Prepaid wireless service is becoming increasingly popular with consumers. According to recent reports “nearly two-thirds of U.S. net subscriber additions in the fourth quarter were prepaid.” Increased popularity is the result of consumers eager to cut back on their expenses during the recession and fierce competition in the prepaid market. As a result, “[t]he prepaid wireless market grew 17 percent year-over-year in the fourth quarter, according to the think tank, compared with 3 percent growth for the postpaid market. The quarter marked the first time new prepaid wireless subscribers outnumbered postpaid ones.” (Read more)
The prepaid market is a great example of how consumers benefit in a competitive free market environment. And as the ways that people use and pay for wireless communications change, so should the policies in place that support our overall communications system – including emergency services like 911. We need to update existing laws to ensure that our country’s 911 authorities are not put in jeopardy because of a lack of proper funding.
In most states, 911 fees are collected in monthly bills for most telecommunications services, including traditional wire-line, wireless, and even Voice Over Internet Protocol (VOIP) services. However, because there is no monthly bill provided to the customer ofprepaid wireless there is simply no way, under current law, to collect the 911 fee.
As prepaid wireless’ popularity grows, a larger portion of those with access to 911 are being inadvertently excused from paying into this life-saving system. This places an unfair burden on those who pay a monthly bill and are incurring the entire cost of 911 services. Additionally, if these statues are not updated, monthly customers will be asked to absorb fee increases in the future to cover the losses from prepaid customer. This is an issue of fairness and equity that logically takes into account advances in communications technology. The intent of creating a 911 fee was to ensure that everyone that had access to the system help pay for the infrastructure.
Fortunately for all of us several states, including Colorado, are working to address the discrepancy created by increase prepaid wireless usage. In Colorado, Senate Bill 120 (SB 120) has passed the Senate and is currently in Committee in the House. SB 120 ensures public safety’s needs by collecting a fee at the point-of-sale. This method of collection is fair and transparent to the both traditional monthly customers and prepaid customers by ensuring that everyone who uses the 911 system helps pay for it.
If you live in Colorado, please contact your legislator today and let them know you support SB 120.
If you live in Arizona, New Mexico, Utah, or Wyoming contact your legislator let them know you are concerned about the possible underfunding of critical 911 systems.
