WASHINGTON-The mobile-phone industry reacted angrily to a revised bill of rights for telecom consumers in California, claiming such a rule will hurt the state economy and runs counter to Gov. Arnold Schwarzenegger’s (R) deregulatory agenda.
The California Public Utilities Commission late yesterday released the new bill of rights plan, the product of a compromise between the initiative’s author, Commissioner Carl Wood, and Commissioner Geoffrey Brown.
“The last round of proposed CPUC wireless regulations would have delivered a $2.2 billion blow to the California economy,” said Steve Largent, president of the Cellular Telecommunications & Internet Association. “For wireless consumers, this latest re-regulation effort is the same dozen dead roses, just delivered in a different vase. These familiar proposals will bring higher prices, fewer choices, and less competition in the marketplace. How is that good for consumers? Governor Schwarzenegger has set the right standard-regulation should be applied only where competition fails. Wireless is the poster child of successful competition delivering the goods for consumers.”
The CPUC, following a brief public comment period, could vote on the proposal as soon as April 1. Wood, Brown and Commissioner Loretta Lynch-all bill of rights proponents-comprise a majority on the five-member commission.
But given the controversial nature of the bill of rights and major policy implications at stake-which have combined to delay votes several times since last year-the commission is unlikely to take action early next month.
Wood, saying Brown’s input significantly improved the bill of rights, said the revamped plan, “offers consumers protections that they need and deserve.”
“We have produced a bill of rights that tightens up the prior rules but does not weaken or diminish consumer protections,” said Brown. “The revisions to the proposed rules are based on further discussions held with consumer groups, telecommunications industry representatives, and the California attorney general’s office.”
In a telephone interview with RCR Wireless News, Brown acknowledged he and Wood will have a big sales job ahead of them. Brown said he expects a lot of arm twisting going forward.
On a related front, Alaska’s attorney general has pulled back from pursuing consumer litigation against Cellular One, which is owned by Oklahoma City-based Dobson Communications.
