Survey reveals 1 in 6 mobile users have experienced bill shock

The Federal Communications Commission (FCC) has  released the findings of an agency survey on the basis of consumer mobile experience. The survey is aimed to know how many Americans experience “bill shock”, and whether  ETF’s (Early Termination Fees) have an effect on consumer choices to stick with a carrier after the consumer has experienced unexpected fees added to their bill.

If you are unfamiliar with bill shock, it is a term used to describe the negative reaction a subscriber can experience if their mobile phone bill has unexpected charges added.

Continue reading to look at the results from the survey >>> According to the survey conducted by Abt/SRBI and Princeton Survey Research Associates, They found that of the 30 million Americans who have experienced bill shock, 4 out of 5 ( 84%) said their mobile carrier did not contact them when they were about to exceed their allowed minutes, text messages, or data downloads. In addition, they found that nine out of ten (88%) said their carrier did not contact them after their bill suddenly increased. Of the respondents, more than a third of people who experienced bill shock reported that their bills increased by at least $50, and one out of four (23%), said the increase was $100 or more.

 It is clear that mobile carriers must take appropriate action by notifying users when they are about to exceed their allowed minutes, messages and data. Mobile carriers can also take the initiative to contact subscribers even after their bill has suddenly increased. The effort to  prevent bill shock from happening comes from subscribers as well. Users have to take precaution when using their mobile phones internationally because of certain roaming charges involved. Subscribers must also choose an appropriate data plan because if a user massively overuses their data applications, bill shock can occur, and charges can be added.

Abt/SRBI and Princeton Survey Research Associates also asked consumers about (ETFs) for cell phone and broadband service. Of the respondents with personal cell phones, about one out of two (54%) stated that they would have to pay an ETF if they decided to terminate their contracts before the expiration date. One in five (18%) did not know whether they would have to pay or not. Of those who are subject to an ETF, two out of five (43%) said it was $150 or more, but (47%) did not know how much it was.  An explanation for the confusion comes down to the billing practices, where only about a third (36%) of cell phone customers who are familiar with their bills said that they include “very clear” information on ETFs. The survey revealed that ETFs are one factor that can prevent cell phone customers from switching carriers, even when their service is not ideal. Two out of five (43%) of these customers said ETFs were a major reason they would stay with their current service.

Joel Gurin, Chief of the FCC’s Consumer and Governmental Affairs Bureau said, “As we know from our consumer complaint center, even an unexpected charge of $20 or $30 can make a difference to many people. We’re confident that we will be able to work with both wireless carriers and public interest groups to help consumers avoid these unwelcome surprises.”

With a little extra effort from both mobile carriers and subscribers, bill shock and other unexpected expenses can be reduced, if not completely diminished. Good job by the bureaucracy and FCC for stepping in and taking notice of this problem that has affected 30 million Americans, now it is time for them to take action and put some regulation into the outrageous policies that hardly get explained.

 Source: FCC