FCC To Combat 'Bill Shock' By Making Wireless Fees More Transparent

Have you ever been shocked by a sudden increase in your cell phone bill? One in six of us have, according to the Federal Communications Commission.

"Bill shock," which the FCC defines as a unexpected rise in cell phone costs, has taken a toll on 30 million Americans who have incurred extra charges either due to roaming fees or exceeding their limit of monthly minutes, text or data usage. And 88 percent of the time customers were not alerted by their carriers that they were incurring overage fees, according to the FCC.

This all might change.

CTIA-The Wireless Association, a nonprofit that represents the wireless communications industry, and the FCC have asked wireless carriers to sign on to a policy that will require participating carriers to send free alerts to help users avoid average fees. According to the FCC:

In agreeing to honor the code, the carriers have committed to provide two alerts to subscribers when they are about to incur overage charges: one when they approach, and another when they exceed plan allowances for voice, data and text. Alerts will also be sent when subscribers are about to incur additional international roaming charges after their devices have registered while traveling abroad.

The alerts will go out starting October 2012.

The FCC has launched a new website to help make clear which wireless carriers have agreed to the new policy.

So far, AT&T, Verizon and T-Mobile have committed to the policy. AT&T will alert customers regarding their data usage. Verizon will alert customers regarding their data and international roaming usage. And T-Mobile will send alerts to customers about their voice, data and international roaming charges. A number of carriers including Sprint have not yet reported their new policies to the FCC.

Have you tried to resolve a bill dispute with your carrier and failed? The FCC wants to hear from you. Call them at 888-225-5322 or log a complaint online.

Alerts or no alerts, it's important to monitor your wireless usage on your own. And if you're traveling outside your coverage zone, be mindful of roaming fees. Here are some tips to avoid paying exorbitant fees when you're traveling:

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• Download Free Calling Applications

  All you need is a local wi-fi connection for the many downloadable applications on your computer and smartphone: <a href="https://login.skype.com/account/signup-form?application=download&return_url=http://www.skype.com/go/buy-credit?flow=join&intcmp=join" target="_hplink">Skype, </a> <a href="http://www.viber.com/" target="_hplink">Viber</a>, and <a href="http://www.whatsapp.com/" target="_hplink">WhatsApp</a> are just a few. photo by <a href="http://commons.wikimedia.org/wiki/File:Skype_meeting_ayvak_%26_nancyajones_2008oct16.jpg" target="_hplink">Nancy Jones</a>

• Don't Stream Music Or Movies

  The hefty charges incurred from streaming data via your wireless network when you're outside your data roaming zone can <a href="http://www.huffingtonpost.com/2012/02/06/john-gibson-netflix-canada-bill_n_1258190.html" target="_hplink">result in a post-vacation nightmare.</a> photo by <a href="http://www.flickr.com/people/brymo/" target="_hplink">Bryan Gosline</a>

• Disable Cellular Auto-Check Function

  Turn off the function that makes your phone automatically update applications and receive emails. Wireless provider AT&T offers <a href="http://www.wireless.att.com/learn/en_US/pdf/Travel-Tips.pdf?source=ECV4IS0000000000U&wtExtndSource=wirelesstraveltips" target="_hplink">these instructions</a> on how to disable auto-check for different smartphone devices.

• Turn On Airplane Mode

  Turning on this function will enable you to use the camera, video, games and music capabilities on your device without incurring charges from accidentally picking up network signals. (h/t <a href="http://www.telegraph.co.uk/finance/personalfinance/consumertips/8617180/Roaming-charges-save-money-phoning-home.html" target="_hplink">The Telegraph</a>)

• Switch Off Data Roaming

  This will disable your device from streaming data when you're outside your zone, but will still allow voice calls. AT&T provides <a href="http://www.wireless.att.com/learn/en_US/pdf/Travel-Tips.pdf?source=ECV4IS0000000000U&wtExtndSource=wirelesstraveltips" target="_hplink">instructions</a> on how to turn off data roaming functionality on smartphones.

