March 6, 2024
Telecom Experts Debate the Responsibility of Robocalls in Service Providers
Robocalls persist after years of fighting them with legislation, technology, and call center improvements. Consumers are angry that they still receive them, often after they have installed robocall-blocking apps.
The FCC continues to fight these bad actors. In 2023, expanded legislation and enhanced enforcement efforts targeted robocalls and robotexts. While these efforts have had some effect, they are far from stopping the problem altogether. Recently, experts in the telecom industry debated who should shoulder the burden of responsibility: originating service providers or terminating service providers.
The Cost of Robocalls
Determining responsibility requires some context. This illegal industry is huge, and the cost of robocalls is crippling for consumers. Research shows that scam calls cost mobile subscribers around $58 billion globally in 2023. That amount is expected to rise to $70 billion by 2027 despite legislation such as STIR/SHAKEN, which attempts to regulate these calls in the U.S.
Despite these mitigation efforts, North American consumers suffer the biggest financial losses, accounting for over 50% of the worldwide total. However, other countries suffer as well and need to develop their own frameworks to protect their citizens from these fraudulent calls. Realistically, ending illicit robocalls requires a coordinated global effort.
FCC Broadens Legislation Against Unwanted Communication
STIR/SHAKEN legislation has been effective in some ways, but these scam calls have continued, in part due to flaws in the regulations. STIR/SHAKEN required originating and terminating providers to use analytical tools to determine if caller ID numbers belonged to the caller and were not spoofed calls. This action deterred some scammers. However, these regulations did not apply to the intermediary providers, which meant that many robocallers continued with business as usual.
New rules set by the FCC in 2023 took effect at the end of the year. Now, the first intermediary providers have to follow STIR/SHAKEN rules. This step will help stop illegitimate robocalls missed by first providers due to a lack of technology or lack of effort. The first intermediary rule serves as a safety net and will enhance the government’s ability to stop fraudulent robocalls. Getting past the first security gate is no longer enough for the scammers.
Intermediary service providers will now suffer consequences if they do not follow the new rules. They can be removed from the Robocall Mitigation Database, blocking other providers from receiving their call traffic. This FCC punishment could put many of these providers out of business.
The FCC now expects that all voice service providers take “reasonable steps” to stop illegal robocalls. They must also create a detailed certification and mitigation plan and submit it to the FCC. In short, the FCC expects all service providers to do their part in the robocall battle and prove that they have an effective plan in place.
Who is Responsible for Robocalls?
Industry players continue to debate who has the most responsibility for robocalls. Many experts argue that the terminating provider is responsible since they are delivering a tainted product to their consumers. They are the last link in the chain between the caller and the call recipient, so they must provide the best security.
Others argue that the originating provider should be held responsible since they are creating and shipping the defective product. In other industries, product liability usually falls on the manufacturer. Should robocalls be treated any differently?
Of course, this problem has existed for years with many illegal calls getting through despite all the intricate regulatory efforts. That’s why the FCC has broadened its approach and assigned responsibility for robocalls to all voice call service providers.
What This Means For Your Business
Everyone in the industry is tired of focusing on how to stop robocalls. Every new regulation or strategy gives call center operators and voice providers hope that the issue will be resolved. Unfortunately, robocallers are clever and persistent.
The stricter laws against these illegal calls have led to a surge in robotexting, a scourge that costs consumers billions. Also, domestic measures have not always translated into other countries’ practices. Overseas robocallers continued to succeed in the U.S. until the FCC targeted them with its Point of No Entry strategy. Originating providers were put on notice that they had to stop allowing illegal foreign voice traffic into the U.S.
Because robocallers continue to be successful, you have to fight the battle at your call center. All businesses engaging in outbound dialing must adopt a vigilant approach to caller ID monitoring and ethical dialing behavior. You need to register with CNAM, implement a call monitoring system, and improve agent training. These measures will protect your reputation with wary consumers.
Industry businesses can improve their standing with consumers by staying on top of dialing habits and caller ID accuracy. These professional practices build trust with your customers and potential leads, and help mitigate the negative effects of robocalls.
