20030320Hart Exhibits.pdf

BEFORE THE
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IDAHO PUBLIC UTILITIES C~Mt(1J~~)P~UC
uTILI! iES COI'H'1ISSION
IN THE MATTER OF THE APPLICATION
OF QWEST CORPORATION FOR
DEREGULATION OF BASIC LOCAL
EXCHANGE RATES IN ITS BOISE, NAMPA
CALDWELL, MERIDIAN , TWIN FALLS,
IDAHO FALLS , AND POCATELLO
EXCHANGES.
CASE NO. QWE-T -02-
EXHIBITS TESTIMONY OF WAYNE HART
IDAHO PUBLIC UTILITIES COMMISSION
MARCH 19 , 2003
ALLEGEDLY PROPRIETARY DATA
HAS BEEN DELETED FROM THIS DOCUMENT
Case No. QWE-02-
Exhibit No. 101 prepared and sponsored by Wayne Hart is
Proprietary and only available to those persons who have signed
Protective Agreements
Difference Between Owest and Wireless Service
Long Distance Comparison
Average Residential Customer, with 28 Average Business Customer with 117
Intralata and 36 Interstate Minutes Intralata and 151 Interstate minutes
Qwest Wireless Qwest Wireless
Monthly Monthly Monthly Monthly
Charqes Charqes Difference Charqes Charqes Difference
Edge Wireless $31.$165.$134.$71.$149.$78.
US Cellular $31.$159.$127.$71.$140.$68.
Sprint PCS $31.$100.$68.$71.$100.$28.
Verizon Wireless $31 .$154.$123.$71.$121.$50.
AT&T Wireless $31.$169.$137.$71.$149.$78.
T -Mobile $31.99.$68.$71.$99.$28.
Nextel $31 .89.$58.$71.$89.$18.
Cricket $31.39.$8.$71.$39.$31 . 17
ClearTalk
(Magic Valley)$31.39.$8.$71.$60.$10.
ClearTalk
(Eastern Idaho)$31 .$46.$15.$71.$67.$3.
For the long distance comparison, I used information from Qwest's report to the Administrator of the Idaho
Universal Service Fund (IUSF) and the May 22nd. 2002 Trends in Telephone Usage (Trends) published by the FCC
Industry Analysis and Technology Division. Using the data from Table 3.2 of the Trend's report, I divided the total
number ofIntrastate minutes from the IUSF report into residential and business customer classes. I then divided that
by the number of customers in each class to determine an average number of intrastate minutes for an average
residential and business customer. I then used the ratio of intrastate and interstate minutes from Table 11.2 of the
Trends report to determine an amount of interstate minutes. The intrastate and interstate minutes were added to the
peak local minutes from Exhibit 101 of the median flat rate customer for both residential and business customers.
For the calculation of wireless costs, I used the lowest cost "national" plan, to obtain the "free" long distance. For
Clear Talk, which does not provide a "free" long distance plan, I simply used the per minute long distance rates
published on their web site. The analysis assumes all long distance calls, both intrastate and interstate, are from
locations within the Carriers network, but outside the carrier s home area. However, except in the case of
ClearTalk, the bundled long distance minutes exceeded the average toll usage, so this assumption did not materially
impact the analysis.
For the calculation of Qwest's costs, I used 10 cents a minute for interstate calls and 15 cents a minute for intrastate
calls, and added this to the local costs from Confidential Exhibit 101.
Exhibit No. 102
Case No. QWE-02-
W. Hart, Staff Page 1 of 2
3/19/03
Difference Between Owest and Wireless Service
Long Distance Comparison with Directory Listing
Average Residential Customer, with 28 Average Business Customer with 117
Intralata and 36 Interstate Minutes Intralata and 151 Interstate minutes
Qwest Wireless Qwest Wireless
Monthly Monthly Monthly Monthly
Charges Charges Difference Charges Charges Difference
Edge Wireless $31 .$167.49 $136.$71.$155.$84.
US Cellular $31 .$160.$129.40 $71.$146.$74.
Sprint PCS $31.$101.$70.$71.$106.$34.
Verizon Wireless $31 .$156.49 $125.$71.$127.$56.
AT&T Wireless $31.$170.$139.$71.$155.$84.
T -Mobile $31 .$101.49 $70.$71.$105.$34.
Nextel $31.$91.49 $60.$71.$95.$24.
Cricket $31.$41.49 $10.$71.$45.$25.
ClearTalk
(Magic Valley)$31.$40.$9.$71.$66.$4.
ClearTalk
(Eastern Idaho)$31.$47.$16.$71.$73.$2.
For the long distance comparison, I used information from Qwest's report to the Administrator of the Idaho
Universal Service Fund (IUSF) and the May 22nd, 2002 Trends in Telephone Usage (Trends) published by the FCC
Industry Analysis and Technology Division. Using the data from Table 3.2 of the Trend's report, I divided the total
number ofIntrastate minutes from the IUSF report into residential and business customer classes. I then divided that
by the number of customers in each class to determine an average number of intrastate minutes for an average
residential and business customer. I then used the ratio of intrastate and interstate minutes from Table 11.2 of the
Trends report to determine an amount of interstate minutes. The intrastate and interstate minutes were added to the
peak local minutes from Exhibit 101 of the median flat rate customer for both residential and business customers.
For the calculation of wireless costs, I used the lowest cost "national" plan, to obtain the "free" long distance. For
Clear Talk, which does not provide a "free" long distance plan, I simply used the per minute long distance rates
published on their web site. The analysis assumes all long distance calls, both intrastate and interstate, are from
locations within the Carriers network, but outside the carrier s home area. However, except in the case of
ClearTalk, the bundled long distance minutes exceeded the average toll usage, so this assumption did not materially
impact the analysis.
For the calculation of Qwest's costs , I used 10 cents a minute for interstate calls and 15 cents a minute for intrastate
calls, and added this to the local costs from Confidential Exhibit 101.
Exhibit No. 102
Case No. QWE-02-
W. Hart, Staff Page 2 of2
3/19/03
WSlcom - Cellphone Carriers Cut Back On Some Generous Call Plans
emEW~~LINE
February 18, 2003
TELECOMMUNICA TIONS
Page 1 of 2
JOURNAL.
ALSO ON TELECOMCellphone Carriers Cut Back
On Some Generous Call Plans
By JESSE DRUCKER
Staff Reporter of THE WALL STREET JOURNAL
The wireless gravy train is slowing down.
. FCC Chief Salvaging Local-
Phone Plan
. Nokia, Oracle Unveil Cellphone
Pact
. PC Industry Bets on Cellphones
MORE
In the past few weeks, several mobile-phone carriers have pared some of their most generous calling plans, with
some cutting back on minutes by as much as 60% and others getting rid of free-evening calling.
AT&T Wireless Services Inc. stopped offering a national plan with 1 000 "anytime " minutes for $39.99. That
promotional plan, started in September, was meant to get users on to its new, higher-speed network, which
allows subscribers to send photos, check e-mail, and surf the Web at speeds comparable with dial-up.
Now, AT&T Wireless subscribers paying that much per month get as few as 550 "anytime" national minutes. (In
some markets, it's 600.) The carrier also cut back minutes in several other plans, and raised rates some customers
pay when they go over their allotted minutes and also raised some roaming rates.
Meanwhile, at the beginning of the month, T-Mobile USA Inc. stopped offering unlimited nighttime calling in
one plan. The carrier has also pared back a national $39.99 plan from 1 000 minutes to 600.
THE ABCS OF WIRELESS
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How much is your monthly
cellphone bill? Participate in the
Question of the Day 1
Can t keep your 3G straight from your COMA?
Our expanded glossary2 will help you sort
through wireless jargon.
Tangled in a web of woes, cellphone
companies face increasing pressure to
merge. Rumors are buzzing, but the big
question is -- who will it be? Meet the players
in the world of wireless.
Cingular Wireless also recently reduced the number of minutes in its
$39.99 local calling plan from 1 000 minutes to as little as 400 minutes
in some markets. Customers in Los Angeles , New York, Las Vegas and
some other markets are still in luck: They get 600 minutes in those
places, as long as they have a phone that operates on its new network.
Experts think it is likely that price cutting will eventually return, given
how competitive the industry remains. So unless you re desperate to sign
up for a plan now, just wait a while for another round of promotions. Or
keep in mind that even with the heaviest discounting gone, many plans
still offer more minutes than before the promotions.
If you re a super-heavy caller, some of AT&T Wireless s higher-end
plans actually got more generous: a local plan that gave you 1 200 peak minutes for $99.99 now offers 1 600
minutes.
Why are mobile-phone companies cutting back on their bargain plans now? Carriers worried about the continued
slowdown in the wireless-industry growth rolled out generous plans late last year to help generate stronger
growth in subscribers. Now, the industry wants to report strong cash positions at the expense of growth.
Exhibit No. 103
Case No. QWE-02-
W. Hart, Staff Page lof2 2/18120033/19/03http://online.wsj . com/article -printiO " SB 1045523387832429303 00.html
WSlcom - Cellphone Carriers Cut Back On Some Generous Call Plans Page 2 of 2
A spokesman for AT&T Wireless said the company made the changes for simplicity's sake, and pointed out that
in a few cases, service got a bit cheaper. "In some cases we ve added minutes, in some cases we ve reduced
minutes " he said.
Write to Jesse Drucker atjesse.drucker(q)wsj.com
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Updated February 18, 2003
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Exhibit No. 103
Case No. QWE-02-
W. Hart, Staff Page 2 of2
3/19/03 2/18/2003
Cell-phone service shortcomings 2/02 Page 1 of 4
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Service shortcomings
Illustration by Bek Shakirov
Why you can t always count on a cell phone when you need it. How to get better
service.Expert Forum
phones
--
service
handsets Janua~
February 1 , 2002
Sept 11 became a proving ground for emergency calling, especially from the cell phones on
which 123 million Americans depend. On normal days cellular carries roughly 30 percent of
911 calls. Total cellular traffic nearly doubled in the hours following the terrorist attacks.
That's when the thousands of people trying to make a call learned not only how vital cell
phones have become, but how fickle cellular networks can be.
We had the highest calling volume we ve ever had " said Danielle Perry, a spokeswoman
for AT&T Wireless. Many people in New York City and Washington, D., heard only the
fast busy signal that means the network can t handle another call. Rescue workers using cell
phones were as stymied as anyone.
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The past two years have seen cellular subscribers soar by more than 40 percent, to 123
million. And Americans' cell-phone use has risen sharply, from 89 billion minutes in 1998 to
nearly 200 billion in just the first six months of last year.
Americans are clearly willing to forgive a lot for those
minutes. Telephia, a San Francisco company that
measures network performance, pegs the chances of
getting disconnected at 2 percent in a 2-minute cell-
phone call. William E. Kennard , chairman of the Federal
Communications Commission (FCC) from 1997 until last
June, says that if a regular call on a landline phone cut
out that often, outraged consumers would call the phone
company. "But there is not the same expectation of
quality for wireless " he says.
There are no service standards for cellular--minimal
benchmarks for disconnects, clarity, or blocked calls, for
instance. But then, landline phones grew up as a tightly
regulated monopoly, not in the openly competitive
market that distinguishes cellular.
It's made wireless phones affordable for the majority of
people," but not without problems, says Kennard.
Indeed , Americans consistently rate their cellular-phone
service as mediocre.
Many people buy a cell phone
for on-the-road emergencies,
but the cellular 911 system
can t locate callers.Exhibit No. 104
Case No. QWE-02-
W. Hart, Staff Page 1 of 4
3/19/03
A national survey of households with wireless service conducted in 2000 by the Yankee
Group, a Boston-based research firm, found that only 41 percent of the 2 910 respondents
http://www.consumerreports.org/main/detailv2.j sp?CONTENT%3 C%3Ecnt id= 139605...12/2012002
Cell-phone service shortcomings 2/02
said they are "very satisfied." A Consumer Reports survey of about 1 500 cell-phone users
in 2000 found that half were very satisfied.
The reasons for such low levels of satisfaction--and what we can do to help you find better
service--include:
lli-spotty coverage. The maps carriers provide often show service that blankets entire
regions. But accurate national maps for some carriers actually eliminate entire states or
sizable swaths (see Where RIQvj9~L~j'l re lice!1sed
Accurate local maps are more like Swiss cheese, riddled with dead spots. Carriers map
those spots regularly, but consumers never have a chance to see those maps. The maps
consumers do see aren t independently audited by anyone , not even the FCC. Jim
Schlichting, deputy chief of the commission s wireless bureau, echoes advice we ve given:
that a good way to find out about coverage is to ask neighbors and friends.
How we can help. In addition to the maps in Where Q(QvidenLQ.CellQeo:;?J;!Q, we give an
overall satisfaction score for cellular service in nine large metropolitan areas in PerfQIIJ1~OJ;;e
ID...JDi;lioL!::Jtie$., based on data provided by Telephia.
iii- Surprisingly costly plans. The WIreless Consumers Alliance, a California-based
nonprofit organization at WINW.wirelessconsumers.org,receives two to three complaints a
day. Recent ones include these:
A Gloucester Township, N., customer switched from prepaid cellular service to Sprint
PCS, only to find that the new Sprint service wouldn t work at home; the area is a dead spot
on Sprint's network. And the Sprint contract carries a $150 early-termination fee.
A Sacramento, Calif., lawyer using AT&T Wireless is billed for long distance and roaming,
but his plan includes both. "I always get credited , but they put me on hold for a long time
he says.
How we can help. The table in A sample of calling plans breaks down charges from the five
leading carriers for four kinds of typical cell-phone users. You can use the data to help
determine the best value for your calling pattern.
lli-Billing problems. Last fall, the FCC issued its first report on cellular complaints. Billing
problems topped the chart, accounting for 55 percent of the 3 076 problems logged in over a
three-month period. The FCC won t name companies that are the subject of those
complaints. And though the FCC sends the complaints on to carriers--in the first 10 months
of last year, it forwarded more than 1 O OOO--the agency has no system to follow up.
The California Public Utilities Commission noted a 47 percent jump in cellular "complaints
and inquiries" last year; billing disputes and service quality topped the list. The agency is
now proposing a state consumer bill of rights for telecommunications, citing the "frustration
many feel in dealing with carriers.
