Wireless Gone Wild
By: Chad Hudnall; Source: AARP Bulletin Date Posted: 2005-09-01 08:44:00-04:00
Many of us have scrutinized our cell phone bills and wondered how a calling plan advertised for $29.99 a month grew to $50. OK, we know about charges for roaming (calling outside the home area), using 411 directory assistance and going over our allotment of minutes. But what's that long, impenetrable list of other charges?
"The company couldn't tell me what the charges were," Allie Pike, 45, a county worker from Florida, said after questioning her cell phone bill.
Those other items are fees and taxes tacked on by state, local and federal governments as well as the wireless carriers themselves (the big four are Cingular, Verizon, Sprint and T-Mobile). But customers want to know why the charges aren't explained clearly and why they aren't included in the price subscribers are quoted initially.
State officials and consumer groups are putting these questions to the Federal Communications Commission. The agency in March gave the nation's 190 million wireless customers only limited protection from what the National Association of State Utility Consumer Advocates calls misleading and deceptive charges. In response to the NASUCA petition for "truth in billing," the FCC ruled that wireless carriers must not mislead subscribers about billing charges and must clearly describe them. But it also pre-empted tougher state regulations that would prohibit line-item charges (separate, add-on charges), a move many say hurts consumers.
"Confusion is plaguing consumers as they try to make sense of their phone bills," says Debra Berlyn, an AARP legislative analyst. Indeed, it took Pike, who works for a law enforcement agency near Orlando, Fla., almost a month to resolve a billing problem with her carrier. In the end she got it straightened out but says the experience soured her mother on getting a cell phone. "My mom couldn't have stood what I went through on this."
While a number of states—among them California, Connecticut, Georgia, Illinois, Massachusetts, New Jersey, New York and Washington—are working toward tighter rules, the wireless industry says it's the taxes charged by state and local governments that are driving up bills.
"The average wireless consumer pays 17 percent of his or her bill in taxes and fees," says Joseph Farren, director of public affairs for CTIA-The Wireless Association. "Taxes on other goods and services are much lower and only charged once." Wireless carriers are required by federal rules to add certain charges, he says.
But only federal, state and local taxes are required, says Christopher Baker of AARP's Public Policy Institute. Other items, such as a "number pooling and portability fee," are added to the bill to recover the carrier's operating costs. Yet no one tracks how much of the money collected is used for the service.
The FCC will revisit the role of states in regulating the wireless industry within the next year. For now, AARP's Berlyn says, "we will continue to press federal policymakers to require clear and nonmisleading billing practices and a strong role for state utility commissioners."
If you find an erroneous or confusing charge on your bill, you have options. First, contact your wireless carrier. All the companies list toll-free customer service numbers on their bills and websites.
If you don't get resolution through your carrier, file an informal complaint with your state utility commission or the FCC. The FCC, for example, will notify the carrier of your grievance and give the company 30 days to respond.
If the matter is still not resolved, you can file a formal complaint with the FCC for $180. Some technical filing requirements may be best handled by an attorney. When filing, provide as much documentation as possible, as well as dates, times and names from earlier conversations with your carrier.
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