CTIA - The Wireless Association® Blog - Wireless Service

CTIA Statement on Today's Universal Service Fund Hearing

Tue, 17 Nov 2009 13:11:00 -0500

Today, I issued the following statement after the House Energy & Commerce Subcommittee on Communications, Technology, and the Internet's hearing on the "Universal Service Reform Act of 2009." The bill is sponsored by Chairman Rick Boucher (D-VA) and Representative Lee Terry (R-NE):

"CTIA welcomes the effort by Chairman Boucher and Congressman Terry to reform the way that universal service funds are collected and distributed. As this bill moves forward, we urge Congress to work toward competitively neutral reforms that target support to where it is truly needed."

Lost Skier Saved by Cell Phone!

Mon, 16 Nov 2009 13:15:00 -0500

On this month's WOW we took a trip down a mountain with Michael McKinney a resident of Lake Tahoe, CA. When a snowstorm dumped an enormous amount of fresh powder on the nearby ski slopes, McKinney & his friends couldn't wait to get out and hit the trails last year, but McKinney wound up lost & in serious trouble, until his cell phone came to the rescue. To learn more watch this segment from our November installment of our Wonder of Wireless webcast, and take a few moments to see what else we have to offer in this month's WOW.

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FACT: The U.S. is the Leader for Innovation and Investment, Means Consumers Win - Continued

Thu, 12 Nov 2009 10:12:00 -0500

In my blog post yesterday, I mentioned the misleading OECD Mobile Communications Outlook report that claimed U.S. consumers pay some of the highest prices for mobile services in the world. While we clearly explained what the problems were with the study, we were pleased to see others engage and refute its findings.

Another telecommunications expert who debunked the study is the Phoenix Center’s Chief Economist, Dr. George Ford. Dr. Ford commented on the OECD’s mobile price metrics in a recent policy perspective report.

Here are some of Dr. Ford’s recommendations to improve the OECD’s analysis:

At a minimum, the OECD should expand the number of pricing baskets to reflect usage levels across countries. The high-usage basket should be at least 2,000 total voice minutes per month.
To the extent possible, the OECD should incorporate the full distribution of usage (or usages) in Member Countries rather than looking at a few customer types.
The OECD should include a sufficient number of carriers to adequately represent the best prices available in a given country for all usage levels, instead of its current practice of limiting only to a few arbitrarily selected carriers in each Member Country.
The OECD should explicitly recognize the complexities of comparing mobile prices across countries, including economic, cultural, and regulatory differences that affect demand and prices. As Dr. Ford explains, for “the data to be used wisely and effectively, the report should clearly disclose the limitations of reported statistics to enable accurate interpretation.”
Finally, Dr. Ford recommends that the OECD should primarily document the variety of pricing plans offered in each country, “rather than create price indexes of dubious merit.” In so doing, the OECD can “serve as a useful and policy-relevant provider of data, rather than a purveyor of ‘filtered’ data of questionable credibility.”

CTIA agrees with Dr. Ford’s conclusion that Americans do not pay higher prices for wireless service.

As avid readers of this blog know, we’ve written numerous posts using information from well-respected third party influentials and organizations on how the U.S. wireless industry is the world’s leader in overall satisfaction, value, competition and innovation. We’re pleased everyone from Former Vice President Al Gore to Consumer Reports magazine has recognized the industry’s numerous benefits. To learn more about what others are saying about us, check out this independent assessment.

FACT: The U.S. is the Leader for Innovation and Investment, Means Consumers Win

Wed, 11 Nov 2009 10:16:00 -0500

In yesterday’s blog post, I summarized our FCC reply comment filing on the wireless industry’s continued innovation and investment.

Despite overwhelming evidence from independent organizations that clearly prove the U.S. wireless industry is a worldwide leader in innovation, investment and meeting consumer demands, there are still some naysayers out there. So for those critics, today’s post is for you.

You may recall the flawed OECD Communications Outlook report released in August by the Organisation for Economic Co-operation and Development (OECD) that claimed U.S. wireless consumers have the highest mobile phone costs. We issued a statement that outlined why the OECD figures are wrong.

But don’t just take our word for it. Check out this Forbes.com article by former U.S. Under Secretary of State for Public Diplomacy and Public Affairs James Glassman, who simply states: “Don’t believe it.”

Mr. Glassman continues saying that the OECD report is "deeply flawed" and "its startling conclusion essentially worthless."

He concludes his piece with, “Despite the findings of the flawed OECD study, what European consumers need is more rigorous, American-style competition in telecommunications.”

We couldn’t agree more, Mr. Glassman.

CTIA's FCC Reply Filing Summary on Wireless Industry's Innovation and Investment

Tue, 10 Nov 2009 10:43:00 -0500

Last Thursday (11/5), CTIA filed reply comments to the FCC on the wireless industry’s innovation and investment.

As we have seen in the last 18 months, the U.S. wireless ecosystem has experienced tremendous change. The industry has embraced the evolution of networks to 3G and now 4G technologies, the explosion of innovative devices, the emergence of application stores, and new machine-to-machine communications.

Specifically, we’ve seen:

3G technology has been deployed to more than 92% of the U.S. population;
At least 33 companies manufacture wireless devices for the U.S. market, and consumers can choose from nearly 630 wireless devices.
More than 85% of all devices on carriers’ networks are Web-capable and 20% of new devices are equipped with Wi-Fi capability. According to Nielsen, the percentage of consumers actively using mobile Internet capabilities in the U.S. is higher than any other country.
Well over 100,000 mobile-specific applications have come to the market from six different stores;
Reported minutes of use (“MOUs”) amounted to 1.16 trillion for the six months ending in June 2009, which is the highest minutes-of-use per month and the lowest price-per-minute of service of the 26 OECD countries tracked by Merrill Lynch.
Reported SMS messages for the six-month period totaled more than 740 billion, nearly doubling the 385 billion reported for the same period in 2008;
For the twelve months ending June 2009, providers reported making capital investments totaling $19.5 billion;
Providers added over 25,000 new cell sites, up 11.5% over the prior year.

