CTIA is the International Association for the Wireless Telecommunications Industry, Dedicated to Expanding the Wireless Frontier
Saturday, November 7, 2009

CTIA asks FCC: More Spectrum Please

It’s been a busy time for us at CTIA this week with FCC filing deadlines, Hill activities, Distracted Driving Summit and of course, our International CTIA WIRELESS I.T. & Entertainment show next week.

But on Tuesday, we submitted a very important ex parte filing  to the FCC requesting more spectrum because, to put it simply, it is the backbone of our industry. 

It’s not something that most people think about, but it’s what allows the wireless industry to create and develop the great things that you and I take for granted everyday. As Steve said in his statement about the filing, spectrum drives the innovation and competition.

In our filing, this was the first time we had suggested a specific amount of spectrum to be identified and allocated. We said that the goal should be at least 800 MHz of additional spectrum over the next six years. We also requested policymakers to meet short-term spectrum needs by pairing and allocating readily-available spectrum.
 
To read the filing, please click here.

Here are a few of the media stories on our filing:

Debunking the Myth on 3G Speeds in the U.S.

I don’t know if you’ve ever heard of snopes.com, but it’s a Web site that takes urban legends and either proves they’re true or debunks them.  

One urban legend that I seem to keep hearing about the wireless industry that I wanted to debunk is the rumor about the speed that U.S. consumers have versus the rest of the world. 

Without getting too complex, the majority of U.S. consumers use either GSM or CDMA technology.  Examples of GSM carriers are AT&T and T-Mobile while CDMA carriers are Verizon Wireless and Sprint.  

3G GSM is called High-Speed Packet Access (HSPA).   

According to a July 2009 release from the GSM Association, the U.S. has 32 million HSPA subscribers out of the 131 million worldwide. The U.S has 7% of all GSM subscribers in the world but has 23% of all HSPA subscribers in the world. 

The 3G CDMA technology is called Evolution-Data Optimized (EV-DO).   

According to Informa Telecoms & Media Group’s June 2009 report on World Cellular Information Service (WCIS), the U.S. has 63.1 million EV-DO  subscribers out of 106.78 million worldwide. The U.S. has 23% of all CDMA subscribers yet has 59% of EV-DO subscribers in the world.    

And while we have the most 3G subscribers in the world, we are also leading in the evolution to 4G. Verizon Wireless has announced that they'll be launching Long Term Evolution (LTE) in up to 30 markets by 2010 while Clearwire/Sprint's WiMax service is available now in 4 cities and another 10 cities by September 2009. AT&T has also announced their HSPA network upgrades here

I hope this clarifies and finally puts to rest the urban legend about the wireless technology speeds in the U.S. versus the rest of the world.

 

CTIA Talks with Media on the New FCC

Over the last few weeks, I've been talking with reporters and bloggers about the new FCC and its focus on the wireless industry. As you've probably read, we are looking forward to educating the FCC (and policymakers) on the facts about the industry. We have a great story and we look forward to the opportunity to share this information with them.
 
Since the agenda for the August 27th meeting has been released, many of those interviews have touched on the three NOIs (notice of inquiry). Specifically, there are two that are focused on the wireless industry – one on innovation and investment and the other on competition. The third is focused on truth-in-billing across numerous industries, including wireless.
 
Here are a few of the stories that have been published based on these interviews:

Wireless Industry’s Substantial Contributions to U.S. Economy

This morning we filed an ex parte with the FCC to highlight the significant contributions the wireless industry is making to aid the revitalization of our short and long-term economic health.

President Barack Obama has made it very clear that broadband is vital for the U.S. In a Washington Post column on February 5, 2009, President Obama said “now is the time to create jobs that remake America for the 21st century by rebuilding aging roads, bridges and levees; designing a smart electrical grid; and connecting every corner of the country to the information superhighway.”

Indeed, as our nation struggles in a fiercely competitive global marketplace to revitalize once unchallenged industries, mobile broadband services bring opportunities, increased productivity and represent a beacon on the path toward renewed economic prosperity.

