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Legislature 2006: Bill Would Hang Up on Cell Contracts

Posted on: Wednesday, 11 January 2006, 21:00 CST

By Sonji Jacobs, The Atlanta Journal-Constitution

Jan. 11--Jim Watts just wanted a new cellphone. A Motorola RAZR, to be precise.

The upgrade cost him two more years on his Cingular contract.

"To be roped into two years to pay for the new phone doesn't make me very happy," Watts, of Avondale Estates, said Tuesday.

Sen. Cecil Staton (R-Macon) has heard the same complaint many times. He wants to prohibit cellphone providers from requiring that customers extend their contracts in order to change their plans.

"I'm a businessperson," said Staton, who filed a bill on behalf of frustrated cellphone users Tuesday. "I'm not a big fan of government regulations. But I know that when an industry is not willing to self-police, there is a role for government."

Staton said he understood why cellphone companies extended the contracts of customers who were trying to downsize their service plans. But he said people making a change that does not reduce revenue to the company should not be hit with a contract extension.

Senate Bill 395 is likely to face stiff opposition from Georgia's telecommunications companies. Several telecom businesses are already pushing for less government regulation of the wireless industry.

Last year, Sen. Mitch Seabaugh (R-Sharpsburg) filed Senate Bill 120, which would prevent the state Public Service Commission from regulating wireless, broadband and Voice Over Internet Protocol, technology that allows people to use the Internet for telephone service.

Cellphone companies say that more government regulation will ultimately cost customers more.

"We are still studying the impact of this bill and any other new legislation as the General Assembly begins its 2006 session," said Kristin Wallace, spokeswoman for Sprint Nextel. "In principle, Sprint Nextel believes the competitive wireless marketplace is serving its consumers well and that regulation of wireless service would be harmful to innovation and costly for consumers."

Caran Smith, a spokeswoman for Verizon Wireless, said that company takes several steps to protect customers. Verizon sends a confirmation letter about any changes requested by the customer, as well as the new package offer and cost. Customers also have a 30-day period during which they can choose to go back to their original price plan, Smith said in an e-mail statement.

"By limiting a carrier's contract options, the state in effect is limiting a consumer's flexibility to move to rate plans and take advantage of services that meet their wireless needs."

Morgan Jindrich, director of www.hearusnow.org, the telecommunications and media Web site for Consumers Union, publisher of Consumer Reports magazine, said the organization receives "tons" of complaints from disgruntled cellphone customers.

"What Georgia is considering doing would be fantastic," Jindrich said.

"Consumers need to have a little wiggle room. Today I may have different needs than what I will have in two years."

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Copyright (c) 2006, The Atlanta Journal-Constitution

Distributed by Knight Ridder/Tribune Business News.

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BLS, T, MOT, VZ, VOD,

Source: The Atlanta Journal and Constitution

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