At a Senate Commerce Committee hearing on consumer wireless issues, Democrats and Republicans split down party lines on the issue of further regulating the wireless industry.

While Democrats lauded the industry for its explosive growth, they also called wireless carriers to task for what consumers are calling "deceptive" billing practices, including early cancellation fees and misleading coverage maps. Republicans, on the other hand, championed the industry, calling the problems "minor" and reinforcing the idea that "competition" has and will take care of any customer complaints.

"One practice of deep concern to me is the explosion of deceptive charges that now appear on wireless bills," said Sen. Jay Rockefeller (D-W.Va.) at the hearing. "In the last few years, traditional and wireless carriers have concocted a number of line item charges, fees and surcharges."

Rockefeller and other Democratic senators are calling for more consumer protection in the wireless industry, especially in the area of early termination fees, with the Cell Phone Consumer Empowerment Act of 2007. Senators say the legislation would require carriers to provide customers with clear information on services and charges, before customers signed long-term contracts.

Verizon Wireless and AT&T have recently updated their contract terms and early termination fees. In light of these recent changes, Republicans on the committee called the act an overreaction.

Sen. Jim Demint (R-S.C.) reportedly said, that this bill "is likely to set back the wireless industry by many years…We need to take a step back and let the wireless industry fix whatever problems there are."

Verizon Wireless CEO Lowell McAdam was the only industry representative asked to testify at the hearing. He cited how competition had been the cornerstone of the wireless industry as "one of the greatest success stories in the history of the American economy." He said the impending legislation was "not necessary" and "could be harmful to consumers."

McAdam also took the opportunity to discuss what he thought were problems within the wireless industry that the committee could be addressing. In his remarks, he said, "Congress should move forward to address two problems threatening the consumer benefits the wireless industry has generated: the threat of patchwork state utility style economic regulation, and the unfair and discriminatory state and local tax burden that has been inflicted on wireless customers."

The hearing was yesterday before the Senate Committee on Commerce, Science and Transportation.