Senators Introduce Bill to Regulate Cell Phone Contracts
Sep 11, 2007
Senators Amy Klobucher (D-MN) and Jay Rockefeller (D-WV) announced a new bill called the Cell Phone Consumer Empowerment Act of 2007 last week that, if enacted into law, would impose a number of regulations on how wireless providers structure service contracts and share information with customers and the FCC.
Among other things, the legislation would require cell phone companies to do the following:
- Pro-rate early termination fees
- Provide the Federal Communications Commission (FCC) with details on coverage areas and dropped call stats, which would be made available to the public
- Itemize bills such that taxes, fees and roaming charges are clearly visible to customers
- Allow customers to terminate their contracts for any reason within 30 days
The bill also touches upon the topic of unlocking cell phones by mandating that the FCC submit a report to Congress "that studies the practice of handset locking in the United States and the effect of handset locking on consumer behavior and competition."
In this news release about the bill, Senator Klobuchar said, "The rules governing our wireless industry are a relic of the 1980's, when cell phones were a luxury item that fit in a briefcase instead of a pocket." A claim that the wireless industry's trade association, CTIA, strongly refutes.
The day before the Senators made their official announcement, CTIA issued its own release with the following statement by CEO Steve Largent, "It is disappointing and unfortunate that Senators Klobuchar and Rockefeller intend to introduce legislation based on incomplete and misleading data...The Klobuchar-Rockefeller bill is unnecessary and, if enacted, threatens to increase the cost of wireless service and reduce the number of choices available to American consumers."
Tags:
Cell Phone, FCC, Senate, Wireless
