Congress—and California—need to take a couple of steps back on industry plans for a 411 directory of wireless telephone numbers. Regardless of where one stands on whether it is a good idea or not to have such a directory, regulation like that signed by Gov. Schwarzenegger in California is burdensome and will just add to the cost of carriers doing business in that state or will add to the cost of government.
The California measure requires carriers to get separate written approval to be included in any directory. Who keeps that paperwork? The carrier? The state? In signing the bill into law, Schwarzenegger commented that it was overly burdensome and people should be able to give their OK over the phone or via a digital file. Just the amount of paperwork alone on this effort should employ a great number of people.
Cingular Wireless L.L.C.—still upset over a $12 million fine from the California PUC for breaking state law governing telecom carriers—already has said doing business in California is more difficult than any other state. Since difficult often means expensive, you can bet the 411 provision will add to that cost, and later the California PUC will be complaining that cell-phone bills are too high.
Meanwhile, efforts are under way at the federal level to make sure privacy is protected in any wireless directory, but I wonder if adequate funding will be available to enforce such efforts. It may be naïve to think wireless carriers would not sell customer information without customers’ consent. But it’s not good business for a carrier to go against its customers’ wishes. The customer has an easy alternative: churn and get a new phone number. CTIA President Steve Largent said wireless carriers are more concerned with their customer’s privacy than Congress. I hope that’s true. But even if it’s not, is new federal legislation the answer? The Do-Not-Call list already includes cellular phone numbers if you register them. Plus, telemarketers cannot legally use auto-dialers to call cell phones.
These regulations, already in place, staffed and proven to work, are designed to prevent spammers and other unwanteds from targeting your cell phone.
Wireless’ success has come from operating in a competitive environment, not a largely regulated one. Carriers are deciding on their own how to approach 411 directories. Verizon Wireless already said it would not participate in one. It is that choice that will protect wireless customers, not the heavy hand of regulation.
