In
telecommunications
Telecommunication is the transmission of information by various types of technologies over wire, radio, optical, or other electromagnetic systems. It has its origin in the desire of humans for communication over a distance greater than that fe ...
, bill shock is the negative reaction a
subscriber can experience if their
phone bill
Bill(s) may refer to:
Common meanings
* Banknote, paper cash (especially in the United States)
* Bill (law), a proposed law put before a legislature
* Invoice, commercial document issued by a seller to a buyer
* Bill, a bird or animal's beak
Plac ...
has unexpected charges. Bill shock can happen when, for example, a user grossly overuses data applications without an appropriate data plan, or uses a mobile device while
roaming
Roaming is a wireless telecommunication term typically used with mobile devices, such as mobile phones. It refers to a mobile phone being used outside the range of its native network and connecting to another available cell network.
Technical ...
(whether domestically or internationally) without understanding the voice or data roaming charges involved.
[27000 mobile bill shock](_blank)
The use of
non-geographic telephone numbers in the United Kingdom
A non-geographic number is a type of telephone number that is not linked to any specific locality. Such numbers are an alternative to the traditional 'landline' numbers that are assigned geographically using a system of location-specific area cod ...
has also been a major cause of bill shock. Pollster
YouGov
YouGov is a British international Internet-based market research and data analytics firm, headquartered in the UK, with operations in Europe, North America, the Middle East and Asia-Pacific. In 2007, it acquired US company Polimetrix, and sinc ...
found that 49% of mobile users have been surprised to see how much they have been charged for calling non-geographic numbers and 90% believe organisations should make the cost of these calls clearer.
According to
Ofcom
The Office of Communications, commonly known as Ofcom, is the government-approved regulatory and competition authority for the broadcasting, telecommunications and postal industries of the United Kingdom.
Ofcom has wide-ranging powers acros ...
,
UK consumers paid around £1.9 billion for calls to non-geographic numbers in 2009.
Impact
In some cases bill shock can be extreme, usually a result of a mobile bill priced into the tens of thousands of dollars. These cases often make news both locally and nationally due to the sense of compassion the experience provokes, and the suitability the story has for mainstream media. This can result from another company - not the customer's provider - refusing to waive roaming charges. In Europe and the United States, governments are becoming more involved with monitoring issues around bill shock and implementing proper regulations around smart devices that protect consumers. Notably, the
U.S. Federal Communications Commission
The Federal Communications Commission (FCC) is an independent agency of the United States federal government that regulates communications by radio, television, wire, satellite, and cable across the United States. The FCC maintains jurisdictio ...
in the United States handles nearly all FCC domestic wireless telecommunications programs, policies, and outreach initiatives. A survey in 2010 revealed that over 30 million Americans are impacted by bill shock each year.
It can be difficult to prevent bill shock while using a mobile device because monitoring the data, voice and
SMS
Short Message/Messaging Service, commonly abbreviated as SMS, is a text messaging service component of most telephone, Internet and mobile device systems. It uses standardized communication protocols that let mobile devices exchange short text ...
and roaming consumption on a mobile device is difficult. It can also be difficult for phone companies to alert their customers to potential impending bill shock, because various third-party companies impose various roaming charges (a mobile phone company pays other companies for its customer's usage of their networks), so the customer's usage of networks in different areas of the country or the world will result in different charges. Migratory birds can be particularly prone to bill shock; in 2019 a single Russian eagle used up the entire telecoms budget of a research project, when it unexpectedly flew to Iran where it was charged over three times more for each SMS message it sent.
Mobility is an important trend in the marketplace as consumers and businesses continue to embrace smart devices. The following mobility trends are noteworthy as they demonstrate the continued dependence on smart devices, and all of these can have billing effects. If consumers use products or services without checking pricing, they may experience bill shock.
#Consumerization of IT: Employee-owned devices on the corporate network. Consumerization is driving the adoption of mobility in the workplace. Businesses see mobility as an opportunity to offer employees flexibility. Companies enhance their revenue by using devices that increase productivity.
#Device diversity:
iOS
iOS (formerly iPhone OS) is a mobile operating system created and developed by Apple Inc. exclusively for its hardware. It is the operating system that powers many of the company's mobile devices, including the iPhone; the term also includes ...
,
Android,
Windows
Windows is a group of several proprietary graphical operating system families developed and marketed by Microsoft. Each family caters to a certain sector of the computing industry. For example, Windows NT for consumers, Windows Server for serv ...
, etc.
#App explosion: People are communicating beyond email and web. Many apps are getting integrated into workplace operations.
#Mobile threat emergence: Android an early favorite
#Changes in Wireless Speed:
4G speeds have revolutionized wireless accessibility. Individuals are more inclined to stay connected when the networks are fast and efficient.
#Carrier plans are also becoming more customizable and complex, except with certain stable calling plans, such as those often offered by small and regional carriers, and this makes it hard for individuals to completely control their usage and costs.
Legal action
Since 1 July 2010 bill shock is mitigated in the
EU.
Eurotariff protected consumers by introducing a cut-off mechanism once the bill reaches €50 per month, unless they choose another cut-off limit.
[3 disables data roaming to avoid bill shock](_blank)
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See also
* Oligopoly
An oligopoly (from Greek ὀλίγος, ''oligos'' "few" and πωλεῖν, ''polein'' "to sell") is a market structure in which a market or industry is dominated by a small number of large sellers or producers. Oligopolies often result from ...
* User-in-the-loop
User-in-the-Loop (UIL) refers to the notion that a technology (e.g., network) can improve a performance objective by engaging its human users (Layer 8). The idea can be applied in various technological fields. UIL assumes that human users of a ne ...
: Transparent dynamic prices all provided before usage
References
{{Reflist
External links
* https://web.archive.org/web/20111108041642/http://reboot.fcc.gov/billshock
Mobile phone culture
Telecommunications economics