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Caps off to Aussie 'app cap' initiative

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Australian mobile consumers need to take steps to monitor their data usage on smartphones and manage their spending to avoid bill shock. That’s the message relayed by Australian Mobile Telecommunications Association (AMTA) Chief Executive Chris Althaus on national ABC Radio this week.

He was commenting on a media report that a mobile service provider has flagged putting in place a voluntary “app cap” to cut off smartphone users’ internet access when they have reached their data allowance limit on their mobile phone plan.

Mr Althaus said the mobile telecommunications industry was committed to educating consumers about plans, caps and spending limits, including the importance of taking steps to monitor usage of mobile services and resultant expenditure.

Consumer awareness of mobile service usage is also very important given the rapidly growing demand for mobile data services such as mobile broadband.

“It is in no one’s interest to have customers in debt as a result of unexpectedly high bills – so industry is actively promoting consumer awareness in this regard,” Althaus said.

“Mobile operators offer a number of self-help tools to assist consumers keep track of their usage and spending on a range of services. These are free online accounts allowing them to monitor their usage on a daily basis,” he said.

“Consumers should check with their service provider to see if they offer a service to contact them if their expenditure is particularly high compared to previous bills. They can also request the barring of some services at the network level.

“Consumers can also ask if they offer an SMS notification service that lets them know when they have reached 80% or 100% of their cap. Some providers offer free text services that consumers can use to monitor their usage.”

A recent paper from the Australian Communications and Media Authority (ACMA) found 57% of mobile cap users did not monitor their expenditure between bills, 33% of users said they “cannot be bothered” in monitoring their spending, 19% said they did not exceed their cap and 26% had “low usage”. Only 4% reported they “don’t know how”.

AMTA’s consumer tips on these issues can be found here


Posted 08-13-2010 5:41 PM by Tony Poulos
Filed under: , ,

Comments

Tony Poulos wrote re: Caps off to Aussie 'app cap' initiative
on 08-15-2010 12:26 PM

As an adjunct to this story Telstra CEO, David Thodey said that his company was considering cutting-off users’ mobile Internet services when data caps are breached to counter rising bad debts. As Telstra does not offer unlimited data plans, many smartphones customers have suffered ‘bill shock’ and have refused – or been incapable – of paying large bills. "We have had an increase in bad debt as customers' expectation of what they purchase and what they get isn't quite right," Telstra CEO David Thodey said yesterday. "We have seen some bill shock through larger wireless data costs, and people say, 'hey, what's going on here?' So there's a lot of work to do in that area."

He noted that up to AU$90 million of that has been "self-inflicted" by users who do not understand their contractual obligations and had refused to pay.

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