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Winter 2006

TexPIRG Citizen Agenda

Complaints On the Rise From Cell Phone Customers

In survey after survey, cell phone subscribers reveal chronic dissatisfaction with the wireless industry.

Consumers report difficulty comparing cell phone plans because information on terms, pricing and service is not presented in a uniform manner. Carriers often fail to clearly disclose the true cost of their plans, adding on various surcharges to consumers’ bills.

Consumers also cannot adequately judge the quality of the cellular service in their area before choosing a plan. Moreover, consumers who are fed up with their carriers’ billing errors and poor coverage are often locked into long-term contracts with hefty early termination fees.

The Federal Communications Commission (FCC), the agency charged with overseeing the wireless industry, reports a yearly 40-percent rise in complaints between 2003 and 2004, a rate that significantly outpaces the increase in subscribers. Although the FCC tracks complaints, it has done little to regulate the industry, instead looking to competition and market forces to protect wireless subscribers.

TexPIRG is aggressively pushing the FCC to take action to regulate the industry.

 



TEXAS PUBLIC INTEREST RESEARCH GROUP
700 West Avenue • Austin, TX 78701 • (512) 479-7287

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