In a world where connectivity is no longer a luxury but a necessity, the regular telco client believes that the concept of “always-on” data should mean exactly what it implies: constant, reliable internet access. Yet on St. Maarten, customers of the TelEm Group, expressing frustration via social media, accuse the telecom provider of twisting the term “Always-On” into something misleading and exploitative. Customers claim the scheme feels more like a cash grab cleverly disguised as convenience. This has sparked an urgent question: is this practice ethical, fair, and above all, legal?
To get clarity on these questions The Peoples’ Tribune spoke to customers online who have been vocal about the service, we questioned TelEm Group and the telecom regulator Bureau Telecommunications and Post (BTP). While BTP could not make our publication deadline, a follow-up will be published with their take as regulator. TelEm did manage to make our deadline.
For months, TelEm customers have voiced their discontent with the company’s “Always-On” feature, with many describing it as “highway robbery.” This critique is not unique to St. Maarten; globally, similar prepaid “Always-On” data plans have been condemned as a “rip-off”, criticized for their structure, pricing, and poor value to consumers. Compounding matters—and raising serious concerns about legality—is the fact that customers cannot opt out of the “Always-On” feature, regardless of whether they consented to it or not. This however, will change as TelEm explains below.
The Mechanics of “Always-On”
Telem promotes its Always-On Data as a system that ensures customers’ prepaid top-ups provide continuous data connectivity at standard rates. According to the company, mobile prepaid customers are charged $0.10 per 20MB, which is deducted from the customers’ core balance.
However, the scheme’s practical implications have caused widespread dissatisfaction. The main issue stems from customers’ lack of understanding about what consumes data on their phones, coupled with TelEm’s failure to conduct an adequate information campaign around the feature.
While tech-savvy users may know to enable “data saving” options or restrict apps from updating without Wi-Fi, the average customer remains unaware of these settings. Background apps, automatic updates, and constant system processes quietly consume data, depleting prepaid balances overnight. The only practical recourse customers have is to turn off their mobile data entirely, defeating the purpose of staying connected.
Customers Question the Scheme’s Legality
Critics are now questioning whether it is legal for TelEm to enforce Always-On without offering an opt-out option—especially for customers who never requested such a service. Customers argue that TelEm’s Always-On feature appears intentionally structured to drive up spending, with many forced to top up far more frequently than before. The scheme has reportedly been a profitable move for the company, though customers believe it is at their expense.
“Always-On” is Not What it Seems
The term “always-on” evokes a promise—an expectation that a prepaid data connection will remain active and functional at all times. However, what TelEm provides falls far short of this. Unlike competitors in larger markets who throttle data speeds to extremely slow yet functional levels after depletion, TelEm’s connection completely stops when prepaid data is exhausted. Websites fail to load, videos refuse to play, and even basic messaging services become unusable.
Customers describe instances where they have had to top up mere hours or a day after a previous purchase, an unsustainable pattern for many, particularly minimum wage earners who often top up small amounts at a time. For this demographic, the Always-On feature feels weaponized, forcing additional spending while offering no discernible benefit.
Financial Strain on Vulnerable Consumers
The financial burden of the Always-On scheme cannot be overlooked. Prepaid data plans are typically chosen by budget-conscious consumers to maintain control over their expenses. Telem’s Always-On structure undermines this principle, disproportionately impacting low-income individuals who rely heavily on prepaid services for communication, education, and work. Instead of empowering customers with affordable and reliable connectivity, the scheme appears designed to maximize profits at the expense of consumer satisfaction.
The Legal Question
At the heart of this issue is whether Telem’s Always-On feature aligns with consumer protection principles, both locally and internationally. Truth in advertising is a core tenet of fair business practices. Misleading or ambiguous marketing—intentional or otherwise—creates false expectations and is prohibited in many jurisdictions.
Telem’s use of the term “Always-On” teeters dangerously close to this line, as it implies uninterrupted, usable connectivity. However, customers who lose access to data or experience a complete stop in service after depletion are left feeling misled and trapped in an unsatisfactory service. Is this not false advertising? Does this not violate fair business principles?
