BILL ANALYSIS                                                                                                                                                                                                              1
          1





                SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                            MARTHA M. ESCUTIA, CHAIRWOMAN
          

          AB 610 -  Calderon                                Hearing Date:   
          June 30, 2005              A
          As Amended:         June 21, 2005                 Non-FISCAL      
            B
                                                                        
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                                                                        0

                                      DESCRIPTION
           
           Current law  requires cellular telephone companies to provide  
          customers with a means by which they can obtain current  
          information on their calling plan, usage, and charges.

           This bill  requires cellular telephone companies to also provide  
          customers with a means by which they can obtain current  
          information on their text messaging and Internet usage and  
          charges by January 1, 2007.

                                      BACKGROUND
           
          Cellular telephones have become increasingly capable.  In  
          addition to voice communications, many cellphones can now be  
          used to send and receive text messages and access the Internet.   
          Soon those phones will be able to receive television-like  
          service, provide location information, and act like electronic  
          wallets.  Calling these devices "phones" seems like quaint  
          understatement.

          As cellular telephones have become more widely adopted<1>, and  
          their capabilities expanded, so too have consumer expectations.   
          Cellphones are now expected to work everywhere, with clear,  
          reliable service.  While these expectations may be unrealistic,  
          they are reinforced by the marketing efforts of the cellular  
          telephone companies.  The unmet consumer expectations have  
          ---------------------------
          <1> At 191 million in 2005, the number of cellular telephones  
          probably exceeds the number of traditional telephones, which is  
          estimated at 173 million at the end of 2003 in a recent report  
          by the Federal Communications Commission.










          inevitably led to disappointment which in turns leads to calls  
          for regulation.  In California this started in the mid-1990's  
          when concerns about high and not-well-disclosed early  
          termination fees led to an effort to restrict those fees.   
          Concerns about the high cost of exceeding monthly plan minutes  
          led to the successful 2002 effort to give customers ready access  
          to such information.  Continuing concerns about service quality  
          have given rise to a pending bill which includes cellular  
          telephone service as part of a larger bill establishing  
          telephone service quality standards (SB 1068:  Escutia).  It  
          would not be bold to predict that future legislation will deal  
          with cellphones and their role as surrogates for debit and  
          credit cards.

                                       COMMENTS

           This bill provides cellular telephone companies with great  
          flexibility to meet its requirements because it allows them, and  
          not the California Public Utilities Commission, to determine  
          what information is "reasonably current and available".
                                           
                                   ASSEMBLY VOTES
           
          Assembly Floor                     (57-19)
          Assembly Utilities and Commerce Committee                       
          (10-1)

                                       POSITIONS
           
           Sponsor:
           
          Author

           Support:
           
          None on file

           Oppose:
           
          None on file

          

































          Randy Chinn 
          AB 610 Analysis
          Hearing Date:  June 30, 2005