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News
Senate Seeks to Alter Wireless Industry Rules
Thursday, September 6th, 2007 at 4:00 PM - by John Martellaro
Sen. Amy Klobuchar (D-Minn.) is the lead sponsor of a sweeping bill that seeks to dramatically change the wireless industry, according to RCRWireless News on Thursday.
The bill, the "Cellphone Consumer Empowerment Act of 2007," which could be introduced on Friday seeks to set federal standards govering contracts and billing service quality. It also directs the FCC to submit to Congress a study on the effect of handset locking on consumer behavior and competition.
�The rules governing our wireless industry are a relic of the 1980s, when cellphones were a luxury item that fit into a briefcase instead of a pocket,� said Sen. Amy Klobuchar. "Early termination fees are a family budget-buster; families should be able to terminate service without outrageous fees; know if their cellphone will work on their drives and in their home and office; and understand what to expect in their monthly bills once you pile on charges and fees. It�s a simple matter of fairness."
Jay Rockefeller (D-W.Va.) is the co-sponsor. The two proponents noted that complaints to the FCC by wireless customers double between 2003 and 2005.
The bill also seeks to remedy the situation in which consumer billing statements appear to reflect federal fees when, in fact, they are operations costs. "Anyone who looks at a cellphone bill knows it�s a hodge-podge of fees and surcharges that supposedly covers regulatory or administrative costs. The reality is, often these are nothing more than operating costs that companies are passing on to the consumer disguised as fees and taxes," said Senator Rockefeller. "It�s high time to protect cellphone users from these deceptive billing practices."
Mr. Steve Largent, president of the CTIA, a cell phone association, didnt agree with the legislation and claimed that consumer complaints are going down lately.
The National Association of Regulatory Utility Commissioners (NARUC) has a favorable view of the legitlation. "Both senators should be commended for recognizing the clear consumer benefits of having multiple cops on the beat and, importantly, a state consumer complaint option regarding their wireless service," said NARUC Telecommunications Committee Chairman Tony Clark of North Dakota.
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