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Mobile users face surge in surprise fees

by Shaun Nichols

27 May 2010

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FTC headquarters
The FTC is calling on carriers to provide clearer explanations on mobile tarrifs

One out of every six US mobile phone customers is being presented with surprise fees, according to a report by the US Federal Communications Commission (FCC).

The FCC said that a recent survey of US mobile phone users found that an estimated 30 million Americans are facing 'bill shock', a term referring to a sudden unexpected increase in their monthly fees.

The study showed the need for wireless carriers to provide users with easy to understand explanations of their mobile phone contracts and monthly bills.

"The wireless industry has achieved remarkable innovation, and mobile is increasingly essential to the daily lives of Americans," said FCC chairman Julius Genachowski.

"But there is still more that can be done to help customers navigate what is sometimes a confusing marketplace."

More than one third of those who experienced 'bill shock' saw their bills increase by $50 (£34), while 23 per cent experienced an unexpected increase of more than $100 (£68).

The FCC is recommending that carriers provide better information to customers on monthly charges and potential early termination fees when they sign up for services such as home broadband and mobile phone coverage.

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