CTIA's President and CEO Steve Largent recently penned an op-ed that appeared in today's edition of the Arizona Capitol Times. Steve's op-ed speaks to a bill (S-1010
) that has been introduced in the Arizona legislature that if enacted would be quite harmful to wireless consumers in the Grand Canyon State. The legislation would actually take wireless choices away from Arizona residents at a time when wireless carriers are opening up their networks and providing consumers across America with more options than ever.
In the op-ed, Steve talks about how carriers have recently started pro-rating early termination fees and are allowing consumers to make service changes without extending the length of their contracts. He also points out that carriers abide by a national Consumer Code so that subscribers in Arizona and all across the country have a consistent and positive wireless experience. At the end of the day, Steve provides a strong argument for how consumer demand is ultimately the most effective 'regulation', and that consistent and uniform federal level regulation will continue to help consumers - and our nation's economy - move forward. Let us know what you think.
HOW TO KEEP WIRELESS INNOVATION MOVING FORWARD IN ARIZONA – AVOID STATE REGULATION
By Steve Largent
Arizona Capitol Times, Jan. 18, 2008
Commentary
The coming of each New Year presents a great opportunity for reflection and evaluation on where we’ve been and where we’re going in the U.S. mobile phone marketplace. For most of us who now enjoy the sleek, multi-functional mini-computer that fits in the palm our hand, we simply can’t imagine life otherwise. But the remarkable thing is that the evolution from the bulky, one-dimensional “brick phone” to the transformational “iPhone” took place in less than 15 years.
The competitive wireless industry works hard to stay in step with its customers and never hesitates to change in order to meet demand and provide consumers with a host of new and improved options. Take, for example, developments within the wireless industry in the past few months alone. Every national wireless carrier has announced that they will pro-rate early termination fees so that the longer a customer stayed in his or her contract the less they would have to pay if they choose to terminate it. On top of that, three of the five largest carriers in the country have announced that customers would be able to make changes to their existing plans without requiring a new two-year agreement.
Not to mention, 94% of Americans already live in a county with access to four or more wireless providers and 98% may choose between three or more. This is competition at its best. And when it comes to prices, Merrill Lynch reports that Americans use more wireless minutes for less cost than any other consumers in the developed world.
But the story doesn’t end here. The wireless industry also abides by a voluntary Consumer Code. Followed in all 50 states, the Code requires wireless carriers to make extensive disclosures to consumers at the point of sale, provide detailed coverage maps, and itemized billing distinguishing monthly charges from taxes and fees. In short, it’s an effective, market-based approach to directly and consistently address the needs of wireless consumers.
Despite the many pro-consumer policies adopted by wireless carriers, some lawmakers in Arizona are calling for individual state specific government regulation of the wireless industry under the guise of a “Cell Phone Bill of Rights.” This type of state-specific regulation of a national industry like wireless could be detrimental to Arizona consumers and businesses. The truth is that when you attempt to regulate a modern, high-tech industry as if it were a 1970’s public utility service, you wind-up hurting the people you’re seeking to protect. Just imagine the cost increases and customer confusion that would ensue if wireless carriers were forced to abandon their national calling and data plans, advertising campaigns, billing and customer care systems in order to set-up and comply with dissimilar regulations in 50 - or even two - different states.
Actually, it sounds a lot like how phone service used to be in the 1970’s, and I am certain Arizona lawmakers do not consider that progress for their constituents.
Wireless has earned the right to continue operating as a competitive, national industry with a consistent set of laws in all 50 states. But in order to do that, we need policies that promote our economy’s high-tech future, while resisting those that return our economy to its highly-regulated past. Let’s keep Arizona’s high-tech future moving forward by opposing Senate Bill 1010
.
Mr. Largent, a former U.S. Representative from Oklahoma and a member of the Pro Football Hall of Fame is President and CEO of CTIA – The Wireless Association®.