CTIA is the International Association for the Wireless Telecommunications Industry, Dedicated to Expanding the Wireless Frontier
Saturday, July 4, 2009

U.S. Wireless Industry #1 in Consumer Satisfaction, Value, Competition & Innovation

The Senate Commerce Committee held a hearing this afternoon on “The Consumer Wireless Experience.”  I issued the following statement in response:

     "The U.S. wireless industry is the world's leader in overall satisfaction, value, competition
     and  innovation. This fact has been supported by countless third party organizations and
     influentials such as Consumer Reports Magazine and Former Vice President Al Gore.  
 
     "In a 2008 Consumer Reports survey, they found 60% of the nearly 62,000 readers were
     'completely or very satisfied with their service.' This was primarily a result of carriers: 1) increasing
     call quality; 2) reducing connectivity issues; 3) ending the policy to extend contracts when
     subscribers make changes to their plans; 4) prorating early termination fees.
 
     "The 2008 American Customer Satisfaction Index (ACSI) found that a record high 69% of
     wireless  users were satisfied in the first quarter of 2009. 
 
     "U.S. consumers can choose from more than 630 different handsets -- including more than 29
     Wi-Fi enabled handsets, manufactured by at least 33 different companies. 
 
     "The fiercely competitive wireless industry means consumers are the winners. As companies
     continue to enter and compete with new products and services, consumers benefit by getting the
     best in value and innovation."

To learn more on how the wireless industry is the most competitive and innovative in the world please take a look at "The Facts About the Wireless Industry: An Independent Review

Competition and Consumer Choice are Hallmarks of U.S. Wireless Industry

This afternoon, the Senate Judiciary Committee’s Subcommittee on Antitrust, Competition Policy and Consumer Rights held a hearing on “Cell Phone Text Messaging Rate Increases and the State of Competition in the Wireless Market.” Here is the statement I issued in response to today’s hearing:

     "The U.S. wireless industry is the most competitive and innovative in the world. Third party   
      organizations and influentials -- from Consumer Reports Magazine to Former Vice
      President Al Gore -- have echoed this statement. 
 
     "In CTIA's 2008 year-end survey, we found that 270.3 million subscribers sent more than 1
     trillion text messages -- or about 3.5 billion per day. This is a significant increase to 2007
     when 255.4 million subscribers sent 363 billion text messages. 

     "These statistics prove that consumers are increasingly relying on texting as a form of
     communications. It is quick, easy and affordable. Carriers offer consumers a multitude of
     text messaging options and we encourage individuals to work with their provider to ensure
     they're on the best plan. 
 
     "Merrill Lynch recently released their study which found that the U.S. is the least
     concentrated and most competitive market out of the 26 Organization for Economic Co-
     Operation and Development (OECD) countries reviewed. In 23 of the 26 OECD countries,
     the top four carriers own 100% of the market. The U.S. is one of only three OECD countries
     with more than four carriers but the only one whose top four carriers represent 86% of the
     market.  
 
     "With wireless companies constantly entering new markets and competing for customers,
      it's clear that the U.S. consumer is the ultimate winner from this fiercely competitive
     industry."

To learn more on how the wireless industry is the most competitive and innovative in the world please take a look at "The Facts About the Wireless Industry: An Independent Review

Sec. Geithner & IRS Cmmr. Shulman Agree with Wireless Industry: Repeal IRS Listed Property Rule

This afternoon, IRS Commissioner Shulman issued a statement on employer-provided cell phones, or listed property. In response to his statement, I said:

"We agree with the IRS that times have changed and that this law hasn't kept up. A repeal of the archaic listed property rule is the most sensible and fair action to take on behalf of every American who uses their wireless device for professional and personal purposes. We appreciate the support of Secretary Geithner and Commissioner Shulman for the bipartisan congressional legislation that would repeal the outdated, existing law. This would be a big win for wireless consumers."

CTIA Pleased to See FCC Nomination Process Moving Forward

Below is a statement I issued regarding today’s U.S. Senate Committee on Commerce, Science & Transportation hearing on the Federal Communications Commission (FCC) nominations of Julius Genachowski and Robert McDowell:  

“We are pleased to see the process towards having a full Commission is moving forward.  We appreciate the Senate Commerce Committee initiating this hearing for Julius Genachowski and Robert McDowell, and we look forward to working with them as soon as their nominations have been confirmed.”

CTIA Commends Introduction of Mobile Wireless Tax Fairness Act of 2009

Yesterday, U.S. Senators Ron Wyden (D-OR) and Olympia Snowe (R-ME) introduced the Mobile Wireless Tax Fairness Act (S.1192). The bill is similar to the Cell Tax Fairness Act (H.R. 1521), which has attracted substantial, bipartisan support in the U.S. House. Below is the statement I issued today in response to the introduction of the Senate bill:

Senators Wyden and Snowe have shown their support for wireless consumers across America by sponsoring the Mobile Wireless Tax Fairness Act of 2009. On behalf of the more than 270 million U.S. wireless subscribers, we thank them for their leadership and commitment to easing the costly and discriminatory tax burden imposed on wireless services.

