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Senators Propose Wireless Consumer Protection Bill
By Teresa von Fuchs
WirelessWeek - September 07, 2007

Senators announced plans to introduce a consumer protection bill that could limit fees and surcharges wireless carriers impose on customers. The bill, called the Cell Phone Consumer Empowerment Act, is sponsored by Amy Klobuchar (D-Minn.) and Jay Rockefeller (D- W.Va.). It seeks to enact new controls over wireless carriers.

"The rules governing our wireless industry are a relic of the 1980s, when cell phones were a luxury item that fit into a briefcase instead of a pocket," Klobuchar said in a statement.

Portions of the measure would require wireless carriers to pro-rate early termination fees, to provide consumers with a detailed map of service quality dropped-call areas and would prohibit carriers from charging any extra fees unless they are explicitly required by state or federal regulations.

"Anyone who looks at a cell phone 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," Rockefeller said in a statement. "It's high time to protect cell phone users from these deceptive billing practices."

The bill also would ask the FCC to investigate carriers' common practice of tying devices to a network, an issue coming to light lately with the release of Apple's iPhone and AT&T's exclusive contract to carry it. "You shouldn't have to perform surgical maneuvers to pair the technology you want with the service that fits your needs and your budget," Klobuchar said during a press conference.

Senators Klobuchar and Rockefeller are part of the Senate Commerce Committee, which has jurisdiction over the wireless industry. The senators have said they expect a similar bill to be introduced in the House.

CTIA responded to the senators proposed bill, by saying that they were basing their complaints on incomplete and misleading data. In a statement, CTIA said, "The truth is that complaints about wireless service to the FCC are infrequent and declining…Wireless consumers in America enjoy the most affordable service in the free world…The Klobuchar-Rockefeller bill is unnecessary and, if enacted, threatens to increase the cost of wireless service and reduce the number of choices available to American consumers."

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