WASHINGTON-Perhaps in a long-awaited move to mirror wireless billing practices around the world, the Federal Communications Commission released a notice of inquiry into the possibility of calling party pays in a commercial mobile radio services environment.
While calling party pays exists in a few U.S. markets, it is not a widespread phenomenon, although most wireless subscribers would like to see such a policy instated to relieve hefty monthly minutes-of-use charges. In Western Europe, Scandinavia and South America, CPP has been the norm since systems first cut over. However, the thinking here is that callers have become so used to not paying for calls made to wireless or wireline devices that carriers believe volume would drop if charges for such conversations appeared on wireline bills.
“We are interested in analyzing whether this difference between wireline and wireless telephone service hinders the rate at which CMRS services are accepted by consumers as a close substitute for wireline telephone service,” the commission wrote.
Commenters have until Dec. 1 to file opinions on the following topics:
Current availability of CPP-While the FCC has some idea which carriers are offering the option and where, it wants more detailed information on how many mobile carriers make CPP available to their subscribers, where it is offered, details of the arrangements between CMRS pro-viders and local exchange carriers, state regulatory requirements and consumer reactions. The commission also wants to know if there are any regulatory requirements governing CPP between wireless phones.
Demand stimulating events-According to FCC research, 80 percent of CMRS calls originate from the CMRS network, with the remaining 20 percent coming from the wireline side. The commission wants to know if this pattern mirrors that of other countries with embedded CPP or if CPP stimulates a more balanced traffic flow. It also seeks pricing information in CPP countries along with evidence that peak usage times have or have not been altered by increased wireless usage due to CPP.
Pricing issues-Is the pricing structure of CPP carriers and CMRS and wireline providers significantly different, and could this be hindering growth of wireless calling?
“Contrary to some parties’ expectations, the differences in pricing between local telephone service and the CPP service option could deter some calls from wireline to mobile subscribers and may hinder efforts to minimize distinctions [between the two networks],” the FCC wrote. Information is sought on the differences between CPP calls and measured-service options, and if different rates make a real difference when customers begin to choose between residential wireline and wireless service.
Consumer protection issues-Do callers always know that they will be participating in a CPP call, and do they have the option of refusing? Some states already have such a mechanism in place, and the commission wants data as to how these options work. It also wants to know what measures CMRS carriers can put in place to ensure payment from calling parties when voice notifications just don’t work. Should there be a national approach?
Technical issues-To offer CPP, carriers must implement infrastructural, contractual and billing methods, which may be part of the reason why it is not widely available in this country. Without a method of identifying who is accepting the charges and how the caller will be billed, it is questionable that CMRS carriers would be able to collect, especially if those calls are made from pay phones, hotels, other wireless devices and hospitals and with credit cards and WATS numbers. The FCC wants to know how some of these barriers can be overcome.
Legal issues-States have the right to regulate CPP charges as a billing practice and LECs must unbundle their networks to allow other competitive carriers to provide the option. What the commission wants to know is if it has the authority to “establish requirements regarding CPP arrangements between CMRS carriers and LECs.”
Comments are due Dec. 1.
