In a Hillcon Valley blog post on Monday, Ruth Milkman, FCC's Wireless Bureau chief said, "There is tremendous agreement that wireless is vibrant and contributes to the economy. It’s a phenomenal set of services and applications."
 
We couldn't agree more. While we may be a bit biased, I think all of us have been impressed by some wireless app, device, technology, etc. As I mentioned in yesterday's post on our filing to the FCC on innovation and investment, this is an industry that is responsive to consumers and fiercely competes with one another for each customer. 
 
In CTIA's wireless competition filing to the FCC  in response, we highlight numerous examples of how the wireless ecosystem (made up of carriers, infrastructure suppliers, device manufacturers, operating system providers, and applications developers) remains competitive at every level.
 
This means that consumers and businesses are benefiting from the lowest prices, highest minutes of use, most innovative services and devices, most robust mobile broadband networks, and least concentrated wireless market among our global competitors.
 
But this fiercely competitive state of the mobile industry was no accident: it emerged from long-standing, market-driven policies, embraced on a bipartisan basis, favoring flexibility over command-and-control and competition over economic regulation.
 
Finally, we also highlighted additional steps (starting on page 77) that the Commission can take to facilitate on-going competition and ensure that consumers will continue to reap tremendous benefits from the mobile wireless sector. 
 
After all, as John Donovan, AT&T’s CTO said in his keynote at CTIA WIRELESS I.T. & Entertainment Show last week, “It’s a customer’s world; we’re just a part of it.”

To say CTIA's Regulatory Affairs team has been busy is certainly an understatement! Since September 29th, they've submitted nine filings to the FCC on various issues.
 
Over the next couple of weeks, we'll summarize the ones that have received the most attention and/or interest. Today's blog post is on the FCC's NOI wanting more information on the innovation and investment in the wireless industry  (GN Docket No. 09-157).
 
First, the filing discusses the industry's virtuous cycle, with innovation and investment happening within each of the five groups and putting pressure to the other groups to innovate and invest. It's a constant evolution with consumers as the winners.
 
But as readers of this blog know, the wireless industry needs more spectrum. When the FCC Chairman was at International CTIA WIRELESS I.T. & Entertainment 2009®, he pledged his support and commitment to providing the industry with more spectrum and approving a tower siting shot clock. This is a vital key to the industry's ability to continue innovations whether it's new phones, new capabilities, new applications, faster Internet speeds, etc.
 
The virtuous cycle and spectrum needs are closely intertwined. By having network reliability, coverage, and capacity, carriers are able to compete and attract customers in the competitive industry. This also means carriers are constantly investing in their networks. In fact, over the past twenty years, wireless carriers committed more than $264 billion in capital expenditures -- a combined average carrier investment of more than $22.8 billion per year to expand and upgrade networks from 2001-2008.
 
In addition, we've seen an explosion of wireless making a positive impact on other industries such as health care management (mHealth), smart grids, mobile learning (mLearning), "green" innovative wireless technologies, etc.
 
While we have a tendency to focus on these "new" technologies that rely on wireless to make a difference, we frequently forget about the non-technical innovations. It's hard to believe it was only eleven years ago when the first "bucket" plan was offered. And now think about how the industry has evolved to now offer rollover minutes, family plans, nights and weekends, etc. Carriers also offer extended trial periods, detailed coverage maps, prorated early termination fees, prepaid plans, etc.
 
This is an industry that is responsive to consumers and fiercely competes with one another for each customer.
 
Finally, CTIA closed with some regulatory suggestions, including:

• Facilitating the timely deployment of wireless infrastructure by adopting CTIA’s petition on tower siting.
• Improving the process for identifying spectrum for future reallocation and, particularly the need for greater information, transparency and coordination between Federal and commercial entities in future relocations under the CSEA.
• Seeking input from the Technical Advisory Committee on technical issues.
• Taking steps to streamline equipment and special temporary authorizations.
• Exercising care to ensure that the Commission does not hamper efforts by the wireless industry to develop industry-wide standards for challenging issues.

