FCC Addresses Call Blocking: Launches Investigation into Tariffs
The FCC recently released an order clarifying that carriers may not block calls as a way to avoid potentially inflated termination charges resulting from alleged traffic pumping schemes. However, this can only be viewed as a partial victory for the free conference call providers as the FCC has also launched a formal investigation of rural ILEC termination fees.
To address concerns expressed by several long-distance and wireless companies, the FCC’s Wireline Bureau suspended the tariffs of 39 rural carriers due to substantial questions raised about the lawfulness of the rates filed. The FCC suspended the tariffs because it believes that the new, higher fees could be used to stimulate long-distance access traffic. When the FCC suspends a tariff the carriers in question can still charge the tariff rate, however, pending the outcome of the investigation, if the tariff is deemed excessive, those carriers would be required by law to refund those rates.
New EU Roaming Rates Go Into Effect
Starting on June 30th, the long anticipated EU roaming price caps went into effect for voice calls. Over the next 18 months, the Commission will monitor the effectiveness of the regulations and also determine whether or not to extend the pricing caps to include SMS and wireless data roaming. The regulations will expire after three years.
The roaming regulations apply to all 39 EU member countries. Iceland and Norway are also considering adopting the new rates.
Operators have only one month to offer their customer’s new price plans to reflect the change in tariffs. Customers would then have two months to choose the Euro tariff rate, at which time their carrier would have one month to activate the price plan.
For consumers that have a roaming package, they must inform their operator that they want the new rates, otherwise they will continue to be charged based off of their current price plan. It is estimated that 10 to 20 percent of European subscribers currently have rates that are competitive with the new rates, and thereby wouldn’t be compelled to switch plans. For those who don’t have a roaming package, the new rates will automatically apply.
In addition, operators are required to inform consumers about roaming prices as they travel, and will also have to keep customers regularly updated on price changes.
National Regulation Authorities will monitor and supervise the new regulations in their respective countries.
The new roaming rates are as follows: Operators can not charge more than EUR0.49 a minute limit rates for individuals making calls while roaming, and a EUR0.24 a minute rate limit for people receiving calls while abroad.
By 2009, the price ceilings are set to drop to EUR0.43 a minute for making calls abroad and EUR0.19 for receiving them. With the new rates, roaming bills are expected to be reduced by 70 percent. Wholesale termination fees have also been capped. For the next 12 months the wholesale cap is set at EURO.30.
Not surprisingly, mobile phone operators have argued that setting retail price caps constitutes unprecedented government control on the market. With the loss in roaming revenues, there is much speculation as to whether prices for other services will increase.
Sprint Ditches Whiny Customers
If you are a high-maintenance, costly customer, and Sprint is your carrier, chances are you were ditched this month. Sprint, which has been losing customers at a fairly high rate over the last year and has one of the highest churn rates, decided that it needed to shed itself of its most costly customers. The company sent a letter to what it called a small percentage of customers letting them know that it just wasn’t working out. The letter went out to customers who called the call centers once too often. It is estimated that only 1000 or so customers received the letter, and it is believed those individuals were calling Sprint as much as 50 times a month.
"Our records indicate that over the past year, we have received frequent calls from you regarding your billing or other general account information," the letter stated. "While we have worked to resolve your issues and questions to the best of our ability, the number of inquiries you have made to us during this time has led us to determine that we are unable to meet your current wireless needs….Therefore after careful consideration, the decision has been made to terminate your wireless service agreement effective July 30, 2007."
Since the letters went out, several web sites included postings of the now ex-customers crying foul. Repeatedly, those customers were just in total disbelief wondering why they should suffer given that Sprint, in their opinion, was unable to solve their “legitimate problems”. Posting after posting stated that billing inaccuracy was by far the overwhelming issue at hand. Others posted questions asking on what grounds were they singled out for termination, claiming that they didn’t call excessively.
Subscribers won’t have to pay early termination fees, but have a limited time to find a new provider if they want to port their existing phone number. As for the flip side of the argument, widely popular consumer-oriented websites such as consumerist.com, don’t hesitate to instruct their readers to become aggressive with wireless providers, among the other companies they report on. Frequently posted are tips on how consumers can receive credits and discounts, using the annoyance factor. Other postings include executive phone numbers and so forth.
BT First Telecom to offer Credit Cards
Being hailed as innovative, BT now offers its subscribers its own credit card. The offering is simple - use the BT credit card and save money on your phone bill each month. The credit card is linked to a customer account where each time the card is used, a discount is automatically deducted from the phone bill. Discounts also apply to anyone in a given household; the more cards, the more discounts. However, discounts are not given if the card is used to pay the same phone bill. In fact, using the card will initiate an added fee. The fee involves a BT policy of charging an extra fee if the subscriber does not use the direct debit bill pay option. The BT Credit Card offers 0 percent on balance transfers for 12 months and 0 percent on card purchases.
TTI Telecom Launches FaM Analyzer
TTI Telecom recently launched its Netrac FaM Analyzer, a new offering within its Fault Management suite. The product analyzes network operations efficiency and produces a wide range of KQIs for reliability such as (MTBF, MTTR, failure rate) for business processes (alarm acknowledgment timers and correlation rate) availability and various other alarms. The product is designed to identify process gaps, network anomalies, and individual operator performance.
Netrac provides a unified network view integrating fault, performance and service management for a holistic view of service assurance based on all available information sources, including those provided by network resources, application servers, and active monitoring probes.
Comments and feedback welcome, please email Jill Morgan at jmorgan@billingworld.com.
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