According to a recent Federal Communications Commission (FCC) survey, nearly 30 million Americans or one in six mobile users have experienced “bill shock,” from a sudden increase in their monthly bill. Telecom Expense Management (TEM) and Wireless Expense Management (WEM) programs can help avoid these shocks. Although this study focuses on the surprises that come from the impact of voice services bills, it seems likely that bill shock from sudden increases in data charges will follow as telecom carriers begin to place limits on offerings that provide unlimited data plans.
The amount of bill shock for mobile voice services varies widely but is often large particularly for smartphone users. More than one third of people who experienced bill shock said their bills jumped by at least $50, and 23% said the increase was $100 or more. Of the 30 million Americans who have experienced bill shock, 84% said their mobile carrier did not contact them when they were about to exceed their allowed minutes, text messages, or data downloads. About 88% said their carrier did not contact them after their bill suddenly increased.
It is possible that the FCC will impose on Verizon Wireless, AT&T, Sprint, and other service providers rules that are similar to those in Europe, where carriers must send text messages to subscribers who approaching plan limits. Another possibility is that the carriers will establish this feature on their own.
Managers of telecom and wireless expenses should not wait for the FCC or carriers to act. One way to avoid these penalties is to ensure that employees are on the right plans for voice and data services. For voice services, grouping employees together and buying a large pool of minutes is usually more cost effective than a plan, which charges a fee per minute for each employee. It will enable organizations to avoid shock from situations where one employee exceeds their individual allotment of minutes. In addition, pools enable organizations to reduce the number of minutes forfeited each month with individual buckets. In rare cases large volume users should be in an unlimited plan rather than being included in a pool with other employees. This “pool busters” will have a lower cost-per-minute for calls using an unlimited plan.
For data plans it is also important to match consumption with service plans. Most firms have unlimited plans for their employees, but it seems likely that carriers will begin to impose limits on these plans. Where possible, enterprises should seek to extend these contracts for large consumers of data. AT&T wireless users report the greatest issues iPhone users consume more data compared to other users. Another consideration centers on problems that arise because many employees never see their bills because their employer pays them. It is important to provide employees with visibility into these expenses.
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