For a long time, U.S. consumers have demanded better billing transparency from their cable and satellite providers. We’ve seen those providers respond to that demand in varying degrees—many of them making it a customer experience (CX) priority to simplify their bill presentment.
What we’re seeing now, though, is the Federal Communications Commission (FCC) getting more involved, pushing operators to simplify their bills in specific ways. Exhibit A is the “Nutrition Facts”-style broadband labels that the FCC is requiring internet service providers to use for displaying costs and performance of high-speed internet plans. Exhibit B is the “All-In Pricing Rule”, which took effect in April and aims to eliminate “junk fees” in cable providers’ ads and statements.
Last month we covered the broadband labels, which you can check out in this post. Here’s a breakdown of what providers need to know about the new All-In-Pricing Rule.
WHAT IS THE ALL-IN PRICING RULE?
The rule requires cable and satellite providers to display the total cost of video programming services “as a prominent single line item” in their ads and on their customers’ bills. Fees and charges related to that programming (e.g., regional sports fees, HD technology fees, etc.) can no longer be relegated to the fine print. Other charges can still be itemized outside of that “prominent single line item”—more on those below.
The order went into effect in April, but most cable and satellite providers have until December 19, 2024 (at the earliest) to comply with its requirements. Smaller providers (i.e., with annual receipts of $47 million or less) will have a longer runway, their deadline being March 19, 2025.
3 THINGS TO KNOW ABOUT THE ALL-IN PRICING RULE
1. IT APPLIES TO ALL RESIDENTIAL VIDEO SERVICES FROM CABLE AND SATELLITE PROVIDERS
That includes video services bundled with other services like broadband or phone. Providers that offer a service bundle that includes video programming have to show the total monthly charge for video services separately from the other services and the bundle’s total charge. Note that it’s residential video services: The rule doesn’t apply to business customers or bulk buyers of non-residential video services, which tend to have negotiated contracts.
2. PROVIDERS MUST LIST WHERE PROMOTIONS APPLY—AND WHEN THEY’LL EXPIRE
The All-In Pricing Rule also requires cable and satellite providers to tell consumers about any promotional discounts that apply to a video service. Monthly bills will also need to notify customers of the expiration date of the promo discount 60 and 30 days before it ends, and what that post-promotion “all-in” rate is going to be.
3. THE RULE DOESN’T APPLY TO ALL CHARGES
Providers can still exclude various line items and refer to them elsewhere in ads or bills. These include:
- Taxes
- Administrative fees
- Equipment fees
- Streaming fees
- Other charges unrelated to video programming
THE BOTTOM LINE: BILLING TRANSPARENCY IS PARAMOUNT
If nothing else, the FCC’s action against “junk fees” draws more attention to providers and whether they’re sending out clear, easy-to-understand statements. It shouldn’t take regulatory activity for cable providers to prioritize the billing experience, however. Easy billing journeys should be incentive enough as they reinforce customer loyalty, and confusing bills draw costly calls to the contact center. We’ve found that billing-related calls account for up to 50% of contact center volume.
Here’s how cable providers, with CSG’s help, can give their subscribers clear billing experiences that build trust.
AUDIT THE BILL DESIGN FOR CLARITY
Cable providers would be surprised to know how many ways they can make their monthly printed bill more customer friendly. We conducted a consumer study to identify what information subscribers want from their bills and where they look for it. That research is in this eBook, which cable providers can use to guide a bill redesign.
PROVIDE AI-POWERED BILL EXPLANATIONS
Using generative AI, cable providers can give each subscriber a personalized breakdown of their monthly bill. The AI draws from individualized billing data to create a microsite for each customer, which explains to them in plain language the key facets of their statement:
- Changes from the previous bill (and why the amount changed)
- Balance due
- Payment terms
- Usage fees and additional charges
- Taxes and other balances
It’s a fantastic tool for billing transparency, and it’s easy for providers to implement. See how CSG Bill Explainer works here.
USE INTUITIVE BILL DESIGN TOOLS
To create billing statements that are easy to understand, it helps to have bill design tools that are easy to use. Cable providers should have a composition solution that has pre-built templates and intuitive interfaces for formatting, organizing and summarizing the bill content.
Simplify your bill presentment
We offer solutions to simplify your bill presentment by combining charges or organizing them clearly within specific sections. This creates a transparent billing experience for your customers, reducing confusion and boosting satisfaction.
