Net Neutrality/Internet Regulation
CTIA Position:
CTIA-The Wireless Association® opposes regulating the Internet under the guise of "net neutrality." No one can explain clearly and convincingly why regulating the Internet is necessary or helpful to U.S. consumers.
On the other hand, everyone – including the companies asking Congress to regulate the Internet – agrees that competition, and more of it, is good for consumers, good for the economy and important for this country's ability to bridge the digital divide.
Wireless is a competitive industry and consumers enjoy the greatest number of choices among services, devices, calling plans and coverage areas in the entire telecom industry. Wireless consumers also pay some of the lowest prices for wireless service and devices in the world.
For these reasons, CTIA opposes the recent attempts to supplant competition and market discipline with heavy-handed, anti-consumer regulation.
Key Points:
- Neutrality Regulation would Stifle Competition and Therefore Disserve Consumers. In order to compete and attract customers, companies differentiate their products and services from their competitors'. Think Coke v. Sprite. Think Yukon v. Hummer. Think family plans v. prepaid plans. By requiring all providers to offer essentially the same product, consumer choice and the consumer's ability to obtain exactly what he or she wants withers away. Think Coke, no Pepsi, Coke. Not being able to differentiate yourself from a competitor also means that smaller companies, new market entrants and entrepreneurs would be hamstrung in their attempts to break into the market with a niche offering or new service. When competition is stifled, choices decline, prices rise.
- Neutrality Regulation would Jeopardize the Wireless Consumer Experience. The wireless consumer experience is a function of the quality of delivery of services and applications to subscribers. Wireless broadband providers must remain free to offer services to supplement their broadband Internet access offering, including bandwidth tiers, quality of service, security, anti-virus and anti-spam services, and network management. They must also remain free to enter into commercially negotiated agreements with unaffiliated parties for the provision of such additional services and applications. Finally, these broadband providers must remain free to innovate in the development and deployment of carrier-branded services that are distinct from public Internet access service.
- Neutrality Regulation Would Discourage Investment. Wall Street analysts have testified before Congress that regulating the Internet under the guise of
"net neutrality" will drive away investment from the sector. The wireless industry is poised to be an economically viable and technologically proven broadband alternative. Continued investment is crucial and driving it away now could significantly constrain wireless from becoming a nationwide competitive broadband choice for consumers. - There are Existing Remedies if and When a Problem Occurs. In the adoption of its net neutrality principles, the FCC stated that it has the authority to address any problems in this area. In addition to the FCC's authority, there is more than 100 years of antitrust law and precedent to apply if and when the government determines there has been a market failure.
The cell phone is no longer just a tool for conversation. Today, millions of Americans enjoy using their wireless device to surf the internet, download their favorite ringtone, or play the latest video game. Net Neutrality regulations would only jeopardize the wireless consumer experience by discouraging investment and stifling competition.