I think the Regulatory team summed the wireless industry's innovation and investment best when they closed their summary by saying, "We are living in a period of intense innovation and investment in the mobile wireless communications marketplace. American consumers and businesses are reaping daily the innovation that results from a robust and competitive mobile ecosystem, and the FCC should take the necessary steps to ensure that the virtuous cycle of innovation and investment continues to advance."

Wireless technology can provide both traffic management systems & drivers with real-time data to better identify highway congestion & to ultimately save time, money & reduce emissions. Nokia's Quinn Jacobson talks about his company's efforts to help drivers & traffic specialists better handle our crowded highways. Take a listen.

To kick off the first day at International CTIA WIRELESS I.T. & Entertainment 2009®, we released our Semi-Annual Wireless Industry Survey. 

While you can read the specifics about the survey, I thought I’d highlight a few interesting statistics that clearly demonstrate the wireless industry’s continued growth:

Wireless data service revenues for the first half of 2009 climbed to more than $19.4 billion—a 31% increase from the first half of 2008.

• There are more than 276 million wireless subscribers.
• More than 740 billion text messages were reported for the first half of 2009—breaking down to 4.1 billion messages per day— which is nearly double the amount of texts reported for the first half of 2008. 
• 1.1 trillion minutes were used in the first half of 2009—breaking down to 6.4 billion minutes-of-use per day.
• More than 246 million data-capable devices are in the hands of consumers today.  More than 40 million of these devices are Smartphones or wireless-enabled PDAs and more than 10 million are wireless-enabled laptops, notebooks or aircards.

This impressive industry growth wouldn’t be possible without the fiercely competitive and innovative wireless marketplace where companies continue to rise to the challenge to meet consumer demand. I’m looking forward to visiting our exhibitors this week to see this incredible innovation on display.

If you would like to learn more, please listen to our podcast with Dr. Robert Roche, CTIA’s VP of Research who elaborates on our mid-year survey's key findings & discusses the industry’s continued growth.

It’s been a busy time for us at CTIA this week with FCC filing deadlines, Hill activities, Distracted Driving Summit and of course, our International CTIA WIRELESS I.T. & Entertainment show next week.

But on Tuesday, we submitted a very important ex parte filing  to the FCC requesting more spectrum because, to put it simply, it is the backbone of our industry. 

It’s not something that most people think about, but it’s what allows the wireless industry to create and develop the great things that you and I take for granted everyday. As Steve said in his statement about the filing, spectrum drives the innovation and competition.

In our filing, this was the first time we had suggested a specific amount of spectrum to be identified and allocated. We said that the goal should be at least 800 MHz of additional spectrum over the next six years. We also requested policymakers to meet short-term spectrum needs by pairing and allocating readily-available spectrum.
 
To read the filing, please click here.

Here are a few of the media stories on our filing:

• mobihealthnews, CTIA to FCC: More spectrum for mHealth
• WIRED, Wireless group tells FCC: Show us the spectrum
• Broadcasting & Cable, CTIA wants more spectrum
• WirelessWeek, CTIA Petitions FCC for More Spectrum
• mocoNews.net, CTIA To FCC: Without More Wireless Spectrum, ‘Demand May Outpace Supply’
  

I don’t know if you’ve ever heard of snopes.com, but it’s a Web site that takes urban legends and either proves they’re true or debunks them.  

One urban legend that I seem to keep hearing about the wireless industry that I wanted to debunk is the rumor about the speed that U.S. consumers have versus the rest of the world. 

Without getting too complex, the majority of U.S. consumers use either GSM or CDMA technology.  Examples of GSM carriers are AT&T and T-Mobile while CDMA carriers are Verizon Wireless and Sprint.  

3G GSM is called High-Speed Packet Access (HSPA).   

