According to a Federal Communications Commission-sponsored survey on the consumer mobile experience released Wednesday, one in six mobile users in the United States has experienced a sudden increase in monthly bills not attributable to a change in service plan. What’s more, nearly half of cell-phone users with plans subject to early termination fees have no idea of the amount they would have to pay should they decide to switch services.
As part of an official proceeding introduced last year, the FCC has been examining the early termination fee (ETF) policies of the major U.S. wireless carriers. The ultimate goal, noted FCC Chairman Julius Genachowski, is to establish industry guidelines that empower consumers to make smart, informed decisions on communications services.
“The wireless industry has achieved remarkable innovation, but there is still more that can be done to help customers navigate what is sometimes a confusing marketplace,” Genachowski said. “A simple and easy-to-understand mobile purchase and billing process will empower consumers to avoid bill shock and other unexpected fees.”
An Important Snapshot
Earlier this month, the FCC’s Consumer and Governmental Affairs Bureau asked for public comment on possible solutions for preventing bill shock. The FCC said Wednesday that its survey supplies essential data about the consumer experience that clearly demonstrates a need for mobile billing reform.
Of the estimated 30 million Americans who have experienced mobile bill shock, 84 percent said their mobile carrier didn’t contact them when they were about to exceed their allowed minutes, text messages, or data downloads. Moreover, 88 percent of the respondents said their carrier failed to contact them after their bill suddenly increased.
The survey found that young people and parents with minor children living at home are more likely to experience mobile bill shock than other cell-phone users. One-fifth of respondents between the ages of 18 and 29, as…