With concern rising among legislators of both parties over a range of issues in the wireless industry, the Federal Communications Commission today decided to launch a broad investigation (PDF) into the competitiveness of wireless service. They also approved two additional inquiries to address other consumer issues in telecom service—including one in which they cited a study finding by the Consumer Reports National Research Center.
The Commission is interested in how the level of competition between cell-phone carriers may be affecting their customers and the level of investment in the industry, including the entry of new carriers to the market.
At today's meeting, the first with its new roster of commissioners, the Commission was responding to petitions that asserted that a lack of competition in wireless has resulted in some unwelcome developments. Those include a rise in deals that make certain cell phones available exclusively from a particular carrier, the continuation of often-hefty termination fees when consumers end their cell-phone contracts early, and the blocking from certain phones of software to allow consumers to make calls outside of their carrier's cell-phone network. (The concern about such blocking is now extending beyond merely voice-calling applications, as our advocacy colleagues at Consumers Union, the parent company for Consumer Reports, recently covered.)
The Commission also launched an inquiry into other ways in which telecom consumers might be empowered and protected. In doing so, it cited results from the most recent report on bundled phone, TV, and Internet service by the Consumer Reports National Research Center. That survey showed a high incidence of complaints about billing, support, and fees with the so-called "triple play" packages offered by some telecom providers. The Commission cited the study because it wants to further establish how widespread are the complaints it highlights, according to FCC staff member Lisa Boehley.
The Commission also confirmed a third inquiry, into wireless innovation and investment, including such issues as the use of the wireless spectrum in ways that benefit consumers and help "solve real-world problems in areas such as health care, energy, education, and public safety."












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