Federal preemption divides NARUC

A deep chasm emerged at a meeting of state regulators over whether federal preemption should be expanded in a new national wireless policy framework that would encompass consumer safeguards and a system of best practices for mobile-phone carriers.
The board of the National Association of Regulatory Utility Commissioners voted 16-9 to send back to the group’s telecom and consumer affairs committees a highly controversial national framework resolution. The resolution was approved by a 13-8 margin Wednesday by the telecom committee. The matter sparked what was described as intense debate within NARUC at its winter meeting in Washington, D.C.
NARUC could formally address the issue again in July.
A national framework that would dilute — but not completely eliminate — state oversight of mobile-phone carriers is the top legislative priority of the cellular industry. A 1993 law pre-empts states from regulating mobile-phone rates and market entry, but leaves to states oversight of terms and conditions of wireless service. The reserve clause has been fertile ground for state intervention and litigation, emboldening some states to pursue regulation of the wireless industry and plaintiffs’ lawyers to pursue class action lawsuits against mobile-phone operators.
RCR Wireless News yesterday reported that Chairman Edward Markey (D-Mass.) released a draft of a bill that would create new consumer safeguards for wireless subscribers’ and modify the existing jurisdictional regime without eviscerating state powers in the wireless space. The legislative discussion draft would direct the Federal Communications Commission to initiate rulemakings on carrier disclosure of contract terms and charges, early termination fees, wireless service coverage maps, billing and service-quality monitoring. In addition, the measure would prohibit state or local officials from blocking the deployment of municipal broadband services.
Last year, Sens. Amy Klobuchar (D-Minn.) and Jay Rockefeller (D-W.Va) introduced wireless consumer protection legislation. The measure preempts state law, but does not override state statutes that provide additional protections to cellphone subscribers.
Cellular industry association CTIA, which has lobbied the past three years for a national regulatory framework, favors a bill sponsored by Sen. Mark Pryor (D-Ark.) that would accomplish the objective while reducing the role of states.