As cell phone companies look to the future there will be fewer customers with unlimited data plans. The days of $30 unlimited plans will eventually disappear and somehow we will have to track how many megabytes and gigabytes of data have been transferred to watch videos, send emails, etc. This is not quite as easy and clear cut as tracking minutes and could result in some pretty big cell phone bills. Lucky for us – our government representatives are paying attention to this issue and as a result Senator Udall (D. – N.M.) has introduced the Cell Phone Bill Shock Act of 2011.
The bill would require the FCC to enforce rules to keep customers from unwittingly exceeding their data plan limits and avoid costly unexpected charges. Specifically, cell phone companies would be required to notify customers when they have reached 80% of their monthly allowance of data usage, text messages, or voice minutes. Also, cell phone companies would need to receive the customer’s consent before charging for services beyond their plan’s limit of data, text, or voice usage.
Senator Udall proposes that cell phone companies send a text message to the customer when they reach the 80% threshold of their plan’s coverage. “Sending an automatic text or email notification to a person’s phone is a simple, cost-effective solution that should not place a burden on cell phone companies and will go a long way toward reducing the pain of bill shock by customers,” said Udall. He points out on his website that the European Union has already put this law into effect. As a member of the Senate Commerce Committee, Udall is looking to protect consumers from outrageous bills that have affected people such as Bob St. Germain of Massachusetts who was billed $18,000 for a six-week period when his son used a cell phone to connect a computer to the Internet. There are consumers who have experienced similar situations – according to an FCC study cited on Udall’s website there are 30 million Americans, about 1 in 6 mobile users, who have experienced “bill shock” and approximately 1 in 4 have received a bill that exceeds the plan amount by more than $100.
As unlimited data plans begin to expire smart phone users will have to be more aware of their usage. Verizon Wireless announced in January 2010 that they will continue to offer their $30 unlimited data plan – particularly important for Verizon’s new iPhone customers. However, this is a limited time offer that will eventually be replaced by a usage-based pricing model. As current customers’ contracts expire they will be subjected to the new pricing structure. On the other hand, even though AT&T has discontinued its unlimited data plan for new customers – those customers who had the plan with AT&T prior to June 2010 will not lose it.
Cell phone customers certainly have a changing market to navigate while choosing their mobile device and the related service. Unfortunately, it looks as though we will have to be more vigilant over our usage to in order to manage costs.
