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WIRELESS ANTI-FRAUD BILL ON ITS WAY TO BECOMING LAW

WASHINGTON-A wireless anti-fraud bill is headed to the White House for President Clinton’s signature, following House passage last week of legislation that will deny drug dealers, terrorists and other criminals a favorite tool and effectively kill the so-called emulation business in the United States.

The House voted 414-to-1 for the Wireless Telephone Protection Act, which will be incorporated into a companion Senate bill that passed last November. Because the Senate has agreed to changes in the House bill, lawmakers will bypass a House-Senate conference.

The lone “no” vote was cast by Rep. Ron Paul (R-Texas), who believes the bill shifts too much burden on accused individuals and thus violates the constitutional doctrine of presumed innocence.

On a related front, the House Commerce Committee approved on voice vote a bill to tighten wireless privacy laws.

“PCIA is extremely pleased that Chairman Tauzin’s legislation to crack down on electronic Peeping Toms has been approved by the full Commerce Committee,” said Jay Kitchen, president of the Personal Communications Industry Association. “We are hopeful that the entire House of Representatives will pass this important bill without delay.”

The privacy bill is sponsored by House telecommunications subcommittee head Billy Tauzin (R-La.).

The two actions in Congress last week represent major victories for the wireless telecom industry, which has been in a slump on Capitol Hill for the past year.

“The vote today (on wireless anti-cloning measures) is a win for every American who owns a cellular phone and a blow to every criminal that tries to invade their privacy,” said Rep. Sam Johnson (R-Texas), a House sponsor of the measure.

Rep. Bill McCollum (R-Texas), chairman of House Judiciary subcommittee on crime, was a major force behind the House bill as were Reps. John Conyers (D-Mich.) and Charles Schumer (D-N.Y.).

“It is a big problem. The criminals out there are using these cloned phones today not just to run up your bills, they’re cloning phones to (conduct) other criminal enterprises,” said McCollum.

The bill closes a major legal loophole by doing away with a requirement for law enforcement to prove “intent to defraud” against those who clone mobile phones by using special software and equipment to snatch electronic serial numbers from mobile phones at airports and busy roadways, for example.

Sen. Jon Kyle (R-Ariz.), the Senate sponsor of the anti-cloning measure, declared the bill “moves us a step closer to giving law enforcement the tools it needs to crack down on this exploitation of technology.”

Under the legislation, it will be illegal for anyone other than wireless telecom companies and law enforcement officials to use cloning equipment.

But those in the business of copying phone numbers so consumers can own multiple mobile phones with the same telephone number for less than what carriers charge for that feature argue the bill is a thinly disguised attempt by carriers to monopolize the market.

The wireless industry says the emulation business stifles carrier fraud prevention and deprives carriers of access fees.

“Wireless fraud is not a victimless crime,” said Thomas Wheeler, president of the Cellular Telecommunications Industry Association. “It strikes at the heart of a technology that is improving the safety, security and business productivity of the entire nation.”

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