CTIA’s most recent data confirms that, despite these challenging economic times, wireless carriers continue to invest and innovate in their networks while consumers adopt and demand the latest wireless services, devices, and applications. This aggressive consumer adoption only serves to fuel the continued virtuous cycle of the wireless ecosystem.

CTIA's FCC Filing Summary on Competition in the Wireless Industry

Wed, 21 Oct 2009 10:04:00 -0500

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 , 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.”

Semi-Annual Wireless Industry Survey Results: Wireless Data Continues to Grow

Wed, 07 Oct 2009 13:36:00 -0500

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.

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Insider Interview: CTIA President & CEO, Steve Largent

Wed, 02 Sep 2009 10:26:00 -0500

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.

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Wireless Emergency Prep

Tue, 01 Sep 2009 11:49:00 -0500

Communication during a natural disaster is critically important, a fact that is reinforced in emergency situations. As 4th anniversary of Hurricane Katrina passed late last month, CTIA marks the occasion withthis look at how service providers place a high priority in keeping their networks up and running in challenged times. 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.

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CTIA Statement on FCC Open Commission Meeting

Thu, 27 Aug 2009 11:56:00 -0500

I issued the statement below in response to today’s FCC Open Commission Meeting:

“CTIA and the wireless industry appreciate the opportunity to respond to the Notices of Inquiry and to provide the Chairman and Commissioners, as well as other policy-makers, with information on the status of the evolving wireless ecosystem. Whether it be the almost 100,000 applications that are now available to consumers since the opening of the first applications store 14 months ago, or the launch in the United States of the newest smart phones, or the ability of more consumers in the U.S than anywhere else on the planet to access the highest speed wireless networks, or the lowest price per minute of the 26 countries tracked by Merrill Lynch, or the highest minutes of use of those same 26 countries, or the fact that we have the least concentrated wireless market on the planet, or the evolution in the way services are sold – we are excited to tell the industry’s story. The wireless ecosystem – from carriers, to handset manufacturers, to network providers, to operating system providers, to application developers – is evolving before our eyes and this is not the same market that it was even three years ago. In this industry, innovation is everywhere.”

For an independent review of the wireless industry, please click here.

CTIA Talks with Media on the New FCC

Tue, 25 Aug 2009 09:32:00 -0500

Over the last few weeks, I've been talking with reporters and bloggers about the new FCC and its focus on the wireless industry. As you've probably read, we are looking forward to educating the FCC (and policymakers) on the facts about the industry. We have a great story and we look forward to the opportunity to share this information with them.

Since the agenda for the August 27th meeting has been released, many of those interviews have touched on the three NOIs (notice of inquiry). Specifically, there are two that are focused on the wireless industry – one on innovation and investment and the other on competition. The third is focused on truth-in-billing across numerous industries, including wireless.

Here are a few of the stories that have been published based on these interviews:

8/24 - ComputerWorld -- Wireless industry defends itself against mounting criticism
8/21 - CNET -- FCC takes a closer look at wireless industry
8/21 - Forbes -- Telecom facing more active FCC
8/17 - GigaOM -- For better mobile broadband, the U.S. needs more spectrum

mHealth Making Headlines

Fri, 14 Aug 2009 10:25:00 -0500

I don’t think you can turn on a TV or read the news without seeing something on healthcare reform.

But regardless of your opinion on the issue, I think we can all agree that reducing medical costs and errors, removing geographical and economic disparities, and reinforcing consumer-focused & personalized healthcare is a must.

This is why CTIA, along with a growing number of medical and health policy experts, are talking about mobile wireless technologies and applications that are reshaping the healthcare landscape. Mobile wireless services are in the hands of more than 270 million subscribers – and mHealth solutions are improving healthcare services for millions regardless of location, race, age, gender, or disability.

A recent article on Fortune.com by TMNG Global’s Richard Nespola paints an interesting picture of how mHealth solutions are cutting costs and changing the way we provide medical care in America.

CTIA’s “mHealth Solutions and Policy Forum 2009” was mentioned in the story as a recent example of the wireless industry bringing together officials from the White House, Congress, and CDC, along with policy and medical experts to discuss the important role mHealth solutions play in healthcare reform.

To see video highlights of the event, please click here. And, to learn more about mHealth Solutions, click here.

CTIA Responds to Flawed OECD Report on Usage and Cost for Mobile Phone Calls

Tue, 11 Aug 2009 17:43:00 -0500

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.

US Wireless Ranks #1

Wed, 05 Aug 2009 11:29:00 -0500

Third-party reports & government statistics paint a clear picture of the U.S. having the best wireless market of any in the world. A recent CTIA ex parte filed with the FCC details the most competitive wireless industry of any developed nation, as American consumers enjoy the lowest-cost-per-minute, nearly the highest-minutes-of-use, as well as numerous choices in handsets & applications. To learn more watch this segment from our August installment of our Wonder of Wireless webcast, and take a few moments to see what else we have to offer in our August WOW.

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Wireless at Work - Fighting Crime with Wireless

Tue, 04 Aug 2009 11:37:00 -0500

The Clearwater Police Department knows wireless technology is a great tool in their efforts to make the city as safe as possible. Cutting-edge wireless technology keeps field officers better-informed, saves valuable time, provides real-time access to information, and creates interoperable communication with neighboring public safety agencies. To learn more watch this segment from our August installment of our Wonder of Wireless webcast, and take a few moments to see what else we have to offer in our August WOW.

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