Wireless Users May Get Help — Ariz. Bills Target Consumer Woes
The Arizona Republic
Max Jarman
Arizona lawmakers and regulators are taking another crack at regulating the wireless-telephone industry, backing two bills in the Legislature that would target fraudulent billing practices and poor service.
The “truth in billing” legislation, introduced in the House and Senate, would give the Arizona Corporation Commission authority to intervene on consumers’ behalf to resolve billing disputes and quality-of-service issues.
Many other states have such authority, but Arizona wireless customers must take their complaints to the Federal Communications Commission.
“We want to give consumers a local place to go to solve their problems,” Corporation Commission Chairman Jeff Hatch-Miller said Monday at a news conference introducing the legislation.
He said most of the consumer complaints filed with the commission relate to wireless service, yet the commission has no authority to help settle the disputes.
In 2003, metropolitan Phoenix was the nation’s 14th-largest wireless-telephone market with 2.1 million subscribers, according to RCR Wireless News.
The commission has authority over Qwest Communications and other companies that provide traditional, wired-telephone service.
Those companies can be fined for excessive complaints and poor service.
“If your phone has a wire, you have protection,” Hatch-Miller said. “If it’s wireless, you’re out of luck.”
It’s the third effort by the state to regulate wireless companies. The Arizona Corporation Commission approved slamming and cramming rules in 2002 that called for fines of up to $15,000 for companies that “slammed,” or illegally switched a customer’s service provider.
But in 2003, Arizona Attorney General Terry Goddard struck down the rules, saying the commission lacked the regulatory authority.
Last year, lobbyists for wireless companies blocked a measure similar to the one now before lawmakers.
Proponents hope this year will be different.
“I see the lobbyists lining up to kill the bill,” said Corporation Commissioner Kris Mayes. “I urge them to back off. This is a bill that Arizona consumers need.”
Debra Havins, a spokeswoman for Nextel Communications in Denver, said the company is opposed to state regulation of any kind.
“Having to comply with a hodgepodge of state regulations would make it hard to deliver quality service,” Havins said.
Michael Bagley, executive director for public policy for Verizon Wireless’ Western division, called the Arizona legislation a bad bill with a nice name.
“It sounds good,” he said. “But it would be a burden for us and for our customers.”
In May, California regulators approved a “bill of rights” for telephone customers that gave consumers up to 30 days to cancel a wireless contract without being charged a hefty termination fee. But last month, after California Gov. Arnold Schwarzenegger replaced two commissioners who supported the measure, the panel voted to put the bill of rights on hold.
In Arizona, the measure is backed by Attorney General Terry Goddard, the Arizona Consumers Council and a bipartisan group of lawmakers.
“I don’t like regulation, but I don’t like getting screwed, either,” said Rep. Ray Barnes, R-Phoenix, sponsor of the House version, HB 2468.
Barnes said he was the victim of a wireless billing mistake that affected his credit.
“I went to the FCC and was never able to get the issue resolved,” he said. The Senate version of the bill, SB 1213, is backed by Sens. Gabrielle Giffords, D-Tucson, and John Huppenthal, R-Chandler.
