Consumer Code: Questions & Answers
- What Consumer Issues are Covered in the Consumer Code?
The Consumer Code directly focuses on those issues of greatest concern to consumers. For example, companies will address how rates and terms of service are disclosed,include clear service area maps, and address termination rights and privacy concerns. - Which Wireless Carriers are Committed to the Consumer Code?
The industry has worked together for more than a year to craft the Consumer Code, and there is wide support for the final product. Many of the nations large wireless carriers – including ALLTEL, AT&T Mobility, Nextel, Sprint PCS, T-Mobile USA, Verizon Wireless and Western Wireless – are all par-ticipating in the Code. Small and rural carriers across the country have committed their support, as well. Additional carriers will also begin implementation in the coming months. The Consumer Code is voluntary. - Will Each Company Implement All 10 Points?
Every wireless carrier that signs the voluntary Consumer Code is committing to all 10 points. Only by adhering to all 10 points is a company entitled to display the Seal. The Seal of Wireless Quality/Consumer Information will remain consistent across company Web sites and collateral materials, as a sign that the wireless carrier has integrated all 10 points of the Consumer Code. A carrier’s partic-ipation in the Code is not required as a part of CTIA membership. - Why is a 'Voluntary' Code Better for Consumers than Government Regulation?
The wireless industry is different from traditional telecommunications services because of its high level of competition. In a monopoly environment the government substitutes for the lack of competition. In a competitive environment competition is a less costly, and less enhancement-inhibiting governor. The wireless industry Code is designed to give consumers information, while still permitting the innovation that consumers have come to expect from wireless services. Regulators simply cannot be as flexible, responsive and cost-controlling as a self-regulatory Code. - Who Will Enforce the Voluntary Consumer Code?
Wireless carriers will have to annually re-certify that they are in compliance with the Code. Those not in compliance will not be permitted to display the Seal of Wireless Quality/Consumer Information. One of the benefits of competition is that each carrier's competitors will be watching other companies’ compliance and will respond accordingly. - Is the Industry Adopting this Consumer Code because of Increased Consumer Complaints?
While the wireless industry has experienced fantastic growth in recent years, per capita wireless com-plaints have fallen or held steady. The data shows that the wireless industry receives fewer complaints than the more regulated wireline industry. - When will Consumers Start to See the Results of these Changes?
The wireless carriers that today announced their participation in the voluntary Consumer Code have already begun to implement the consumer points. Examples are included in the Media Kit, and distrib-uted at today’s announcement event. Each carrier can highlight different aspects of the Code, and incorporate the Seal of Wireless Quality/Consumer Information into its own marketing and advertising once all 10 points of the Code are in place. Larger, systemic changes, such as printed collateral materials, will be phased in throughout the fall. - Will the Consumer Code Make the Wireless Industry more Competitive?
The Code is designed to assist consumers in making informed choices when shopping for wireless serv-ices, and in understanding their wireless service and rate plans. The wireless industry is already hyper-competitive, by far the most competitive sector of telecommunications. About 98% of Americans can choose among 3 or more wireless carriers and 83% can choose from at least 5 or more carriers in their market. The result has been lower prices for consumers. Research shows that wireless prices have fall-en more than 80% in the last 8 years.
