For  example, we estimate that 85 percent of wireless phone users are very or  somewhat satisfied with call quality, while the percentages of those very  or somewhat satisfied with billing, contract terms, carrier’s explanation of  key aspects of service at the point of sale, and customer service range  from about 70 to 76 percent. While we estimate that about three-fourths or more of wireless phone  service users are satisfied with specific aspects of their service, the  percentages of those very or somewhat dissatisfied range from about 9 to  14 percent, depending on the specific aspect of service. While the percentages of  dissatisfied users appear to be small, they represent millions of people  since, according to available estimates, the number of adult wireless  phone service users is over 189 million. Specifically, our survey results indicate the following:    Billing. Our analysis of FCC consumer complaint data also indicates that billing,  terms of the service contract, and customer service are areas where  wireless consumers have experienced problems in recent years. FCC Processes Wireless Consumer Complaints but Has Conducted Little Other Oversight of Services Provided by Wireless Phone Service Carriers

FCC processes tens of thousands of wireless consumer complaints each  year but has conducted little additional oversight of services provided by  wireless phone service carriers because the agency has focused on  promoting competition. The agency receives informal consumer  complaints and forwards them to carriers for response; however, our  consumer survey results suggest that most wireless consumers with  problems would not complain to FCC and many do not know where they  could complain. FCC has also not articulated goals and measures that  clearly identify the intended outcomes of its complaint-processing effort. We reported these survey results in  June 2009. Consequently, consumers with wireless service problems may be confused  about where to seek assistance and what kind of assistance to expect if  they do know they can complain to FCC. FCC has taken a number of actions to enforce its rules that apply to  wireless phone service carriers, but the agency has conducted no  enforcement of its truth-in-billing rules as they apply to wireless service. Lacking in-depth analysis of its consumer complaints, FCC may not be  aware of trends or emerging issues related to consumer problems, if  specific rules—such as the truth-in-billing rules—are being violated, or if  additional rules are needed to protect consumers. Representatives of state utility commissions and  other stakeholders we interviewed told us that states’ authority under  federal law to regulate wireless phone service is unclear, and this lack of  clarity has, in some cases, led to costly legal proceedings and some states’  reluctance to provide oversight. According to our  survey of state utility commissions, many state commissions do not have  authority to regulate wireless phone service, and most that do have  authority indicated that it is limited. Recommendations for Executive Action

We are making the following five recommendations to the Chairman of the  Federal Communications Commission:  To improve the effectiveness and accountability of FCC’s efforts to  oversee wireless phone service, direct the commission to  1.  clearly inform consumers that they may complain to FCC about  problems with wireless phone service and what they can expect as  potential outcomes from this process, and expand FCC’s outreach to  consumers about these efforts; 2.  develop goals and related measures for FCC’s informal complaint- handing efforts that clearly articulate intended outcomes and address  important dimensions of performance; and 3.  develop and implement policies and procedures for conducting  documented monitoring and analysis of consumer complaints in order  to help the agency identify trends and emerging issues and determine  whether carriers are complying with existing rules or whether new  rules may be needed to protect consumers. To better ensure a systemwide focus in providing oversight of wireless  phone service and improve FCC’s partnership with state agencies that also  oversee this service, direct the commission to  4.  develop and issue guidance delineating federal and state authority to  regulate wireless phone service, including pulling together prior  rulings on this issue; addressing the related open proceedings on truth- in-billing and early termination fees; and, if needed, seeking  appropriate statutory authority from Congress; and 5.  develop and implement policies and procedures for communicating  with states about wireless phone service oversight. Additionally we interviewed  individuals representing consumer organizations, state agencies, and the  industry to obtain their views on wireless phone service consumer  concerns and oversight efforts.
Why GAO Did This Study

Americans increasingly rely on wireless phones, with 35 percent of households now primarily or solely using them. Under federal law, the Federal Communications Commission (FCC) is responsible for fostering a competitive wireless marketplace while ensuring that consumers are protected from harm. States also have authority to oversee some aspects of service. As requested, this report discusses consumers' satisfaction and problems with wireless phone service and FCC's and state utility commissions' efforts to oversee this service. To conduct this work, Government Accountability Office (GAO) surveyed 1,143 adult wireless phone users from a nationally representative, randomly selected sample; surveyed all state utility commissions; and interviewed and analyzed documents obtained from FCC and stakeholders representing consumers, state agencies and officials, and the industry.

What GAO Found

Based on a GAO survey of adult wireless phone users, an estimated 84 percent of users are very or somewhat satisfied with their wireless phone service. Stakeholders GAO interviewed cited billing, terms of the service contract, carriers' explanation of their service at the point of sale, call quality, and customer service as key aspects of wireless phone service with which consumers have experienced problems in recent years. The survey results indicate that most users are very or somewhat satisfied with each of these key aspects of service, but that the percentages of those very or somewhat dissatisfied with these aspects range from about 9 to 14 percent. GAO's survey results and analysis of FCC complaint data also indicate that some wireless phone service consumers have experienced problems with billing, certain contract terms, and customer service. While the percentages of dissatisfied users appear small, given the widespread use of wireless phones, these percentages represent millions of consumers. FCC receives tens of thousands of wireless consumer complaints each year and forwards them to carriers for response, but has conducted little other oversight of services provided by wireless phone service carriers because the agency has focused on promoting competition. However, GAO's survey results suggest that most wireless consumers with problems would not complain to FCC and many do not know where they could complain. FCC also lacks goals and measures that clearly identify the intended outcomes of its complaint processing efforts. Consequently, FCC cannot demonstrate the effectiveness of its efforts to process complaints. Additionally, without knowing to complain to FCC or what outcome to expect if they do, consumers with problems may be confused about where to get help and about what kind of help is available. FCC monitors wireless consumer complaints, but such efforts are limited. Lacking in-depth analysis of its consumer complaints, FCC may not be aware of emerging trends in consumer problems, if specific rules are being violated, or if additional rules are needed to protect consumers. FCC has rules regarding billing, but has conducted no enforcement of these rules as they apply to wireless carriers. This August, FCC sought public comment about ways to better protect and inform wireless consumers. In response to GAO's survey, most state commissions reported receiving and processing wireless phone service consumer complaints; however, fewer than half reported having rules that apply to wireless phone service. Stakeholders said that states' authority to regulate wireless service under federal law is unclear, leading, in some cases, to costly legal proceedings and reluctance in some states to provide oversight. FCC has provided some guidance on this issue but has not fully resolved disagreement over states' authority to regulate billing line items and fees charged for terminating service early. State commissions surveyed indicated that communication with FCC about wireless phone service oversight is infrequent. As such, FCC is missing opportunities to partner with state agencies in providing effective oversight and to share information on wireless phone service consumer concerns.