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CTIA CEO: Imposing unnecessary mobile regulation on hypothetical concerns is wrong

By Steve Largent

More than 240,000 applications, 630 different handsets, nearly three dozen handset manufacturers, seven operating systems and currently four national service providers with others building out their coast-to-coast footprints.

What is wrong with this picture? The answer, quite simply, is an emphatic nothing.

In fact, there is a lot right with this picture of an industry that is helping drive our nation?s economic recovery, providing consumers and enterprise users with fantastic and innovative new products and services every day and is in perpetual competition for their business.

That is wireless in the United States today, and with such a vibrant industry doing so much so well, I am increasingly puzzled and concerned with the signals emanating from the Federal Communications Commission.

Facts clear ?
It has been often-stated by the agency?s chairman that the commission will support its decisions with factually-based considerations. We welcome that.

The U.S. wireless industry can take on all-comers from around the globe, as the industry that CTIA proudly represents is providing consumers with an incomparable value proposition.

U.S. consumers use their devices more than any other developed country, and pay less per minute than those in any country with which we compete.

About 96 percent of consumers may choose from at least three wireless service providers, and the U.S. market is the least concentrated of any of the 26 countries tracked by the Organization of Economic Cooperative Development.

At a time when many industries are economically-challenged, the U.S. wireless industry continues to put its money where its mouth is.

U.S. carriers have invested, on average since 2004, more than $24 billion a year to build out their networks. That is more than the EU 5 combined.

About one-third of the world?s investment in Long-Term Evolution (LTE) networks will occur in the U.S. this year, even though we only have 5 percent of the world?s population.

We are currently serving about 21 percent of the world?s 3G subscribers, despite having just 6 percent of global wireless subscribers. The U.S. is also the world leader in smartphone sales.

?but ignored
So what is up at the FCC? It produced a Competition Report that failed to make a conclusion either way about the state of U.S. wireless, ignoring a litany of facts that clearly shows that the nation is a ? if not the most ? competitive wireless marketplace.

We are involved in a ?bill shock? proceeding that appears based on a survey conducted for the FCC, which by the way, also revealed that 92 percent of U.S. wireless users were either ?Very Satisfied? or ?Satisfied? with their service.

Ninety-two percent! Which regulator or politician would not love to have that kind of approval rating?

The Net Neutrality proceeding continues as well, although there has never been one example of misconduct on the part of a wireless service provider that would necessitate such onerous regulation as what is being proposed.

We also believe it is crucial to consider the inherent difference in wireless networks versus wireline, and how the incontrovertible laws of physics and finite nature of spectrum should be major factors in any future decisions regarding network management. 

In addition, we have grave concerns about the uncertainty that excessive regulation could create regarding investment. 

And why now?
We wonder why at such a precarious economic time, the FCC would even consider reversing the course established by the Clinton Administration which has led to such a spectacular success story for U.S. mobile subscribers and is playing such a vital role in their future. 

And let us not forget about the questions being raised at the FCC and on Capitol Hill about Early Termination Fees (ETFs).

ETFs provide consumers with the opportunity to purchase an increasingly more sophisticated and highly functional device at a heavily discounted price, and to obtain the most favorable cost of service available.

If you do not want that and the contractual commitment that comes with it, there is always prepaid.

Every major carrier and many non-facilities based providers offer prepaid plans, and today about 20 percent of U.S. consumers choose that option.

So let us go back to my original question. What?s wrong with this picture?

To me, what is wrong would be to impose unnecessary regulation that is based on hypothetical concerns and driven by considerations other than facts. There is a lot that is right with wireless in the U.S., and the record supports that loudly and clearly.    

Steve Largent is CEO of CTIA ? The Wireless Association, Washington. Reach him at .