FCC Chief Says He Supports
A Move to 'Caller Pays' System
An INTERACTIVE JOURNAL News Roundup
U.S. Federal Communications Commission Chairman
William E. Kennard said that he supports ending the
practice of having recipients of wireless-phone calls pay
for the calls.
Speaking at the Cellular Telecommunications Industry
Association convention in New Orleans, Mr. Kennard
said a move to "caller pays" could help make
wireless-phone service a more effective competitor in
local phone markets dominated by a single carrier,
usually one of the Baby Bells.
The statement pleased members of the wireless industry
who have long argued that the charges cut down on
wireless-phone use.
"Caller pays" is standard practice in Europe and Asia,
but not the U.S.; as a result, many U.S. users switch off
their phones to avoid unwanted calls.
A few companies have experimented with caller-pays in
the U.S., such as by splitting the cost of incoming
long-distance calls by making the caller pay the
long-distance charge and the recipient pay a
local-access fee.
But there are hurdles to offering the service. One of the
biggest is for mobile-phone companies to be able to
keep track of each caller and bill him or her.
Mr. Kennard also urged wireless carriers to try to beat a
2001 deadline for instituting systems that will locate
callers using wireless phones to reach 911.
Other commissioners speaking at the convention said the
government should use a light hand when regulating the
wireless industry, but added that regulation remains
important.
Commissioner Susan Ness said the government's
enforcement power can be a weapon to advance
competition. Regulators, for example, can crack down
on dominant carriers that attempt to thwart competition,
she said.
Wireless carriers entering rural markets have argued,
sometimes unsuccessfully, that they should receive the
same subsidies as conventional carriers that provide
service to impoverished or rural customers.
While state regulators ultimately determine which
carriers are eligible for subsidies, the federal
government can work with state regulators to promote
competition, commissioners said.
"That is a long, long haul to get that untangled," said
Commissioner Michael Powell. "There are people who
are vested in every dollar."
Mr. Powell praised the wireless industry for its
competitiveness, but said the FCC is dissatisfied with
the industry's response to questions about its readiness to
deal with the Year 2000 problem.
"We have not been satisfied with the Y2K response,"
Mr. Powell said, adding that the response from
conventional phone companies has been much better.
Overall, the wireless industry is highly competitive and
"we need to get out of the way," said Commissioner
Harold Furchtgott-Roth.
The commission may review "caller pays" and other
matters of interest to wireless companies this spring.
|
