*Pages 1--19 from Microsoft Word - 26259.doc* NEWS Federal Communications Commission 445 12 th Street, S. W. Washington, D. C. 20554 This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action. See MCI v. FCC. 515 F 2d 385 (D. C. Circ 1974). News Media Information 202 / 418- 0500 Internet: http:// www. fcc. gov TTY: 1- 888- 835- 5322 For Immediate Release: News Media Contact: March 27, 2003 Rosemary Kimball at (202) 418- 0511 e- mail: rkimball@ fcc. gov QUARTERLY REPORT ON INFORMAL CONSUMER INQUIRIES AND COMPLAINTS RELEASED Washington, DC – The Commission has released the report on the inquiries and complaints processed by the Consumer & Governmental Affairs Bureau (CGB) during the fourth quarter of calendar year 2002. Complaint activity within the top categories increased during the fourth quarter, mirroring an increase in complaint activity overall. Most of the increase occurred within Wireline Telecommunications, where complaint activity was 26.3% higher than during the third quarter. A 65.1% rise in Telephone Consumer Protection Act (TCPA) complaints and a 33.7% increase in Cramming complaints led Wireline complaints higher. Wireless Telecommunications complaints decreased by 5.7%, due largely to a 27.7% drop in Service Quality complaints. Service Quality complaints decreased from 591 in the third quarter of 2002, to 427 in this quarter. Service Quality complaints represent slightly more than 10 percent of the total number of wireless complaints. Early Termination and Equipment complaints, both of which fell slightly less than 12%, also figured prominently in the decline in Wireless complaints. Radio and Television Broadcasting complaints fell 34.6%, but this outcome was distorted by a one- time mail- in campaign that inflated Disability complaint counts during the third quarter. Indecency and Obscenity complaints, on the other hand, rose 36.6%. Cable Services complaints more than tripled on low volume as Billing and Rates complaints more than quadrupled. The Commission receives many informal complaints that do not involve violations of the Communications Act, or a rule or order of the Commission. The existence of a complaint does not necessarily indicate wrongdoing by the company at issue. - FCC - CGB contact: Warren O’Hearn at (202) 418- 2230. 1 REPORT ON INFORMAL CONSUMER INQUIRIES AND COMPLAINTS 4th Quarter Calendar Year 2002 Executive Summary This report tracks consumer inquiries and complaints processed by the Consumer & Governmental Affairs Bureau (CGB) during the fourth quarter of calendar year 2002. Inquiries are defined as correspondence or communications received at the Commission from individuals seeking information on matters under the FCC’s jurisdiction. Informal consumer complaints are defined as a communication received at CGB’s consumer centers either via postal mail, fax, email or telephone from or on behalf of an individual that: (i) identifies a particular entity under the FCC’s jurisdiction; (ii) alleges harm or injury; and (iii) seeks relief. Complaint activity within the top categories increased during the fourth quarter, mirroring an increase in complaint activity overall. Most of the increase occurred within Wireline Telecommunications, where complaint activity was 26.3% higher than during the third quarter. A 65.1% rise in Telephone Consumer Protection Act (TCPA) complaints and a 33.7% increase in Cramming complaints led Wireline complaints higher. Wireless Telecommunications complaints decreased by 5.7%, due largely to a 27.7% drop in Service Quality complaints. Service Quality complaints decreased from 591 in the third quarter of 2002, to 427 in this quarter. Service Quality complaints represent slightly more than 10 percent of the total number of wireless complaints. Early Termination and Equipment complaints, both of which fell slightly less than 12%, also figured prominently in the decline in Wireless complaints. Radio and Television Broadcasting complaints fell 34.6%, but this outcome was distorted by a one- time mail- in campaign that inflated Disability complaint counts during the third quarter. Indecency and Obscenity complaints, on the other hand, rose 36.6%. Cable Services complaints more than tripled on low volume as Billing and Rates complaints more than quadrupled. Meanwhile, inquiry activity within the top categories was slightly changed during the fourth quarter. The lone exception was Wireline inquiries, which fell 9.4%. Inquiries relating to Wireline Billing and Rates were down 25.6%, and Slamming inquiries were lower by 9.1%. However, TCPA inquiries were 8.2% higher, tracking the upward move of TCPA complaints. Radio and Television Broadcasting inquiries were 2.1% lower overall and, except for Madalyn M. O’Hair Broadcast Rumor inquiries (down 39.7%), exhibited no meaningful movement. Cable Services inquiries declined by 4.4% due to decreases in Service- Related (16.2%) and Over- the- Air Reception Device (16.0%) inquiries. Cable Programming inquiries offset these declines, rising 39.6%. Wireless inquiries edged 1.9% higher, with a 58.2% rise in General Mobile Radio Service License inquiries. 