the bottom line, that can alienate a loyal customer forever. They teach you that in business school, I bet, and it's a lesson that service-driven companies should never, ever forget.