How we can help. When a problem arises, you will have to deal with the cellular company
first, but don t hesitate to call state regulators or the FCC (see What the FCC should
rnguire). If the problem is with the telephone itself, go to one of the cell-company s stores
not an independent agent; the staff is likely to be better equipped to provide a remedy.
THE PATCHWORK NETWORK
Cell-phone carriers have built networks that handle most calls most days, but capacity isn
infinite. Adding a new cellular tower can cost carriers as much as $300 000, a dubious
investment if the additional capacity goes largely unused.
Because a major emergency can overwhelm the system, the government is pushing carriers
to quickly set up a priority access system. It would give precedence to the cell phones that
rescuers may carry; their calls would shoot to the front of a site s queue when an emergency
Page 2 of 4
Exhibit No. 104
Case No. QWE-02-
W. Hart, Staff Page 2 of 4
3/19/03
http:/ /www.consumerreports.org/main/detailv2.j sp?CONTENT%3C%3Ecnt id= 139605...12/2012002
Cell-phone service shortcomings 2/02 Page 3 of 4
is declared.
The industry expects to have 50 000 priority lines in place by the end of the year, says
Kathryn Condello, a spokeswoman for the Cellular Telecommunications & Internet
Association, a trade group.
But there is one formidable problem in the way of priority access, which also helps explain
why everyday cell-phone service can be maddening. In 1986, the FCC dropped its
requirement that carriers use one common analog standard, although cellular carriers must
still support analog. And in 1993, when the FCC opened up the digital pes band, the
agency didn t require those carriers to carry analog signals at aiL
As a result, different companies have erected their digital networks as technical fiefdoms;
users can t easily cross from one to another. AT&T's TOMA system can t communicate with
Verizon s COMA system. Such incompatibilities mean that carriers can t pool resources,
allowing, say, AT&T to tap some idle Verizon capacity.
Kennard says that the carriers' diverse technical standards "made for a more balkanized
industry" that has difficulty coordinating, especially in emergencies.
ELUSIVE E911--WE COULD BE SAFER
Cellular s biggest failing may well be its limited usefulness in an emergency. If you call 911
from a cell phone, rescuers cannot readily find you. To give just one example: A Consumer
Reports staffer who wanted to alert authorities to an accident on New York City s West Side
Highway was taken aback when the 911 operator asked what town he was in. His
emergency cellular call had somehow been routed to Totowa, N., 18 miles west, and been
answered by New Jersey State Troopers. They quickly transferred the call back to a New
York City call center.
Granted, it's hard to find a moving target, but the technology to do so has been around for
years, most notably in the OnStar system built into many luxury cars, which relies on
navigational satellites. Most cellular carriers plan to use the same system in what's known
as Enhanced 911 , or E911. But government and industry have been dragging their feet
In 1996, carriers agreed to provide E911 in two steps over five years. Phase I would convey
a cell phone s number for callbacks and the location of the cell tower handling the call , a
rough indication of whereabouts. Carriers complied with Phase I, although most emergency
call centers must still upgrade their facilities to handle the extra information. There is no
timetable or dollar figure for the upgrade.
The cellular industry hasn t delivered on Phase II , which was supposed to take effect last
October. By then , cell systems should have been capable of pinpointing callers to within a
few hundred feet or better. But the industry apparently underestimated the technological
challenge. For example, a Verizon spokeswoman says the company spent "a lot of money
trying a network-based system that did not work well, especially in rural areas." So it
adopted a handset solution. The big carriers asked the FCC for an extension and were
given four years.
My own view is that the carriers don t see this as a money-making proposition, locating
people in emergencies" says Kennard. Michael K. Powell, the current FCC chairman, has
said he is "disappointed and unsatisfied" with progress on E911.
Even when E911 finally arrives, the carriers' digital fiefdoms may well stymie its
effectiveness if there is no legal requirement for them to accept a caller s location from other
carriers. For example, an E911 call from a Verizon handset might not register your location
if an AT&T cell site receives it (911 calls must travel over the first available circuit). Most
E911 systems won t work on the older analog system, either. As of last fall, only St Clair
County, III., a suburb of St Louis, Mo., had E911. The system now works only with phones
that can access a Verizon tower.Exhibit No. 104
Case No. QWE-02-
W. Hart, Staff Page 3 of 4
3/19/03
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Cell-phone service shortcomings 2/02 Page 4 of 4
A CAPACITY FIX?
Calls can be lost as you move from one cellular site--the radius covered by a transmission
antenna--into another.
In theory, more cell sites in an area may mean fewer disconnects and blocked calls.
Carriers say they ve invested billions to add sites, but that radio signals are inherently
unreliable, affected by buildings, topography, weather, and even foliage.
The industry convinced the Federal Communications Commission that it needs a bigger
wedge of frequencies for emergencies and to improve service. Last November, the
commission removed the "spectrum caps" limiting the number of airwaves each carrier
could own in a particular market.
Lifting the caps was unfortunate for two reasons:
First, those caps have fostered competition. Today 90 percent of Americans can choose
from among three or more wireless carriers, and 75 percent from five or more.
Second, there s new technology that will also deliver relief without inhibiting competition. In
coming years carriers plan to upgrade to 3G , or third generation, cellular. (1 G was analog;
2G is today s system.) 3G technology can cram many more voice calls into airwaves and
boost the speed at which wireless data travel.
After the vote to lift caps, Kennard told us: "This was not about spectrum but about mergers
and acquisition. If you only have two or three carriers, there will be less incentive to compete
on price and service.
Getting through in a pinch: Send text
Cell phones aren t totally hopeless in the kind of emergency that clogs lines and blocks
calls. Many newer phones provide a second track to get through, using a text message.
Text messages stand a good chance of reaching their destination , even if voice circuits
are overloaded. Text demands less from network resources. Voice calls must be
transmitted right away, while text is broken into packets of data that squeeze through
airwaves when there s a bit of room.
The short-messaging service (SMS) that cell phones offer limits you to 160 characters
entered from the keypad. Some handsets also offer canned messages, such as "ll be
late." You enter the recipient's cell-phone number and push Send. In a few minutes his
or her phone beeps and delivers your message.
Until now, carriers haven t allowed messages to be sent outside their network. Now
carriers say they will open the system , perhaps sometime this year. Some also let
anyone with a regular Internet connection send a note to a cell customer. SMS is
different from full-fledged wireless e-mail, however.
Pricing varies, but 10 cents a message is typical for senders; recipients might also pay a
few cents.
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Exhibit No. 104
Case No. QWE-02-
W. Hart, Staff Page 4 of 4
3/19/03
http://www.consumerreports.org/mainidetailv2.jsp ?CONTENT%3 C%3 Ecnt- id= 13 960 5...12/20/2002
what you
Coverage............. 2
Pricing.
..............
. Handsets..............
. More Information...
Exhibit No. 105
Case No. QWE-02-
W. Hart, Staff Page 1 of 9
3/19/03
;~1
ANALOG vs. DIGITAL
Coverage refers to the geographic area
where mobile telephone subscribers can use
their cell phones . Cell phones must be
able to receive or (pick up " a signal from
mobile telephone carrier s network.
Coverage varies 0; carrier and is
determined 0; the extent to which carriers
have built out their networks.
There are essentially two types of coverage: analog and digital. Calls made on digital
networks are clearer, more secure, and more feature-rich than calls made on analog
networks. Because analog technology has been in use since the 1980s, virtually every
part of the country where people live has analog coverage. Carriers have deployed digital
technology more recently and , therefore , digital service plans and coverage tend to be
available in the more populated and highly-traveled areas of the country. The FCC
estimates approximately 90 percent of the U.S. population lives in counties that have some
digital coverage. Significant portions of the country s land area do not have access to
digital service. Carriers are constantly upgrading their networks to expand the areas
where they can offer digital mobile telephone service.
BRIEF HISTORY
During the 1980s , the FCC licensed cellular spectrum in the 800 MHz band to two cellular
carriers in virtually every market in the country. These carriers began building out their
networks and offering analog cellular service. In 1995 the FCC began auctioning
additional mobile telephone spectrum in the 1900 MHz band for Personal Communication
Services (PCS). The carriers that purchased this spectrum began building out digital
technology and offering digital mobile telephone services. Cellular carriers in the 800 MHz
band have upgraded most of their networks from analog to digital technology in order to
expand capacity and improve the quality of service. During the late 1990s , carriers
operating in spectrum bands allocated for Specialized Mobile Radio (SMR) service began
upgrading their networks with digital technology and offering mobile telephone service in
competition with cellular and PCS operators. Mobile telephone carriers using these
various spectrum bands continue to deploy digital technology in their networks today.
*The term "cell phones " generallY refers to all mobile phones that operate on af!Y of the three !JiPes of mobile telephone spectrum:
cellulatj PCS, or digital SMR Exhibit No. 105
Case No. QWE-02-
W. Hart, Staff Page 2 of9
3/19/03
WHERE CAN I USE MY CELL PHONE?
This is determined mainly by where your carrier owns spectrum licenses
and where it has built out its network within its license areas. Analog
networks cover almost every area of the country, whereas digital
networks, while extensive , are not everywhere. The extent to which
individual carriers have built out their networks in a given market varies.
Even if your carrier has not built out its network in a given area, you may
be able to connect to or "roam on" another carrier s network. If your
carrier has an agreement with another carrier , and if you have a type of
handset that allows roaming, you may be able to connect (see "The
Handset " page 4). Most handsets that allow roaming have an indicator
to let subscribers know when they are outside their home calling area
and/or out of reach of their carrier s network. How much you will pay for
calls in different areas depends on your pricing plan (see "Pricing," page
5).
DROPPED CALLS, DEAD SPOTS &
BUSY SIGNALS
Even where a carrier offers coverage in a specific
geographic area, you may not be able to complete a
given call due to limitations in network architecture and
capacity. When a carrier fails to hand off a call in
progress, as you travel from one part of the carrier
network to another a "dropped call" results. When many
customers use a carrier s network at the same time , it
becomes capacity constrained. Other customers trying
to connect will hear a busy signal instead of being able to
complete their calls. Topography can also affect
coverage causing "dead spots." A dead spot is an area
where service is not available because the signal
between the handset and the cell tower is blocked
usually by hilly terrain , excessive foliage, or tall buildings.
Carriers are constantly improving and upgrading their
networks in order to minimize these types of problems.
Exhibit No. 105
Case No. QWE-02-25
w. Hart, Staff Page 3 of9
3/19/03
I#!i..,.w"""',,,&,
THE HANDSET
Coverage is also affected by the type of
mobile telephone handset a user owns.
Single-mode" phones can connect to either a
digital an analog network but not both.
Dual-mode" handsets can be used on both
analog and digital networks. "Tri-mode
handsets can be used on analog and two
types of digital networks. The more networks
your phone can be used with the better
chance you have to pick up service
nationwide. The strength of the antenna and
quality of the engineering in a mobile handset
can affect your ability to pick up a certain type
of signal or any signal at all.
. IN-BUILDING COVERAGE
Coverage maps are meant to give users a
general idea of where their phones will work
when outside or in a car. However, carriers
network signals often fade inside buildings or in
underground locations such as basements,
parking garages or subways. Carriers are
increasingly putting special facilities inside
some of these areas to enhance coverage, but
they are by no means universal. Therefore
you should not necessarily expect to be able to
use your phone in these types of locations.
READING THE FINE PRINT
Carriers provide coverage maps on their Web
sites and in stores where their products are
sold. However , these maps carry the
disclaimer that they are provided for
informational purposes only and that actual
coverage may vary. Reasons for this variance
include the dynamics of topographical and
network capacity constraints on any given day.
Exhibit No.1 05
Case No. QWE-02-
W. Hart, Staff Page 4 of9
3/19/03
'Jfi
, j '. .""'"'"
f)~
Mil'ft,
Most wireless pricingplans include a certain number of minutes
per month (often called a ((basket" or ((bucket" of minutes) for
a certain price, and atry minutes over that specified amount are
charged on a per-minute basis. Atry unused minutes at the end
of the month expire. Carriers generalfy offer several variations
of these tYpes of plans with increasing baskets of minutes at
increasing monthfy fees. Carriers also vary their service plans f?y
where subscribers can use their phones without incum
additional roaming and long distance fees.
. NIGHT & WEEKEND VS. "ANYTIME MINUTES
Many carriers offer plans that include a basket of minutes that can be used anytime during the
month plus a larger basket of minutes that can be used during certain times , generally nights and/or
weekends. Which time periods constitute "night" and "weekend" vary by carrier.
. PEAK & OFF-PEAK MINUTES
Before the advent of "bucket" pricing plans, carriers charged subscribers a per-minute fee for each
minute of airtime on every call. Some carriers still offer these types of plans today. With these
plans, calls made during certain "peak" times of the day - generally business hours - often cost
more, and calls made during other "off-peak" times - generally nights and weekends - often cost
less. Again , which times constitute "night" and "weekend" vary by carrier.
WHO PAYS FOR INCOMING CALLS?
With the majority of pricing plans, consumers pay for both outgoing and incoming calls. In the case
of bucket plans, the minutes from both outgoing and incoming calls are usually deducted from a
customer s monthly bucket of minutes. However, some carriers offer pricing plans where all or
some of the minutes of incoming calls are free to customers.
. MINUTES OR SECONDS?
In general, mobile carriers charge by the minute. When you use a fraction of a minute, many
carriers round up to the next minute, charging or deducting subscribers a full minute when only a
portion of it is used. However, some carriers offer plans that round to the nearest second instead ofminute. Exhibit No. 105
Case No. QWE-02-
W. Hart, Staff Page 5 of9
3/19/03
LONG DISTANCE
Cell phone users have traditionally had to pay additional fees for "long distance
calls. Long distance calls are generally calls made to locations outside of a
customer s home coverage area. However, some carriers may define long
distance calls differently for purposes of their pricing plans. Several carriers offer
pricing plans that eliminate per-minute long distance fees. Some plans charge no
long distance fees for calls made from a customer s home calling area, some for
calls made from anywhere on a carrier s network, and some for calls made from
anywhere in the United States. Whenever a long distance call is made, the mobile
telephone carrier determines which long distance carrier will complete the call
unlike with landline service where the customer chooses the long distance carrier.
