National Framework  

CTIA Position:
CTIA – The Wireless Association® believes policymakers should take a very cautious view toward regulating the vibrant mobile broadband ecosystem, including the wireless Internet, as numerous independent surveys and studies support our position that our industry leads the world in competition, innovation, value and overall customer satisfaction.

Wireless networks are different. Mobile wireless providers don’t just deliver broadband to the premises; they deliver broadband to the person. Americans have clearly spoken – they want more broadband to the person. Given the unique aspects of wireless broadband, from the technologies involved and complexities of network management to the pace of innovation and consumer demand for ever-increasing bandwidth and applications, policymakers need to recognize that this industry is delivering a level of service and value unimagined only a few years ago. Most importantly, this was all done in the relative absence of government intervention and as a direct result of the competitive market.

If additional legislative or regulatory support is needed to maintain this momentum, consumers will be best served if government action remains at the national level, and states are only allowed to take appropriate action relative to their laws of general applicability. As the national licensing authority over a national industry, the Federal Communications Commission (FCC) is the appropriate government body to safeguard consumer protection, public health and safety in the event of any demonstrated market failure.


Key Points: 

• Almost 93 percent of U.S. Wireless Subscribers are Covered by the Industry’s “Consumer Code for Wireless Service.”  
  CTIA’s “Consumer Code for Wireless Service ” includes every major U.S. wireless carrier and most regional and local service providers as signatories, and each certifies its compliance annually. The Code’s signatories cover almost 93 percent of U.S. wireless subscribers. Additional carriers have indicated they will comply with the voluntary code. The Code’s 10 consumer protection standards include commitments to disclose rates, additional taxes, fees, surcharges and terms of service; provide coverage maps; make customer service readily accessible; and allow a trial period for new service, among others. The Code is nationally recognized as a model for consumer protection. In the event of a market failure, the same national-level approach is the most appropriate in today’s wireless world, and the FCC is the most appropriate agency because wireless is a national service and the Commission already licenses and regulates the industry.
• State-By-State Regulation Would Only Increase Consumer Costs and Lower Satisfaction. 
  A patchwork of laws and regulations would disrupt the immense benefits U.S. consumers are enjoying as a result of a highly competitive mobile broadband marketplace. Government studies have shown that U.S. wireless service charges have fallen by half in the past decade while satisfaction rates and per-minute revenue is four times higher in Europe than in the United States. Consumers will be harmed because wireless providers will be denied the business efficiencies of national billing platforms, customer care operations and other back-office support in order to meet isolated state-by-state requirements.
• As Usage and Technology Evolve, Carriers are Providing Customers with a Range of Service Options. 
  The industry continues to develop tools to keep customers informed about their level of usage of voice, text or data to ensure positive customer experiences. When there are concerns raised by consumers, the Better Business Bureau reports that 97.4 percent of them are resolved. According to FCC data, overall wireless-related complaints fell 4 percent from 2008 – 2009. This is illustrated by the fact that customer satisfaction numbers continue to improve, including the FCC’s own survey that shows that 92 percent are “very” or “somewhat” satisfied. In the last twelve months as the number of subscribers increased by 16 million, the number of minutes by 19 billion, the number of texts by 33 percent, and the number of MMS messages by 187 percent, the average local monthly bill fell by 4.2 percent over the same period. The wireless industry wants to keep all customers happy, but is concerned that prescriptive and costly rules that limit the creative offerings and competitive nature may threaten to offset these positive trends.
• Wireless Networks Are Different – Net Neutrality Would Have Unintended Consequences. 
  In addition, the wireless Internet that is enjoyed by millions in the United States would be impacted if the net neutrality rules being contemplated by the FCC were applied to this dynamic and rapidly evolving ecosystem. The imposition of net neutrality on wireless will inject uncertainty into the market and affect investment.
• Wireless networks are inherently different than wireline broadband networks for which the Broadband Policy Statement and subsequent net neutrality rules were development. The FCC has consistently acknowledge the differences in technologies and network management, and should recognize that these unique aspects argue against applying wireline net neutrality rules to a mobile Internet world.
• For example, wireless carriers actively manage their networks to both ensure the highest-quality Internet experience for all customers – not just the few who demand the most bandwidth and capacity – and to ensure time-sensitive services, such as E911 calls, are given the resources to function properly.
• Consumer Demand Is Driving a Virtuous Cycle of Competitive Value, Innovation and Benefits to the U.S. Economy. 
  The U.S. model for consumer value is changing the way the world views wireless. In just 10 years, global providers have started offering larger calling plans, bundling and simplifying their service offerings and international regulators are looking at way s to liberalize their regimes to match the flexibility that is driving innovation and competition in the U.S. wireless industry. In America, consumer demand for more and better services drives a cycle of infrastructure-friendly policies and consumer-friendly marketplace responses that benefit the overall national economy.
• More than 91 percent of Americans can choose from four or more facilities-based providers, not counting resellers. Of the top 26 Organisation of Economic Cooperation and Development (OECD) nations, only the U.S. and Canada have more than five facilities-based wireless providers.
• The U.S. wireless industry directly/indirectly provides more than 2.4 million jobs and its economic contribution has grown more than five times faster than the economy overall (by 16% to 3%). The industry invests an average of $22.8 billion a year on network upgrades. Given that wireless carriers continue to expand 4G service into markets around the country, and the National Broadband Plan is looking to expand broadband services to reach every American, the wireless industry is poised to remain a major economic driver for years to come – provided government does not disrupt the virtuous cycle that benefits American consumers.

Last Updated: October 2010