Push To Kill Mobile Bill Shock
October 18th, 2010 | by Mobile Data Group |Mobile carriers would be forced to notify customers before slugging them with excess usage fees and other extra charges under tough new rules being considered by the Australian government and regulators.
The US communications regulator, the Federal Communications Commission (FCC), has proposed new laws aimed at dramatically reducing “bill shock”. These have been supported by Australian regulators but the mobile industry is already fighting back against any extra regulations.
The changes, expected to come into force within months, will require carriers to alert consumers when they near their monthly quota for voice, text and data services. The alerts, sent by text or voice message, would also apply to other extra charges such as international roaming fees.
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Also being considered by the FCC is the ability for customers to opt for “hard caps” on their post-paid plans which will limit their spending to a pre-determined amount. The Australian Communications Consumer Action Network (ACCAN) is demanding similar options for Australian consumers.
“Most people still don’t know what a megabyte is, so it’s hard to expect them to know when they have reached their limits,” FCC chairman Julius Genachowski told The New York Times.
The Australian Competition and Consumer Commission (ACCC) said it was concerned about bill shock and that the way carrier’s measured and communicated data usage was not up to par. Inadequate metering, complex pricing by carriers and roaming charges could lead to unexpectedly high bills for consumers, it said.
“The ACCC sees benefits in the approach proposed by the FCC,” an ACCC spokeswoman said.
“The ACCC’s concerns about data measurement typically concern the carrier’s efforts to communicate data usage and generally relate to the clarity and accuracy of usage meters provided by service providers. The availability of real time information as to actual usage would be a very helpful tool for consumers in this regard.”
But the ACCC said if the FCC’s scheme were adopted in Australia it would need the Federal Government to change legislation.