. ROAMING
Carriers have traditionally charged per-minute roaming fees on calls made from
the network of the carrier that has a roaming arrangement with your carrier from a
location outside of a customer s home calling area. However, several carriers
have eliminated these fees in their "nationwide" pricing plans.
. "
NATIONWIDE PRICING PLANS
All of the major mobile carriers offer pricing plans that allow customers to purchase
a bucket of monthly minutes to use on a nationwide basis without incurring
roaming or long distance charges. Consumers should be aware that how carriers
define "nationwide" varies. For some carriers, this means being able to use your
phone anywhere in the country where any type of signal is available at no
additional charge. For other carriers, it means being able to send and receive calls
only on the carrier s network without incurring roaming and long distance fees.
These carriers' networks generally extend through the country s more populated
and highly-traveled locations but do not cover the entire United States.
. PREPAID SERVICES
With prepaid service, consumers purchase a handset and pay for a fixed amount
of minutes prior to making any calls. There is usually a set time period in which
unused minutes will expire. Prepaid minutes are often subject to peak and off-
peak airtime rates. When prepaid customers have used up their minutes, they can
refill them. Carriers do not obtain credit history reports on prepaid subscribers as
they generally do with other subscribers.
Exhibit No. 105
Case No. QWE-02-
W. Hart, Staff Page 6 of 9
3/19/03
SPECIAL OPTIONS
Special options (also known as vertical services) include such things as call waiting,
CalierlD , voicemail , call forwarding, and three-way calling. Carriers offer these to
customers as add-on features beyond simply dialing and talking. Some of these options
are included in the monthly price of most digital calling plans , while others are generally
offered at an additional monthly or per-use charge. Many of these features may not be
available on analog networks.
SHORT MESSAGING SERVICES (SMS)
SMS provides the ability to send and receive short text messages to and from mobile
handsets. Many carriers charge a flat monthly fee for a basket of messages, with
additional messages costing a few cents per message.
. MOBILE DATA SERVICES
Wireless Web" or "mobile Web" services allow customers
to obtain a limited amount of text-based Internet content on
their mobile phones. The type of content available
generally varies from carrier to carrier. Some carriers
charge a flat monthly fee for access to wireless Web
content, while others offer the service at no additional
charge beyond voice service. In addition , some carriers
deduct wireless Web access minutes from their
subscribers' basket of monthly voice minutes while others
do not.
. ACTIVATION FEES
Many carriers charge a one-time fee to customers when they initiate service, called an
activation fee." Carriers will sometimes waive this fee as part of a promotional pricing
plan.
. SERVICE AGREEMENTS
Most carriers require new subscribers to sign one-year
contracts or service agreements when they sign up for a
new service plan. Most charge an "early termination fee
to users who cancel their service plans prior to the end of
that year. Some carriers offer additional incentives to
subscribers who sign up for two-year service agreements.
Consumers should carefully read any potential service
contract prior to signing up for service.
if.!'"
Exhibit No. 105
Case No. QWE-02-
W. Hart, Staff Page 7 of 9
3/19/03
WHAT To CONSIDER
WHEN BUYING A HANDSET
MODE
Is the phone single or multi-
mode? Can it operate
analog or digital networks, or
both? Does it indicate when
it's roaming?
STORAGE
How many phone numbers
and other data can the
handset store?
SCREEN SIZE
This can be an important
factor for viewing phone
numbers and other stored
data , as well as wireless web
content.
SPECIAL OPTIONS
What types of "vertical
features " such as CalierlD
call waiting, and voicemail
are included with the
handset and service plan?
VOICE FEATURES
Does the phone have voice-
activated dialing?
Does it have a speaker
phone?
SAR RATING
The Specific Absorption Rate (SAR)
is a measure of the level of human
exposure to radiofrequency (RF)
emissions from a handset. You can
obtain information on SAR ratings of
specific handsets on the FCC Web
site at: www.fcc.gov/oet/rfsafety/#sar.
MOBILE DATA
CAPABILITIES
Does the handset have the ability to
access the carrier s wireless web
services and/or send and receive
text messages?
HEARING AID
COMPATIBILITY
Hearing aids generally work with
cell phones that use analog signals
but not currently with those that use
digital signals. More information
about hearing aid compatibility is on
the FCC's Consumer and
Governmental Affairs Bureau
webpage at:
http://www.fcc.gov/cgb/dro/hearing
BATTERY LIFE
What are the handset's talk time and standby time? Standby time is the number of hours or days the
phone can stay on before the battery will run out. Talk time is the number of hours a user can talk on
the phone before the battery will run out. These times can vary with analog and digital service. Alsoa handset's battery will affect its size and weight. Exhibit No. 105
Case No. QWE-02-
W. Hart, Staff Page 8 of9
3/19/03
Where ero get ::More
Information.
. FEDERAL COMMUNICATIONS COMMISSION
WWW. FCC.GOV 888-225-5322 (CALL-FCC) - VOICE
888-835-5322 (TELL-FCC) - TTY
. CARRIERS
The Web sites and toll-free numbers of mobile carriers with over 1 million subscribers in the United States (as of
the end of 2001), listed below, provide information on where these carriers offer service, the extent of their network
coverage, pricing plans and other services they offer, and the corresponding handsets and accessories they sell.
ALL TEL www.allteLcomAT&T Wireless www.attws.com
Cellular OnelWestern Wireless www.cellularonewestcomCingular Wireless www.cin ular.com
Leap Wireless/Cricket Communications www.cricketcommunications.comNextel www.nexteLcomQwest www.westwireless.comSprint PCS www.rint cs.comUS Cellular www.uscellular.comVerizon Wireless www.verizonwireless.comVoiceStream www.voicestream.com
[phone]
[phone]
[phone]
[phone]
[phone]
[phone]
[phone]
[phone]
[phone]
[phone]
[phone]
CONSUMER INFORMATION WEB SITES
The following Web sites provide consumer information on mobile telephone service, such as side-by-side
comparisons of the service plans available in a given area, general advice on purchasing a mobile phone,
educational information on wireless technology, user ratings of phones and pricing plans, and answers
commonly asked questions.
www.celimania.com
www.dealtime.com
www.etconnected.com
www.ointcom
www.wirelessadvisor.com
Exhibit No. 105
Case No. QWE-02-
W. Hart, Staff Page 9 of9
3/19/03OTHER CONSUMER INFORMATION
Consumer Reports (www.consumerre orts.) provides free consumer information on its Web site, including
details on the various mobile service plans available in major U.S. markets and their accompanying handsets.
With an online or print subscription , consumers can obtain a full ratings report and comparison of mobile service
plans and handsets.
J.D. Power (www.ower.com) provides ratings on its Web site of all of the wireless carriers in major U.
cities. The carriers are rated on various criteria, including call quality, cost, and customer service.
CTIA (www.wow-com.com) is a trade association representing the wireless industry. Its Web site contains tips
for consumers on purchasing mobile service as well as an overview of all mobile handsets that have hands-free
accessories.
MRP , the American AssoCiation of Retired Persons (www.com), provides on its Web site a published
survey entitled Understanding Consumer Use of Wireless Telephone Service that discusses various issues
related to wireless service and older consumers.
NOTE: The sources listed on this page represent a sample of the consumer information available to the public on wireless issues and is not
meant to be a complete list. In addition, the FCC does not vouch for the accuracy of the information contained in these Web sites and
publications. Brochure Last dated: 7/1/02
, Spotty service angers cell phone users
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E-mojlthisstorv Sub.xribebthenewspa(:ler Sicm-upfore-mail ne'
12/13/2001 - Updated 08:25 AM ET
Spotty service angers cell phone users
By Andrew Backover, USA TODAY
Tom Bavolek's family is in cell phone hell. The three cell phones his
family bought from Sprint PCS rarely work within 3 miles of their
Southlake, Texas, home in the center of Dallas/Fort Worth. Calls are
dropped or rarely go through. That means no free long-distance calls-
one of the perks Sprint PCS used to win his business. Bavolek's daughter
can t use her cell phone to call home when she s late. His wife can t reach
him to expand his honey-do list. Sprint PCS says it's trying to add cell
towers to increase coverage. But that will likely take months. Bavolek
feels trapped. His contract, with more than a year left, has an early-out
fee of $250. He also feels duped.
Read more below
Audio Man~~~IJQ,iJne Y~~r$?ng~r~g..bYGQver
?g~
Page 1 of 6
Despite advertisements that tout
connectivity any time, anywhere
customers say the nation s wireless firms
Companies try
to improve service
Phone companies are
ExhibitNo. 106
Case No. QWE-02-
W. Hart, Staff Page 1 of 14
3/19/03
http://www.usatoday .comltech/columnistlleonardfischerI200 1/12/13/spotty -cell-phone-servi... 11712003
Related
coverage
. Q~ILgbQne free minutes Q!yln9J-!R
Cell phones may get own area codes
There was absolutely no mention that there was anyplace in and around
Dallas/Fort Worth where you couldn t get coverage " Bavolek says.
You can consider it a type of fraud by omission. They know there are
issues, and they don t make you aware of them.
Bavolek's displeasure is part of a wave of unrest rippling through the
USA's estimated 127.5 million cell phone customers, a total that has
nearly doubled in 3 years.
Spotty service angers cell phone users
aren t delivering. They re tired of dropped
calls and busy signals caused by
overburdened networks. They re angry at
having to pay high "roaming" charges
even if they re in their own neighborhoods
because of network dead spots or weak
signals. They often can t even get service
in heavily populated areas. And, they
shocked by such hassles, because maps
and other advertising used by wireless
firms don t always show network holes or
high-traffic areas that disrupt service.
They give people the impression that you
have a ubiquitous service, just like a land-
line phone " says telecom analyst Tom
Friedberg. "It's just not true, and it
probably won t be for 5 years.
Wireless phone companies are expanding
networks to handle more traffic, quicker
in old and new markets (story, below
right). "re in there fighting to get cell
sites on the air " says Dennis Huber
Sprint PCS senior vice president. He says
local zoning laws can hold up the
installation of cell sites for up to 16
months.
Yet some consumer advocates and
legislators say the industry should be more
accountable for its shortfalls. States are
taking action.
Page 2 of 6
improving wireless service by:
. Adding capacity. Companies
increased the number of cell
sites, which handle cell phone
traffic, nationwide by 19%
between mid-2000 and mid-
2001. They haven t stated plans
for next year. Capacity will also
rise as they secure the right to
use more airwaves to build out
networks that cover more than
160 million people in major
markets.
VoiceStream Wireless, for
example, plans to launch
service next year in Cleveland,
Buffalo and Richmond , Va. It
also is building its own networks
in California and Nevada, so it
doesn t have to use someone
else s. And it plans to expand in
North Carolina and South
Carolina.
. Staying ahead of demand.
Earlier this year, Sprint PCS
curbed advertising in Chicago
for 4 months after it couldn
keep up with demand. Cingular
is using mobile cell sites to
handle rising traffic on college
campuses. Verizon Wireless
has a fleet of cars that test its
network for congestion
problems, so it can fix them.
. Keeping customers
informed. Sprint pes typically
updates its coverage maps four
times a year and uses its Web
site to list cities where service is
available. AT&T Wireless
provides similar information.
, Allowing test runs. Although
carriers charge $150 to $200 if
consumers break contracts
early, some let customers test
phones and calling plans before
contracts kick in. That way,
customers can discover their
calling patterns, find the right
plan and gauge service quality
before they are locked in. Sprint
PCS gives customers 14 days.
Verizon Wireless customers
have 15 days. VoiceStream
customers get 3 days. Exhibit No. 106
Case No. QWE-02-
By Andrew Backover W. Hart, Staff Page 2 of 14
Sprint customers might have received 3/19/03
service outside the digital network but only at the more expensive
analog roaming rate. Phones may go into "roam" mode when their users
travel off the carrier s network and pick up service from another
company s network. Roaming calls cost 25 cents to 45 cents a minute
Last year, Sprint PCS clarified its ads after
New York State Attorney General Eliot
Spitzer raised concerns that they were
misleading. Spitzer objected to Sprint'
claim to a nationwide network when its
digital network didn t cover parts of New
York City and other big cities. Sprint has
since tweaked the ads to say that its digital
network covers more than 300
metropolitan areas.
http://www.usatoday .com/tech/columnist/leonardfischerI200 1/12/13/spotty-cell-phone-servi... 1/7/2003
Spotty service angers cell phone users Page 3 of 6
compared with 10 cents to 15 cents a minute for regular calls, says
Yankee Group analyst Knox Bricken.
Other carriers could face similar challenges. In March, 22 states
including Connecticut, Tennessee, Nevada and Colorado , asked Verizon
Wireless, the nation s No.1 carrier; No.4 Sprint PCS; and at least one
more carrier for information about their advertising and billing practices.
Legislative action
u.s. Rep. Anthony Weiner, D-, was so peeved by dropped cell
phone calls that he reintroduced legislation this year to require the
Federal Communications Commission to publish complaint statistics by
company and market. That way, he says, consumers could judge
wireless firms on quality as well as cost.
They got so many people signing up, they were completely umeady in
spots around the country," Weiner says.
The legislation has stalled, in part because of an anti-regulatory climate
but also because Congress is focused on terrorism and the economy.
At Weiner s request, the U.S. General Accounting Office is studying the
problem. "This is the kind of thing that more consumers are going to ask
for " Weiner says.
F or the most part, though, disgruntled consumers have few places to
turn. Federal regulators dole out wireless spectrum but have no oversight
of service quality. The FCC only recently started keeping in-depth
statistics on wireless complaints. State regulators do so sporadically.
Consumers, though, register their displeasure on Web sites such as
PlanetFeedbackcom. Nearly 80% ofletters PlanetFeedback gets about
wireless firms are complaints. The average for other industries is 62%.
Three ofthe site s 20 worst-rated companies are VoiceStream Wireless
Sprint PCS and WorldCom Wireless. The letters drip with frustration.
