FCC asked to hold line on cell phone fees

AUGUSTA – Have you ever looked at the list of myriad fees and surcharges on your phone bill and wondered what they all are? You are not alone. The Maine Public Advocate’s Office has joined with 43 other states in asking the Federal Communications Commission to ban what it calls “deceptive” charges.

“Since 1997, American consumers have been driven crazy by the proliferation of separate line items and surcharges on their bills,” Steve Ward, Maine’s public advocate, said recently. “We are now asking the FCC to put an end to these deceptive charges.”

Of particular concern are the unregulated fees that cell phone companies have added to bills in the last few years. Wayne Jortner, a lawyer with the Public Advocate’s Office, said customers are often caught in a bait-and-switch situation.

“The wireless industry’s costs have never been measured by regulators,” he said. “So when they assess a fee for a cost, there is no way to know what it is really for, or if it is justified. It really just goes to increase their revenue.”

In documents filed with the FCC, the National Association of State Utility Consumer Advocates, of which Maine is a member, listed several examples of fees and surcharges that are not explained and are not disclosed until consumers get their bills.

For example, AT&T Wireless has a $1.75 a month “Regulatory Programs Fee” that sounds like a tax or fee imposed by the government. It is not. It is a fee created by the company to help its bottom line, and the fee is commonplace in the cell phone industry.

The petition seeks to make sure all phone fees are accurate, not just those on cell phone bills. State regulators share jurisdiction with the FCC over land-line phone companies.

Industry representatives argue they have the right – in fact, an obligation – to company shareholders to recover the costs of meeting regulatory requirements. They defend the fees by pointing out they are disclosed on the bills.

“Wireless companies provide line-item billing information in order to better inform our consumers about how their wireless dollars are being spent,” said Erin Magee, communications manager for the Cellular Telecommunications and Internet Association. “It’s ironic that consumer advocates are now suggesting it would be better if we hide this information, burying it out of sight in the monthly fee.”

The Center for Public Integrity is concerned whether the FCC will act to protect consumers. It released a report last fall critical of the increased use of fees and surcharges.

But if the FCC does not act, Congress may, said Sen. Olympia Snowe, a member of the Senate Commerce Committee.

“I know I look at my telephone bill and raise the same questions,” she said. “I think we need to have accountability.”