Consumer groups warn of iPhone ‘bill shocks’

As smartphones become more affordable and their use spreads across Europe, citizens surfing the Internet on their mobile handsets abroad are at increased risk of unexpected rocketing phone bills, warns European consumer organisation BEUC.

Tales of English tourists being charged hundreds of pounds to watch mobile television in Spain, or German parents forced to pay huge mobile phone bills as a result of their children checking their emails on school trips, are already becoming commonplace.

What’s more, the proliferation of more affordable smartphones, such as the new 3G iPhone or the latest versions of Blackberry, means that unexpected high bills can also affect those users most aware of the dangers associated with irresponsible use of mobile Internet abroad, warns BEUC.

The consumer group underlines that new functions included in the lastest generation of smartphones, such as automatic checking of email received or researching available mobile software updates, can result in unwanted charges, especially when consumers are abroad and thus subject to higher roaming tariffs.

Indeed, every time the phone carries out such unrequested tasks, it connects to the Internet, the cost of which subsequently hits users with contracts providing a limited or no Web package. Even unlimited contracts are subject to this drawback when the consumer is abroad, because roaming is generally not included in the agreements.

BEUC made these concerns clear to the European Commission in its response to the public consultation conducted by Brussels on the review of the current roaming regulation. Based on this opinion and the responses of other relevant stakeholders, Information Society Commissioner Viviane Reding will announce the measures that the Commission intends to take in the autumn.

At stake is the possible extension of price ceilings to data roaming, as well as the prolongation of current caps on voice roaming and the introduction of new charge limits for SMS roaming (EURACTIV 15/07/08).

Reding has already made clear that she will go ahead with voice and text roaming, while she is still making up her mind concerning data. Bill shocks are universally condemned, both by consumers and the industry itself, which fears that consumers will fail to enter this new highly promising market. A more controversial issue relates to the means of tackling the issue and whether this should be by imposing compulsory measures on operators or by increasing and improving information to consumers.

Initially, the latter option appears most likely to be adopted. Consumers are already freely informed about roaming prices as soon as they cross an EU border. A stronger approach could require operators to alert users if abnormal costs occur or when they exceed predefined charge limits.

Read more with Euractiv

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