Summer vacation season is here and mobile users are making greater use than ever before of their mobile phones and smartphones while abroad. For operators, this is the time when they need to make sure their charging systems are prepared to cope with the demands of users accessing data services around the globe and ensuring their customers don’t experience “bill shock” when they return home.

According to the recent FCC survey, one in six cell phone users – about 30 million people across the United States – have experienced bill shock as a result of a dramatic increase in charges from one month to the next. One of the major reasons customers experience bill shock is the result of traveling abroad and not understanding roaming charges and/or carriers not notifying subscribers of the charges they will accumulate while they are roaming.

In addition, due to the global improvement of mobile data coverage, consumer behavior has evolved, making staying connected while vacationing outside the U.S. just as important as it is when at home. For many, their mobile device serves as an entertainment system, travel guide, concierge and companion. On top of that, subscribers also use their device in the more “traditional way,” i.e. to stay in touch with loved ones, make calls, send MMS and SMS, and access Twitter, Facebook and other social networking sites.

These demands mean a significant increase in data traffic, and an increase in the likelihood that customers will experience bill shock when they get back from their vacations.

Mobile subscribers have a long way to go in terms of understanding roaming charges. Research conducted by Acision last year found a staggering lack of awareness of roaming charges, with nearly two-thirds of consumers stating that they were completely unaware of the costs associated with using their mobile phone abroad, and only 10 percent feeling that they were being charged a fair price for roaming. This is a massive opportunity for operators: If they are able to alleviate customers’ fears while at the same time responding to their needs, the revenue opportunities for further growth in data usage abroad are huge.

The research also revealed that 42 percent of consumers would use their mobiles more frequently abroad if they could set a cap on their spending, giving them the control and freedom to use their mobiles without the worry of running up a costly bill. Consumers also stated they would feel more at ease if their operator offered roaming bundles, with 67 percent saying that they would purchase a bundle to call and text home while vacationing abroad.

But it’s not just calls and texting that consumers are interested in while travelling globally – 11 percent also would like to buy a data package to access the Internet for a variety of things, including e-mail and social media. Additionally, 22 percent would like to access social networking sites, 18 percent would like to watch TV and 11 percent would like to download TV programs and movies.

Unlike the European Union where significant progress already has been made towards regulating roaming charges with legislation, the United States currently remains unregulated.  In the EU, carriers are required by law to send text messages to consumers when they are accruing roaming charges or getting close to reaching a set limit for data roaming – €50 per month.

In the U.S., the FCC is looking to implement usage alerts and cut-off controls similar to those required by the EU, but at this point, the legislation is still in the planning phase. In May 2010, the FCC’s Consumer and Governmental Affairs Bureau issued a Public Notice asking carriers if there are reasons why U.S. carriers couldn’t alert subscribers automatically when they are at risk of accruing a high monthly bill. According to CTIA, AT&T, Sprint, T-Mobile USA, Verizon Wireless and a few Tier 2 carriers currently allow subscribers to monitor their data usage by text message notifications.

To effectively implement a new roaming model requires a charging system that gives both operators and consumers access to accurate, real-time account information, as well as the flexibility to support roaming service bundles, real-time spend limits, user notifications and self-care based recharge. Personalized charging, multi-service bundles and “design your own” plans are becoming more popular as consumers look for better value and more flexibility over the way they are charged for services. As evidenced by the EU legislation, it adds to the pressure on operators looking to achieve competitive advantage as well as compliance.

The success of the EU legislation and the potential legislation in the United States relies heavily on achieving a very fine balance between consumers’ increasing need to be always connected via their mobile device and their wish to stay in control of the amount they pay for this service. Operators need to deploy an appropriate technology platform to help them meet these requirements and better serve consumers’ needs. Legislation not only means a more fair deal for consumers but with the right technology solution, operators can encourage their subscribers to use their mobiles more frequently while abroad, providing them with valuable revenue opportunities.

In the EU, this summer will be one of the first real tests of whether the caps placed on data costs will be able to harness the real potential of roaming for both consumers and operators. If the legislation is successful in the EU, the U.S. will be soon to follow.

David Knox is Global Product Marketing Manager at Acision.