Protecting the wireless populace

“With fierce competition comes collective responsibility.” Are these the words of Uncle Ben, father figure to Spider-Man alter ego Peter Parker? No, they were uttered yesterday by Tom Wheeler, president and CEO of the Cellular Telecommunications and Internet Association, during a press event announcing a new consumer code for wireless service that was voluntarily adopted by many of the wireless carriers in the U.S.

Ostensibly, the 10-point code is meant to help ease consumers’ wireless decision-making processes (see Wireless industry adopts code of conduct). Included in the code are measures such as simplifying rate plan descriptions, contract terms and coverage maps; allowing a 14-day trial period with no early termination fee; sorting out carrier charges from taxes on billing statements; and several other items. In short, it’s meant to do a bunch of things carriers should already be doing in a competitive sector--and to be fair, many already are.

The unspoken but blatantly obvious purpose of the voluntary code is to help the industry stave off more stringent government regulation, particularly from state bodies. That’s a good idea, especially considering how competition in the wireless sector has flourished in a less-regulated environment than its wireline counterpart. (Unfortunately for the wireless industry’s cause, the announcement of the code coincided with the California Public Utilities Commission levying a $12.1 million fine against Cingular Wireless for providing inadequate service by allegedly not allowing new users a grace period to cancel service, and not informing customers about problems with its network.)

The CTIA got its point across loud and clear yesterday when it held what was quite possibly the largest and most luminary-laden press event in the industry’s history. (Wheeler was accompanied by executives from three U.S. carriers; U.S. Rep. Billy Tauzin, R-La., chairman of the U.S. House Committee on Energy and Commerce; K. Dane Snowden, chief of the Consumer and Governmental Affairs Bureau of the FCC; New York State Assemblyman Richard Brodsky; and Georgia Public Service Commissioner Stan Wise.) The wireless sector left little doubt that it is determined to work with its own--and at arms-length with government entities--to try and keep itself competitive and consumer-friendly.

The consumer code is a laudable first step, especially if adherence to it helps keep the wireless sector competitive without the need for further regulation. But some critical components are missing from the voluntary code that are important to consumers--issues such as the abolition of per-minute rounding and the institution of dropped-call credits, to name only a couple. If the wireless industry wants to be truly competitive in the eyes of its consumer audience, it will continue to build on the basic elements of the code by adding those self-regulatory measures that are most important to customers.

E-mail me at jmeyers@primediabusiness.com.