Now Hear This Electronic Newsletter, September 6, 2007 Posted by Bob at 09/05/07 12:11 PM

Wireless phone companies would be forced to be more open and honest with consumers about fees and services under proposed legislation that's expected to be introduced in Congress tomorrow.

The Cell Phone Consumer Empowerment Act of 2007 was unveiled today by Senators Amy Klobuchar (D-MN) and Jay Rockefeller (D-WV).

The bill would require wireless service providers to share simple, clear information on their services and charges with customers before they enter into long-term contracts. It would also establish a thirty-day window in which during which consumers could exit a contract without early termination fees and require greater flexibility for consumers who want to exit contracts with services that don’t meet their needs.

“The rules governing our wireless industry are a relic of the 1980’s, when cell phones were a luxury item that fit in a briefcase instead of a pocket,” said Klobuchar. “Early termination fees are a family budget-buster; families should be able to terminate service without outrageous fees; know if their cell phone will work on their drives and in their home and office; and understand what to expect in their monthly bills once you pile on charges and fees. It’s a simple matter of fairness.”

Other provisions in the proposed legislation would
:

* Require wireless companies to provide consumers with detailed data on coverage areas and dropped calls before they commit to a long-term contract.

* Require pro-rating of early termination fees for those who exit their contract after thirty days.

* Allow consumers to exit a contract within thirty days without a termination fee when wireless service is found to be unsatisfactory.

* Require transparency in contracts and billing, including explanations of taxes and fees.

The legislation also calls upon the FCC to study the practice of “locking” phones – making them exclusive to one service provider and requiring consumers to purchase a new phone when changing carriers.

This legislation should be welcomed by the millions of consumers who have become all too used to the wireless phone industry's chronically lousy customer service and anti-competitive practices, such as early termination penalties.

Congress should pass this legislation in short order, and the President should sign it into law without delay.

You can click here to get more information about the proposed legislation.

And as long as we are on the subject of cell phone hell and what Congress should do about it, stand-up comic Tina Dupuy has written a funny and insightful article on that exact topic which appeared in Newsday today. You can read it by clicking here.

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FCC Public Hearing on Media Ownership to be held in Chicago on Sept. 20th

The Federal Communications Commission plans to hold a public hearing on media ownership in Chicago two weeks from today.

This will be the fifth of six public hearings promised by FCC Chairman Kevin Martin when he decided to reopen the debate on the agency's regulations on media ownership in June 2006.

The previous four hearings have been raucous affairs, featuring speaker after speaker pleading, demanding or simply quietly requesting the FCC not further relax its already anemic rules on media ownership. What little support that has been shown for relaxing the media ownership rules has been supplied by big media companies themselves, usually through surrogates the companies have recruited from local civic and non-profit groups.

If the FCC were to actually base its decision on its media ownership rules on the public hearings it would have to strengthen the current regulations substantially, not weaken them or leave them the same.

But despite the huge outpouring of support for stronger media ownership rules at the public hearings and elsewhere, It's unlikely the current FCC will do anything more than leave the current feeble regulations unchanged. And there's a good chance the FCC will weaken the current rules.

How feeble are the current rules? Consider this:

* Media Mogul Rupert Murdoch is expected to receive quick approval of his deal to buy the Wall Street Journal because it doesn't appear to violate the FCC's media ownership rules.

* XM and Sirius, the country's only two satellite radio companies, are considered to have a good chance of pushing through a controversial deal to merge and become a single company. That's in spite of an agreement they made with the FCC specifically preventing such a merger.

The Chicago public hearing is expected to center on the vital issue of media diversity -- and it's a fitting venue.

Chicago has one of the lowest levels of minority ownership among markets of its size and diversity. Research conducted by Free Press, the national media reform group, found that racial and ethnic minorities make up nearly two-thirds of Chicago’s population but own only five percent of the city’s full-power commercial radio and TV stations. Despite comprising half of the population, women own just six percent of the city’s radio and TV stations.

