WASHINGTON-The Federal Communications Commission’s recent adoption of truth-in-billing practices was endorsed by the Clinton administration before the vote was taken and it appears many of the administration’s suggestions were incorporated into the final rules.
Although the final rules have yet to be released (they are expected by the end of this week), many clues to what will be included in the formal document can be found in a letter submitted to the FCC by the National Telecommunications and Information Administration three days before the vote was taken on April 12. NTIA speaks for the White House on telecommunications matters.
For example, NTIA says “for each charge, the identity of the service provider, as opposed to their billing agent or bill aggregator soliciting payment, should be clearly noted on customers’ bills in a manner easily recognizable to the subscriber.”
Stating the name of the service provider was one of the few truth-in-billing rules wireless carriers must adhere to.
Wireless carriers are excluded from most of the rules including clearly listing if a customer is being billed for a service offered by a different service provider than the one issuing the bill. The FCC also released a further notice of proposed rule making specifically asking whether wireless should be excluded.
The truth-in-billing effort began when the long-distance industry started using line items to indicate universal service contributions. The line items were not liked at the FCC or on Capitol Hill because they exposed that it would be consumers-not telephone giants-who would be paying for universal service.
Telephone companies, especially long-distance companies, said it was unfair to make it look like they were raising their rates for no reason. Because of the many add-ons and line items, Kennard told a gathering of the Consumer Federation of America earlier this year that telephone bills resembled hieroglyphics.
That characterization is disputed by both the wireless and long-distance industries. “You are addressing a problem that is not really a problem in a competitive market … If people don’t like our billing, they go someplace else,” said James W. Spurlock, government affairs director for AT&T Corp.
“In a competitive market like wireless, the bill actually becomes a tool,” said Thomas Wheeler, president of the Cellular Telecommunications Industry Association.
The rules were adopted on April 15 by a 4-1 vote, with FCC Commissioner Harold Furchtgott-Roth dissenting.
One area where NTIA and the FCC have a slight difference of opinion seems to be in the wording to be contained on bills. NTIA urged the FCC to “create specific terms and definitions to identify and explain each applicable line item on customer’ bills.” But, instead of being specific, the FCC said the rules were merely guidelines.
The long-distance industry also is awaiting the final release of the item to see how non-payment is handled. The FCC said local exchange carriers could differentiate on their bills which charges, such as local, must be paid in order for service to be continued and which charges, such as long distance and enhanced services, did not have to be paid for customers to continue receiving access to local calling. The long-distance industry wants the wording of these notes left for the industry to decide rather than the LEC.
