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October 12, 2016<\/p>\n
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Contact: NCL Communications, Cindy Hoang, cindyh@nclnet.org, (202) 207-2832<\/p>\n
Washington, DC\u2014The National Consumers League (NCL), the nation\u2019s pioneering consumer and worker advocacy organization, today called on the Federal Communications Commission (FCC) to examine the role that international mobile roaming (IMR) services play in wireless \u201cbill shock.\u201d An NCL analysis of the market for IMR services found that a significant portion of the more than 73 million Americans who travel abroad annually may be at risk of incurring higher than expected charges on their wireless phone bills, a phenomenon commonly known as \u201cbill shock.\u201d<\/p>\n
In 2011, at the urging of the FCC and consumer groups\u2014including NCL\u2014the wireless industry began providing notifications to travelers of international roaming charges that they may incur while using their cell phones overseas. Given the explosive growth of data-intensive smartphones since 2011, however, NCL believes that notifications alone may not be sufficient to prevent IMR-related bill shock. In comments filed with the FCC, NCL called on the Commission to gather new data on the impact of IMR-related bill shock and consider possible regulatory or voluntary industry solutions.<\/p>\n
\u201cNo one wants a sky-high cell phone bill as a souvenir of their trip,\u201d said John Breyault, NCL vice president of public policy, telecommunications and fraud. \u201cUnfortunately, due to the high cost of roaming, even consumers who are careful and try to limit their mobile data use can come home to a surprise bill in their mailbox.\u201d<\/p>\n
NCL\u2019s analysis of the major American wireless carriers\u2019 IMR service offerings found that roaming package pricing is extremely expensive when compared with domestic service rates. In addition, the carriers\u2019 roaming packages often offer significantly smaller data allotments, slower speeds or both. Finally, while there are cheaper alternatives to buying roaming packages\u2014such as buying a local SIM card and prepaid plan in the destination country\u2014NCL found no instances where U.S. carriers attempted to educate their subscribers about those alternatives.<\/p>\n
\u201cWe recognize that U.S. carriers are often at the mercy of foreign carriers who can and do set wholesale IMR rates far in excess of cost,\u201d said Breyault. \u201cHowever, as regulators around the world have recognized, this situation represents a market failure which the FCC would be wise to examine as it seeks to protect the millions of American consumers who take their smartphones with them while traveling abroad.\u201d<\/p>\n
Since the FCC last examined bill shock, international regulators have taken action to address the high cost of IMR services. The European Union (EU) will eliminate intra-EU roaming fees by 2017 and the Gulf Cooperation Council countries have agreed to reduce IMR data rates by two-thirds by 2020. The Asia Pacific Economic Council and Organization for Economic Co-operation and Development (OECD) have also urged member countries to take action to address high IMR rates and educate consumers often cheaper alternatives to IMR services.<\/p>\n
\u201cConsumers in the U.S. should not play second fiddle to consumers in Europe or the Gulf countries when it comes to protections from IMR-related bill shock,\u201d said Sally Greenberg, NCL\u2019s executive director. \u201cConsumers should not be put at risk of incurring outrageous cell phone charges just because they took their phone with them while traveling abroad.\u201d<\/p>\n