The sky-high expectations set by the wireless carriers are a recipe for
consumer disappointment " says PlanetF eedback founder Pete
Blackshaw.
Behind the frustration:
. High traffic. The falling cost of cell phone service has sparked huge
growth in cell phone users and cell phone use. The number of
subscribers is 18 times what it was 10 years ago. The average monthly
cell phone bill as ofmid-2001 was $45.56. It was $74.56 in mid-1991.
From mid-2000 to mid-2001 , carriers added 19% more cell towers
which handle traffic. But subscribers grew 22%. Wireless minutes Exhibit No. 106jumped more than 75%. Case No. QWE-02-
W. Hart, Staff Page 3 of 14
3/19/03
http://www.usatoday.comltech/columnist/leonardfischer/200 1 /12/13/spotty -cell-phone-servi... 1/7/2003
Spotty service angers cell phone users Page 4 of 6
Verizon Wireless, for one, says demand will exceed capacity in some
big markets within 3 years so it is trying to acquire more airwaves to
expand service. If not, the result would be more call delays and dropped
calls.
Consumers already suffer.
After he signed up with Cingular Wireless last year, Simone Gaddini
says, 80% of the calls from his Berkeley, Calif., home or neighborhood
didn t go through.
Despite Cingular s efforts to boost capacity, Gaddini says his phone
works only half the time near his house, almost never inside it.
It is still well below the standard that I expect " says Gaddini, founder
of Firenze Antica, a Tuscan walking-tour company.
Jonas Geronimo endures network congestion almost daily during rush
hour. The Anaheim, Calif., resident often dials 10 times before a call
gets through on his Cingular service.
Can you imagine the level of frustration if you are on the freeway and
you are running late for a meeting?" the health plan case manager asks.
Cingular admits to problems in California especially in Los Angeles
and San Francisco. It has seen big demand in response to heavy
marketing, and it's adding cell sites.
In some ways, we have been a victim of our own success " says Ed
Reynolds, Cingular s president of network operations.
. Networks filled with holes, None ofthe major carriers has a
nationwide network. Each has areas it can t yet serve or won
because it costs too much.
People expect (phones) to work everywhere " V erizon spokeswoman
Nancy Stark says. "You are not going to get service in the Grand
Canyon or on top of a mountain.
AT&T Wireless, for example, doesn t offer any service not even
roaming in parts of Colorado, Nebraska, North Dakota and South
Dakota.
It would cost too much because "there s too much territory," says Greg
Slemons, an AT&T Wireless executive. Exhibit No. 106
Case No. QWE-02-
W. Hart, Staff Page 4 of 14
3/19/03
Yet, consumers often miss the fine-print warnings when they see ads
hawking national calling plans.
Don t miss the fine print
http://www.usatoday.com/tech/columnist/leonardfischer/200 1 /12/13/spotty -cell-phone-servi... 1/712003
Spotty service angers cell phone users Page 5 of 6
VoiceStream Wireless brochures and ads tout
, "
Whenever, Wherever.
But that doesn t extend to such cities as Cleveland; Buffalo; Springfield
Mo.; Omaha and Little Rock. V oiceStream has no service in those cities.
VoiceStream spokeswoman Kim Thompson says the information is
disclosed in a detailed map in its brochures. "It doesn t do us any good to
mislead customers. If they are not happy, they will leave us.
Other consumers get confused by popular new flat-rate plans with no
roaming charges. Carriers call them "nationwide" rate plans. But
consumers often take that to mean they get nationwide coverage.
Verizon s Web site says its National SingleRate plan is "perfect if you
talk and travel around the country." Promotional literature shows a map
of the USA with no gaps. Below the map, a disclaimer warns that it
does not depict service availability just where the rate is in effect.
V erizon doesn t produce service area maps for consumers, because they
are obsolete as soon as they are printed, spokesman Brian Wood says.
Customers can get better information from sales agents, who should
know about dead zones and problems, he says.
Verizon customer Mike Silver of Phoenix found such gaps in the
foothills about 7 miles from the city's downtown.
They sell it as if there is nowhere you are not going to receive
coverage " says Silver, a sales manager at computer-memory maker
Southland Micro Systems. "It's a bit of a misnomer.
Phone companies define network size by the number of people they
reach, not by land mass. Sprint PCS won t reveal its geographic reach.
Its coverage, including affiliates, is largely in bigger cities and along
major highways and reaches 85% ofthe population.
Verizon says it doesn t have geographic statistics. Its network reaches
about 80% of the population, it says.
. Roaming hassles. If customers go outside their carrier s network, they
might not get service. Or, customers with versatile phones can roam on
someone else s network. With Sprint PCS, for example, the cost of
roaming can be huge.
Expensively for me, my teenage daughter picked that particular week to
......
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Frequent business traveler Debi Fuller of Vancouver, Wash., a trainer
for software firm Information Associates, says she was surprised to learn
last year that her Sprint PCS phone worked only in analog roam mode
when she was in Santa Barbara, Calif., which has a population of more
than 90 000.
http://www.usatoday .comltech/columnist/leonardfischerl200 1112/13/spotty-cell-phone-servi... 117/2003
Spotty service angers cell phone users Page 6 of 6
need extra TLC from her mom " Fuller says. Sprint PCS says digital
coverage in Santa Barbara is still "not built out as well as we would like
it ... due to serious zoning issues.
Most big carriers have reduced customer fears of roaming charges with
plans that don t charge for roaming within designated calling areas.
V erizon, for one, has a 400-minute-a-month national plan without
roaming or long-distance charges for $55 a month.
A 400-minute plan that allows free roaming and long-distance in a 14-
state region costs $45.
Roaming even at home
There is yet another hassle: Roaming often renders features such as
Caller ID and voice-mail alerts useless.
What's more, cell phones may go into roam mode even though their
users are in their local calling areas. That can happen if the digital
signals are too weak, so the phone jumps to older analog networks or
another carrier s digital network. High traffic also can bump a phone into
roam mode.
Dan Finch of Raleigh, N., says his phone goes into analog roam in
parts of his home, or he can t get any signal at all. That's a problem
because he works from home. The manager for computer reservations
service Amadeus sometimes walks his dog, Mollie, to the comer of his
block to get a signal.
Such quirks infuriate Finch when he sees Sprint ads hyping its network:
Every time I see that commercial my blood boils.
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Exhibit No. 106
Case No. QWE-02-
W. Hart, Staff Page 6 of 14
3/19/03
http://www.usatoday .com/tech/columnist/leonardfischerI200 1/12/13/spotty -cell-phone-servi... 1/7/2003
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Technology - Reuters
Wireless Operators Lose Short Text Messages-
Study
Tue Jan 14 11 :55 PM ET .Add Technology - Reuters to My Yahoo!
CHICAGO (Reuters) - Millions of short text messages sent between mobile
phones in the United States are lost every month, and the chance of two
parties connecting depends on which networks they use, a study to be
released on Wednesday says
Related Quotes Internet performance measurement companyVZ 40.10 -08 Keynote Systems Inc. (NasdaqNM:KEYNE 7.32 -12 ne'N~) says in its study that 7.5 percent of all
KEYN 90 +0.12 short text messages sent between wireless
VOD 19.65 -65 telephone companies are lost.
DJIA 8709.81-132.
NASDAQ 1436.29 -24.70 The increasingly popular service known asIISPC 917.14.09 SMS (Short Message Service) allows mobile
phone users to send brief messages
._~.
Instantaneously to their friends and family. It
typically costs 10 cents to send a message
and pennies to nothing to receive one.delayed 20 mins - dis!;Lgjmer
Quote Data provided by
Reuters
In Europe, where it is also known as "text
messaging," 10 to 15 percent of wireless
operators' revenue comes from SMS, but
adoption of the service has been slower in the
United States, where users were not able to
send messages to networks other than their
own until last year.
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Still, industry group Cellular
Telecommunications & Internet Association
estimates that nearly one billion messages
were exchanged during the month of June
2002 , the latest figure it has. At a lost-message rate of 7.5 percent, this
means millions of messages never reach the intended recipient.
B usln~ssEr~(1J
Chuck Mount, general manager of Keynote s Wireless Perspective
Service, said a significant lost-message rate will not only affect carriers
revenue but could affect customer usage of the still budding service.
http://story.news.yahoo.com/news?tmpl=story&ncid=581&e= 1 &cid=5 81 &u=/nm/20030 1...
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Yahoo! News - Wireless Operators Lose Short Text Messages-Study Page 2 of 3
I;quipment MaK~r
S.tQQ!s~ Reuters (Jan 14
2003)
Lucent Reaches
Tentative Deal with
Union Reuters (Jan 14
2003)
. fCC'~PQw~1I
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CQnQ~ntrC!tlQn Reuters
(Jan 14, 2003)
Among the operators, the No.3 U.S. wireless operator AT&T Wireless
Services Inc. (NYSE:t\WE news) had the highest success rate in
sending and receiving messages.
. Free New~
Tech Educal
It was the top performer in terms of messages sent to users on other Online IT D
networks as well as messages sent within its network at 95.S percent and Programs
97.8 percent, respectively. Online IT C
Programs
While rival Verizon Wireless (NYSE:'YZ - n~w~) (VOD.L), the largest from Yahoo!
wireless operator, scored the highest in terms of receiving messages at a
95 percent rate, AT&T Wireless trailed the largest wireless operator by
only 0.2 percent
Opinion & Editorials
Mobile USA, the sixth-largest wireless operator, was one of the worst
BellJJ1onoRQli~.Qush to performers. Only 86 percent of messages sent from aT-Mobile phone to a
qi~QQlJn~.QtQQmp~liliQD user on another network and 87 percent of messages sent to another T-
USA Today (Jan 14 2003) Mobile phone were successfully received.
Congress' phone hang-
.IJ.Q USA Today (Jan 9
2003)
. 8~_hg:QftJ;)gLks C!\I~Jain
WQ..I!s~ NY Daily News (Jan
, 2003)
Feature Articles
Satellites aid modern
treasure hunt Chicago
Tribune (registration req
(Jan 3, 2003)
Requiem for the Pay
9ne Washington Post
(Dec 30, 2002)
Related Web Sites
. LQ.PQw~r
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& Awards
S. Federal
Communications
Commission (FCC)
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The Deutsche Telekom unit (DTEGn.DE) received 92 percent of
messages sent from other networks.
Keynote said it test-sent nearly 26 000 messages in cities around the
country over a period of two weeks in December as part of the study.
Email Story ~ PQ~tLR~Qq_M~g~(Q)PrintStory
Raling$:. Would you recommend this story?
Not at alii - 2 3 -4 - 5 Highly
Avg Rating: 3.82, 33 votes
Exhibit No.1 06
Case No. QWE-02-
W. Hart, Staff Page 8 of 14
3/19/03
Next Story: WiI~!e~~Qp~IC!tQr~_L-Q~e_Sb.Q..rtText Messages-lliqy (Reuters)
http://story.news.yahoo.com/news?tmpl=story&ncid=581&e= 1 &cid=5 81 &u=/nm/20030 I...1/15/2003
Page I of 3
(ilti ~~slj~=1 :~~~:: ~i~~~~~~~:~rom Around the World
WIRELESS SPECIAL REPORT:
Wireless Dead Zones, Echoes and Garble - Is Anyone Listening?
By Shane Peterson
Wireless NewsFactor
February 01 , 2002
bit p:/ /WWW ,\f\IiI?I?~~n? \f\I!:) faG tQL G Q OJ /P?I ll!:)tQry! J 910 Z, h t OJ I
~ Dropped calls, garbled voices and echoes in the telecommunications ether plague
people who use cell phones. Wireless carriers have been hearing complaints about
poor reception and coverage lapses for some time , but they are not saying how
'" long it will take to fix the problems.
~ Guessing how fast the carriers are able to build out their networks is difficult
~ analysts say, but it will happen.
Though new phones hold promise for Still, given the notoriously spotty customer service that carriers provide, they may
clearing up some reception problems, not be in a big hurry to make upgrades and satisfy reception complaints.whether the handsets will arrive first or
the carriers will upgrade first is a
chicken-and-egg question, lOG
analyst Alex Slawsby told Wireless
NewsFactor.
We think about a utopian world that has no dead spots , where everything is stable
and the coverage is omnipresent, and whether we get there in anybody s lifetime is
certainly up for debate IDC analyst Alex Slawsby told Wireless NewsFactor.
Please note that this material is copyright protected. It is illegal to display or reproduce this article without permission for any commercial purpose
including use as marketing or public relations literature. To obtain reprints of this article for authorized use, please call a sales representative at +1
[phone] or visit http://www.newsfactor.com/aboutlreprints.shtmL
Going Wide
While the maturation of wireless networks to 2.SG will extend the coverage that major metropolitan areas now
enjoy to more and more cities, the natural pitfalls facing carriers will not be eradicated. Challenging geography
and technical complexities involved in providing wireless service will always result in dead spots and coverage
lapses, Slawsby said.
Still, over time, the situation should get better.
The coverage will improve through better technology and better network infrastructure " Slawsby said
, "
and as
newer towers get rolled out that are either more powerful or have better ways to hold the signaL"
He added
, "
As the phones themselves improve , in terms of their antenna capabilities, they ll be able to hold thesame quality of service with a lesser signaL" Exhibit No. 106
Case No. QWE-02-
W. Hart, Staff Page 9 of14
3/19/03
http://www.wirelessnewsfactor.com/perl/printer/161 071 12120/2002
Page 2 of 3
Chicken-and-Egg
Though new phones hold promise for clearing up some reception problems, whether the handsets will arrive first
or the carriers will upgrade first is a chicken-and-egg question, Slawsby said.
For example, how fast the carriers upgrade their networks to intermediate steps, such as 1XRTT -- 2.5G for
CDMA (code division multiple access) networks like Sprint s -- will impact how quickly companies such as
Samsung and LG Electronics roll out compatible phones.
Other phone manufacturers, such as Nokia, will wait for the rollout of GPRS -- 2.5G (general packet radio service)
for GSM (global system for mobile communications) networks, such as Cingular s -- before putting their GPRS-
enabled phones on the market
As soon as the network infrastructure is there, the phones will be out there to meet it " Slawsby said.
No Worries?
