Only yesterday, TelecomsTech published an insightful article by Matt Hooper about “bill shock” and the need for mobile operators to take greater responsibility in preventing unexpectedly large roaming bills. The Australian Communications and Media Authority (ACMA) has clearly listened.
So what measures will soon be introduced to protect Australians who roam overseas from returning to huge charges — and the dreaded “bill shock”?
The new International Mobile Roaming (IMR) standard will require providers to offer opt-out features, SMS alerts and spend-management tools to roaming customers.
SMS alerts are intended to give customers advance warning. As ACMA Chairman Chris Chapman put it: “Forewarned is certainly a major part of being forearmed.”
Those comments raise two questions: why weren’t these protections introduced earlier, and how long will it take before regulators in other countries insist on similar rules?
Chapman added: “The standard extends the information which suppliers must make available to Australian consumers under the Telecommunications Consumer Protections Code. They will now receive similar information when they travel overseas and use roaming services.”
The Telecommunications Consumer Protections (TCP) Code, revised last year, sought to give consumers “materially greater protection” from surprise billing and poor service. Many readers will recall that update aimed to improve transparency and reduce account shock at home.
Travellers who have suffered bill shock will welcome the same standard of protection while roaming, and there is a strong argument for carriers to make these practices the norm globally.
The new standard will be implemented from 27 September 2013 and introduces four initial safeguards:
- An SMS notification providing pricing information for a range of roaming services, including services that are normally free, such as receiving a call while roaming.
- Data-usage notifications sent in A$100 increments, and additional alerts at 50%, 85% and 100% of any included-value travel package purchased from the IMR provider.
- A pre-arrival SMS warning when the customer lands overseas to advise that higher charges for roaming services may apply.
- The ability for customers to opt out of roaming at low or no cost at any time, including while overseas.
These measures improve transparency and give customers control over costs while roaming. Clear pricing notifications and flexible opt-out options reduce the risk of unexpected charges, while tiered alerts allow users to manage data consumption proactively.
What remains important is consistent enforcement and industry uptake: regulators must ensure providers comply and consumers must be informed about their rights and the tools available to them. If the protections are effective in Australia, there is a compelling case for other regulators to adopt comparable standards, reducing bill shock for international travellers worldwide.
What do you think about these new preventive measures? Should they be adopted internationally?