Furthermore, under international consumer protection frameworks such as the European Union’s General Data Protection Regulation (GDPR), which St. Maarten adheres to, telecom providers are required to offer clear, transparent terms of service. If a service is marketed as “Always-On,” there is an implied agreement that the connection will remain functional under reasonable conditions. TelEm’s failure to disclose the limitations of this service may well breach these regulations.
Adding to the confusion, on Telem’s website under its Frequently Asked Questions section about Always-On, the company addresses what happens when a prepaid plan depletes. The answer states: “There will be no charges.” However, the company fails to clarify that the data connection stops entirely. Customers argue that this omission—whether intentional or accidental—amounts to a misleading play on words, creating further mistrust.
GDPR regulations emphasize the importance of informed consent, meaning that customers must fully understand and agree to the terms of a service. If Telem’s marketing materials are incomplete, unclear, or misleading, then customers’ consent to the Always-On feature may not meet the standard of “informed,” rendering it invalid.
Invited for comment on these issues, TelEm Group said the following:
Why is TelEm marketing its data feature as “Always-On” when customers lose all data connectivity once their prepaid balance is depleted?
The “Always-On” service is designed to ensure customers have continued access to mobile data, even without an active data bundle. As long as there is credit on their mobile phone, they can remain connected, offering convenience and accessibility for essential data use. Customers can choose between two options for prepaid data: activating a data bundle or using the Always-On feature for continuous connectivity.
Do you believe the current marketing of “Always-On” is clear and honest, given that the name implies continuous, uninterrupted access?
The name “Always-On” reflects the principle that customers always have access to data services, provided they have credit available. It highlights flexibility for those who may not have an active data bundle but still want to use data when needed.
Why was there no extensive consumer education campaign explaining how background apps and data usage can drain prepaid balances, especially for less tech-savvy users?
That is a valid concern, and we recognize that not all customers are fully aware of how smartphones use mobile data. Background updates, attachments in messages, or a switch from Wi-Fi to mobile data can occur without the user’s knowledge. Moving forward, Telem is launching a robust education campaign to help customers understand data usage. In addition, we are introducing an “Opt-Out” feature to provide more control and flexibility.
Why is there no opt-out option for “Always-On” data? Will TelEm consider implementing such an option to give consumers more control over their usage?
We’ve listened carefully to customer feedback, and we are pleased to announce that the relaunch of “Always-On” will include an Opt-Out feature. This ensures customers have full control over their data experience.
Has TelEm conducted any studies or analysis to determine whether this service benefits or disadvantages the average prepaid customer?
Yes, we’ve analyzed the impact of “Always-On” and found mixed results. Many customers appreciate the convenience of always having access to data, allowing them to remain connected without purchasing a bundle. Others have expressed concerns about unintentional data usage. We take all feedback seriously and are implementing changes to address these concerns.
Has there been an increase in profit for the company because of Always On? By what percentage?
TelEm is currently conducting a comprehensive analysis to evaluate the financial impact of the “Always-On” service
Will TelEm reconsider the structure or marketing of “Always-On” data based on consumer feedback and growing complaints?
Absolutely. Customer feedback is integral to our decision-making process. As mentioned earlier, we are relaunching the service with enhanced customer education and an Opt-Out option. Our goal is to provide a seamless and positive experience for all users.
Are there any plans to introduce more affordable, flexible prepaid data options that better cater to low-income consumers and their needs?
Yes, Telem is committed to improving both mobile and fixed services. We are in the final stages of integrating a new 3G and 4G mobile core, which will go live in Q1 of 2025. This upgrade will also enable future 5G services.
Additionally, Telem will migrate to a new Billing System in January 2025, allowing us to roll out affordable and flexible prepaid plans tailored to our customers’ needs. These new offerings will ensure better value and enhanced accessibility for everyone.
Source: The Peoples Tribune https://www.thepeoplestribunesxm.com
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