FCC Likely to Cut Back on Phone Data
Agency Seen Approving AT&T Request to Halt Yearly Service Reports

By AMY SCHATZ
Wall Street Journal

September 4, 2008

http://online.wsj.com/article/SB122048636736397179.html?mod=2_1571_leftbox


Federal regulators are on the verge of cutting back on the amount of 
information they collect from the country's largest phone companies about 
service quality and customer complaints.

On Friday, the Federal Communications Commission is expected to approve a 
request from AT&T Inc. to allow the company to stop filing yearly reports 
on service quality, customer satisfaction and infrastructure investment. 
Similar requests by Verizon Communications Inc. and Qwest Communications 
International Inc. are also expected to be approved soon.

Consumer groups and state regulators have objected to the proposal, saying 
the quality data are valuable. The FCC will open up a related notice of 
proposed rulemaking that looks at how to improve the collection of data on 
complaints and other issues from phone companies, including wireless and 
Internet phone providers.

The decision highlights a broader issue at the FCC, where data collection 
from phone and cable companies hasn't kept up with changes in the 
marketplace, as more consumers have switched to wireless and Internet phone 
services. Earlier this year, the agency revamped the information it 
collects from broadband providers and increased its definition of 
high-speed broadband to speeds of 768 kilobits per second or higher -- 
which is at the low end of what many consumers get from local cable or 
phone companies.

A majority of the FCC's five commissioners, including Chairman Kevin 
Martin, agree it is time to stop requiring the reports and overhaul the 
reporting rules instead, according to people familiar with their thinking.

An FCC spokesman declined to comment. An AT&T spokesman said the company 
wants to "eliminate reporting requirements that are no longer necessary or 
[are] redundant." He added that customer complaint information the company 
must file comes from the agency itself and state regulators while other 
data are filed to the FCC in other reports.

It has been eight years since the FCC began looking at how to change the 
way it collects data from phone companies about costs and service quality, 
but little came from that effort.

The phone companies say the annual reports are outdated and it is unfair to 
require the information since many of their competitors don't have to file 
similar reports.

States compile much of the same data, particularly on consumer complaints 
and service outages, and release it more quickly than the FCC, although not 
in a uniform fashion. The agency collects some of the same information in 
other reports, such as service outages, but those data aren't made 
available to the public.

Many state regulators and consumer groups oppose AT&T's request, saying the 
data collected are useful for monitoring the largest phone companies' 
infrastructure investments and service quality.

"There's no way for consumers or regulators to know whether network quality 
is declining except for data like these," says Chris Murray, senior counsel 
at Consumers Union, one of several public interest groups asking the FCC to 
deny AT&T's request. "They're saying throw out the rules and figure out if 
we can fill in the gaps with something else later."

Smaller phone companies have complained because they have relied on the 
data to oppose various phone company mergers and use some of the data to 
track costs associated with high-volume data lines.

The FCC began collecting detailed cost data in 1987 and network reliability 
and consumer complaint data a few years later. Back then, most Americans 
subscribed to traditional phone services from one of a handful of large 
regional phone companies.

The telecom landscape has changed significantly over the past two decades, 
however, with more consumers dumping traditional phone service in favor of 
wireless or Internet phones. The FCC's rules on which companies had to 
report that data haven't changed, however, with the result that AT&T, 
Verizon and Qwest are among a handful of companies required to file the 
information.

In June 2007, AT&T asked the FCC to get rid of the requirement and if not 
that, at least make all phone providers file similar information.


=================================================
George Antunes                    Voice (713) 743-3923
Associate Professor               Fax   (713) 743-3927
Political Science                    Internet: antunes at uh dot edu
University of Houston
Houston, TX 77204-3011         

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