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  Saturday, November 21, 2009  
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FCC Considers Ways to Simplify Cellphone Bills

Wall Street Journal

2009-10-14

Comments are filing in to the Federal Communications Commission’s request for input on simplifying wireless bills.

The deadline comes amid a thicket of consumer-focused fee news, from credit cards to overdraft fees. Consumer advocates are arguing for more transparency in billing, both when shopping around for plans and for existing mobile subscribers.

Filing comment Tuesday is BillShrink.com, a site that analyzes the fine print of credit card bills and user profiles to find the cheapest cellphone plan. The average consumer overspends $300 on her cellphone plan a year, Schwark Satyavolu, BillShrink’s co-founder and president, said. In the last five months, the site has found $800 million in potential savings on cellphone plans.

“The plans are complicated,” he said, “and there’s no way for consumers to stay on top of that.”

BillShrink’s comment suggests that things like roaming costs should be explained to prospective customers before they sign up for a plan, as well as more clearly available on the site’s list of wireless providers. Customers often don’t notice the details of allotted minutes and usage fees until they exceed them, Mr. Satyavolu said.

Information on geographic coverage and dropped calls should be more readily available, the comment said. Getting an apples-to-apples comparison between T-Mobile’s striped green bars and Verizon Wireless’s giant red blob of coverage is virtually impossible, Mr. Satyavolu said. Many consumers don’t realize that relevant areas may be under-serviced until they’re several months into their contracts.

The BillShrink comment argues for more upfront information about cellphone-contract termination and requests the ability for consumers to be able to scale back or add on to existing contracts. Breaking down the anatomy of the monthly bill — taxes, basic plan charges and additional fees — should also be clearer on monthly billing statements, as well as online.

The FCC deadline comes on the heels of news this month that iPhone users can now run Skype over AT&T’s 3G network and that Verizon and Google reached an agreement to deliver mobile devices and applications.

New FCC Chairman Julius Genachowski is already garnering positive reviews for his action toward cellphone companies.

CTIA, the wireless-industry trade group, didn’t immediately respond to a request for comment.

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