BILL ANALYSIS AB 1379 Page 1 Date of Hearing: April 28, 2003 ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE Sarah Reyes, Chair AB 1379 (Calderon) - As Amended: April 23, 2003 SUBJECT : Telecommunications: mobile telephony service. SUMMARY : Requires wireless carriers to provide subscribers with a means to access information on their roaming usage and charges. Specifically, this bill: 1)Requires a provider of mobile telephony services to develop, no later than by January 1, 2004, a means to allow subscribers to obtain reasonable and available information on their roaming usage and charges. 2)Defines mobile telephony services to mean commercially available interconnected mobile phone services that provide access to the public switched telephone network (PSTN) via mobile communication devices employing radiowave technology to transmit calls, including cellular radiotelephone, broadband Personal Communication Services (PCS), and digital Specialized Mobile Radio (SMR). 3)Specifies that mobile telephony services does not include mobile satellite services or mobile data services used exclusively for the delivery of nonvoice information to a mobile device. EXISTING LAW : 1)Requires a provider of commercial mobile radio service to develop a means to allow subscribers to obtain reasonably current and available information, as determined by the provider, on the subscriber's calling plan or plans and service usage. 2)Requires each provider of commercial mobile radio service to inform subscribers at the time service is established of the availability of the information on their calling plan or plans and service usage and how it can be obtained. FISCAL EFFECT : Unknown. AB 1379 Page 2 COMMENTS : The purpose of this bill : According to the author, this measure has been introduced to resolve the initial shock a consumer has when they receive their first cellular phone bill and find it to be unexpectedly high. Presently, a consumer has avenues in which to access their usage time, which means they can figure out before the bill comes, there up to minute charges on usage time. What a consumer can't find out is their update roaming usage and charges. Does existing law already allow this? Current law already requires a provider of commercial mobile radio service to develop a means to allow subscribers to obtain reasonably current and available information, as determined by the provider, on the subscriber's calling plan or plans and service usage. Do wireless phone carriers already have the ability to give consumers roaming charge information under current law if they ask? Implementation date problematic : This bill requires providers of mobile telephony service to make available to its subscribers with a means by which they can obtain reasonably current and public information, as determined by the provider, on the roaming usage and charges by no later than January 1, 2004. Can the providers of mobile telephony service provide this information within the next nine (9) months or do they need to have an implementation date closer to January 1, 2005? The committee recommendation is to specify that this bill will go into affect on January 1, 2005 in order to give the carriers enough time to provide subscribers with a way to access their roaming usage and charges information. Consumer Bill of Rights Proceeding : On June 6, 2002 the California Public Utilities Commission (PUC) started an Order Instituting Rulemaking for the purpose of creating an interim draft decision on a Consumer Bill of Rights for all telecommunication carriers and their customers. The interim draft decision required all telecommunications carriers to meet certain standards, set by PUC, for disclosure, consumer choice, privacy, public participation and enforcement, accurate bills and redress, non-discrimination, and safety. In the last four years, the number of complaints against phone carriers in California has risen dramatically from approximately 11,000 AB 1379 Page 3 grievances filed in 1999 to about 18,000 complaints in 2000 to an all-time high of 31,345 petitions by the end of 2001. Customers who said they were deceptively or erroneously charged for a service without their authorization filed most of the complaints to PUC. Will PUC in their Consumer Bill of Rights proceeding require wireless carriers to provide roaming and usage information to their subscribers? Currently, the wireless service industry is deregulated but PUC does have regulatory oversight over the service quality standards for the industry. REGISTERED SUPPORT / OPPOSITION : Support Office of Ratepayer Advocates Opposition None on file. Analysis Prepared by : Daniel Kim / U. & C. / (916) 319-2083