2 The Commission receives many informal complaints that do not involve violations of the Communications Act, or a rule or order of the Commission. The existence of a complaint does not necessarily indicate wrongdoing by the company at issue. 3 Top Consumer Issues – Subject Category Reference Guide CABLE SERVICES Billing & Rates: Complaints/ inquiries concerning billing matters and the rates charged for cable programming service (or expanded basic) tier on a cable system Cable Modem Service: Complaints/ inquiries concerning cable modem broadband service Connections to Cable Systems: Complaints/ inquiries regarding availability or quality of connections to cable systems. Disability Issues: Complaints/ Inquiries regarding video description, closed captioning, and emergency access to video programming. Over- The- Air- Reception- Devices (OTARD) Issues: Complaints/ inquiries regarding the installation, maintenance or use of antennas -- including direct- to- home satellite dishes that are less than one meter (39.37") in diameter (or of any size in Alaska), TV antennas, and wireless cable antennas -- to receive video programming Programming Issues: Complaints/ inquiries regarding program content or the choice of channels or programs available to subscribers. Satellite Home Viewer Improvement Act (SHVIA) Issues: Complaints/ inquiries concerning satellite carriers’ provision of television broadcast (including distant or national) programming to subscribers. Service Related Issues: Complaints/ inquiries about the quality of service provided by cable operators. RADIO & TELEVISION BROADCASTING General Broadcast Information: Inquiries regarding general broadcast requirements, licenses, and community obligations. Disability Issues: Complaints/ Inquiries regarding video description, closed captioning, and emergency access to video programming. How to Start Broadcast Station: Inquiries regarding starting a broadcast station. Low Power Broadcast Issues: Inquiries regarding low power TV and low power radio 4 October November December Quarter Total 28 6 18 52 6 3 615 4 2 410 9 8 320 21 22 16 59 68 41 47 156 October November December Quarter Total 15 16 4 35 34 9 14 57 39 41 17 97 4 0 0 4 30 15 15 60 122 81 50 253 October November December Quarter Total 1,163 678 757 2,598 190 98 89 377 228 141 122 491 71 55 40 166 178 125 124 427 1,830 1,097 1,132 4,059 October November December Quarter Total 2,087 1,317 1,449 4,853 322 203 216 741 480 300 347 1,127 878 507 510 1,895 1,197 903 909 3,009 4,964 3,230 3,431 11,625 NOTES: (1) See attachment for brief description of subject categories. not necessarily indicative of corresponding state or local trends. complaint counts this quarter. Connections to Cable TV System program, and the Enforcement Bureau has accounted for these correspondences as one consolidated complaint in its Billing & Rates Carrier Marketing & Advertising as complaints received separately by EB. The Commission received at least 6, 900 correspondences regarding one specific * A complaint is defined as a communication received at CGB's consumer centers either via letter, fax, email or telephone from or on behalf of an individual that: (i) identifies a particular entity under the FCC's jurisdiction; (ii) alleges harm or or injury; and (iii) seeks relief. The FCC receives many complaints that do not involve violations of the Communications Act or a FCC rule or order. The existence of a complaint does not necessarily indicate wrongdoing by the company involved. Bureau (EB) for appropriate handling. The numbers reported in this category include complaints forwarded to EB as well ** Complaints regarding alleged indecency/ obscenity during specific broadcasts are forwarded to the Enforcement Totals Cramming Slamming Telephone Consumer Protection Act Wireless Telecommunications Cable Modem Service Wireline Telecommunications Carrier Marketing & Advertising Service Quality Totals Equipment Contract - Early Termination Totals Cable Services Billing & Rates Disability Issues Other Programming Issues Programming - Religious Radio & Television Broadcasting The data within this report account for statistics at the national level as reported to the Commission, and therefore are Programming -Indecency/ Obscenity** Programming - General Criticism Summary of Top Consumer Complaint* Subjects Processed by the FCC's Consumer & Governmental Affairs Bureau (CGB) Fourth Quarter - Calendar Year 2002 Service Related Issues Totals Disability Issues Billing & Rates 10 Consumer & Governmental Affairs Bureau Top Cable Service Consumer Complaints Fourth Quarter - Calendar Year 2002 0 5 10 15 20 25 30 N u m b e r o f C o m p l a i n t s