Money Matters, Simplified.
Cellphone users to get alerts before hitting plan limits
by Neka Sehgal - October 17, 2011 - comments
Wireless carriers will activate at least two of the four alerts within the next year while the whole package including voice, data, text and international charges is expected to become operational within 18 months.
Cellphone bills that bring unpleasant surprises may soon become a thing of the past in the United States.
The Federal Communications Commission has proposed guidelines that require wireless carriers to alert consumers with updates when they’re about to reach their plans’ limits.
Currently, most wireless customers have to manually check their use tallies. Without the assurance of mandated warnings, they risk being shocked by exorbitant charges.
FCC Chairman Julius Genachowski said, "Consistent with the FCC's ongoing efforts, these actions harness technology to empower consumers, and ensure consumers get a fair shake, not bill shock.”
"Far too many Americans know what it's like to open up their cellphone bill and be shocked by hundreds or even thousands of dollars in unexpected fees and charges. Our phones shouldn't cost us more than the monthly rent or mortgage." --President Barack Obama
New guidelines
Under the new agreement set to be unveiled Monday, the U.S. mobile carriers who are members of the Cellular Telecommunications Industry Association (CTIA) will send out alerts to customers approaching their monthly talk, text or data limits.
According to reports, wireless carriers will deliver least two of the four alerts within the next year while the whole package including voice, data, text and international charges is expected to become operational within 18 months.
Julius Genachowski said the deal is a “victory for more than 300 million wireless consumers. These alerts will give consumers the information they need to save money on their monthly wireless bills.”
FCC survey
Millions of cellphone users face overage charges each year. In a survey conducted last year, the FCC found that one in six cellphone subscribers in the United States paid hefty additional charges on their bills.
Nearly 23 percent of the users reported bill of $100 or more without any change in their voice, text or data plans. Over half said they incurred an increase of at least $50 without any warning.
President Barack Obama stated, "Far too many Americans know what it's like to open up their cellphone bill and be shocked by hundreds or even thousands of dollars in unexpected fees and charges. Our phones shouldn't cost us more than the monthly rent or mortgage."