Tuesday, October 7, 2008
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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. 

Mark Desautels on Barcode White Paper

At this morning’s keynote Steve Largent announced the release of CTIA’s Wireless Internet Caucus’s Barcode Scanning White Paper. Click below to hear a few of CTIA’s Mark Desautels, VP of Wireless Internet Development thoughts on the topic.

Purpose of the White Paper 

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How Camera Phone Bar Code Scanning Will Work

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AWS 3, Tailors and Poorly Fitting Policy

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. 

New Technologies vs. Old Taxes

This morning’s LA Times ran a good piece on the wireless “listed property” issue, which is currently being debated in Congress.  The article clearly explains the out-dated, archaic tax code that requires employees to keep track of “personal” calls made on their “work” wireless phones.  This tax-code stems from the early 90’s when wireless was an exclusive, corner-office-executive perk.  The wireless market of 2008 is completely different from the wireless market of the early 90s.  Intense competition has driven down prices, and driven up subscribership over the last 18 years.  Today, wireless is hardly an “executive privilege” – it’s a mainstay of modern American life enjoyed by more than 260 million subscribers.  

Legislation to modernize this tax-code has been has been passed in the House and pending in the Senate.   Let your Senators and Representative know you support this legislation, and let's work together to pass the 2008 MOBILE Cell Phone Act.

Wireless Connecting Congressman with Constituents

U.S. Representative John Culberson (R-TX, 7th District) might be the king of wireless use in Congress. Earlier this week I talked with him about how he's using wireless to communicate with the folks back home in West Houston, why he thinks opening the doors of the hallowed halls in such a way is so important, and a movement by some in the House to put the brakes on what he's doing.

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