Reading Cell Phone Bills
Reading cell phone bills is essential for consumers to understand the various charges associated with their wireless services. Monthly bills typically include fixed charges for services like texting, voice messaging, and data, but also encompass additional costs such as surcharges, service fees, and taxes that may not be immediately apparent. Given the widespread use of cell phones—90% of American adults owned one by 2014—it's important for users to be aware of how their plans work. Many consumers unknowingly overspend on wireless services, often due to unclear billing practices or unexpected overage fees, particularly with data usage or international roaming.
Customers are encouraged to analyze their cell phone bills regularly to identify any hidden charges and monitor their data consumption. While some carriers offer unlimited service plans, others may impose significant fees for exceeding data limits or using services while traveling abroad. Understanding these intricacies can help consumers avoid hefty bills and choose plans that align with their usage habits and budget. Moreover, with the option of prepaid plans, users can pay for services in increments, providing another avenue for managing costs effectively. Regular scrutiny of cell phone bills is a proactive way for consumers to ensure they are not paying more than necessary.
Subject Terms
Reading Cell Phone Bills
This article describes how customers can examine their cell phone bills to understand the charges therein. Telephone companies set the price of usage according to certain plans. For instance, fixed prices are set for services such as text messaging, voice messaging, and data on a monthly basis. Those prices include additional costs such as surcharges, service fees, and taxes that are not always clear to the consumer.
Cell phone use has become ubiquitous. According to the Pew Internet Project, as of 2014, 90 percent of American adults own cell phones (64 percent own smartphones). Both teenagers and adults use them on a daily basis for texting, social media, games, and other functions. Cell phones became commercially available in the 1980s and affordable in the late 1990s. However, at that time cell phone use was still expensive. As time went on, and technology advanced, wireless carriers began to introduce unlimited service plans. Eventually, with the advent of smartphones, connection to the Internet became possible, creating additional charges for wireless customers.
Traditional telephone companies, such as AT&T and Sprint began to introduce cell phones and cell phone plans to customers, alongside fixed phone service (or landlines), in the 1990s. The cell phones themselves are manufactured by electronics companies such as Samsung, Nokia, and Motorola and are distributed by the telephone companies.
Cell Phone Usage
According to BillShrink, a consumer ratings firm, Americans overspend more than $350 annually on wireless services. This is because most people do not realize how many minutes are used up by voice messages or the cost of sending text messages. Additionally, wireless carriers entice customers with inexpensive products that are attached to two-year contracts, which are costly to break if customers want to cancel their service.
A major fear for cell phone consumers regarding their bills is finding unknown charges and extra fees or using too many minutes without knowing it. Stories about extremely high cell phone bills appear in the news from time to time. For instance, a Florida woman was charged over $201,000 while in Canada because of international roaming fees. Others have reported bills in the thousands of dollars for unintentional overuse. Understanding one’s wireless service limitations will curb those excesses. Wireless carriers also offer service alerts when customers reach their limit.
Aside from texting and voice services, wireless carriers allow for Internet access through data plans. Each carrier has a different pricing system for data. Some offer unlimited data, while others charge customers according to the amount of data they download. A noncontract wireless service with unlimited data can save customers money, since the price is bundled with text and voice services. However, there is a downside to using smaller carriers. The larger wireless carriers such as AT&T and Sprint have their own networks for transmitting data, but smaller wireless carriers such as MetroPCS outsource their service to smaller networks, which can have bad service and charge excessive roaming fees. Choosing to use a service such as MetroPCS will depend on how much customers use the service and what their budgets and needs are. Some customers use prepaid cell phones. In this case, there is not a monthly charge; instead, customers pay in one-time increments—after they use up the amount for which they have paid, they recharge their amount of service.
Analyzing a Cell Phone Bill
Cell phone bills come with additional charges alongside the initial monthly service charge. Most wireless carriers offer unlimited minutes for calling and texting but have different levels of limits on data usage. Extra costs on a bill may result from overuse of data; for example, some games can use up to 60 megabytes (MBs) to download. Also, when customers are out of their country, international roaming fees can be extraordinary. One must make sure to contact their carrier for international calling service, or simply not use their phone when out of the country.
The additional charges on cell phone bills are usually miniscule individually, but they can add up. There can be federal, state, and local taxes; a universal service charge; a 911 service fee; and third-party billing. Other charges may include directory-assistance phone charges, monthly calling-plan charges, or feature charges such as call forwarding, three-way calling, and voicemail.
Customers should check their cell phone bills every month to ensure there are no hidden fees. They should also look at their data use regularly, so as not to exceed their limitation.
Bibliography
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Rainie, Lee, and Maeve Duggan. "Cell Phone Activities 2012." Pew Internet. Pew Research Center, 25 Nov. 2012. PDF file.
Wiens, Kyle, and Sina Khanifar. "The Cellphone Unlocking Bill Finally Passed, and It’s a Total Sham." Wired. Condé Nast, 3 Mar. 2014. Web. 21 Apr. 2015.
"Worry over Mobile Data Costs Prompts Americans to Compromise Productivity, Ads Stress to Travel Experience, Survey Reveals." PRNewswire. UBM, 31 Mar. 2015. Web. 29 Apr. 2015.