Whether carriers will rush to upgrade networks in response to consumer complaints is a central issue, said Qjg~
Information Group vice president and research leader Stan Schatt.
None are doing a good job " Schatt said. "I think that carriers are concerned only with getting new customers and
live with the 3 percent or so of churn they get They do not really spend much time worrying about service, and
that explains the horrible customer service evaluations they receive each year.
No Choice
Responding to complaints about coverage and reception issues is not necessarily high on the carriers' to-do lists
because there is not a lot of competition to motivate them, the analyst said.
People right now have little choice in certain regions " Schatt said. "If they want to have a cell phone, they have
to go with whoever has coverage in that area. It's true that the FCC has created a competitive environment, but
choices are not that plentiful, particularly in rural areas.
Mergers to the Rescue
The ultimate answer to cell-phone reception woes may come from moves the carriers are making to merge, Shatt
said, pointing out that more mergers would result in the consolidation of spectrum licenses.
Many leaders in this industry have spoken out and see consolidation as the only solution " he said. "I think that'
what is going to happen , and it will happen this year or next"
Besides consolidation, carriers need more spectrum to solve the reception problem, and that means taking
spectrum from other parties.
More bandwidth is going to have to be taken from groups that will fight to keep it, such as the Defense
Department and educational institutions " he said.
The television broadcasting industry is likely to lose some of its spectrum in the 700 MHz range. I think the
Defense Department will hold onto its very desirable spectrum. It argues that it needs the spectrum until the
present generation of satellites expires , (which will not be) until at least 2020." tmm
~ Copyright 1998-2002 NewsFactor Network. All rights reserved. This material may not be published , broadcast, rewritten or
redistributed in any form without written permission. Please click here for leqal restrictions and terms of use applicable to this site.
Use of this site signifies your agreement to the terms of use. If you would like to reprint content from the NewsFactor Network,
click here for pricing information. Privacy Policv
http://www.wirelessnewsfactor.com/perl/printerI161 07/
Exhibit No. 106
Case No. QWE-02-
W. Hart, Staff Page 10 of 14
3/19/03 12/20/2002
WSlcom ~ Real Time Exchange
mE WALL: STREET JOURNAL.ONLiNE
March 6, 2003
REAL TIME EXCHANGE
By TIM HANRAHAN AND JASON FRY
Reader Shares Cellphone Tales,
See Less of Need for PC Speed
Readers reacted strongly to our column Monday 1 about cellphone service and
number portability. Some shared their tales of wireless frustration and success
while others said we were too soft on the cellphone service providers.
Other readers commented on our item concerning PC speed. Rather than faster
processors, many said they would rather see computer makers focus on sleeker
designs or easier upgrades.
On to the letters. Some comments have been edited. You can always drop us a
line at realtime(~wsj .com2 -- comments will be posted here in Real Time
Exchange on Thursdays. Remember: If you don want your comments
considered for Real Time Exchange, please make that clear.
* * *
Several readers shared horror stories about their cellphone experiences
--
well as tricks they discovered to cut their monthly bills.
Alan J. Jenkins writes: I couldn t stand getting cell bills that were double my
expectations. So three years ago I moved to a nationwide, all-inclusive plan. As
long as I watch my minutes I can predict my bill with great certainty each month.
Steven B. Fink writes: Last August, I bought an AT&T Wireless phone (cool
Nokia model) with a basic $39.95/month charge and more "free" minutes than I'll
probably ever use. But my monthly bill kept coming in near $60. Every time I
called AT&T they gave me some song and dance about my having gone over my
monthly limit. I sawall the minutes on the bill for each individual call but I never
added them up. Plus, I didn t examine the bill that closely. My fault.
F'il Page I of 4
RECENT REAL TIME
EXCHANGES
February 27
, Readers Discuss 'Smart Mobs
February 20
. Floppies Take Another Bow
February 12
, Is the Floppy Drive Obsolete?
MORE
ABOUT THE COLUMN
"'~~--~~~"'" ,'
w w~~.,~,M',w,""~"'~~~'~"~'
Tim Hanrahan and Jason Fry write
Real Time Exchange every
Thursday, posting responses from
readers to their Real Time column
published Mondays. Tim is
technology editor of the Online
Journal. Jason is an assistant
managing editor, and also co-writes
The Daily Fix? sports column. Tim
and Jason previously collaborated
for several years on the Tech Week
column. Write to them at
realtime(g)wsj.com
COMPANIES
Dow Jones. Reuters
AT&T Wireless Services Inc. (AWE)PRICE 5.
CHANGE -
S. dollars 9:40 a.
* At Market Close
But, it turns out that they were also charging me $14.95 a month for mobile-to-mobile minutes, which I never
signed up for. When I pointed this out, AT&T told me that I must have signed up for it, otherwise I wouldn t be
charged for it. My recollection was that the salesman said there were mobile-to-mobile minutes in the
promotion plan but never mentioned there was a charge.
I asked AT&T to remove the charges retroactively to August. They refused. After much wrangling, they
canceled that portion ofthe plan and gave me credit for $24.95. They said if! signed up for another two years
ExhibitNo. 106
Case No. QWE-02-
W. Hart, Staff Page 11 of 14
3/19/03http://online.wsj . com/article -print/O SB 1 046885430740 14400 00.html 3/6/2003
WSlcom . Real Time Exchange Page 2 of 4
they could increase the refund to -- are you sitting down -- $25.00.
Harold Melnick writes: My only big complaint with cellphone billing: Use 'em or lose 'em minutes. I buy a
bucket of 600 minutes each month. If I don t use ', I lose 'em. I usually use about half the 600 minutes each
month. One month I ran over, about 200 minutes -- and my bill doubled.
John Parsons writes: I, too, see all the plans for "Five zillion minutes for $9." but figured out long ago that
I'm generally not awake from midnight to 5 a.m. to use them! There s only one reason the companies use and
advertise such plans: They bring in customers. For nearly the last four years, I've used a very simple plan from
AT&T -- the National One Rate plan. You get 450 anytime minutes anywhere in the country (no roaming, no
long-distance charges) for $60. Thirty-five cents for extra minutes, ten cents per text message. Very simple. No
problems reading the bill, no figuring out what minutes go where, etc. Simple plans are out there if we want to
use them. Evidently, too many of us are consumed by the idea of getting something for a nickel less, and the
companies play to that desire -- quite successfully.
Alexander Sudarma writes: I am heavily dependent upon my mobile phone to stay in touch with my account
management and support team. I am an atypical user of the AT&T $99.99 per month plan, having used no less
that 3 700 minutes every single month since signing up (most are peak).
My bill has dropped from $300 to $100 a month since switching. I have no regrets about signing up for the two-
year contract and losing my previous number. The GPS phone network from AT&T is very reliable. In addition
I don t need a bill of rights since my bill has been a constant $120 a month, inclusive of the data, tax, and phone
plan. I don t see any gimmicks or tricks. Just reliable and good service.
I am sure there are other users that have had positive experiences. I hope this e-mail helps with some positive
perspective.
Donald Eldridge writes: When I purchased my cellphone from Sprint PCS , they promised, among other things
that I had coverage from my home, and I could return my phone for any reason within 2 weeks and get a full
refund. When I returned the phone explaining it didn t inside my home, Sprint said read the fine print, and
insisted I pay an activation fee. I refused to pay. They proceeded to harass me with phone calls on a biweekly
basis for several months. In the meantime I wrote to customer service several times about my problem, and
could not get them to respond in writing. This, over a $35 charge. Finally the calls stopped, but I have no idea
why.
Several readers sent in creative solutions to the portability problem.
Barry Tucker: I give out only my home office line, which forwards calls to my cellphone. While I'm stuck with
a never-ending "land line " bill, I gladly pay the $25 monthly, as I have the freedom to choose a new cellphone
and/or service any time as my needs and provider services evolve, without having to inform anyone who needs
to reach me. I know my method won t work for everyone, but for what it's worth, it works for me.
John R. Henry writes: I agree that I would like my cell number to be portable, but it is not that big an issue. I
have a land line that I use when in my office. When not in my office, I simply activate call forwarding to my
cellphone. If my number changes, as it has eight to ten times since my first cellphone in 1989, I simply change
the call forward info, which takes less than a minute.
Others took us to task/or being too easy on the cell phone carriers.
Bob Tack: Has WSJ also been lobbied by the big three carriers? Your article misses the mark. Why should we
Exhibit No. 106
Case No. QWE-02-
W. Hart, Staff Page 12 of 143/19/03 3/6/2003http://online.wsj.com/article-printlO SB 1 046885430740 14400 00.html
WS T.com - Real Time Exchange Page 3 of 4
accept mediocre service as you suggest? Having number portability is technically very feasible and would save
in time and convenience to the consumer. The benefits far outweigh the short-term costs mentioned.
Blake Allen: You inadvertently and successfully argued why number portability is so important: carriers
pushing the billing envelope.
Aside from noncompetitive voice service, widespread data use won t occur if the carriers can charge fees based
on arcane and outrageous billing structures, which is exactly what they will do in the market vacuum created by
the lack of number portability. The market will respond by simply underutilizing the technology.
AU Vahdat writes: I just read your article on number portability and was disappointed with the conclusions
reached. You imply that neither the additional cost ofNP nor network quality is as important as issues involving
truth in advertising." As a frequent user of my wireless device for business travel and personal use (I have no
land line), I find your prioritization of problems with wireless carrier reversed. In my experience and the great
majority of those around me, network quality is by far the most relevant issue.
I look at NP as a means for the consumer to "voice" issues with the quality of service provided by wireless
carriers. Yes, a one- or two-year contract may impact my decision of "when" I can switch carriers, but the fact
that I have had "" number for the past four years and have provided that to countless business and personal
contacts "decides" whether I leave wireless carriers. When I was a student, I switched carriers three times, each
time based on network quality issues. It didn t matter that I had "great deal" on a service plan. It mattered
whether I could actually use all those minutes.
I appreciate your discussion of the matter, but I believe that you are out oftouch with consumer needs and more
in touch with the wireless carriers. When has the cost associated with providing a service (i.e. local number
portability) not been passed on to the consumer? Last time I checked, most companies don t look out for the
consumer, but their bottom line.
Thank you for your time.
We said a kilobyte was 1 024 bytes. One reader added afootnote.
Chris Inacio writes: Nice little explanation of what a kilobyte is, except that sometimes it isn t -- and sadly, you
should double check the literature from the carrier to make sure. That's because a kilobyte is 2 to the tenth power
024) and a megabyte is 2 to the 20th power (1 048 576), except that sometimes a megabyte is just 1 000 000
when you want to buy a hard-disk drive. Of course, I once had a teaching assistant tell me the difference
between a Ph.D. and a master s in the computer industry is about the same as the difference between 1 000 and
024. (Strangely, he worked on hard-drive subsystems.
* * *
Readers also wrote in about the declining importance of speed in the computer world, and had their own wish
lists.
David Turnbull writes: Nice article on PC styling. I live in a PC world but long for better design, not more
processing power. Give me an Apple Powerbook-like PC notebook with a slot drive DVD-R at I" or thinner and
I'd pay a big premium.
Kevin Hickey: More important than the design and look of the next PC, or its speed above a certain level, is
QUIET. They seem to get noisier all the time, and it has become almost impossible to avoid the sound ofPCs in
Exhibit No.1 06
Case No. QWE-02-
W. Hart, Staff Page 13 of 14
3/19/03 3/612003http://online.wsj . com/article ~rint/O SB 1 046885430740 14400 00.html
WSlcom ,Real Time Exchange Page 4 of 4
many rooms in our house, even if the PC is in the next room.
Jeff Smith: I agree with most of what you say, but at least in my case, the speed is relatively important. While I
don t do anyone thing that requires massive amounts ofCPU, I do like to do lots of things at once. Then, I can
use all the power I can get. I guess what I really need is a powerful multitasking OS. While I find that Mac OS X
does very well in that regard, Mac processors are a bit behind Intel's speed. It's a vicious circle (no, I don
particularly want to move to Linux).
Tara C. Woods writes: I would like PC makers to focus on making it extremely easy to switch to a new
computer, taking all of your files with you. Currently, while there may be an easy way of doing this, I, your
average consumer, am not aware of it. The thought oftrying to transfer all of my important files, all of my
important e-mails, all of my software to a new computer is so overwhelming that I won t buy a new one even
though I'd like one.
I can t be alone in this.
* * *
And lastly, a letter about the spam of the week.
Robert G. Doucette writes: At least Gevalia has a real product and a real offer. If I must get spam, I prefer a
coffee ad rather than pix or information on how I can expand some body part. Now as for the offer itself, $15 a
pound for mediocre coffee is a little high, but throw in a coffee maker and I'm interested.
* * *
You can get an e-mail message when Real Time is published by visiting our e-mail setup page . Or catch up on
the latest Real Time columns . Or, of course, drop us a line at realtime0Jwsj.com
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Updated March 2003
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Exhibit No. 106
Case No. QWE-02-
W. Hart, Staff Page 14 of 14
3/19/03
http://online.wsj.com/article-'printlO SB 1 046885430740 14400 00.html 3/6/2003
Exhibit No. 107
Case No. QWE-02-
W. Hart, Staff Page 1 of 10
3/19/03
one
guide
ou can get a cell phone free (after a generous rebate), and a
plain corded phone for less than $10. A long-distance call can
cost less than' a nickel a minute; a cellular call, about a dime.
And when once only a single matronly company handled all your
calls, now dozens compete to provide services Ma Bell never imagined.
Sure sounds like a bargain. But a different picture emerges when you
take a closer look, as we did to prepare this special section. Not only do
we cover every major aspect of cell phones-safety, service, rates, and
phones-we also help you compare conventional long-distance rates.
CELLULAR, THE SERVICE YOU LOVE TO HATE
The cell-phone industry has exploded: There were 135 million customers
in June 2002, compared with a mere 8.9 million a decade earlier. Monthly
bills for local service declined in that same period, from an average of
$68 down to $47. But some companies haven t mastered customer service.
Little wonder that as many as one-third of all cell-phone users say they
ready to switch carriers. i Getting a better deal is as easy as 1.
