The subject of “bill shock” has been getting an increasing amount of coverage lately. On one side, the FCC and consumer groups are advocating new regulations mandating customer alerts and other information to help customers avoid unexpected monthly charges, or “bill shock.”
On the other side, three wireless industry groups, CTIA, the Rural Cellular Association (RCA) and the Rural Telecommunications Group (RTG), have come out in opposition to the FCC’s proposed mandate.
The consumer view
According to Consumer Reports, bill shock is a common occurrence:
One in five survey respondents reported receiving an unexpectedly high bill in the previous year, often for exceeding the plan’s voice, text, or data limits… half of them were hit for at least $50, and one in five for more than $100.
The industry view
In comments to the FCC, the CTIA maintained that new mandates were not only unnecessary but costly, and that carriers already provided sufficient monitoring tools for customers. In addition, the CTIA argued that the FCC did not have the authority to impose such rules and that they would violate First Amendment protections:
The FCC should refrain from initiating prescriptive rules that not only would likely cost carriers (and therefore consumers) tens, if not hundreds, of millions of dollars to put into practice, but that also would raise numerous legal issues, create substantial implementation challenges, and force companies to upgrade to a set of government standards instead of creatively competing in the provision of service to customers.
A No-Win Situation?
The issue puts carriers in an awkward position. Even if they prevail with the FCC and prevent the proposed mandates, they may still lose in terms of public relations with consumers.
Connected Planet Blogger Susana Schwartz got to the heart of the matter with the question of who is ultimately responsible: the customer or the carrier?
At what point is it too much responsibility to put on the carriers’ shoulders and at what point should people be held responsible for their choices?
Regardless of the answer to such philosophical questions, there are the three key FCC proposals that wireless carriers need to be aware of as the issue moves forward.
Three New Potential FCC Mandates
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- Over-the-Limit Alerts: The FCC’s proposed rules would require customer notification, such as voice or text alerts, when the customer approaches and reaches monthly limits that will result in overage charges.
- Out-of-the-Country Alerts: The FCC’s proposed rules would require mobile providers to notify customers when they are about to incur international or other roaming charges that are not covered by their monthly plans, and if they will be charged at higher-than-normal rates.
- Easy-to-Find Tools: The FCC’s proposed rules would require clear disclosure of any tools offered by mobile providers to set usage limits or review usage balances. The FCC is also asking for comment on whether all carriers should be required to offer the option of capping usage based on limits set by the consumer.
How will these proposals affect your business? Let us know your concerns. We’ll keep a close watch on this issue as it develops and keep you posted.