It is very troubling that wireless consumers have been taxed four times more than other taxable goods and services over an almost four-year period. The Wyden-Snowe bill will protect consumers from new discriminatory taxes and fees while preserving existing revenue for states and localities.

We look forward to working with Members of Congress on both sides of the Capitol to get this pro-consumer legislation passed this year.

Congratulations to Robert McDowell on Pending FCC Nomination

Below is a statement I issued this afternoon in response to President Obama's announcement of his intention to nominate Robert McDowell to continue as a Commissioner at the Federal Communications Commission (FCC):

Robert McDowell is an excellent choice to continue to serve as a FCC Commissioner. Since 2006, Mr. McDowell has clearly demonstrated his understanding and knowledge of the complexities of the telecommunications policy, and the unique attributes of the wireless industry. On behalf of the wireless industry, I congratulate Mr. McDowell on his nomination, and we at CTIA look forward to continuing to work with him.

CTIA-The Wireless Association® Celebrates 25th Anniversary

May 23rd marks the “Silver Anniversary” for CTIA-The Wireless Association®. From the “car” phone to the smartphone, there’s no doubt that the wireless industry has seen a remarkable transformation in the last 25 years. 

With fewer than 20 member companies, CTIA was originally called the “Cellular Communications Industry Association” and was officially incorporated on May 23, 1984. 

The wireless landscape in the U.S. was very different 25 years ago. Here’s a brief snapshot of what wireless looked like in May 1984:

  • Less than 50,000 wireless subscribers in America.
  • Wireless service was only available in six U.S. cities.
  • Consumers paid more than $2,000 for a cellular device.
  • First portable cell phone models, or “brick” phones, weighed nearly two pounds and had only around 30 minutes of talk time.

Fast forward to today and CTIA-The Wireless Association® has more than 300 member companies. These companies represent 87% of the total U.S. population – or 270 million + wireless subscribers – making it one of the fastest growing and competitive industries in history. In addition, consumers in today’s marketplace can:

  • Purchase a handset for less than $100.
  • Choose from more than 630 wireless devices.
  • Pay an average of only $50 per month for service. 

From 1984 to the 3G broadband world of 2009, wireless has evolved from simple voice communications to a new era of data transmission and democratization of communications that has transformed the way we work, play and live.
 
The wireless industry continues to meet the increasing consumer demand for advanced wireless services, as indicated by record-breaking subscribers and an impressive array of usage and wireless statistics

Cheers to the last 25 years of impressive growth and innovation in the world of wireless! We are looking forward to many more. 

Keeping Kids Safe in a Mobile Environment

Today I had the privilege of participating in an online child safety panel at the 2009 Presidential Initiative Summit in Philadelphia. Hosted by our friends at the National Association of Attorneys General, the event was focused on protecting and empowering America’s next generation.

During my remarks, I announced another step in the wireless industry’s efforts to educate parents about wireless online safety. CTIA has developed six simple tips for parents to start the discussion with their kids about their behavior in a mobile environment. To make it easier for all of us to remember, we used the word “SAFETY” as an acronym:

  • “S” stands for “Smart.” The industry provides a lot of features and information for parents on how to keep their kids safe. While parents want to be with their children at all times, so we can protect them, it’s not always possible. That’s why parents need to educate their kids about smart wireless behavior.
  • “A” stands for “Aware.”  Unlike TV, movies or music, wireless is an interactive service. This means parents need to be aware of how kids are or can use these products and services. By understanding what’s available, parents can determine what responsible wireless behavior means for their kids.
  • “F” stands for “Familiar.”  CTIA is encouraging parents to know their child’s wireless plan, cell phone features, parental controls and privacy options. Wireless service providers have this information on their web sites. 
  • E” stands for “Experience.” Today’s kids and teenagers think one of the coolest things is getting a new cell phone. They love to communicate with their friends via text or through one of the many available mobile applications and social networks. As parents and policymakers, it’s important that we experience wireless devices in the same manner as our children. By embracing these new experiences, parents will be better informed so they can set their family’s guidelines and rules.
  • “T” stands for “talk.” Keeping an open dialogue is important and it encourages kids to talk to their parents about how they are using their cell phone. CTIA believes that proper wireless behavior begins with the five “W’s” of wireless.
    Who is your child contacting?
    What should kids be doing on their cell phone?
    When and Where can they use their cell phones?
    Why all of this is important?
  • “Y” stands for “Yearly Review.” As your child grows up, it’s important to keep your family’s rules and guidelines updated to reflect new technologies and your child’s new age. 

The SAFETY Tips are just one of the many tools the wireless industry provides for parents to help educate and encourage their kids in responsible and safe use of cell phones. 

You can download your copy of this informative pocket-guide  today. For more information on keeping your kids safe in a mobile environment, please visit www.wirelessfoundation.org.