Quantitative research report


Understanding phone inclusions and usage charges



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Understanding phone inclusions and usage charges


More than half of the bill-payers who experienced an unexpectedly high bill did so because of voice calls, while another 22 per cent did so due to SMS. Figure 24 shows that these bill-payers are slightly less confident in their understanding of what voice calls and SMS allowances their plan includes than those who have not received an unexpectedly high bill on their current plan.
Bill-payers who have not received an unexpectedly high bill (81 per cent) are at least somewhat confident in their understanding of usage charges, compared to only 70 per cent who have received an unexpectedly high bill. There is very little difference in confidence levels among prepaid customers, regardless of whether they have unexpectedly run out of credit.


Figure 24 Confidence in understanding included calls and SMS (%)




Base: Varies, as above.

Source: B7a1. To what extent are you confident that you can understand what your plan gives you in terms of the number of calls and SMS you can use and still be within your cap or credit level?



Denotes significantly different at the 95% confidence level, comparison between bill-payers who have received an unexpectedly high bill on current plan and bill-payers who have not received an unexpectedly high bill on current plan.

Note: some percentages do not add up to 100 due to rounding and ‘don’t know’ answers.

Post-paid bill-payers who have received an unexpectedly high bill on their current plan have low confidence in understanding excess usage charges, with 48 per cent in this group. This is significantly more than the 38 per cent with low confidence who have not received an unexpectedly high bill on their current plan.




Figure 25 Confidence in understanding excess usage charges (%)




Base: Varies, as above.

Source: B7a2. To what extent are you confident that you understand how your excess usage is charged?



Denotes significantly different at the 95% confidence level, comparison between bill-payers who have received an unexpectedly high bill on current plan and bill-payers who have not received an unexpectedly high bill on current plan.



Understanding data allowance and excess data usage charges


Previous analyses identified that there was a relatively low level of understanding of excess data usage charges among 3G feature users. This section examines whether the level of confidence varies according to billing experiences.

Among post-paid bill-payers who use 3G features, the level of understanding of excess data usage charges is lower for those who have received an unexpectedly high bill on their current plan, with 53 per cent either not very confident or not at all confident. For those who have not received an unexpectedly high bill on their current plan, the level of low confidence is 43 per cent (Figure 26).


There were no significant differences in the understanding of data usage allowance between 3G feature users who received an unexpectedly high bill and those who did not.


Figure 26 Confidence in understanding data usage allowance within plan (%)




Base: Varies, as above.

Source: B7a1. To what extent are you confident that you can understand what your plan gives you in terms of the number of calls and SMS you can use and still be within your cap or credit?



Denotes significantly different at the 95% confidence level, comparison between bill-payers who have received an unexpectedly high bill on current plan and bill-payers who have not received an unexpectedly high bill on current plan.


Case study—Sarah’s bill shock experience

The following case study highlights the experience of a 3G bill-payer who received an unexpectedly high bill. It is obtained from qualitative interviews undertaken with consumers on 6 and 7 May 2010.


Sarah* is a recent switcher, having changed service providers for better reception three months ago and upgrading to an iPhone on a $99 plan. She is generally happy with the phone but is less impressed with how much it is costing her. She is wary of unexpectedly large bills: ‘I’m a single mum with children in private schools so I’m really aware of my budget.’
Sarah’s bill shock experience was with her first bill from her previous service provider: ‘It was 500 and something, $517. It’s meant to be a $99 cap and I’ve gone “Ahh you’re kidding me.’” This was a significant shock and she was ‘mortified’ as she expected the same $99 bill she usually receives. Believing that she did not make more calls than usual, she was confused about how the bill could be so high: ‘… to me, I haven’t used my phone any differently to the way I had been using it for the last contract.’ She was particularly surprised by her internet usage, which had not been a consideration previously: ‘…it’s the games, the kids have been on the phone and downloaded those games. I didn’t think about it, didn’t even think about applications, internet, any of that.’ Her service provider then informed her that to have these included in the plan she would need to pay an additional $10 a month, but this was not explained to her initially. She is still cautious about internet usage on her phone.
In terms of contract information provided over the telephone, Sarah was given only general advice: ‘Basically, they said it’s what you’ve been using now, what you’ve been doing.’ She was told that this plan would be the best one for her, given that she was generally staying within her $99 cap. After receiving the bill, Sarah called and enquired about the bill and was able to get it reduced: ‘They did reduce it in the end, down to $409. Because they said, you know, I’ve got to take some responsibility.’ Even after making the call, Sarah does not understand what went wrong with this bill.
Due to the size of the bill, Sarah was not able to pay it on the due date. She informed her service provider of this and arranged a new date for payment. She was further annoyed that, when she paid on the agreed date, she was still charged a $15 late fee that she was not informed about: ‘They’ve charged me this $15 overdue fee, even though we had an agreement on what day it would be paid.’
This experience has affected Sarah, who is nervous about the same thing happening again: ‘Every time now, I’m really paranoid about getting one of these big bills, because I didn’t use my phone any differently’. A key concern is that she does not understand how internet usage is measured and what a megabyte means in terms of usage: ‘I don’t know how much access that actually really allows us.’ As a result, she plans to use the service providers’ website to set up a tool that allows her to check her spending throughout the month, but has not done this yet. Sarah is now less trusting of using the telephone to sign up to mobile plans: ‘I’ll never, ever buy a phone over the phone again.’ She believes that a lot more information is provided when you go in-store and the use of visual material is helpful.
*name changed



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