AMY KLOBUCHAR
MINNESOTA
COMMITTEES:
AGRICULTURE, NUTRITION,
AND FORESTRY
COMMERCE, SCIENCE,
AND TRANSPORTATION
ENVIRONMENT AND PUBLIC WORKS
JOINT ECONOMIC COMMIITEE
JUDICIARY
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WASHINGTON, DC 20510
May 14,2010
Julius Genachowski
Chainnan
Federal Communications Commission
445 12th Street, SW
Washington, DC 20554
Dear Chainnan Genachowski:
This week, the new FCC Consumer Task Force announced its first initiative to help
consumers manage their cell phone bills. We have all heard from cell phone users who have been
shocked by an unexpectedly high bill. Your proposal to require wireless phone providers to send text
message alerts to warn customers when they incur unanticipated charges is a reasonable solution to
this widespread consumer complaint. Just like your car gives you a warning when you are running
low on gas, your cell phone should give you a warning when you are low on minutes or you have
unknowingly racked up data or roaming fees.
This so-called "bill shock" concern is just one aspect ofthe broader problem ofconfusing
billing practices and poorly outlined tenns in cell phone contracts. A similar issue deals with cell
phone providers charging outrageous Early Tennination Fees (ETFs) to subscribers who end their
contmcts early. These fees bear little to no relationship to the cost ofthe device and are little more
than anti-consumer, anti-competitive attempts to compel customer loyalty through contracts, rather
than earning it through honest, reliable service. That is why I introduced the Cell Phone Early
Tennination Fee Transparency and Fairness Act of2009, a bill to link a provider's ETF to the
discount received by the consumer. It would also require wireless companies to pro-rate their ETFs
down to zero over the life ofthe contract.
After I introduced this legislation, the FCC Consumer Task Force commenced an
investigation into the ETF practices ofcell phone providers. In this challenging economy, the last
thing consumers need is unexpected charges in their cell phone bills. I remain concerned that ETFs,
at any price, are designed to prevent choice, limit competition and unfairly tie consumers to
unsatisfactory contracts, and I urge you to carefully examine the contracts for each company. I look
forward to the results ofthe FCC's investigation and hope to continue working with the FCC in
advocating for common sense, pro-consumer refonns ofthe wireless industry.
p;cerel
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U.S. Senator