Billing & Rates 28 6 18 Connections to Cable TV System 4 2 4 Disability Issues 9 8 3 Cable Modem Service 6 3 6 Service Related Issues 21 22 16 October November December 11 Consumer & Governmental Affairs Bureau Top Radio & Television Broadcasting Consumer Complaints Fourth Quarter - Calendar Year 2002 0 5 10 15 20 25 30 35 40 45 50 N u m b e r o f C o m p l a i n t s Disability Issues 15 16 4 Programming - General Criticism 34 9 14 Programming -Indecency/ Obscenity** 39 41 17 Programming - Religious 4 00 Other Programming Issues 30 15 15 October November December 12 Consumer & Governmental Affairs Bureau Top Wireless Telecommunications Consumer Complaints Fourth Quarter - Calendar Year 2002 0 200 400 600 800 1, 000 1, 200 1, 400 N u m b e r o f C o m p l a i n t s Billing & Rates 1,163 678 757 Carrier Marketing & Advertising 190 98 89 Contract - Early Termination 228 141 122 Equipment 71 55 40 Service Quality 178 125 124 October November December 13 Consumer & Governmental Affairs Bureau Top Wireline Telecommunications Consumer Complaints Fourth Quarter - Calendar Year 2002 0 200 400 600 800 1,000 1,200 N u m b e r o f C o m p l a i n t s Billing & Rates 2,087 1, 317 1,449 Carrier Marketing & Advertising 322 203 216 Cramming 480 300 347 Slamming 878 507 510 Telephone Consumer Protection Act 1,197 903 909 October November December 14 October November December Quarter Total 421 351 243 1, 015 236 211 205 652 176 181 111 468 337 252 221 810 Service- Related Issues 545 414 450 1, 409 1,715 1, 409 1,230 4, 354 October November December Quarter Total General Broadcast Information 323 234 191 748 How to Start Broadcast Station 265 228 199 692 Low Power Broadcast Information 303 249 155 707 Madalyn M. O'Hair Religious Broadcast Rumor 69 56 54 179 680 640 466 1, 786 1,640 1, 407 1,065 4, 112 October November December Quarter Total 846 723 765 2, 334 991 1, 096 1,339 3, 426 2,097 2, 116 2,026 6, 239 521 565 1,065 2, 151 341 378 354 1, 073 4,796 4, 878 5,549 15,223 October November December Quarter Total 2,668 2, 181 1,781 6, 630 113 113 135 361 5,132 4, 610 4,265 14,007 10, 339 9,385 9,488 29,212 2,139 2, 008 2,235 6, 382 20, 391 18, 297 17, 904 56, 592 NOTES: * An inquiry is defined as a correspondence received at CGB's consumer centers either via letter, fax, email or telephone from individuals seeking information on matters under the FCC's jurisdiction. The data within this report account for statistics at the national level as reported to the Commission, and therefore are not necessarily indicative of corresponding state or local trends. Cable Services Totals Programming Issues Over the Air Reception Device Issues Radio & Television Broadcasting Totals Wireline Telecommunications Telephone Consumer Protection Act Slamming Cramming Digital Subscriber Line Billing & Rates Billing & Rates Electrical Interference General Mobile Radio Service License Land Mobile License Summary of Top Consumer Inquiry* Subjects Processed by the FCC's Consumer & Governmental Affairs Bureau (CGB) Fourth Quarter - Calendar Year 2002 Amateur License Wireless Telecommunications Totals General Programming & Content Totals Satellite Home Viewer Improvement Act Rates 15 Consumer & Governmental Affairs Bureau Top Cable Service Consumer Inquiries Fourth Quarter - Calendar Year 2002 0 50 100 150 200 250 300 350 400 450 500 N u m b e r o f I n q u i r i e s Over the Air Reception Device Issues 421 351 243 Programming Issues 236 211 205 Billing & Rates 176 181 111 Satellite Home Viewer Improvement Act 337 252 221 Service- Related Issues 545 414 450 October November December 16 Consumer & Governmental Affairs Bureau Top Radio & Television Broadcasting Inquiries Fourth Quarter - Calendar Year 2002 0 100 200 300 400 500 600 700 800 N u m b e r o f I n q u i r i e s General Broadcast Information 323 234 191 How to Start Broadcast Station 265 228 199 Low Power Broadcast Information 303 249 155 Madalyn M. O'Hair Religious Broadcast Rumor 69 56 54 General Programming & Content 680 640 466 October November December 17 Consumer & Governmental Affairs Bureau Top Wireless Telecommunications Consumer Inquiries Fourth Quarter - Calendar Year 2002 0 150 300 450 600 750 900 1,050 1,200 1,350 1,500 1,650 1,800 1,950 2,100 2,250 N u m b e r o f I n q u i r i e s Amateur License 846 723 765 Billing & Rates 991 1, 096 1,339 Electrical Interference 2, 097 2, 116 2,026 General Mobile Radio Service License 521 565 1,065 Land Mobile License 341 378 354 October November December 18 Consumer & Governmental Affairs Bureau Top WirelineTelecommunications Consumer Inquiries Fourth Quarter - Calendar Year 2002 0 2,000 4,000 6,000 8,000 10,000 12,000 N u m b e r o f I n q u i r i e s Billing & Rates 2,668 2, 181 1,781 Digital Subscriber Line 113 113 135 Cramming 5,132 4, 610 4,265 Slamming 10, 339 9, 385 9, 488 Telephone Consumer Protection Act 2,139 2, 008 2,235 October November December 19