Government To Protect Us From Bill ShockGovernment To Protect Us From Bill Shock

The Federal Communications Commission will be meeting later today and the results could force a shift in how wireless carriers in the US bill their customers. The goal is to reduce or eliminate bill shock for consumers.

Ed Hansberry, Contributor

October 14, 2010

2 Min Read
information logo in a gray background | information

The Federal Communications Commission will be meeting later today and the results could force a shift in how wireless carriers in the US bill their customers. The goal is to reduce or eliminate bill shock for consumers.Bill shock is what happens when you open your cell phone bill and instead of it being anywhere near what you expect, it is several hundred dollars, or maybe several thousand dollars. It can be the result of a kid getting a new phone and blowing through any texting limits the plan has, or a consumer's misunderstanding of how long distance or international calls work. Of course, it might be a result of Verizon Math but those instances are probably relatively rare.

The ability to do this is entirely within the power of the carriers. You can usually call or text your provider and get an instant update on how many minutes have been used, how many texts are remaining or how much data has been consumed. Why, then, can they not alert you when you are nearing your limits? Have a 2GB monthly data plan? There is no reason not to get a text or email alert when you pass up 1.8GB. Paying for a 100 text message plan? There is no reason you cant' get a text, free of course, that tells you you've used up 80 SMS messages.

Well, actually, that isn't true. There is a reason your carrier doesn't do this. They love sending out bills for $700 because your teen chewed through 3,200 text messages in a month. That is so much better on their bottom line than if they had warned you six hours into the month your allotment of 100 was just about up and offering to add a $10 per month unlimited SMS service to your plan.

Bill shock has gotten enough attention at the FCC though that they are considering mandating alerts so consumers aren't alarmed or totally clueless when the bill arrives. The Hill has an interview with FCC Chairman Julius Genachowski about their intentions. Keep your eyes on the news in the coming days. Hopefully a final solution can be reached sooner rather than later.

Read more about:

20102010

About the Author

Never Miss a Beat: Get a snapshot of the issues affecting the IT industry straight to your inbox.

You May Also Like


More Insights