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California Chamber of Commerce Leads Campaign to Block Regulations That Would Harm Wireless Consumers
SACRAMENTO, Calif., Aug 1, 2002 - California's leading business and technology organizations announced today the formation of a
coalition to persuade the California Public Utilities Commission (CPUC) to reject what it calls an ill-conceived proposal that would impose expensive
anti-consumer regulations on virtually every aspect of the wireless industry in California.
Californians for Wireless Consumer Benefits will argue against the regulations proposed by Public Utilities Commissioner Carl Wood, which could cost
California consumers millions in higher prices as well as increased inconvenience. The coalition says the rules would also require wireless carriers to spend
millions of dollars revamping nearly every aspect of their operations to conform to a raft of confusing and legalistic rules that would actually do consumers more
harm than good, and divert resources from the coverage and service upgrades consumers want and need.
According to the coalition, Commissioner Wood's proposal would:
-- Block consumers from conveniently activating wireless service,
switching plans and adding or changing services (such as voice
mail) with a single phone call by requiring a written and
signed contract.
-- Force wireless companies to comply with redundant, lengthy and
expensive "legal disclosure" requirements in marketing
materials, account statements and other information, resulting
in an absurd overload of information that is already provided
to consumers in contracts. The costs required for compliance
with all the rules is predicted conservatively to be in the
hundreds of millions of dollars.
"The rules proposed by Commissioner Wood are packaged as consumer protection, but in reality will result in a host of unintended consequences that will harm
consumers," said Allan Zaremberg, President of the California Chamber of Commerce. Zaremberg will serve as Chairperson of Californians for Wireless
Consumer Benefits.
"The wireless market today is highly competitive, resulting in lower consumer prices, increased services and improved coverage area. Regulatory meddling by
the Public Utilities Commission in this industry will only threaten these consumer benefits."
Zaremberg added that businesses would be harmed by the regulations, too. "The benefits of the competitive wireless marketplace -- low rates, increased
services and improved coverage area -- are just as important to businesses as to consumers. Wireless products and services have become integral to
commerce in California. The last thing California businesses need is regulatory intrusion that would undercut these benefits."
Other coalition members include:
-- California Retailers Association
-- California Manufacturers & Technology Association
-- AeA (formerly the American Electronics Association)
-- California Broadcasters Association
-- Cellular Carriers Association of California
More organizations are expected to join the coalition in coming weeks as the CPUC nears a potential vote on Wood's proposal as early as September.
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