Please note, this article was initially posted on Netmobo’s blog, click here to read it.
According to a recent Bloomberg article, wireless carriers seem concerned with a potential new regulation requiring telecoms to help consumers avoid “bill shock.” Bill shock refers to a consumer’s surprise from unexpected cell phone charges, many times due to over-use. The article states that:
“A new bill in the U.S. Senate would force AT&T, Verizon and other wireless carriers to send you a message – either by e-mail or text – if you’re approaching the limits of your monthly service plan.”
The bill may also demand that carriers receive the consumer’s permission before charging for services outside the regular plan. For example, using BilltoMobile to bill your carrier for the latest copy of Angry Birds. This second change is reasonable as our carrier bill looks more and more like a credit card and privacy concerns on the web remain prevalent.
While the carriers have legitimate financial gripes, they won’t be able to avoid these types of warning systems. Whether it comes to fruition due to government regulation, or free market forces, consumers hate bill shock and from my personal experiences would appreciate a warnings system. In addition to just minutes, as most carriers do away with their “all you can eat” data plan’s a consumption warning will be welcomed. Moreover, the technology needed to fulfull this regulation is already commercially available in the form of metered subscription services. In fact, Netmobo and competitors provide just this type of service. Also, the perfect medium for sending these warnings, SMS and push-technology are both readily available on Smartphones.
Passing this regulation may be a welcome surprise for companies operating in the mobile billing industry. If the bill were to pass, carriers like AT&T and Verizon would now be required to either build the solution themselves, our outsource to a reliable metered subscription provider. The second option is the cheaper and quicker way to market and would create a potential windfall for certain players in the mobile billing industry. However, this new required demand may lead to lower metered subscription prices as more competitors enter the market giving the carriers greater power through choice.
