This chapter examines the level of concern and actions taken by consumers after receiving an unexpectedly high bill. It also reviews the response from service providers to those customers who queried their bill. Findings are presented for 3G bill-payers from fixed-line households, including:
Following the receipt of a higher than expected bill, 28 per cent of post-paid consumers queried it with their service provider. Prepaid bill-payers were more likely to monitor their service use after running out of credit sooner than expected, with 33 per cent doing so.
Just under one-third of post-paid bill-payers decided not to take action after receiving an unexpected high bill. The most common reason was acceptance by the bill-payer that the bill reflected their usage and so they felt they had no other option.
Among those consumers who queried their bill with their service provider, 63 per cent were extremely satisfied or satisfied with the response, while 31 per cent were dissatisfied or extremely dissatisfied.
Level of concern
When bill-payers were asked what amount over their usual cap they would accept before becoming concerned, 35 per cent nominated $10, while 18 per cent would tolerate an excess spend of up to $50.
Adult 3G bill-payers on post-paid plans accept a larger amount in dollars over their cap before they start to feel concerned compared to parent bill-payers. This difference is attributed to the fact that parents are unwilling to allow their children to become accustomed to spending more money than is expected or agreed on their phone bill (Figure 29).
Figure 29 Amount in dollars over cap tolerated (%)
Source: D1a. Thinking more generally about the mobile bills you receive, what amount, in dollars, over your cap do you tolerate before you start to get concerned?
Actions taken as a result of bill shock
Half of the post-paid 3G bill-payers received an unexpectedly high bill and 44 per cent of prepaid bill-payers experienced running out of credit sooner than expected. Actions taken as a result differ slightly, depending upon whether they are post-paid or prepaid bill-payers.
Looking at the top five actions taken as a result of a bill shock experience, about one-third of post-paid bill-payers from fixed-line households decided not to take things any further, while 28 per cent queried the bill with their service provider and 15 per cent moderated their usage (Figure 30). For prepaid bill-payers, using their phone more cautiously was the most likely outcome, with 33 per cent moderating their usage.
Of those 3G bill-payers who decided not to take action, about 60 per cent of post-paid customers from fixed-line households felt the bill reflected their usage and they had no other option.
Figure 30 Top five actions after having bill shock experiences (%)
Base: Fixed-line post-paid household unexpectedly high bill n=348, fixed-line prepaid plan ran out of credit sooner than expected n=134.
D2i & D2ii. What did you do as a result of receiving this bill that was higher than you expected or budgeted for?
Figure 31 Reasons for not taking action after experiencing bill shock, post-paid bill-payers (%)
Base: Post-paid 3G bill-payers who had an unexpectedly high bill n=355.
Source: D6. Why did you not take any action towards the service provider or complain to a telecommunications/consumer protection organisation in regards to this bill?
For 3G bill-payers who contacted their service provider or relevant authority, 18 per cent found they took no action. However, for 21 per cent, their service provider offered explanations of the charges and for 10 per cent they offered information on monitoring tools as a way to help bill-payers manage their budget.
Of those customers in fixed-line households who took action to contact their service provider, 50 per cent were extremely satisfied with the outcome but 20 per cent were extremely dissatisfied.
Figure 32 Service providers’ response to queries and complaints (%)
Base: 3G bill-payers who contacted the service provider or independent third-party—fixed-line household bill-payers: n=127.
Source: D5a. What did the service provider do as a result of your action?
Figure 33 Satisfaction with service provider’s response
Base: 3G bill-payers from fixed-line households who received a response from their service provider n=79.
Source: D5ai. To what extent were you satisfied with this outcome?