Saturday, May 17, 2008
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Better Coverage? Better be Safe!

I know it's happened to me before, and it's probably happened to you, too. You're talking just fine on your cell until you get inside an office building or a high-rise of some type, possibly riding up in an elevator, and there goes the signal. There's no doubt coverage is better these days than it used to be. Wireless carriers have added more than 30,000 new towers and cell sites in just the last two years alone. However, this is still physics we're dealing with here, and there are still trouble spots. The New York Times recently ran a story that focused on a new technology called femtocells that at least one carrier is currently deploying to improve coverage in small areas, such as your home. The article went on to mention the use of cell phone repeaters, or boosters, as another possible remedy, saying..

"The presence of boosters on frequencies that belong to the carriers has made them somewhat controversial. The Federal Communications Commission certifies the devices for some purposes, but they recommend contacting your carrier before installing one.

If a person is interested in improving coverage with a booster, “we would encourage that person to first work with his or her wireless carrier to identify a certified device that the carrier also approves of before installing it and using it on the network,” said Robert Kenny, a spokesman for the F.C.C."
  
It's not only important for someone interested in installing a booster to contact their carrier, it's actually against federal law to do so without your carrier's permission. The Telecommunications Act clearly states that a licensee must approve use of any transmitter in its spectrum, and the reason for that is clear. Improperly installed, a booster might do wonders for your coverage, but wreak absolute havoc with your neighbors'. That could disrupt such important transmissions as emergency calls to 911, and that's one of the primary reasons why protecting the integrity of the network, everyone's network, is important. Using repeaters or boosters on frequencies licensed by the government, without your carriers' consent, means you are violating the terms of the license.  So before you take matters into your own hands, make sure you're not doing it at someone else's expense.    

A Reflection on Market Realities

After a fun and interesting Day 1, I thought I might provide some thoughts and reflections on my experience.
 
Some of the most thought-provoking experiences from yesterday included two policy panels that I attended, "Mobile Industry Hot Topics" and "US Wireless and the World."
 
A common theme that I heard explicitly discussed at the Hot Topics panel, and as an under-current in the “US and the World” panel, was that of wireless national framework.
 
CTIA has researched international regulatory systems, and according to our findings, the US's system of both federal and state-by-state wireless regulatory authority is unique. 
 
The possibility of expanded state regulatory authority over wireless is one that simply doesn't make sense. Wireless’ defining characteristic is its mobility -- because of that, wireless is inherently an interstate, not intrastate service. I certainly appreciate the need for state governments to enforce the generally applicable laws and look out for the best interest of their citizens. But, that being said, to allow expanded state-specific regulatory authority over a mobile, interstate service might bring with it unintended consequences.
 
By subjecting wireless carriers to 50 different regulatory systems, we potentially jeopardize the incredible levels of investment and innovation that have characterized our industry.
 
Think about that -- the innovation and investment of the domestic wireless industry is among the most impressive in the world. The regulations of today might not be relevant to the technological realities of tomorrow. To allow short-sighted regulatory preferences to potentially affect this evolving, constantly-changing industry brings with it the possibility of short-changing the American wireless consumer by depriving them new services and technologies.

Click here to listen to our "US Wireless and the World" podcast!

National Framework Discussion..... It's a Start

 Yesterday I had the opportunity to appear before Chairman Ed Markey's subcommittee to talk about an important issue facing wireless consumers in America. Overall, it was a positive hearing as nearly every committee member and witness communicated a common desire and goal - to continue providing American consumers with the most cutting-edge wireless technology at the most affordable prices possible. The main focus of the hearing was to discuss Chairman Markey's draft wireless legislation and to address the question of how best to treat mobile telecommunications services from a regulatory standpoint. While the draft legislation is still a work in progress, we are very pleased that Chairman Markey has started this important discussion and we look forward to illustrating the many valuable consumer benefits that accompany a uniform set of national standards for wireless service in America. I'd also be remiss if I didn't point out that Energy and Commerce Chairman Dingell and Subcommittee Ranking Member Stearns each expressed support for the idea of having a national set of rules for wireless service.
     

So what exactly are the consumer benefits that have flowed from national uniformity? In my testimony I mentioned that the cost per voice minute, which was about one dollar twenty years ago, has dropped to 4 cents today. According to the Bureau of Labor Statistics, prices for commercial wireless services have fallen more than 35% since December 1997. During the same period, the average minutes of use ("MOU") per subscriber increased six-fold, from an average of 120 MOU per month to an average of 746 MOU per month. Statistics and realities like the ones I just highlighted put the United States at the forefront of the global, mobile wireless revolution. And it is our hope that with a uniform set of national rules for wireless service, consumers can continue to get the cutting-edge mobile services they want and need at world-leading prices. Stay tuned.

If It Ain't Broke...

This year’s first ‘official’ step in the internet regulation debate was taken earlier this week, with the introduction of the “Internet Freedom Preservation Act of 2008” http://markey.house.gov/docs/telecomm/hr5353.pdf. There is a lot to talk about its implications and intentions, and while stakeholders are in the process of thoroughly reviewing the proposal, I want to suggest we could all save a lot of time and effort right now by answering a simple question:

What is the problem the bill is trying to ‘fix’?

Language in the bill indicates its purpose is to “promote openness, competition, innovation, and affordable ubiquitous broadband service for all individuals in the United States”.  Oh. You mean, like we have now.

The internet is a great American free market success story. It is flourishing today and is such a vital part of our lives because service and content providers all over the country and the world are driven by competition to innovate on a perpetual basis. The recent NTIA broadband report reveals robust broadband competition between multiple cable, satellite and wireless service providers, and that wireless is clearly becoming the internet access avenue of choice by new subscribers http://www.ntia.doc.gov/reports/2008/NetworkedNationBroadband
inAmerica2007.pdf.
  And last summer, the Federal Trade Commission’s Broadband Connectivity Competition Policy report http://www.ftc.gov/reports/broadband/v070000report.pdf  concluded that competition and innovation was thriving in the U.S. broadband marketplace.

So again, what is the problem the bill is trying to ‘fix’?

The internet regulation crowd bases its claims on hypotheticals that suggest we need to do something today to make sure something that is highly improbable won’t happen tomorrow. There is a reluctance to recognize the facts and accept the situation they illustrate. The market is working, wonderfully, and corrective mechanisms already exist and can be enforced should they be necessary. New business models might evolve, but consumers will let providers know loudly and clearly what they think of them. That’s what has spurred internet growth in the past, and is a guaranteed formula for success in the future. If you’re not familiar with the FTC report, take some time to look it over. Consumers are getting service, value, choice, and access to content like never before, and the last thing we need is for the government to intervene and risk bringing internet innovation grinding to a halt. Now that would a problem that would need fixed. Let’s just hope we don’t have to.



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