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Mobile phone company rejects proposed changes

Arizona Capitol Reports Staff//December 7, 2007//[read_meter]

Mobile phone company rejects proposed changes

Arizona Capitol Reports Staff//December 7, 2007//[read_meter]

One company has said it would not support a proposal to create a “cell phone bill of rights,” whose provisions likely mean consumers could walk away from a contract without penalty if their service providers violate any terms of the contract.
Sen. Jim Waring, R-7, said T-Mobile representatives told him “flat out” in a meeting recently they would not be supporting his bill, S1010.
The Arizona Capitol Times was unable to reach T-Mobile lobbyists.
Other companies have yet to decide what position to take on the measure, according to Susan Bitter Smith, an industry lobbyist.
“They are all kind of pulling the bill apart and trying to figure out what the implications are,” Bitter Smith said. It could be weeks away from knowing how they would act, she said.
Waring said he is not optimistic the cell phone industry would support him. They killed a similar measure last session, he said.
“I think they were sort of telling me that they are going to spend lots of time and money and effort trying to kill the bill, and I think I was saying I sort of like my bill the way it is,” Waring said, referring to his meeting with T-Mobile. He said company representatives also left him with the impression that there wasn’t a whole lot of room for compromise.
“I expect, with all the lobbyists’ attention and all the lobbyists’ firepower, it will be a tough fight for me. But we have been here before,” he said.
Waring said ever since his proposal became public, he has been receiving numerous e-mails from residents encouraging him to pursue the legislation.
One argument raised against his proposal, Waring said, is that it would change dynamics and “that’s bad for business.” Another one is that prices would go up, he said. Waring said the arguments “did not seem that compelling” to him.
He said in 2004, three major carriers already made agreements with attorneys general in 32 states that changed the way they did business. For example, the agreements gave customers two weeks to terminate contracts without penalties. Several issues in the agreements are covered in his bill, Waring said.
S1010 would be the second bill in two years targeting practices by service carriers. Waring would also be the second state legislator this year to complain about how he was treated by cell phone companies. The senator said his cell phone stopped working, and when he brought it to a service center, he was told it had water damage. What further irked him was that he was told he could get a new phone if he signed up for another two years, he said.
He said he had heard similar stories from other people, prompting him to file the bill.
The legislation would limit contracts to no more than 12 months. It would permit subscribers to cancel their contract for any reason within the first month without any penalty. It would also permit subscribers to terminate services without any penalty if the provider changes rates or terms of service and the changes will result in a “material, adverse change for the subscriber.”
Additionally, it would prohibit a service provider from requiring a contract extension to get a replacement phone under warranty. All replacement phones would have to be new.  Also under the bill, a subscriber would not have to pay for charges if the phone were stolen and if the subscriber promptly reported the theft to the provider.

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