site Search:


 
   
story category
GAO: FCC Fails To Protect Wireless Consumers
As high prices and billing complaints top user frustrations
by Karl Bode Thursday 10-Dec-2009 tags: business · wireless
According to a new study (pdf) by The General Accounting Office, the FCC doesn't do enough to follow up on consumer complaints about wireless service, consistently fails to protect consumers from anti-competitive behavior by wireless carriers, and needs to do a better job enforcing consumer protection rules. While the report does note that more than 80% of consumers are "somewhat or very satisfied" with their wireless carriers, those who may not be are often confused about the FCC's role in complaint resolution, or even how to complain to the FCC.

Click for full size
That's of course not helped by the FCC's antiquated website, which has been begging for a complete redesign for years. With consumers unable or not understanding how to complain, the GAO claims the FCC may not be keyed in to key consumer issues in the wireless sector.

As for the complaints the FCC does get, the majority are about high prices or billing issues. Early termination fees continue to be a sticky subject for consumers, the GAO nothing that 42% of customers who want to switch carriers don't because of high ETFs. On one hand customers signed the contract and agreed to the ETF. On the other hand, carriers sometimes use long-term contracts and ETFs as a substitute for competing and providing better service when warranted.

The industry, as you might expect, believes that there's nothing wrong with the ETF and subsidized handset model. "We understand there may be some confusion over early termination fees," says the wireless industry's chief lobbying and trade group the CTIA in a statement.

"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," says the CTIA. "After listening to their customers, carriers who serve more than 94 percent of the postpaid market have adopted pro-rated early termination fee policies."

Technically, the wireless industry wasn't listening to consumers so much as they were trying to pre-empt new federal laws, avoid class action lawsuit payouts, and responding to Attorney General complaints. The study notes that pro-rating ETFs "may be inadequate because the fees are not reduced to $0 over of the course of the contract period."

view: topics flat text 
Post a:
dynodb
Premium,VIP
join:2004-04-21
Minneapolis, MN

Typical

Problem: Government agency incompetent.
Government's solution: Give government agency more power.

karlmarx

join:2006-09-18
iraq

Atypical

Problem : Megacorps paying of government regulators. Customers getting it without lube in every orifice possible.

Solution : Quite simple. Prevent ANY corporation from donating,supporting,advocating ANY political organization. No PAC's, No donations, no RIGHTS of any kind. It's time to roll back the power of the corporation, I believe, that even though a corporatio has LEGAL rights of a person, it has no MORAL or ETHICAL beliefs that a person has. Thus, it should not be allowed in ANY way to affect any decision the government should make about it. The government is SUPPOSED to be 'for the people', instead we've become a government 'for the corporation'
--
Remember 1 in 4 people are retarded. 25% of Americans are Republican. Coincidence? I don't think so.
dynodb
Premium,VIP
join:2004-04-21
Minneapolis, MN

Re: Atypical

said by karlmarx:

The government is SUPPOSED to be 'for the people', instead we've become a government 'for the corporation'
As long as they aren't shareholders, employees, or customers of that corporation, right? They don't count as "people".

karlmarx

join:2006-09-18
iraq

Re: Atypical

You are trying to be sarcastic, but you are correct. Shareholders, Employees and customers are people. Lets see, they all have ethics, they all have morals, they can all go to jail, so yes, they are people. Pray tell me, how do you send a 'corporation' to jail? I mean, isn't a corporation SUPPOSED to be bound by the same laws we are? Oh, wait,you CAN'T send a corporation to jail. So, why do they get to write laws that can take away OUR freedoms, yet they get off with a fine? Please, tell me, if the law says I can go to jail, tell me what the corporate equivalent of that is?
--
Remember 1 in 4 people are retarded. 25% of Americans are Republican. Coincidence? I don't think so.
dynodb
Premium,VIP
join:2004-04-21
Minneapolis, MN

Re: Atypical

Do you seriously not know what a corporation is?

You say the word "corporation" as if it were referring to a deity of some sort.

k7baw
De gustibus non est disputandum
Premium
join:2001-11-25
Phoenix, AZ
Right On!!

CylonRed
Premium,MVM
join:2000-07-06
Bloom County
Problem is how to police the corp - right now it is easy to pass money thru 5 different entities to give more money to politicians without it being traced back to the start. It is the EXACT same way that those rallies against govt health care were supported by the right wing. After many denials by the right wing evidence finally came to light about who was providing money and supporting the rallies.