Find a carrier, page 15. Our survey of 21,000 subscribers provided our
first Ratings of carriers. One company consistently topped the list.
Choose a plan, page 18. Find the best deals among the ever-larger
, buckets of airtime minutes that companies offer.
; 8 Select a phone. page 21. Which new cell phones have fine voice quality?
Long battery life? Buttons that your fingers can easily push? Check the Ratings.
THE 911 EMERGENCY, page 12-
, Many people buy a cell phone just to have it on hand in an emergency. But the
system doesn t always work. We know. We tried it. We explain why cell phones
don t always connect a 911 call and how you can better the chances of your
emergency call going through.
ARE CELL PHONE~ SAFE? page 24
. For more than a decade, researchers have been trying to determine whether
. radiation from cell phones increases the risk of cancer or other diseases. The
answer so far: a resounding "we don t know." The report describes the smartest
ways to minimize exposure to radiation for you and your children
PLUS: WHERE ARE THE BEST HOME LONG-DISTANCE, DEALS? page 25
. Rates and deals abound, but they can change at any time. We give you a survival guide
to the new world of long distance: the best kind of service for you, and the best rates.
j~~~~;
J" \':cU'i'
," .
Cellular. Companies. Handsets. Emergencies. Safety. Long distance. Rates
ill
:11
ill
Will your cell phone
rea
You can t b~sure. Our research
produced some disturbing results.
, ne in three people who own a
cell. phone say they bought
mainly for safety-'-to have if
they need to call 911 from the
side of the road or a dark street at night.
And at least one-third of all 911 calls are
now made on cell phones-just under 57
million calls in 2001, according to the
Cellular Telecommunications & Internet
Association (CTIA), a trade group.
AI; large as that number is, it's not the
total. Some cellular calls to 911 never get
through. The number of failures cant be
known; a call that goes nowhere can t be
tracked. Our research does give some
dimension to the problem, however.
When we surveyed 11,500 subscribers
to ConsumerReports.org last fall, 1,880
said they had tried to call 911 using a cell
phone in the previous year. Some 15 per-
cent of them, or 280 people, said they had
trouble connecting; that includes 4 per-
cent who never got through at all.
For most of those, a weak signal, a bad
connection, or some other phone-system
problem seemed to have caused the trou-
ble. Trouble for the remaining respon-
dents apparently involved the emergency
system: excessive rings, unanswered calls,
or being left on hold.
WIfeless 911 calls in California seem
especially problematic, according to our
12 CONSUMER REPORTS. FEBRUARY 2003
Exhibit No. 107
Case No. QWE-02-W. Hart, Staff Page 2 of 10
3/19/03
survey. There, nearly 12 percent of calls to
911 never succeeded; one-third of our Cal-
ifornia respondents said they encountered
some difficulty getting through to 911.
When we went into the field, we found
problems with the system. With a signifi-
cant number of the calls we made to real
911 centers, the phop.es did not do all we
believe they could to make calls connect.
As anyone who has used a cell
phone knows, dropped calls and bad
connections area part of everyday life.
Consumers know when they pick up a
wireless phone they re making a trade-off
between mobility and service quality:'
says Travis Larson, a CTIA spokesman.
But shouldn't 911 calls be different?
After all, the landline phone system has
1~'W~ Q;fiiti!a.Jto'reacFi911.? 'C'-'--"'--'c~.
"'.
-,o,':";:~~~~.._.. _"M
~;_"..;;...,;~,,-,-,;..;;",:,,~;,_
:i:::,
::,,
""::"'::'::':C:::::
::::::'-'-"'-::.,
::C:~.
:':':':
\ The experiences of 1,880 ConsumerReports.org subscribers who tried to call 911 on a
cell phone in the previous year.
No trouble reaching 911
III Reached 911 with difficulty on
own phone
Never reached.
C'--..
. Reached~~U-~n another cell
phone
",-,- ...__._--,,----_._~--~,_.-- ""'-----.--"--"---,-.." ""-- --'-~"-.-"-""'---'--"'" "...,
been especially designed to put through
essentially every 911 call. And the Federal
Communications Commission (FCC) has
a regulation designed to be a kind of
safety net for cellular (otherwise known
as wireless) 911 calls, to improve your
chances of getting through.
SYSTEM REALITIES
The wireless phone system in the u.s.
often handles a call to 911 just like any
nonemergency call. Here s how:
The phones can be all-digital or, more
typically, digital with analog calling as a
backup. Analog is the common wireless
language, compatible with any carrier
that provides such service. (Phones with
analog and digital modes are known as
, -
" "'1
85%
;;;
8 '
""'----,,'--'-,..--..---
dual-band, tri-mode, or multinetwork.)
Most wireless phones in the u.S: use one
of four incompatible digital modes.
When your phone is in digital mode, it
can work only with your home carrier
(the company you use for service) for any
call-including those to 911-unless the
home carrier has a roaming agreement
with another carrier.
- Phones that can work in both digital
and analog modes give you more options.
Analog provides that safety net for emer-
gency calling. Indeed, the principal FCC
regulation governing wireless 911 recog-
nizes the importance of the analog mode.
The regulation, which took effect in
2000, says that whenever a wireless phone
dialing 911 in analog mode can t get
through via its home carrier, that phone
must seek another signal, even if it's from
a competing carrier, to quickly establish a
voice connection.
The FCC concedes its rule is only
small step toward improving 911 service.
Multinetwork phones, which are normally
in a digital mode, aren t required to switch
to analog to make a 911 call. There are no
regulations for digital-only phones, such as
the kind offered by T-Mobile and Nextel.
TESTING THE SYSTEM
Last summer, an engineer working for the
Wireless Consumers Alliance, a nonprofit
advocacy group, used our labs to demon-
strate that wireless phones dialing 911 in
analog mode and covered by the FCC reg-
ulation may still fail to connect.
That led us to conduct our own real-
world tests to find out what would hap-
pen in places where a home carrier has a
. weak signal but competing carriers have
strong signals.
We ran two rounds of trials making 911
calls to active emergency-communications
centers. We had the full ,cooperation of
local officials in Steuben County, Ind.,
and Sullivan County, N.Y., and were
assured that our testing did not interfere
with response to real emergencies.
Both areas receive a heavy influx of
travelers and vacationers, people who
are likely to be far from a home calling
area. Major highways cut through both
counties. Steuben County is well served
by a local carrier that uses the same
digital system as AT&T Wireless; service
from Verizon Wireless and Sprint PCS,
however, is marginal. In the area of
Sullivan County where we ran our
tests, the reverse is true: Verizon and
Sprint have strong signals, but AT&T is
marginal.
All the phones we used in the tests have
analog and digital capability. According to
FCC registration data, only one of the
phones we used was made before the 911
calling regulation took effect. The manu-
facturers certified that the phones meet all
applicable FCC rules.
In Steuben County, we made 14 test
calls on 12 different phones with 'accounts
from Sprint and Verizon. In Sullivan
Who prQvides al1
analogsafetYl1et?
Only some major national wireless.
service providers offer an analog safety
net as well as digital calling.
COMPANY III-
(jJ Digitat-format abbreviations are defined on page 16.
Exhibit No. 107 I
Case No. QWE-02-
W. Hart, Staff Page3 of 10:13/19/03 1
!-I'
, ~
iili
County, we made 7 test calls on 6 phones
with accounts from AT&T and Cingular.
Overall, of the 18 phone-and-service
combinations tested, 9 calls failed to con-
nect to 911. In every instance, there was a
strong signal from another carrier the
phones could have used.
In a separate test, some phones con-
nected to 911 on a strong analog signal
from a competing carrier when they
couldn t find any home-carrier signal:
Our two field tests represent a small
picture of a situation that can change
with time and location. But we believe
that the results illustrate a significant
problem-a phone s inability to switch
from a too-weak home-carner s signal to
a strong signal available from another
carrier.
':;
I,::
ill
WHAT NEEDS TO BE DONE
The 911 system' needs fixing. The FCC's
911 regulation is out of date for today
wireless phones, which increasingly
depend on digital-not analog-tech-
nology. When the rule was written, fewer
than half of the wireless customers used a
dual-mode phone; that has now sur-
passed 87 percent.
The FCC's regulation also defies
general common sense;', says Roger
Hixson, technical issues ' director for
the National Emergency Number
Association" the nonprofit umbrella
organization for u.s. emergency call
centers. Hixson explained that phones
that can t connect in a digital mode or
don t automatically roll over to analog
for an emergency call "subvert the idea
that any call dialed to 911 has to be han-
dIed by the wireless carrier and brought
into the call delivery network."
The FCC needs to impose higher
standards for the wireless 911 system. A
reasonable way to start could be to
change the current regulation to apply as
well to multinetwork phones dialing 911
in digital mode. If the call cant be quick-
ly completed through the home carrier,
the phone should seek another signal.
Manufacturers and carriers need to
invest in safety. We think carriers should
make the existing 911 system work more
effectively, which may require some
reprogramming of the phones.
The FCC must ensure that digital
phones are more compatible. The FCC
voted last fall to phase out its require-
FEBRUARY 2003 0 CONSUMER REPORTS 13
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phase, which supplies the caller's number and location of the cell tower
relaying the call.
;.', -
Margie Braden, a 51'-year-old schoolteacher, picked up her daughter
Angela at Houston s Galleria mall one night last summer and headed for
the freeway. Severai minutes later, Angela felt their car swerving.
Mama, what's going on?" she asked. Angela, who is 28 and blind,
feared a heart attack or stroke. Her mother couldn t speak but somehow
pulled the car over and stopped. Angela reached for the ignition key-
I and her
cell phone.
The Greater Harris County 911 Emergency Network, the third largest
in the nation after New York and Chicago, picked up
Angela s call; the operator asked for her location.
Angela could say only that she was on Interstate 10
eastbound, about 5 minutes from The Galleria.
Can you just track me?" she asked.
They couldn t. It took the efforts of a passing
good Samaritan to help rescue the Bradens. Margie
Braden had suffered a stroke.
The Bradens' experience typifies a problem with
cell phones and emergency calls, one that govern-
ment and industry have tried to address for the
past six years. Known as Wireless Enhanced 911, or
Wireless E911 for short, its goal is to ensure that
emergency workers can precisely locate callers
using a cell phone.
Wireless E911 has been on the drawing board since
1996, but it's still not functional. In October 2001, the
I Federal Communications Commission granted delays to six major carri-
j ers. The FCC's latest deadline is now December 2005.
Harris County, where the Bradens live, implemented Wireless E911 last
I August, but
orlly for properly equipped phones conneCted to Verizon
Wireless. The Bradens didn t have such a phone. By press time, the coun-
ty expected Wireless E911 to work with all carriers.
Wireless E911 also covers Rhode Island and some counties in Illinois,
Indiana, North Carolina, and Pennsylvania. But two-thirds of the nation
000' primary call centers haven yet implemented the preliminary
WHAT'S TAKING SO LONG?
" Technological difficulties. A few carriers had to drop systems they
hoped to adopt because they weren t precise enough. Not all carriers
are using the same technology to make Wireless E911 work. Some will I
have phones that can use positioning data from satellites. Other carriers
will triangulate a caller s location from the
strength and timing of signals at different towers.
Still others may use a hybrid system.
But there is no requirement that the different I
technologies work on 1T!0re than one carrier sys-
tem. That means emergency call centers must pre-
pare for all approaches. For consumers, it means
some phones won t work well-or work at all-with
other carriers systems.
" Call-center upgrades. Mimy emergency call cen-
ters need substantial updating first. They must also
come up with the money to modernize, typically
through taxes and surcharges whose funds are
often raided. In 2001 in California, $63 million allo-
cated for 911 use was borrowed to help baJance the
state budget. In New York, an audit last year
revealed that $162 million earmarked for Wireless
E911 had been diverted.
r- Lack of coordination. Local phone companies and equipment manu-
. facturers have been slow to do their part. No one is effectively coordi-
nating industry, calling centers, and carriers on a national level, accord-
ing to a recent report commissioned by the FCC.
The Wireless E911 system has become a complicated puzzle, made
more complex by the carriers' different transmission technologies and
approaches to finding callers. It will take strong leadership from the FCC
and a great deal of effort from industry to solve the puzzle on time.
HERE I AM Wireless E911 will be
able to pinpoint a caller s location
something that isn t a reality now.
Exhibit No. 107
Case No. QWE-02-
W. Hart, Staff Page 4 of 10
3/19/03
ment that some wireless providers offer
an analog backup signal. We think that
was a mistake because the agency did not
, also require companies to make their dig-
ital technologies talk with one another.
Simply allowing analog to fade away
removes the principal common wireless
language. In the end, you will have less
assurance than you do now that your
phone will get through to 91l.
The industry needs more diligent
oversight. The FCC has the industry on
an honor system. The agency does no
testing to monitor compliance with its
911 rule, says Steven Dayhoff; an electron-
ics engineer at the FCC labs. Of wireless
companies and 911, he says, "We assume
that they have the software or firmware
for call-handling that theyre supposed to
have:' He noted, however, "We have not
- tried it out.
At a minimum, the FCC should run its
own tests to see that phones perform as
14 CONSUMER REPORTS FEBRUARY 2003
they should-and as mapufacturers have
certified-when dialing 911.
.Last November the Wireless Consum-
ers Alliance filed a series of class-action
suits in federal and state courts against
various wireless phone manufacturers
and service providers, maintaining that
they knowingly sold phones that did not
comply with the FCC's regulations. The
. suits seek injunctions against the sale of
the phones, as well as monetary dam-
ages. Consumers Union, publisher of
CONSUMER REpORTS, is not a party to
those suits.
WHAT YOU CAN DO
.. Do not dial 911 to test the system. It's
unethical and, in many areas, illegal.
.. Avoid digital-only phones or carriers if
you want a cell phone for emergencies.
See the table on page 13.
.. Some phones that use the Code
Division Multiple Access (CDMA) digital
format can be forced into analog by the
user. Check the user s manual.
.. If you don t use your cell phone every
dily, make sure thilt its battery stays
charged.
.. While driving, leave the phone on and
its antenna extended. That may shorten
the time needed to reach 91l.
