Last week, we ran a story titled “How Straight Talk’s TOS Makes Most iPhone Users Criminals,” which criticized low-cost wireless carrier Straight Talk’s “unlimited” iPhone plan for having hidden restrictions. Straight Talk asked to respond, and here’s the carrier’s response in full. I’ve also put my brief response to Straight Talk’s response, below. – Sascha Segan

iPhone on Straight Talk the Most Affordable iPhone Plan on The Market

Straight Talk’s newest offering pairs the Apple iPhone with Straight Talk’s Unlimited* Talk, Text and Data Plan. Straight Talk has finally made the iPhone affordable and accessible to a large group of consumers who either could not qualify or afford traditional iPhone plans. It is the best and lowest priced iPhone service plan currently available on the market on Straight Talk’s iPhone Unlimited* Talk, Text and Data service plan on the nation’s largest CDMA network for just $45 per month. The iPhones can be purchased with a Walmart Credit Card for $25 a month fixed payment, no interest special financing offer.**

Of course, consistent with industry practice and standards, Straight Talk’s Unlimited* Service is offered subject to terms and conditions of service.  The terms and conditions are posted and available for review on the Straight Talk website at www.straighttalk.com(Opens in a new window).  The service is intended for regular, personal use by individuals.  It is not intended for certain commercial uses that would result in abnormally high data consumption as compared to the data usage of a typical iPhone consumer.  Tethering the phone to other devices is currently prohibited.  However, there is no prohibition against downloading movies, watching live TV or other live video (uninterrupted continuous video streaming, such as round-the-clock live web cams, is prohibited due to the negative impact on other customers’ experience).

A customer does not have to use the Straight Talk Portal to access the internet.  With the Straight Talk iPhone and BYOP (Bring Your Own Phone) products, customers may use the Safari browser or any other browser they choose to access the internet just like they would with any other service provider.

Straight Talk does not “boot” customers who are above average users.  In fact, most of our customers enjoy their unlimited data plans with no issues or complaints regarding their data speeds or service.  A small number of data abusers or consumers engaged in an unauthorized use (such as tethering) are subject to deactivation if their unauthorized use continues after warning.

Consistent with best industry practices, Straight Talk is constantly monitoring its customers’ data usage patterns to detect users engaged in an unauthorized use in order to ensure that all customers enjoy a quality experience.  Unlike the rest of the industry, however, we do not have fixed thresholds for throttling or deactivation like some of the other carriers.  Rather, we are continuously monitoring our customers’ usage and will adjust thresholds as necessary in order to maximize all of our customers’ experience.

Most customers who experience throttling of their data service are engaged (knowingly or unknowingly) in one or more unauthorized uses that are described in greater detail in our terms and conditions of service.  Two examples of the most common unauthorized uses are tethering the phone to other devices to access the internet or continuous, uninterrupted live video streaming (such as live webcams). Customers engaged in an unauthorized use will receive a warning and the opportunity to troubleshoot their usage patterns to identify and correct any problems.  If problems are identified, customers will be given recommendations to improve their data experience (for example, for continuous video streaming and other high data consumption activities, customers will be advised to use Wi-Fi where available). 

Straight Talk offers a great product at an affordable price.  Straight Talk has made the iPhone available to a number of consumers who cannot afford a traditional iPhone plan. The vast majority of Straight Talk customers enjoy their service with no complaints or issues regarding the data service. 

*Tethering is prohibited.  Other restrictions apply.  See Terms and Conditions of Service for full details.

**Available through Walmart’s special financing plan.  Buy an iPhone 5 for $649 in-store and pay $25 in fixed monthly payments for 26 months on your Walmart Credit Card (Total cost = $649).  No interest until paid in full.  Valid January 1, 2013 – April 30, 2013.  Certificate required.

My response: I’m very happy to see Straight Talk give such a clear and customer-friendly statement. However, the response above directly contradicts the legally binding terms of service(Opens in a new window) Straight Talk customers must sign, specifically the first and third paragraphs of section 6.  That leaves me unsettled as to what to believe: the answer that Straight Talk is giving in public, or the contract its users must sign in private. Changing the terms and conditions to reflect what Straight Talk says above would be an excellent next step. -SS