Companies tend to be a bit more careful - not that it can't be found out but the ones that do circumvent the law have lots of ties and networks in place.
--
Brian

"It drops into your stomach like a Abrams's tank.... driven by Rosanne Barr..." A. Bourdain
patcat88

join:2002-04-05
Jamaica, NY
kudos:1

websites fine

Some of the website's dialogs are confusing or contain duplicate options/info, but the website is fine overall. Its IE 5 compatible and blazing fast. If they candy it up with 100s of KBs of JS libraries, AJAX, client side ASP, iframes, translucency and opaqueness (very fitting for a government website), flash, and 100s of KBs of CSS it will be much worse. The people without broadband and i7s would never be able to complain to the FCC then. Maybe thats a good thing.
ShadezeRO

join:2006-04-24
Fort Lauderdale, FL

Rename the Article to..

FCC: Fails.
Daddio1949

join:2000-12-13
Rockville, MD

GAO has been renamed

GAO no longer stands for the General Accounting Office and has changed its name to the Government Accountability Office.

Stbrandon

@charter.com

ETFs

So what if I buy the handset outright? Do I still have to pay an ETF because I don't like the service? Why should I sign a contract if the handset isn't subsidized?

Seems crooked to keep me on your network when I am unhappy with the quality and or service.

ThrowDemsOut
If you can't convince 'em, confuse 'em
Premium
join:2002-03-03
Mullica Hill, NJ
kudos:4

Re: ETFs

said by Stbrandon :

So what if I buy the handset outright? Do I still have to pay an ETF because I don't like the service? Why should I sign a contract if the handset isn't subsidized?
If you buy an unsubsidized handset, you then don't have to sign a contract and you get the month to month rate which is the same price as the 2 yr contract price. And then you don't have an ETF. But if you buy an unsubsidized smartphone, it will cost you maybe $500-600 instead of $150 to $200.

The cost situation over 2 years is close to a wash. But then you can leave if you are unhappy with the service. Of course, not all smartphones will be usable on all different networks. Some smartphones may work on none or maybe only 1 other network.
--
My BLOG .. .. Internet News .. .. My Web Page

iria64

join:2003-04-14

Is there an unsubsidized rate...

for those that buy or use their own unsubsidized phone

"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," says the CTIA. "After listening to their customers, carriers who serve more than 94 percent of the postpaid market have adopted pro-rated early termination fee policies."

If I am going to pay the same rate whether I use my own phone or a subsidized phone why not get a new phone every couple of years.

erniewitt

@cia.com

The FCC eyes are elsewhere

Of course the FCC is not paying attention to consumer needs. They're too busy setting up cameras to look at women. After nipplegate, we need the FCC to look at women so when an errant boob is shown on TV, they can set up a delay.

koma3504
Advocate
Premium
join:2004-06-22
North Richland Hills, TX

FCC clowns

Thats with any thing that you report they do not follow up on nothing.

I have come to the conclusin all they do is sit behind there desk and do nothing but check there personal email accounts who knows they probally get a paycheck to surf the interenet as if they was at home.

They all need to be let go and Peple willing to do the work put in those Jobs.
--
† Koma †
If YOu Don't Think It's Possable!! It's Acually A Reality!!The best way to predict the future is to invent it. Alan Kay!!
Ya Don't Know The signal Till Ya Ride It!!
Voice Break's There's Trouble!!!!
wadewood
Premium
join:2003-05-04
Houston, TX

1 edit

FCC complaint worked for me

I cancelled my T-Mobile contract when they announced charge for paper bill (they later rescinded that). T-Mobile insisted I owed a $200 ETF. I filed a BBB compliant, which T-Mobile responded to but did not change ETF. I filed compliant with Texas Attorney General, they basically sent me back a form letter implying they were to busy to look into this (some other state's AG, including NY had threatened legal action against T-Mobile for this change). I launched Emails to T-Mobile executives and got a phone call back from executive office stating they would not waive ETF.

I also filed complaint with FCC. The day I was getting ready for final step, file a claim in small claims court, I followed up and called the FCC. They had discussed with T-Mobile and now T-Mobile had agreed to waive the ETF. So in my case, the FCC did it's job.

Well, actually I had mentioned in my FCC complaint that they should slap T-Mobile with a large fine for trying to pull such a stunt - that did not happen :.)
elray

join:2000-12-16
Santa Monica, CA
Reviews:
·SONIC.NET
·RoadRunner Cable

Why? Make it stop!

Why does a consumer "need" protection from "anti-competitive behavior", when the market offers a dozen different options for anyone who can be bothered to shop around?

The last thing we need is to empower yet another bozo agency to spend hundreds of millions, if not billions, "protecting" us.

Competition works. Government fails, but never fails to tax.

Saturday, 11-Feb 14:30:33 Terms of Use & Privacy | feedback | contact | Hosting by nac.net - DSL,Hosting & Co-lo
over 12.5 years online! © 1999-2012 dslreports.com.