Wireless Directory Hearing is Bad Timing for Carriers
A Senate hearing today (Tues.) comes at an awkward time for wireless carriers, with the CTIA getting ready to launch a limited liability corporation offering wireless carriers an option to list in a national directory. Wireless carriers initially hoped the hearing requested by Sen. Boxer (D-Cal.) would get delayed until next year. Wireless industry sources said congressional regulation of the list could hamper investment and participation in the system. Sources also said the hearing would be a chance for the wireless industry to educate the public about the service, which they said has been mischaracterized by detractors.
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“The timing here is difficult for CTIA because they have to come into the hearing without a complete proposal,” said a carrier source: “They would just as soon have had a hearing after they have a completed plan, but politics got in the way.” CTIA is expected to launch its LLC in early 2005. The Senate Commerce Committee hearing scheduled for today would examine the provisions of S-1963, introduced by Sen. Specter (R-Pa.). The bill would require carriers to give current subscribers the opportunity to opt-in and new subscribers the option to opt-out. Rep. Pitts (R-Pa.) has similar legislation in the House.
The timing of the hearing could help wireless carriers dispel misconceptions, said Kathleen Pierz of the Pierz Group, who studies public attitudes toward wireless 411 service and is to testify at the hearing. A survey Pierz released in Aug. found growing public acceptance of wireless directory assistance (DA), if consumer privacy is protected. The survey found at least 25% would opt in to the type of DA that CTIA plans.
“The CTIA does plan to launch its offering next year and Congress wanted to make sure that privacy protections are built in,” Pierz said Mon. “From a timing point of view, CTIA is very nearly done. In a way it’s good timing. There are some privacy protections built into their plan and the public isn’t aware of what is built in.”
Wireless sources said they worried that congressional attempts to regulate a wireless directory before it even developed could hamper its development. John Walls, CTIA vp-public affairs, said congressional regulation could not only slow the progress of the directory but the wireless industry as a whole. “Carriers could say ‘Let’s not sink the R and D funding into this,” Walls said.
Greg Keene, Chief Privacy Officer at QSent, agreed, saying the directory could evolve in many ways over the next few years. QSent aggregates data and has been hired by CTIA to help develop the list. QSent CEO Patrick Cox is to testify at the hearing. “There will be an evolutionary shift from where directories are now and where they will go,” Keene said. Future services could allow wireless consumers to set specific limitations on when they want to receive calls. For instance, Keene said consumers could prevent calls certain times of day or block calls from specific callers.
But Keene and Walls stressed that a wireless list would be more, not less, private than the directory services offered by the wireline phone companies, which charge consumers not to be listed. The service will be strictly opt-in and won’t charge consumers who choose not to have their number listed or change their minds and choose to have their numbers delisted, they said. Also, the directory won’t be published in any form, won’t be accessible over the Internet and won’t be sold to marketers, they said. Walls said consumers who still have concerns could register their wireless numbers with the FTC’s do-not-call list, though telemarketers are already prohibited by FCC rules from adding wireless numbers to automatic dialers.
Walls said the hearing would be an opportunity to show legislators how the wireless industry intends to operate the list. “Right now, there’s little difference between the legislation and our proposal,” Walls said, adding that CTIA’s objections to legislation was over concern about “the government telling us how to do our business.” The hearing is scheduled for 2:30 p.m. in room 253 Russell Bldg.