According to a July 2009 release from the GSM Association, the U.S. has 32 million HSPA subscribers out of the 131 million worldwide. The U.S has 7% of all GSM subscribers in the world but has 23% of all HSPA subscribers in the world. 

The 3G CDMA technology is called Evolution-Data Optimized (EV-DO).   

According to Informa Telecoms & Media Group’s June 2009 report on World Cellular Information Service (WCIS), the U.S. has 63.1 million EV-DO  subscribers out of 106.78 million worldwide. The U.S. has 23% of all CDMA subscribers yet has 59% of EV-DO subscribers in the world.    

And while we have the most 3G subscribers in the world, we are also leading in the evolution to 4G. Verizon Wireless has announced that they'll be launching Long Term Evolution (LTE) in up to 30 markets by 2010 while Clearwire/Sprint's WiMax service is available now in 4 cities and another 10 cities by September 2009. AT&T has also announced their HSPA network upgrades here. 

I hope this clarifies and finally puts to rest the urban legend about the wireless technology speeds in the U.S. versus the rest of the world.

The FCC is interested in learning more about the wireless industry's competitiveness, innovation, and billing practices. CTIA President & CEO Steve Largent discusses the association's eagerness to share the great wireless story with the Commission, and emphasizes the need for additional spectrum to satisfy the growing consumer demand for wireless data services. To learn more watch this segment from our September installment of our Wonder of Wireless webcast, and take a few moments to see what else we have to offer in our September WOW.

This afternoon, we issued the following statement in response to the OECD Communications Outlook report on usage and cost for mobile phone calls:

The headline from the recently released OECD Communications Outlook report reads that Finland, the Netherlands, and Sweden have the lowest prices for mobile phone calls among OECD countries, while the highest prices were found in Canada, Spain, and the United States. But since U.S. consumers enjoy the lowest per minute rates of all of the OECD countries, what today’s OECD report really shows is that some international comparisons just don’t make sense – especially when built on flawed assumptions. 

The real story is buried on page 275 of the OECD report which states:

“It is important to note again that the OECD calling pattern in the basket can be significantly different than common calling profiles in a specific country. For example, the high-usage OECD basket includes 1,680 outgoing voice calls per year while users in the United States average 9,600 minutes of voice calls (combined incoming and outgoing) per year. In this case the basket provides the cost of buying exactly the calls and messages in the OECD basket rather than what may be considered a ‘typical’ bundle in the market.”

Since the average U.S. calling profile is nearly three times greater than the OECD’s “high usage” basket (and, in fact, the average U.S. calling profile is nearly six times greater than the OECD’s “average” usage basket), it is no surprise that most other sources show the price per-call (or price per-MOU) in the United States is the lowest among the OECD countries. 

How did the OECD get it so wrong? 

Only by picking such unrepresentative "representative" call packages, could the OECD have reached such a result. For example, the OECD defines a “medium use” customer as someone making 780 minutes of calls a year, and sending 600 SMS and 8 MMS messages a year. And the report says that based on their methodology, a U.S. customer would pay $53 a month in order to get that level of service. But that assumed “medium” basket works out to about 63 minutes, 50 SMS messages, and less than one MMS message a month. That just doesn’t reflect reality. 

CTIA’s semi-annual survey shows that the average wireless consumer uses around 760 minutes a month, and over 400 text messages a month. Even if we only count half of those minutes as outgoing minutes (to mirror the OECD assumption), that’s still six times as many minutes as the OECD methodology assumes. Plus, the CTIA survey showed that the average monthly consumer bill is $50.07. Moreover, since the most recent CTIA survey, a number of unlimited voice and text message plans have been introduced by U.S. wireless companies providing U.S. consumers with even greater value. For example, Tracfone offers its “Straight Talk” plan of unlimited minutes and text, nationwide, any time, for $45 a month, and Boost has a $50 a month plan that offers users unlimited talk, text, web and walkie talkie service. 

When you look at the price American consumers actually pay for their wireless service, our per minute rates are the lowest of all the OECD countries.