LA Times: Cellphone Companies Move to End 'Bill Shock'

By    |   Monday, 17 October 2011 12:20 PM EDT ET

The days of shockingly high and unexpected charges on cellphone bills could be coming to an end, the Los Angeles Times reported. Cellphone companies will notify users before they exceed their plan limits, the Times reported.

AT&T Inc., Verizon Wireless and other major cellphone providers have agreed with U.S. regulators to begin sending alerts to customers who are approaching monthly voice, text or data limits, the Times reported.

There will also be an alert for international roaming charges.

The FCC last year studied "bill shock" and found that one in six mobile users had seen unexpected jumps in monthly wireless bills, 23% of them by $100 or more, USA Today reported.

Consumer complaints led the FCC last October to consider mandating such alerts via voice or text when subscribers near or pass limits, USA Today reported.

Instead of having the government make it a matter of law, cellphone companies are making the move voluntarily.

Under the terms of the deal, service providers will be sending at least two of the four alerts within a year and all of them within 18 months.

Cellphone users who do not wish to receive the warnings are free to opt-out.

FCC Chairman Julius Genachowski is expected to unveil the guidelines with the head of wireless industry trade group CTIA and an executive from advocacy group Consumers Union, which has pushed for regulations and will help monitor compliance, the LA Times reports.

© 2025 Newsmax Finance. All rights reserved.


Markets
The days of shockingly high and unexpected charges on cellphone bills could be coming to an end, the Los Angeles Times reported. Cellphone companies will notify users before they exceed their plan limits, the Times reported. AT T Inc., Verizon Wireless and other major...
Cellphone,Companies,Bill,Shock
237
2011-20-17
Monday, 17 October 2011 12:20 PM
Newsmax Media, Inc.

View on Newsmax