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FOR IMMEDIATE RELEASE
April 15, 2008


Statement of the Telecommunications Research and Action Center on FCC Enforcement Bureau Decision Regarding “Retention Marketing”

Decision empowers consumers and increases competition, says TRAC

WASHINGTON, DC - The Telecommunications Research and Action Center (TRAC) today applauded the Federal Communication Commission Enforcement Bureau’s decision to permit telephone companies the right to offer consumers who are about to switch local telephone service premiums and other incentives not to switch. The decision, which came in response to a complaint filed by Bright House Networks over Verizon’s efforts to retain customers who were planning to port their local telephone service away from the company, gives consumers additional leverage in their efforts to negotiate better deals with telephone and cable companies. The FCC's Enforcement Bureau on April 11, 2008 agreed with TRAC’s position on this issue and denied the complaint, which if approved could have halted this practice.

TRAC is a national non-profit organization that promotes the interests of residential telecommunications consumers. Since 1983, TRAC has empowered consumers by publishing consumer guides, research reports, and consumer e-newsletters focused on helping them navigate the often-confusing world of communications products and services.

The following statement is attributable to John Breyault, TRAC Research Director:

“Consumers increasingly expect to be able to negotiate favorable deals with all their communications service providers, regardless of platform. We applaud the Enforcement Bureau’s decision to give consumers the leverage they deserve when negotiating with carriers for local phone service. This decision empowers consumers and increases competition for local phone service.”

“We also endorse the Enforcement Bureau’s recommendation that the Commission issue a Notice of Proposed Rulemaking to make customer retention practices consistent across all communications platforms. Such a rule would help consumers compare the offers they are receiving from bundled service providers on an ‘apples to apples’ basis, thus increasing transparency in the marketplace.”

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