When Congress tasked the FCC with developing a National Broadband Plan that includes “a plan for the use of broadband infrastructure and services in advancing . . . energy independence and efficiency,” we were pleased that the Commission identified “smart grids” – the integration of information and communication applications with the electric power grid – as a promising way to achieve these objectives. 

Then, late last month, President Obama announced $3.4 billion of stimulus grants that will be allocated to 100 smart grid projects tasked with modernizing America’s energy efficiency and increasing reliability on renewable resources (e.g. wind and solar power). 

Clearly, smart grid technology has captured the nation’s attention for its numerous benefits and promising potential. 

In our comments  to the FCC last month, we highlighted wireless communications as a critical component of smart grid deployments. Commercial wireless networks can satisfy, and are currently satisfying, the communications requirements of smart grid applications. 

The benefits of smart grid technology can be profound, and wireless is an important part of the equation. A joint report by Accenture and Vodafone  found that wireless technology can be used to:

• Reduce carbon emissions in European Union (EU) member countries by 113 metric tons per year in carbon dioxide equivalent (CO2e).
• Cut energy cost by £43 billion (approximately $70 billion), with more than 80% of these savings attributable to machine-to-machine communications.

But when thinking about deploying wireless communications for smart grids, we ask policymakers to consider these two points:

• If net neutrality rules were applied to wireless, it is an open question regarding how a non-discrimination regulation would impact devices like smart meters or supervisory control and data acquisition (“SCADA”) system equipment. Further, if a provider or vendor devises an innovative smart grid communications technology or transmission algorithm to limit the impact of network congestion, would such a technology be permissible under new rules? If so, must the details be fully disclosed? It also is entirely plausible that certain communications in a smart grid solution will require prioritization. An overreaching network management policy may jeopardize the innovation for smart grid development and deployment.
• With the increasing demand for more spectrum, it would be inefficient to dedicate spectrum for smart grid-specific networks when commercial networks can and are already satisfying smart grid systems. 
  

Last Thursday (11/5), CTIA filed reply comments  to the FCC on the wireless industry’s innovation and investment.    

As we have seen in the last 18 months, the U.S. wireless ecosystem has experienced tremendous change. The industry has embraced the evolution of networks to 3G and now 4G technologies, the explosion of innovative devices, the emergence of application stores, and new machine-to-machine communications.

Specifically, we’ve seen:

• 3G technology has been deployed to more than 92% of the U.S. population;
• At least 33 companies manufacture wireless devices for the U.S. market, and consumers can choose from nearly 630 wireless devices.
• More than 85% of all devices on carriers’ networks are Web-capable and 20% of new devices are equipped with Wi-Fi capability. According to Nielsen, the percentage of consumers actively using mobile Internet capabilities in the U.S. is higher than any other country.
• Well over 100,000 mobile-specific applications have come to the market from six different stores;
• Reported minutes of use (“MOUs”) amounted to 1.16 trillion for the six months ending in June 2009, which is the highest minutes-of-use per month and the lowest price-per-minute of service of the 26 OECD countries tracked by Merrill Lynch.
• Reported SMS messages for the six-month period totaled more than 740 billion, nearly doubling the 385 billion reported for the same period in 2008;
• For the twelve months ending June 2009, providers reported making capital investments totaling $19.5 billion;
• Providers added over 25,000 new cell sites, up 11.5% over the prior year.

CTIA’s most recent data confirms that, despite these challenging economic times, wireless carriers continue to invest and innovate in their networks while consumers adopt and demand the latest wireless services, devices, and applications. This aggressive consumer adoption only serves to fuel the continued virtuous cycle of the wireless ecosystem.

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:

• mobihealthnews, CTIA to FCC: More spectrum for mHealth
• WIRED, Wireless group tells FCC: Show us the spectrum
• Broadcasting & Cable, CTIA wants more spectrum
• WirelessWeek, CTIA Petitions FCC for More Spectrum
• mocoNews.net, CTIA To FCC: Without More Wireless Spectrum, ‘Demand May Outpace Supply’
  

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  .

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.  

On March 20th, CTIA-The Wireless Association® President & CEO Steve Larget issued the following statement on the introduction of the “Radio Spectrum Inventory Act” (S. 649) in the U.S. Senate:

“I applaud Senator John Kerry (D-MA) and Olympia Snowe (R-ME) for their sensible spectrum inventory legislation.  We know that additional spectrum will be needed for commercial providers to meet consumers’ increasing appetite for mobile broadband services, and the Kerry-Snowe bill is a good first step toward identifying where that spectrum will come from.  Given the long lead time that is often involved between identifying spectrum for commercial use and moving it to market, this is a very timely proposal.”

Just because we’re in San Francisco this week doesn’t mean the work in Washington stops.  Today CTIA filed an FCC ex parte on behalf of hundreds of  companies expressing united opposition to the adoption of any "free" broadband mandates in the AWS 3 proceeding.

Our position: while any company should be free to voluntarily provide a "free" advertising-based service to consumers, a regulatory mandate for such a service will harm consumers and potentially delay access to next generation broadband services, especially in rural areas. 

A free service will harm consumers?  How?

Think about it:  At best, given a “free” service’s limited revenue opportunity in any market – a case exacerbated in rural areas – the licensee would have little incentive to invest and build-out the service, thereby defeating its original purpose.  At worst, having to compete with a “free” service could potentially drive most competitors out of any market, which means a reduction in broadband choice and availability.  The FCC will have essentially provided a disincentive for other companies to deploy broadband networks at a time when it should be promoting broadband build-out. 

We know that tailoring auction rules to a specific company's business plan won’t increase broadband adoption in the United States – recall the recent D Block debacle.  The US broadband market is already intensely competitive and is characterized by intra and intermodal competition, multiple business plans and innovative service packages.  

If the Commission wants to see further US broadband adoption, it should seriously consider the multiple currently pending proceedings aimed at doing just that. 

Late last week, CTIA President & CEO, Steve Largent sent aletter to the FCC that discussed the wireless-related Telephone Consumer Protection Act (TCPA) complaint category. This category is associated with autodialing, live or recorded telemarketing calls and “unsolicited commercial e-mail messages to cell phones, pagers, and other wireless telecommunications devices.” 

In its letter CTIA highlighted wireless carriers’ extensive consumer protection efforts and initiatives.  The letter also emphasized carriers’ continued commitment to work with both the FCC and Congress in protecting consumers from unwanted content. 

Read the letter by clicking here!