There are proposals in both the House and the Senate in various draft stages regarding telecommunications issues. Some attempt to encourage the deployment of IP-enabled services through a deregulated regime. Others treat all voice and data the same. With a proven track record of providing consumer benefit and increasing productivity through unequaled competition and innovation, wireless is well-positioned to make a strong case for legislative consideration that acknowledges its unique qualities and ability to best serve consumer needs.
Mattey notes that a number of issues will be discussed during legislative consideration and could consequently be resolved through FCC regulatory action. These issues could include the E-911 emergency requirement for wireless
providers; roaming requirements that affect small rural carriers and their customers; issues related to consumer protection; and taxes and fees assessed
by localities and states on wireless services. “From a regulatory standpoint, I think that finding ways to avoid disparate state level regulations is the biggest
issue for the industry.”
A Golden Age
“Overall, the wireless industry is entering a golden age,” says Scott Cleland, CEO of Precursor, an investment research firm specializing in telecommunications.
“The engine of growth in this new era will be revenue from broadband products added on top of revenue from traditional wireless products.”
Cleland’s view is at odds with prevailing Wall Street forecasts that fear slower industry growth as subscriber penetration nears 65 percent and the flow of new subscribers begins to slow down. “Of course subscriber growth will slow down,” Cleland says. “But pessimists that imagine this parade of horribles hanging over the industry are missing the most important point: the migration to wireless
broadband creates many more revenue streams on top of a stable wireless subscriber base. The upgrade to wireless broadband, for example is a $40 to $60 add.” Cleland goes on to list other value added service opportunities: voice and email integration, video content, gaming and entertainment.
“On top of that, you will have fixedmobile convergence, where people will use the same handset for local and wireless service,” says Cleland. “The next generation of competition will be all about fixed-mobile convergence, about having the wireless connection in your home be the same as your cellular connection outside the home. When you go into Starbuck’s, you might switch to a WiFi connection. And when you’re in trouble on the highway, your connection might be through GPS 911.”
