Subject: [NEXTEL-1] Nextel wrongly collecting undocumented millions from customers

From: [email-masked]
Date: Mon, 21 Jul 2003 01:19:36 -0400

Sanitized-

-------- Original Message --------
From: <Magnificent@B******.gov>
Subject: Nextel wrongly collecting undocumented millions from customers

Nextel wrongly collecting undocumented millions from customers

17 July 2003:

We begin inquisitively examining our current Nextel invoice, in much
the same manner that a chimp examines a banana from all sides --
before peeling and chomping down on it, just because we have nothing
better to do.

It is discovered that there is a dirty little secret embedded within
this and all of our prior invoices since January 2003, when we began
our contract with Nextel.

Under the section "Unit Taxes, Fees and Assessments", there appear
five distinctive charges:

-- Federal Excise Tax............................3.000%......$1.26
-- Federal-TRS Charge..........................0.073%......$0.03
-- Federal-Univ Serv Assessment.........1.168%......$0.49
-- State-Sales Tax...................................6.000%......$2.49
-- Federal-Programs Cost Recovery.......................$1.55

The dollar figure of the above charges are are supposed to be based on
the calling plan you have, plus any additional monies incurred as a
result of going over and above the dollar figure of your specific
calling plan.  

Working under the assumption that the aforementioned percentages are in
fact, correct, and that NO additional *hidden* charges, fees, and/or
assessments are being padded onto the bill at any time there- after, a
careful examination of Nextel Tax Department math is in order.  

Note: We have never gone above our allocated minutes.  We do not use
any additional Nextel services or insurance.  We have never used the
phones to call outside of our home area, and we have never had nor
permitted Nextel to bill us for anything above and beyond our $39.99
calling plan.  So sayeth the seven invoices that constitute the full
and complete history of our relationship with Nextel.  

Based on this $39.99 calling plan that we have on our phones, our
charges appear to have a calculation *error* incorporated within them,
which has been propagated, and thus multiplied from invoice to
invoice, since the start of the contract -- in Nextel's favor of
course.  

While it is possible that the error (if that is what it is), is the
fault of a programming glitches) within Nextel's Tax Department or a
mis-calculation on their employees' part, is yet to be revealed.  

In OUR specific case:

-- 3.000% of $39.99 is $1.20 (just six cents less than what is being
charged)

-- 0.073% of $39.99 is $0.03  CORRECT 

-- 1.168% of $39.99 is $0.47 (just two cents less than what is being
charged) 

-- 6.000% of $39.99 is $2.40 (just nine cents less than what is being
charged)

As of this moment, we do not know if the $1.55 for the Fed-Programs
Cost Recovery is the correct amount that SHOULD be charged to begin
with.  

The total amount of the above charges, according to Nextel is $5.82,
but should be just $5.65, a difference of only $0.17 -- on just one of
our phones.  

Those of you with higher plans and additional charges for added calls
may yet discover a larger discrepancy.  

Assuming that this issue is not unique to our invoice, and further
assuming that Nextel's 11 million plus customers were all in the same
service area as us (being taxed at the same rates as us), and had the
same $39.99 plan (with no overages or other extras), then the picture
of what Nextel is raking in from this is rather striking:   

A *VERY* conservative estimate of Nextel's extra pocket change:

$0.17 x 11,000,000 customers with 
two phones per account = $3,740,000.00

Now, let's compound this by several orders of magnitude and the fact
that many customers have more than two phones -- across Nextel's
global markets with each market having its particular taxes, fees, and
assessments.  If these and other overages -- in Nextel's favor are a
constant across the globe, then a very different picture -- very
different from just three million plus dollars starts to emerge!  

A personal observation

The Enron debacle brought us the term "controlled fraud", a new
meaning pertaining to the secret acquisition and/or movement of
suspicious cash and assets via a paper symphony of astounding
proportions -- for the benefit of _______.  Sometimes this "CF" is
discovered by revelations of discrepancies so small, and seemingly
unrelated, that at first glance, one would be forgiven for dismissing
it without a second thought.  

Does the customer or investor benefit from "found money"?  What
happens when "found money" pops up within the accounting or executive
suites? 

Make no mistake, this happens all the time, in many cases, to the tune
of millions.  

There is (at this time), no evidence that the 'Nextel Mis-Calculation'
is anything more than an innocent mistake.  

A chat with "Nextel" 

We ended up being funnelled into, and communicated with one of the
customer service firms (Denver- based TeleTech) that Nextel out sources
to via IBM Computer Corp.  Our complaint was heard by a *very
specific* "CSR" and his *supervisor/manager* (their specifics are
documented) at the 900 or so employee TeleTech facility on Highway 301
South in Tampa, Florida.  

Both persons we spoke with were pleasant and professional, but sounded
a bit intimidated and awfully over-cautious with us.  Hmmm. At our
request, and not *until* we requested it, both the CSR and his
"manager" at TeleTech have promised to communicate with the Nextel
Tax Department (in writing), and ensure that they:   

1.  Correct the overage(s) for this invoice

2.  Correct the overage(s) for ALL prior invoices

3.  Review/adjust/correct the calculation(s) and/or formula(s) that
are used for the charges in question  

4.  Assure us that this WILL NOT be a recurring issue 

They were informed by us that any failure, on their part, to pay close
attention to item #4, could result in extreme emotional distress --
leading to who-knows-what kind of depression and health related
problems -- all stemming from any lack of swift action on the part of
TeleTech/Nextel and the two individuals to whom we were speaking with.

No one knows, but the possibility exists that these additional issues
might might have to be confronted by Nextel/TeleTech within a legal
forum(s).  

We have informed them (TeleTech) that, in an effort to be of
assistance to Nextel and TeleTech, in expediting the level of
awareness for the needed remedy to this 'issue', we would be going
public with our little discovery -- with all due speed to -- among
others:  

-- Our state attorney general's office
-- The Federal Communications Commission
-- The state Office of Consumer Affairs 
-- The Federal Trade Commission
-- The Usenet, Web Forums and sites, as well as the IRC
-- The news media at large 
-- Elected Representatives

We told them that we are glad to be of assistance, and look forward to
the day when every single one of Nextel's 11 million plus customers
can rest easier, knowing in their minds and hearts at least, that
their wireless carrier's tax department is ontop of things, and that
any and all forth-coming remedies and accommodations will be dutifully
bestowed on the Nextel customer roster as needed.  

Yes...  We indeed are glad to be of assistance -- mostly because we
have nothing better to do.  

Regards,

The Magnificent B***** (Special Counsel to the Inspector General)

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