.. If you have trouble connecting to 911
from inside a car, get out, if possible, and
. call from the side of the road; that may
help you get a better signaL
.. In an emergency, ignore a "no service
message on the phone s display. Try the
call anyway.
.. Tell the FCC what you think of the
present wireless 911 system. 1:0 register a
complaint or voice your opinion, contact
the agency at 888-225-5322.
For mote information about wireless
calling and advice on how and where to
complain about service, go to our advoca-
cy web site, www.consumersunion.org. ($I
--------~
Exhibit No.1 07 , ';' Case No. QWE-02-25 I
W. Hart, Staff Page 5 of 10 il
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Whether you re buying your first
cell phone or looking for something
better, follow these basic steps:
. First, pick a company that
delivers good service in your area.
This report addresses service and
includes Ratings of the major
providers,in six metropolitan areas.
(I Second, determine which calling
plan suits yourneeds The reportQn
page 18 will help youpicktheright
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plan by identifying key (;ostfactqrs
, and describinge)(pen&iv~extrasyou
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Only after Y()LJ'\l~p:itk~dacO!tli~V
and a plan, huythepP9F\e.T,h,e
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report on page21willhelpY9ufJi-Id"
the best oneforyourneecls
. '
More and more, people
are treating their cell
phone like any other
phone. A Roper survey
last year found that 3 in
Americans ages 18 to 29 use a wireless
phone as their primary phone. '
But for all the mobility and flexibility
that wireless offers, it can clearly
expensive and problematic. The average
wireless-phone bill is now about $47 a
month. The amount of discontent with
cell-phone companies is high by all
the measures we ve seen-most recently,
our survey of 21,944 subscribers to
ConsumerReports.org conducted last
fall. One-third said they are seriously
considering a change in wireless-phone
companies. Most subscribers who already
had switched said they wanted better
service or a better price.
Sound familiar?
HOW CARRIERS COMPARE
Qur survey yielded our first brand-name
r servl e
Ratings of cell-phone companies: AT&T
Wireless, Cingular, Nextel, Sprint PCS,
Mobile, and Verizon Wireless. The sur-
vey covered the Chicago, Dallas, Los
Angeles, New York, San Francisco, and
Washington, D.c., metro areas.
Consistently good. Verizon Wireless
landed at 1f1e top of the rankings in each
area covered. However, the overall satis
faction with the companies-Verizon
included-is lower than for most other
business and services we rate, such as auto
insurers or hotel chains. The highest over-
all score any wireless company received
was 72; the lowest, only 54.
Quirks among carriers. All six com-
panies showed significant problems in
our survey. Here are some examples:
.. Cingular customers (and to a lesser
extent, AT&T customers) complained of
overloaded circuits.
.. Nextel complaints included lack of
service in New York and Los Angeles, poor
customer support, and billing problems.
.. Sprint had problems with dropped
calls, 'plus the worst customer support.
.. T-Mobile 'customers in Chicago and
New York cited problems connecting.
We expect to repeat this survey in the
future, tracking changes in satisfaction
scores and ranking carriers in other cities.
USING OUR FINDINGS
We can t say how good any of the wireless
companies are in other cities. Still, if you
after better service, consider looking first at
Verizon or one of the other companies
ranked high by our respondents. As the
report on page 18 explains, rates are fairly
competitive among the big companies;
that makes good service paramount.
Also, it s important to ' follow these
steps to increase your odds of getting
good service:
.. Before you sign up with any company,
seek recommendations from friends,
neighbors, or business associates who
drive the same roads and walk the same
sidewalks you do. That remains the best
way to find a company that provides good
FEBRUARY 2003 CONSUMER REPORTS 15
II'
, ~
Iii
service in your part of the world.
~ Next, pick the right calling plan. Focus
less on the big bucket of minutes trum-
peted in ads and more on details about
night and weekend calling, roaming, and
other specifics. The report that follows
(see page 18) offers details.
~ Take advantage of the trial period. Most
carriers offer at least two weeks for a test
drive before a stiff early-termination fee
kicks in. Don t hesitate to cancel the con-
tract if performance falls below your
expectations during the trial.
WHERE THINGS GO WRONG
Overall, our survey results track closely in
three areas with what other private
research and government agencies have
been finding.
Billing problems persist. Eleven per-
cent of our respondents said they had
serious or persistent billing problems in
the past year, such as overcharges or mis~
takes. And 30 percent said they had called
the company because of a question or
complaint about billing. Of the readers
who switched wireless companies, 20 perc
cent said that billing and other customer-
service problems were key reasons.
Customers of Cingular, Nexte!, and
Sprint said those carriers were less
responsive than others to problems.
The Federal Communications Com
mission receives its share of complaints
about cellular service. Its data show that
Sprint receives a higher rate of billing
complaints than do larger compani~s. For
the year ending last September, the FCC
Key words.
ANALOG The original type of wireless tech-
nology. Although largely supplanted by various
digital formats, analog remains the common
format supported by cellular providers and is
essential for emergency calling, in our view.
CDMA Code Division Multiple Access. The
digital calling format used by Sprint, Veri;zon
Wireless, and some regional carriers. CDMA is
incompatible with other digital formats. It
assigns a digital code to each caller to identi-
fy that person and keep the calls separate.
CEllULAR Also known as mobile or wire-
less. It's a call-handling system composed of a
network of antennas, each covering a small
area Of cell. A call from your cellular phone is
relayed from antenna to antenna as needed.
CELLULAR BAND The original part of the
radio spectrum allocated by the Federal
Communications Commission for mobile-phone
transmissions. Companies using this band
must provide some analog service, under FCC
regulations. See also PCS band.
DUAlBANO Denotes a phone that can oper-
ate in the cellular frequency band as well as
the PCS band.
DUAL MODE,TRH"ODE, OR MULTINUWORK .
Denotes a phone that can use at least one dig-
ital format as well as analog. Tri-mode phones
operate digitally in both the cellular and PCS
frequency bands.
\iSM Global System for Mobile Communi-
cations. A digital format used widely in Europe
and Asia. In the U.S., only T-Mobile and some
AT&T and Cingular phones use GSM. It keeps
calls separate by assigning a slice of time to
each caller.
HOME CARRIER The company you selected
to provide wireless phone service.
lOtH Integrated Digital Enhanced Network.
A digital technology that's similar to, but
incompatible with, GSM and TDMA. Used only
by Nextel in the U.
pcs BAND Personal Communications
System band. A portion of the radio spectrum
allocated to mobile-phone transmissions. PCS
is a different set of frequencies from the cellu-
lar band. Sprint and T-Mobile are the largest
companies operating solely in the PCS band,
although other carriers use it for some cus-
tomers. Companies using the PCS band are not
required to provide analog service, although
Sprint provides it via roaming agreements.
ROAMING The common practice of seeking a
signal from a "partner" carrier to handle a call
when you re outside your home carrier s area.
SAR Specific Absorption Rate. The number,
available for every cell phone, refers to the
relatiVI! amount of radio-frequency energy
absorbed by the body of a person using a wire-
less handset. How meaningful is the SAR? See
the report on page 24.
SMS Short Message Service, also known as
text messaging. A rapidly growing new use for
. cell phones. SMS lets you send short text mes-
sages from one cell phone to another or from
the Internet to a cell phone. You can compose
a message without being on the wireless net-
work, thus saving airtime minutes.
TDMA Time Division Multiple Access. The
digital format used mainly by AT&T Wireless
and Cingular. Incompatible with other digital
formats, TDMA is similar to GSM.
16 CONSUMER REPORTS FEBRUARY 2003
Exhibit No.1 07
Case No. QWE-02-
W. Hart, Staff Page 6 of 10
3/19/03
received 1,488 billmg complamts con-
cerning Sprint and 1,013 concerning
Verizon. And Verizon has more than twice
as many customers as Sprint.
Other billing issues involve sharp
practices. In one , instance, Alltel, a
regional carrier, had been padding bills
in North Carolina with a $2.47 montWy
network surcharge." A consent agree-
ment with the state attorney general
ended that practice. Alltel, admitting no
wrongdoing, also gave the state $750,000
in equipment and service. Customers
could choose between dropping the sur-
charge or having extra minutes added to
their calling plan.
Service remains spotty. A significant
number of respondents reported repeated
problems with their cellular service in the
week before our survey: 10 percent said
they couldn t get service; 14 percent said
they experienced dropped calls, and
percent said their calls were marred by
severe static or difficulty hearing the other
party clearly.
Poor phone service was the leading
reason our respondents switched pro-
viders; 45 percent cited it as important.
The FCC receives more than 100 com-
plaints about service each month. Sprint
alone was the subject of 975 complaints
relating to service last year.
In . California, the Public Utilities
Commission is investigating allegations
that Cingular had inadequate coverage
and call capacity in the state~
Companies make it hard to switch.
One-third of our survey respondents said
they were seriously considering changing
cellular companies. Most hadn't done so,
they said, because they didn't want to get
a new phone number or because they
were still under contract to their wireless
company and may have faced a ~arge
early-termination fee.
The inability to keep a cell-phone
number if you change companies is a
longstanding annoyance that the FCC has
announced will end in November.
But early-termination fees remain a
common practice that deters people from
changing companies.
Iowa sued u.s. Cellular, the state s lar-
gest cellular provider, over early-termina-
tion fees of as much as $300. An out-of-
court settlement has capped the fee at
$150 and has the company prorating it.
The carrier admitted no wrongdoing but
agreed to pay $400,000, which went in
part toward consumer refunds.
Continued on page
Cellular service
Exhibit No. 107
Case No. QWE-02-
W. Hart, Staff Page 7 of 10 3/19/03 ,
Iii
' I
WHO'S MINDING THE STORE?
The FCC has never regulated the wire-
less-phone industry as closely as it has
other phone services. Thomas J. Sugrue,
head of the FCC Wireless Tele-
communications Bureau, says the agency
is philosophically opposed to regulating
cellular service with too heavy a hand.
Competition works better than a ton of
regulation;' he told us in an interview.
Last fall, however, the FCC scrapped
two regulations that have little to do
with fostering competition and that
may hurt consumers. Companies oper-
ating in the cellular frequency band can
phase out analog service in favor of all-
digital technology. As the report on
page 12 explains, analog service is a
common cellular language, making it
especially crucial for emergency calls.
Also, carriers are no longer, obliged to
supply coverage maps.
Maps can help consumers choose
among carriers. Senator Charles E.
Schumer (D-), ina recent letter to
FCC Chairman Michael K. Powell, called
the decision to stop requiring maps "
step in the wrong direction;' He called on
the FCC to work with wireless providers
to devise a standardized map showing
signal strength throughout a city "
allow consumers to compare which
provider has the best service in areas of
greatest import to them;'
Absent strong FCC oversight, states
, attorneys general and private lawyers
have stepped into a void. More than a
score of states are looking into billing,
marketing, and advertising practices at
several national carriers. The companies
say they are cooperating.
California is the state everyone is
watching. In 2000, its Public Utilities Com-
mission began drafting a consumers
' "
bill
of rights" for all telecommunications serv-
ices, including wireless. Among other pro-
visions, the bill would require carriers to: '
~ Fully disclose rates, terms and condi-
tions in clear language and readable type
on the Internet in downloadable form.
~ Protect privacy by,shielding personal
information and customer records.
~ Provide accurate bills that label services
and fees clearly and offer prompt and fair
resolution for billing problems.
If the bill is adopted, it could well
change the carriers' business policies
everywhere they operate. Gi)
18 CONSUMER REPORTS FEBRUARY 2003
The person who uses a
cell phone to make calls
close to home mainly
on nights and weekends
needs a very different call-
ing plan from the person who
calls everywhere day or night. Family
members who want to stay in touch via cell
phone need yet another kind of plan.
The typical calling-plan ad headlines
the bottom line: the total number of
minutes you get. But you want to get past
that and into the details-where arid
when those minutes apply and where you
face extra charges. With most plans,
expect at least a one-year contract with a
hefty early-termination fee.
The chart on page 20, developed with
the help of the TeleBright Corp., a
Maryland-based phone-rate tracking
company, provides some examples of
how actual per-month costs vary for
seemingly similar plans. Here s a run-
down of the main points to consider
when you re shopping around:
Anytime minutes. If you use a cell
phone throughout the day, and on
weekdays as much as on weekends, then
you'll want to' choose a plan that's gener-
ous with airtime you can use anytime;
Exhibit No. 107
Case No. QWE-02-
W. Hart, Staff Page 8 of 10
3/19/03
hat
As a rule, the more anytime minutes
included in the basic monthly charge,
the better.
Night and weekend minutes. If most
of your cell-phone calls happen after the
workday ends and on the weekend, then
look for a plan that includes ample night
and weekend minutes. Many calling
plans, even inexpensive ones, provide at
least 15 hours (900 minutes in cell-phone
parlance) of night and weekend calling
per month. Some offer unlimited usage.
Nights don t always begin when the
sun sets, days don t start at sunup, and
weekends may not begin at 12:01 a.m. on
Saturday. For example, AT&T Wireless
and Verizon Wireless both say that night-
time calling applies from about 9 p.m. to
6 a.m. the following day; Cingular
nighttime period ends at 7 a.
If you exceed your allotment of min-
utes, you ll run a tab of 20 to 60 cents per
minute, depending on the plan.
