You Want to Know What’s Fair? Consumer Protections for Wireless Customers
A CTIA spokesman said, in a recent discussion, the Federal Communications Commission’s messaging around so-called “bill shock,” or unexpectedly high wireless bills, was not “fair” to the wireless industry. This is simply not the case. Government oversight to protect consumers and promote competition and innovation, and public recognition of a growing consumer problem, is not unfair. What is unfair is:
• A wireless carrier slapping consumers with hidden, excessive fees for usage, amounting at times to several thousand dollars.
• A wireless carrier using high early termination penalties to trap consumers into lengthy and unfavorable contracts.
• A wireless carrier obstructing consumer choice through exclusive handset deals.
• A wireless carrier reaping huge profits, while the rest of the country struggles to climb out of a recession and while many Americans are still without jobs.
The FCC’s new report on wireless competition revealed growing concentration, shrinking investment, increasing prices and other market failures, as research has indicated. And an FCC survey revealed that a substantial percentage of consumers – nearly 30 million Americans – have been surprised by unexpectedly higher bills. So how, exactly, is the FCC’s use of “bill shock” to refer to what are in fact shockingly high bills unfair?
In fact, the FCC appears to be going out of its way to be “fair” to the interests of wireless industry lobbyists. The National Broadband Plan charted a path toward massive new spectrum resources for mobile broadband services, as CTIA requested. The FCC gave special consideration to mobile broadband services in the Open Internet Notice of Proposed Rule Making, over Free Press’ objections, and the agency appears poised to repeat itself in the upcoming Notice of Inquiry for broadband reclassification.
When industry misbehaves, government criticism and oversight is appropriate, regardless of whether the usual lobbyists are going to grouse about it.