“WVON is the only African-American-owned radio station in the third-largest market in America and, until last year, operated on a shared frequency,” says Melody Spann-Cooper, president of WVON. “We stand as the best example of why the FCC must look at alternatives that will increase minority participation and level the playing field. It is the only way to ensure that the broadcast industry becomes more inclusive and better reflects the true diversity of our country.”

The lack of minority and female owners is reflected in local news coverage. A recent study by the Media Management Center at Northwestern University found that “for every non-white person who is heard in a story, there are three white people” and “people who are white, male and official dominate news about politics.” Women are outnumbered by men on the local news by 2-to-1.

“The voices of Latinos, youth, women and other groups are being usurped by the special interests of media companies that produce programming that is all too often homophobic, misogynistic, anti-immigrant and absent the diversity found in our communities,” said Silvia Rivera, general manager of Radio Arte 90.5 FM. “Radio Arte rejects any additional media consolidation and challenges the FCC to adopt rules that open up ownership opportunities for Chicago’s marginalized groups.”

At the national level, the low number of female and minority owners is equally alarming. People of color make up 33 percent of the entire U.S. population, yet own seven percent of all full-power radio and TV stations. While women comprise 51 percent of the entire U.S. population, they own less than six percent of full-power commercial radio and TV stations.

Against this backdrop, it is crucial for as many people as possible to show up and testify in Chicago and at the last public hearing, which has yet to be announced.

Consumers Union (the sponsor of www.hearusnow.org and this blog) is part of a broad coalition of consumer and public interest groups that have banded together form www.stopbigmedia.com. Please go to the web site to learn more about the upcoming hearing in Chicago and a number of related events and other information to help prepare consumers for the session.

comments (4)

1 Posted by Ed Kayatt at 09/06/07 02:21 PM

It ios obvious that these companies cut back on customer services but continue to raise fees! Ever try to reach their customer service?
You will wait, wait and wait and then get a disconnect. This happens regularly. PAY MORE AND GET LESS!

2 Posted by Beverly Kurtin at 09/06/07 02:42 PM

As with every other agency in this once great country, it has been invaded by greedy insiders whose only allegiance is to those who can give them the most money for the least amount of effort. That is the bottom line and if you don't know and understand that then let's make W president for life. (The thought sends shivers down my entire body.)

GREED is the operative word. Right and Wrong have no meaning anymore. You have to grease the right hand if you want anything done in this country.

Even the FCC has become a greed center and until we as a nation raise up and begin DEMANDING OUR RIGHTS instead of pleading for them, we will sink further and further into the pockets of those who would sell us for the price of a doughnut...like that grievous hole that prevents Medicare recipients from being able to buy prescriptions year 'round. We have become a nation of lobbyists for lobbyists by lobbyists.

No longer should we have to BEG. WE are the People, not the greedy illegitimate offspring who become richer and richer off the work of the average schmo this country has brought up.

Social Studies are no longer taught in our schools. Why, to make our kids ignorant of their rights and their duties. Our kids don't know what their RIGHTS are, they think we have to BEG our country's "leaders" to do the right thing.

WE, THE PEOPLE, are what this country is supposed to be for, not the greedy lobbyists who buy their representatives.

Please go out tonight and get a copy of "Mr.Smith goes to Washington" and watch it again. This country needs a "do over" and it needs it NOW.

3 Posted by Warren Hayashi at 09/07/07 11:38 AM

Check out the following URL for the latest tricks by cell phone service providers and how to prevent them, http://hubpages.com/hub/Avoid_These_10_rip-offs_and_Cell_Phone_Carrier_Tricks.

4 Posted by Joe at 09/08/07 09:22 AM

Beverly's got it right. GREED, GREED, GREED! The term "greed is good" is resurfacing in the financial world after being mostly dormant for the past two years. Has there ever been an attemp to merge that hasn't been approved? The original seven regional bells that were the breakup of AT&T in the 80's(?) have wittled down to two major players: AT&T and Verion. They'l gobble up the smaller phone providers then eventually become one!