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

CTIA Response to Internet & Tech Companies CEOs & Founders on Net Neutrality

In response to a letter from 24 CEOs and founders from some of the leading Internet and technology companies to the FCC Chairman Julius Genachowski, I issued the following statement:

"This morning, 24 CEOs and founders from some of the leading Internet and technology companies sent a letter to FCC Chairman Genachowski on net neutrality. 
 
"In their letter, they said, 'Entrepreneurs, technologists, and venture capitalists have previously been able to develop new online products and services with the guarantee of neutral, nondiscriminatory access by users, which has fueled an unprecedented era of economic growth and creativity. Existing businesses have been able to leverage the power of the Internet to develop innovative product lines, reach new consumers, and create new ways of doing business.'
 
"I do not believe we could have said it any better than the way that they did when they closed their letter by saying, ’America’s leadership in the technology space has been due, in large part, to the open Internet.’ 
 
"The wireless industry could not agree more. The FCC should preserve the existing wireless Internet that has fostered tremendous innovations, provided broadband for more people, and enabled new businesses. We should all be mindful of the dangers of unintended consequences coming from new rules implemented for the wireless Internet. The fact is that wireless is different than wireline and there's no need to change what these CEOs acknowledged is working well." 

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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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. 

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. 

U.S. Wireless Internet Access Tops the Charts

There are a lot of people out there who say the US is way behind the rest of the developed world in a number of technological measurements … that we’re #16 in this, or #23 in that… but guess what?

THE U.S. IS A WORLD LEADER IN WIRELESS INTERNET USE!!!

At least that’s what Nielsen Mobile says in a report just released. Nielson says that we’re at about 16% penetration, or that about 40 million wireless subscribers used the mobile internet at least once a month. The report also discusses adoption rates and use of the mobile internet in different countries, emerging business opportunities, consumers’ costs, different devices, and a whole slew of related subjects. But here are some of the numbers of interest:

- According to Nielson’s research, there were more than 140 million wireless data users as of 1Q08.
- 95 million users paid to access the mobile internet, either as part of  a subscription or on a per use basis as of 1Q08
- More users are using greater amounts of wireless data.  The percentage of users with “all you can eat” data plans grew by 40% between 1Q07 and 1Q08

Of the 16 countries Nielsen routinely tracks, the report’s benchmarking of other countries’ use shows the U.S. as a world leader in mobile internet use. For example, the UK is at 12.9% penetration, Italy-11.9%, France-9.6%, Germany-7.4%, and China- 6.8%--- all well behind the nearly 16% penetration cited in the U.S.  So often – too often – we hear the US is a laggard in the global broadband/internet use debate.  I don’t expect the ‘glass half empties’ to go away or stop their hand wringing, but the independent study should reassure us that the US mobile sky is not falling, and is indeed rising. 

Nielson’s look at a growing mobile internet is consistent with other findings.  From June 2006 to June 2007, about 70% of all new broadband lines in the US were wireless subscriptions.  In fact, according to the FCC’s most recent data, wireless has a 35% share of total broadband lines.

It’s clear that the mobile internet is growing, especially here in the United States. And as the larger mobile ecosystem evolves, the importance of, and reliance on the mobile internet will only increase.  What we are seeing now is only the beginning of the next phase of communications, and it’s apparent that Americans like what wireless technology is delivering.