MARKET TRENDS

We thought you might enjoy reading some details about the goings-on in Caller ID/Calling Name delivery. This should demystify some of the changes. 

Caller ID and That Darn Telemarketer

“That darn telemarketer! Their name did not display in my Caller ID box like it was supposed to. They must be blocking their name and violating the FCC and FTC Rules.”  “Why doesn’t my sister’s name, who lives in another state, show up, like it used to?”

The number of these complaints seems to be increasing as the volume of names displayed is decreasing!  To understand what is happening, it is necessary to get a picture of the inner workings of the Caller ID with Calling Name (CNAM) display. Consumers often purchase the Calling Name Display capability from their local phone company as an added service or bundled with a service package.  They choose to pay for the ability to see the name of the caller before they answer a call. Sometimes it is even sold along with Call Waiting.

For those interested in the technology, here is how it works:

When a consumer subscribes to this service through the local phone company, it is the responsibility of the local phone company to acquire and display the name on the consumer’s “Caller ID Box” when an incoming call arrives at the phone.  Unless the calling party is a telemarketer, the caller can block the display. Federal regulations prohibit telemarketers from blocking the display.  An example of a valid reason to block the Caller ID is to protect the identities of callers at a battered women’s shelter.

So, the question is, how do you get codes on the display like “Out of Area,” “Not Available,” or just “---------?”  Most normal telephone calling names are available for delivery.  These names are stored in databases around the country called CNAM or LIDB databases.  Many of these databases are owned and operated by the telephone companies themselves.  A few are run by private companies.  Each database has unique names and numbers, and they are interconnected by a sophisticated data network.

If the local phone company does a look-up in a “foreign” database (one it does not own itself), the company normally is charged about 1 cent. If the company owns the database itself, of course, it pays nothing.  Most of the calls to any phone are from numbers stored in the local database, such as calls from a neighbor.

The average telephone line in the United States receives about 234 calls per month, whether it is a residential or a business line.  If half the names are not in the local phone company’s database, the phone company would spend only about $1.17 to provide Caller ID service for the whole month.  On average, Caller ID charges to the customer are around $9.00 per month.  So, the phone companies make a great profit on this business.

Now, back to the question of why does anyone get displays like “Out of Area,” etc?  A consumer should almost never get that response.  Even the Federal Trade Commission (FTC) says:

“The FTC acknowledges that some situations may arise when a consumer who subscribes to a Caller ID service does not receive a telemarketer’s transmission of Caller ID information, even though the telemarketer has arranged to transmit the information in every call. For example, that can happen if the Caller ID information is dropped somewhere between the telemarketer’s call center and the consumer’s telephone.”

The FACT is that some of the phone companies (Local Exchange Carriers) simply have CHOSEN not to retrieve the name to display. They know many consumers are unaware that the names can and should be displayed. So, the phone companies literally do not spend one red cent, and the consumer pays for a service that is not delivered. 

It is true that some cellular names are not made available to the network, especially from the Verizon companies.  But the vast majority of names in the United States are stored and made available to every carrier for display purposes.  Here are some quotes directly from several major local exchange carriers’ websites regarding the service someone should receive by purchasing Caller ID (extracted in 2005):

SBC-AmeriTech (Indiana):  Charge $9.95 per month
Caller ID with Name* lets you know who's calling before you pick up the phone, so you can decide which calls to answer and which to return later. If you decide to return a call, just look at your Caller ID display for a quick reference on the caller's name, number and time of call.
*Caller ID with Name may not be available in all areas or on all calls.

Verizon (Texas):  Charge $7.95 per month
Know who's calling before you pick up the phone.
Caller ID lets you see the names and telephone numbers* of incoming calls on a small display unit or display phone, and provides a convenient way to manage and track all your incoming calls.

• You'll see the names and numbers of your callers, so you can decide whether to take the call now or return the call later.
• You can store the names, numbers, dates and times of calls, even if callers hang up or don't leave a message.

*The name and/or number of your caller may not be displayed for every incoming call. In some cases, you will see a message on your Caller ID display unit instead of the name and number of the caller. The exact wording of the message may vary depending upon your display unit. "Out of Area" or "Unavailable" messages are from calls made outside specially equipped areas and calls made through an operator.

BellSouth (Florida): Charge $9.00 per month
See the caller's name* and number after one ring. Most Caller ID units** will also display the time and date of the call. If callers have privacy features that prevent their names and numbers from being identified, Anonymous Call Rejection identifies these callers and routes them to a recorded message.

• Identify callers and decide whether or not to answer
• Screen calls without an answering machine
• Avoid annoying or harassing calls

*For selected calls received from outside the BellSouth nine-state region, the calling party’s name may be replaced with the city and state.

Now, after reading these explanations of the service, including the fine print, do consumers believe they are paying for every possible name to be displayed?  Of course they do!

WHAT TO DO: Call your local phone company and complain every time you do not get a Calling Name. Give them specifics –“My sister called from Indiana and her name was not displayed at 2:26 PM Tuesday and again at 6:35 AM on Wednesday.”  Ask for a rebate.  Cancel the service if it does not improve.

Call your congressional representative.  In some states you may wish to contact the local Public Utility Commission (PUC) or Public Service Commission (PSC) or file a formal complaint online. The Federal Communication Commission (FCC) is also a good place to register a complaint – www.fcc.gov. Likewise with the Federal Trade Commission (FTC) at – www.ftc.gov.