Federal friend

Sometimes, you have to choose the lesser of two evils.

While it initially might seem unpleasant to ask the federal government to regulate wireless service quality, the increasing bad taste left in the wireless industry’s mouth by the California Public Utilities Commission could make federal regulation a more palatable alternative.

The CPUC is planning to vote on three-count ’em, three-different plans to give consumers more leverage with wireless carriers. The premise behind each of these bill-of-rights plans is that consumers should be guaranteed certain things when signing up with wireless carriers. Hey, I thought this was America, where we voted with our wallets. If you don’t like the service, you leave. Buyer beware and all those other mantras aside, the perception remains that wireless customers are being mistreated by wireless carriers. Nearly two dozen states have had or have pending some kind of lawsuit with how wireless carriers conduct business in their states.

If that is the case, industry’s argument that wireless is indeed one of the most competitive industries around is no longer holding water. (Forget the fact that it’s true-evidently life doesn’t work that way. Who knew?)

While it’s unclear whether any of the plans before the CPUC will pass, it’s probably just a matter of time before some kind of proposal is approved in California-and elsewhere for that matter.

The Cellular Telecommunications & Internet Association already adopted a consumer code of conduct. But that is not enough. If California adopts some sort of plan to which wireless carriers operating in the state must adhere, other states surely will follow. It would be daunting for industry and each carrier to weigh in on separate proposals on how wireless customers should be treated in each state. The lobbying dollars alone would be gargantuan. And if each state, or even a majority of states, adopts different rules on how wireless should be regulated, each carrier would have to figure out how to comply with a patchwork of rules. For example, early termination fees are prorated in Georgia, but not in Alabama.

Industry must figure out a way to address increasing state rules. Again, a federal law is worth studying. The key, of course, is that federal regulation would make moot any need for state regulation. CTIA worked its magic in that arena already with tower-siting laws. Perhaps it’s time to try the same with state consumer guides.

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