WASHINGTON-The telecommunications industry has come out against the Federal Communications Commission’s proposal to impose truth-in-billing rules on commercial mobile radio service carriers.
Additionally, both long-distance carriers and local exchange carriers oppose certain aspects of the truth-in-billing requirements.
The CMRS industry is so competitive that misleading bills are not practical because customers can leave the confusing carrier and move to a carrier that is less confusing, the wireless industry told the FCC in comments filed last week.
For example, Bell Atlantic Mobile Inc. said in its comments that the recently completed CMRS annual report did not contain any evidence of any consumer-related complaints regarding wireless billing. Additionally, wireless industry growth and competition “occurred without even more intrusive rules that would dictate to wireless carriers the words they can use in communicating to their customers,” BAM said.
For once, both AT&T Corp. and SBC Communications Inc.-giants of the long-distance and LEC industries respectively-are urging the FCC to get rid of rules that require customers be notified when non-payment of charges on a telephone bill will result in their local service being turned off.
AT&T estimates it will cost more than $4 million to redesign its various billing systems to implement this change. The long-distance giant suggests that a Web site be established with this information and periodic notification be given on bills about the availability of the Web site.
Some states do not allow phone service to be turned off for non-payment of long-distance charges. AT&T worries it would have to include information for all states on its bills. This information could perhaps be duplicated many times in cases where department rather than geographical billing is used, AT&T said.
The FCC voted on April 15 to adopt its truth-in-billing rules. The rules were adopted by a 4-1 vote with FCC Commissioner Harold Furchtgott-Roth dissenting.
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 either the FCC or on Capitol Hill because it exposed that it would be consumers-not telephone giants-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, FCC Chairman William 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.
