Telcos face new disclosure rules CHOOSING and comparing mobile, telephone or broadband contracts will become easier for consumers with the introduction of disclosure rules. Starting on Friday all telcos must provide shoppers with a free two-page "critical information summary" that clearly states the monthly charges and value of any contract. For mobile contracts, this includes the minimum length and cost of the contract, any early exit fees, the cost per call and text, and any services not included in the monthly fee, such as video and international calls. Any telco that does not provide a summary potentially faces a $250,000 fine. This marks the second phase of new consumer-friendly rules introduced by the Australian Communications and Media Authority, after an 18-month investigation of why there were so many consumer complaints against telcos. The authority found consumers were confused about contracts or were paying too much because it was too difficult to compare costs. We asked [industry] to scrap the use of the word 'cap' as well as stopping inaccurate use of terms such as 'free' and 'unlimited'. The [summary] is the next step in improving the telco customer experience," deputy chairman Richard Bean said. And for the first time consumers will be able to compare call costs between contracts and carriers with the summaries stating the minimum cost of a two-minute call. A spokeswoman for the Australian Communications Consumer Network said the critical summaries could have the same impact as unit pricing in supermarkets. "People do not have great awareness of what it costs to make a call or send an SMS because of the way our plans are structured," she said. Call costs with Telstra, Vodafone and Optus plans were roughly similar. Consumers can also expect to see new warnings about global roaming fees and information on how to set up usage alerts and links to complaint lines. The next phase, to be introduced in September, forces large telcos to alert customers when they reach 50 per cent, 80 per cent and 100 per cent of monthly usage limits. Small telcos must provide this service by September 2014.