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FCC Wants Warning Texts for Cell-Phone Overages

The Federal Communications Commission has proposed that wireless carriers be required to send a text warning when overage fees are about to be applied. The FCC proposal would let carriers turn the warning into a service, perhaps with a charge. The European Commission has already mandated overage alerts.

Moving to address the "bill shock" cell-phone consumers get when they exceed their monthly agreement for voice, text or data , the Federal Communications Commission has proposed that wireless  carriers be required to send a warning text when overage fees are about to be applied.
"We are hearing from consumers about unpleasant surprises on their bills," said Joel Gurin, chief of the FCC's Consumer and Governmental Affairs Bureau, in a public notice. "We've gotten hundreds of complaints about bill shock. But this is an avoidable problem. Avoiding bill shock is good for consumers and ultimately good business for wireless carriers as well."

'Small Percentage'

The proposal forces wireless carriers to decide whether to oppose the measure as unnecessary regulation or embrace it as a service, perhaps with a price tag that might be embraced by the budget-weary.

On Tuesday, Steve Largent, CEO and president of CTIA -- the Wireless Association, an international organization representing wireless carriers, noted that the nation's top four carriers already allow consumers to check their usage with simple key combinations.

"Even though the 'hundreds of complaints' that the public notice references is less than four ten-thousandths of a percentage of the industry's total subscribers, the industry strives to serve and provide all of our 285 million customers with the necessary tools to have a positive experience," Largent said.

Add It To the Bill?

Kirk Parsons, a wireless analyst for J.D. Power and Associates who says he recently had a bill-shock experience of his own, predicted that overage alerts would be popular. "I think consumers would love it," said Parsons. "It just happened to me, and it would have been nice if I was alerted that I was going over."

"The carriers may fight it [or] ]they may add this feature into existing plans and charge a nominal fee a month like handset insurance, just in case you go over," he said. Parsons added that many carriers already communicate billing information  by text. "I get a text alert when my monthly bill is available for payment," he said. "I guess they could do the same for this service."

The FCC said its inquiry is one of the first initiatives undertaken by its consumer task force, launched in January by FCC Chairman Julius Genachowski and chaired by Joel Gurin.
 

The European Commission, the executive body of the European Union, mandated overage alerts last year and more recently imposed limits on how much carriers can charge for Internet access via mobile phone. Users in that jurisdiction have a default monthly limit on access unless they choose a higher limit. The commission has also pressed carriers to slash roaming charges.

Help for Disabled?

While the FCC isn't going that far, the agency is looking for input from consumers on whether technological or other issues would prevent carriers from sending usage alerts similar to those in the EU. The FCC also wants to know about the ability of consumers to monitor their usage and the cost, if any.

The agency also wants to know if consumers are steered toward one type of service or another because of usage control, the ability of people with disabilities to access this information, and the potential benefit of alerts.

Comments must be sent to the FCC within 45 days after the plan is published in the federal register. Comments may be made online  at http://esupport.fcc.gov/complaints.htm, by phone at 1-888-CALL FCC (225-5322), or postal mail to 445 12th St. SW, Washington, D.C. 20554.

Gurin offered some examples of complaints that have besieged his agency about cell-phone overages.

"I received a bill this month with over $500 in overage charges, which led me to check my statement," read one sample. "I found that on my wife's and my phones over the past three months we have had 246 calls totaling 304 minutes from [two unknown numbers]."