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A Code for Carriers
Wed, 07/28/2010 - 2:10pm

CTIA today released an updated version of its "Consumer Code for Wireless Service."

First off, I'm not aware of what other industries distribute in terms of a code for how they offer or present services to consumers. I haven't seen anything similar from the credit card industry, although there could be something out there that I'm unaware of. Second, some people will accuse the wireless industry of using this code to stave off the threat of regulation. Hard to argue with that. Of course the industry is going to do whatever it can to keep regulation at bay. If that means adopting voluntary practices to please consumers, that's a good thing.

Now onto the most recent code, which goes into effect Jan. 1, 2011. Are the items in the code the types of things that anyone should reasonably expect from a service provider, or are they truly going above and beyond in serving customers? Let's take a look at them one by one.

 Disclose rates and terms of service to consumers. Most of this sounds like the type of information any reasonable consumer would expect when they're signing up for and paying for a service. New provisions are being added so that carriers disclose whether there are prohibitions on data service usage and whether there are network management practices that will have a material impact on the customer's wireless data experience. The latter part of this especially would seem to address net neutrality concerns as far as network management practices are used to balance demand and supply. It makes sense. Even Google has said publicly it understands that network management techniques are required in an open Internet setting.  

Make available maps showing where service is generally available. Carriers agree to use generally accepted methodologies and standards to depict the carrier's outdoor coverage. (This doesn't say anything about how a carrier depicts a competitor's coverage, but that's another story.) Even with generally accepted standards, I'd venture to say carriers' coverage maps vary on how well they depict the actual coverage. That's part of the reason companies like Root Wireless exist – it's using crowd sourcing to map real-world coverage. While carriers need to offer their own maps, having third parties track this kind of information is only beneficial for consumers.

Provide contract terms to customers and confirm changes in service. Nothing surprising here; that's to be expected from any legitimate business. Standard operating procedure (SOP).

Allow a trial period for new service. Customers get at least 14 days to try out a service, and if they're not satisfied, they can cancel without getting hit with an early termination fee. Fair enough. Should be clear at the point of sale.

Provide specific disclosures in advertising. OK, put the little 10-point type disclosures in the ads. Here again, carriers promise to include whether network management practices will have a material impact on a customer's wireless data experience. The risk here is including so much information (regarding all disclosures) that the average consumer just breezes past all that fine print. But hey, it's there, so buyer beware.

Separately identify carrier charges from taxes on billing statements. Consumers should know what taxes, fees and other charges are remitted to federal or local governments. Reasonable. 

Provide customers the right to terminate service for changes to contract terms. Carriers promise to give advance notice to customers if they make any material changes to their postpaid contracts and allow customers at least 14 days to cancel their contracts with no early termination fee. Good practice.

Provide ready access to customer service. Customer service promised during normal business hours. SOP.

Promptly respond to consumer inquiries and complaints received from government agencies. This is probably good business sense. Wireless carriers will respond in writing to state or federal administrative agencies within 30 days of receiving written consumer complaints from any such agency. This should be easy for big carriers with dedicated staff; not so easy for smaller carriers with fewer resources, but it's not too onerous.

Abide by policies for protection of customer privacy. Carriers adhere to applicable federal and state laws and will make available to the public their privacy policies concerning information collected online. Each wireless carrier will abide by CTIA's Best Practices and Guidelines for Location-Based Services. I don't see anything amiss here.

All in all, the Consumer Code is succinct and easy for the average consumer to understand, mostly devoid of pages and pages of legalese or government-speak that you might find in your average government report or inquiry.

Some carriers will go above and beyond the code, and that only makes them look good in the eyes of consumers.

When AT&T announced new tiered data pricing in June, it said it would send text notifications when customers approach their monthly usage limit – at the 65 percent, 90 percent and 100 percent of the threshold. Customers with iPhones and other select devices can check their data usage from their phones with a free app. Customers also can get a free text message with usage info, or go online and check. If they're thinking ahead, they can access an online data calculator that will estimate their mobile data usage and get a better sense for which data plan is right for them. People may complain that they aren't getting an unlimited data ride, but AT&T's got the bases are pretty well covered when it comes to giving the heads up on usage.
The industry likes to point out how few complaints the FCC receives about wireless services. But a quick sweep through the Web forums or a check of the daily tech blogs will tell you there are plenty of unhappy campers, both in terms of services and devices. Walking in my local downtown this past weekend, I overheard a couple passers-by describing their wireless phone service provider, which will go unnamed here, as a "rip off." One advised the other that the only time he can wheel and deal and get the upper hand is when his two-year contract is up for renewal.

Inevitably, consumers are going to complain. It's the price the industry pays for offering such a highly sought-after product. But reality-wise, what else should carriers be doing, whether as part of a formal code or not?

In the wireless industry, there's no shortage of people with great ideas and inventions designed to improve the wireless experience. Do you have an example of a service offering from a carrier that goes above and beyond the Consumer Code? Or maybe have an idea that hasn't been implemented? We're compiling ideas for an upcoming feature and interested in hearing about any novel – or just plain common sense – ways to improve customer service. If you know of any, comment here or drop me a line at monica.alleven@advantagemedia.com.

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