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Table of Contents:
 FCC Expected to Propose New Roaming Rules
AT&T/Cingular Customers Can File Class Action
N.Y. Agency Wants Sprint Nextel To Pay Booted Customers
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FCC Expected to Propose New Roaming Rules
Over the last several years, the FCC has gone back and forth on roaming regulations. Seven years ago, it asked the public for input on numerous roaming issues. In 2005, the commission proposed a rule on the issue of automatic versus manual roaming, but to date, not much is on the books when it comes to roaming regulations. Now, the agency requires only that carriers offer manual roaming, whereby a subscriber enters a credit card number into the phone in order to receive service directly from another provider. Automatic roaming—which involves contractual agreements between providers—is not required, nor are the rates that subscribers pay under such agreements regulated.
In recent weeks, however, the FCC seems to be taking a renewed interest. It is expected that the commission will recommend new rules regarding roaming rates within the month.
Several associations and wireless providers have been seeking relief from high roaming rates. As of this week, a group of service providers and trade organizations representing the interests of smaller operators formed a new organization called the Alliance for Fair Roaming Access. It intends to petition Congress and the FCC to address anticompetitive and discriminatory roaming practices, and it wants the commission to clarify that all wireless carriers are obligated to enter into automatic roaming agreements that are reasonable and nondiscriminatory.
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AT&T/Cingular Customers Can File Class Action
Last week, the Washington state Supreme Court ruled that companies do not have the right to prohibit customers from filing a class action lawsuit just because they sign a waiver in a contract prohibiting such actions.
The case involved Cingular Wireless and five of its customers who filed the class action suit over alleged improper billing. The charges in question ranged from $1 to $45. Although the plaintiffs admit that no individual consumer suffered a significant loss, they claim that in the aggregate, Cingular unilaterally overcharged the public by very large sums of money. The particular ruling did not address the merits of the plaintiffs’ claims, but determined that they did have the right to sue in the form of a class action suit. The court’s rationale was that if consumers did not have the ability to bring suit in a class action format, it would violate the public policy goals of the Consumer Protection Act.
Consumer groups see the ruling as a significant victory, and not just for consumers of telecom services but across several industry sectors. Consumer groups point to the fact that all major wireless providers prohibit class action clauses in their contracts, and this particular practice exists in other industries ranging from automobiles to credit cards.
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N.Y. Agency Wants Sprint Nextel To Pay Booted Customers
The New York State Consumer Board is asking Sprint Nextel to compensate the 1,000 or so customers who were sent early termination letters in late June. The consumer advocacy agency believes the cancelled customers are not being treated fairly and should receive at least $200 to cover the costs of finding a new provider, purchasing a new phone and other related expenses.
Sprint Nextel had informed an undisclosed number of customers that their service will be terminated because those customers either filed too many complaints or made too many phone calls outside their calling areas. Although Sprint is not requiring the customers to pay their last bill, the consumer group is arguing that just as a consumer would have to pay an early termination fee, so should Sprint. According to Sprint, the customers in question were calling the company 40-50 times a month, mostly arguing over billing disputes.
The consumer group has not yet received a response from Sprint. If the group cannot work out an agreement with the provider, Mindy Bockstein, the board’s chairwoman and executive director, says it may take the issue to state lawmakers.
Comments and feedback welcome, please email Jill Morgan at jmorgan@billingworld.com.
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