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CTIA stirs 'two-fer' phone technology controversy - Cellular Telecommunications Industry Association questions C Two Plus Technology's one-number dual-phone




The legality of C Two Plus Technology's |two-fer' cellular service recently was questioned by the Cellular Telecommunications Industry Association (CTIA). C Two Plus Technology configures two cellular phones with the same phone number. CTIA alleges C Two Plus Technology is altering cellular phones' electronic serial numbers (ESNs), an FCC rule violation.

C Two Plus Technology's system reassigns data within a phone and does not alter the electronic serial number or violate any FCC regulations, said Carol Patton, C Two Plus Technology's marketing director.

At the center of the controversy is C Two Plus Technology's service that enables cellular phone users to pay one monthly service fee for two cellular phones with one number. Patton told MOBILE PHONE NEWS: "Carriers do not advocate C Two Plus Technology's two-phone, one-number service because they consider it a technology that enhances revenue loss."

...Both Parties Address Fraud Issues

Eric Hill, CTIA's director of security, told us he spoke with C Two Plus Technology's Patton and Stewart Graydon, and tested the multiple-phone product.

Hill said although the product has advantages, cellular switches cannot distinguish between C Two Plus Technology phones and fraud committing, cloned phones. Software programs that combat cloning fraud could perceive C Two Plus Technology phones as cloned units and disconnect the calls.

Presently, there are only two ways to identify a cellular phone, by its phone number manufacturers identification number (MIN) and by its ESN, said Hill. To a cellular switch, the C Two Plus Technology altered ESN looks the same as a cloned phone. "In the hands of the wrong people--[c Two Plus phones] could wreak havoc," Hill said.

C Two Plus Technology said the service does not facilitate fraud, and the company specifically made provisions so its phone users are not perceived as committing cellular fraud.

Patton said C Two Plus Technology maintains a complete database of names, numbers and locations of all its phones in use. For fraud protection purposes, C Two Plus Technology offered its complete database to carriers, but the carriers have not taken advantage of C Two Plus Technology's offer, Patton said.

...FCC Remains Uninvolved So Far

"My division has not had any direct discussions with C Two Plus Technology at this point but has taken a position on what the rules allow," said John Cimko, FCC Mobile Services Division chief.

CTIA asked Cimko's advice on C Two Plus Technology's phone. Based on CTIA's information, Cimko said: "Phones with altered ESNs do not comply with the commission's rules...and any individual or company operating such phones or perform such alterations is in violation of Section 22.915 of the commission's rules and could be subject to appropriate enforcement action."

Patton told us: "Our legal counsel has studied the commission's rules and concluded the product does not violate the FCC's rules. C Two Plus Technology reassigns data within the phone--it does not alter ESNs as the FCC says. However, there are a lot of interpretations [of FCC rules]. Additionally, why is it in violation of [FCC) regulations if you are not doing anything wrong?"

Currently, the FCC has not initiated any proceedings or actions against C Two Plus Technology. To head off FCC investigative action, C Two Plus Technology could submit its equipment to the FCC's Office of Engineering and Technology (OET) for evaluation. "C Two Plus Technology has the option of entering discussions with the FCC's OET to demonstrate the equipment and establish whether it violates any FCC rules," Cimko said.

...Cellular Subscribers Bullish on Dual Phones, One Number Concept

A cellular carrier's goal includes providing customers with the most up-to-date and convenient services possible. Satisfied customers reduce a carrier's disconnection rate, and auxilliary services increase airtime usage. The dualphone, one-number service is not a new concept to carriers and previously has been requested by numerous cellular customers.

Bell Atlantic offers a one number multiple phone service in its Baltimore/Washington cellular market, called ContactLine. The service allows a user to preprogram an itinerary with the cellular operator, which routes the calls to the appropriate phone in the car, at the office or at home. The service is switch-based, and the phone's electronics are not altered.

C Two Plus Technology said there is a tremendous demand for legitimate use of two phones and one number. There are no regulations prohibiting the company from performing the service, Patton said. The company demonstrated the product to carriers who said there was no demand for the service and told the company, "If we cannot do it ourself, we do not want [the service]," Patton added.

"The true [C Two Plus Technology] conflict has been within the cellular industry. Approximately 125 carriers expressed concern about C Two Plus Technology's service," Hill said.

Carriers object to C Two Plus Technology's phones because carriers have no way of distinguishing between C Two Plus Technology system-altered phones and illegally cloned phones. The carriers' main concern focuses on C Two Plus Technology's system inhibiting a cellular operator's ability "to weed out the good customer from customers committing fraud," said Hill.

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