federal communications commission

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US cracks down on marketing robocalls

By M. Alex Johnson, msnbc.com

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The Federal Communications Commission said Wednesday it’s going after those annoying automated marketing calls that always seem to come right as you’re sitting down to dinner.

The commission unanimously adopted new rules to crack down on what are known as robocalls. That’s when a company sets up its computers to call thousands of numbers in sequence, hoping one or two of them will be answered by someone who’ll listen to a pitch for whatever they’re selling.

“Unwanted telemarketing calls and texts were consistently in the top three consumer complaint categories at the FCC in 2011,” the FCC said. “Robocalls invade consumers’ privacy, and can, in the case of calls to wireless numbers, use up their minutes.”

Read the full announcement (.pdf)

The Direct Marketing Association, the leading trade organization for so-called multichannel marketing ? which includes telephone solicitation ? didn’t immediately respond to a request by msnbc.com for comment.?



Hanging up on telemarketers

The FCC said its new rules will:

? Require telemarketers to obtain prior express written consent from consumers, including by electronic means such as a website form, before placing a robocall to a consumer.

? Eliminate the “established business relationship” exemption to the requirement that telemarketing robocalls to residential wireline phones occur only with prior express consent from the consumer.

? Require telemarketers to provide an automated, interactive “opt-out” mechanism during each robocall so that consumers can immediately tell the telemarketer to stop calling.

? Strictly limit the number of abandoned or “dead air” calls that telemarketers can make within each calling campaign.

Source: Federal Communications Commission


But in the past, the industry has vigorously opposed government restrictions on whom it may call. The DMA and several other groups sued to stop enforcement of the National Do-Not-Call Registry when it was created in 2003, a case that went all the way to the Supreme Court, which ruled against them.

Wednesday, FCC Chairman Julius Genachowski said it had become clear that the current rules ? which the FCC enforces along with the Federal Trade Commission ? weren’t working.

“Too many telemarketers, aided by autodialers and prerecorded messages, have continued to call consumers who don’t want to hear from them,” he said in a statement. And “consumers by the thousands have complained to us.”

The problem is that the current rules include several loopholes that telemarketers ? scrupulous and unscrupulous alike ? can drive their calls through.

For one thing, a company currently can claim it’s exempt from leaving you alone if it can show an “established business relationship” with you. That can include any previous communication between you and the company, including “communications” as minor a small purchase you might have made at a store owned by a subsidiary of the company a year and a half ago.

Saying its data show consumers are especially frustrated by that loophole, the FCC eliminated the exemption Wednesday.?

And previously, the only way you could stop those kinds of calls was to contact the company and ask to opt out. The new rules require telemarketers to obtain “prior express written consent” from you.?

In other words, what used to be an “opt-out” system is now an “opt-in” system. Companies can’t call you unless you tell them in writing ahead of time that it’s OK.

Two other rules are also intended to limit or stop unwanted calls at home:

? Telemarketers must include an automated way for you to opt out immediately during any robocall.

? And they have to stop calling a number completely after a few calls that don’t get answered or that you hang up on.

Robert McDowell, a member of the commission, said in a statement that the rules were narrowly targeted to exempt charities and political organizations, along with institutions providing needed information, like school systems that use them to alert parents when schools are closed.

Most of the displeasure is over commercial telemarketers, he said, adding, “Sometimes it seems like there’s no escape.”

More content from msnbc.com and NBC News

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Source: http://usnews.msnbc.msn.com/_news/2012/02/15/10418510-us-cracking-down-on-dinner-interrupting-marketing-robocalls

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AT&T drops $39B T-Mobile bid; ‘duopoly’ averted

FILE -This March 20, 2011 file photo combo, shows the logos of the communications companies AT&T and Deutsche Telekom. AT&T on Monday, Dec. 19, 2011 said that it is ending its $39 billion bid to buy T-Mobile USA after facing fierce government objections. AT&T’s purchase of T-Mobile from Deutsche Telekom of Germany would have made it the largest cellphone company in the U.S. (AP Photo)

FILE -This March 20, 2011 file photo combo, shows the logos of the communications companies AT&T and Deutsche Telekom. AT&T on Monday, Dec. 19, 2011 said that it is ending its $39 billion bid to buy T-Mobile USA after facing fierce government objections. AT&T’s purchase of T-Mobile from Deutsche Telekom of Germany would have made it the largest cellphone company in the U.S. (AP Photo)

(AP) ? AT&T Inc. is hanging up on its $39 billion bid to buy smaller wireless provider T-Mobile USA, nearly four months after the U.S. government raised concerns that it would raise prices, reduce innovation and give customers fewer choices.

