Bill shock
Encyclopedia
Bill shock was popularized in the telecommunications industry as a term for the negative reaction a subscriber can experience if their mobile phone
Mobile phone
A mobile phone is a device which can make and receive telephone calls over a radio link whilst moving around a wide geographic area. It does so by connecting to a cellular network provided by a mobile network operator...

 bill
Bill (payment)
A bill or invoice is a document requesting payment for an order previously supplied. Presentation of a bill is common practice on the part of credit card companies, utilities, and other service providers...

 has unexpected charges. Bill shock can happen domestically if a user grossly overuses their data applications without an appropriate data plan, or internationally by using data without understanding the roaming charges involved.http://digital-lifestyles.info/2008/01/03/27000-mobile-phone-bill-shock/http://mobile.broadbandgenie.co.uk/news/22000-pound-mobile-broadband-bill-shockhttp://www.cnet.com.au/iphone-bill-shock-hits-optus-339291460.htm

Bill shock can generically be used as a term for the surprise an individual receives on any bill that has an amount higher than expected pending to be paid. Other examples of bill shock have been noted in credit card bills, rental bills, and utility billshttp://news.therecord.com/article/411250.

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. 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 FCC 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. This widespread problem translates into 1 out of 6 Americans have experienced bill shock at least once throughout their lives.

It can be very difficult to prevent bill shock while using a mobile device because monitoring the data, voice and SMS and roaming consumption on a mobile device is challenging without having the proper solutions in place. For consumers and businesses that own a variety of wireless devices, deploying a solution that offer real-time monitoring and management is the only solution. In order to avoid bill shock, individuals need to be made aware of roaming, device inactivity, plan overages, device loss/theft, and non-optimal carrier plans or pools so they can stay on top of their costs. Real-time Telecom Expense Management solutions, like Telicost, allow the user to reduce and control their mobile costs. It also offers complete visibility into an individual's wireless usage and eliminates bill shock, as they can proactively manage their usage (and costs) as they use up their plan limits. Users of R-TEM solutions can also benefit from increased productivity and plan optimization.

Bill shock concerns are on the rise as more complex mobile solutions and devices are deployed. It will become more challenging to monitor and reduce costs if the right solutions are not implemented by consumers and businesses. It will no longer be a concern that can be put off, but a must.

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 dependance on smart devices, and the critical need for bill shock prevention solutions:

1. 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.

2. Device diversity: iOS, Android, Windows, etc.

3. App explosion: People are communicating beyond email and web. Many apps are getting integrated into workplace operations.

4. Mobile threat emergence: Android an early favorite

5. Changes in Wireless Speed: 4G speeds have revolutionized wireless accessibility. Individuals are more inclined to stay connected when the networks are fast and efficient.

6. Carrier plans are also becoming more customizable and complex, and this makes it hard for individuals to completely control their usage and costs.

Legal Action

Since 1 July 2010 bill shock is illegal 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. There is speculation that this legal precedent will be copied internationally causing quick industry response on solutions for the problem.http://news.zdnet.co.uk/communications/0,1000000085,39444413,00.htmhttp://www.newswire.ca/en/releases/archive/April2009/06/c6616.html

External links


http://reboot.fcc.gov/billshock

http://www.telicost.com
The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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