Highlights of the filing are:

  • In 2007, U.S. wireless services delivered nearly $100 billion in “value added” contributions to the U.S. Gross Domestic Product (“GDP”).
  • Going forward, estimates place productivity gains from wireless broadband services at almost $860 billion between 2005 and 2016.

Jobs/Compensation:

  • Economic contributions of wireless services have grown significantly faster than the rest of the U.S. economy, averaging over 16% growth vs. less than 3% for the remainder of the economy.
  • Wireless jobs command compensation that is more than 50% higher than the national average of other production workers.
  • Wireless carriers directly employ more than 268,000 people, a number that has grown more than 6% year-over-year for the last four years.
  • Beyond direct carrier employment, more than 2.4 million American jobs are either directly or indirectly dependent on the U.S. wireless industry.

Equipment/Network Investment:

  • Total wireless expenditures on structures and equipment from 1998-2007 amounted to more than $217 billion.
  • Carriers responding to CTIA’s Semi-Annual Survey reported an average combined investment of more than $22.8 billion per year to upgrade their networks from 2001 through 2008.
  • As of December 2008, wireless carriers have deployed over 240,000 cell sites across the country.
  • Clearly, wireless voice and broadband services are major contributors to the U.S. economy through the massive capital investments of wireless providers, by creating high-paying, skilled jobs across the country and with billions of dollars of direct and indirect benefits flowing from the innovative wireless services and applications consumers demand.

 To view the filing, please click here  .

U.S. Wireless Leads the World in Value, Competition & Innovation

CTIA filed an ex parte today with the FCC that examines how the U.S. wireless industry measures up in the global marketplace. Using data from Merrill Lynch, the filing shows in detail how the U.S. leads the market for wireless services among 26 of the largest OECD countries. Once again, wireless in America is at the forefront in overall value, competition and innovation. Specifically, the U.S. continues to lead the world in minutes-of-use, has the lowest revenue per minute, has the least concentrated wireless market and is the global frontrunner in efficient use of spectrum resources.

Last year we began taking an in-depth look at how wireless in America stacks up against the rest of the world. This came in response to OECD broadband rankings that didn’t include wireless broadband. Our initial research last year found the U.S. leads the world in wireless providing more services for less per minute-of-use than any of the OECD’s top ten countries. Nonetheless, there continues to be a lot of discussion and debate on the state of U.S. wireless service. Today’s filing features clear-cut facts to dispel some of the more popular myths. This ex parte is an update to our prior filing in 2008 and expands the comparisons to 26 countries.  

Here are some of the U.S.-focused highlights:

  • The price-per-minute of service is the lowest of the 26 OECD countries tracked by Merrill Lynch.
  • Consumers have the highest minutes-of-use per month of the 26 OECD countries tracked y Merrill Lynch.
  • The U.S. has the least concentrated market, and accordingly, the lowest HHI.
  • At least 33 companies manufacture wireless devices for the U.S. market. 
  • Consumers can choose from nearly 630 wireless devices.
  • In the last year alone, six different companies have launched or announced application stores, giving consumers access to over 60,000 applications.
  • Subscriber counts for high-speed wireless lines more than doubled and advanced wireless service lines more than tripled in the last year. 
  • The percentage of consumers actively using mobile Internet capabilities is higher than any other country according to Nielsen.

Additionally, wireless broadband has been the fastest growing segment of the broadband industry according to the latest FCC data.  In 2007 alone, the number of wireless broadband subscribers more than doubled!

Ultimately, this means that U.S. wireless consumers enjoy an unparalleled value in service, driven by the competition and innovation in the wireless industry.  

For more information and to access the entire filing, click here.  

