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Consumer Group Criticizes Cell 'Cramming'
by Chloe Albanesius
A consumer group on Wednesday filed two complaints with the California Public Utilities Commission against the wireless providers Sprint and Cingular for alleged "cramming" of cellular telephones.
The Utility Consumers' Action Network (UCAN) claims in its first filing that Sprint is sending marketing messages to customers who are then charged for the incoming text messages. UCAN claims that customers who complained were told they could not be put on a "do not spam" list to block such messages and instead were only given the option of blocking all text messages.
The group is calling on Sprint to stop sending unwanted text messages and to refund money to customers who were charged for receiving the company's marketing materials.
"Cell-phone customers should not be charged for ads sent to their phones by the carriers themselves, let alone any other advertiser," said Michael Shames, UCAN's executive director. "Regulators need to stop this new rip-off in its tracks."
In the Cingular complaint, UCAN accuses the company of breaking state law by refusing to remove charges or investigate unwanted text messages sent by other companies. When Cingular customers complained about unsolicited ring tones or comedy messages sent to their phones, Cingular referred them to the senders of the messages.
UCAN said that violates a California law that requires Cingular to immediately remove questionable charges and investigate senders itself. The group also accuses the state commission of not enforcing the law and requests that it force Cingular to adhere to the statute. "It's time for the regulatory agency charged with protecting telephone customers to do the job for which state taxpayers spend some $1.2 billion annually," Shames said.
Both companies told The Wall Street Journal that they had not seen the complaints and could not comment further at this point.
Prosecutor Wears Ankle Bracelet To Tout Bill
Alabama's attorney general on Monday was outfitted with an ankle bracelet that uses a global positioning system (GPS) to monitor his whereabouts in an effort to bring attention to sex-offender legislation he is pushing.
Troy King, a Republican, slammed Alabama's current system as "almost worse than nothing" and encouraged lawmakers to pass the bill during the state's ongoing special session. The measure calls for GPS tracking of convicted sex offenders and tougher penalties for them.
Parents incorrectly assume that "convicted sex offenders who do not follow the law will be caught and sternly punished," he said Monday. "I am sorry to say that nothing could be further from the truth."
The bill, to be introduced by state Sen. Hinton Mitchem, would require the electronic monitoring of sex offenders who are on probation, parole and pre-trial release. Those offenders would have to cover the costs of the devices.
The legislature's special session, which began Tuesday, is primarily intended to pass the state's budget, but Gov. Bob Riley on Friday announced that he would allow additional measures, including the sex-offender bill. "Alabama's parents can be assured that our state will have one of the strongest laws in the nation protecting their children from sexual predators," the Republican governor said in a statement.
In other news, Connecticut Gov. M. Jodi Rell this week announced plans for a sex-offender package that would include GPS monitoring and that would require offenders to pay the $10 to $15 per day for the service.
Report: State, Local Telecom Spending On The Rise
State and local government spending on telecommunications is expected to jump 70 percent by fiscal 2010, according to a study released Wednesday by the Input research firm.
In the next five years, spending likely will jump from the $9.6 billion to $16.4 billion, according to the report. Much of that will be focused on homeland security efforts like interoperable communications systems that can "talk" to each other.
Input points specifically to the Homeland Security Department's data network. While it aims to provide a central network for information sharing among federal, state and local governments, a report from the agency's inspector general recently said the department has not been able to adequately protect the database's information or sign on all eligible agencies.
As a result, Input expects increased spending to improve the system and to reach out to targeted state and local authorities.
Localities have been hampered by jurisdictional issues and the availability of new technologies, the report also said. As standards for emerging technologies develop, however, Input expects more federal grants to be used for interoperable communications.
"In addition to increased contract opportunities and grant programs we expect to see supporting communications initiatives, we're also seeing some attrition among traditional telecommunication service providers due to mergers and acquisitions," said James Krouse, Input's manager for state and local market analysis. "All of these factors are allowing new vendors with competing technologies to enter the same market segment, resulting in healthy pricing and service-level competition."
Emerging technologies like Internet telephony or Wi-Fi wireless technology are somewhat of a double-edged sword, Krouse said. "State governments are in a position to make large investments in these leading-edge technologies in order to accomplish their mission but will later suffer substantial tax losses because of it," he said.
Drug Program Expands To Australia, New Zealand
The multi-state I-SaveRx program for importing prescription drugs this week announced that it will expand the number of countries from which it purchases drugs to include Australia and New Zealand.
The move comes weeks after the Canadian government announced plans to try and limit the exportation of Canadian drugs to the United States. I-SaveRx currently allows citizens in Illinois, Kansas, Missouri, Vermont and Wisconsin to purchase cheaper medicines from pharmacies in Canada, Ireland and the United Kingdom, but with the impending crackdown in Canada, the program has been forced to look elsewhere.
"As we build momentum, the drug companies and their allies are turning up the heat in Canada, [so] a sound importation program can't rely solely on Canada," said Illinois Gov. Rod Blagojevich, who spearheaded the program.
"This program helps give our citizens another safe, affordable option for their prescription medications at a time when the federal government has repeatedly refused to fight the drug companies," Wisconsin Gov. Jim Doyle said.
The move comes after a group called Illinois' Prescription Drug Advocates released a report that said drugs from Australia and New Zealand are safe. Participants will be able to buy medicines from those countries beginning in the fall.
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