Kennard calls for CPP plan

FCC Chairman William Kennard surprised many Wireless '99 attendees last week by recommending that a calling party pays plan be initiated soon for calls to wireless phones.

"I've had some very interesting conversations recently with my counterparts in Europe, and I believe that it's time for us to find a way to implement a calling party pays system in this country," he said in his speech kicking off the second day of the show.

He explained that only 5% of phone calls are now made on wireless phones and that he believes a CPP plan could dramatically increase that percentage. He added, however, that "some tough consumer issues" need to be worked through before such a plan can be initiated.

The FCC has been considering the matter for some time. In September 1997, the commission, then headed by Reed Hundt, issued a Notice of Proposed Rulemaking to seek comments on a CPP plan. At the time, the FCC was interested in determining whether the differences in billing practices that exist now between wireless and wireline carriers could "stifle" the ability of wireless carriers to compete.

The Cellular Telecommunications Industry Association has been encouraging the FCC toward such a plan for two years, a spokesman said. But it has also suggested that a national framework needs to be implemented before a CPP plan could work. In a May 1998 filing, the CTIA asked the FCC to adopt a national policy to ensure that consumers are informed that they will be billed for calling wireless phones.

In addition, "the notification system needs to be universal, so there aren't 50 different types of notification for all 50 states," the spokesman said.

Though a few carriers use CPP plans, it is far from commonplace. AT&T, which supports Kennard's statements, tested such a plan in Minnesota last year. However, that plan is now "almost moot" because of its Digital One Rate plan, a company spokesman said.