August 15, 2002

Legislative Activity

Date: August 15, 2002

To: AAF Members

From: Clark Rector, Jr., Senior Vice President-State Government Affairs

Re: Proposed Regulations for the Advertising of Wireless Services

California Public Utilities Commissioner Carl Wood has proposed extensive new regulations for the wireless industry in the state. Of particular interest to the advertising industry is a provision that would require all rates, terms and conditions be reprinted or repeated in all marketing materials, including radio, television and billboard advertising.

This proposed rule goes far beyond the requirement that advertising be truthful and not misleading and would hold advertising for wireless products in California to a different standard than in the rest of the country. The extensive disclosures would make broadcast and outdoor advertising for wireless services virtually impossible in California.

AAF is working with a new coalition, Californians for Wireless Consumer Benefits to oppose the proposed regulations. No action is currently scheduled, but we anticipate the CPUC may accept public comment in September in anticipation of a possible October vote.

We will keep a close eye on the Commission and alert you when it is appropriate to take action. If you have any questions, please do not hesitate to contact me at or 1-800-999-2231.