Quantitative research report


Understanding inclusions and usage charges—voice calls and SMS



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Understanding inclusions and usage charges—voice calls and SMS


Previous analyses indicated that 3G bill-payers use their phone predominantly for voice calls and SMS. When it comes to understanding inclusions and usage charges for these services, 77 per cent were confident in their understanding of their plan inclusions. The level of confidence in understanding excess usage charges was considerably lower, at 56 per cent. Consumer understandings of inclusions and usage charges, and experiences of receiving a higher than expected bill, are presented in Chapter 6.
When comparing groups, parent 3G bill-payers were significantly more confident in understanding excess usage charges, with 73 per cent very or somewhat confident, compared to only 55 per cent of adult bill-payers. There were no significant differences between 3G feature users and non-3G feature users.


Figure 14 Confidence in understanding included calls and SMS (%)



Base: Bill-payers in fixed-line households n=949, parent 3G bill-payers n=139, adult 3G bill-payers n=810, 3G feature users n=380,
non-3G feature users n=569.

Source: B7a1. To what extent are you confident that you 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?






Figure 15 Confidence in understanding how excess usage is charged (%)



Base: Bill-payers in fixed-line households n=949, parent 3G bill-payers n=139, adult 3G bill-payers n=810, 3G feature users n=380,
non-3G feature users n=569.

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



Denotes significantly different at the 95% confidence level, comparison among delineated groups.

Understanding excess data usage charges


A key objective of this study was to determine whether certain groups of consumers experienced difficulties in understanding 3G data-charging. An examination of all 3G bill-payers shows that their understanding of excess data usage charges was relatively low—39 per cent were confident in their understanding while 33 per cent were not at all confident. To a large extent, this was influenced by whether the bill-payer used 3G features and was therefore directly affected by data-charging.
Just under half of the 3G feature users were confident in understanding the charging arrangements for excess data use, while 22 per cent were not very confident and 24 per cent were not at all confident. Unsurprisingly, non-3G feature users were not as confident, as they are less affected by data-charging.
A comparison of other groups shows that parent 3G bill-payers are more likely to be more confident about understanding how excess data usage is charged than are adult bill-payers.
Overall, the understanding of excess data usage charges was low. The impact of this is explored further in Chapter 6.


Figure 16 Confidence in understanding how excess data usage is charged (%)



Base: Bill-payers in fixed-line households n=666, non-fixed-line households n=79, parent 3G bill-payers n=49, adult 3G bill-payers n=617, 3G feature users n=380, non-3G feature users n=569.

Source: B7a3. And how confident are you that you understand how your excess data usage is charged?


In terms of how customers pay for data used on their mobile phone, 49 per cent of 3G bill-payers from fixed-line households use the data allowance included in their plan, 26 per cent pay for data as they use it and just six per cent use a browsing pack. The most common way for customers to learn about usage charges was in a store (48 per cent), while 12 per cent obtained this information from their contract.


Parent and adult 3G bill-payers have significantly different levels of understanding of how data usage and excess usage charges operate. Parents (64 per cent) have a greater understanding of data usage charges than do adults (47 per cent). As well, 62 per cent of parents understand excess data usage charges compared to just 36 per cent of adults.
Parent 3G bill-payers from fixed-line households most often have data included in their child’s plan, with 47 per cent purchasing data in this way. Another 31 per cent pay for data usage as they go. Among adult 3G bill-payers, 49 per cent have data included in their plan and 25 per cent pay for the data they access.
Both groups often had such charges explained to them in a store, with 53 per cent of parents and 47 per cent of adult bill-payers identifying this source. Another 13 per cent of the parent group had the charges explained over the phone—significantly less than the 27 per cent of adults. However, this corresponds to the percentage of parent and adult bill-payers who purchased their phone plans over the telephone.

5. Experience of unexpectedly high bills


This chapter presents the incidence of unexpectedly high bills (for post-paid 3G bill-payers) or credit running out faster than expected (for prepaid 3G bill-payers). Where relevant, comparisons are provided according to the following target groups:

  • parent bill-payers

  • adult bill-payers

  • 3G feature users

  • non-3G feature users

  • prepaid users

  • post-paid users.

This chapter also examines the aspects of phone use that contributed to consumers receiving an unexpectedly high bill and the amounts by which they might overspend. Comparisons are made between the level of understanding of the payment plan and charging arrangements by customers who had received a higher than expected bill and by those customers who had not.
Case studies based on interviews with 3G bill-payers are also included to highlight individual experiences of receiving an unexpectedly high bill. Actions taken by such consumers are discussed in Chapter 7.



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