The Government Accountability Office said the Federal Communications Commission needs to do a better job of monitoring complaints about wireless service, including informing unsatisfied customers that they can complain to the federal agency when they are disgruntled.
Although an estimated 84% of people surveyed by the GAO said they were somewhat satisfied or very satisfied with their wireless service, unhappy customers don’t know that they should direct their complaints to the FCC, according to a new GAO report. Further, the FCC does not have a method in place for the agency to follow up on those complaints.
Not surprisingly, early termination fees were cited as one reason customers were unhappy with service. The GAO report came at the request of Rep. Edward Markey, (D-Mass.) Congress and the FCC under new Chairman Julius Genachowski, who have been scrutinizing the wireless industry over a number of items, including early termination fees, net neutrality and exclusive handset deals. All of the nationwide carriers have begun to pro-rate ETFs, but Verizon Wireless recently doubled its early termination fees on select high-end phones.
“We understand there may be some confusion over early termination fees” said CTIA President Steve Largent, in response to the report. “There are many choices available for consumers, including options that do not have any early termination fees such as unsubsidized handsets without a contract and a prepaid plan that has no contract. More than 20% of American wireless consumers choose these options. After listening to their customers, carriers who serve more than 94% of the postpaid market have adopted pro-rated early termination fee policies.”
The GAO report, which surveyed just over 1,000 people, said the FCC should put in place measures to monitor wireless complaints to see if any trends emerge, should inform consumers how they can complain when dissatisfied, and put in place procedures to follow up on those complaints. The FCC should also work with states to see which issues are state issues and which should be handled at the federal level.
“Today’s report offers important insights into consumers’ level of satisfaction with their wireless phone service and federal and state efforts to track and resolve consumer complaints,” said Markey. “With an estimated 270 million wireless phone subscribers nationwide, even the small percentage of consumers who reported being dissatisfied with aspects of their wireless phone service represents millions of Americans across the country.”