Because of the nature of radio transmission, the amount of radiofrequency  spectrum allocated by FCC for mobile phone service, and the challenge of  building the infrastructure to meet a rapidly growing consumer base,  consumers are not always able to complete their phone calls or to hear  them clearly. FCC has acted to implement this regulatory framework and  is relying on consumer choice in a competitive marketplace to determine  the level of call quality, rather than setting a minimum standard for the  industry to meet. However,  FCC has not included call quality, beyond a discussion of the number of  carriers providing service, in its annual analysis of whether or not there is  effective competition in mobile phone services. Fully assessing the extent  of call quality problems would likely require network performance data  from the carriers as well as information on the extent to which consumers  are satisfied or dissatisfied with the call quality of their mobile phone  service. Our Survey on Call Quality Yielded Mixed Results

To obtain information about the extent to which consumers are concerned  about various aspects of mobile phone call quality, we included questions  on call quality in a national telephone survey of adults conducted in  November 2002. As  shown in the last column of table 2, we estimate that about one-fifth of  customers were not able to get through on 10 percent or more of their calls  because the cell from which they were calling was at capacity, and about  one-third of customers could not complete 10 percent or more of their calls  because they were in a cell where their carrier did not provide service. Interested Parties Have Suggested Actions for Improving Call Quality

Interested parties, such as state officials and consumer advocates, who  have raised concerns about mobile phone call quality have also suggested  actions—such as local number portability or mandating that certain  information be provided to consumers—that might lead indirectly to  changes in call quality by making the market more competitive or providing  consumers with better information. This would likely raise costs for these  carriers. Carriers Say They Are Taking Actions to Improve Call Quality

The national carriers we spoke with said that they recognize that call  quality is important to consumers and that they are taking actions to  improve call quality. Conclusions

As Americans have come to rely more on mobile phones to meet their  business and personal needs, it is important that FCC evaluate whether  competition is adequate to ensure that mobile phone consumers are  receiving the level of call quality they desire and expect.
Why GAO Did This Study

Over the past decade, Americans have come to rely increasingly on mobile phones to meet their business and personal needs. However, because of the nature of radio transmission and other constraints, consumers are not always able to complete calls or to hear their calls clearly. As reliance on mobile phones has increased, state officials, consumer groups, the media, and others have raised concerns about the extent of call quality problems. With regard to call quality, GAO agreed to describe the regulatory framework; determine the extent to which consumers are experiencing problems; and discuss actions for improving call quality suggested by interested parties.

What GAO Found

In establishing a regulatory framework for mobile phone services, the Congress directed the Federal Communications Commission (FCC) to encourage competition among carriers. FCC believes that competition enables consumers to choose carriers that offer a desired level of call quality and that regulatory action establishing a minimum level of call quality would not be beneficial in a competitive environment. The Congress requires FCC to report annually on whether or not there is effective competition in mobile phone services. While call quality has been identified as a factor that affects consumers' choices of a carrier, FCC does not discuss call quality in this report. To assess the extent to which consumers are experiencing call quality problems--such as blocked or dropped calls, insufficient capacity, dead spots, or lack of coverage--we included questions on a national survey of adult consumers, conducted in November 2002. Our survey indicated that about four-fifths of adult mobile phone users were satisfied with their service, about one-tenth were dissatisfied, and the remainder indifferent. However, we also found that consumers are experiencing some call quality problems. For example, we estimate that about one-fifth of users were unable to successfully complete 10 percent or more of their calls, because their mobile phone network dropped the calls. Only limited information on call quality problems is available to the public or FCC. Interested parties have proposed actions that could provide consumers with better information to help them choose a carrier that matches their needs or would set industry-wide call quality standards for all consumers. However, some of the suggested actions could drive up the price of service, limit the entry of new carriers, or lead to a reduction of service in regions that are technically difficult or costly to serve. The carriers themselves say that they are taking actions to improve call quality and further regulation is not needed.