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Home - FCC blocks N.Y. rounding legislation
Archived ArticlesCarriers

FCC blocks N.Y. rounding legislation

by Reily Gregson June 12, 2000
written by Reily Gregson June 12, 2000 Share
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NEW YORK-A pair of state legislators from New York City who planned to bar wireless phone companies from rounding up airtime charges to the next minute have run into a roadblock formally known as the Federal Communications Commission.

Assemblyman Scott M. Stringer, D-Manhattan, and state Sen. Guy Velella, R-Bronx, introduced bills called the “Wireless Consumer Protection Act of 2000” into their respective chambers in early April. The proposals were worded identically to avoid delays that typically occur when differing language in similar bills must be reconciled by committees in each house. The goal was to expedite passage before the New York state legislative session adjourns in mid-June.

Last week, Susan Schmidt, legislative director for Sen. Velella, said the proposal was withdrawn because “we have been notified we can’t do this bill because any state intervention was removed by the FCC several years ago.”

In Assemblyman Stringer’s office, an aide who spoke on condition of anonymity said the Assembly Corporations, Authorities and Commissions Committee is reviewing the bill with the goal of rewording it so it achieves its goal without running afoul of FCC pre-emption.

As originally introduced in April, the Stringer-Velella legislative proposal would require wireless communications companies to bill customers by the second, instead of by the minute as most currently charge.

The companion bills also include three prohibitions. Wireless carriers would be barred from charging their customers for any calls placed that are not completed, including those that get no answer or a busy signal.

Service providers also would be banned from imposing any charge on outgoing calls until the customer has entered a phone number and, when necessary, a personal identification number.

Under their legislation, wireless retailers would be prevented from bundling sales, that is, of allowing customers to purchase a cell phone only if they also sign a contract for cellular service. The FCC also has addressed bundling issues.

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