Dear Jycnan: Thanks for the informative post. Here is a quick summary of the key points regarding "midnight data usage" and other unknown data charges. All of this info has been posted previously; I hope this recap is helpful to new visitors:
> Large data charges around midnight: As Lawrence noted, AT&T's billing system was designed to 'roll up' data charges collected from multiple antennas during the day as the user moves around, and an aggregate charge is posted to your bill at the end of the day. That said, we encountered two anomalies in AT&T's bills: (1) If you disable cellular service at night, these big aggregate charges do not arrive -- ever. (2) Large data charges hit our son's account when he was in the hospital, with the phone unused, powered off and uncharged -- and again when he was away at camp. Both are curious, to say the least. You can draw your own conclusions...
> How to avoid large data charges around midnight: You must disable cellular service around midnight. This is not as simple as it sounds with the iPhone. You must disable cellular service AND plug the iPhone into a charger, or it will automatically revert to the cellular connection. The simplest option is to enable "Airplane mode" and shut down all connectivity. This completely eliminated the mystery midnight data charges on our son's account.
> How to track data usage: To understand what is actually going on, you must install a "data usage monitor" app or service. We use the Dataman Pro app from Xvision and Onavo -- which compresses and tracks data usage via a server link. Why two apps for the same purpose? This gives us two independent data reports, which are invaluable when you need to negotiate with AT&T. It is difficult for AT&T to argue that both are wrong, if you find a discrepancy. The cost is minor compared to the refunds.
> Hidden data hogs: AT&T's customer service / tech support team will almost always blame apps that transmit large amounts of data -- that you may not be aware of. They are often correct. Here are two examples: (1) YouTube and other 'video chat' and video / music apps -- which can send / receive enormous amounts of data. Our son did not appreciate this issue, until I explained the logarithmic increase in data volume created by video. (2) Some apps receive / send more data than you expect. We found that TextFree, for example, keeps sending data-heavy ads -- even if you buy the 'no ads' subscription! The ads are simply hidden, but the data charges continue to hit your account. The answer is data monitoring apps like Dataman Pro and Onavo. You will be able to detect which apps are gobbling up data and hitting your AT&T bill.
> How to negotiate with AT&T: First, be polite and diplomatic. I can't imagine how much stress the AT&T reps must handle, from irate customers. Second, have your facts ready. Ideally, try to create a report with a month of data logs from Dataman Pro and Onavo, which you can download to Excel in CSV format. Make sure the start / end dates align with your AT&T billing period, which does not start on the 1st of the month. Tell the AT&T rep that you would be happy to email a copy to them for review. Third, ask to speak to a supervisor if the rep cannot resolve the issue. Depending on the amount of the credit your are requesting, reps may not be able to authorize the refund. Fourth, make sure the rep provides the "issue" number and ask him / her to add the details of the problem to your billing record. You may get disconnected, and this helps to avoid repeating the entire process. The record also helps if the problem recurs.
In AT&T's defense, they kindly offered to refund all of the 'mystery' data charges we found and documented on our son's iPhone -- multiple times. Diplomacy and documentation work.
As a result, however, we will switch to Verizon when our son's contract expires. These problems are costly, irritating and time consuming. I hope AT&T is listening; they can do better.
Mark Hays