Genachowski Touts 'Bill Shock' Proposal

At a center for American progress event, Federal Communications Commission Chairman Julius Genachowski said, "Companies should compete on value, price, and service, not consumer confusion. "Cell phone bills have proven to be a fertile ground for 'mystery fees.'"

Anticipating potential pushback from some companies, Genachowski argued that his proposal is both pro-consumer and pro-business because more transparency will help highlight those companies offering the best products at the best prices. Center for American Progress Executive Vice President Sarah Rosen Wartell echoed this claim, saying it's a "good way to keep consumers happy, not an expensive regulatory mandate." The wireless phone industry's main trade group CTIA, however, took issue with such claims. "We are concerned that prescriptive and costly rules that limit the creative offerings and competitive nature of the industry may threaten to offset" positive trends in customer satisfaction, Chris Guttman-McCabe, CTIA's vice president of regulatory affairs, said. "We agree with the FCC that the goal is to keep all customers happy." Chairman Genachowski also mentioned consumer concern over early termination fees, which wireless firms impose on customers who break their wireless contracts early. The FCC has been examining the issue, but Genachowski did not say whether the commission would take any action to address concerns about ETFs.