Subject: [NEXTEL-1] Cell phone users to get a "Bill of Rights"

From: Marcel <[email-masked]>
Date: Wed, 12 Mar 2003 03:49:27 -0500

Cell phone users to get a "Bill of Rights"

The USA Senator Charles Schumer has launched a cell phone user bill of rights aimed at
improving wireless service and making competition an ingrained part of the wireless
industry. Schumer's bill would mandate number portability between companies; create a box
with contract and service information on solicitations and contracts (similar to the
Schumer box on credit card solicitations); and authorize the FCC to monitor cell phone
quality.

"One of the great things about our free market system is that if someone does a bad job,
you can find a better company and take your business there. One of the exceptions to that
rule however, is the cell phone industry," Schumer said. "By preventing cell users from
keeping their numbers when they switch providers, wireless companies effectively lock in
consumers by artificially raising the costs for switching. If you're a small business
owner who relies on a cell phone to stay in touch with customers, you can't switch
providers when a cheaper plan is available because you can't risk losing touch with your
customers."

In an effort to address these issues, Schumer unveiled legislation to improve competition
in the cell phone industry entitled the Cell Phone Users Bill of Rights. Schumer said the
bill is intended to foster competition in the cell phone industry by improving disclosure
and making it easier for consumers to choose plans. Schumer said he rejected a
mandate-based approach out of concern that external government fiats would stifle
innovation and investment in the relatively young wireless industry. The Cell Phone Users
Bill of Rights accomplishes this goal through three main initiatives:

• Number portability Although the FCC originally ruled that industry wide number
portability needed to be in place by December of 1998, the Commission has extended that
deadline five times under pressure from the industry to this November. The November
deadline only applies to those companies who filed "bona fide" portability requests with
one another by February 24th. The industry association has said it would seek another
extension and industry critics are concerned that few companies will file those bona fide
requests. Schumer said, however, that Verizon and T-Mobile told him that they would comply
with the November rule and file portability requests.
To ensure that the rest of the industry follows suit, Schumer's bill would require the
entire industry to be compliant with number portability by November 2003 or within six
months of his bill's passage – whichever comes earlier – in the 100 largest market areas.

• Schumer Box on Cell Phone Solicitations and Contracts The bill requires marketing
materials and contracts to clearly spell out the terms and conditions of service plans.
The bill requires all wireless contracts and marketing materials to place a similar box
containing standardized information on numerous key issues. All plans will have to
disclose rate info, including calling-from area, monthly base charge, per minute charges
for minutes not included in the plan and the method for calculating minutes charged.
Information on minutes in the plan, including weekday/daytime, nights/weekend,
long-distance, roaming, incoming and directory assistance will also have to be displayed.
Termination and start-up fees and trial periods will have to be outlined as will any taxes
and surcharges.

• Improving government monitoring of cell service The bill authorizes the FCC to monitor
service quality industry-wide. Data will be collected and made publicly available so
consumers can compare signal strength among providers, look at dropped call counts per
carrier and compare dead zones across carriers. Most importantly, consumers will have
access to high resolution maps that detail variations in call quality across a provider's
service area.

The Cellular Telecommunications & Internet Association (CTIA) which represents the
wireless industry, has responded to the proposed bill. "Wireless was born in competition,
evolved in competition and continues to innovate through competition," said Steve Berry,
Senior Vice President for Government Affairs at CTIA. “Comparing the competitive wireless
industry to monopolistic landline services is simply ridiculous. Adam Smith would turn
over in his grave to hear that consumers would be better served by poisoning the
competitive wireless market with unnecessary government regulations.”

The CTIA also noted that many “dead zones” are caused by local, state and federal zoning
entities, which deny wireless companies permission to add capacity where it is needed
most, and that billing and Rates questions – including issues of government surcharges,
fees and taxes on monthly bills – top the FCC’s consumer complaint reports.

Posted to the site on 04-Mar-03

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