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Home - Wireless industry to extend billing grace periods to Gulf Coast subscribers
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Wireless industry to extend billing grace periods to Gulf Coast subscribers

by RCR Wireless News September 8, 2005
written by RCR Wireless News September 8, 2005 Share
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WASHINGTON-The wireless industry appears to have averted a potential public-relations disaster; quickly responding to government leaders who were concerned that Hurricane Katrina evacuees’ wireless services had been cut off for lack of payment.

Members of Congress, including Rep. Gene Green (D-Texas), whose district includes Houston where many evacuees are staying in the Reliant complex, began hearing reports that customers were having their mobile phones disconnected. Green initiated a letter signed by eight of his colleagues, including Majority Leader Tom Delay (R-Texas), requesting that service to evacuees remain connected.

“Wireless communications are very important for the effective response to Hurricane Katrina. Unfortunately, there have been reports of wireless customers from the disaster areas being disconnected during this desperate time because they were unable to pay the bills,” reads the letter sent to CTIA and the Federal Communications Commission. “At the request of emergency personnel on the ground, we are urging CTIA to encourage all member companies to take all necessary steps to extend grace periods for disaster-area customers’ wireless accounts.”

CTIA said there was no reason to worry.

“I personally spoke to top executives of each of the major wireless carriers, and they have pledged that no subscriber’s service in the region will be disconnected during this catastrophe for not paying their bills,” said CTIA President Steve Largent. “Carriers are implementing customer-friendly billing practices for affected customers and will not disconnect services to customers from the impacted areas for nonpayment of bills.”

Just to make sure, the FCC ordered all carriers to “submit a report no later than Thursday verifying their compliance with the standard industry practice of maintaining service to people displaced by Hurricane Katrina despite failure to pay bills. Reports should describe the grace period or other relief licensees are providing for this issue.” The public notice went out Wednesday afternoon.

Verizon Wireless already has responded to the FCC, sending a letter within minutes of the release of the commission’s public notice.

“Customers are not being required to change their price plans, extend their contracts or enter into new contracts,” said Verizon Wireless President Dennis Strigl. “We have also taken many actions to assist residents of the impacted areas in communicating with their families and friends.”

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