Subject: [NEXTEL-1] GAO Report to the House of Representatives- FCC Should Include Call Quality in Its Annual Report

From: Marcel <[email-masked]>
Date: Thu, 08 May 2003 17:20:20 -0400

Report to the Honorable Anthony D. Weiner, House of Representatives
April 2003

TELECOMMUNICATIONS FCC Should Include Call Quality in Its Annual Report
on Competition in Mobile Phone Services

Here are the highlights the full report is availbel below.
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In establishing a regulatory framework for mobile phone services, the Congress directed
the Federal Communications Commission (FCC) to encourage competition among carriers. FCC
believes that competition enables consumers to choose carriers that offer a desired level
of call quality and that regulatory action establishing a minimum level of call quality
would not be beneficial in a competitive environment.

The Congress requires FCC to report annually on whether or not there is effective
competition in mobile phone services. While call quality has been identified as a factor
that affects consumers’ choices of a carrier, FCC does not discuss call quality in this
report. Common Call Quality Problems Associated with Mobile Phones Blocked calls (hills,
tunnels, buildings, or temporary conditions such as weather) Insufficient capacity (no
vacant frequencies, adjacent cell full, etc.) Dead spots (cell within service
area but lacking base station coverage) Lack of coverage (calls outside of carrier's
service area)

Source: GAO.

To assess the extent to which consumers are experiencing call quality problems—such as
blocked or dropped calls, insufficient capacity, dead spots, or lack of coverage—we
included questions on a national survey of adult consumers, conducted in November 2002.
Our survey indicated that about four-fifths of adult mobile phone users were satisfied
with their service, about one-tenth were dissatisfied, and the remainder indifferent.
However, we also found that consumers are experiencing some call quality problems. For
example, we estimate that about onefifth of users were unable to successfully complete 10
percent or more of their calls, because their mobile phone network dropped the calls. Only
limited information on call quality problems is available to the public or FCC.

Interested parties have proposed actions that could provide consumers with better
information to help them choose a carrier that matches their needs or would set
industrywide call quality standards for all consumers.  However, some of the suggested
actions could drive up the price of service, limit the entry of new carriers, or lead to a
reduction of service in regions that are technically difficult or costly to serve. The
carriers themselves say that they are taking actions to improve call quality and further
regulation is not needed. Over the past decade, Americans have come to rely increasingly
on mobile phones to meet their  business and personal needs.

However, because of the nature of radio transmission and other constraints, consumers are
not always able to complete calls or to hear their calls clearly. As reliance on mobile
phones has increased, state officials, consumer groups, the media, and others have raised
concerns about the extent of call quality problems. With regard to call quality, GAO
agreed to describe the regulatory framework; determine the extent to which consumers are
experiencing problems; and discuss actions for
improving call quality suggested by interested parties.

GAO recommends that FCC include call quality in its mandated annual report analyzing
whether there is effective competition in the market for mobile phone services. Including
call quality in this analysis would provide an ongoing record to help FCC and theCongress
determine whether market competition is sufficient to ensure that carriers are meeting
consumers’ expectations and
desires regarding call quality or whether further regulatory action is needed. In
response, FCC stated that to, the extent possible, it plans to include information related
to call quality in its future annual reports on competition in mobile
phone services.

http://www.gao.gov/highlights/d03501high.pdf

http://www.gao.gov/new.items/d03454.pdf

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