WASHINGTON-In any policy dispute, the perception of what is really happening often depends on who is talking.
Such is the case with the decade-long roaming quarrel between nationwide carriers and several small, regional and rural carriers.
The Federal Communications Commission has tried to initiate action on roaming rules twice, only to leave them unfinished both times. Earlier this year, it started its third proceeding. The reactions show the dichotomy between big and little.
“Historically, the FCC has seen no need to regulate roaming. There is nothing new in this environment other than a few companies who seem to have a desire to enter into more-favorable roaming agreements,” said Brian Fontes, vice president of federal affairs for Cingular Wireless L.L.C.
“In order to maintain semblance of creditability, it is important for the FCC to proceed and resolve these issues and not just tee them up,” said Carl Northrop, outside counsel for regional player MetroPCS Communications Inc. “One of our problems is for the commission to initiate these proceedings and then not resolve them. This is the third reiteration. This has occurred because of inaction.”
Verizon Wireless said roaming pacts can be resolved in the best interest of all carriers’ customers without government intervention.
“It is in the industry’s best interest to ensure its customers can communicate wherever they go,” said John Scott, deputy general counsel for Verizon Wireless. “The result in that hands-off approach has been a precipitous decline in roaming rates over the last 10 years.”
The most recent examination of the roaming situation came in the wake of Sprint Corp.’s acquisition of Nextel Communications Inc. When that deal was approved last year, creating Sprint Nextel Corp., FCC Democrats were promised that roaming issues, which cropped up in previous acquisitions, would be addressed separately.
Large and small carriers have been meeting with key FCC staff on the issue, but at least one attendee said the issue is not likely to be resolved anytime soon.
Small operators have asked the FCC to probe roaming agreements of various combinations of carriers in what is known as a Section 403 investigation, because they believe such a study would show discrimination is occurring.
A Section 403 (of the Communications Act) investigation allows the FCC to compel information that might otherwise not be forthcoming.
“The resulting record contains reports of discriminatory activity and excessive charges, but does not provide a comprehensive overview of the nature and extent of the roaming relationships that large national carriers have with one another, with smaller local, regional or rural carriers and with non-facilities based carriers, such as mobile virtual network operators,” said a group of carriers in an April petition.
“Carriers that are charging different rates to different roaming partners naturally are reluctant to disclose this information for fear of fostering allegations of discrimination. Further, local, rural and regional carriers may be concerned about possible retaliation in renewing existing agreements or receiving new roaming agreements if they voluntarily disclose their roaming agreements with the large nationwide carriers absent FCC intervention.”
Large carriers believe the call for a Section 403 is not appropriate.
“A Section 403 investigation is a fishing expedition. Normally, people have to have evidence of a violation of a rule. Here they are seeking information to see if there is a violation,” said Fontes.
MetroPCS’ Northrop said nationwide carriers are balking at a potential probe because they are aware that discrimination is occurring.
“Frankly we thought the responses from the nationwide carriers was blunt enough that our approach was to tell the eighth floor that discrimination is taking place, but if they still think they need the information, they should initiate the inquiry,” Northrop told RCR Wireless News.
“What is important is the outcome: that we be entitled to automatic roaming at a reasonable rate on a non-discriminatory basis,” he continued.
Nationwide carriers say they use different agreements for different roaming partners because each partner is unique.
“Every carrier has their standards of performance that their customers expect. What you hope to achieve with roaming agreements is to have your functions and features travel with your customers,” said Fontes. “You are going to look for roaming partners that best satisfy your customer’s expectations.”
