Verizon Wireless Says Oops

[Commentary] The big phone companies have been campaigning to convince Congress that attempts by the Federal Communications Commission to regulate Internet access like it regulates phones are a costly intrusion that will slow online investment and hamstring progress. And then — oops! — one of the big phone companies reminds us why they should not be allowed to discipline themselves.

Under pressure from the FCC, Verizon Wireless has now admitted that it incorrectly billed 15 million customers between $2 and $6, on average, for data services they didn't use. Apparently, Verizon's phones are built in such a way that it is easy for customers to accidentally press the button that opens a Web browser. If they don't have a data plan, that would immediately tag $1.99 to their bill, no matter how quickly the request is canceled. Verizon Wireless says it will pay current customers back for the charges by crediting their accounts and will send checks to former customers. It estimates that it owes $30 million to $90 million in restitution. Mistakes do happen. What's instructive about Verizon Wireless's behavior is that when customers called to complain about the problem, it often refused to reverse the charges. When the FCC officially approached the company in December, it denied there was a problem. The FCC opened a formal investigation in January. On Sunday, Verizon changed its tune. The lesson Congress should take from this incident is that the telecommunications networks are too vital to leave to industry self-regulation.