Besides knowing when you ll use the
cell phone, you need to settle on the cor-
rect calling area. Here are the choices:
Local. The most limited,type of plan,
this typically encompasses a metro-
politan area and its environs. It usually
includes more anytime minutes than
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similarly priced plans covering a wider phone. TracFone, sold in retail stores for phone ring for more than 30 seconds.
area, but it imposes a roaming charge out - $100 or less, uses replenishable cards in Mixed signals. Determining which
side the home calling area and an extra various denominations: A 30-minute card rates and services are in effect when trav-
charge for long distance. costs $18 (or 60 cents a minute); a 2~- eling can be trying. Verizon literature, for
Regional. This covers a multistate hour card, $40 (27 cents a minute). Long example, offers the following convoluted
area, such as the Northeast. It typically distance is included. With most plans, you explanation of how to interpret the indi-
includes fewer anytime minutes than a have up to 60 days to redeem minutes. cators on your phone s display:
local plan, but waives roaming and long- When the Roam Indicator isn t dis-
distance charges for calls made within the ADDING IT ALL UP played or the banner display' reads
home area. For calls outside the home As the chart on the following page shows, Verizon Wireless, home rates apply. When
area, roaming charges range from about you can save money on a plan by consid- the Digital Indicator is on, digital features
50 cents to 79 cents per minute. ering charges other than the basic month- and services are available. But when the
Overall, a regional plan may be a bet- ly fee. For example, among the family Roam Indicator flashes or the banner dis-
ter deal than a local plan for people who plans, the AT&T plan has a monthly fee of play reads Extended Network, then "your
don t use a cell phone enough to take $90; the comparable T-Mobile plan, $70. home airtime rates still apply, but other
advantage of a loc;u plan s time allotment. But the AT&T plan would cost our typical additional features and services may not
That s why, in the examples on page 20, family of four $71 more per month than be available." When the Roam Indicator is
we don t show local plans. "
" '
solid or the display reads Roaming, then
National. Designed for people 28% of the
, "
roam rates apply and fea~ures and servic-
who travel a lot, national plans are , sl.Jbscribe.rsvvesurv~yec:lJast fall
es are not av~able.
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places where you must gain access the T-Mobile plan ($161 vs. $90), mainly airtime charges), unlimited calling to cell
through another provider s network. because the AT&T plan has additional phones using the same provider, that
Depending on your calling patterns, a roaming charges plus higher fees for the aren t covered by a family plan ($4 per
provider s national plan may occasionally third and fourth family members. month or more), wireless Internet ($5 and
end up costing less per month than its Among the regional plans, which were up per month plus airtime), text messages
competing regional plans. chosen to suit the needs of casual users, (10 cents each or $3 per 100), roadside
Family plans. These let parents and the $50 T-Mobile plan ended up costing assistance ($3 per month), wireless-phone
kids pool their monthly minutes for use more than ,all the other plans, even insurance ($4 per month), customized
on several phones as long as the total for though it offered 3,000 peak minutes; ring tones (99 cents each) and on-
everyone s calling doesn t exceed the casual users, who were assumed to use demand games (99 cents each).
monthly quota. Typically, the monthly only 150 peak minutes monthly, wouldn'
charge for the first phone is commensu- use most of those minutes.
rate with the minutes of airtime; you add
more phones for, say, $10 a month each.
Some family plans offer a discount. on a
second or third phone. Depending on the
provider, you can choose from plans that
have a national, regional, or local scope to
reflect your familys calling patterns. To
avoid overcharges, you d need to keep
track of the time each family member
uses-not a simple matter.
Prepaid calling. Similar to using a
long-distance phone card, prepaid calling
does not involve a long-term contract.
You buy a phone and then buy time as
you need it. It's most useful if you just
want a phone for an emergency, don
want to enter into a contract, or have
problematic credit. Verizon FreeUp,
AT&T's Free2Go, Virgin Mobile Top-Up,
and other plans offer fairly mainstream
phones, although features such as three-
way calling may not 'work with a prepaid
READ THE FINE PRINT
When you examine the details in a calling-
plan contract, you may find provisions
that can nickel and dime you. Here are
some examples:
Downsizing minutes. By billing in
whole minutes-counting even a frac-
tion of a minute at the end of a call as a
full minute-wireless providers pad
your calling time and deplete your
monthly time allotment. They can also
increase usage times by billing you from
the moment you push the Send button
rather than when the call is actually
answered, and by continuing to bill for a
few seconds after you push the End but-
ton. When such increases also incur
long-distance and roaming charges,
costs can rapidly multiply. Some
providers, such as Cingular, may also
charge for unanswered calls if you let the
, ,~--_._,
Exhibit No. 107
Case No. QWE-02-
W. Hart, Staff Page 9 of 10
3/19/03
iii
I.,
:11
, j
USE THE GRACE PERIOD
Some wireless providers offer a grace
period during which you can try the serv-
ice and cancel, paying only the activation
fee and for the airtime you ve used. Take
advantage of the grace period even if it
lasts only a week to 10 days. If you can
get good service where you want it, cancel
and look elsewhere.
RECOMMENDATIONS
Use the examples shown on page 20 if
you re new to cellular and want to find
the right calling plan. If you want to
change an existing plan, some carriers let
you without paying a penalty for early
termination if you commit to a full term
for the new contact. When your contract
is up, you have some
' '
negotiating power.
Carriers are often willing to offer deals if
you threaten to switch. If you do change
carriers, however, you ll have to get a new
number and phone. (i)
FEBRUARY 2003 CONSUMER REPORTS 19
ill
ill
III
Exhibit No. 107
Case No. QWE-02-
W. Hart, Staff Page 10 of 10
19/03
This table can help you home in on the most economical cell-phone plan
by seeing how closely our examples fit your calling patterns. We asked
TeleBright, a leading source of information on wireless service plans, to
calculate typical monthly costs. We are not rating the calling plans. The
figures shown here are meant as examples for three types of user:
. The casual user who makes 5 hours of calls monthly, including 45
minutes of long distance.
. The frequent user who spends 20 hours per month on a cell phone,
ith 80 minutes of that -time long distance.
. The family of four who together make more than 30 hours of calls
monthly, 160 minutes of which are long distance.
We assumed that all three types of users made most of their calls
from within their home area. The resulting cost differences, shown
in The Details chart below, underscore the importance of carefully
matching your expected calling patterns with a plan s quota of peak
and off-peak minutes as well as with its long-distance and roaming
provisions. In The Bottom Line bar graphs, we show the cost of both
national and regional plans for the casual user. That's because for some
wireless service providers, the national plan is not much more expen-
sive than the regional one. For the frequent user or family of four, that'
not the case.
The rates and plans below are for customers in the Chicago metro-
politan area as of mid-November 2002. The particulars for each plan will
change, and rates may differ in other areas.
What the numbers mean
Monthly fee is the monthly cost for included peak use (typically during business
hours) and off-peak use. Cost per extra minute is the per-minute charge for calls
exceeding the airtime included in the plan. Start-up fee is what it costs to activate
a new account Early cancel fee is what it costs for early termination of a one-year
contract These figures are based on rates in effect in mid-November in Chicago
and do not take into account extra minutes included in promotions or special
offers; all the rates are subject to change. Various carriers define peak and off-
peak periods differently.
20 CONSUMER REPORTS FEBRUARY 2003
Comparison of Wireless Data Plans
Approximate
Monthly Price $20.$30.$40.$60.$75.$80.$100.
8 MB 10 MB 20 MB 40 MB 60 MB 100 MB
AT&T $6/MB $3/MB $2/MB $1.S0/MB $1.30/MB $1/MB
Wireless Roaming ~0.127/KB
20 MB 40 MB 70 MB Unlimited
Sprint PCS $2/mb $2/mb $2/mb
Verizon Verizon Wireless does not provide full Internet Access to Idaho Locations
5 MB 10 MB 20 MB
Nextel Nextel only provides access via an Internet capable phone.No laptop access
5 MB 20 MB 50 MB 200 MB
T -Mobile $5/MB $3.S0/MB $3/MB $2/MB
Exhibit No. 108
Case No. QWE-02-
W. Hart, Staff
3/19/03
Percent of Households with Internet Access, by State, 2001
State Total Households Percent with Internet 90% Confidence Interval
Alabama 731 37.
Alaska 221 64.
Arizona 891 51.
Arkansas 017 36.
California 260 55.1.24
Colorado 659 58.
Connecticut 297 55.
Delaware 300 52.
Florida 302 52.
Georaia 064 46.
Hawaii 391 55.
Idaho 496 52.
Illinois 608 46.
Indiana 391 47.
Iowa 137 51.
Kansas 032 50.
kentuckv 609 44.
Louisiana 663 40.
Maine 521 53.
Marvland 030 57.
Massachusetts 2,407 54.
Michiaan 806 51.
Minnesota 922 55.
Mississippi 081 36.
Missouri 177 49.
Montana 369 47.
Nebraska 654 45.
Nevada 732 52.
New York 089 50.
New Jersev 106 57.2
New Hampshire 477 61.
New Mexico 696 43.
North Carolina 077 44.
North Dakota 248 46.
Ohio 4,439 50.
Oklahoma 362 43.
Oreaon 326 58.2
Pennsvlvania 652 48.
Rhode Island 401 53.
South Carolina 542 45.
South Dakota 288 47.
Tennessee 251 44.
Texas 666 47.1.51
Utah 705 54.
Vermont 250 53.4 3.25
Viroinia 678 54.
Washinaton , DC 237 41.4
Washinoton 345 60.4
West Virainia 756 40.
Wisconsin 064 50.
Wvomina 197 51.
http://www.ntia.doc.gov/ntiahome/dn/hhs/TableRl.htm
Page I of
xhibit No.1 09
Case No. QWE-02-
W. Hart, Staff
3/19/03
High Speed Services for Internet Access:
Status as of June 30 , 2002
Industry Analysis and Technology Division
Wireline Competition Bureau
December 2002
This report is available for reference in the FCC's Information Center at 445 12th Street, S., Courtyard
Level. Copies may be purchased by calling Qualex International, Portals ll, 445 12th Street, S., Room
CY-B402, Washington, DC 20554, telephone [phone], facsimile 202-863-2898, or via e-mail
qualexint~aol.com. The report can also be downloaded from the FCC-State Link Internet site at
www.fcc.gov/wcb/stats
Exhibit No. 110
Case No. QWE-02-
W. Hart, Staff Page 1 of2
3/19/03
Table 8
High-Speed Lines by Type of User as of June 30, 2002
(Over 200 kbps in at Least One Direction)
Residential & Small Business Other Total
Alabama 152 425 940 172 365
Alaska 046 745 791
Arizona 287 954 667 308 621
Arkansas 444 791 235
California 193 137 405 354 598 491
Colorado 217 903 907 243 810
Connecticut 223 128 362 236 490
Delaware 501 118 619
District of Cnlumbia 690 507 197
Florida 958 937 160 756 119 693
Georgia 426 944 191 512 135
Hawaii
Idaho 631 488 119
Illinois 454 577 865 553 442
Indiana 127 595 797 159 392
Iowa 306 626 102 932
Kansas 143 271 462 149,733
Kentucky 034 250 284
Louisiana 189 850 407 207 257
Maine 317 089 406
Maryland 259 394 272 316 666
Massachusetts 493 882 745 583 627
Michigan 490 624 792 538 416
Minnesota 252 225 682 273 907
Mississippi 064 531 595
Missouri 205 716 566 224 282
Montana 644 325 969
Nebraska 301 548 849
Nevada 118 453 589 138 042
New Hampshire 580 620 200
New Jersey 578 039 114 997 693 036
New Mexico 577 365 942
New York 217 818 243 076 460 894
North Carolina 405 618 118 461 736
North Dakota 105 059 164
Ohio 509 733 345 580 078
Oklahoma 140 430 783 151 213
Oregon 173 314 235 199 549
Pennsylvania 425 676 812 516 488
Puerto Rico
Rhode Island 820 733 553
South Carolina 155 778 310 175 088
South Dakota 309 246 555
Tennessee 259,493 080 294 573
Texas 940 185 110 326 050 511
Utah 306 622 928
Vennont 669 321 990
Virgin Islands
Virginia 301 448 274 360 722
Washington 360 522 826 422 348
West Virginia 004 205 209
Wisconsin 235 542 557 257 099
Wyoming 786 204 990
Reported Total 984 287 218 253 202 540
. Data witheld to maintain finn confidentiality.
1 Other includes medium and large business, institutional, and government customers.
Exhibit No. 110
Case No. QWE-02-
W. Hart Staff Page 2 of2
3/19/03
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:~R:.I:a:.,
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Spirit of Service
Exhibit No. 111
Case No. QWE-02-
W. Hart, Staff
3/19/03
CERTIFICATE OF SERVICE
HEREBY CERTIFY THAT I HAVE THIS 19TH DAY OF MARCH 2003
SERVED THE FOREGOING EXHIBITS TO DIRECT TESTIMONY OF WAYNE
HART IN CASE NO. QWE-02-, BY MAILING A COpy THEREOF, POSTAGE
PREP AID, TO THE FOLLOWING:
MARY S HOBSON
STOEL RIVES LLP
SUITE 1900
101 S. CAPITOL BLVD
BOISE, ID 83702
(Confidential Exhibit)
CONLEY WARD
GIVENS PURSLEY LLP
277 N 6TH ST, SUITE 200
PO BOX 2720
BOISE, ID 83701-2720
(Confidential Exhibit)
DEAN J MILLER
McDEVITT & MILLER LLP
420 W. BANNOCK ST.
PO BOX 2564 (83701)
BOISE, ID 83702
SUSAN TRAVIS
WORLDCOM INe.
70717TH STREET, SUITE 4200
DENVER, CO 80202
MARLIN D ARD
WILLARD L FORSYTH
HERSHNER, HUNTER, ANDREWS, NEILL
& SMITH, LLP
180 E 11 TH AVE, PO BOX 1475
EUGENE, OR 97440-1475
(Confidential Exhibit)
JOHN GANNON
ATTORNEY AT LAW
1101 W. RIVER, SUITE 110
BOISE, ID 83702
ADAM L SHERR
QWEST
1600 7TH AVE, ROOM 3206
SEATTLE, WA 98191
CLAY R STURGIS
MOSS ADAMS LLP
601 W. RIVERSIDE, SUITE 1800
SPOKANE, WA 99201-0663
BRIAN THOMAS
TIME WARNER TELECOM
223 TAYLOR AVE. NORTH
SEATTLE, W A 98109
MARY JANE RASHER
AT&T COMMUNICATIONS OF THE
MOUNTAIN STATES INC.
10005 S. GWENDEL YN LANE
HIGHLANDS RANCH, CO 80129-6217
DEAN RANDALL
VERIZON NORTHWEST INC.
17933 NW EVERGREEN PKWY
BEA VERTON, OR 97006-7438
(Confidential Exhibit)
BEN JOHNSON ASSOCIATES INC.
2252 KlLLEARN CENTER BLVD
TALLAJiASSSEE, FL 32308
(Confidential Exhibit)
~(lSECRET Y