• Obtain A Local Phone For Another Country

  Renting a local phone might be a cost-effective option if you're making an extended trip to another country. (h/t <em><a href="http://online.wsj.com/article/SB10001424052702304331204577351824213467562.html" target="_hplink">The Wall Street Journa</a>l</em>)

• Buy A Wi-Fi USB

  A portable wireless adaptor will allow you to create your own wi-fi connection through your computer. (h/t <a href="http://online.wsj.com/article/SB10001424052702304331204577351824213467562.html" target="_hplink"><em>The Wall Street Journal</em></a>) photo by <a href="http://commons.wikimedia.org/wiki/User:Qurren" target="_hplink">Qurren</a>

• Find An Affordable Abroad Plan

  Call your phone provider to find out different wireless package options. Some companies offer reduced rates if you change your plan before traveling. (h/t <em><a href="http://online.wsj.com/article/SB10001424052702304331204577351824213467562.html" target="_hplink">The Wall Street Journal</a></em>)

• Get A SIM Card For Unlocked Phone

  If you can unlock your phone or buy an unlocked cell, replacing your removable SIM card to a local one will enable you to use the wireless network in another country. (h/t <a href="http://online.wsj.com/article/the_middle_seat.html" target="_hplink">The Wall Street Journal</a>) photo by <a href="http://commons.wikimedia.org/wiki/File:Iphonesimcard.JPG" target="_hplink">Luke2511</a>

• Don't Make Outgoing Calls

  The price of incoming calls are frequently much less than the cost of outgoing. If that's the case with your plan, ask your friends and relatives to call you while you're travelling. (h/t <a href="http://online.wsj.com/article/SB10001424052702304331204577351824213467562.html" target="_hplink"><em>The Wall Street Journal</em></a>)

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Comments

[edejan]

08:25 PM on 04/23/2012

Nope. Went prepaid a couple of years ago. It's the only way to go.

[mamacat]

05:56 AM on 04/25/2012

Me too. Half the price of one of the majors, and no way I'm going to get hit with hidden fees. All they can do is turn off the service, which has never happened.

[OpenetChris]

04:47 PM on 04/23/2012

The FCC’s “bill shock” website is a critical initiative in the effort to provide customers a better wireless experience. This is a major step in the right direction because all operators will now be held accountable to offer the tools that subscribers need to manage usage within the bounds of their own data plans and resources. In addition to its proposed rules, the FCC’s website is bringing us one step closer to preventing bill shock in the U.S. and towards the rules enacted by the European Union (http://arstechnica.com/telecom/news/2010/03/eu-cracks-down-on-bill-shock-roaming-horror-stories.ars)

Thankfully, technology (http://openet.com/offerings/products/engagement-engine) is currently available that enables operators and subscribers to monitor usage as it happens, and easily inform them, via voice, SMS or email, where they stand against usage caps. These types of alerts also gives power back to the subscribers and allows them to purchase temporary bumps in data or voice minutes or reduce usage should they need to.

It is fair to say that consumers want and need to be in control – to know what is going on with their plans and to be able to exercise control when necessary. With the implementation of the “bill shock” website, I applaud the FCC for urging wireless providers to take advantage of the available tools, and in turn, empowering subscribers, in the immediate future.

Chris Hoover
VP of Product Management & Marketing
Openet
www.openet.com

[ProudToBeVeryLiberal]

10:53 PM on 04/22/2012

In Europe, Japan and Korea people get much better cellphone service for a lot less. No such thing as a "locked" phone: any phone works with any carrier. Plenty of prepaid options too, which won't cost you a dollar a minute like here... True competition = lower prices = better service. And you know why? Because of **REGULATION.** Because the governments didn't let 3 mega-corporations create an oligopoly and coIIude to extort exorbitant prices out of their customers, like it happened in this country.

[lfluty2]

06:31 PM on 04/22/2012

my wife and I have been going through this for months.

It kills me to spend over $150 a month on 2 phones that end up being $180+ after taxes and other little goodies.

Verizon tells us we HAVE to have the $30 plan with our two iphones... so there is $60.... throw in the plan, texts and taxes... boom $150+

I used 38 minutes last month not including mobile to mobile... and im a business owner.

I keep thinking i could buy a car with the $200 im wasting a month.

True I could give up my iphone and go back to a regular one.. but I really like the apps I use for my photography and the kids like watching netflix when im alone shopping with the two of them.

I know its a silly problem to have... but it is probably the most frustrating thing in my life right now (guess i should feel blessed huh?)... i just feel this is wasteful and could be put towards kids college or retirement.... i mean.. thats over $2000 a year just gone.....

Uhh... ok.. end of my rant....

[mamacat]

05:57 AM on 04/25/2012

Throw them away, when the plan is over, and get a prepaid.

