The parties have reached a settlement apparently valued at approximately $56 million in a class action filed against SBC Communications, Inc., on behalf of current and former voicemail customers in SBC's Midwest region, who alleged that the company misled them by not adequately disclosing the service's true charges. The settlement covers residential and business customers who have subscribed to voicemail with SBC, Ameritech, Illinois Bell Telephone Company, or any of the other Bell companies in SBC's Midwest region (Illinois, Indiana, Michigan, Ohio, and Wisconsin). Claim forms must be postmarked no later than September 1, 2004, to be considered valid.

SBC is sending out claim forms in June 2004 bills that will allow current and former voicemail customers to participate in the settlement. Former SBC voicemail customers who are now with another local phone company also are eligible for compensation, and can get a claim form at: www.CitizensUtilityBoard.org, www.sbc.com/vmclassactionclaimform, or in the Additional Reference section of this article.

The lawsuit alleged that, in addition to paying a monthly fee, few voicemail subscribers knew that they also were charged a local-call fee of about 5 cents every time somebody left a message in their voicemail system. That hidden charge led to huge bills for some customers. Those customers who did not understand that those additional charges applied are eligible for compensation, under the settlement.

The company has agreed to give customers who have had voicemail for more than a year a one-time $15 credit on their phone bills. Those who have had voicemail for six months to a year are due a $10 credit, and a $5 credit goes to customers who have had the service less than six months. The credits should start appearing on bills in September 2004, and be completed by the end of the year. Former voicemail customers who are no longer with SBC will get a check instead of a phone bill credit. The total amount of compensation for Illinois consumers could add up to $40 million, based on the number of subscribers in the state.

State-by-State Requirements

Illinois customers: Most Ameritech/SBC customers in Illinois would have paid per-call charges for their local calls and would therefore be eligible to participate in the settlement. If, however, your local service was billed on the basis of a set number of calls per month (i.e., CallPack) or a flat rate for unlimited local service during all of the period you had voicemail, you must confirm that you exceeded your allotted number of calls under the CallPack (or other calling plan) at least once.

Indiana customers: Most customers who subscribed to Ameritech/SBC voicemail in Indiana are likely not entitled to submit a claim because most Indiana customers subscribed to flat rate service and did not incur additional usage charges as a result of voicemail. If, however, you subscribed to Message Rate service during the time you had voicemail and you exceeded your allotted number of calls at least once, you are entitled to submit a claim.

Michigan customers: Most customers who subscribed to Ameritech/SBC voicemail in Michigan have a Call Plan, and would only be entitled to settlement relief if they exceeded their monthly Call Plan allowance and paid additional usage charges.

Ohio customers: Many customers who subscribed to Ameritech/SBC voicemail in Ohio may not be entitled to submit a claim because many Ohio customers subscribed to flat rate service and did not incur additional usage charges as a result of voicemail. If, however, you subscribed to Message or Minute Rate service during the time you had voicemail and you exceeded your allotted number of calls or minutes at least once, you are entitled to submit a claim.

Wisconsin customers: Most Ameritech/SBC customers in Wisconsin would have paid per-call charges for their local calls and would therefore be eligible to participate in the settlement. If, however, your local service was billed on the basis of a CallPack or a flat rate for unlimited local service during all of the period you had voicemail, you must confirm that you exceeded your allotted number of calls under the CallPack (or other calling plan) at least once.

Claim forms should be sent to:

SBC Voice Mail Claims Administrator
P.O. Box 377770
Chicago, IL 60637-2510

Consumers who have questions about the settlement should leave a message at a special toll-free line set up for inquiries, at 1-800-247-5316.