WASHINGTON WATCH
Suspension of California Wireless Bill of Rights Hurts Consumers - On Thursday, the California Public Utilities Commission (PUC), under heavy lobbying pressure from the wireless industry and California Governor Arnold Schwarzenegger voted to suspend a sweeping new bill of rights for wireless consumers. “Today’s reversal of the California PUC’s landmark decision to enact a mandatory bill of rights for wireless consumers is a stunning blow to consumers not just in California, but nationwide,” said TRAC Research Associate John Breyault. “This decision represents a victory for industry lobbyists over the best interests of telecommunications consumers.” The bill contained any number of common-sense provisions. For example, the bill would have required wireless carriers to fully disclose all rates, fees, and surcharges associated with their plans; carriers would also have had to notify subscribers at least twenty-five days in advance of service agreement changes or rate increases; and bills would have had to be clearly organized with all additional charges itemized. Since California is often seen as a testing ground for policies that are later enacted nationwide, the wireless industry lobbied heavily to have the new consumer bill of rights stuck into regulatory limbo. As Thursday’s decision confirmed, they have unfortunately won (for now). For more information on this decision, click herei.
BUCKS WATCH
SBC-AT&T Merger Could Hurt Competition, Says TRAC - According to published reports, SBC Communications is in talks with AT&T to purchase the ailing company. “A SBC-AT&T merger concerns us because it has the potential to hurt competition in the telecommunications industry, creating a virtual duopoly between industry giants Verizon and SBC,” said TRAC Research Associate John Breyault. “For consumers, an AT&T merger with one of the smaller Bell carriers like Qwest or BellSouth would be preferable as it would help create a viable third national competitor.” Consumers who are still AT&T long distance subscribers have been battered by various rate and fee increases over the past twelve months; especially since the carrier announced that they would be exiting the market for residential consumers. Subscribers who are interested in switching may want to consider purchasing TRAC’s new TeleTips Residential Long Distance Comparison Chart, which compares more than eighty long distance plans from the nation’s leading carriers. The chart can be purchased on TRAC’s website (www.trac.org) for $6 ($7 for a hard copy). To read more about the SBC-AT&T merger talks, click hereii.
New Fee Hits Verizon DSL Customers - Beginning February 20, 2005, Verizon DSL subscribers will begin seeing a new fee added to their bills. Verizon is calling the new charge a “tax recovery fee” and it could increase consumers’ bills by as much as eleven percent per month. The fee will be in effect until November 2005, when the recently passed Internet Tax Nondiscrimination Act (which TRAC supported) will go into law. Verizon claims that the fee is simply to recover the taxes that they pay to access the local DSL circuit. While it is appropriate that companies be able to recoup the costs of doing business, TRAC believes that there are already too many taxes on telecommunications services, which along with other fees and surcharges, can make up twenty percent or more of the average consumer’s bill. For more information on this increase, click hereiii.
WIRELESS WATCH
T-Mobile Again Tops Wireless Customer Service Rankings - T-Mobile continues to post impressive scores for customer service in industry surveys. The latest report, from Minnesota-based survey firm Vocal Laboratories, gives T-Mobile an “A” for caller satisfaction. Surprisingly, Cingular tied Verizon Wireless for second place in the survey, with both carriers receiving “B” ratings for caller satisfaction. AT&T Wireless (now merged with Cingular) and Sprint PCS continued their dismal showings in industry customer satisfaction surveys with the two carriers receiving “D’s” in caller satisfaction. Cingular was the most improved carrier moving up a grade in each category from the previous quarter. Study participants were asked to provide details on their customer service experiences. Difficulty connecting to a live customer service agent continued as the most frequent complaint. One study participant shared his frustration and commented, "I hate all these menus -- they need to make the first option "talk to a live person" and go from there." To read more about this study, click hereiv.
INTERESTING LINKS
FCC Main Page: http://www.fcc.gov
FCC Complaint Form - http://svartifoss2.fcc.gov/cib/fcc475.cfm
List of State Regulatory Commissions: http://www.naruc.org/displaycommon.cfm?an=15
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Endnotes
