Minnesota Attorney General Lori Swanson said less competition in the cellular phone industry "makes it more difficult for consumers to shop around for the best service at the lowest rates."

Rockefeller said consumers are frustrated by practices in the wireless industry. Though the FCC only receives 10,000 to 15,000 complaints a year from consumers, "I am not sure that consumers love or believe that they are treated fairly by their wireless providers," he said.

Rockefeller added that he is concerned that industry is looking to weaken FCC efforts to make sure consumers who make 911 calls reach emergency communications centers.

Other speakers at the hearing addressed legislation, S. 2033, that would require wireless carriers to give consumers information on their service quality and refrain from charges and fees that are not expressly authorized by federal, state or local regulatory requirements.

"It's now time for some new rules in the wireless industry," said Sen. Amy Klobuchar, D-Minn. She said her bill, co-sponsored by Rockefeller, would "ensure that cell-phone consumers have the necessary information they need to make the best decision for themselves and their families."

Consumers Union said in a statement released at the hearing that it supports the bill.

Michael Higgins, chief executive officer of the Central Texas Telephone Cooperative, said the measure would not go far enough in terms of handset-locking. "There is a need for requirements to enable the customers of small and rural carriers to acquire the latest handsets and devices," he said. He suggested that policymakers license spectrum in smaller geographic areas and limit the amount of spectrum that nationwide carriers may hold.

"The U.S. Congress should pass meaningful consumer protection legislation so that consumers are treated fairly and not subjected to a game of 'hide the ball' when navigating the cell-phone maze," Swanson said.

Lowell McAdam, president of Verizon Wireless, advised the committee to reject the bill and "instead complete the national, deregulatory structure for the wireless industry it began in 1993."

Jerry Ellig, a senior research fellow at the Mercatus Center at George Mason University, said he is skeptical that that there is a systemic problem in the wireless market that requires regulation. Instead, he said Congress should "facilitate wireless competition by directing the administration to identify additional spectrum for auction that is currently unused or under-utilized by federal agencies."