What is “Bill Shock” and 5 Ways Your Business Can Avoid It

Reliable telecommunications and connectivity are non-negotiables when it comes to maintaining smooth operations, staying connected with clients, and ensuring efficient communication within teams.

However, as businesses rely more heavily on mobile data, international calls, and other telco services, there is an increasing risk of encountering a costly and disruptive phenomenon known as "bill shock".

What is “bill shock”?

Bill shock occurs when one or more of your telecommunications services is overused, abused or there is a big overspend on your phone bill that is abnormally large compared to previous bills.??

Telco bill shock could occur due to international roaming call charges if your plans don’t make provision for global roaming, calls from mobiles or landlines to international numbers, or heavily exceeding your data allocation allowances on your mobile phone services.?

Here are 5 things you can do to help your business avoid bill shock and keep your costs predictable and manageable.

1. Implement Centralised Usage Monitoring

For businesses, especially those with multiple employees using company-provided mobile devices, centralised usage monitoring is essential. By utilising a centralised platform or service provided by your telecom provider, you can track and manage data, calls, and text usage across all devices in real-time.

This approach not only helps prevent individual employees from exceeding their plan limits but also allows you to identify patterns or spikes in usage that might indicate potential overages. Centralised monitoring tools often come with features like automated alerts and detailed usage reports, giving you the ability to take proactive measures before any significant overage occurs.

2. Establish Clear Usage Policies

One of the most effective ways to avoid bill shock is by setting clear telecommunications usage policies for your employees. These policies should outline acceptable use, including guidelines for mobile data consumption, international calls, and roaming.

Make sure your employees understand the cost implications of their usage, especially when it comes to data-heavy activities like streaming or large file transfers. Encourage them to be mindful of their data usage, particularly when traveling abroad. By establishing and communicating these policies, you can significantly reduce the risk of unexpected charges.

3. Leverage Corporate Plans and Customisation Options

Corporate telecommunications plans often come with features and benefits designed to meet the specific needs of businesses. If your company hasn’t already, consider negotiating a custom plan with your telco vendor that aligns with your usage patterns and business needs.

Many providers offer pooled data plans that allow multiple devices to share a single data allowance, reducing the risk of any one device exceeding its limit. Additionally, some providers offer flexible roaming packages, international calling plans, and data bundles tailored to corporate use, which can help avoid the steep costs associated with standard plans.

Make sure you regularly review your corporate plan to ensure it continues to meet your business’s needs. As your company grows or usage patterns change, adjusting your plan can help avoid overage charges and ensure your telco expenses remain predictable.

4. Utilise Roaming Management Solutions

Roaming charges are a common cause of bill shock, particularly for businesses with employees who travel frequently. To avoid these unexpected costs, it’s important to have a roaming management strategy in place.

Many telco vendors offer roaming management solutions that include automated alerts, spend caps, and the ability to block or limit roaming usage. These solutions can be tailored to your business’s needs, ensuring that your employees stay connected while abroad without incurring excessive charges.

Before your employees travel, ensure they are aware of roaming policies and options available to them, such as purchasing an international roaming package or using local SIM cards. Roaming management solutions provide peace of mind and control, allowing you to budget accurately and avoid unpleasant surprises on your next bill.

5. Regularly Audit Your Telco Bills

Despite the best monitoring efforts, unexpected charges can sometimes slip through. To catch these, scheduling regular auditing of your telco bills is essential. Conducting a thorough review of your monthly statements can help you identify any discrepancies, unauthorised usage, or billing errors.

Consider using telecom expense management (TEM) service or software, which can automate the process of analysing your bills and identifying areas where you might be overspending. These tools can also provide valuable insights into your usage, helping you to make informed decisions about plan adjustments or policy changes.

For businesses large or small, avoiding bill shock is not just about controlling costs—it’s about ensuring financial predictability and maintaining the efficiency of your operations. By implementing centralised usage monitoring, establishing clear usage policies, leveraging corporate plans, utilising roaming management solutions, and regularly auditing your bills, you can protect your business from the financial strain of unexpected telecom charges.

If you have been suffering from ‘bill shock’ or want to avoid it, Telco Broker can provide you with a complimentary assessment of your telecommunications needs and find you the best services and plans suited to your business requirements and budget.?

Call us on 1300 978 073 to book your complimentary review or head to our website for more information.