Subject: [NEXTEL-1] Think tank says new regulations will increase consumer wireless bills

From: [email-masked]
Date: Wed, 15 Oct 2003 14:56:11 -0400

Think tank says new regulations will increase consumer wireless bills
By Jeffrey Silva
October 15 12:56:00, 2003

WASHINGTON—A think tank funded by the wireless industry and other tech sectors
today warned in a new study that U.S. cellular subscribers could pay over $16
billion a year—or about $10 per month extra—to pay for taxes and regulations
imposed on the wireless industry.

The study’s authors—economists Thomas M. Lenard and Brent D. Mast of The Progress
& Freedom Foundation—predicted the 18-percent cost increase would hit minorities
and rural customers hardest. Moreover, the study concludes, higher prices could
result in 31 million fewer wireless users. There are currently nearly 151 million
mobile-phone users in the United States.

The report examined national and state mandates already in place, as well as major
new proposals, estimating their effects on the wireless market.

Lenard and Mast said a proposed bill of rights for California telecom consumers
would add nearly $4 to monthly mobile-phone bills. The plan is being considered by
the California Public Utilities Commission. The study also singled out as onerous
legislation sponsored by Sen. Charles Schumer (D-N.Y.) to enact a national
wireless user bill of rights.

The mobile-phone industry recently adopted a voluntary code of conduct to address
the rising tide of consumer complaints otherwise being hashed out by states,
Congress and the courts.
“In such a competitive environment, the costs associated with these mandates will
be passed on to consumers,” stated Lenard and Mast “The wireless sector is under
increasing pressure on a number of regulatory fronts—most notably in the areas of
taxation and regulatory mandates.”
While the study said some mandates may be justified, the authors argue there has
been little or no systematic analysis of the combined effects on average
consumers.

The PPF study comes as industry approaches the Nov. 24 deadline for implementing
wireless number portability and as California regulators near a vote on the
telecom user bill of rights.

Among the entities PPF lists as contributors are the Cellular Telecommunications &
Internet Association, the Consumer Electronics Association, Motorola Inc. (the No.
1 U.S. mobile-phone manufacturer), SBC Communications Inc. and BellSouth Corp
(60-percent and 40-percent respective owners of Cingular Wireless L.L.C.), Sprint
Corp. (parent of Sprint PCS) and Microsoft Corp. (a new Web mobile partner of
Vodafone Group plc, the world’s largest mobile-phone operator.)

http://rcrnews.com/cgi-bin/news.pl?newsId=15480

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