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May 12, 2010

The FCC’s Consumer and Governmental Affair Bureau just unveiled a new initiative designed to counter unexpected overcharges on monthly wireless bills.

Increasingly, surveys and various market research reveal that wireless consumers are more and more surprised by various unexpected overcharges on their monthly wireless bill.

They are asking the FCC that some changes be made to prevent mobile service operators from overcharging their customers.

The Federal Communications Commission said it will seek input on ways to alert consumers about “potential high charges before they add up,” citing a solution required in Europe by the European Union.

A number of wireless carriers currently provide text messaging alerts to consumers that are getting close to their allotment of calling minutes, though most are geared toward prepaid services.

“Overall, we are hearing from wireless consumers about unpleasant surprises on their bills,” said Joel Gurin, chief of the bureau.

“We’ve gotten hundreds of complaints about various bill overcharges. But this is an avoidable issue. Avoiding overcharges is good for consumers and ultimately good business for wireless carriers as well,” added Gurin.

Comments on the notice are due no more than 45 days after publication in the Federal Register, with reply comments due sixty days after their publication.

Yesterday, Medley Global Advisors L.L.C., a wireless industry research firm studying the FCC’s plans to reclassify broadband services in order to better regulate them said late yesterday that high-speed Internet service providers are likely to underscore some concerns that any reclassification could impact long-term investments and may not be in the best interests of consumers.

The research company added that litigation likely will follow the FCC’s announcement that it is seeking comment on a plan to regulate broadband services by moving them to the Title II group.

The announcement wasn't well perceived by some observers.

“FCC Chairman Julius Genachowski now has the political cover he needs to enact by year's end or early next year a middle-of-the-road approach using a deregulatory Title II wireless carrier framework for broadband oversight," the research firm said.

"Even if approved by the Democratic-led FCC within that time frame, the controversial initiative opposed by broadband service operators is likely headed for a crash that ties up broadband regulation in years of litigation before policy is clarified,” Medley said.

“Many people have asked about the agency’s next step in view of the recent decision in the Comcast case,” Genachowski said in introducing the concept.

“Our goal is to restore the broadly supported status quo consensus that existed prior to the court decision on the agency’s role with respect to broadband Internet service,” added Genachowski.

The Federal Communications Commission introduced what it is calling a 3rd option for regulating broadband services and is seeking comment on the subject.

The FCC's new plan is in response to a ruling in April that the agency lacks the authority to demand that Internet service providers like Comcast have to offer equal access to anyone who wants to connect to their network.

The ruling is a slap in the face for net-neutrality proponents and could impact the National Broadband Plan recently submitted to Congress.

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Source: The FCC.