Raze the Telecom Maze
Telecommunications companies are quick to boast about powerful technologies that soon will make it possible for a tired commuter to order a pizza with a few clicks or for an engineer in the field to download huge volumes of data from the home office. Yet in the here and now, consumers struggle with dropped calls, unintelligible long-distance bills and marketing that baffles. Complaining is usually seen as futile. Fortunately, local, long-distance and cellular companies are about to get a jolt from consumer-rights proposals at the state and federal levels.
The state Public Utilities Commission soon will unveil the latest version of a much-debated telecom bill of rights that would require companies to provide marketing and advertising in plain language and a legible typeface, clear disclosure of rates and rules, consumer-oriented privacy policies and a clear path to resolve questions and complaints.
In Washington, Sen. Charles E. Schumer (D-N.Y.) will introduce a bill next month that would, among other things, at last allow consumers and businesses to take their telephone numbers with them when they switch carriers.
The telecom industry is awash in change. Consumers need regulation that helps them make informed decisions on the dizzying array of rate and option packages for daytime, nighttime, weekend, local, long-distance, text and video services and whatever is around the next technological corner.
The industry argues that additional regulation isn’t necessary. But cell phone service alone prompted more complaints to the Better Business Bureau during 2002 than any other industry category. And cell phone companies have ignored the nonprofit bureau’s efforts to help craft remedies for dissatisfied customers.
Telecoms argue that the costs of additional regulation would raise prices and hinder spending for improved service or development of new technologies.
A PUC staff report sums up the industry stand this way: “Left to itself, the competitive marketplace will oust the least-consumer-responsive carriers and bring out the best in service quality and marketing behavior.” When might that happen? Consumers have already waited too long.
The credit card and insurance industries have helped government develop cost-effective regulation. The telecom industry could do the same. Consumers simply want an apples-to-apples comparison of competing offers and some recourse for solving complaints. Basic consumer rights cannot be dismissed as too expensive and unnecessarily burdensome.
