LEGISLATIVE BRIEFING
Wireless Industry in Pennsylvania

CONSUMER AFFAIRS COMMITTEE

Pennsylvania House of Representatives

Representative Joseph Preston, Jr., Democratic Chairman
Prepared by Tim Scott

February 4, 2009


Summary

Today's mobile wireless devices are essentially more computer than telephone with the ability to offer text messages, games, access to the internet and even video. The industry has shown tremendous growth nationally. From 2000 to 2006, lines were added at an annual growth rate of more than 15% per year, according to an FCC report. According the FCC, as of June 2007 there over 9 million cell phone customers in Pennsylvania or 74% of the population owns some sort of wireless communications device. In the United States, the two largest wireless carriers are Verizon and AT&T.

Wireless Regulation

The Telecommunications Act of 1996 created a unique jurisdictional allocation for wireless carriers. States were restricted from regulating wireless rates or entry of wireless carriers into the market. States retained the ability to regulate terms of service and consumer protection. The Pennsylvania PUC exempts wireless communications and cell phone service from the definition of "public utility", thus giving the Commonwealth little oversight over these services.

Hot Topics

Gaps (no signal, dropped calls) in cell phone service for major cell phone providers in Pa.
Contract terms and early fees.


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