Insider Interview with Glenn Lurie of AT&T

Remember the old 'The Who' song, Goin' Mobile?  "I can pull up by the curb, I can make it on the road, goin' mobile. I can stop in any street and talk with people that we meet. Goin' Mobile. Keep me moving. Out in the woods, or in the city, it's all the same to me........ the world's my home when I'm mobile".  It was a great tune when it was released back in 1971, and it certainly could be the wireless industry's anthem today! Find out how AT&T wants to help you go mobile, everywhere, all of the time, in this interview with Glenn Lurie, the President of Emerging Devices and Resale,  AT&T. Glenn tells us about his new position at AT&T and their mission of introducing wireless capabilities into a whole host of emerging devices far beyond just mere handsets in a segment from our  January edition of the CTIA Wonder of Wireless webcast.

 

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Mobile Broadband Right Call In Economic Stimulus

Congress is contemplating what should be included in an economic stimulus proposal which could likely be sent to the Obama Administration by the first week of February. When considering all of the possible areas to which those important funds could be dedicated, there's no question that directing a significant portion to wireless telecom  makes sense and would be a major step toward achieving a successful outcome. CTIA President and CEO Steve Largent sent a letter this week to congressional leadership, making the rational and sensible case for wireless to be a part of the stimulus proposal, highlighting the short and long-term economic benefits that will result from that. Steve makes the point that broadband incentives in the package should be technologically neutral, and that wireless broadband investment now will facilitate faster network build-outs, create more jobs sooner, inspire tremendous and widespread gains in productivity and economic vitality, and recognize the realities of 21st century telecommunications and the incredible and superior value wireless affords all of us.

Speculation is rampant about what might be included in the package. However it takes shape, as Steve's letter points out, it certainly makes sense that the stimulus proposal should encourage wireless broadband investment and deployment. Consumers are the ultimate beneficiaries, as they'll be provided even faster mobile services, sooner and in more places than would otherwise be the case. New, high-paying, permanent jobs will also be created well-ahead of schedule, and a gain of as much as $186 billion in the Gross Domestic Product that can be realized by an investment of about $17 billion in wireless broadband is a much-needed shot in the arm for our nation's economy.

Numerous industry sectors are turning to wireless as an integral part of their growth and service strategies, and in this time of great need, it's clear support for the innovation and value that are hallmarks of this industry and provide such tremendous upside to consumers and businesses is the right call.

Wireless Broadband: Here Today for Tomorrow

It's been some week, huh?  There's an awful lot to process on the financial front... the Dow down 777 points yesterday  (I'll be working until I'm 70), then up more than 300 so far today (okay, maybe 68). It’s  assuredly an uncertain time, and in some respects, more than just a little scary.  

After we take a collective breath, and look around, we’ll see that while there are real reasons for concern and real problems to be solved -- but it’s not all “doom and gloom.”  For example,  consumer  confidence actually rose August to September.  And while we might not have a “bailout” plan in place just yet, I believe one will ultimately be passed. 

But instead of reading this for my quick take on the economy, I'd like you to think about how wireless fits in this picture. I have no doubt that the  wireless telecommunications sector will be a leader in our economic recovery.  According to Ovum, wireless productivity gains will generate more than $860 billion over the next 10 years , generating millions of new jobs and creating impressive advances for American business. New, high-speed 4th generation technology, such as Sprint’s WiMAX service  which is becoming commercially available within the next week,  is going to enable applications and services that at once seemed “Jetson-esque” .  AT&T and Verizon have also committed to the LTE – a 4G wireless standard – and expect to make it available in the next 24 months. 

The continued deployment of these 4th generation technologies, and the sustained growth in wireless broadband subscribership (about 70% of new broadband lines between June 2006 and June 2007 were wireless subscriptions), will enable increased productivity and efficiency in the enterprise community and truly life-style changing developments for the public.  Business users and consumers alike require a wireless high-speed internet experience akin to that they find on their desktops.  The industry is working hard to meet that demand , and the promise of the wireless future is fantastic. 

Right now, it’s easy  (and understandable) to look around and be  a little scared – but before we get too worked up, let’s take a dispassionate, measured look at  the big picture. Yes, times are tough. Our 401K accounts and overall confidence are taking hits. But wireless is a positively life-changing technology that is a critical key to the solution, and that should factor into every policymakers' mindset when looking at rules and regs that pertain to this dynamic facet of America's economic rebound.