Tan Kin Lian's Blog: Protect consumers from high mobilephone bills

Saturday, July 28, 2007

Protect consumers from high mobilephone bills

28 July 2007

Editor
Today paper

Many people are not aware about the high cost of using the mobilephone, such as:

* receiving incoming calls when they are away from Singapore (for which they are charged expensive roaming rates)
* chatting for a long time on the mobilephone
* when their phone is used by an unauthorised person

They learn about the high charges only after the bill arrives at the end of the month. By that time, it is too late. These bills can amount to a few hundred dollars, or several thousand dollars.

For low income earners and students, these unexpected bills can be a heavy burden and could lead to bankrupcy.

I suggest that the consumers should be protected from these risks. The authority should make it mandatory for the telephone company to place a reasonable limit of say $200 on the monthly bills. If this limit is exceeded, the telephone company should be required to contact the customer and get his or her specific request to extend the limit. This will ensure that the customer is aware about the charges.

Tan Kin Lian

6 comments:

Anonymous said...: If people are not aware about the high-cost of using the mobilephone, mobile companies should be required mandatory to improve their promotions and flyers to educate the customers.

As for whether we should put a $200 limit that is applicable across all, I would think that the most applicable method would be to do what the credit card company do. Limit is based on your salary and even if they call you, it is only if they detect a high surge in calls that is out of the norm (ie Fraud caused by usage by unauthorized persons).

Phone companies do not have an obligation to ensure you don't overspend but they do have an obligation to educate and put out advertisments that are not misleading.

all in, I believe we should learn to actively manage our own expenses and resources. And live within our means.; July 28, 2007 11:01 AM
Anonymous said...: Maybe the implementation should be more like what credit card companies are doing. Phone companies will only call when they detect a out-of-the-norm surge in calls (ie fraud by unauthorized calls).

For usage-wise, phone companies can allow customers to check their current spending in an easy way (maybe thru an sms).

I believe all should learn to actively manage their own expenses and resources. Live within your means. If we put additional safeguards here and there and everywhere, would we push consumers into states of more ignorances as safeguards are everywhere.. I guess a balance should be strike. But I have to emphasize.. FINANCIAL LITERACY is the most important lesson that should be imparted to all.

You just gave me a business idea, have emailed you. give me your thoughts on it.; July 28, 2007 11:22 AM
Monsoon said...: If we are not watchful, phone bills escalate. There are a lot of unnecessary services that are foisted on the consumers. I think consumers are treated as cash cow to be milk to the utmost. Most of us are unable to keep track of the various charges, it is so confusing and we just pay the bills when it is presented, unless it is exceptionally high.

One way is switch off our handphone but even then, those guys who called us unsuccessfully may still be charged?

Mr Tan idea is very good to have a limit, but then the telcos may provide such a service and then charge you for it. Its another opportunity for them to milk the cow.; July 28, 2007 8:47 PM
Khiat Han Hwee Adrian said...: It is noble of you to suggest to the authority of setting a limit to the telco compamy though I doubt the authority will do anything to your suggestion.

However, your posting may arouse some interest for the journalist to write something about it. Their articles and research may benefit the consumer indirectly.; July 29, 2007 1:07 AM
Thomas Phua's Blog said...: Many parents today have problems with controlling their children's phone bill.

The older they get the higher their phone bill become.

I also do not think school children needs mobile phone, though some disagree.

My children shares my wife's phone when they need it. There is no need to have so many phones in a family.

My eldest daughter got her own mobile phone when she reached Junior college and that is only when her results beat the challenge I post to her and she gets her own mobile phone.

But her bills gets bigger and more than my phone bills.

I told her to pay beyond the limit that is charged, and it still is not controlled.

I recently changed her phone to student plan with free incoming, and if she now has to manage her own bill, because she need to pay her own bill as her allowance now includes the fixed phone bill plan.

I know this sounds harsh, but if there is no control over children in their usage parents have to just bear the bill.

- Thomas Phua; July 29, 2007 9:23 PM
Edwin said...: The solution to your problem is this, get them a prepaid card.

You use, you top up. That simple. No need to worry about exceeding their limit. They exceed, they have to top up themselves. Simple. Pass the cost to them...

Edwin; July 30, 2007 12:41 PM