The long-expected announcement left AT&T grumbling about a shortage of airwaves to expand its services, while scrappy competitor T-Mobile remains up for sale by German parent Deutsche Telekom.

The formal end of the deal was heralded by critics. No. 3 carrier Sprint Nextel Corp. had feared “an undeniable duopoly” between the proposed new entity and current leader Verizon Wireless. The two companies would have controlled almost 80 percent of the cellphone market had the deal gone through.

“This result is a victory for the millions of Americans who use mobile wireless telecommunications services,” Deputy U.S. Attorney General James Cole said. “A significant competitor remains in the marketplace and consumers will benefit from a quick resolution.”

The Justice Department had sued on Aug. 31 to block the merger, and the Federal Communications Commission’s chairman came out against it last month. That prompted the companies to withdraw their FCC application while they strategized their next move.

Sanford Bernstein analyst Craig Moffett said the announcement was “a bit of an anticlimax.”

“This is like receiving the divorce papers for a couple that’s been separated for years,” he said.

AT&T’s purchase of fourth-ranked T-Mobile, announced in March, would have made it the largest cellphone company in the U.S. AT&T is now the second-largest wireless carrier, with more than 100 million subscribers, behind Verizon Wireless, with 108 million. Sprint has 53 million, followed by T-Mobile at 34 million.

T-Mobile endured without much investment from its parent company and without the highest-end devices such as Apple Inc.’s iPhone. It offered value packages to customers who brought phones from other carriers. Regulators feared the loss of T-Mobile as a competitor would hurt consumers.

AT&T will now have to pay Deutsche Telekom $3 billion in cash as a breakup fee and give it about $1 billion worth of airwaves, known as spectrum, that AT&T doesn’t need for the continued rollout of its high-speed “4G” network.

It will also enter into a roaming agreement with Deutsche Telekom so that AT&T’s and T-Mobile’s customers can use each other’s networks.

AT&T will take an accounting charge of $4 billion in the current quarter.

In pulling out, AT&T said the government’s attempts to block the deal do not change the challenges of the wireless phone industry. Cellphone companies have been clamoring for more airwaves to meet growing demand for faster downloads on smartphones and tablet computers.

The company said the deal would have solved that problem for a time, and without it, “customers will be harmed and needed investment will be stifled.”

AT&T said it will continue to invest, and it called on the government to quickly approve its purchase of unused spectrum from Qualcomm Inc. and come up with legislation to meet the nation’s long-term needs.

FCC Chairman Julius Genachowski said the commission agreed with AT&T that Congress should authorize an auction for additional spectrum. The FCC has proposed persuading television stations to give up their airwaves in exchange for sharing in auction proceeds.

Besides such an auction, AT&T could also buy spectrum from satellite TV operator Dish Network Corp., which could require an FCC waiver because it is licensed for satellite use.

Many people believed that AT&T had overstated the spectrum crisis.

AT&T already has an ample supply of unused wireless spectrum that it plans to use to expand its network over the next several years. And much of T-Mobile’s spectrum is already in use, so the deal wouldn’t have resulted in fresh airwaves becoming available. Furthermore, AT&T has made great strides in addressing network congestion in such cities as New York and San Francisco not by tapping its unused spectrum, but by upgrading its cell-tower equipment.

Moffett said AT&T’s spectrum needs aren’t so grave that it needs to make a large acquisition right away.

The decision to end the bid could be a bigger problem for T-Mobile than for AT&T. Deutsche Telekom has been eager to sell T-Mobile and isn’t keen on investing more in the company, which has seen revenue decline slowly with the flight of higher-profit contract customers.

Besides missing out on many of the hottest smartphones, T-Mobile has stuck to updating its existing 3G network to achieve 4G speeds.

By contrast, competitors have moved to all-new networks that use LTE, or long-term evolution, technology specifically designed to carry data. Both AT&T and Verizon are building LTE networks, and Sprint intends to use the technology, too.

Still, Moffett believes it’s too soon to write off T-Mobile, saying it has a good network with lots of room for more customers.

“I think they could surprise some people and be a more important force in the market than people are giving them credit for,” he said.

AT&T’s stock fell 8 cents to $28.66 in after-hours trading Monday after the news came out. Earlier, it closed the regular session down 11 cents.

___

Metz reported from San Francisco.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/495d344a0d10421e9baa8ee77029cfbd/Article_2011-12-19-ATandT-T-Mobile/id-00bbdc244795483e81a65502fdaf40d2

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