krug3r
07-06-2003, 22:08
[SOURCE Reuters]
Mobile-phone customers may be able to switch carriers without losing their phone numbers as early as November after an appeals court rejected an industry challenge on Friday.
A three-judge panel upheld the Federal Communications Commission's long-delayed rule forcing wireless telephone companies to let cell-phone customers keep their phone numbers when they switch carriers.
The U.S. Court of Appeals for the District of Columbia turned back arguments by Verizon Wireless and the cell-phone industry's trade group that the rule was unnecessary, arbitrary and capricious.
The FCC said last year that the rule was needed because companies would not likely offer the option on their own, locking in consumers who are dissatisfied with their service but do not want to change their phone number.
The judges concluded that the wireless companies had filed their challenge too late, and they dismissed the industry's contention that the agency had misinterpreted what the law deems "necessary" to protect consumers.
The judges said the argument amounted to "dueling over dictionary definitions," which it called "pointless."
"The simple truth is that having to change phone numbers presents a barrier to switching carriers, even if not a total barrier, since consumers cannot compare and choose between various service plans and options as efficiently," the judges said in their opinion.
ASSOCIATION DISAPPOINTED
The Cellular Telecommunications and Internet Association, which filed the challenge, said in a statement it was disappointed with the decision and said the FCC must explain in detail how portability can be accomplished.
"If there is to be number portability in November, the FCC must announce final rules by Labor Day or consumers will find chaos in the market," CTIA President Tom Wheeler said.
FCC officials were not available for comment.
Land-line carriers must already offer number portability to those customers who want to switch providers. After several delays the FCC ordered the wireless carriers to offer the option to consumers by Nov. 24 in order to boost competition.
About 30 percent of the 144.5 million wireless subscribers in the United States change carriers annually, lured by plunging rates and promises of better service.
Verizon Wireless, a joint venture of Verizon Communications VZ.N and Vodafone Group Plc VOD.L , said it would be forced to divert resources away from network upgrades and other service improvements in order to meet the deadline, and said it might ask Congress to step in.
At least one lawmaker praised the decision.
"It's time for the cell phone industry to step up to the plate and get portability implemented quickly," said Sen. Charles Schumer, a New York Democrat.
Mobile-phone customers may be able to switch carriers without losing their phone numbers as early as November after an appeals court rejected an industry challenge on Friday.
A three-judge panel upheld the Federal Communications Commission's long-delayed rule forcing wireless telephone companies to let cell-phone customers keep their phone numbers when they switch carriers.
The U.S. Court of Appeals for the District of Columbia turned back arguments by Verizon Wireless and the cell-phone industry's trade group that the rule was unnecessary, arbitrary and capricious.
The FCC said last year that the rule was needed because companies would not likely offer the option on their own, locking in consumers who are dissatisfied with their service but do not want to change their phone number.
The judges concluded that the wireless companies had filed their challenge too late, and they dismissed the industry's contention that the agency had misinterpreted what the law deems "necessary" to protect consumers.
The judges said the argument amounted to "dueling over dictionary definitions," which it called "pointless."
"The simple truth is that having to change phone numbers presents a barrier to switching carriers, even if not a total barrier, since consumers cannot compare and choose between various service plans and options as efficiently," the judges said in their opinion.
ASSOCIATION DISAPPOINTED
The Cellular Telecommunications and Internet Association, which filed the challenge, said in a statement it was disappointed with the decision and said the FCC must explain in detail how portability can be accomplished.
"If there is to be number portability in November, the FCC must announce final rules by Labor Day or consumers will find chaos in the market," CTIA President Tom Wheeler said.
FCC officials were not available for comment.
Land-line carriers must already offer number portability to those customers who want to switch providers. After several delays the FCC ordered the wireless carriers to offer the option to consumers by Nov. 24 in order to boost competition.
About 30 percent of the 144.5 million wireless subscribers in the United States change carriers annually, lured by plunging rates and promises of better service.
Verizon Wireless, a joint venture of Verizon Communications VZ.N and Vodafone Group Plc VOD.L , said it would be forced to divert resources away from network upgrades and other service improvements in order to meet the deadline, and said it might ask Congress to step in.
At least one lawmaker praised the decision.
"It's time for the cell phone industry to step up to the plate and get portability implemented quickly," said Sen. Charles Schumer, a New York Democrat.