Telco Opposition To Anti-Bill Shock Plans Doesn't Pass The Laugh Test

from the more-confusion? dept

It's been talked about for ages, but the FCC is finally preparing to take on mobile operator "bill shock," that happens when a user, unknowingly, goes way over their allotted time/data and is charged ridiculous overage fees, leading to the ever popular stories of multi-thousand dollar bills. The FCC plans to require mobile operators to at least alert users when they're nearing the limits on their plan. While I'm often skeptical of FCC actions, I'm having trouble seeing what's wrong with this, and the mobile operators protestations are so silly that it's difficult to take them seriously.

Mobile operator trade association CTIA has warned that these sorts of warnings would "cause customer confusion and frustration." Huh? How? And it's already established that it's the crazy huge bills that are causing customer confusion and frustration (and, um, anger). Then there's Verizon Wireless, quoted as saying that "intense competition has led wireless carriers to provide consumers with usage information." Hmm. Information like the phantom charges that Verizon Wireless denied for nearly two years, until it finally 'fessed up and agreed to pay back to the tune of $50 million to $90 million. Honestly, I can't figure out what the pushback is over actually warning customers before they get insane overage charges?

Filed Under: bill shock, bills, mobile phones, telcos
Companies: ctia, fcc, verizon wireless

Mobile Phone Operator Lobbyists Say No Laws Necessary To Prevent 'Bill Shock'

from the because-it-doesn't-happen? dept

For nearly a decade we've been covering stories of people getting bill shock when mobile phone bills show up that are in the tens of thousands of dollars. The issue, of course, is that mobile operators do a dreadful job informing their customers of the fees they may be facing. And, while it would be quite easy for the providers to set up some kind of alert (or credit card-style temporary block) if a bill starts to go outside of the "norm," none of the mobile operators seem interested in doing this.

Over in the UK they've put in place laws to prevent such ridiculous bill shock situations, and regulators in the US are considering the same... but the lobbyists for the mobile operators, CTIA, are protesting that such rules are "unnecessary." That would be a lot more convincing if people didn't send in stories about ridiculous bills every few weeks. CTIA also claims that "Members have adopted internal practices and procedures to remediate billing concerns directly with their customers," but in practice those "remediation" practices seem to basically be "wait until the press starts paying attention, and then finally back down."

Filed Under: bill shock, regulations
Companies: ctia