WASHINGTON, D.C. - Federal Communications Commission Chairman Michael Powell's resignation today signals the end of four years of leadership that focused on promoting the goals of telecommunications competitors instead of protecting the interests of telecommunications consumers. The Telecommunications Research and Action Center (TRAC), the nation's leading telecommunications-focused consumer group, today noted that the regulatory gridlock of the Powell chairmanship has allowed consumer rip-offs in the telecommunications industry to continue unabated. Additionally, regulatory uncertainty surrounding broadband deployment has allowed other parts of the world to move ahead of the United States in the development of a truly high speed Internet.

"Chairman Powell's tenure at the FCC has not resulted in a better deal for America's telecommunications consumers," said TRAC Chairman and founder Samuel A. Simon. "Regulatory uncertainty under Powell's watch has created ideal conditions for a 'perfect storm' of endless litigation that has set back the development of a twenty-first century telecommunications policy by years. The end result of these regulatory and judicial fights is that the FCC's mission of protecting the nation's telecommunications consumers has taken a back seat to courtroom battles over market share in a multi-billion dollar industry."

The next Chairman of the FCC should keep consumers of the Commission at the forefront of their thinking in determining the nation's future telecommunications policies. TRAC has produced a pro-consumer telecommunications agenda that we hope to see followed during the tenure of the next Chairman. The next FCC Chairman should:

• Support a Broadband Policy - Most American's do not have access to truly high speed internet. Other parts of the world are leapfrogging America by deploying fiber optic level technology. The FCC needs to adopt policies that give true incentives for the ubiquitous deployment of high speed technologies.
• Protect Consumers not Competitors: The FCC needs to focus on creating consumer protections, not competitor protections. Too much energy is wasted in inter-industry battles, while consumer abuses go unaddressed. Competitors will take care of themselves. Consumers need good information and enforceable rights to ensure that they are not ripped off. Among the protections, the FCC should:
1. Promote Better Rate Disclosures: The FCC should require all carriers - local, long distance, wireline, and wireless -- to have full and easy to understand disclosure of rates and terms of service. These should be readily available on the Internet, and organized in a way that "Google" type searches and questions can pull up relevant information.
2. Advertise the real cost - Telecommunications providers must be able to recoup the costs of complying with government regulations. However, they shouldn't be allowed to do it "under the table" through various add-on fees, taxes, and surcharges. Currently, these additional costs can make up fifteen percent or more of the typical consumer's monthly telephone bill. These fees should be incorporated into the cost that is advertised to consumers so that they can make an informed buying decision.
3. Outlaw cell phone locking - Consumers shouldn't be forced to buy a new wireless phone every time they switch carriers. While the advent of wireless number portability gave consumers new freedom to shop around for the best deal on wireless service, being forced to spend money on a new wireless phone is a de facto barrier to true competition in the industry.
4. Enact sensible VoIP policies - Voice Over Internet Protocol, or VoIP, is the new wave in telecommunications technology and should not be subject to the same regulations that have been built into the legacy telephone network over the past one hundred years. However, safeguarding consumer protections such as redundant power, true 9-1-1 access, and universal service should be at the top of the list of priorities for regulators.

# # #

MEDIA CONTACT:

John Breyault, TRAC, johnb@trac.org, 202-263-2943

ABOUT TRAC:

The Telecommunications Research and Action Center (TRAC), founded in 1983, is a non-profit membership organization based in Washington, DC that promotes the interests of residential telecommunications customers. TRAC staff researches telecommunications issues and publishes rate comparisons to help consumers make informed decisions regarding their long distance and local phone service options. TRAC can be found on the web at http://www.trac.org.