[randinoel]

12:35 PM on 04/21/2012

In one way, if you have a cellphone and read the terms, you would simply check your data every week or so, or check your minutes usage. In another sense- its a PHONE. If you are paying for unlimited everything, I dont feel sorry for you. Then, it becomes a LUXURY.

[mrpotatohead]

01:03 AM on 04/22/2012

Read the terms? Please. You've never read the terms.

No one who's ever been on a date has read the terms. Hell, I doubt the lawyers have read the terms.

[Savage Saint Roger]

11:04 AM on 04/21/2012

I switched to MiFi leaving Hughes Net. Big mistake! It is only costing me $18 more a month to save the $19 lower Verizon fee. When this BS contract of legalized telephone company extortion is over Verizon will become history in this house!!!!

[Tony Twohill]

10:29 PM on 04/21/2012

I have a pay as you go with a tracfone subsidiary. I paid $49 for a refurbished Nokia unlocked E71. I pay $45 a month for unlimited everything (another 45 for my wife's plan too). My wife spent 150 on a nice Samsung with Droid Honeycomb. We were paying 150 a month total for the both of us AND we each spent 50 on Palm Pixie's up front. So now we're saving 620 over the whole year and no contracts, no overages, no slowing down my data or anything else. I'm never going back to a big carrier. EVER.

[mrpotatohead]

12:57 AM on 04/22/2012

I am stunned to see what people are willing to pay for their Verizon contracts in order to play angry birds and check Facebook.

Transparency is a good thing, but it's trivial relative to the fact that cell service is outrageously overpriced due to monopoly status.

[django707]

06:33 PM on 04/22/2012

Where does one go to get the same deal you got?
What's a tracfone susidiary? $45 a month for unlimited everything?
More info, please!

[Tony Twohill]

10:31 PM on 04/21/2012

OH, and our big carrier was going to raise rates on our plan if we renewed AND add a ten dollar fee for each smart phone on the plan, which would have been two.
So we're saving even more than I reported by not renewing with the big carrier.

[Cailleach Echo]

11:23 PM on 04/20/2012

I dumped ATT because they give money to the Repubs and because they managed to sneak weird charges in every single month.

CREDO - the only way to go.

Affordable, fair, easy to deal with, great phones.

[Johnangry]

12:19 PM on 04/21/2012

ATT, T-mobile, Verizon, and now Sprint suck. I stopped using the cell phone altogether.

[ProudToBeVeryLiberal]

10:39 PM on 04/22/2012

CREDO is an MVNO. It uses the Sprint network, which IMHO sucks pretty badly.

[gregk555]

10:44 PM on 04/20/2012

I'm bending over every month with ATT. I used to say "Thank you sir may I have another" but anymore I want to kill it and go with a pay-by-the-month plan. In our house it's gotta be about cutting expenses.

[robinhood1]

02:31 PM on 04/21/2012

I have gotten my cellphone bill down to $10 a year, with a single prepaid card annually from T mobile. I still have carry over minutes from years ago when I bought larger denomination cards. I just use my cellphone for emergencies and special occasions. I deactivated voice mail when I got the phone. People can call my landline and leave a message if necessary.

When you use your cell phone in a foreign country, all bets are off. I have used mine in Canada but only for brief calls. If you want to watch Netflix on your smartphone in a foreign country, you are just asking for trouble.

[JosephTX]

10:38 PM on 04/20/2012

I've noticed that us little people just have to obey the law, while the big guys are just asked to agree to do what the regulators ask. I wonder how much in tax breaks each company gets for agreeing to give up one of many means of taking advantage of their customers.

[FirstGame72]

10:51 AM on 04/21/2012

Laws "on the books" are always meant to be applied equally to all citizens. In reality enforcement of those laws rarely have been or are.
"Who you are" is always more important than "what you are" in America.

[Jarrod38]

10:15 PM on 04/20/2012

that why in November I'm not renewing with ATT and just use a pre paid phone.

[blueeagle87]

06:01 PM on 04/20/2012

Mine is always the same, but I can't stand the price of it. It's $109 a month, for the simply everything plan, with Sprint. I am about to get a new phone service. Sprint is not worth it.

[robinhood1]

02:33 PM on 04/21/2012

Get a prepaid service and treat it like a luxury. See my other comments.

[blueeagle87]

02:59 PM on 04/21/2012

I could do that. I could get a house phone and have a prepaid service for emergencies, like if my car broke down.

[Dan Pierce]

05:57 PM on 04/20/2012

Love the stock photo.

It looks like she just saw 2 girls, 1 cup.