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. The amount of bill shock varies widely but is often sizeable. 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. Managers of telecom and wireless expenses should not wait for the FCC to act. One way to avoid these penalties is to ensure that employees are on the right plans. 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.
In many corporations and organizations, employees never see their bills because their employer pays them. It is important to provide employees with visibility into these expenses. At Telesoft, we have even found that managers of wireless expenses have been surprised when they are able to view these charges. Learn more about how our programs can help you to avoid sticker shock and improve accountability for expenses.
