Home > Latest News > Optus CEO Warns of Soaring Bills

Optus CEO Warns of Soaring Bills

As iPhone 5s and 5C as well as Samsung Note 3 were unveiled this week, new research released from Optus suggests one in three Aussie parents (32%) have been hit with massive mobile bills from their kids.  

A shocking one in three parents received a bill of $300 or more.
Optus CEO, Kevin Russell says new 4G phone users could fall prey to bill shock.
“Optus data shows when consumers switch from 3G to 4G handsets, activities like streaming music and videos often doubles as users take advantage of faster download speeds. 
“Without simple precautions, younger smartphone users, often unfamiliar with how much data their new 4G mobile is using, are more likely to exceed their limits, leaving mums and dads footing the bill.”
Kids across the country are getting carried away by data consumption and going over their post-paid limits, majority of Aussie parents 66% picking up the bill, the research shows.. 
73% hit by bill shock never thought they would exceed their plans. 
The cause for the excess usage? 4G ,4G and more 4G. 
The super-fast speeds of 4G networks with streaming content allow far quicker surfing of the net compared to 3G, so users do not realise their usage. 
Optus says My Plan gives consumers the freedom to use their phone without the fear of bill shock. Users who go over their plan limits are moved up to the next level, avoiding large excess charges.
However, telco’s in general are agreed that cost of data is going to rise, as they put billions into building 4G networks, plus  the heavier consumption by consumers. 
“At Optus we’re putting control back in the hands of our customers because we want them to use their phone without fear of penal charges if they exceed their monthly data allowance” said Russell.  
Here’s what else the research found:
. 57% of parents say they would not be financially able to pay a high bill received due to their child’s overuse. One in three parents would need to make a sacrifice to cover the cost

. 75% of Aussie parents admit to being concerned about their child’s mobile use and 65% do not trust them to stay within their data limits
. 76% of mums and dads don’t have pre-agreed rules in place with their children to prevent bill shock
. 48% say they educate their child about responsible smartphone usage following a larger than expected bill