Cellular phone service in the US is a mixed bag. While US residents enjoy the widespread availability of 3G networks and gadget candy like the iPhone, there is also a confusing morass of fees, contracts, and phones tethered to their providers via locking. The new Cell Phone Empowerment Act of 2007 aims to change much of that.

Introduced late last week by Sen. Amy Klobuchar (D-MN) and Sen. Jay Rockefeller (D-WV), the consumer-friendly bill would force cellular providers to change some of their ways. First off, companies would be barred from charging any fees beyond those mandated by local, state, and federal governments. That means no more hidden fees, as overage charges would be listed separately.

Early termination fees would also be prorated, with customers looking to get out of their contracts only forced to pay half of the termination fee at the halfway point of the contract.

Speaking of contracts, cell phone companies would have to begin notifying customers of changes to their contracts in writing. In fact, contract extensions would not be valid unless the cellular company provides point-of-sale notice and gives the customer 30 days to cancel. Cellular subscribers would also get a 30-day grace period at the beginning of a contract during which they could opt out for any reason. Members of the US military would also be able to terminate their contracts if they are deployed outside of the US for longer than 90 days.

Consumers would also have more data at their fingertips as they decide which cellular carrier to sign on with. Providers would need to provide maps of their coverage areas, detailed enough so that consumers would be able to determine whether they can get service at their homes. The Federal Communication Commission would also keep tabs on dropped calls and coverage gaps; that data would be publicly available.

Sen. Klobuchar believes that the bill would bring much-needed change to the cellular industry. "The rules governing our wireless industry are a relic of the 1980s, when cell phones were a luxury item that fit in a briefcase instead of a pocket," Sen. Klobuchar said in a statement. "Early termination fees are a family budget-buster; families should be able to terminate service without outrageous fees; know if their cell phone will work on their drives and in their home and office; and understand what to expect in their monthly bills once you pile on charges and fees. It's a simple matter of fairness."

The cellular industry is opposing the bill. "It is disappointing and unfortunate that Senators Klobuchar and Rockefeller intend to introduce legislation based on incomplete and misleading data. The truth is that complaints about wireless service to the Federal Communications Commission (FCC) are infrequent and declining," said CTIA president Steve Largent in a statement.

Largent also said that the bill would ultimately be harmful to consumers. "The Klobuchar-Rockefeller bill is unnecessary and, if enacted, threatens to increase the cost of wireless service and reduce the number of choices available to American consumers."

A recent report from free-market advocacy group The American Consumer Group painted a glowing picture of the cellular phone market, one that Largent echoed. "Between 2003 and 2006, the number of contract-related complaints dropped from 15 for every one million subscribers, to just nine for every one million subscribers," said Largent "In that same period of time, the number of total complaints decreased by 19 percent. All of that occurred while 75 million new subscribers were choosing wireless service, an increase of nearly 50 percent."

As we pointed out in our coverage of the ACG's cell phone report, the cell phone industry's data doesn't jibe too well with either data from the Organization for Economic Co-operation and Development or the experiences of many American consumers. If it passes, the Cell Phone Empowerment Act would address some of those problems without causing the kind of problems envisioned in the CTIA's dire warnings.