WASHINGTON-New truth-in-billing rules under consideration at the Federal Communications
Commission could be devastating to wireless carriers, which see the mandate as another instance of wireline regulation
being imposed on the wireless sector in the name of fairness.
The FCC is expected to address the matter in April,
FCC Chairman William Kennard told reporters March 19. The truth-in-billing effort began when the long-distance
industry started using line items to indicate universal-service contributions. The line items exposed that consumers-not
telephone giants-would be paying for universal service.
Telephone companies, especially long-distance carriers,
implemented the line items because they said it was unfair to make it look like they were raising rates for no reason.
However, Kennard, speaking at a gathering of the Consumer Federation of America, said the many line items and add-
ons make phone bills look like hieroglyphics.
Kennard said he even had a hard time explaining the bills to his wife.
“If the [FCC chairman] cannot understand what is on the phone bill, then we have a problem,” he
said.
The FCC’s proposed rules were in response to initiatives on Capitol Hill last year.
The problem for wireless
is that instead of proposing guidelines-which the Cellular Telecommunications Industry Association and the Personal
Communications Industry Association say they support-the FCC proposed specific language, phrasing and bill layout.
On the bill layout, for example, specific pages would be used for specific charges and a summary page would be
separate.
Another problem for the wireless industry, if the proposed rules are adopted, is that prepaid wireless
service could not be offered because precise billing does not occur.
One company offering prepaid service,
Omnipoint Communications Inc., urged in its comments that a specific exemption for prepaid be included in the rules.
“If [commercial mobile radio service] carriers are forced to provide prepaid service customers with written
telephone bills, the flexibility and low-cost nature of this very desirable service is diminished,” Omnipoint
said.
It is not clear why wireless service has been included in this rule, and the FCC would not comment on the
pending proceeding, said Meribeth McCarrick, spokeswoman for the FCC’s Wireless Telecommunications
Bureau.
Legislation introduced last Congress by Rep. Donald Payne (D-N.J.) proposed requiring all CMRS
providers to itemize customer bills. This itemization is to include: the date, origination time, origination and
destination numbers, length of call, charge for each call, separate listings for local and long-distance calls, additional
charges for calls made outside a local service area and any government-imposed fees and taxes. The last item also
would include which agency imposed the charges.
Kerry McKenney, Payne’s legislative director and press
secretary, said the congressman introduced H.R. 4493 after receiving complaints about billing practices.
Various
news sources contributed to this report.
